Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

About This Report 03 01 About DUPT Enhancement of Returns to 24Shareholders Establishing Rigorous

Company Profile 07 06 Disciplines through Safety

Improvement of Risk Management 25

Message from 05 Management and Reinforcing Industrial Layout 07

Anti-Commercial Bribery and 28 Well-Being through Health

the Chairman Corporate Culture 08 Anti-Corruption Protection

Development Milestones 09 Anti-Unfair Competition 30

Management Fortification of Safety Defense Lines 91

Afterword to the 117 Certifications and Awards 11 Coordination of Safety Strategy 91

Report Annual Performance Highlights 11

04 Advancing Craftsmanship

Enhancement of Risk Control 92

Key Performance Form 117 through Environmental Implementation of Protection 95

02 Sustainable Development Protection and Empowering Measures Indexes 124 Governance Production with Green Establishment of Safety Goals 98

Feedback 126

Response to SDGs 13 Intelligence Support for Occupational Health 99

Philosophy of Sustainable 14 Response to Climate Change 33

Development

Environmental Compliance 37

Governance Framework 15 Management Fostering Shared Growth

for Sustainable Development

Recycling of Resource 51 07 through Employee

I dentification of Sustainable 15 Development and Contributing

Development Risk Ecological and Environmental 57 Warmth to Society through

Protection Talent Engagement

Deepening of Sustainable 15

Development Practices

Protection of Employees' Rights 103

Communication with Stakeholders 16 05 Reshaping Industrial Ecosystem and Intereststhrough Resilient Supply Chains

Management of Material Topics 17 Practice of Social Welfare 112and Delivering Quality

Excellence through Continuous Contribution to Rural Revitalization 114

03 Solidifying Foundation Innovationsthrough Sound Governance

and Ensuring Sustainability Enhancement of Innovation Engine 61

through Compliant Operations Consolidation of Product Quality 71

Consolidation of Governance System 21 Protection of Customer' Rights and 77

Interests

Optimization of Compensation 22

Management Protection of Data Privacy 79

Advancement of Investor Relations 23 Co-Building of Responsible 83

Management Supply Chain

PAGE PAGE

01 02Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

About This Report

Introduction Data Source

This is the inaugural Environmental Social and Governance (ESG) Report (the "Report") of Dezhou United Petroleum All information and data in this report are sourced from the Company's actual operational data publicly available

Technology Corp. ("the Company") aiming at providing stakeholders with a complete disclosure of the Company's ESG government data annual financial statements relevant internal statistical reports and third-party survey questionnaires

practice and performance in 2025 and responding to ESG topics of critical concern to stakeholders. The Board pledges to etc. Unless otherwise specified all amounts in the Report are expressed in RMB. For any discrepancy between the financial

prudently oversee the contents of this report ensuring its absence of false records or misleading representations and data in the Report and that in the Company's Annual Report the latter shall prevail.assuming responsibility for its truthfulness accuracy and completeness.For any discrepancy between the Chinese version

and the English version the Chinese version shall prevail.Appellation Description

Reporting Scope

Company Name Short Name

The Report covers Dezhou United Petroleum Technology Corp. and its subsidiaries. Unless otherwise stated the scope of Dezhou United Petroleum Technology Corp. DUPT the Company We

the Report is consistent with that of the Company's Annual Report.Xinjiang DUPT Machinery Co. Ltd. Xinjiang DUPT

Reporting Period Qingdao DUPT Energy Technology Co. Ltd. Qingdao DUPT

This report covers the period from January 1 2025 to December 31 2025 (the "Reporting Period"). To enhance the continuity Lianhe Petroleum Technology Service Ltd. Russian subsidiary

and comparability of the Report certain disclosures have been extended appropriately to include data from preceding and

subsequent years. IAE International Inc. IAE International U.S. Subsidiary

Preparation Basis Access to this Report

Shenzhen Stock Exchange Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability

Report (For Trial Implementation) This report can be accessed and downloaded from the websites of the Company (http://www.dupm.cn) the Shenzhen Stock

Exchange (http://www.szse.cn) or the Cninfo platform (http://www.cninfo.com.cn).Shenzhen Stock Exchange Self-Regulatory Guidelines No. 3 for Listed Companies on the Shenzhen Stock Exchange - Preparation

of Sustainability Reports (Revised in 2026)

Ministry of Finance of the People's Republic of China Guide to Application of China Corporate Sustainability Disclosure Standards

- Basic Standards (for Trial Implementation) Reader Feedback

Global Reporting Initiative Sustainability Reporting Standards (GRI Standards 2021)

To further enhance the quality of our ESG information disclosure improve our ESG management practices and strengthen

China Enterprise Reform and Development Society Guide to Corporate Sustainability Reporting in China (CASS-ESG 6.0)

recognition of our value in the capital markets we sincerely invite readers to share your comments and suggestions (see

China National Standardization Administration Committee (CNSA) Guidelines on Social Responsibility (GB/T 36000-2015) the "Feedback Form" for details). Please kindly send your feedback to the Company's email address (limingxia@dupt.cn).Task Force on Climate-related Financial Disclosures (TCFD) Recommendations

United Nations Sustainable Development Goals (SDGs)

Sustainability Accounting Standards Board Standards (SASB Standards)

PAGE PAGE

03 04Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Message from the Chairman

In 2025 amidst a complex external environment and Social (S): Empowering Shared Growth through the Fulfillment of Social Responsibilities

numerous industry challenges Dezhou United Petroleum

Technology Co. Ltd. upheld the values of being "custom- We uphold a striver-oriented philosophy and regard employees as our core strength. We strive to protect employees' rights

er-centered and striver-oriented" embraced the mission and interests highly value the rights and dignity of every employee and advocate an open and transparent management

to "provide first-class products and services to the oil and model that enables employees to fully realize their potentials and grow with us in a fair harmonious and respectful working

gas development industry" and integrated customer re- environment.quirements throughout the value chain. In addition we We also practice the philosophy of "taking from society and giving back to society". In 2025 we supported regional

integrated the ESG philosophy into the core of our strategy development through diversified public welfare initiatives. For cultural and educational development we donated RMB

drove green transformation through innovation led sus- 500000 to the Library of Dezhou City to support the construction of a digital reading platform. In ecological and

tainable development through responsibility fulfillment environmental protection we donated more than 500 native tree species to Dezhou City to improve the urban microclimate.and achieved remarkable results.In addition we actively organized employees to participate in voluntary blood donation. contributing 8900 milliliters of

As a leading manufacturer in the petroleum drilling and blood to alleviate the shortage of blood for clinical use thereby demonstrating our commitment as a responsible corporate

production equipment industry we stand at the forefront citizen.of energy development and promote industry advance-

ment through technological innovation. In 2025 we

advanced with determination deepened the integration Governance (G): Ensuring Steady Operations through Standardized and Transparent Governance?

of intelligent equipment and low-carbon technologies and

actively participated in the optimization of the global We prioritize standardized and transparent governance to improve our institutional framework. In 2025 focusing on legal

energy structure. We also supported the green intelligent risk prevention and control we issued multiple compliance management systems established review mechanisms

and efficient development of the oil and gas equipment formulated integrity-building systems and reorganized and standardized the Audit Committee to strengthen our audit

industry and continuously enhanced our core competi- oversight capabilities. The Board of Directors issued five listing compliance and adaptability management systems and

tiveness within the value chain of the global petroleum refined regulations on financing processes investor communication and information disclosure standards to ensure the

drilling and production equipment industry. comprehensive coverage of our governance system.Furthermore supported by our outstanding credit performance and compliant operation capabilities we obtained a "5A"

rating in corporate credit to further strengthen our industry reputation and market competitiveness.Environmental (E): Promoting Sustainable Development through Green Innovation? Looking Ahead: Embarking on an Intelligence-ignited New Development Journey with Joint Efforts?

We regard sustainable development as a core strategy and have comprehensively promoted our green and low-carbon The year 2026 will be a critical year for the development of the oil and gas equipment industry. Guided by ESG principles

transformation. In 2025 we fully upgraded the management model of downhole motors one of our core products and we will continue to deepen our digital and intelligent transformation and promote breakthroughs in R&D innovation and

adopted component lifecycle management to cover the entire process from R&D and production to recycling significantly market expansion. We sincerely call on all employees to "embrace change and build resilience" seeking new opportunities

improving our resource utilization efficiency. In the same year we obtained Green Enterprise Evaluation Certification and in quality improvement cost reduction efficiency enhancement and capital market operations.Carbon Footprint Certification. This marked that our overall environmental management level and product lifecycle carbon

reduction capabilities reached an industry-leading level. We completed the installation of a photovoltaic power generation Let us work together to put the philosophy of green development into practice through concrete actions to safeguard our

system and a green electricity coverage across our plant areas contributing to realizing regional carbon neutrality goals. shared planet. With a strong sense of responsibility we will contribute to the development of the oil and gas equipment

We also upgraded our intelligent production lines introduced automated spraying production lines and implemented industry jointly promote its transformation and upgrading and create an even more brilliant future for DUPT!

environmental upgrades to glue injection production lines significantly reducing energy consumption per unit product.Our adhesive injection process received an "A" rating in the environmental impact assessment. These efforts enabled us to Thank you!

gain a win–win outcome for both economic and environmental benefits and set an industry benchmark for green and

sustainable development.Cheng Guihua Chairman of DUPT

PAGE PAGE

05 06Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

About DUPT Corporate Culture

DUPT regards corporate culture as the core driving force of corporate development. We advocate the core values of

"Customer-Centered and Striver-Oriented" and are committed to promoting the shared development of our company

Company Profile our employees and society through integrity-based operations continuous innovation and excellent services thereby

creating sustainable value for all stakeholders.Founded in 1961 Dezhou United Petroleum Technology Co. Ltd. (Stock Code: 301158.SZ) is a comprehensive petroleum

equipment manufacturing enterprise integrating R&D production operations and services. The main products of the

Company include drilling tools wellhead equipment drilling equipment oil production equipment and related engineering Values

and technical services. Our core products i.e. downhole motors are widely used in oilfields both domestically and

internationally and have become an industry benchmark. In the principles of being "Customer-Centered and Safety Mission

Striver-Oriented" we have established the HSE system and passed API and ISO 9001 quality management certifications. Philosophy Customer-Centered To provide

Our products and services have been recognized by the three major state-owned groups—CNPC Sinopec and CNOOC— and first-class

products and

and are exported to more than 20 countries and regions worldwide. The Company has been honored with titles such as Safety Always Striver-Comes First Oriented services for oil

"National High-Tech Enterprise" "National 'Little Giant' Specialized and Sophisticated Enterprise that Produces Novel and and gas

development

Unique Products" and "National Intellectual Property Advantage Enterprise". Moving forward the Company will continuously

drive innovation to create sustainable value for its customers and society. Work To become a

Style Instant Response reliable partner of Visionand Pursuit of the international oil

Perfection and gas development

Industrial Layout industry

Sincere Friendly Unity Truth Seeking

Grateful and Innovation

Dedicated Perseverance

Drilling We manufacture a wide range of specialized drilling tools including downhole motors

Tools non-magnetic products hydraulic vibrators near-bit motors and RSS downhole motors.Staff Spirit

