2024
Environmental Social
and Governance Report
Craft quality with ingenuity Pioneer extraordinary through innovationContents
01 Building a Robust 02 Practising Green Operation Foundation and Low-carbon Actions
About the Report 01 Corporate Governance 12 Environmental Management System 18
Introduction 02 Business Ethics 13 Energy and Carbon Management 20
Management Message 02 Compliance and Risk Management 14 Resource Utilization 24
About SNS 03 Intellectual Property Protection 15 Emissions and Waste Management 25
ESG Management 09 Cybersecurity and Information Security 16 Ecological Protection 27
Appendix 48
ESG Performance Indicators 48
Ensuring Employee Creating Harmonious
Indicator Index Table 53 03 Rights and Development 04 Society with Shared Success
Reader Feedback 54
Basic Rights and Interests 28 Product Responsibility 38
Career Development 31 Sustainable Supply Chains 46
Health and Safety 35 Community Contribution 472024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
About the Report
Report Description Basis of Compilation
This report is the first environmental social and governance report (hereinafter This report is prepared with reference to the Self-regulatory Guidelines for Listed Companies No.referred to as “this report”) issued by Sinoseal Holding Co. Ltd. (Stock code: 300470) 17-Sustainable Development Report (Trial Implementation) by Shenzhen Stock Exchange the
(hereinafter referred to as “SNS” “the Company” or “we”). It aims to objectively demon- Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) (2021 Edition) and
strate the management practice and performance of SNS in the fields of economic the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).environmental social and corporate governance.Data Sources
Reporting Period
The data and information sources used in this report include SNS’s internal statistics public
This report is an annual report consistent with the reporting period of the financial reports and disclosures. In case of discrepancies between this report and the Company’s
annual report covering the time period from January 1 2024 to December 31 2024. For annual consolidated financial statements the latter shall prevail. Unless otherwise specified
any content exceeding the above scope this report will provide explanations in the the financial data is presented in RMB.relevant sections.Reliability Statement
Reporting Scope
This report has been reviewed and approved by the Board of Directors for publication. The
Unless otherwise stated the content of this report covers SNS and its holding subsidiar- Company undertakes that the disclosed content of this report does not contain any false
ies (including secondary subsidiaries) which is consistent with the scope covered by the records misleading statements or material omissions.Company's annual report. The main scope of disclosure is as follows:
Access to This Report
This report is available in both Chinese and English. In the event of discrepancies between the
Company name Abbreviation two versions the Chinese version shall be authoritative.Electronic copies of this report in both Chinese and English are readily accessible through the
Sinoseal Holding Co. Ltd. SNS the Company we Company's official website and the CSRC-designated information disclosure platform for the
ChiNext Market “CNINFO”:
https://www.sns-china.com/ https:// www.cninfo.com.cn
Dalian Sun Seals Ltd. Sun Seals
UTEC (Suzhou) Sealing Solutions Co. Ltd. UTEC Contact Information
Sichuan Sunny Seal Co. Ltd. Sunny Seal If you have any comments or suggestions on this report please contact the Company via
phone or in writing through the following information：
Zigong New Dipper Valve Co. Ltd. NDIV
Address: No. 8 4th Wuke West Road Wuhou District Chengdu City Sichuan Province
Krüger & Sohn GmbH KS GmbH Postcode: 610045 Telephone: 028-85542909 E-mail: ir@sns-china.com
012024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Management Message
Dear friends People-centric Approach: Creating and Sharing Development
We are pleased to present this report. On behalf of the Board of Directors and execu- Achievements
tive management I would like to extend my sincere gratitude to our investors custom- Our employees are our most valuable asset. In 2024:
ers business partners employees and members of the broader community for your
Protecting rights and interests: We invested RMB58.1 million in
continuous support and trust in SNS.employee welfare achieving 100% coverage. We conducted special-
ized programs including mental health training AED emergency
Over the past year against the backdrop of a slowing global economy increasingly response training and safety drills. No major safety incidents or
complex external environment and the acceleration of the green and low-carbon
occupational illness cases occurred.transition we have remained steadfast in our corporate slogan “Craft quality withUnlocking potential: Our equity incentive plan was extended to 227ingenuity Pioneer extraordinary through innovation”. Guided by our corporate
key employees. We organized 271 training programs and supported
mission to “Ensure safety and protect the environment” we have integrated the princi- 139 staff members in upgrading their skills and have been honored
ples of sustainable development into our decision-making driving high-quality growth
as “Sichuan Extraordinary Employer of the Year”.and exercising our corporate social responsibility in tandem.Shared Responsibility: Empowering the Industry and Society
Robust Governance: Laying a Solid Foundation for Sustainability
We deliver high-quality products and services to our customers
We have continuously improved our ESG governance framework restructuring the
attaining customer satisfaction rates above 95% and receivingformer Board of Directors’ Strategic Development Committee into the “Strategic Devel-“outstanding Supplier” recognitions from leading enterprises suchopment and ESG Committee” and establishing a four-tier management structure to
ensure ESG objectives are fully integrated into our business strategy. In 2024 we as Sinopec Exxon Mobil and Shenghong Petrochemical. In supply
chain management 100% of our suppliers have signed HSE agree-
recorded zero incidents of business ethics violations maintained 100% employees
ments strengthening supply chain quality oversight. Our efforts to
signing the Integrity Commitment Letter and safeguarded corporate transparency and
efficiency through rigorous compliance audits and risk management systems. As the practise corporate responsibility were further evidenced by poverty
alleviation and rural revitalization initiatives investing over
only A-share listed company in China’s mechanical seal industry we have maintained
RMB400000 to support agricultural development in Ganluo County.an “A” rating – the highest level – among ChiNext-listed companies in Shenzhen Stock
Exchange for five consecutive years and have cumulatively distributed dividends
exceeding RMB700 million since our listing genuinely rewarding shareholder trust. 2024 marks the first year that we publish Environmental Social and
Governance (ESG) Report. Looking ahead to 2025 we remainresolutely focused on our vision to “To be the a world-class fluidGreen Innovation: Leading Industry Decarbonisation control equipment provider” further integrating ESG into our
In response to climate change we actively implement the China’s “dual carbon” goals: business elevating ESG management practices and forging a
Green manufacturing: Recognized as a National Green Factory we completed our first virtuous cycle of sustainable operations social responsibility and
photovoltaic installation generating 499900 kWh of solar power during the year. Our environmental stewardship.dry gas seal product completed the “cradle-to-gate” carbon footprint assessment and
certification setting a benchmark for low-carbon development in the industry. Sustainable development is both a defining imperative of the times
Technological empowerment: R&D investment represented approximately 5% of and the pathway to enduring corporate prosperity. We value your
operating revenue and obtained 19 new authorized patents. Our diamond-coated insights and suggestions as we strive for sustainable high-quality
seals entered pilot production and mass manufacturing delivering enhanced seal growth. Let us join hands guided by innovation and responsibility
durability and reliability. We launched the next-generation intelligent seal monitoring to jointly shape a greener industrial future!
and health management system to improve predictive maintenance for critical equip-
ment components. Additionally our supply to CCUS (carbon capture utilization and Sinoseal Holding Co. Ltd.storage) projects supports our customers in achieving energy savings and emission Hong Chen General Manager
reductions. April 24 20252024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
About SNS
Company Overview
General Meeting of Shareholders
The predecessor of Sinoseal Holding Co. Ltd. the
Sealing Technology Research Department of Board of Supervisors
Sichuan Provincial Machinery Research & Design
Institute founded in 1978 is one of the earliest Board of Directors
institutes in China to carry out sealing technology
research. The Company is the only A-share listed
company in the domestic mechanical sealing Audit and Supervision SNS
industry (stock code: 300470). The main products Department
of SNS include mechanical seals dry gas seals
sealing auxiliary (control) systems rotary jet
pumps rubber and plastic seals special valves
guide rings and other products and tailor-made
solutions under different equipment and operat-
ing conditions which can be widely used in
petrochemical coal chemical oil and gas
transportation electric power construction
machinery mining machinery and other fields.The Company's products and services are sold to
Southeast Asia Central Asia Central Africa and
other regions. As of the end of 2024 the Compa-
ny owns six holding subsidiaries (secondary
subsidiaries included) including UTEC (Suzhou)
Sealing Solutions Co. Ltd. Dalian Sun Seals Ltd.Sichuan Sunny Seal Co. Ltd. Zigong New Dipper
Valve Co.Ltd. ZM Investment GmbH and Krüger
& Sohn GmbH. The Company also has equities in
two enterprises and Sichuan Zhenxing Zhongmi
Equity Investment Centre (Limited Partnership).Krüger & Sohn GmbH
Organizational structure of SNS
03
Chengdu CHG Robots & Intelligent Equipment
Institute Co.Ltd.Sichuan Zhenxing Zhongmi Equity Investment
Centre (Limited Partnership)
ZM Investment GmbH
NDIV
Sunny Seal
UTEC
Sun Seals
Finance Department
Administration Department
Information Department
R&D Management Department
Safety and Equipment Management Department
Board of Directors’ Office Quality Assurance Department
Nomination Committee Assembly and Service Department
Remuneration and
Manufacturing Department II
Appraisal Committee
Strategic Development Manufacturing Department I
and ESG Committee
Procurement Department
Audit Committee
Production Management Department
Technology Department
Rotary Jet Pump Business Department
International Business Department
Sales Department2024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Start-up Reform and listing Capital investment Globalization strategy
In 1978 the predecessor of the Compa- On June 12 2015 the Company was In 2016 the Company completed the In July 2024 the Company became the
ny the Sealing Technology Research listed on the Growth Enterprise acquisition of UTEC (Suzhou) Sealing actual controller of Krüger ＆ Sohn
Department of Sichuan Provincial Market of the Shenzhen Stock Solutions Co. Ltd. GmbH and took the first step in its
Machinery Research & Design Institute Exchange becoming the only A-share In 2018 the Company completed the international development.was established. listed company in China's mechanical acquisition of Dalian Sun Seals Ltd.seal industry.Keep up with the times Structural reform Strategic renaming Strategic integration
In September 1993 following the In 2009 the Company acquired In December 2019 the Company was In February 2021 the Companynational policy of reform and opening Japanese shares becoming a company officially renamed to “Sinoseal Holding completed the acquisition of Zigongup it jointly invested with Japan's Nikki limited by shares with its name changed Co. Ltd.” New Dipper Valve Co.Ltd. and entered
Industries Co. Ltd. in Hiroshima to “Sichuan Sunny Seal Co. Ltd.” In January 2021 its subsidiary Sichuan the field of high-end special valves.Prefecture to form “Sichuan Nikki Seal In 2010 the Company was restruc- Sangni Machinery Co. Ltd. officiallyCo. Ltd.” becoming the first Sino-for- tured into a diversified joint-stock changed its name to Sichuan Sunny Seal
eign joint venture science and technol- enterprise controlled by a state-owned Co.Ltd.ogy enterprise in Sichuan Province. company.
042024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Corporate culture Business Overview
With focuses on the research design production and manufacture of mechanical seals SNS has formed a product
portfolio with various mechanical seals and their auxiliary (control) systems special valves and rubber-plastic seals
Ensure safety and protect the as the core. The Company can design develop and manufacture various types of mechanical seals dry gas seals
Corporate Mission
environment seal auxiliary (control) systems rubber-plastic seals rotary jet pumps special valves and guide rings with stable
quality and reliable performance according to customers’ needs. Meanwhile we provide a full range of services
such as technical consultation solving on-site problems and technical training.To be the world-class fluid control
Corporate Vision
equipment provider
SNS Sunny Seal Sun Seals
The main products include mechanical seals dry gas seals and sealing
auxiliary (control) systems，and we specialise in delivering custom-engi-Craft quality with ingenuity Pioneer neered mechanical seal solutions for varied equipment and operational
Corporate Slogan
extraordinary through innovation parameters across petrochemical coal chemical oil & gas transporta-
tion and nuclear power industries.SNS is also engaged in the design
research and development manufacturing and sales of rotary jet pumps.Establish a comprehensive sealing
Strategic Goal
industry ecosystem UTEC
UTEC focuses on the design research and development production and
sales of rubber and plastic seals and mold-free special turning equip-
ment. It has outstanding leading advantages in sealing material proper-
Core Values Create value and pursue excellence ties and mold-free processing technology for large seals which is widely
used in construction machinery mining machinery and other industries.Responsibility Innovation Openness
Corporate Spirit NDIV
and Vision
NDIV focuses on the R&D and manufacture of special valves for special
working conditions special functions and special fields with axial flow
check valves forced sealing ball valves compressor anti-surge valves pipe
Technology-Driven Market Leadership clearance valves water strike pressure relief valves and other products as
Business Philosophy Service-Backed Customer Loyalty the core. These products are mainly used in oil and gas transportation
Quality-Defined Brand Excellence petrochemical industry water transportation and diversion industries.Integrity High quality Service
Quality Policy
excellence Continuous improvement
KS GmbH
It mainly produces resin laminates such as pipes profiles bars and plates
as well as guide rings and other products which are widely used in
Environmental Stewardship Occupa- construction machinery and electrical fields.HSE Policy tional Health Operational Safety
Regulatory Compliance
052024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Highlights of 2024
Company Operations Collaborative Value Co-creation Green Development
Issuer Awarded Award Issuer Awarded Award Issuer Awarded Award
Entity Entity Entity
2024 Exemplary Case for Public Sinopec Yangzi 2021-2022 Outstanding Supplier Ministry of
China Association for Company Board of Directors Petrochemical Co. Ltd
SNS
Industry and
Public Companies SNS 2024 Best Practice Case for Shenghong Information National
Public Company Boards Petrochemical SNS 2024 Outstanding Supplier Technology Green
of the SNS Factory
China Association for 2023 Best Practice Case for Gulei Petrochemical SNS 2023 Outstanding Supplier
People’s Designation
SNS Public Company Investor Republic of Public Companies Relations Management ChinaLuxi Chemical SNS Strategic partners
Department
China Securities The Golden Bull Award for
SNS Public Companies-2023 Golden Fuhai Group SNS 2024 Excellent Quality Award of Economy Sichuan Journal
Information Disclosure Award and Provincial
Xi'an Pump & Valve Information Green
SNS 2023 Best Service Award
SNS
Shenzhen Stock 2023-2024 Information Disclo-
Plant Co. Ltd Technology Factory
SNS sure Rating "A" among of Sichuan DesignationExchange Xi'an Pump & Valve 2024 Service Commitment
ChiNext-listed Companies ProvincePlant Co. Ltd SNS Excellence Award
Chengdu Municipal Included in
Bureau of Economic and Chengdu Intelligent Manufactur- Deep Blue Pump SNS
Strategic partners (2023-2024)
SNS the
Information Technology ing Hub (SNS Smart Factory)
Office ofChengdu “Zero-WasteSulzer SNS 2023 Best Quality Award Ecological City Cells” list
2023 Outstanding Tax and at the
Contributor in Wuhou District Liaoning Hengxing Environmen- SNS Chengdu SNS 2023 Outstanding Supplier
2023 Innovation Excellence Pumps tal Protec- municipal
Platform in Wuhou District tion level and won
2023 Top 100 Innovative Exxon Mobil NDIV Excellent Supplier Recognition- Commission the title ofEnterprise in Wuhou District Award “Zero-Waste People’s Governmentof Wuhou District SNS 2023 Top 100 High-growth To Better UTEC Outstanding SupplierFactory”
Companie in Wuhou District
2023 Advanced Materials 2024 Sichuan Extraordinary Sichuan Outstanding
Industry Leader in Wuhou liepin.com SNS Employer Award Tianfu New Achievement
District District Award for
2023 Top 100 Contributing HRSSB of Wuhou Industry Anchor Enterprise Meishan
Sunny Energy
Enterprise in Wuhou District District Chengdu SNS Employment Hub in Wuhou General
Seal Saving and
District Labor Emissions
Sichuan Provincial Union Reduction
Development and Reform The office of the Leading
Commission Group for supporting Chengdu Exemplary Industrial
Department of Economic Famous and Excellent Product -Dry Gas Sealing and Its
and Information Technolo- Products in Chengdu Control System (S Type)
gy of Sichuan Province Chengdu Municipal Sichuan Provincial Chengdu Exemplary Industrial
Science& Technology Bureau of Economic and
SNS
Corporate Headquarters Product -Hydrostatic Mechanical
Department of Sichuan SNS Information Technology Designation Seal for Nuclear Main Pump
Province The Chengdu New
Administration for Market Economic Development
Regulation of Sichuan Commission
Province Leading Enterprise in China's Coal
Sichuan Provincial Bureau Machinery Industry (2022-2023)
of Economic Cooperation
China Coal Machinery High-quality Brand Products of
Suzhou Industrial Industry Association
UTEC China Coal Machinery Industry
Park Economic 2024 Demonstration Smart
Designated production unit of
UTEC Workshop in Suzhou special equipment and accesso-Development ries for coal mines in China
Commission Industrial Park
List of Awards of SNS Holding in 2024 062024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Product & Service Accreditation and Recognition of SNS
Sinopec Yangzi Petrochemical Shenghong Petrochemical Gulei Petrochemical Luxi Chemical
2021-2022 Outstanding Supplier 2024 Outstanding Supplier 2023 Outstanding Supplier Strategic Partner
Fuhai Group Deep Blue Pump Sulzer Xi'an Pump & Valve Plant
2024 Excellent Quality Award Strategic Partner (2023-2024) 2023 Best Quality Award 2023 Best Service Award
Xi'an Pump & Valve Plant Exxon Mobil China Coal Machinery Industry China Coal Machinery Industry
2024 Service Commitment Excellence Excellent Supplier Recognition Award Association Association
“High-quality Brand Product” Leading Enterprise in China's Coal
Accreditation Machinery Industry (2022-2023)
072024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Environmental Social Governance
As of the end of 2024: As of the end of 2024: In 2024:
SNS Sun Seals UTEC and NDIV have obtained ISO SNS Sun Seals UTEC and NDIV have obtained ISO Established a four-level ESG governance structure
14001 environmental management system certifica- 45001 occupational health and safety management All employees signed the Integrity Commitment Letter
tion system certification All important critical and sensitive personnel signed
SNS Sun Seals UTEC and NDIV have obtained ISO the Integrity Risk Prevention and Control List
In 2024: 9001 quality management system certification 0 incidents of business ethics violationsSNS was awarded the titles of “National Green Factory" A total of 324 national patents have been authorisedand "Sichuan Provincial Green Factory" including 48 invention patents
A dry gas seal product completed the "Cradle-to-Gate"
carbon footprint assessment and certification In 2024:
Invested RMB1.3068 million in environmental protec- Offered 271 training projects for all employees with a
tion throughout the year total investment of RMB434900
Utilised 499900 kWh of photovoltaic power genera- Provided academic and qualification improvement
tion throughout the year support for 139 employees with a total investment of
Selected into the "Zero-Waste City Cells" list at the RMB334900
municipal level in Chengdu and awarded the title of 0 significant safety accident
"Zero-Waste Factory" 0 occupational disease incident
R&D investment totaled RMB75.772 million
2024 ESG Performance Highlights of SNS
082024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
ESG Management
ESG Governance Structure
In 2024 SNS released the Working System of the Strategic Development and ESG Committee of
the Board. The Company further upgraded the Strategic Development Committee of the Type of Stakeholder Topic of Concern Communication Method
Board of Directors to the “Strategic Development and ESG Committee” to lay the foundation
for the Company's ESG strategic planning and deployment and gradually build a four-level
ESG governance structure: Information disclosure
Company compliant
Governmental Communication meetings
operation
and regulatory Supervision and inspection
As the supreme decision-making body on ESG matters Board of Promotion of
Board of Directors reviews the documents submitted by the Company receives agencies economic development Information disclosure
Directors management briefings oversees executive operations and formulates
strategic principles for sustainable development. Environmental protection
Strategic Responsible for researching and advising on the Company's medium-
Development and long-term development strategy and major investment decisions
and ESG formulating ESG management implementation plans identifying ESG
Committee risks and reporting work progress to the Board of Directors General Meeting of Shareholders
Company compliant
Earnings Conference Call
Shareholders operation
Shall determine the specific implementation plan of the Company's Information disclosure
Executive sustainable development based on the basic principles of sustainable
and investors Performance and
Management development formulated by the Board of Directors and supervise development planning Conference call email and online
and evaluate the implementation of various departments. communication platform
Department Execute and institutionalize ESG initiatives across operations
ESG Governance Structure of SNS Service ticket
Product and service Customer return visits
Assessment of Material Topics Customers quality Social media platforms
Integrity in operation
Conduct customer satisfaction
SNS listens to and collects the opinions of various stakeholders formulates relevant system survey
documents such as the Investor Relations Management System and receives consultations
and suggestions from stakeholders through telephone calls emails official websites
performance briefings etc.
092024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
In order to determine the key issues for the Company's sustainable development this year we
Type of Stakeholder Topic of Concern Communication Method conducted research on important issues for internal and external stakeholders.Equality and Diversity Labour union Identification of topics Research of Confirmation of
Human capital development Material Topics Materiality IssuesPerformance evaluations
Employees Occupational health & safety Employee satisfaction survey
International disclo- Stakeholders such as Analysed the online
Employee rights and interests Employee representatives' sure standards governments and questionnaire data
Remuneration and benefits meeting national macro regulatory agencies and identified the
policies industry status customers employees materiality of each
quo and the Compa- partners industry ESG issue and make
ny's development are associations/chamber a ranking
comprehensively of commerce organiza- combined with the
Mutual benefits and win-win Supplier integrity agreement
considered to fully tions and the media internal evaluation
Partners identify the sustainable were invited to resultssituation Supplier evaluation development issues participate in the
(suppliers etc.)
Integrity in operation Supplier training that are most closely assessment of the
related to the Compa- impact materiality of
ny's operations. The ESG issues through an
referenced internation- online questionnaire. A
al and domestic total of 887 responses
standard frameworks were collected
Social contribution
Industry exhibitions include： Shareholders investors
Industry Associations/ Environmental protection GRI Standards and internal manage-
Technology exchange
Chamber of Commerce Sustainable Develop- ment were invited to Industry development meetings ment Goals of the conduct a qualitative
Organizations Business performance Industry standard drafting United Nations (UN assessment of the
and development planning SDGs) materiality of each ESG
Self-regulatory Guide- issue from the dimen-
lines for Listed Compa- sion of the Company's
nies No. 17-Sustainable future sustainable
Information disclosure Development Report business development.(Trial Implementation) External experts were
Company compliant operation by Shenzhen Stock also invited to discuss
Environmental protection News conferences Exchange ESG issues of financial
Media materiality
Employee rights and interests Social media platforms
Business performance
and development planning
The Process of Identifying and Confirming Material Topics
102024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Based on the research results we have identified the materiality of
various sustainable development issues as follows1:
Product quality
and safety
Environmental Social Governance
Business ethics Compliance and risk management Employee rights Greenhouse gas Product quality Corporate
interests and emissions and and safety governance
Pollutant emissions development climate change
Technological innovation Employee rights Compliance and
Pollutant interests and risk management
emissions development
Business ethics
Waste management Corporate Energy Occupational
Occupational health & safety governance utilization health & safety Stakeholder
Stakeholder communicationGreenhouse gas emissions
communication and climate change Waste Technological Cybersecurity management innovation
Environmental and data security
Circular compliance
economy Customer Circular Equal opportuni-management service and economy ty and diverse
Supplier communication employment
Water resource utilization management Water resource
Energy utilization utilization Community
Biodiversity protection Equal opportunity and diverse employment welfare
Environmental
compliance Supplier
management management
Biodiversity Cybersecurity
protection and data
security
Community welfare
Customer
service and
communication
Environmental Social Governance Financial Materiality
Matrix of material topics of SNS
1Topics with high materiality are marked in bold.
11
Impact MaterialityBuilding a Robust
Operation
Foundation
In today's complex and changeable business environ-
ment corporate governance and compliance manage-
ment are the key cornerstones for enterprises to
achieve sustainable development. SNS has built a
robust multi-dimensional management system ground-
ed in a scientific governance structure and guided by
strict business ethics. Further strengthened by a sound
compliance and risk management framework the
Company also prioritises comprehensive intellectual
property protection and advanced network information
security as key pillars of its operations.Material Topics Covered in this Chapter:
Corporate governance
Compliance and risk management
Business ethics
Cybersecurity and data security
Stakeholder communication2024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Corporate Governance
Governance Structure SNS highly values the diversity and independence of the backgrounds of board members and
comprehensively considers multiple factors such as their educational background professional
Adhering rigorously to the laws and regulations such as the Company Law of the field ability and experience when selecting directors. The current members of the Board of
People's Republic of China the Securities Law of the People's Republic of China and the Directors include experienced management personnel technical experts academic scholars and
Code of Corporate Governance for Listed Companies in China SNS has established a other different backgrounds covering professional fields such as machinery and equipment
governance structure composed of Shareholders' General Meetings the Board of financial accounting and asset evaluation. They are capable of providing multi-faceted perspectives
Directors and special committees the Board of Supervisors and senior manage- and suggestions for the Company's decision-making. The Company has formulated and implement-
ment to ensure that the authority decision-making bodies supervisory bodies and ed management documents such as the Independent Directors Work System the Independent
management have clear delineation of authority and responsibilities. Directors Special Meeting System and the Independent Directors Annual Report Work System to ensure
that independent directors make decisions from an objective standpoint while serving and
The Board of Directors of the Company consists of four special committees: the performing their duties.Audit Committee the Remuneration and Appraisal Committee the Nomination
Committee and the Strategic Development and ESG Committee. They provide By the end of this reporting period the sixth Board of Directors of SNS consisted of 9 members
professional support for scientific decision-making. Each special committee including 1 female director and 3 independent directors.effectively performs its duties and plays its role in accordance with the Articles of
Association and the committee's work system to ensure the stable and sound opera- During the reporting period the Company held 3 general meetings of shareholders 6 meetings of
tion of the Company. the Board of Directors 6 meetings of the Board of Supervisors and 13 meetings of specialised
committees.Protection of Shareholders’ Rights and Interests
Board of Supervisors
SNS places great importance on the protection of shareholders’ rights and interests. The Company
Audit Committee has formulated and implemented a series of compliance policies for the securities market including
the Investor Relations Management Policy the Information Disclosure Policy and the Related Party
Strategic Development Transactions Policy. Adhering to the principle of “returning value to and safeguarding investors” the
Shareholders' Board of and ESG Committee Company ensures that all information disclosures are truthful accurate and complete. We actively
General Meetings Directors maintain investor relations attach importance to shareholder returns and adhere to a consistent
Remuneration and cash dividend distribution.Appraisal Committee
Nomination Committee Key Performance
Management The Company has received an A rating for information disclosure among ChiNext-listed
Companies of the Shenzhen Stock Exchange for five consecutive years.Since its listing the Company has consistently paid annual cash dividends with cumulative
Company organisational chart distributions reaching RMB 711 million. During FY2024 a profit distribution of RMB 203
million was executed.
122024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Business Ethics
Operating in strict compliance with the Anti-Unfair Competition Law of the People's Republic Key Performance
of China Anti-monopoly Law of the People's Republic of China and other laws and regula-
tions SNS follows the principle of honest management and resolutely resists corruption
100% of employees signed the Integrity Commitment Letter
and bribery and other business ethics violations. SNS has established the Employee
100% of personnel in critical key and sensitive positions signed the Integrity
Integrity Policy which outlines the fundamental requirements and code of conduct for
Risk Prevention and Control List
ethical business practices. All employees are required to sign the Integrity Commitment
0 incidents of business ethics violations
Letter pledging to uphold compliance with laws fulfill duties with diligence maintain
personal integrity and adhere to moral principles ensuring honest and fair business
conduct while abstaining from any form of corrupt activities.SNS Organised the “Building Integrity and Clean Wuhou” Integrity
To reinforce anti-corruption and anti-bribery efforts the Company conducts annual Culture Experience Day
comprehensive and systematic integrity risk assessments covering both SNS and all
subsidiaries. The findings are compiled into the Integrity Risk Prevention and Control List.In July 2024 SNS organised Party members and cadres to participate in the Integri-
Employees in critical high-risk or sensitive positions are required to review and acknowl-
ty Culture Experience Day with the theme “Building Integrity and Clean Wuhou”.edge the Integrity Risk Control List ensuring they fully understand potential risks and key
They visited the Chengdu Wuhou Memorial Temple Museum a provincial-level
mitigation measures. This strengthens risk awareness and self-discipline among key
base for integrity culture to study and promote the spirit of clean governance.personnel. In 2024 the Company conducted a comprehensive assessment integrating Wuhou Memorial Temple is one of the first provincial-level bases for integrity
factors such as ethical awareness job responsibilities business processes institutional
culture in Sichuan Province. It not only embodies rich historical and cultural
mechanisms and external environment identifying a total of two Level 1 integrity heritage but also serves as a significant venue for integrity education.During the
positions seven Level 2 integrity positions and 26 Level 3 integrity positions with target-
event Party members followed the “Integrity Culture and Education Line” through
ed communication and integrity education programs successfully completed for all
the temple grounds. While immersing themselves in the history of the Shu and Hanpersonnel in these identified roles. Dynasties they deeply reflected on the spirit of “loyalty integrity responsibilityand due diligence” exemplified by historical figures thereby enhancing their
The Company places special emphasis on preventing corruption in procurement
awareness and commitment to practising integrity in their professional roles.processes by implementing stringent control measures. On the one hand the Company
requires key suppliers to sign a Procurement Integrity Agreement that explicitly prohibits
improper conduct such as commercial bribery. Furthermore the Audit and Supervision
Department conducts annual integrity-themed meetings specifically for newly added Besides the Company encourages both internal and external stakeholders to jointly super-
major suppliers to reinforce the Company's procurement code of conduct and ethical vise the implementation of integrity policies by reporting any improper business conduct
standards. On the other hand the Company signed a Procurement Integrity Commitment such as bribery or corruption. Multiple reporting channels are available including the OA
Letter with employees of the procurement department to standardise and supervise system executive reception days. The Audit and Supervision Department is responsible for
procurement behaviour and promote fair and honest commercial transactions. investigating the authenticity of reported cases and will complete the verification process and
provide responses within five working days. The Company places high importance on
whistleblower protection strictly maintaining the confidentiality of whistleblowers' identities
and provided information. Verified reports may qualify for rewards based on the circum-
stances and significance of the case.