Downhole motors one of our main products are widely used in drilling operations for vertical Guidelines Do better with Honesty-Based Diversified

directional sidetrack and horizontal wells as well as various workover operations. They meet heart and Win-Win

the demands of complex drilling scenarios and enjoy a strong reputation and market presence

in oilfields both domestically and internationally.Wellhead and With over 30 years of deep expertise in wellhead and well control equipment we have developed

Service Business

Well Control a range of mature products including conventional wellheads integrated wellheads

Philosophy Philosophy

Equipment single-casing dual-wellheads fracturing wellheads and choke and kill manifolds. We possess

comprehensive support capabilities for operations ranging from onshore to offshore (and from

Manufac- conventional to unconventional) oil and gas operations.turing of

Drilling Focusing on the systematic R&D and manufacturing of oilfield production enhancement and

Tools and Oilfield Production

Drilling injection products our products include hydraulic injection pumps hydraulic profile control and Enhancement and

Equip- water shutoff pumps and intelligent injection systems. These solutions enhance recovery rates Injection Systems

ment and injection efficiency providing reliable equipment support for stable and increased oilfield

production.We provide key equipment such as oil drilling rigs downhole motor testing systems and hydraulic

Drilling Equipment assembly/disassembly stands. The downhole motor testing system includes a full set of

and Downhole

Motor Testing inspection and verification platforms such as a rotary steerable system (RSS) ground simulation

System water circulation test system and a downhole motor test bench ensuring product performance

and operational safety.We are also engaged in the high-end hose business in the oil and gas exploration and production

High-Pressure

Hoses field with our core product being ultra-wear-resistant high-pressure acidizing and fracturing

hoses. These hoses offer advantages such as high-pressure resistance corrosion resistance

wear resistance and long service life making them suitable for various harsh operating

conditions.Engineering Relying on our proprietary core products we provide engineering and technical services and integrated solutions

and covering directional drilling horizontal drilling and workover operations achieving a "products + services" dual-drive

Technical

Services model.PAGE PAGE

07 08Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Development Milestones

2025

2023 Completed the first

2018 Set a new Asian drilling record with downhole service of 2006 high-temperature downhole motors independently devel-Listed on the National Equities Exchange oped MWD instruments

Conducted relocation and and Quotations (NEEQ) Market

1961 capacity expansionInitiated independent

Founded the predecessor of the Company

1992 entrepreneurshipEstablished the Repair Factory of the First

Survey and Exploration Team under the Successfully completed the

Geological Department independent R&D of downhole

motors

2022

Listed on the Growth Enterprise Market

2024

Conducted the strategic acquisition of IAE

International

19872004

Successfully developed mud pump components Implemented restructuring and diversification

Took the lead in achieving the localization Realized self-reliance

of imported components 2011

Established strategic cooperation with Yantai Jereh

Oilfield Services Group Co. Ltd.PAGE PAGE

09 10Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Certifications and Awards Environmental Protection Performance

Investment in Environmental Protection Total GHG Emissions GHG Emissions Intensity

52.02RMB 10000 10905.91 tCO?e 0.1512 tCO?e/RMB 10000 revenue

Awarding Authority Name

Environmental and Sustainable Development Certification Pollutant Monitoring Compliance Rate Waste Disposal Compliance Violations of Laws and Regulations

100 Rate Concerning Environmental Protection%

Jinchen Standard (Tianjin) Certification Group Co. Ltd. AAAAA-Level Green Enterprise Certification 100 % 0 Case

Jin Qian Certification Co. Ltd. Organizational Carbon System Certification

Excellent Oriental (Tianjin) Inspection and Green Factory Certification Governance Performance

Certification Co. Ltd.Green Supply Chain Certification General Meeting of Board of Directors Number of On-Site Investor Participants of Training Sessions on

Shareholders Surveys Received Anti-Commercial Bribery and

Management System and Capacity Certification 2 5Session Anti-Corruption for the ManagementSession 5Session 14 Person

Jinchen Standard (Tianjin) Certification Group Co. Ltd. AAA-Level Enterprise Credit Evaluation Certification

Total Participants of Training Sessions on Anti- Business Ethics Violation Incidents

AAA-Level Integration of Informatization and commercial Bribery and Anti-Corruption

China Electricity Council (CEC) Science & Industrialization Management System Certificate 0 Case

Technology Service Center AAA-Level Digital Transformation Management 807Person

System Evaluation Certificate

Awards for Technological Innovation and Recognition of Platforms Industry Value Performance

Second Prize of the Natural Resources Science and Technology

China Land Science Society Award (Project: Key Technologies and Applications for Efficient

Detection of High-Temperature Geothermal Resources) Investment in R&D Cumulative Number of Customer Number of Violations Incidents Related to

2807.75 Authorized Patents Satisfaction Information Security and Privacy ProtectionSecond Prize of the Science and Technology Progress

Award of Dezhou City RMB 10000 115 Case 96.73 % 0 Time

Dezhou Science and Technology Bureau

Dezhou Key Laboratory for Manufacturing and Application

Technology of Downhole motors

Environmental Protection and Product Quality Certification Human Resources Performance

Dezhou Municipal Bureau of Ecology and Environment "A" Rating of the Adhesive Injection Process in Environmental Impact Assessment Investment in Work Safety Coverage Rate of Occupational Health Checkup Percentage of Female Employees

Department of Industry and Information Technology of "Premium Products on Shandong Chain" Certification 175.39 RMB 10000 100 % 12.41 %

Shandong Province (Product: Downhole motors)

Number of Employee Training Sessions Investment in Employee Training Training Coverage Rate

Annual Performance Highlights 225Session 53.74 RMB 10000 100 %

Economic Performance

Total Assets Operating Revenue Net Profit Attributable to the Parent Company

193731.58RMB 10000 72114.41RMB 10000 11660.69 RMB 10000

PAGE PAGE

11 12Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Sustainable Development Governance SDGs Our Action Corresponding Section

*Engage in community construction *Practice of Social Welfare

*Support sustainable development *Environmental Compliance Management

Response to SDGs

*Implement responsible production *Environmental Compliance Management

SDGs Our Action Corresponding Section *Optimizing Resource Utilization *Recycling of Resources

*Provide local employment opportunities *Contribution to Rural Revitalization

*Support community services *Practice of Social Welfare *Respond to climate change

*Response to Climate Change

*Promote carbon emission reduction

*Support for Occupational Health

*Ensure the health and safety of employees

*Protection of Employees' Rights and

*Deepen employee care and benefits *Protect water environments

Interests *Environmental Compliance Management

*Prevent pollutant emission

*Offer employee training *Protection of Employees' Rights and

*Provide smooth development pathways Interests *Enhance ecological governance

*Ecological and Environmental Protection

*Protect land resources

*Protect employees' rights and interests *Protection of Employees' Rights and

*Solidifying Foundation through Sound

*Promote gender equality Interests *Improve corporate governance

Governance and Ensuring Sustainability

*Uphold compliant operations

through Compliant Operations

*Strengthen water resource management *Environmental Compliance Manage-

*Strengthen communications with

*Prevent and control water pollution ment

stakeholders *Sustainable Development Governance

*Build partnership

*Use clean energy

*Recycling of Resources

*Improve resource efficiency

Philosophy of Sustainable Development

*Establish a sound compensation system *Protection of Employees' Rights and

Focusing on long-term development and aligning with global sustainable development trends DUPT has established and

*Promote local economic growth Interests

continuously refined the Environmental Social and Governance (ESG) Management System. Guided by the development

philosophy of innovation coordination green development openness and shared benefits the Company comprehensively

*Advance digital transformation *Enhancement of Innovation Engine promotes the implementation of environmental protection social responsibility and governance practices in corporate

operations injecting strong momentum into sustainable development.*Implement technological innovation *Protection of Data Privacy

*Promote fair employment *Protection of Employees' Rights and

*Reduce internal inequality Interests

PAGE PAGE

13 14Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Governance Framework for Sustainable On this basis DUPT actively explores mechanisms for linking ESG indicators with the compensation and performance evaluation system. Through quantitative evaluation methods the Company establishes a two-way transmission channel for incentives and

Development constraints strengthens the motivation of the Management to fulfill ESG responsibilities and promotes the deep integration and long-term implementation of sustainable development objectives into corporate operations and management.DUPT places sustainable development at the core of corporate governance and has established a three-tier ESG

governance structure featuring "overall leadership by the Board of Directors implementation by the Management and Case Kick-off Meeting for the Preparation of DUPT's 2025 ESG Report

coordinated execution by functional departments and subsidiaries". Specifically the Board of Directors is responsible for

reviewing ESG strategic directions and major issues and exercising decision-making and oversight duties; the Management In December 2025 DUPT held a kick-off meeting for the preparation

integrates ESG targets into operational decision-making to ensure effective implementation of strategies; and business of the ESG report bringing together heads of various business units.units and functional departments collaborate with a clear division of responsibilities to strengthen resource support and The meeting focused on interpreting ESG policies and industry

closed-loop management. Through this system the Company systematically identifies and manages ESG risks and trends analyzing market risks and peer case studies and conducting

opportunities strengthens the Board's oversight of sustainable development performance and promotes the creation of thematic discussions based on the Company's realities. These efforts

long-term value with stakeholders. Going forward the Company will continue to optimize governance mechanisms enhance comprehensively enhanced key personnel's understanding of ESG

the transparency of information disclosure and improve governance effectiveness. their ability to implement ESG initiatives and their data governance

capabilities to ensure that subsequent efforts meet high-standard

professional requirements.Board of Directors

(Decision-making Level)

Communication with Stakeholders

ESG Working Group

DUPT regards stakeholder engagement as a critical component of ESG management and continuously builds a systematic

(Management Level) and multi-dimensional communication system. We strictly follow GRI AA1000 and other international standards expand

communication channels optimize interaction methods actively listen to stakeholder concerns respond to reasonable

requests and enhance the inclusiveness and effectiveness of communication thereby supporting the Company's sustainable

ESG Work Coordination Organization development.