132024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Compliance and Risk Management
SNS is well aware that compliance governance and risk prevention and control are founda- Risk Management
tions to achieve stability and prosperity. Adhering to the bottom line of compliance in
accordance with the law the Company improves comprehensive risk management
effectively identifies evaluates and responds to potential risks in all aspects of production SNS is committed to establishing a robust risk management system that clearly designates
and operation and continuously strengthens the internal control system to ensure the responsible functional departments for risk prevention and control across key areas includ-
Company's business development. ing finance R&D quality safety and environmental protection. The Company regularly
conducts both internal and external audits to evaluate the effectiveness of its risk control
measures.Compliant Operation Within the Company functional departments carry out the identification of risk factors in
relevant fields including environment quality health and safety and formulate response
measures in accordance with departmental systems and procedural documents such as the
SNS proactively monitors and rigorously complies with applicable laws regulations and
Comprehensive Management Manual. During the annual internal audit process the Company
regulatory guidelines. The Company conducts comprehensive operational alignment with
establishes dedicated audit teams comprising both internal auditors and department heads.the latest supervisory mandates systematically identifying and remediating latent compli- These teams employ multiple verification methods including face-to-face interviews record
ance exposures. In terms of information disclosure and investor relations management the
sampling and document reviews to monitor the implementation of risk mitigation
Company conducts communication through telephone e-mail interactive platforms etc. in measures evaluate the effectiveness of risk responses and identify process optimisation
accordance with the requirements of the Rules for the Listing of Stocks on the Growth opportunities for any findings detected.Enterprise Market of the Shenzhen Stock Exchange Measures for the Management of Informa-
tion Disclosure of Listed Companies Investor Relations Management System etc. to effectively
Meanwhile in compliance with the Basic Standards for Enterprise Internal Control and other
fulfill its information disclosure obligations and protect shareholders' rights and interests.regulatory requirements the Company conducts annual internal audit inspections of its
subsidiary companies on a regular basis. No material risks or compliance violations were
In production and operations the Company engages professional third-party legal advisors identified during these audits. During the reporting period the Company engaged an
to continuously monitor regulatory developments and provide expert guidance for compli- independent third-party firm to perform an internal control audit which focused on identify-
ance implementation. During the reporting period particular emphasis was placed on ing risk points and control deficiencies. According to the Internal Control Audit Report issued
ensuring the compliance of overseas operations effectively mitigating risks associated with by ShineWing Certified Public Accountants (Special General Partnership) the Company
rapidly expanding international business segments. maintained effective internal control over financial reporting in all material respects as of 31
December 2024 in accordance with the Basic Standards for Enterprise Internal Control and
We prioritise the promotion of compliance awareness and cultural development across the
related regulations.entire organisation and incorporate compliance requirements as mandatory in all opera-
tional meetings. Through consistent emphasis and regular communication we continuous-
ly strengthen employees' compliance awareness. In 2024 the Company conducted special-
ised training on financial and tax compliance the production management system and
supervision of listed companies to help different departments keep abreast of the latest
compliance changes closely related to their work functions and strengthen their under-
standing and practical ability to meet compliance requirements.
142024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Intellectual Property Protection
SNS prioritises the protection of innovation achievements and intellectual property
(IP) management. The Company has implemented a categorised protection strategy Exploratory research on frontier technologies
for innovation outcomes while actively monitoring policy updates industry trends
and latest competitor activities to mitigate both internal and external infringement Sign non-disclosure agreements with R&D personnel strictly protect
risks. The Company has designated dedicated IP management personnel. Their work technical information and prevent the leakage or abuse of technical
is governed by comprehensive regulatory frameworks including the Intellectual Proper- achievements at an early stage
ty Management Policy the Trademark Management Regulations and the Administrative
Measures for Patents and Software Copyrights which standardise all aspects of IP
registration maintenance administration and protection.The Company attaches
great importance to intellectual property protection and patent life cycle manage-
Reserved technical achievements that have not been made public yet
ment: in the early stage of R&D projects or new product development the Company
conducts in-depth market research and patent searches without infringing upon the
Adopt the dual protection method of "patent + technology isolation" to
intellectual property rights of others; in the patent application and maintenance stage
ensure that the technology stays exclusive and competitive in future
the Company engages professional external institutions to provide guidance and
applications
maintain the Company's intangible assets.At the same time the Company organises specialised intellectual property training
every year for employees in key positions such as R&D personnel enabling them to Applied innovative achievements
stay updated on the latest developments in laws and regulations such as the Patent
Law of the People's Republic of China and the Copyright Law of the People's Republic of Actively apply for patents ensure the exclusivity and market advantag-
China to enhance their awareness and ability to protect intellectual property. es of innovative technologies through legal means and prevent the
technology from being imitated or infringed upon by others
Categorised protection strategies for innovative achievements
Key Performance
As of the end of 2024
A total of 324 national patents have been authorised including 48 invention patents;
A total of 7 computer software copyright registration certificates have been authorised;
A total of 18 trademark registration certificates have been authorised.
152024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Cybersecurity and Information Security
Digital construction
SNS has proactively responded to the digital transformation era by implementing its "Smart
SNS 123" strategy since 2019. Guided by the framework of "One Objective Two Creations
and Three Platforms" the Company has actively adopted digital networked and intelligent
production tools. To date we have implemented multiple electronic information systems
across collaborative management R&D and smart manufacturing sectors.The Company uses a Product Lifecycle Management (PLM) system as its core platform. It
integrates 3D modelling CNC programming process planning and simulation tools to
enhance manufacturing modularity standardization and serialization. This improves both
design quality and efficiency. Smart logistics solutions have also been adopted including
automated containers automated stereoscopic warehouse and AGVs (Automated Guided
Vehicles). These ensure efficient material storage and precise transportation. Additionally
the Company has built China’s first flexible production line for mechanical seals. This
innovation enables automated production further strengthening its market competitive-
ness.After years of development the Company's digital transformation has delivered outstand-
ing results significantly enhancing market competitiveness. By the end of this reporting
period SNS has been recognised as a "Chengdu Smart Factory" while its subsidiary UTEC
has been certified as a "Demonstration Smart Workshop in Suzhou Industrial Park."
Automated stereoscopic warehouse of SNS
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Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Information Security Management
A "Two Locations Three Centres" disaster recovery
SNS strictly complies with the Cybersecurity Law of the People's Republic of China and related framework has been established to effectively respond
Disaster recovery
regulations. The Company has established internal policies including the Information System to emergencies such as natural disasters hardware
mechanism
Security Management Policy and the Network Infrastructure Security Standards to continuously failures and cyberattacks ensuring data integrity and
strengthen data protection and information security across all operations safeguarding the business continuity
privacy and sensitive data of employees clients and stakeholders. The Company's informa-
tion management department is responsible for unified governance of access controls across
application systems and network infrastructure. It regularly reviews and confirms user Regular checks are performed on system performance
permissions strictly controlling access to critical data and information. Internal security vulnerabilities and data backup integrity. This
inspection ensures all equipment and systems maintain optimal
The Company has defined the basic security policy requirements including prohibiting operation
cross-departmental computer access restricting the installation of non-work-related
software separating the office network from residential or personal network environments Based on the importance of the system quarterly
and backup mechanisms for critical data. All administrative passwords for application special and annual comprehensive emergency drill
systems and network equipment must be changed at least annually. Password strength must plans are made
comply with the Company’s security standards. The information management department Emergency drills A company-wide cybersecurity emergency drill is organ-
conducts regular inspections and emergency drills to ensure and oversee the implementation ised annually to simulate real-world scenarios such as
of security measures. hacking and data leakage. It aims to enhance the
Company's emergency response capabilities
Apart from that cybersecurity training is organised and carried out company-wide every year
covering the latest regulatory mandates common network attack vectors and preventive
measures data protection methods etc. These activities aim to strengthen the Company's The external professional institution is introduced to
internal information security awareness and capabilities. provide 24-hour monitoring and security protection so
Monitoring as to detect anomalies timely and issue early warning
& early warning Regular simulated attack and defense drills are conduct-
ed in a bid to identify potential security vulnerabilities
and put forward targeted improvement suggestions
Daily management measures for information security protection
2024 Cybersecurity Training of SNS
In December 2024 the Company launched annual cybersecurity training covering
all employees of SNS and its holding subsidiaries. This training focused on comput-
er anti-virus knowledge especially for the increasingly rampant mining viruses. It
provided an in-depth introduction by combining theory with practice and
explained the characteristics hazards daily monitoring and prevention of viruses
and responding measures after computers attacked by viruses. Through profes-
sional knowledge popularisation and operation guidance this training has
strengthened employees' awareness of cybersecurity and built a strong line of
defense for the Company's information security.
17Practising Green
and Low-carbon
Actions
SNS practises the concept of green development and
extensively implements energy-saving emission reduc-
tion and resource recycling measures in the production
and operation process. By continuously empowering
and improving the level of green manufacturing the
Company contributes to the realization of a win-win
situation of economic and environmental benefits for
the whole society.Material Topics Covered in this Chapter:
Greenhouse gas emissions and climate change
Pollutant emissions
Energy utilization
Waste management
Circular economy
Water resource utilization
Environmental compliance management
Biodiversity protection2024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Environmental Management System
Based on the ISO 14001 environmental management system standard SNS regulates the construction of the environ-
mental management system in accordance with the actual situation of the Company. All holding subsidiaries have set
up an environmental management structure. The general manager serves as the top leader and appoints dedicated
departments to lead the implementation of the environmental management system monitor and inspect its effective-
ness. Each department’s environmental responsibilities are clearly defined for daily operations. We have established a
series of internal environmental management regulations including Environmental Management System Environmental
and Occupational Health & Safety Operation Control Procedures and Environmental Pollution Emergency Response Plan.These form a three-level environmental and health & safety governance framework ensuring full compliance through-
out production and operations.An overall stipulation of environmental
Level 1: management responsibilities and policies
Management
manual
Specify the operation process of the Compa-
Level 2: Procedural ny's management work to ensure that the
documents and Company's operations comply with the
management system requirements of national laws and regulations
Include operating procedures and operating
instructions and provide guidance and
Level 3: Job files requirements for the specific operations of
various departments to prevent environmen-
tal accidents
Environmental Management Document System of SNS Environmental Management System Certificate of SNS
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and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Furthermore SNS actively enhances employees' environmental awareness through targeted
training and practical exercises. By integrating these initiatives with routine environmental
Environmental factors identification inspections we guide our workforce in embedding sustainable development principles into
daily production and operational practices.We have established the Environmental Factor Identification Hazard Assessment
and Risk Control Procedures. Annually we conduct evaluations of environmental Based on a sound environmental management system and efficient management measures
impact factors and implement targeted control measures and emergency plans.SNS takes the path of “green + intelligent” development and continues to promote the
This ensures precise and effective environmental management while minimiz-
construction of green factories. SNS has established a dedicated Green Factory Task Force to
ing risks. We employ a structured environmental analysis framework covering 3 implement comprehensive green manufacturing guided by five core principles: intensive land
timelines 3 operational states 12 sources and 5 impact categories to systemat-
use clean production non-toxic materials waste recycling and energy decarbonisation. Our
ically identify and assess environmental factors across all operations. Each efforts have been recognised through multiple prestigious accolades including being certified
factor is assigned to relevant departments to strengthen accountability and
as both a Sichuan Provincial Green Factory and a National Green Factory during 2024. These
enhance corporate environmental risk management.achievements demonstrate the steady advancement of SNS's integrated green development
capabilities.Environmental monitoring
Key Performance
We conduct both internal and third-party environmental monitoring in full
compliance with approved Environmental Impact Assessment (EIA) require-
ments and discharge permits and ensure that all monitoring activities includ- During the reporting period the Company:
ing frequency methodologies and results meet national regulatory Invested RMB1.3068 million in environmental protection including the purchase
standards. of energy-saving and water-saving environmental protection equipment the opera-
tion and maintenance of environmental protection facilities and the organization of
environmental protection training.No major environmental emergencies have occurred and no environmental protec-
Emergency response plan
tion-related violations or administrative penalties have occurred.We have established the Environmental Pollution Incident Emergency Plan and
conduct regular environmental risk assessments internal emergency resource
audits and emergency response drills. These measures ensure all employees
are thoroughly familiar with emergency management protocols for various
environmental incidents and possess practical emergency response skills.Environmental risk management of SNS
Key Performance
By the end of this reporting period SNS Sun Seals UTEC and NDIV have
obtained ISO 14001 environmental management system certification
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Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Energy and Carbon Management
As global climate change intensifies and resource and environmental Physical Risks
constraints tighten effective energy and carbon management has
emerged as a critical driver for enabling green low-carbon transformation Risk types Degree of risk Risk description and impact Response measures
across economic and social systems. SNS is committed to strengthening
management and practice in energy efficiency improvement carbon
We implement a Heat Emergency
emission control renewable energy application and green technology Extreme heat reduces the
Response Plan to enhance equip-
innovation. The Company is also actively contributing to society to tackle operational efficiency of
ment maintenance and ensure
climate change and achieve low-carbon transformation. temperature-sensitive equip-
adequate cooling systems. The
ment while simultaneously
plan includes backup power
Extreme impairing employee productiv-
High solutions (generators/solar PV) to
heat ity. Additionally maintaining
maintain operations during
Climate Change Responses optimal temperatures summer power restrictions along
requires increased mainte-
with heat-prevention supplies
SNS proactively engages in climate change mitigation and adaptation nance and energy costs for distribution to protect employee
initiatives. We conduct comprehensive climate risk assessments develop cooling systems. health.strategic response plans and implement targeted measures to minimise
potential climate-related impacts.Extreme precipitation may
We establish a Flood Prevention
cause stagnant water or
Emergency Plan complete with
precipitation to overwhelm
essential flood control equipment
Extreme Medium factories and facilities cause
including sandbags and flood
precipitation -high damage to equipment and
barriers. Regular flood prevention
facilities delay normal produc-
drills are conducted to ensure
tion and incur additional
preparedness.capital expenditures.We implement enhanced
moisture control measures
including additional dehumidifiers
The increase in moisture
and absorbent materials to
content may cause the metal
maintain dry conditions in produc-
parts of the equipment to rust
Wet trends High
easily affect product produc tion workshops equipment and -
tion efficiency and quality and storage areas to prevent rust
formation. Regular equipment
reduce customer reliability.maintenance and inspections
ensure timely repair of any
corrosion.