(Execution Level)

Stakeholders Expectations and Demands Communication and Response

Compliant Operation Comply with laws and regulations

Environmental Compliance Management

Identification of Sustainable Development Risk Implement environmental protectionResponse to National Development Poli- Respond to relevant policies

cies

Closely aligned with development strategies and operational realities DUPT integrates ESG into the overall management Government or Regulator

Pay taxes fully and legally

Lawful Tax Payment

system. During the Reporting Period the Company identified and assessed risks and opportunities in areas such as Create employment opportunitiesFulfillment of Social Responsibility

environmental compliance management response to climate change pollutant emissions occupational health and safety

innovation-driven development and safety and quality of product and service. Targeted control measures were formulated Conduct pre-sales communication

and implemented effectively enhance proactive management and forward-looking response capabilities for ESG risks. Provide after-sales service and complaint

Product Quality and Safety management

Details regarding the identification of core risks and opportunities are provided in the corresponding sections below. Customer Service Management Conduct customer exchange

Customers Customer Privacy Protection Implement customer data and privacy

Deepening of Sustainable Development Practices management

DUPT continuously deepens the ESG capacity building by offering specialized training and organizing seminars and Improve business performanceReturn on Investment

exchanges to enhance all employees' understanding of and ability to apply the philosophy of sustainable development. The Ensure timely and transparent information

Company is committed to integrating ESG principles into job responsibilities and key business processes promoting the Information Disclosure disclosure

effective transformation from conceptual understanding to practical implementation and laying a solid foundation for Shareholders or Investors Governance Standardize corporate governance

improving ESG management effectiveness.PAGE PAGE

15 16Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Stakeholders Expectations and Demands Communication and Response

Very

Employment and Protection of Rights high

Protect employees' rights and interests

and Interests

Improve compensation system

Employee Compensation and Benefit Pollutant Emissions

Establish smooth promotion pathways Safety and Quality of Products and

Employees Career Development and Training ServicesEnhance health and safety systems

Employee Safety and Health Employee Training and DevelopmentEcosystem and Biodiversity Protection

Achiement of Mutual Benefit and Win- Realize strategic cooperation Water Resource Utilization Environmental Compliance Management

Win Results Conduct supplier management Response to Climate Change

Supply Chain Management Create responsible supply chain

Suppliers and Partners Occupational Health and Safety Innovation-driven Anti-Corruption and Integrity Implement transparent procurement

Waste Disposal Development

Protection of Employees' Legal Rights and Interests

Social Contribution Actively engage in public welfare activities Social Contribution Supply Chain Security

Public Welfare Organizations Rural Revitalization Support rural revitalization Anti-Commercial Bribery and Anti-Corruption

or Community Organizations

Energy Utilization

Anti-Unfair Competition

Management of Material Topics Circular Economy Data Security and Privacy Protection

In line with the development strategy with reference to domestic and international ESG disclosure standards such as the

Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial

Implementation) and in close alignment with the latest industry development trends DUPT identified material topics by Due Diligence

comprehensively assessing stakeholder engagement ESG expert opinions and management feedback with a

dual-perspective assessment approach based on financial materiality and impact materiality.Topic Analysis Process Assessment Method Financial Materiality Very high

The Company comprehensively reviewed business value chains and carefully analyzed

Self- the impacts risks and opportunities related to ESG associated with each operational

Assessment segment. Impact Materiality Topic

Based on comprehensive consideration of stakeholder opinions and with reference to Environmental Compliance Management Response to Climate Change

Topic international standards and industry practices such as GRI SDGs and SASB the Double Materiality Pollutant Emissions Occupational Health and Safety Innovation-Driven

Identification Company established a multi-dimensional and multi-level sustainability topic pool Development Safety and Quality of Products and Services

through topic benchmarking and preliminary screening.In the principle of double materiality the Company systematically assessed the short- Financial Materiality Only Supply Chain Security

Topic medium- and long-term impacts of ESG topics on the environment society and the

Assessment Company's finances through internal and external research and expert evaluation and Water Resource Utilization Waste Disposal Ecosystem And Biodiversity

scientifically prioritized these topics to clarify management priorities. Impact Materiality Only Protection Protection of Employees' Legitimate Rights and Interests

Employee Training and Development

Topic Based on the topic assessment results a materiality matrix was developed and Energy Utilization Circular Economy Anti-Commercial Bribery and

Response submitted to the Management for review and the final results were transparently and General Materiality Anti-Corruption Anti-Unfair Competition Due Diligence Data Security

comprehensively disclosed in this Report. and Privacy Protection Social Contribution

PAGE PAGE

1718

Materiality of Economic Social and Environmental ImpactsDezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

04

Solidifying Foundation through

Sound Governance and Ensuring

Sustainability through Compliant

Operations

DUPT continuously optimizes a modern governance structure

centered on the Board of Directors improves a closed-loop

management system covering strategy compliance risk con-

trol and integrity strictly implements information disclosure

systems to safeguard investor communication and integrates

business ethics and anti-corruption requirements into the

entire operational process thereby effectively enhancing gov-

ernance transparency and effectiveness and consolidating the

foundation for sustainable development.Responded UN Sustainable Development Goals (SDGs):

PAGE PAGE

19 20Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Consolidation of Governance System investors the Company strictly implements separate vote counting and timely disclosure. During the Reporting Period the Company convened and held the General Meetings of Shareholders in accordance with applicable laws and regulations

and ensured that procedures were compliant and resolutions were lawful and valid thus effectively safeguarding the le-

gitimate rights and interests of all shareholders.Governance Structure Key Performance

DUPT has established a modern corporate governance structure centered on the General Meeting of Shareholders the General Meetings of Shareholders Convened: 2 Sessions Proposals Approved: 19 Proposals

Board of Directors and the Management featuring clear delineation of powers and responsibilities and effective checks

and balances. In response to regulatory requirements and in accordance with the Company Law of the People's Republic

of China and the Transitional Arrangements for the Implementation of Supporting Institutional Rules under the New Company Board of Directors

Law and based on operational realities the Company taking into account operational realities and following a resolution

at an Extraordinary General Meeting of Shareholders has abolished the Board of Supervisors and incorporate functions The Board of Directors is the decision-making body of the Company and answers to the General Meeting of Shareholders.into the Audit Committee under the Board of Directors and simultaneously strengthened independent director supervision To ensure scientific decision-making and standardized operations the Board of Directors has established four specialized

and internal audit mechanisms to further improve the effectiveness of internal control and risk management. committees i.e. the Strategy Committee the Remuneration and Appraisal Committee the Audit Committee and the

Nomination Committee and strictly implements the Rules of Procedure for the Board of Directors.In conjunction with adjustments to the governance structure DUPT systematically revised and formulated 27 institutional

rules and regulations and improved the governance institutional system centered on the Articles of Association including In terms of independence DUPT has formulated the System of Work of Independent Directors which clearly defines the

rules of procedure for the General Meeting of Shareholders the Board of Directors and specialized committees. Through qualifications performance requirements and independence judgment principles of independent directors to ensure their

standardizing meeting operations strengthening information disclosure and ensuring the performance of duties by independence in fulfilling their duties. The Board of Directors consists of 9 members of which 3 are independent directors.independent directors the Company ensures the effective implementation of governance mechanisms and continuously All independent directors meet the independence requirements of the Measures for the Administration of Independent

enhances the standardization of corporate governance. Directors of Listed Companies and the Articles of Association. They do not hold positions in the Company other than as

directors and have no relationships with the Company major shareholders or actual controllers that may affect their

independent and objective judgment and they are able to participate in decision-making and exercise effective oversight

General Meeting of Shareholders

in a diligent and responsible manner.Strategy Committee In terms of diversity members of the Board of Directors possess diverse professional backgrounds in fields such as

petroleum engineering business administration finance and legal compliance and have extensive industry and

Remuneration and Appraisal Committee management experience which enables the Board of Directors to have a scientifically structured and well-balanced board

Board of Directors composition. Through well-established nomination and election procedures the Company has built the Board of Directors

Audit Committee Audit Department a team with complementary knowledge structures and experience backgrounds to make the decisions of the Board of

Board Secretary Directors more scientific and holistic.Nomination Committee

Management Key Performance

Meetings Held by the Board of Directors: 5 Sessions Proposals Approved: 52 Proposals

Research

General Human Financial Securities Supply HSE Quality Equipment Intelligence and Meetings Held by the Remuneration and Appraisal Committee: 1 Session Meetings Held by the Audit Committee: 5 Sessions

Institute of Administration Business Subsid-

Manager’s Resources Management Investment Management Management Management Management Informatization

Science and Department Groups iaries

Office Department Department Department Department Department Department Department Department

Technology

Organizational Chart Optimization of Compensation

General Meeting of Shareholders Management

The General Meeting of Shareholders serves as the highest decision-making body and strictly operates in accordance with Through the Remuneration and Appraisal Committee DUPT implements standardized management of the remuneration

the Articles of Association and the Rules of Procedure for the General Meeting of Shareholders. It is convened through a com- of directors and senior management. Based on job responsibilities performance and industry standards remuneration

bination of on-site and online voting methods to fully safeguard the rights of all shareholders—especially minority share- policies and specific plans are formulated and implemented upon approval by the Board of Directors ensuring that

holders—to attend and vote at the General Meeting of Shareholders. For major matters involving the interests of minority remuneration decisions are standardized transparent and aligned with the Company's long-term interests.PAGE PAGE

21 22Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Advancement of Investor Relations Case "Rational Investment with Me" Investor Open Day Event

Management In September 2025 the Company successfully held the "Rational Investment with Me" Investor Open Day Event inviting more than ten representatives from institutions such as Guoxin Securities and individual investors to visit the digital

exhibition hall and intelligent workshops on site. During the event the Management engaged in in-depth discussions

Information Disclosure with investors on topics such as the Company's development strategy core technologies and industry trends. This effectively enhanced the market's understanding of and trust in the Company further deepening transparent and

In strict accordance with applicable laws and regulations on information disclosure DUPT has formulated internal systems mutually trusting investor relations.such as the Information Disclosure Management System and the Insider Information and Insiders Registration Management

System to effectively fulfill information disclosure obligations and ensure that information is true accurate complete timely

and fair. The Company publishes announcements in a standardized manner through designated media and platforms

continuously improves internal reporting review and confidentiality mechanisms and effectively prevents insider trading

and selective disclosure.DUPT has clearly designated the Chairman as the primary person responsible for information disclosure with the Board

Secretary taking the lead in managing information disclosure affairs. All departments and subsidiaries strictly fulfill their

direct responsibilities to ensure investors have equal access to information and to safeguard their legitimate rights and

interests. During the Reporting Period no violations related to information disclosure leakage of insider information or

insider trading occurred in the Company.Key Performance

Total Announcements Disclosed throughout the Year: 116 Periodic Reports And Summaries: 6 Enhancement of Returns to Shareholders

Interim Announcements: 110 Investor Relations Activity Record Forms: 7

Upholding sustainable returns to shareholders DUPT has formulated profit distribution policies based on the current

Public Opinion Management development stage profitability level and future capital planning. We have established a stable transparent and continuous cash dividend mechanism to ensure that shareholders can share in the development achievements of the Company. By

To effectively manage reputation risks in the capital market DUPT has established a public opinion management system continuously improving return planning and clarifying dividend expectations the Company strengthens long-term market

formulated the Public Opinion Management System and specifically set up a Public Opinion Management Leading Group. For confidence enhances investor trust and return levels and achieves synergistic growth in shareholder value and corporate

major public opinion events that may cause or have caused abnormal fluctuations in the share price the Company has established value.standardized handling procedures covering event investigation solution formulation clarification of information through

Dividend Year 2022 2023 2024

compliant channels and accountability. Through efficient handling of public opinions the Company maintains market fairness

and stability and effectively safeguards brand reputation and the legitimate rights and interests of shareholders.Total Cash Dividend (Tax Inclusive) RMB 24.0593 Million RMB 45.1112 Million RMB 45.9244 Million