12
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and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Transition Risks
Risk types Risk description and impact Response measures
To mitigate climate change national carbon emission and energy use policies We closely monitor evolving climate-related regulations and
have become increasingly stringent. Companies now face rising costs for energy policies while proactively implementing carbon accounting and
Policies and efficiency emission reduction compliance and potential litigation risks. Mean- energy efficiency initiatives to strengthen emission manage-
regulations while summer high-temperature electricity rationing policies may prevent the ment capabilities. To ensure uninterrupted operations during
operation of energy-intensive equipment such as sintering furnaces disrupting summer power restrictions we have deployed backup genera-
production processes. tors and expanded photovoltaic power generation capacity.Outdated energy-intensive technologies risk being displaced by more efficient We phase out high-energy-consuming technology and equip-
and eco-friendly alternatives potentially eroding a company's technological edge. ment; strengthen industry cooperation and carry out research
Technologies Unsuccessful R&D efforts in new technologies may impose significant financial and development of low-carbon environmental protection
burdens on enterprises. technologies.Future market preferences may increasingly favour low-carbon products poten-
tially rendering non-compliant offerings obsolete. Meanwhile climate change
We improve product production efficiency and reduce product
Market could disrupt supply chains through raw material price volatility increased
carbon footprint; explore market areas in low-carbon industries.storage expenses and transportation cost fluctuations exposing businesses to
significant financial pressures.Stakeholders such as regulators investors potential customers etc. may have Disclose information such as energy consumption and carbon
higher expectations for a company's engagement in climate issues and informa- emissions through ESG reports annual reports etc. to ensure
Reputation tion disclosure. If the company fails to participate in a timely and active manner the timeliness accuracy and transparency of information disclo-
it may compromise the Company's reputation. sure.
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and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Energy Saving and Carbon Reduction Actions
In strict compliance with The Energy Conservation Law of the People's Republic of China and local energy rules SNS has formulated an Energy Conservation and Emission Reduction Management System
to put forward management control supervision reward and punishment details for water electricity and gas conservation. The system also defines the responsibilities of various departments
in energy management so as to strengthen supervision and ensure the implementation of energy-saving and carbon-reducing measures and enhance the Company's energy management
capabilities. SNS continuously strengthens energy management audits. Each month the Safety Management Department conducts electricity consumption statistics compares monthly usage
changes and analyses reasons for significant variances. Regular inspections are performed on workshop and office building electricity usage to reduce air conditioning use and strictly prohibit
equipment idle operation.The Company actively adopts energy-saving technological upgrades and optimises office environments to enhance energy management and reduce overall carbon emissions. In 2024 SNS carried
out the following energy conservation and emission reduction measures:
Air conditioning is prohibited when outdoor temperatures are below 26°C in summer or
Regulation of above 16°C in winter;
air conditioning Summer settings must not be lower than 26°C and winter settings must not exceed 20°C;
(AC) use AC must be turned off in the office when unoccupied for over 30 minutes.
Regulation of All office electronics (computers monitors water dispensers lights printers AC etc.) must
other be powered off after work hours;
energy-consuming Production equipment and workshop lighting must be switched off during extended
UTEC has installed the rooftop photovoltaic system
equipment use non-use periods.Energy-saving
We optimised the bellows product air-testing processes significantly reducing electricity
technological
and water consumption.upgrades
We installed solar streetlights to replace conventional lighting;
We deployed rooftop photovoltaic panels to enhance the self-generating capacity of
Green energy use photovoltaic increase the proportion of green energy used and reduce thermal power
procurement;
KS GmbH purchases 100% carbon-neutral natural gas to reduce carbon emissions causedby energy use. Sunny Seal won the “Outstanding Achievement Awardfor Energy Conservation and EmissionReduction” issued by the Meishan Federation
Energy Management Measures of Trade Unions of Tianfu New District Sichuan Province
222024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
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and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
In addition SNS integrates low-carbon considerations throughout the entire product lifecycle by conducting product carbon
footprint verification. The Company has engaged a third-party organization to perform carbon footprint assessments in
accordance with ISO 14067-2018 Greenhouse Gases - Carbon Footprint of Products - Requirements and Guidelines for Quantification.Using a "cradle-to-gate" approach the verification covers four key stages: raw material production raw material transportation
product manufacturing and product transportation. In 2024 the Company completed the product carbon footprint verification of
the dry gas seal S748L-128 and the result was 562.6 kgCO2 per set. The carbon emissions from the raw material production and
product manufacturing stages account for more than 80% of the total. In the future the Company will further expand the product
coverage of carbon footprint management throughout the life cycle identify high-emission stages and carbon reduction potential
and explore effective ways to reduce the environmental impact of the product throughout the life cycle.Dry Gas Seal’s Carbon Footprint Certification
Key Performance
Energy Consumption
Direct energy consumption totaled 88.33 tonnes of standard coal;
In 2024 SNS and all its subsidiaries set a target to maintain Indirect energy (purchased electricity) consumption totaled 7527471.74
"electricity consumption per RMB10000 of output value not kilowatt-hours of which 499900 kilowatt-hours was renewable electricity.exceeding the 2023 levels“. While Sunny Seal's energy useincreased significantly due to production expansion all other Carbon Emissions
subsidiaries have achieved this goal. Scope 1 carbon emissions: 161.22 tonnes of CO2 equivalent;
Scope 2 carbon emissions: 4038.97 tonnes of CO2 equivalent.
232024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
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and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Resource Utilization
SNS regards efficient resource utilization as a cornerstone of sustainable
development. Through optimised production processes innovative technolo-
gy applications and green office initiatives the Company is committed to
Recycling of
promoting resource conservation and circular utilization across its value Material Consumable Paperless transshipment
chain achieving a balance between economic value and environmental replacement recycling manufacturing equipment
benefits. and packages
In terms of water use the Company is not engaged in the water-intensive Use flushing and Collect the During daily office Centralise the
industry thus prioritizing water footprint reduction in auxiliary operations. cotton towel for packaging boxes of work the packaging of goods
For instance we have implemented a water recycling system in our laborato- wiping and the purchased Company provides according to
ries to minimise freshwater consumption posted water conservation remind- grinding products items and use the training for customer needs to
instead of tissue packaging for employees to raise reduce the use of
ers at all faucets to reinforce a culture of water-saving and conducted regular to wipe directly to secondary use to their awareness of packaging
facility inspections to promptly address leaks or other water waste incidents. reduce the deliver products or resource materials
In 2024 the Company enhanced compliant water recycling practices in both amount of paper transship special conservation and Use customised
the bellows production section and the silicon carbide processing section. Improve the products adopts paperless recyclable transfer
process of Recycling workshop office measures pallets instead of
expensive protective nets and digital means disposable
The Company has adopted a resource conservation-oriented approach materials rubber pads foam to reduce paper packaging
focusing on water stewardship and proactively advocating water conserva- optimise the pads use while materials which
tion. All subsidiaries are also advancing and implementing water-saving structure and For products simplifying the can greatly reduce
initiatives. formula of damaged by workflow the amount of
low-cost materials customers and used packaging
to control the products the materials
Regarding material consumption the Company identifies opportunities for consumption of Company repairs
reduction and recycling throughout operations which spans multiple stages raw materials more than a
including procurement manufacturing packaging and after-sales services thousand sets of
covering various materials such as packaging supplies raw materials process seals for users
every year for
consumables and office supplies. These efforts reduce material consumption secondary utilization
across the entire production process while improving resource efficiency.Resource Conservation and Recycling Measures of SNS
Key Performance
In 2024 the Company consumed 98121.31 square meters of
wooden box packaging materials and 14.47 tonnes of plastic packag-
ing materials.Recycling silicon carbide transfer box
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and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Emissions and Waste Management
SNS complies with the Law of the People's Republic of China on the Prevention and Control
of Atmospheric Pollution the Law of the People's Republic of China on the Prevention and Type ofemissions
Treatment methods
Control of Water Pollution the Law of the People's Republic of China on the Prevention and and waste
Control of Environmental Pollution by Solid Waste Standard for Pollution Control on Hazard-
ous Waste Storage and other laws and regulations and applicable emission standards. It
strictly adopts compliance emission control measures continuously optimises processes
and technologies and improves the level of "Three Wastes" governance. SNS and Sunny Seal installed dust and particulate treatment
systems including bag filters pulse dust collectors cartridge
SNS and its holding subsidiaries engage qualified third-party to conduct environmental dust collectors and welding fume extractors to centrally
monitoring every year tracking our environmental emission levels. The Company is also collect and process airborne particlesWaste gas
subject to the supervision and testing by environmental regulatory authorities on an NDIV treated production exhaust gases by subjecting organic
irregular basis. During the reporting period all of the environmental monitoring results emissions to preliminary treatment triple-stage filtration
of SNS and its holding subsidiaries met regulatory requirements. and activated carbon adsorption followed by catalytic
combustion for harmless disposal
For hazardous waste the Company has established and
strictly enforced the Hazardous Waste Management System to
standardise the complete process from generation and
Solid waste collection to storage and transportation
Hazardous waste generation is reduced through enhanced
material reuse with licensed third-party contractors handling
collection and disposal to ensure compliance
All wastewater treatment and discharge strictly adhere to the
Wastewater Integrated Wastewater Discharge Standard (GB 8978-1996) and
the discharge permits
Shot blasting dust collection system and Acid wash wastewater treatment equipment Emissions and waste treatment methods
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and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Type of emissions
and waste Optimised treatment measures
SNS and Sunny Seal modified silicon carbide formulation
processes significantly reducing waste gas emissions from
spray drying towers and sintering process. Annual compliance
rate for exhaust emissions kept at 100%
Waste gas The Company enforced strict vehicle emission standards
prohibiting vehicles below China V (GB 17691-2005 Phase V)
standards from entering facilities. Sun Seals replaced diesel
forklifts with electric models to reduce mobile source waste gas
emissions
UTEC implemented industrial vacuum systems to separate
metal chips from cutting fluid for recycling. Sunny Seal and NDIV
installed oil-water separators to recover cutting fluid for reuse
NDIV and Sun Seals equipped some machining equipment with
oil mist collectors to capture oil aerosols during operation. The
separated cutting fluid or machine oil can be recycled for
production reducing the company's burden of hazardous
waste transportation and disposal
Solid waste
Sunny Seal upgraded acid wash facilities improving wastewater
recovery and purification while minimizing hazardous liquid
waste generation Silicon carbide dust control equipment and Exhaust gas treatment systems
SNS and Sun Seal optimised cutting process to reduce waste
steel scraps and installed dedicated recycling bins for foam
padding and waste steel scraps. By doing so the discard of
consumables waste was reduced and material circularity was
improved Honour: SNS was awarded the title of "Zero-Waste Factory" in Chengdu
In 2024 Chengdu accelerated its "Zero-Waste City" initiative expanding
"Zero-Waste City Cells" across factories and residential communities. SNS
Sun Seals commissioned new wastewater treatment facilities to
Wastewater earned a spot on the 2024 "Zero-Waste City Cells" list in Chengdu and received
increase water reuse and reduce discharge volumes the "Zero-Waste Factory" certification for its green and zero-waste practices.Emissions and Waste Treatment Optimisations in 2024
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and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Key Performance (solid waste) Ecological Protection
In 2024
Produced 539.75 tonnes of non-hazardous waste
Produced 82.94 tonnes of hazardous waste In strict compliance with the Environmental Impact Assessment Law of the People's Republic of
China the Regulations on Environmental Protection Management of Construction Projects and other
laws and regulations SNS comprehensively conducts environmental impact assessments for
new modified and expanded projects involved in production and operation. The Company also
implements environmental health and safety management measures during the design
construction and production stages to minimise interference and damage to the local ecosys-
tem. In 2024 the Company integrated the concept of green design into the construction plan of
Key Performance (wastewater) the new office building of SNS making full use of natural light and landscape vegetation to
create a good ecological space. Meanwhile it improved the building's thermal insulation perfor-
mance and resource consumption efficiency through exterior design and material selection.In 2024
Discharged 24608.00 cubic meters of industrial wastewater
Discharged 35143.99 cubic meters of domestic wastewater
Discharged 0.984 tonnes of ammonia-nitrogen (NH3-N)
Discharged 4.689 tonnes of chemical oxygen demand (COD)
Discharged 0.006 tonnes of total phosphorus
Discharged 0.030 tonnes of suspended solids
Key Performance (waste gas)
In 2024
Emitted 0.002 tonnes of nitrogen oxide (NOx)
Emitted 0.157 tonnes of non-methane hydrocarbon (NMHC)
27Ensuring Employee
Rights and
Development
Regarding employees as the cornerstone of organisa-
tional success SNS is committed to creating an equal
and growth-oriented workplace culture. The Company
protects the legitimate rights and interests of its
employees and helps employees achieve professional
growth through a diversified training system. These
efforts lay a solid talent foundation for the sustainable
development of the Company. The Company also highly
values the physical and mental health of its employees
by creating a safe and comfortable working environ-
ment thereby enhancing a profound sense of belonging
and holistic well-being across the workforce.Material Topics Covered in this Chapter:
Employee rights interests and development
Occupational health & safety
Equal opportunity and diverse employment2024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
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and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Basic Rights and Interests
SNS strictly practises compliant employment and advocates a diverse and equal
Gender composition Age distribution
working environment. The Company protects the well-being of employees in daily
management ensures smooth communication channels and builds an inclusive and
harmonious workplace atmosphere. 23.01% 12.10%76.99% Above 50 28.94%
Female Male
Below 30
Compliant Employment
The Company strictly complies with relevant laws and regulations including the Labour
Law of the People's Republic of China the Labour Contract Law of the People's Republic of
China and the Provisions on the Prohibition of Using Child Labour. Internal documents
such as the Recruitment Employment and Termination Management System standardise 58.96%
employment requirements and procedures to ensure all labour practices are lawful and 30-50
compliant. Additionally the Company has established a policy on protection of minors
that strictly prohibits any form of child labour. It forbids forced labour through violence Employees structure
threats or illegal restriction of personal freedom and bans physical punishment intimi-
dation harassment abuse or any discriminatory behavior against employees thereby SNS "Floral Artistry · Brilliant Women Shine" International
safeguarding each employee's fundamental rights and dignity. Women's Day Event
To celebrate International Women's
Diversity and equality Day the Company organised a
"Floral Artistry · Brilliant Women
SNS respects every employee and ensures equal opportunities in employment training Shine" event inviting all female
and career development. The Company values the strengths of employees from employees to participate in flower
different genders and backgrounds to foster collaboration and innovation creating an arrangement experience to enrich Floral artistry experience event
inclusive equal harmonious and caring workplace environment. The Company has their cultural lives. The Company's on International Women's Day
established the Female Employees and Minor Protection Policy to fully protect women's labour union representatives
legal rights during recruitment workload arrangements pregnancy and maternity delivered letters of appreciation and
periods. It strictly adheres to relevant laws by providing statutory maternity and breast- flower baskets expressing gratitude
feeding leave reasonably adjusting work arrangements for pregnant employees and and recognition for female employ-
ensuring their working conditions and well-being. Through various support measures ees' hard work and outstanding
the Company strengthens assistance for female employees helping them balance contributions across sales manu-
personal and professional development. Furthermore all departments are required to facturing R&D and management
implement preventive mechanisms to eliminate workplace sexual harassment and roles. The event further fostered a
gender discrimination actively building a corporate culture that respects diversity and corporate atmosphere of respect SNS extends holiday greetings to
mutual support thereby safeguarding female employees' legitimate rights and career and care for women. all female employees
development opportunities.