Investor Relations Management

Annual Dividend Payout Ratio 31.45% 52.01% 46.30%

Key Performance

DUPT attaches great importance to investor relations management and

has formulated the Investor Relations Management System. Adhering to

Investors' On-site Surveys: 5 Times

the principles of compliance equality proactiveness and integrity in

communication the Company actively maintains transparent and efficient

Investors' On-site Surveys: 20 Person-times

interaction with investors through diversified channels and ensures

information symmetry through regular earnings briefings and investor Investor Questions Replied on Cninfo

open days. This approach continuously enhances market recognition

builds a mutually trusting and win-win investor relationship and Platform: 151 Reply Rate: 100 %

establishes a sound image in the capital market.PAGE PAGE

23 24Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Improvement of Risk Management Case Company-wide Legal Awareness Promotion Campaign

In December 2025 DUPT launched a two-week compa-

ny-wide legal awareness promotion campaign. Through

online quizzes offline legal information stations and special

Compliant Operations exams and contract evaluations covering key positions such

as procurement sales and technologies the campaign deep-

ened employees' awareness of compliant operations in areas

Compliance Management System such as the control of contract risks and the protection of

trade secrets and effectively promoted the integration of risk

DUPT steadily advances the construction of compliance management systems and strictly implements comprehensive control into business operations.compliance management requirements. By formulating regulations such as the Litigation and Arbitration Case Management

System the Employee Code of Conduct and the Integrity Construction Management System the Company has established

a regulatory framework covering core areas including legal compliance operational management and integrity and

self-discipline. In addition an Integrity Development Committee and a specialized working group have been established

to clarify responsibilities and operational mechanisms. Consolidating the foundation of compliance through top-level Case Special Training on Lawful and Compliant Employee Management

design institutional systems and organizational support the Company is committed to fostering a culture of compliance

and an ecosystem of integrity to provide reliable guarantees for the steady operation and sustainable development of the In December 2025 to enhance the management team's ability

Company. to prevent and control employment risks the Company orga-

nized a special training session titled "Legal and Compliant

Management Pathways for Employees Deemed 'Unable to

Compliance Management Mechanism Perform Their Duties'". The session systematically explained

relevant legal concepts scientific methods for performance

evaluation and compliance-based termination procedures

DUPT continuously improves the implementation mechanism for compliance management. By formulating and aiming to shift management practices from subjective judg-

implementing special guidelines and operational standards compliance requirements are embedded into processes such ment to objective criteria thereby effectively improving the

as contract management and business approvals. The Company focuses on conducting systematic identification and compliance level of employment management.prevention in key areas such as contract management and financial transactions clarifies compliance standards and

responsibility boundaries in various business activities and promotes the effective implementation of compliance

management measures through institutional promotion and routine supervision. These efforts effectively enhance the

overall level of compliant operations and provide execution support for standardized operations and risk prevention.Case Formulation of Guidelines for Contract Risk Prevention and Control Import and Export Compliance Management

In February 2025 DUPT organized all functional departments to systematically identify legal risks in external contracts DUPT has formulated and implemented the Measures for Trade Compliance Management strengthening compliance control

covering key types such as revenue and expenditure contracts. The Company then developed targeted standards for throughout the entire import and export process. Compliance screening has been embedded into business processes and

the entire process—from drafting to signing—ultimately producing the Guidelines for the Identification and Prevention strict reviews are conducted for key aspects such as customer background end use material sources supplier admission

of Legal Risks in External Contracts thereby establishing a standardized framework for compliance operations and risk and transactions involving sanctioned countries/regions in revenue and procurement contracts. The Company has

prevention in core business processes. established and dynamically maintained compliance control lists and transaction review ledgers to enhance traceability

across all aspects of cross-border business thereby ensuring that international operations fully comply with applicable

laws regulations and trade control requirements while preventing cross-border operational risks.Cultivation of Compliance Culture

DUPT is committed to fostering a compliance culture that involves all Key Performance

employees. Through specialized legal awareness campaigns and a series Number of Compliance Training Sessions: Case Training on the Compliance of Import and Export Trade

of training programs the Company continuously enhances the 4 Sessions

compliance awareness and risk prevention capabilities of employees in 321 In September 2025 the Company organized specialized training on trade compliance covering four key modules: key positions. Additionally the Company strengthens behavioral Duration of Compliance Training: Hours terminology explanations an overview of U.S. international trade laws and the Company's compliance systems and

constraints and positive guidance to ensure that compliance requirements Participants of Compliance Training: processes. The training aimed to equip key business personnel with a thorough understanding of international

are internalized and reflected in actions making compliance a conscious 1700 regulations and the Company's latest compliance requirements enhance their ability to identify and mitigate risks in behavior and professional habit for all employees. Person-times cross-border operations such as procurement and sales and ensure the stable operation of international business.PAGE PAGE

25 26Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Risk Management tax management positions with clearly defined job responsibilities and approval authorities. The Company has established rules for key processes such as contract execution invoice management and tax declaration to ensure the lawful fulfillment

of tax obligations and effectively prevent tax-related risks. Meanwhile the Company continuously tracks tax incentive

Risk Management System policies regularly conducts tax risk assessments and control activities and promotes the iterative upgrading of the tax

management system toward compliance and efficiency providing strong support for the Company's sound operations.DUPT has established the risk management system commensurate with business scale and risk characteristics. With the

Internal Audit System as the core supervisory mechanism the Company clarifies that the Board of Directors and the Audit

Committee are responsible for risk management oversight while the Audit Department independently carries out risk

assessments and internal control evaluations and regularly audits and reports on key risks related to finance operations Anti-Commercial Bribery and

and compliance. The Company integrates risk management into the entire business process engages accounting firms

to conduct audits of internal control effectiveness and dynamically optimizes controls in conjunction with internal audits. Anti-Corruption

This forms a closed-loop management model of self-inspection attestation and optimization ensuring the effective

operation of risk prevention and control across all stages and safeguarding the operational security of the Company.Training on Risk Management Anti-Corruption Management System

Key Performance Attaching great importance to anti-corruption management DUPT has formulated core policies such as the Integrity

DUPT regards the training on risk management as a critical component Training Sessions on Risk Management: Construction Management System and strengthened their implementation effectiveness. The Company has established an

of system capacity building aiming to enhance the management team's 4 Sessions Integrity Construction Committee and a daily working group led by the Chairman to coordinate and advance anti-corruption capabilities in risk identification assessment and response. The Company efforts across the Company and all business operations. Responsibilities authorities and codes of conduct are clearly defined

regularly conducts specialized training covering all business areas. Duration of Training on Risk Management: and specialized integrity conduct standards have been developed for key areas such as procurement and investment.Through case studies process reviews and mechanism discussions we 5 Hours

continuously strengthen risk awareness among all employees and DUPT adheres to the fundamental principle of "zero-tolerance" establishes a reward and punishment mechanism that includes

Participants of Training on Risk Management:

provide a solid foundation of talent and organizational support for the 216 specific exemption clauses as well as confidential reporting channels to encourage internal oversight. Through integrity effective implementation of the comprehensive risk management system. Persons training cultural awareness campaigns and internal audits the Company effectively prevents and controls risks of bribery

and corruption ensuring honest and compliant operations. During the Reporting Period neither the Company nor its

Case Team Collaboration Risk-Themed Exchange and Training employees were involved in any incidents of embezzlement or corruption nor were there any violations of business ethics.In July 2025 DUPT organized management personnel

at all levels to participate in training on barriers to team Anti-corruption Management Measures

collaboration enhancing awareness of collabora-

tion-related risk control. Through mechanism optimi- Integrity Culture Development

zation driven by case studies and follow-up verifica-

tion the Company achieved a 30% improvement in Key Performance

cross-departmental communication efficiency and a DUPT prioritizes the construction of an integrity culture Participants of Training Sessions on Anti-Commercial Bribery

25% year-on-year reduction in work delay incidents. striving to create a corporate culture ecosystem character-

and Anti-Corruption for the Management: 14 Persons

This effectively strengthened team execution and co- ized by integrity transparency and compliance among all

hesion laying a solid foundation for advancing the employees. Through regular anti-corruption training Duration of Training on Anti-Commercial Bribery and

Company's operational objectives. programs the Company strengthens professional ethics Anti-Corruption for the Management: 25.50 Hours

and behavioral standards across the workforce. Targeted

integrity education is implemented for key leadership Participants of Training on Anti-Commercial Bribery and

Tax Management positions to deepen the Management's awareness of clean Anti-Corruption for Employees: 807 Persons

and responsible performance of duties thereby fortifying Duration of Training on Anti-Commercial Bribery and

To standardize tax management DUPT formulated and implemented the Tax Management System clearly designating the the defense against misconduct at the ideological and Anti-Corruption for Employees: 1210.50 Hours

Finance Management Department to oversee tax-related work and requiring subsidiaries to establish full-time or part-time behavioral levels.PAGE PAGE

27 28Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Case Themed Lecture on "Integrity Building" Anti-Corruption Audit and Supervision

In July 2025 the Chairman of the Company delivered a DUPT integrates ongoing anti-corruption audits into routine business audits and internal control assessments focusing

themed lecture on "Integrity Building" at the mid-year on reviewing the design effectiveness and implementation rigor of internal control systems in high-risk areas and evaluating

all-staff meeting. He explained the Company's integrity their actual effectiveness in preventing fraud. During the Reporting Period the Company completed special audits in areas

values and code of conduct to employees aiming to such as procurement and bidding as well as infrastructure construction and identified no fraudulent activities. For areas

foster an atmosphere that values integrity and requiring improvement as identified during the audits the Company has formulated corrective measures which are being

practicality and convey the unwavering commitment of steadily implemented by the Management to continuously enhance the effectiveness and deterrent impact of

the Management to integrity and compliance from the anti-corruption efforts.top down.Whistleblower Protection Mechanism

Case Special Deployment for "Integrity Building-Themed Lecture and Work Arrangements"

To strengthen integrity oversight DUPT has established a secure independent and multi-channel whistleblowing network

In December 2025 the Company conducted a special deployment for "Integrity Building-themed Lectures and Work for employees partners and the general public. In accordance with established policies the Company clearly defines

Arrangements" for the Management. Through activities such as company-wide quizzes self-inspection and whistleblowing channels and strictly upholds its commitment to the confidentiality of reported information. Any form of

self-correction and supervisory feedback the initiative promoted top-down company-wide learning in key retaliation is strictly prohibited and violators are held strictly accountable to ensure the effectiveness and credibility of the

departments such as the Financial Management Department and the Procurement Center ensuring the comprehensive whistleblowing mechanism thereby continuously fostering a clean and upright operational environment.permeation and effective implementation of the integrity culture.Whistleblowing 0534-2237900 0534-2237998 Integrity Construction Suggestion Boxes in the office

Channels building and workshops

qinglian@dupm.cn

Whistleblowing The Integrity Construction Working Group is responsible for receiving registering preliminarily reviewing

Treatment and investigating reported matters. Based on the investigation results cases will be handled in

accordance with regulations and timely feedback will be provided to the whistleblower to ensure a

compliant and transparent process.Protection of The information of whistleblowers and the content of reports will be kept strictly confidential. Retaliation

Whistleblowers is strictly prohibited and violators will be held strictly accountable to effectively safeguard the legitimate

Training of the Surface Technology Business Division Training of Procurement Center rights and personal safety of whistleblowers.Reward for Whistleblowers whose reports are verified as true and help recover losses for the Company will be