282024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Employee Communication It also offers corporate-specific care programs such as commercial insurance holiday
gifts birthday benefits and bereavement subsidies. The Company prioritises work-life
SNS values employee feedback and considers democratic communication a key aspect of balance by organizing diverse recreational activities to strengthen team cohesion and
corporate management. The Company has established the Information Feedback employee happiness. In 2024 the Company's labour union hosted garden touring hiking
Handling System. We have also provided multiple channels such as OA system submis- trips bonfire evenings and various sports competitions helping employees unwind and
sions monthly executive receptions and departmental discussion forums to encourage build camaraderie in a relaxed atmosphere collectively fostering a warm and caring
employees to share opinions and suggestions for operational improvements. The admin- corporate family.istration department regularly collects and organises feedback forwarding it to relevant
departments for resolution. Responsible departments must respond within specified
timelines with reviewed outcomes communicated to the submitter. Employees whose
suggestions are adopted and contribute to management will receive rewards effectively Six insurances and one housing fund (medical insurance
driving operational optimization. The Company also holds regular employee representa- supplementary medical insurance endowment
tive meetings to protect employees' rights to information and participation and strength- Statutory insurance unemployment insurance work-related injury
en communication. benefits insurance maternity insurance housing provident fund)
Paid leave (statutory holidays annual leave marriage
In 2024 SNS and Sunny Seal conducted employee satisfaction surveys covering career leave maternity leave breastfeeding leave parental
development corporate culture and work environment. Based on collected feedback leave nursing leave etc.)
improvement plans were developed to enhance democratic management and enhance
employees’ sense of belonging.Comprehensive benefits (holiday benefits birthday
benefits home visit leave benefits parents’ meeting
Employee Satisfaction Survey Conducted by SNS and Sunny Seal leave cooling and heating subsidies funeral subsidies
nursing room fitness facilities etc.)
In 2024 SNS and Sunny Seal achieved a 93% participation rate in their employ- Supplementary Health protection (general health check-ups employer's
ee satisfaction survey. The survey covered job understanding career growth benefits liability insurance traffic accident insurance trade union
interdepartmental collaboration work environment corporate culture medical mutual assistance insurance)
activities and future development directions to comprehensively assess how Poverty relief visits
employees feel about the Company. Results showed over 90% of employees Free workday meals
felt a sense of achievement in their work expressed satisfaction with their work Employee dormitories
environment and occupational health and safety conditions and actively
supported the Company's energy conservation and emissions reduction
initiatives. Employees also provided numerous suggestions for further enhanc- Employee benefits system of SNS
ing motivation and creativity.Key Performance
Employee Care
In 2024
SNS continuously develops and optimises a multi-tiered benefits system strictly 100% of employee benefits coverage；
implementing statutory benefits including six social insurances and one housing RMB 58.1 million was invested in employees' welfare expenses.2
fund marriage leave maternity leave nursing leave and bereavement leave.
2The statistical scope includes supplementary benefits such as commercial insurance premiums
cooling and heating subsidies.
292024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
“Best Moments Grow Together” Children’s Day SNS Mental Health Training Session Themed on "Alleviating Workplace
Parent-Child Sports Event at SNS Pressure Tapping into Inner Strength and Becoming a Better Self"
The Company’s labour union is committed to the well-being of On March 20 2024 the Labour Union Committee of SNS organised a mental health training
employees’ children presenting gifts to all employees’ underage session inviting professional psychotherapists from Sichuan Provincial People's Hospital to
children every year on Children’s Day. On June 1 2024 the Labour conduct training for over 100 voluntarily registered employees. The training focused on
Union Committee of SNS organised a fun-filled parent-child sports emotional management and stress relief in the workplace. Through case studies and interac-
day inviting over 30 employee families to participate in games tive explanations employees learned techniques to address common issues and adjust their
sports competitions and various activities. The event also included mindset. This not only helped employees regulate their mental health but also improved
a tour of the Company’s exhibition hall for employees’ children their efficiency in work and daily life promoting mutual growth for both the Company and its
helping them to better understand their parents’ workplace and employees.enhancing employees’ sense of belonging.Fun parent-child sports events on Children's Day
Spring Festival garden touring at SNS Tug-of-war
2024 Sichuan Extraordinary Employer Award
SNS has always regarded its employees as its most important partners. In recognition of its outstanding performance in talent
management and employee care SNS was awarded the title of "2024 Sichuan Extraordinary Employer of the Year".
302024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Career Development
Adhering to a people-oriented approach SNS is UTEC and Qingdao University of Science and Technology Establish the Collaborative
committed to building a comprehensive talent develop-
Innovation Centre for Rubber and Plastic Sealing Materials Applications
ment system. Through well-designed compensation
incentives and systematic training programs the
Company fully supports employee growth and fosters
On December 4 2024 UTEC a subsidiary of SNS signed a framework agreement with Qingdao University of
a highly efficient professional and dynamic team
Science and Technology to jointly establish the Collaborative Innovation Centre for Rubber and Plastic Sealing
thereby providing a solid foundation for mutual
Materials Applications. This collaboration aims to deepen the integration of industry academia and research
progress between the Company and its employees.and advance technological innovation and industrial application of rubber and plastic sealing materials. Both
parties engaged in in-depth discussions on technology R&D talent development and commercialization of
research outcomes pledging to leverage their respective strengths to explore advancements in polymer materi-
als. The Centre will provide advanced and reliable sealing technology solutions for industries such as high-end
Talent Attraction equipment manufacturing and energy contributing to high-quality industrial development.SNS upholds the recruitment principles of "openness
fairness and impartiality" adopting a diversified hiring
model that combines campus recruitment public
recruitment and internal competitions. The Company
posts job openings through official recruitment
platforms and other formal channels precisely attract-
ing high-quality talent based on strategic development
needs to ensure the Company's sustainable growth.Furthermore the Company embraces the concept of
collaborative education by promoting in-depth cooper-
ation with leading universities in the industry. By doing
so it aims to establish talent development and techni-
cal exchange platforms. We have established a deep
partnership with China University of Petroleum (East
China) through lectures and joint training bases to
integrate industry and education inspiring students'
enthusiasm for learning innovation and practical
skills. We also signed the Agreement on Joint Training of
Outstanding Engineers with Qingdao University of
Science and Technology to further advance indus-
try-education integration and expand talent develop-
ment channels cultivating high-quality professionals Signing ceremony of the Collaborative Innovation Centre for Rubber and Plastic Sealing Materials Applications
for the industry and driving high-quality industrial
development.
312024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Talent Incentives
SNS has established standardised performance management and clear career progression paths offering routes for management technical workshop and business roles to ensure employees
from different positions and with diverse expertise can find suitable growth opportunities. The Company has implemented the Compensation Management System and the Position and Level Evalua-
tion Guidelines to provide a basis for salary distribution internal job applications and promotions encouraging employees to unleash their potential. We evaluated employees' work performance
through regular performance evaluations and outstanding performers received salary adjustments and promotions. We have also implemented an across-the-board salary adjustment mecha-
nism to maintain competitive compensation. Furthermore we encourage employees to continuously enhance their skills by offering education and professional certification subsidies. The
subsidy amounts vary based on academic qualifications and certification levels. In this way we support employees in obtaining relevant professional qualifications or further education.SNS has established an equity incentive scheme to share the fruits of corporate development with key employees from both the Company and its subsidiaries linking corporate value with employ-
ee value and driving company growth.SNS’s 2024 Restricted Stock Incentive Plan
Principal senior sales
Senior executive Chief engineer Section chief
engineer
The Company successfully completed the
Deputy chief engineer vesting of its 2018 Restricted Stock Incentive
Senior technician
Plan in 2023 and launched the 2024 Restricted
Deputy director/director
Specialty deputy chief Stock Incentive Plan by the end of 2024. The Senior sales engineer
engineer Technician 2024 Plan covers 227 incentive participants
including selected senior management middle
Department deputy Chief technical officer and junior-level managers and key employees
manager/manager Senior worker from core teams with a total of 4.603 million
Lead engineer Sales engineer shares granted.Assistant department Intermediate worker
manager Review engineer
Junior worker
Department Verification engineer Sales representative
deputy
director/director Ordinary worker
Design engineer
Department Assistant salesDesigner Apprentice worker
supervisor representative
Managerial career Technical career Frontline workshop Business career
path path career path path
The career development path of SNS
322024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
2023 SNS Excellence Awards Ceremony Talent Training
SNS has established a comprehensive
employee training system governed by
On January 26 2024 SNS held its 2023 Annual Commendation Conference. Over 120 participants attended including policy documents such as the Employee
management personnel and exemplary employees from various divisions. Company executives presented honors to Training Management System and the
outstanding individuals teams and recipients of the Scientific & Technological Progress Award recognizing their excep- Personnel Competency & Training Control
tional performance throughout the past year. The ceremony aimed to inspire all staff to maintain collaborative dedica- Procedures. The Company has taken
tion and enterprising spirit in the new year and foster a positive work environment. multifaceted development approaches
including internal mentoring external
coursework and skills competitions to
provide structured learning and develop-
ment opportunities. The Company formu-
lates a training plan every year and
comprehensively determines the training
strategy based on the Company's develop-
ment employee needs and other factors.The training includes multiple areas such
as management system requirements job
expertise work practice norms and
production safety covering a complete
chain of roles from rank and file to senior
management. These efforts aim to foster
the mutual development of both employ-
ees and the Company.In addition the Company conducts
effectiveness evaluation work on wheth-
er the training has achieved the expected
goals. It provides a reference for the
optimization of follow-up training and
uses various methods such as exams
practical exercises interactive discus-
sions observations and questionnaires
to evaluate and prepare reports. In
2024 SNS and Sunny Seal optimised the
new employee orientation by imple-
menting biannual training sessions
Commendation conference for exemplary employees (first/second half-year) to improve the
relevance and effectiveness of new
employee orientation.
332024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
SNS "A Promising Start Boundless Future" New Employee
Orientation Activity
Corporate culture company history
Onboarding training Rules and regulations
Basic product knowledge In April 2024 the Company’s Manufacturing Division 1 successfully complet-
ed a four-month intensive training for new employees. A total of 43 employ-
ees participated in this training. For the first time new hires training has
been innovated on the basis of the traditional teacher-apprentice model
Improvement of management knowledge
Leadership training and launched a systematic and professional curriculum system covering 24
Skills enhancement course modules such as HSE system quality technology and machining.Unified training was conducted for general knowledge and operational
Job qualification training skills. It has laid a solid foundation for new employees to adapt to the
Professional training
Operational skills training working environment while providing strong support for building the
department's talent team.Further education
Comprehensive ability General skills training
training QES system training
Legal training
The training system of SNS
Employees of SNS Won the Top 20 in the Knowledge
Competition of the China Machinery Industry Federation
In October 2024 the China Machinery Industry Federation successfully
held the first "Standard-Driven Development Powering National New hires training at SNS
Progress" standardization knowledge competition. The purpose of this
event is to enhance the level of standardization in the machinery indus-
try and raise the awareness of standardization in the whole society. It
focuses on the core knowledge areas such as the National Standardiza- Key Performance
tion Development Outline the revision of the National standard system
international standardization machinery industry standardization and In 2024
enterprise standardization. SNS highly values this industry knowledge Offered 271 training projects for all employees with a total investment of RMB
competition and organises employees to participate. After fierce compe- 434900.tition two employees of the standardization group of the Company's Provided academic and qualification improvement support for 139 employees
Technical Department stood out and won the second and sixteenth with a total investment of RMB 334900.places respectively.
342024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Health and Safety
In strict compliance with the Law of the People's Republic of China on Work Safety The Company's safety production management system operates across multiple levels to ensure
the Law of the People's Republic of China on the Prevention and Control of Occupa- comprehensive and efficient implementation of management work. The Safety Production Manage-
tional Diseases the Production Safety Accident Emergency Plan Management ment Committee is responsible for enforcing national regulations establishing supervision systems
Measures and other relevant laws and regulations SNS continuously improves formulating safety rules conducting periodic safety reviews and investigating major incidents. The
the level of occupational health and safety management and creates a safe and Committee's Office handles daily safety operations including reviewing and updating safety regula-
reliable working environment for employees and contractors. tions promoting safety culture conducting regular inspections and analysis to identify improvements
and administering rewards/penalties based on safety performance. Each department appoints safety
officers responsible for implementing safety protocols organising departmental staff safety training
Safety Management System and regularly reporting potential hazards and remedy measures so as to ensure effective departmen-
tal safety management. Meanwhile the Company organises employees in safety management and
SNS has made continued efforts to establish and improve the production safety oversight by including safety production in employee representative meetings. It also encourages
management system. It has promoted the construction of a long-term produc- employees to supervise and report safety hazards and put forward suggestions for improvement so
tion safety mechanism and laid a solid foundation for setting a safety defense as to protect the safety rights and interests of employees and realise comprehensive coverage of
line. SNS has systematically developed occupational health and safety manage- safety management.ment procedures in strict compliance with the ISO 45001 Occupational Health
and Safety Management System Standard. The Company implements internal The Company has obtained the ISO 45001 Occupational Health and Safety Management System Certifi-
regulations including the Company-Wide Safety Production Responsibility System cation. Regular internal and external audits of the occupational health and safety management system
and the Safety Production Inspection System. It establishes a comprehensive safety are conducted to promptly identify and rectify non-compliances ensuring the system's effective opera-
management framework that clearly defines safety responsibilities at all levels tion. In 2024 all subsidiaries successfully achieved their annual health and safety targets demonstrat-
and conducts regular hazard identification. Detailed protocols have been estab- ing significant safety management results.lished for key areas including safety responsibility evaluation hazard investiga-
tion and remediation occupational disease prevention and emergency
response to ensure the achievement of all health and safety goals. 2024 Annual Goals
Goal Achievement
in Occupational SNS Sunny Seal UTEC Sun Seals NDIV
Status
Health and Safety
Occupational Health and Safety Production Incidence rates of
Management Committee serious injury and
above accidents fire 0 0 0 0 0 Within Target
accidents and Limits
Office of the Occupational Health and Safety occupational diseases
Production Management Committee
Rate of minor and
slight injury accidents ≤2.5 ≤7 ≤6 ≤6 ≤6.2 Within TargetLimits
per thousand people
Each Department
Rate of slight injury
≤1.3 ≤5 0 0 ≤6.8 Within Targetaccidents per Limits
thousand people
All Positions
Near-miss accidents ≤2 ≤2 ≤1 ≤1 ≤2 Within TargetLimits
Major near-miss Within Target0 0 0 0 0
Organisational structure for production safety accidents Limits
352024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
In addition we attached equal importance to the operational safety of contractors and
Key Performance
other suppliers. We formulated and implemented the Relevant Party HSE Management
System and signed HSE management agreements with long-term partners to clarify the
safety responsibilities and obligations of both parties. The Company requires external In 2024 a total of 4127 participants attended occupational health and safety
construction personnel to receive safety training and watch safety notification materials training accumulating 9454.30 training hours.before entering the site. In this way we ensured that they understand the potential
sources of hazards and safety precautions on the site. For contractors involved in
high-risk operations the Company strictly reviews the qualifications of operators
ensures that they are licensed and supervises on-site operations throughout the
process to prevent factors that may pose safety hazards.Safety Risk Management
SNS has established a dual prevention mechanism combining graded safety risk control
with hazard investigation and management. On one hand the Company conducts
annual comprehensive identification and assessment of hazards in all departments'
production activities products and equipment. On the other hand it implements
regular safety inspections including special inspections departmental self-checks
team-level inspections as well as daily and holiday checks to ensure continuous imple-
mentation of safety management measures. In 2024 the Company organised all depart-
ments to carry out hazard identification and evaluation work. This involved comprehen-
sively mapping out hazards present in various operational processes across depart-
ments followed by scientific classification using the LEC semi-quantitative assessment
method. A dynamic risk inventory was created and 14 unacceptable risks and 16 signifi-
cant environmental factors were identified. Based on these identification and rating
results corresponding control measures were developed to construct a comprehensive
risk protection network.Safety Culture Development
The Company prioritises enhancing employees' safety awareness and emergency
response capabilities and continuously advances occupational health and safety culture
as well as emergency preparedness. Comprehensive safety education is provided to all
new hires supplemented by regular internal safety training to ensure every employee
understands and complies with corporate safety protocols. Meanwhile the Company
regularly invites safety experts to conduct specialised lectures that disseminate occupa-
tional health knowledge and raise employees' safety consciousness. Through strength-
ened safety culture development the Company consistently elevates staff vigilance
against potential hazards thereby maintaining stable and reliably secure production
environments. Safety training organised by NDIV
362024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Emergency Response Drills Occupational Health Management
To enhance emergency response capabilities for unexpected incidents SNS has The Company has established and strictly enforced the Labour Protection Equipment Safety Manage-
developed and refined relevant policies including the Comprehensive Emergency ment System which defines distribution standards for protective gear based on job-specific risk
Response Plan and the Specialised Emergency Plan to improve response efficiency profiles. These standards strictly apply to the procurement and issuance of protective equipment. The
for various accident scenarios. The Company has established specialised Company regularly checks the proper use of personal protective equipment by frontline employees
response plans and emergency drills for production accidents such as fires on the site and makes timely adjustments and replenishments to ensure the gear is of reliable quality
mechanical injuries and falling object strikes. These measures strengthen and adequately provided.employees' emergency response capabilities and self-/mutual-rescue skills
ensuring swift and effective reactions during emergencies and protecting person- To safeguard employee health the Company continuously monitors and optimises hazardous work
nel safety. environments. In 2024 the Company and its holding subsidiaries engaged external third-party profes-
sional institutions to inspect the hazardous operating environment achieving a 100% compliance
rate. In addition the Company and its holding subsidiaries regularly organise occupational health
Key Performance examinations to prevent the occurrence of occupational diseases. In 2024 100% of workers in hazard-
ous positions passed their health screenings with zero reported cases of occupational diseases.In 2024 the Company conducted a total of 25 safety drills with a cumu-
lative participation of 1614 person-times. SNS Conducts Training on First Aid Knowledge and Skills of Automatic
External Defibrillator (AED)
Embodying its "Life First" philosophy and
implementing the work arrangements of
Wuhou District Health Bureau SNS
installed two AED units in November 2024
in the Company. The move aims to
enhance its ability to respond to health
and safety emergencies and strengthen
employees’ safety and security.The Company organised 10 employees to
participate in AED first aid knowledge and
skills training in November 2024 and
March 2025 respectively. All 20 trained
employees successfully passed both
theoretical and practical assessments
demonstrating full competency in operat-
ing AED equipment during emergencies
to provide timely and proper cardiac
arrest intervention.Safety drill
37Creating Harmoni-
ous Society with
Shared Success
SNS is committed to delivering high-quality products
and services to customers through scientific manage-
ment systems and cutting-edge technological R&D. We
actively promote the application of green and low-car-
bon technologies while incorporating ESG factors into
supplier management practices collaborating with
industry partners to advance sustainable development.Furthermore the Company diligently fulfils its social
responsibilities by contributing to the prosperity of local
communities and supporting the development of a
harmonious society.Material Topics Covered in this Chapter:
Product quality and safety
Technological innovation
Supplier management
Customer service and communication
Community welfare2024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Product Responsibility
Product Quality and Safety SNS
Quality Management System
SNS has established a scientific and standardised
quality management system in accordance with
authoritative domestic and international quality
management standards. By integrating the business
characteristics and production processes of SNS and
its subsidiary companies the Company has formu-
lated and implemented a series of management
procedural documents. The Company has estab-
lished a quality objective system structured around
core indicators such as product qualification rate ISO 9001 Quality API Spec Q1 Certification American Society of National Special
test failure rate on-time order delivery rate failure Management System Mechanical Engineers Equipment Production
rate quality cost attrition rate and audit compliance Certification (ASME) Certificate License
rate.The Company has established a clearly-defined Subsidiaries
quality management responsibility system with the
general managers of each subsidiary responsible for
quality management. The deputy general manager is
appointed as the management representative to
ensure the effective operation of the management
system. A dedicated quality assurance department
has been set up to promote and implement the
Company's quality objectives overseeing relevant
departments or personnel such as technical
procurement inspection and assembly to carry out
daily work in compliance with quality standards.As of the end of 2024 SNS has obtained ISO 9001 ISO 9001 Quality Management ISO 9001 Quality Management National Special Equipment API Certification
Quality Management System Certification API Spec System Certification System Certification Production Licence (NDIV)
Q1 Certification ASME (American Society of Mechan- (Sun Seals) (UTEC) (NDIV)
ical Engineers) Certification and holds the National
Special Equipment Production License. Overview of SNS’s Product and Quality Certification
382024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Quality Management Process
In order to achieve critical quality objectives the Company strictly implements the Inspection and Test Control Procedures and conducts real-time monitoring and control of critical parameters. A
substantial number of instruments measuring tools and testing equipment are deployed with company-level and department-level metrology personnel assigned to perform daily management
and periodic calibration. The Company also outsources testing services conducting uniform inspections of monitoring and measuring equipment each quarter based on calibration due dates. It
also performs four to five physical and chemical tests monthly to ensure instruments and equipment operate in optimal condition.With a focus on quality management throughout the entire product lifecycle the Company establishes internal operating standards and procedural documents for design and development
production testing assembly and delivery phases. Control points are clearly defined to mitigate quality risks at every stage. In 2024 SNS and Sunny Seal enhanced the refinement of quality
management processes optimizing quality control measures in raw materials metrology tools documentation and other areas to improve management efficiency.Production and Testing and Assembly and
Design stage
manufacturing stage inspection phase delivery phase
Design planning: The technical Production planning: Produc- Process inspection: Conduct Assembly control: Control
department is responsible for tion process planning includes inspections and tests during the assembly process to
design and development resource requirement process the production process to ensure that the assembly
planning defining design documentation and inspec- ensure that the products meet quality meets the require-
stages and control measures tion/testing requirements. the design and process ments.including design reviews Production control: Strict requirements. Product protection: Protect
verification and validation adherence to process Final inspection: After the the product before delivery
activities. documents and work instruc- production of the product is including packaging
Design input: Clear design tions to maintain controlled completed the final inspection handling storage etc. to
requirements are established operations. and testing will be carried out ensure that the product is
covering customer needs legal Labelling and traceability: to confirm that the product not damaged.and regulatory standards and Establish a product identifica- meets the receiving criteria. Post-delivery activities:
applicable standards. tion and traceability system to Control of nonconforming Provide necessary
Design output: Ensures design ensure the uniqueness and products: Labelling isolate and after-sales service including
outputs meet input require- traceability of products review substandard products product installation
ments including product throughout production. and take corrective measures. commissioning mainte-
specifications drawings and Preventive maintenance: Carry nance etc.process documentation. out preventive maintenance of
Design review and verification: production equipment to
Internal reviews and verifica- ensure the normal operation of
tion ensure designs comply the equipment.with stipulated requirements.Key points of full-process quality control flow
392024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Control stage Control stage
Raw materials control Control of Measuring Equipment
Detailed description Detailed description
Formulate a quality plan and conduct strict chemical and mechanical perfor- Through hierarchical management spare parts ledger management etc. the
mance tests on the raw materials of important products and parts. inspection cycle of equipment is rationally arranged to avoid repeated inspec-
For key supplied materials such as cemented carbide raw materials and tions.graphite on-site sampling inspections are conducted. Suppliers failing these A new inspection module has been added to the OA system to record detailed
inspections will have their supply suspended and be required to implement inspection information and electronic management of inspection certificates
corrective actions. Supply will only resume after the corrective measures pass which helps to accurately identify internal and external inspection require-
re-inspection and are verified as compliant. ments.Key control measures of SNS and Sunny Seal
In terms of product recalls the Company has established comprehensive management documents including the Non-Conforming Product Control Procedure and the Defective Product Traceability
and Recall System forming a complete product recall mechanism and process to safeguard customer rights and minimise potential risks to the greatest extent possible.Start and Defective Recording
Identification implemen- product and
tation handling prevention