Anti-Corruption Risk Control Whistleblowers rewarded with cash or in-kind incentives to encourage proactive supervision.DUPT systematically manages risks related to commercial bribery and corruption across high-risk areas including

procurement sales finance and taxation investment and human resources. These risks are assessed and prioritized based

on their likelihood of occurrence and potential impact. The Company identifies key risk positions and adopts comprehensive Anti-Unfair Competition Management

internal control measures such as segregation of duties authority control transparent operations and behavioral

constraints. Continuous monitoring is achieved through financial monitoring IT early-warning systems and internal audits.Major risks are promptly identified and corrected to ensure they remain under control and to continuously optimize the In strict accordance with laws and regulations such as the Anti-Unfair Com- Key Performance

governance environment. petition Law of the People's Republic of China and the Anti-Monopoly Law of Training on Anti-Monopoly and Fair

the People's Republic of China DUPT clearly defines specific codes of conduct

Competition: 1 Session

for marketing activities in the Integrity Construction Management System

Integrity Management for Business Partners regulating the behavior of sales personnel to ensure honest business Signing Rate of Integrity Agreements for Key

practices fair competition and the maintenance of market order. Relying on

Positions: 100 %

existing integrity construction framework and training system the Company in-

DUPT extends the requirements for integrity to the management of business partnerships. At the initial engagement stage

the mutual obligations for anti-bribery and anti-corruption cooperation are clarified and incorporated into the core criteria corporates anti-unfair competition management into routine compliance education and supervision and requires all employees

for the selection performance evaluation and termination of partners. The Company promotes the signing of integrity to uphold professional ethics and firmly resist behaviors that undermine fair market competition such as false advertising malicious

agreements to jointly foster an open fair and transparent business environment and collaboratively mitigate the risks of defamation and commercial bribery. During the Reporting Period no major litigation or administrative penalties due to unfair

commercial corruption. competition occurred in the Company.PAGE PAGE

29 30Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

05

Advancing Craftsmanship through

Environmental Protection and

Empowering Production with

Green Intelligence

DUPT deeply integrates sustainable development into corpo-

rate governance and daily operations identifies and manages

transition and physical risks arising from climate change ac-

tively promotes energy-saving and low-carbon production

methods improves energy and resource utilization efficiency

and establishes a green management system covering the

entire operational process to fulfill environmental responsibil-

ities through concrete actions.Responded UN Sustainable Development Goals (SDGs):

PAGE PAGE

31 32Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Response to Climate Change

Likelihood

In active response to the national "carbon peaking and carbon neutrality" goals and following domestic and international Risk Type Description of Risk Impactof

Occurrence Cycle

Financial Impact Countermeasures

climate policies and the industry's low-carbon plans DUPT explores ways to integrate carbon neutrality targets into the

long-term development path gradually implements emission reduction measures promotes green operations and Closely monitor domestic

and international cli-

low-carbon technological innovation improves resource utilization efficiency and reduces the carbon footprint across the

Tighter domestic and mate-related laws and

entire value chain. Through concrete actions the Company addresses climate change and works together to build a green international policies regulations and simulta-Increase in operating costs: neously implement corre-

and sustainable future. Policy and such as carbon taxes increased compl iance

Regulatory and emissions stan-

sponding environmental

High Long term costs upgraded invest-

dards increase compli- management systems

Governance to Address Climate Change Risks ment in equipment etc.ance and carbon cost Intensify R&D efforts in pressures. low-carbon technologiesConduct carbon footprint

accounting and set emis-

Under the leadership of the Board of Directors and the ESG Working Group DUPT sion-reduction targets

steadily advances climate governance initiatives. The Company fully recognizes

the potential risks and opportunities climate change presents to corporate The acceleration of the

global energy transition

operations incorporates climate-related topics into existing management system and fluctuations in in- Expand new energy equip-

planning and continuously improves the identification assessment and Market vestment in traditional Medium Decline in revenue: Shrink-Medium ment business lines

management of climate-related risks to enhance climate adaptation capacity and Demand Risk oil and gas exploration to long ing revenue from tradi-and production affect to high

Upgrade the energy effi-

term tional businesses.overall governance capability. ciency of existing productsdemand for drilling and

production equipment.To promote standardized carbon management DUPT strictly follows international

and industry standards and gradually establishes and improves internal carbon Suppliers of upstream

management systems focusing on enhancing greenhouse gas accounting and raw materials (such as Conduct supplier climate

disclosure levels. During the Reporting Period the Company successfully passed specialty steel and al- Increase in operating costs: risk assessment and diver-

Supply Chain loys) face supply insta-

the organizational carbon management system certification following an audit by rising raw material costs sified procurementRisks bility or price volatility Medium Short and supply delays affecting Promote collaborative emis-

a qualified third-party institution. Transition due to environmental medium production plans. sion reduction with suppli-

Organizational Carbon Management production restrictions termRisks ers

System Certification Certificate and energy price fluc-

tuations.Strategies to Address Climate Change

Establish green factory

management systems and

Customers' Customer preferences Decrease in operating green supply chain man-

Likelihood shift toward low-car- revenue: loss of green

Risk Type Description of Risk Impactof Financial Impact Countermeasures Low Carbon

Medium

procurement orders. agement systems

Occurrence Cycle Require- bon enterprises and re- High to long Increase in operating costs: Apply for green certifica-quire "low-carbon" cer- term

ments increased certification tions such as green factory

Extreme weather affects tification. costs. and green enterprise certi-

the safety and progress Increase in operating costs: Assess and enhance the fications

of production base op- Short and

Acute Risk Medium equipment damage pro-

climate resilience of key facil-

erations logistics or medium duction suspension increase ities

project construction. term in maintenance costs and Construct rooftop photovol- Regularly disclose ESG

Physical insurance expenses and taic systems to reduce pur- progress and emission-re-

increase in energy con- chased electricity

Risk duction achievementsChanges to long-term cli- sumption costs due to rising Establish extreme weather Decrease in operating

Reputation Low ESG ratings under revenue: increased financ- Improve ESG governance mate patterns affect op- temperatures. warning mechanisms and Medium Long term structure

erational efficiency in -mine investor confid-Decrease in operating reve- formulate production and lo- Risks ing costs and loss of mar-ence. ket share. Strengthen publicity on

Chronic Risks high-temperature regions Medium Long term nue: delayed order delivery gistics emergency response low-carbon transformation

and increase the need for results in reduced revenue. plans to enhance the Company's

equipment cooling and green brand image

maintenance.PAGE PAGE

33 34Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Impact

Opportunity Type Description of Opportunity Likelihood of Duration Financial Impact Metrics and Targets to Address Climate ChangeOccurrence

Promote the substitution of clean en- In strict accordance with national and industry laws regulations and policy requirements in the field of low-carbon

Opportunities in ergy in production utilize resources Decrease in operating costs: environmental protection DUPT continuously improves greenhouse gas (GHG) emission control from source to end-of-pipe

Energy Structure such as factory rooftops to build dis- High Long term reduced purchased electricity actively advances the construction of solar photovoltaic projects and implements multiple measures such as emission tributed solar projects and optimize expenses and access to green

Optimization reduction through production process optimization to effectively reduce the carbon footprint. During the Reporting Period the energy consumption structure in electricity subsidies. the Company's GHG emissions were mainly derived from direct emissions from the consumption of natural gas in daily

production.office and production operations and indirect emissions from the use of purchased electricity.Develop green equipment and solu-

tions—such as complete geothermal Key Performance 2023 2024 2025 UnitOpportunities in

Green Collaboration drilling and production systems and

Increase in operating revenue:

resource-efficient processing of drill- Medium Long term strong demand for new energy

equ ipment and enhanced Direct GHG Emissions (Scope 1) 1685.33 1553.29 1526.20 tCO2eAcross the Supply ing cuttings—to drive collaborative

Chain carbon reduction across the industry value-added of orders.chain. Indirect GHG Emissions (Scope 2) 8582.99 9625.13 9379.71 tCO2e

Leverage green factory certifications Decrease in operating costs: Total GHG Emissions 10268.32 11178.42 10905.91 tCO2e

Opportunities in and new energy equipment business access to subsidized loans and

qualifications to apply for low-cost High Medium term reduced financial expenses

Green Financing funding such as green loans and sus- support for R&D and capacity

tainability-linked bonds. expansion. GHG Emissions Intensity 0.1811 0.1675 0.1512 tCO2e/RMB 10000 revenue

GHG Emission Density 13.51 13.48 12.65 tCO2e/Person

Climate-related Risk Management

Practice for GHG Emission Reduction

To effectively manage the long-term impacts of climate change DUPT has incorporated climate-related risks into the

Company's overall risk management framework and established a scientific management process. Following an "identifi- DUPT continuously deepens green manufacturing practices and promotes greenhouse gas emission reduction through

cation–assessment–response" climate risk management process the Company continuously identifies physical risks and multiple measures. By optimizing the energy structure and implementing clean energy substitution and energy efficiency

transition risks evaluates their likelihood of occurrence and financial impacts formulates and implements targeted improvement projects the Company consolidates the foundation for emission reduction. Meanwhile leveraging techno-

mitigation measures and promotes the normalization and refinement of climate risk management. logical innovation the Company develops low-carbon products and solutions to advance carbon reduction across the full

value chain from the production to the use of products. In addition in strict compliance with international standards in

Climate Risk Management Process of DUPT carbon accounting and management we continuously reduce our own carbon footprint and that of our value chain and

fulfill our primary responsibilities in climate action.Continuously monitor domestic and international macro policies industry policies and national

Risk regulatory requirements to identify potential risks arising from climate-related physical Case Construction of a Photovoltaic Power Generation ProjectIdentification

changes and the low-carbon transition.During the Reporting Period the distributed photovoltaic project

on the roof of Workshop No. 6 was completed and put into

Risk Conduct risk assessments and prioritize identified risks based on their likelihood of occurrence operation. The project utilized approximately 12000 square meters

Assessment and the extent of their impact on the Company's finances operations and strategy. of rooftop space and installed 2649 photovoltaic modules with a

total installed capacity of 1721.85 kWp. Operating under the

model of "the self-generation and self-consumption of green elec-

tricity and the feeding of surplus green electricity into the grid" the

Risk project generated approximately 1.9373 million kWh annually. In

Response Develop and implement targeted response measures for the primary climate risks identified. addition to meeting the power demand for production purposes

it reduces carbon emissions by approximately 1931 tons per year

effectively optimizing the energy structure.PAGE PAGE

35 36Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Case CC-Grade Casing Wellhead Products Empowering National CCUS Projects Sound Environmental Management System

The CC-grade high corrosion-resistant casing wellheads in-

dependently developed by the Company have achieved key DUPT continuously improves the environmental protection management system

application in the Tuha Oilfield CCUS Project. Using strong and has established an environmental management responsibility structure with

corrosion-resistant materials and a high-pressure metal clearly defined roles and responsibilities. As the top executive the General Man- 注 册 号 ：04424E10687R4M

sealing structure it achieved zero leakage during the cumu- ager is responsible for coordinating the Company's overall environmental policy 环境管理体系认证证书

lative injection of 500000 tons of carbon dioxide helping in- and strategy and bears ultimate responsibility for the effective operation of the兹证明德州联合石油科技股份有限公司

crease crude oil recovery in the block by 15%. The annual environmental management system. The HSE Management Department has

统一社会信用代码：913714007636991982

注册地址：山东省德州市天衢新区宋官屯街道晶华南大道1518号

审核地址：山东省德州市天衢新区宋官屯街道晶华南大道1518号

carbon sequestration capacity of the Project is equivalent to been established as the central administrative and professional oversight body环境管理体系符合

GB/T 24001-2016/ISO 14001:2015 标准该体系覆盖范围

the annual carbon sequestration capacity of 100000 mu of for environmental management leading the coordination of system develop- 石油钻采设备、工具及配件（泥浆泵、注入泵、拆装架、 螺杆钻具、水力振荡器）、石油专用仪器配件、井口装置和采油树

ment planning implementation and performance evaluation. Each business （套管头和油管头，悬挂器，平板阀，节流阀，安全阀）、 forest delivering significant emission reduction benefits and 井控节流阀、压井管线、泥浆泵组件的设计、制造及其销售服务，钻杆接头、钻柱转换接头、接箍、旋转台肩螺纹的制造及其销售服务，定向井技术服务的相关环境管理providing a replicable technical equipment solution for the department in accordance with assigned environmental responsibilities is re- （未纳入认证范围的多场所不得使用认证证书和认证标志） 颁证日期：2024 年 07月 08 日 有效期至：2027年 07 月 07 日 换证日期：2025 年 07 月 04日

low-carbon transformation of the oil and gas industry. sponsible for the implementation and execution of specific environmental man- 北北京中经科环质量认证有限公司 总经理：

agement measures within its department and operational processes. 1. 本证书有效性查询可扫描左侧二维码 2. 同时可登陆 www.zjqc.com 查询

3.也可登陆国家认证认可监督管理委员会官方网

站 www.cnca.gov.cn 查询

4.获证组织必须定期接受监督审核并经审核合格

此证书方继续有效公众号证书查询

As of the end of the Reporting Period DUPT has passed ISO 14001:2015 envi-

ronmental management system certification and the adhesive injection process

Case Driving Production Optimization and Emission Reduction Practices Through Carbon Footprint Accounting has received an "A" rating in the environmental impact assessment.ISO 14001?2015 Environmental Management

The Company carried out "cradle-to-gate" carbon footprint verification for down- System Certification Certificate

hole motor products in accordance with relevant standards such as PAS 2050 the Key Performance

GHG Protocol and ISO 14064-3:2019. Calculations show that the carbon footprint

of producing 1 ton of downhole motors is 4434.64 kgCO2e. This provides quanti- Investment in Environmental Protection: RMB 520.2 Thousand

tative evidence for the Company to identify emission reduction priorities and op- Violations of Laws and Regulations Concerning Environmental Protection: 0

timize production processes thereby supporting the reduction of product carbon

footprint.Identification of Environmental Risks and

Opportunities

Categories of

Main Likelihood Impact

Environmental Risk Type Description of Risk of Cycle Financial Impact Countermeasures

Risks Occurrence

Emissions of waste gas

Environmental Compliance Management wastewater and solid Conduct regular monitoring Pollutant waste generated during of pollutant emissions

Discharge the production process Increase in operating Upgrade environmental pro-

Risks may exceed national and costs: this risk may tection facilities and conduct

local standards resulting cause environmental regular inspections

Regarding green ecology and sustainable development as core components of corporate strategy DUPT effectively fulfills in environmental pollu- protec t ion fine s Establish comprehensive re-

tion incidents.primary responsibility for environmental protection in strict accordance with environmental protection-related laws and losses from produc- cords for hazardous waste Environmental Short and tion suspension for management and regularly regulations such as the Environmental Protection Law of the People's Republic of China the Law of the People's Republic of Compliance If violations such as un- Low medium rectification addi- audit the qualifications of

China on Prevention and Control of Soil Contamination and the Law of the People's Republic of China on Clean Production Risks clear labeling incom- term tional investment in contracted disposal provid-

Promotion. Upholding the environmental policy of "people orientation and cleaner production" the Company continuously Hazardous plete ledgers or entrust- environmental pro- ers

improves the HSE system formulates internal regulatory documents such as the HSE Manual and the HSE Procedure Waste ing disposal to unquali- tection equipment Improve internal environ-

Documents and establishes a scientific and systematic environmental management mechanism. fied units occur during Management and environmental mental management sys-

the storage transfer and remediation costs. tems and strengthen envi-Risks

During the Reporting Period neither the Company nor any of its subsidiaries had violated any applicable environment-re- disposal of hazardous ronmental compliance train-

waste the Company will ing

lated laws and regulations; pollutant emissions were not subject to major administrative penalties and no adverse effects face severe penalties.were caused to employees or local community residents.PAGE PAGE

37 38Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Categories of

Main Likelihood Impact Emissions to air

Environmental Risk Type Description of Risk of Financial Impact Countermeasures

Risks Occurrence

Cycle

For new construction re- Strictly implement the "three

Environmental construction and expan- simultaneities" system for Emissions to water bodiession projects of drilling and Increase in oper-

Impact environmental protection fa-production equipment ating costs: the

risk may cause cilities in construction proj-

Environmental Assessment manufacturing plants and ects

Compliance Risks for New production lines failure to

potential expo-

Short Strengthen cooperation with Emissions to land

complete environmental Low sure to substan-

Risks Construction termimpact assessment proce- tial fines rectifi-

professional environmental

Reconstruction institutions to ensure that all dures and obtain approv- c a t i o n c o s t s

and Expansion and losses due new projects commence als in a timely manner may Past Present Future Consumption of Raw Materials construction only after the Environmental pollution

Projects result in project suspen- to operational completion of all legal pro- and Natural Resources

sion fines or even demo- interruptions. cedures

lition.Energy Usage

Failure to meet increasing- Decrease in oper-

ating revenue: Normal state Abnormal state Ecological damage and ly stringent environmental

performance requirements The brand image Strengthen communications Emergency state rational resource utilization

from major oil and gas a n d c u s to m e r with stakeholders Energy Release (e.g. heat radiation

Reputation and company customers in the Short orders may be Participate in the formulation vibration etc.)Transition Risks

Market Risks supply chain may result in

Low term affected result- of industry green standards

order losses tightened fi- ing in increased and promote the develop-

nancing conditions and financing costs ment of green supply chains Waste and By-products

fluctuations in market val- or fluctuations in

ue. market value.Physical Properties (such as Size

Shape Color Appearance etc.)

Likelihood

Opportunity Type Description Impactof Cycle Financial ImpactOccurrence Environmental Factor Identification Flowchart of DUPT

By promoting supply chain emission

reductions and product carbon foot-

Opportunities in Increase in operating revenue: print certification to meet procure- The Company may enhance the

Green Supply Chains ment requirements of oil and gas cus- ability to obtain customer orders Environmental Monitoring and Management

and Low-Carbon tomers for low-carbon equipment Medium Medium term improve brand premium and

Certification the Company can enhance market obtain priority in green procure-

access opportunities and brand pre- ment. In strict accordance with national pollutant discharge permit management requirements DUPT has formulated

mium. environmental self-monitoring plans clarifies monitoring points and frequency and regularly entrusts qualified third-party

testing institutions with CMA certification to conduct monitoring ensuring that monitoring data are authentic accurate

and valid. The Company promptly enters monitoring data and reports into the Shandong Provincial Pollutant Discharge

Enhancement of Environmental Compliance Permit System as required voluntarily accepts supervision from the public and regulatory authorities and continuously improves the environmental compliance level.Management

Environmental Impact Assessment

Identification of Environmental Factors

DUPT has established and implemented the Procedure for the Identification Evaluation and Control of Environmental DUPT strictly complies with national laws and regulations on environmental protection for construction projects and fully

Factors to create a standardized mechanism for the identification scientific evaluation and management of environmental implements the environmental impact assessment and the "three simultaneities" management system for environmental

factors. The Company organizes environmental factor identification and evaluation annually and screens and determines protection. Environmental impact assessments are conducted in accordance with applicable laws and regulations at the

a list of significant environmental factors based on clear and quantitative evaluation criteria. For identified significant initiation stage for new construction reconstruction and expansion projects and environmental protection facilities are

environmental factors the Company implements effective control through multi-level measures such as formulating planned constructed and put into operation simultaneously with the main project during the design construction and

environmental objectives and management programs implementing operational control procedures and improving commissioning stages. Upon project completion the Company organizes professional institutions to conduct environmental

emergency preparedness and response systems ensuring the foresight adaptability and effectiveness of the Company's protection acceptance and monitoring to ensure that all pollutant emissions continuously comply with national standards

environmental management system. thereby promoting the harmonious integration of corporate development and environmental protection.PAGE PAGE

39 40Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Identification of Potential Environmental Hazard Key Performance

Key Performance Environmental Emergency Drills: 2 Number of Participants in Environmental Emergency Drills: 89

To enhance the effectiveness of the environmental management system

DUPT continuously organizes on-site environmental inspections and Comprehensive HSE Hazard Inspections: 125

specialized risk assessments covering the entire production process. For Potential Environmental Hazards Identified:

environmental hazards identified during inspections the Company

establishes ledgers one by one clarifies responsible departments and 1403

implements rectification within specified time limits thereby continuously Rectification Pass Rate of Potential Project Case Emergency Response Drill for Phosphating Solution Leakage

improving proactive prevention capabilities and effectively reducing

environmental compliance risks. Hazards: 100 % In September 2025 the Company carried out a practical

emergency response drill for phosphating solution leakage

outside Workshop No. 1. The drill covered early warning and

Case Identification and Rectification of Potential Hazards alarm personnel evacuation emergency response and

material deployment. The overall drill process was efficiently

coordinated with clear personnel responsibilities and

In November 2025 during an on-site inspection of the resin proficient operations. Emergency response procedures were

application workshop department managers discovered implemented smoothly achieving the expected objectives

that dripping during adhesive application was a significant and effectively verifying the operability of the emergency

issue posing a pollution risk. The workshop immediately response plan.implemented rectification measures: plastic sheets replaced

daily were laid at locations prone to adhesive dripping and

adhesive collection cartons were installed beneath stator

coating positions to effectively collect drips control pollut-

ant diffusion at the source and improve on-site environ- Training on Environmental Compliance

mental management levels.DUPT deeply integrates environmental protection principles into daily Key Performance

Before Rectification After Rectification operations and management. By regularly organizing training on

environmental regulations pollution control and on-site operational Training on Environmental Protection: 4 Sessions

Environmental Emergency Response standards the Company continuously strengthens all employees' Participants in Training on Environmental

environmental awareness and sense of responsibility. Based on

compliance cases from production scenarios the Company promotes Protection: 102 Person-times

DUPT has established an environmental emergency management system in strict accordance with laws and regulations environmental knowledge dissemination and guides employees to Duration of Training on Environmental

such as the Emergency Response Law of the People's Republic of China. The Company has formulated and continuously translate environmental management requirements into conscious daily

improved the Emergency Response Plan for Environmental Incidents clarifying the emergency organizational structure practices. Protection: 816 Hours

response procedures and graded response mechanisms to ensure efficient and orderly emergency response and

post-incident recovery in the event of emergencies. To enhance practical emergency response capabilities the Company

regularly organizes special drills and emergency training strengthens risk prevention awareness and emergency response

skills among all employees and continuously optimizes emergency resource allocation and coordination mechanisms. Case Hazardous Waste Knowledge and On-site Management Series –"Explaining the Law Through Cases"

General Commander

In March 2025 the Company organized hazardous waste

management training under the theme of "explaining the law

through cases". Through the analysis of typical cases the

Deputy Chief Commander training effectively enhanced managers' awareness of risk

prevention and control related to hazardous waste leakage and

their compliance handling capabilities by explaining the

requirements for the classification hazards and on-site

Communication Security and Logistics Support Emergency management of hazardous wastes.and Liaison Evacuation Team Medical Aid Team Team Site Rescue Team Monitoring TeamTeam

Organizational Structure for Emergency Response of DUPT

PAGE PAGE

41 42Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Promotion of the Control of Wastewater Case Recycling of Wastewater from Boiler Room

Waste Gas and Solid Waste Emissions The Company implemented a water resource recycling renovation for wastewater discharged from the boiler room

purification system. By connecting pipes at the drainage outlet to divert wastewater into the washing pool of Plant No.