The sales/after-sales department is For products determined to be The responsible department shall Records of the recall and handling
responsible for receiving and report- defective and must be recalled the formulate a handling plan for process will be completely kept
ing customer feedback on defective Quality Assurance Department is recalled products which will be including the cause of the recall
products in a timely manner responsible for formulating a defec- implemented after approval. The handling measures and results
The Quality Assurance Department tive product recall plan which will be Quality Assurance Department is Take preventive measures to prevent
organises relevant departments to implemented by the relevant responsible for supervising the similar problems from recurring to
analyse and evaluate the causes of departments after approval handling process of defective ensure customer satisfaction and
the feedback problems implement products product safety
improvement measures and
determine whether a recall is
required
Recall process
402024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Quality Culture Development
With the core goal of improving the level of quality management and the professionalism of employees SNS organises various activities every year to engage all employees in the construction of
quality and safety culture raise employees’ quality awareness and effectively improve the Company's quality management effectiveness. In 2024 SNS and its holding subsidiaries carried out
numerous specialised trainings on quality management system standards such as API SPEC Q1 internal auditors of the quality management system quality management methods standardised
operating specifications etc. and organised a series of “Quality Month” activities. With the help of knowledge competitions debating competitions sharing sessions and other forms mobilise the
enthusiasm of all staff to pay attention to quality and strengthen the standardised knowledge reserves and operational skills of employees.SNS Launched the "Quality Month" Knowledge Competition
During the "Quality Month" in September 2024 SNS and its subsidiaries organised various quality-related activities tailored to their respective operational characteristics.Outstanding performers were recognised with awards to motivate employees' enthusiasm for learning quality knowledge and foster a positive quality culture.SNS and Sunny Seal invited the Company's deputy general manager and quality director to serve as judges for the quality knowledge contest in which various departments actively
participated forming 12 teams with 36 representatives to compete. For the first time a debate format was introduced featuring intense discussions on topics such as "Shouldquality management focus more on rewards or punishments" and "Should enterprise production and operations prioritise quality improvement or cost control”
UTEC meticulously designed the competition format including mandatory questions quick-response questions interactive questions and risk-based questions comprehensively
assessing employees' understanding of quality management system standards and the company's quality management regulations.Sun Seals launched a "Quality Strengthening the Supply Chain" initiative randomly selecting six suppliers for on-site audits. Simultaneously it organised a series of themed
activities "High-Quality Development Stories: Spreading the Voice of the New Era" and selected the best department for the annual Quality Month activities.NDIV conducted activities such as quality suggestion campaigns and external training sessions encouraging employees to share their opinions and contribute to further quality
improvement.Sun Seals quality NDIV API Spec UTEC product quality
SNS’s knowledge competition SNS Quality debate competition
improvement activity selection Q1 Standard training inspection specification training
412024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Product Innovation and R&D The Company has established a scientific and reasonable evaluation system. In accordance
with management documents such as the Scientific Research Project Management System it
assesses the performance of all R&D teams to ensure the quality and efficiency of R&D work.R&D Innovation Mechanism Completed scientific research projects undergo internal evaluations and rewards with special
incentives granted for nationally authorised patents. Technical key personnel are also provid-
As one of the first batch of national-level specialized refined unique and innovative ed with equity incentives. The Company has also applied for national and industry-level
"Little Giant" enterprises selected by the Ministry of Industry and Information Technolo- scientific and technological progress awards for outstanding innovative achievements and
gy SNS has consistently invested in independent technological innovation. The Company nominates individuals who have led projects and demonstrated exceptional performance for
possesses multiple innovation platforms including a national-level enterprise technology provincial municipal and district-level honors such as "Artisan" "Model Worker" and
centre a national postdoctoral research workstation a provincial-level mechanical seal "Talent". These efforts enhance the Company's influence and industry standing.engineering technology research centre a provincial high-performance mechanical seal
technology engineering research center and a municipal-level academician (expert)
innovation workstation. With annual R&D investment accounting for approximately 5% Zhang Chening Awarded the Honorary Title of "Sichuan Artisan"
of operating revenue the Company continuously drives technological innovation and
product upgrading.In January 2024 Chening Zhang Deputy Chief Engineer of the Company was
The Company has established an Enterprise Technology Centre comprising professional
awarded the honorary title of "Sichuan Artisan." This title jointly selected by the
technical personnel from all subsidiaries as members of the Technical Committee. The
committee is responsible for evaluating the feasibility of proposed projects assisting in Sichuan Provincial Federation of Trade Unions the Department of Economy and
solving key technical problems during execution and participating in final acceptance Information Technology and the Department of Human Resources and Social
evaluations. Under the committee's coordination multiple specialised R&D teams have Security aims to recognise outstanding skilled talents with exceptional crafts-
manship significant contributions and industry leadership. Chening Zhang
been formed covering research areas such as high-parameter dry gas seals high-end
mechanical seals seal auxiliary systems rotary jet pumps intelligent seal monitoring and stood out among candidates from 21 cities and prefectures and 43 industries
across the province becoming one of the representative figures of the 2024
health management systems and the friction wear and lubrication mechanisms of
"Sichuan Artisan" award thanks to his outstanding achievements in the field of
sealing faces. These teams focus on both fundamental theories and product applications
dry gas seals.continuously expanding the boundaries of the Company's innovation domains.The Company has implemented a comprehensive project R&D management system that
ensures quality control throughout the entire R&D process including project initiation
reviews progress tracking during execution and final acceptance evaluations. For both
project initiation and acceptance phases all members of the Technical Committee partic-
ipate in the review process. This ensures thorough feasibility analysis during project
establishment and substantive validation of research outcomes upon project comple-
tion.Key Performance
In 2024 the Company had a total of 250 R&D personnel. The R&D invest-
ment reached RMB 75.772 million representing 4.84% of the operating
revenue.Chening Zhang was awarded the honorary title of "Sichuan Artisan"
422024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Green Technology Achievements
SNS has fully leveraged its leadership in technological innovation to provide robust support for low-carbon transformation in key industries such as industrial manufacturing and energy
& chemicals through its independently developed green and low-carbon technology solutions. On the one hand the Company is committed to product innovation reducing energy
consumption and greenhouse gas emissions during mechanical seal operation through material improvements system enhancements and performance optimization. On the other
hand the Company actively expands product applications in clean energy sectors like CCUS (carbon capture utilization and storage) and nuclear power supporting the green transition
of the energy industry.Diamond-coated seals Significantly Improve Wear Resistance and Service Life SNS Provides Key Sealing Systems for CCUS
Projects
SNS developed a new generation of sealing face materials creating diamond-coated seal products. SNS strategically positions itself in future energy industries such
These products are primarily designed for harsh conditions involving particulate impurities dry friction as CCUS actively participate in the green and low-carbon
high temperatures and gas-liquid phase alternation significantly reducing friction coefficients and transformation and upgrading of traditional industries and help
shaft power consumption. The diamond coating enhances the sealing face's pressure resistance wear customers move towards a clean transformation process.reduction and corrosion resistance while markedly improving seal reliability and lifespan. Sinopec Qilu Petrochemical's million-tonne CCUS project: In
Through paired materials selection and coating process improvements the diamond coating technolo- 2022 the Company participated in the million-tonne CCUS
gy significantly improves the pressure resistance and wear performance of sealing faces extending the project of Qilu Petrochemical and undertook the dry gas seal and
operational life of seal products by over 100%. In 2024 SNS established a Coating Process Research control system for the key unit of the project. This project
Laboratory dedicated to the prototyping and performance testing of diamond coatings and developed represents China's first million-tonne-scale carbon dioxide
diamond-coated products that meet stringent performance requirements. recycling initiative. Upon completion it has become one of the
nation's large-scale CCUS full-industry-chain demonstration
bases providing practical application cases for promoting the
scaled development of CCUS in China. The project holds signifi-
Seal Intelligent Monitoring System (SIMS) Boosts Efficiency with Digital Intelligence cant importance for effectively enhancing China's carbon
emission reduction capabilities and establishing an "artificial
carbon cycle" model.Aligned with the "green low-carbon energy-saving and smart" development goals of the petrochemi-
cal industry SNS has led the transformation with digital and intelligent technologies carried out the
whole life cycle health management of seals and developed and launched the seal intelligent monitor-
ing system (SIMS). SIMS is an online monitoring system designed for compressor dry gas seals as well
as pump and reactor mechanical seals. Integrating artificial intelligence with expert knowledge it
enables real-time assessment of seal health status early detection of potential operational issues and
prediction of performance degradation and remaining service life thereby achieving full lifecycle health
management for sealing systems. The intelligent operation and maintenance capabilities enabled by CHN Energy Taizhou Company’s Carbon Capture Project: In 2023
SIMS empower users to implement predictive management for critical equipment components the 500000-tonne-per-year carbon capture and integrated
effectively preventing unexpected failures and mitigating operational risks to production safety. utilization project at Taizhou Power Generation of CHN Energy
In 2024 two SIMS-based research projects—"Intelligent Fault Diagnosis and Big Data Analysis for which was equipped with the Company's key unit dry gas seals
Compressors and Dry Gas Seals" and "Online Condition Monitoring and Early Warning System for and dry gas seal systems successfully started up and was
High-Pressure Dry Gas Seals"—successfully passed expert acceptance reviews by authoritative organi- officially put into production on the first attempt. The project will
sations including PipeChina and Sinopec. SIMS has been applied to many enterprises such as Sinopec achieve an annual CO? capture capacity of 500000 metric
Shanghai Petrochemical Sinopec Jiujiang Company Sinopec Yangzi Petrochemical Yanshan tonnes serving as an exemplary model for the energy industry in
Petrochemical etc. to provide a guarantee for the safe and stable operation of equipment. realizing China's goals to peak carbon emission and achieve
carbon neutrality.
432024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Industry Exchanges and Mutual Advancement
SNS attaches great importance to industry-universi- March May August
ty-research collaboration with domestic universities.The company has established cooperative R&D
relationships with institutions including Tsinghua Supported the organisation of the Participated in the "15th Participated in the "Third
University Sichuan University and Southwest "Petrochemical Centrifugal Pump Shaft Petrochemical Equipment Annual Meeting of Refining
Jiaotong University and has jointly applied for Diameter Series Standards Seminar and Maintenance and Repair and Chemical Equipment
General Technical Specification Review Technology Exchange Management Technology"
research platforms such as the Sichuan Provincial
Meeting for Centrifugal Pump Procure- Conference" where it delivered a to share experience in the
Mechanical Seal Engineering Technology Research ment" hosted by Sinopec Machinery keynote presentation titled application of dry gas seal
Centre and the Chengdu Academician (Expert) Innova- Technology Centre Station facilitating "Self-Adaptive Deformation technology for xylene
tion Workstation. Leveraging its national-level in-depth discussions on the optimization Mechanical Seal Solutions for tower bottom pumps.postdoctoral research workstation the company and enhancement of standards for High-Temperature and
collaborates with universities to jointly cultivate centrifugal pump shaft diameter series and High-Pressure Forced Circulation
postdoctoral talent providing technological and talent related specifications. Hot Water Pumps".support for its development in the field of fluid equip-
ment. By establishing university-enterprise collabora- October September September
tion mechanisms the Company shares complementa-
ry advantages with academic institutions to accelerate
the transformation of scientific and technological Participated in the EPEC Industrial Participated in the Supported the organisation of
achievements promote precise alignment of indus- Products Exhibition themed Wuhan International the 2024 National Petroleum
try-education resources and support R&D in "nation- "Innovation·Green· Digital Papermaking Technology and Chemical Mixing Confer-
al-critical equipment" and key components. Intelligence·Empowerment" to Expo and demonstrated ence and exchanged mixing
showcase the Company's latest innovative achievements and sealing technologies with
achievements in scientific and in the field of sealing universities engineering
Meanwhile the Company emphasizes knowl-
technological innovation and technology. companies petrochemical
edge-sharing with domestic and global peers industrial integration. companies etc.upstream and downstream partners and industry
organisations to jointly advance innovation. Through
hosting/participating in industry events the Company
has conducted extensive technical exchanges on
standards application expertise and cutting-edge November November December
trends. By the end of 2024 the Company has partici-
pated in the drafting and review of more than 40
national and industry standards. It is the lead drafting Participated in ADIPEC Participated in the 12th Assisted in the organisation of the 7th
entity of the industry standard JB/T 11289 Technical 2024 where its China (Shanghai) Internation- National Fluid Sealing Academic Conference
Specification for Dry Gas Seal and JB/T 13407-2018 Dry exhibition garnered al Fluid Machinery Exhibition and the Second General Meeting of the
Gas Seal Control Systems for Turbo-machinery. Based on high recognition from and introduced the Company's Mechanical Sealing Professional Branch of
the industry goals of reducing sealing energy global industry leaders deep technical research and China Hydraulic and Pneumatic Seals
consumption and leaked emissions high standards including ADNOC Saudi development strength Industry Association and made an
and strict requirements are put forward for the Aramco and Elliot advanced and reliable academic report on the Research on the
Group. manufacturing capabilities Performance of Modified Herringbone
leakage rate of seals. In 2024 the Company participat- and rich project experience Mechanical Seals with Reverse Pumping Effect
ed in the drafting of the national standard GB/T comprehensively. under Different Lubrication States.