4 and installing dedicated irrigation valves in the greenbelt a dual-path utilization model of "primarily for washing

Control of Wastewater Emission supplemented by irrigation" was established. After the renovation the annual water costs are reduced by approximately

RMB 583.44 effectively improving wastewater utilization efficiency and reducing tap water consumption.DUPT standardizes wastewater discharge management in strict alignment with national and local environmental NaOH

protection laws regulations and discharge standards such as the Law of the People's Republic of China on the Prevention H2S04 PAM

and Control of Water Pollution and the Emission Standard of Pollutants for Electroplating (GB 21900-2008). Wastewater

generated during the Company's production and operation mainly includes chromium-containing process wastewater

and general domestic sewage. To effectively control wastewater discharge the Company has constructed a Water Reaction Adjustment Inclined Tube collecting tank Tank Tank Sedimentation Tower

chromium-containing wastewater treatment system and an integrated wastewater treatment system and regularly

entrusts qualified third-party testing institutions to conduct monitoring to ensure that all types of wastewater meet Sludge Filtration and

discharge standards after treatment. Intermediate Water Tank Thickening

During the Reporting Period wastewater generated from the Company's production and operations was treated and

discharged into the municipal sewage pipeline after meeting discharge standards with a compliant wastewater discharge Integrated Sewage Treatment Plant Mechanical Filter Sludge Treatment by

rate of 100%. Qualified Entities

Wastewater Discharge 2023 2024 2025 Unit Desalination Tank Ultrafiltration Device Resin Protector Activated Carbon Filter

Wastewater Discharges 56834.00 46243.00 56639.00 Ton Wastewater Treatment Process Flowchart

Wastewater Discharge Intensity 100.23 69.31 78.54 Ton/RMB 1000000

revenue Control of Waste Gas Emission

DUPT has established a sound waste gas management system in strict compliance with applicable laws regulations and

Types of Wastewater Pollutant 2023 2024 2025 Unit discharge standards such as the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution

the Integrated Emission Standard of Air Pollutants (GB 16297-1996) and the Regional and Integrated Emission Standard

Chemical Oxygen Demand (COD) 11.90 5.90 10.00 Ton of Air Pollutants (DB 37/2376-2019).To address major emission sources generated during production—such as chromic acid mist acid mist particulate matter

Five-day Biochemical Oxygen 3.19 4.25 5.60 Ton and waste gases from natural gas boilers—DUPT has installed a range of treatment facilities including grid-type chromic

Demand (BOD?) acid waste gas purification and recovery units chromic acid mist purification towers water curtain spray treatment systems

baghouse dust collectors for polishing dust sulfuric acid mist neutralization and purification towers and waste gas

Suspended Solids 2.55 1.68 3.12 Ton treatment equipment for steam generators. Through standardized operation and regular maintenance the Company

ensures that all types of waste gases are effectively treated and discharged in compliance with standards.Ammonia Nitrogen (NH?-N) 0.01 0.39 0.40 Ton DUPT formulates self-monitoring plans in accordance with pollutant discharge permit requirements and regularly entrusts

qualified third-party institutions to conduct monitoring. During the Reporting Period the waste gas pollutants generated

Total Phosphorus (Calculated at P) / 5.35 5.50 Ton by the Company in production and operation processes were all discharged in compliance with applicable standards

realizing a 100% compliance rate of waste gas emissions.pH 7.40 7.40 7.50 /

Waste Gas Emissions 2023 2024 2025 Unit

Waste Gas Emission 3.38 3.47 3.67 Ton

Waste Gas Emission Intensity 0.0060 0.0052 0.0051 Ton/RMB 1000000 revenue

PAGE PAGE

43 44Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Types of Exhaust Pollutants 2023 2024 2025 Unit Control of Waste Emission

Nitrogen Oxide (NOx ) 0.62 0.71 0.72 Ton

Disposal of General Waste

Volatile Organic Compounds (VOC) 1.88 1.90 2.05 Ton

Thoroughly implementing applicable laws and regulations including the Law of the People's Republic of China on Prevention

and Control of Environmental Pollution by Solid Wastes DUPT has established the General Solid Waste Management System

Particulate Matter (PM) 0.72 0.70 0.74 Ton to standardize the classification collection storage transfer and disposal of general solid waste. During the Reporting

Period all general industrial solid waste generated by the Company was entrusted to qualified third-party entities for

Sulfuric Acid Mist (H2SO4 ) 0.16 0.16 0.16 Ton compliant transportation and disposal achieving a 100% compliance rate for general solid waste disposal. This effectively

prevents environmental pollution risks associated with solid waste and upholds our commitment to resource recycling and

environmental responsibility.Measures for Disposal of General Industrial Solid Waste

exhaust air Waste Gas Collection System Fans Purification Tower Exhaust Pipe Identify solid waste not listed in the National Catalogue of Hazardous Wastes or solid

waste determined to lack hazardous characteristics in accordance with the identification

Identification and criteria of GB 5085 and the identification methods of GB 5086 and GB/T 15555

Determination

Water pump Liquid Tank Sewage treatment Transfer solid waste to designated temporary storage points after generation according

to categories and attributes

Take prevent rainwater infiltration leakage scattering and loss in storage sites and

Waste Gas Treatment Process Flowchart place environmental protection signs

Collection and Storage Prohibit the mixing of general solid waste with hazardous waste or arbitrary dumping

DUPT continuously increases investment in environmental protection resources deepens the application of emission piling or landfilling

reduction technologies in production processes and innovates treatment models successfully earning the designation of

an "A-Level Enterprise for Atmospheric Environmental Performance" in the rubber products manufacturing industry. To Designate departments to conduct regular inspections and ensure accurate classifica-

further consolidate A-rated performance achievements and fulfill responsibilities for atmospheric pollution prevention and tion and orderly stacking of all types of waste

control the Company has specially formulated and implemented the Administrative Provisions for Class A Enterprises in Establish management ledgers to record sources types quantities and destinations of

Atmospheric Environmental Protection Performance to clarify operational standards and management responsibilities solid waste to ensure full-process traceability

promote systematic and normalized atmospheric environmental protection governance and support the Company's green Dispose of recyclable waste in accordance with the Waste Materials Disposal Procedure Disposal and Recycling

low-carbon and high-quality development. of the Company

Transport and dispose of non-recyclable waste through qualified third-party entities

Waste Gas Treatment Measures

Waste Emission 2023 2024 2025 Unit

Fully replace traditional boilers with low-nitrogen oxide

steam generators to significantly reduce the initial

generation of nitrogen oxides Volume of General Waste Generated 2000.00 2100.00 2150.00 Ton

Introduce an internationally advanced "Rotary Concen-

trator + Regenerative Thermal Oxidizer (RTO) integrated

unit" waste gas treatment system to achieve efficient Disposal Volume of General Waste 2000.00 2100.00 2150.00 Ton

adsorption and complete oxidation of volatile organic

compounds (VOCs) with emission concentrations far

lower than national standards

Implement fully enclosed retrofits for internal mixers and Total Volume of Recycled General Waste 1800.00 1850.00 1900.00 Ton

automated upgrades to the coating process to further

improve VOCs collection efficiency and reduce fugitive "Rotary Concentrator + Regenerative Thermal

emissions Oxidizer" Integrated Unit Percentage of Recycled General Waste 90.00 88.10 88.37 %

PAGE PAGE

45 46Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Disposal of Hazardous Waste Waste Emission 2023 2024 2025 Unit

In accordance with regulatory requirements such as the Standard for Pollution Control on Hazardous Waste Storage (GB Quantity of Hazardous Wastes Generated 92.85 105.56 122.56 Ton

18597-2023) DUPT has formulated management system documents including the Environmental Pollution Prevention

Accountability System for Hazardous Waste and the Hazardous Waste Management System to standardize the identification

classification collection storage transfer and disposal management of hazardous waste. Under the coordination of the Volume of Hazardous Waste Disposed 100.77 107.96 119.20 Ton

HSE Management Department a Hazardous Waste Pollution Prevention Leading Group has been established to take overall

responsibility for hazardous waste management. By clarifying job responsibilities strengthening process control and

establishing traceable ledgers the Company ensures lawful and compliant operations and prevents pollution risks.Note: The difference between the disposal volume and generation volume of hazardous waste in 2025 is due to cross-year transfer of some waste. All hazardous waste has been disposed of in compliance with relevant regulatory requirements

During the Reporting Period all hazardous waste generated by DUPT was entrusted to qualified third-party entities for

compliant transportation and disposal achieving a 100% compliance rate for hazardous waste disposal.Advancement of Green Development Practices

Team Leader: General Manager

Promotion of Green Office

Deputy Team Leader: Deputy General Manager in charge of Environmental Protection

Adhering to the philosophy of green develop-

ment DUPT continuously deepens green Measures for Green Office

Head of HSE Head of the Supply Head of the Production HSE Specialist office practices and actively implements re-

Management Management Administration Managers of Each etc. source conservation measures such as energy

Department Department Department Department water and paper conservation effectively re-

ducing energy and material consumption in

Hazardous Waste Management Leading Group daily operations. In addition the Company

standardizes the setup of recycling points for

Hazardous Waste Disposal Measures hazardous waste such as used batteries.Through publicity and practice the Company

strengthens employees' environmental re-

sponsibility awareness and fosters a green

Accurately identify and determine hazardous waste in accordance with the National Catalogue corporate culture that prioritizes resource

Identification and of Hazardous Wastes and the identification criteria stated in GB 5085 series standards conservation and environmental friendliness.Determination Used Battery Recycling Bin Slogan for Electricity and Paper Conservation

Store in designated locations and affix hazardous waste labels containing information such

as name code number and hazard characteristics

Provide storage facilities with rainproof seepage-proof and loss-prevention functions equip

firefighting facilities and place prominent signs Implementation of Green Transportation