6556-2024 Type Main dimension Material and Marking
of Mechanical Seals thereby promoting the standard-
ization of industry practices. List of Industry Exchange Activities Participated by SNS in 2024
442024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Customer Service Quality
SNS adheres to the philosophy of "Technology-Driven Market Leadership Service-Backed For on-site services such as product installation commissioning and maintenance the
Customer Loyalty Quality-Defined Brand Excellence" providing customers with Company collects customer opinions through two methods: service staff work orders and
high-quality products and efficient problem-solving solutions. The Company has estab- sales staff after-sales return visits to ensure that the quality of service activities reaches the
lished a series of documents including the Quality Feedback Handling System and the level of customer satisfaction. During the execution of on-site services service personnel
Service Activity Control Procedures which clearly define the feedback and handling shall strictly adhere to operational documents and customer requirements while complying
processes for quality issues and standardise the work procedures of service personnel. with the customer's safety and environmental management regulations. Upon service
completion the service personnel must promptly document and generate the Service Activity
For product-related feedback received the Company has implemented categorised Work Order have the customer complete the "Customer Feedback" section and submit the
management based on multiple dimensions including nature of issues (improvement work order to the Company for archiving upon return. The sales staff will further conduct
suggestions or product quality defects) and feedback source (customer feedback or telephone return visits to understand and collect customer feedback on whether the service
internal feedback). A quality feedback handling mechanism has been established that needs have been resolved the operating status of the product after the service the skills of
prioritises resolving product quality issues and customer suggestions while utilizing the service personnel and the attitude of the service personnel. They will regularly
quality feedback cards as tools for root cause analysis subsequent improvement summarise and analyse customer suggestions to continuously improve the service level.monitoring and documentation thereby ensuring the fulfillment of quality commit-
ments to customers. In addition the Company distributes a Customer Satisfaction Survey Form to customers
annually and evaluates the quality of customer service from five aspects: product perfor-
mance product appearance delivery time after-sales service and product cost-effective-
Class A Customer Feedback Record Class B Customer Feedback Record ness. By combining the feedback records the Company analyses the satisfaction data to
Card Card form a Customer Satisfaction Analysis Report and develops strategies to improve customer
For quality issues caused by the For quality issues not attributable satisfaction. In 2024 the Company continued to receive high recognition from customers
Company or customer improvement to the Company briefly document and industry partners for its professional reliable and timely technical services. The
proposals a detailed description of the customer's feedback and the customer satisfaction ratings for SNS and its various subsidiaries all exceeded 95%.failure details or proposals root cause of the problem
must be provided to for statistical recording
facilitate root cause purposes.analysis and corrective
actions.Class A Internal Feedback Class B Internal Feedback 98.67% 98.66% 96.90% 97.20%
Record Card Record Card
For quality issues or For non-major or
improvement suggestions human-induced deviations
raised internally (including product during product realization the SNS Sunny Seal Sun Seals UTEC NDIV
defects design enhancements and responsible internal department
management concerns) detailed must be clearly identified with
documentation of non-conformance regular statistical tracking imple- SNS 2024 customer satisfaction score
details is required to facilitate correc- mented.tive and preventive actions.Classification management of quality feedback card of SNS
452024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Sustainable Supply Chains
Supplier Management
SNS places great emphasis on the stability and reliability of its supply chain. It has established Meanwhile the Company focuses on mutual promotion and joint growth with suppli-
a comprehensive supplier management system and continuously optimises the full life cycle ers. SNS and Sunny Seal organise on-site technical exchanges and training sessions for
management of suppliers. The Company has established and implemented internal regula- suppliers irregularly every year and engage them with in-depth communication
tions such as the Procurement Control Procedure and the Supplier Management System. It exercis- regarding the working principles performance features and fault diagnosis of
es strict control over every stage in the process from entry to evaluation and exit to regulate products to promote technological improvement. In 2024 they held 26 technical
supplier behavior and effectively mitigate supply chain risks. exchange sessions with suppliers such as Chongqing Yokogawa Electric Instrument Co.Ltd. and SGL Carbon Special Graphite (Shanghai) Co. Ltd. on topics related to techno-
logical and quality enhancement. UTEC provides technical training for suppliers with
The Company collects qualification information of suppliers through relatively lower technical levels covering production processes quality control
various channels (including quality management systems occupational methods and new product development technologies. By dispatching technical
health and safety management systems product certifications etc.). A experts and designing specialised training courses it helps suppliers comprehensively
dedicated supplier evaluation team conducts internal reviews and enhance their production and management levels.assessment scoring. Suppliers who pass the evaluation are included in
the List of Qualified Suppliers.The Company establishes scoring criteria from multiple dimensions Responsible Procurement
such as production processes technical capabilities and product
testing. It regularly conducts supplier evaluations and updates the
In supplier management the Company also incorporates ESG factors. We not only
Supplier Evaluation Record Form on a routine basis. Based on the scoring
focus on basic compliance in quality business ethics environment health and safety
results suppliers are categorised into four levels: A B C and D.during the supplier selection and evaluation processes but also sets clear environmen-
Suppliers rated as Level D are deemed unqualified and have their tal and social responsibility requirements during cooperation. These are specified in
qualified supplier status revoked. Their supply of goods is suspended the form of contract agreements terms and commitment letters defining the suppli-
and they are required to promptly implement corrective actions.ers' safety and integrity responsibilities.In 2024 SNS and its subsidiaries signed environmental and safety responsibility
Annual evaluations of suppliers are conducted. For unqualified suppli- documents with all on-site operation contractors such as the HSE Safety Production
ers who fail to complete corrective actions in a timely manner and those Agreement and the Safety Health and Environmental Commitment Letter. They also
meeting other disqualification criteria cooperation is terminated. provided specialised safety training with a coverage rate of 100%.Life cycle supplier management process
46
Access Tiered Management Exit2024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Community Contribution
While ensuring its own business development and creating economic value SNS also The CPC General Branch of SNS Carries Out a Donation and
gives back to society. It collaborates closely with local communities participates in Support Visit to Dacao Township Central School in Puge County
various volunteer and charity activities supports rural revitalisation and social public
welfare projects and contributes to the building of a beautiful and harmonious society.In 2024 the Company implemented the "Thousand Enterprises Helping Thousand In November 2023 the Party General Branch of SNS visited Dacao Township
Villages" targeted poverty alleviation initiative in Sichuan Province and provided tailored Central School in Puge County to carry out a support and donation activity. The
assistance to Ganluo County via consumption-driven aid programs to bolster local team donated educational supplies to the school including picture books
agriculture. percussion practice instruments cartoon toys and watercolour pens. They alsoorganised a fun class themed “The Development of Transport – High-Speed Railand Aeroplanes” for pupils in Grade 1 and Grade 2. Additionally they joined the
SNS Implements Targeted Assistance Initiatives in Ganluo County school’s Niuniu Choir in performing the song Daylily Flower together.In 2024 the Company dutifully executed the "Thousand Enterprises Helping
Thousand Villages" targeted poverty alleviation program in Sichuan Province
delivering needs-based interventions for Ganluo County. With the form of
consumption-driven aid programs the Company purchased over RMB400000
worth of poverty alleviation agro-products which promoted the growth of local
agricultural sales revenue.Aerial photo of Ganluo County SNS provided support and assistance to the Dacao Township Central School
472024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
ESG Performance Indicators
Operation performance Environmental Performance
Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022
Environmental RMB
Total revenue RMB 156652.37 136935.98 121468.35 130.68 97.66 73.45
10000 protection input 10000
Economic
performance Net profit attributable to Environment Occurrence of
shareholders of the listed RMB times 0 0 039245.44 34667.55 30928.78 environmental penalties
company 10000
management
Amount of environmen- RMB
tal penalties 10000 0 0 0
Total water withdrawal ton 76673 72489 50507
Governance Performance
Total water consumption ton 76673 72489 50507
Indicator Unit 2024 2023 2022
Water
withdrawal Water consumption ton/RMB
Number of Business ethics
and intensity
48.9552.9441.58
million
and anti-corruption times 6 5 5
training consumption
Recycled water
ton 15153.59 14432.35 14409.45
Percentage of employees consumption
Business
signing the Integrity % 100 100 100
ethics
Commitment Letter Percentage of recycled % 19.76 19.91 28.53
water use
Coverage rate of business
ethics training (suppliers)3 % 100 100 100 Emissions of waste gas pollutants
NOx ton 0.002 0.002 0.002
Waste gas
management
Non-methane hydrocar-
bon (NMHC) ton 0.157 0.083 0.170
3The statistical scope includes the number of suppliers for whom the Company has carried out
publicity and implementation activities through the Procurement Integrit Agreement.Particulate matter (PM) ton 0 0.014 0
482024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022
Wastewater discharge
Total waste discharged ton 622.69 535.80 492.03
Industrial wastewater cubic
24608.0024789.4718705.89
discharge Total waste discharge ton/RMBmetres 0.40 0.39 0.41
intensity million
Domestic wastewater cubic
35143.9934845.5523605.74
discharge metres Non-hazardous waste ton 108 60 51
recycled/recycled4
Emissions of wastewater pollutants
Wastewater Direct energy consumption
management
Ammonia nitrogen
ton 0.984 0.149 0.067
(NH3-N) tons ofTotal direct energy
standard 88.33 92.15 81.34
consumption
Chemical oxygen coal
ton 4.689 0.551 0.391
demand (COD)
Gasoline litre 38546.80 39967.18 33458.00
Total phosphorus (TP) ton 0.006 0.002 0.004
Diesel fuel litre 3172 2057 1845
Suspend solids ton 0.030 0.040 0.020
cubic
Natural gas 24743 30328 28831
Waste generation and disposal metresEnergy
Consumption5
Liquefied petroleum
Total emissions of kg 7069.30 4916.00 3839.00
ton 82.94 76.07 69.38 gas
hazardous wastes
Waste Direct energy kWh/RMB Hazardous waste ton/RMB 458.95 547.73 545.08
management 0.05 0.06 0.06 consumption intensity millionintensity million
and circular
economy Total emissions of Indirect energy consumption
ton 539.75 459.73 422.65
non-hazardous wastes
Total indirect energy
kWh 7527471.74 6779950.39 6319701.03
Non-hazardous ton/RMB consumption
0.350.340.35
waste intensity million
Purchased electricity kWh 7527471.74 6779950.39 6319701.03
4The main statistical object is the recycled iron filings. Incl: renewable kWh 499900 548700 191020
electricity
5The coefficient for converting into standard coal used refers to the General Rules for Calculation of
Comprehensive Energy Consumption (GB/T2589-2020).
492024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022
Proportion of Number of flexible
person 85 101 43
renewable energy use % 6.64 8.09 3.02 employees
in total electricity use
Proportion of full-time
Indirect energy kWh/RMB % 95.20 93.57 96.98
4805 4951 5203 employeesconsumption intensity million
Proportion of part-time
tons of carbon % 0 0 0
Scope 1 total employees
dioxide 161.22 166.86 146.55
emissions
equivalent
Employee gender structure
tons of carbon
Scope 2 total
GHG dioxide 4038.97 3637.83 3391.05 Number of male emissions person 1298 1129 1067
Emissions6 equivalent employees
tons of carbon
Scope 1+2 total Number of female
dioxide 4200.19 3804.69 3537.60 person 388 341 314
emissions employees
equivalent
tons of CO2 Proportion of
Scope 1+2 emission % 76.99 76.80 77.26
equivalent / 2.68 2.78 2.91 male employees
intensity
RMB million
Proportion of female
%23.0123.2022.74
employees
Social Performance
Employee age structure
Indicator Unit 2024 2023 2022
Number of employees
person 488 390 325
under 30 years old
Number of employees person 1771 1571 1424
Number of employees
between 30 and 50 person 994 932 908
Diversity & Type and structure of employees years old
equal
employment7 Number of full-time Number of employees
person 1686 1470 1381 person 204 148 148employees over 50 years old
Number of part-time Proportion of employees
person 0 0 0 % 28.94 26.53 23.53
employees aged below 30
6Direct emissions (Scope 1) refer to greenhouse gas emissions generated from the consumption of Proportion of % 58.96 63.40 65.75
natural gas diesel gasoline and similar fuels. Indirect emissions (Scope 2) refer to greenhouse gas employees aged 30-50
emissions resulting from the consumption of externally purchased electricity and other energy sources.The selection of greenhouse gas emission factors is based on technical documents including the 2006 Proportion of
IPCC Guidelines for National Greenhouse Gas Inventories (2019 revised edition) and the Announcement on employees aged % 12.10 10.07 10.72
the Release of China’s 2021 CO? Emission Factors for Electricity issued by the Ministry of Ecology and above 50
Environment and the National Bureau of Statistics which specifies the 2021 national grid average
emission factor of 0.5568 kgCO?/kWh.
7The data statistical scope in 2024 covers Sinoseal Holding Co. Ltd. and all its holding subsidiaries
including KS GmbH.
502024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022
Employee turnover Number of employees person 1602 1470 1381
trained
Employee turnover
person 62 80 79 Employee training
headcount
coverage rate % 100 100 100
Employee turnover rate % 3.68 5.44 5.72
Safety production accidents
Employee benefits
Number of work-related
person 0 0 1
fatalities
Social insurance
%100100100
coverage rate
Work-related fatality
%0.000.000.07
Employee benefits rate
%100100100
Employee coverage rate
rights and Lost workdays due to day 133.68 221 34
benefits The invested amount in work injury
work-related injury
RMB 729904.53 590257.02 398486.54
insurance and work Lost Time Injury
safety liability insurance Frequency Rate (LTIFR) / 2.54 2.55 2.11
of employees9
The coverage rate of
work-related injury
%100100100
Occupational Number of work-related insurance and work times 9 8 6
safety liability insurance health & safety8
injuries
Employees total
Employee training system hour 3542000 3142000 2848000
working hours
Total investment in
RMB 434911.12 875887.21 1506257.28 Fatality rate
employee training % 0 0 0.35（FAR）10
Number of employee
times 271 260 242 Prevention and treatment of occupational disease
Employee training
training and
Number of employees Number of occupa-
development person 0 0 0
provided with academic tional diseases
person 139 129 87
or professional
qualification support The compliance rate of
the harmful working
%100100100
Invested amount in environment inspected
providing employee with by external third parties
RMB 334915.78 567066.15 521522.81
academic or professional
qualification support The qualification rate of
occupational health
8The statistical scope of data in % 100 100 1002024 covers SNS and all its holding subsidiaries including KS GmbH. check-ups for employees
in hazardous positions
9The Lost Time Injury Frequency Rate (LTIFR) of employees = (The number of lost time injuries / Total
working hours) × 1000000
10The Fatality Accident Rate (FAR) = (The number of fatalities / Total working hours) × 1000000
512024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022
Occupational health and safety training Number of R&D person 250 223 208
personnel
The total number of
safety training person-times 4127 / / Patent-related performance
participants11
Number of patent
Case 33 16 42
Total training hours for applications
hour 9454.3 / /
employees
Number of patents
Case 19 25 17
Number of safety drills times 25 25 12 granted
Number of participants Valid patents Case 183 171 151
in safety emergency person-times 1614 1620 984
drills
Performance related to invention patents
Supplier type
Number of
invention patent Case 12 7 19
Domestic suppliers number 1312 1392 1295 applications
Number of
Overseas suppliers number 23 23 33 invention Case 7 4 4
patents granted
Supplier evaluation
Supplier Valid invention Case 47 39 35
management patents
Number of suppliers for
which on-site assess- number 126 124 63 Cybersecurity incidents
ments were conducted Cybersecurity
and data
Occurrence of data
Number of suppliers for number security times 0 0 0security incidents
which off-site 511 466 514
assessment were
conducted Community welfare
Social
Innovation and R&D management contribution Investments in rural RMB 10000 40.33 0 0
revitalisation
Technological R&D Investment RMB 10000 7577.20 7474.09 6144.23
innovation
Proportion of
%4.845.465.06
R&D investment
11The statistical scope of the data in 2023 and 2022 differs from that in 2024 so the data has not been
disclosed.Note: Unless specified the statistical scope of data above covers SNS and its holding subsidiaries
(KS GmbH excluded).
522024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Indicator Index Table
Article 36
Self-Regulatory Supervision Guidelines for Listed Companies Water resource utilization
Resource Utilization
No. 17 - Sustainable Development Reporting (Trial) by Shenzhen
Report section Circular economy Article 37Stock Exchange
Pollutant emissions Article 30
Issue Article Emissions and Waste
Management
Waste management Article 31
About the Report /
Ecological Protectiont Ecosystem and biodiversity protection Article 32
Introduction
Management Ensuring Employee Rights and Development
Message /
Basic Rights and
Interests Employees Article 50About SNS /
Career Development Employees Article 50ESG Management Stakeholder communication Article 53
Health and Safety Employees Article 50
Building a Robust Operation Foundation
Corporate Creating Harmonious Society with Shared Success
Governance /
Innovation-driven development Article 42
Business Ethics Anti-commercial bribery and anti-corruption Article 55
Product Responsibility
Compliance and Risk
/ Product and service safety and quality
Article 47
Management
Intellectual Property Sustainable Supply
Chains Supply chain security
Article 45
Innovation-driven development Article 42
Protection
Cybersecurity and Data security and customer privacy protection Article 48 Rural revitalization Article 39
Information Security Community
Contribution
Practising Green and Low-carbon Actions Social contribution Article 40
Environmental
Environmental compliance management Article 33 Appendix
Management System
Article 21 Article 22 ESG Performance /
Indicators
Article 23 Article 24
Tackling climate change
Energy and Carbon Article 27 Article 28 Indicator Index Table /
Management Article 34
Energy utilization Article 35 Reader Feedback /
532024 Environmental Social Build a Robust Practising Green Ensuring Employee Rights Creating Harmonious Society
Introduction Appendix
and Governance Report Operation Foundation and Low-carbon Actions and Development with Shared Success
Reader Feedback
Thank you for reading the 2024 SNS Environmental Social and Corporate Governance (ESG) 1. What is your overall assessment of the entire Report
Report. To provide you and other stakeholders with more valuable information and to
enhance the ESG management capabilities and standards of SNS we sincerely invite you
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2. How do you rate the clarity accuracy and completeness of the information data and
Address: No. 8 Wuke West Fourth Road Chengdu City Sichuan Province indicators disclosed in the Report
Postcode: 610045
Telephone: 028-85542909 Excellent Good Average Poor
E-mail: ir@sns-china.com
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