Prohibit the mixing with general solid waste and store incompatible hazardous waste

Collection and Storage separately DUPT is committed to building a green transportation system. Through measures such as implementing strict access

Designate special personnel for management and assign trained and qualified operators to standards for transport vehicles promoting clean energy vehicles and optimizing transportation models the Company

take posts with personal protective equipment reduces carbon emissions and environmental impacts in the logistics process. Furthermore the Company promotes

innovative transportation models such as intensive loading regional centralized distribution and information-based

Establish fully traceable ledgers to record information such as sources quantities and integration of route resources to improve vehicle utilization efficiency reduce empty runs and ineffective transportation

destinations and promote low-carbon and clean transportation processes at the structural level.Entrust disposal to qualified entities and sign contracts and implement the transfer manifest

system in accordance with applicable laws and regulations Green Transportation Initiatives

Formulate the Hazardous Waste Emergency Response Plan and conduct regular drills

Transfer and Disposal evaluations and revisions Access Control: implement access control management for freight vehicles and prohibit vehicles that fail

Promote source reduction and develop management plans to reduce the volume and harm to meet emission standards from entering the plant premises

of waste generated

PAGE PAGE

47 48Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Green Transportation Initiatives Building of a Green Enterprise

Cleaner Vehicles: prioritize the admission of new energy and clean energy vehicles and reduce the DUPT closely aligns with the "carbon peaking and carbon neutrality"

proportion of high-emission vehicles in use strategic goals and integrates a full-chain green industrial layout

across green design manufacturing and supply chain processes.Transport Intensification: implement weekly shipment planning and consolidate cargo on the same During the Reporting Period the Company achieved significant results

routes to reduce the use of dedicated vehicles and improve load factors in energy conservation consumption reduction and low-carbon

operations successfully obtained both the Green Factory and the

Regional Diversion Optimization: rely on regional service stations and adopt a "centralized dispatch + Green Supply Chain Management System Certifications and was rated

terminal distribution" model to replace scattered direct transportation as an AAAAA-level Green Enterprise with green development

capabilities receiving authoritative recognition. Moving forward the

Company will continue to deepen the integration and implementation

IT Integration: integrate carrier route resources through an IT platform to facilitate cargo source sharing of management systems drive coordinated carbon reduction across

and improve transportation efficiency the entire value chain and provide a practical model for the green

transformation of the industry. Green Factory of Shandong Province

Promotion of Clean Production

DUPT has vigorously advanced clean production. Through Environmental Benefits of Clean Production

measures such as process optimization clean energy sub-

stitution and comprehensive resource utilization the Com- Reduction in Volatile Organic Compound (VOC) Emissions:

pany has reduced pollutant emissions at the source im- 1.4122 tons/year

proved resource utilization efficiency and continuously

lowered the environmental loads during production pro- Reduction in General Solid Waste (Steel Scrap) Generation:

cesses. As of the end of the Reporting Period the Company 3 tons/year

has completed a clean production audit acceptance

achieving phased reductions in major pollutant emissions Reduction in Hazardous Waste (Waste Cleaning Liquid) Green Factory Management System Green Supply Chain Management Green Design Product Management

0.08 Certification System Certification System Certificationand improvements in both environmental and operational Generation: tons/year

benefits.Achievement of Environmental Performance

Targets

Case Full-Process Emission Reduction Practices in the Adhesive Injection Workshop DUPT regularly conducts quantitative assessments of environmental impacts arising from business operations and sets

quantifiable environmental targets and indicators based on assessment results. Simultaneously the Company has

DUPT implemented a full-process green trans- formulated the Performance Measurement and Monitoring Control Procedure to monitor and measure the achievement of

formation in the adhesive injection workshop environmental targets and indicators thereby driving the continuous optimization and improvement of environmental

establishing a cleaner production model cover- performance.ing source substitution process control and

end-of-pipe treatment. Equipped with online Environmental Metrics and Targets in 2025 Achievement

monitoring devices and an intelligent access

control system the workshop implements smart Zero Recordable Environmental Incidents Achieved

closed-loop monitoring of pollutant emissions

and logistics transportation enhancing the vi- Zero Environmental Administrative Penalties Achieved

sualization of environmental data and promoting

the dual objectives of environmental protection Compliant Disposal of Hazardous Wastes Achieved

and refined management across production

processes.PAGE PAGE

49 50Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Recycling of Resource Material Management Measures

Establish a graded raw material storage system and clarify inbound and outbound

Storage of procedures storage principles and job responsibilities

Material Utilization Raw Materials Conduct six warehouse safety inspections each month in terms of storage conditions

labeling and safety protection with a 100% rectification rate for identified hazards

Based on institutional development DUPT systematically optimizes material and packaging management processes and

promotes efficient resource utilization. The Company has formulated systems such as the Specifications for Material Adopt a "self-pickup for bulk materials + annual bidding for qualified carriers" model for

Warehousing Management the Specifications for On-site and Inbound/Outbound Management of Raw Material Yard off-site transportation to ensure the transportation safety of core raw materials and the

(Warehouse) and the Measures for the Handling of Recyclable Waste Materials to standardize the entire material Transportation stability of the supply chain

management process from receipt to recycling and implement the standardized and proceduralized handling of recyclable of Raw

Materials Promote green transportation for in-plant transfer: use low-energy rail-guided vehicles for waste materials.steel distribution and electric forklifts for other materials to reduce carbon emissions and

In the material management process DUPT implements warehouse optimization and the first-in first-out principle energy consumption

strengthens dynamic inventory monitoring and regular stocktaking and establishes prevention and handling mechanisms

for slow-moving materials to optimize inventory structure improve material turnover efficiency and reduce resource

occupation and waste. Requisition Establish a product BOM information database to achieve precise matching between raw

and Use of material requirements and production plans

In packaging management DUPT has issued the Green Packaging Warehousing and Transportation (Planned Raw Rely on the ERP system to digitally manage material requisition and strictly implement BOM

Implementation) Scheme and the Specifications for the On-site Management of Packaging Box Storage Areas and Materials benchmarks to ensure demand-based requisition and precise proportioning

established a dedicated implementation department for green packaging and coordinated standardized control across

the entire process of packaging—including procurement operations transportation recycling and reuse—thereby

continuously reducing the carbon footprint and environmental impacts of packaging processes and steadily improving the Packaging

level of green packaging management. Reduction Implement a "differentiated packaging by transport mode" strategy for export business and

and Recycling

of Waste promote packaging reduction and cost savings while ensuring transportation safety

Packaging

Usage of Packaging Materials Materials

Indicator Name 2023 2024 2025 Unit

Total Use of Packaging Materials 5931.00 5936.40 4785.00 Ton

Consumption Intensity of 0.1046 0.0890 0.0664 Tons/RMB 10000 revenue Case Project to Streamline Packaging for Export Products via Land Transport

Packaging Materials

To put the philosophy of green operations into practice DUPT optimized the previously standardized packaging model

for export products. By analyzing the differences in protective requirements between land transport and sea transport

the Company eliminated the plastic sheeting wrapping step in land transport packaging while retaining core protective

structures (fixing frames + protective barriers) and optimizing assembly processes. Following the optimization the

labor time required to package a single product was reduced to 15 minutes and plastic sheeting consumption for each

batch of land-transported products was reduced to zero significantly lowering resource consumption and improving

packaging efficiency.Case Recycling and Reuse of Used Wooden Cases and Pallets

DUPT has established a sustainable resource management model centered on "recycling sorting and repurposing"

and set up a dedicated area for collecting used wooden products. To meet internal shipping needs for components

repairable used wooden boxes and pallets were preferred and reprocessed through damage repair size adjustment

and protection reinforcement to meet transportation protection requirements thereby reducing new timber

procurement effectively promoting resource recycling and reducing waste generation.PAGE PAGE

51 52Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Case Green Packaging Practices Rated as "Excellent" Measures for Energy Conservation and Consumption Reduction

In accordance with national standards such as GB/T 37422-2019 Methods and Construct rooftop photovoltaic power generation projects to increase the self-sufficiency rate of clean energy

Criteria for Green Packaging Assessment DUPT prioritized the procurement of

recyclable and biodegradable packaging materials and established a comprehen- Upgrade energy-saving technologies for key equipment such as steam generators and industrial furnaces to

sive packaging recycling mechanism. According to the third-party assessment achieve thermal energy recycling

results the comprehensive score for green packaging reached 94 points earning

the Company an "Excellent" rating as a green packaging implementation entity Deploy the MES system to realize real-time monitoring and dynamic optimization of energy efficiency and material

with a significant reduction in environmental impact and operational costs in the consumption

packaging process. Promote digital traceability across the entire product lifecycle in conjunction with ERP PLM and other systems to

support closed-loop resource utilization

Carry out multi-dimensional energy performance diagnostics and formulate and implement the Prioritized List of

Energy Performance Improvement Opportunities

Prioritize the procurement and use of energy-efficient and environmentally friendly raw materials products and

Energy Utilization services

Energy Management System

Case Steam Generator Technology Upgrade Supporting Improvements in Energy Efficiency and Waste Emissions

In strict accordance with laws and regulations such as the Energy Law of the

People's Republic of China and the Renewable Energy Law of the People's Republic The Company adopted high-performance steam generators

of China DUPT has formulated supporting documents such as the Energy capable of linear steam output adjustment ranging from 20%

Management Work System and the Energy Measuring Instrument Management to 100%with the minimum continuous steam output as low

System to improve the energy management system framework. The HSE as 200 kg/h. Equipped with the FPTS flow-through chamber

Management Department serves as the primary energy control department with technology this equipment effectively suppresses the

the Deputy General Manager acting as the Energy Management Representative. generation of nitrogen oxides during combustion with NOx

An Energy Management Leading Group has also been established to oversee emission concentrations below 30 mg/m3. Additionally with

energy strategic planning and decision-making on major matters. The primary the condensate heat recovery technology the latent heat of

production supervisors of each workshop and work team have been designated flue gas is fully absorbed achieving a thermal efficiency of

as energy management responsible persons within a tiered management 100.27% with waste gas temperature lower than 60°C

mechanism with duties such as monitoring energy consumption implementing realizing efficient energy utilization and clean emissions.measures and evaluating outcomes. Through the combination of institutional

regulation and organizational support the Company continuously improves the

standardization and execution effectiveness of energy management. As of the

end of the Reporting Period the Company has passed the ISO 50001:2018

Energy Management System certification. ISO 50001?2018 Energy Management

System Certification Certificate

Practices of Energy Conservation and Consumption Reduction

Focusing on energy structure optimization and process energy efficiency improvement DUPT promotes energy conservation

and consumption reduction practices across the entire production chain. By integrating clean energy applications

energy-saving retrofits of key equipment and digital management systems the Company achieves precise control over

energy consumption and carbon emissions.PAGE PAGE

53 54Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Energy Consumption Metrics and Targets Measures for Water Resource Management

DUPT places high importance on energy consumption management and efficiency improvement during operations. The DUPT actively responds to the national call to build a water-saving society. Through measures such as technical

Company has established an intelligent data monitoring system to continuously track energy consumption across all stages transformation process optimization and cultivation of employees' water-saving awareness the Company continuously

and strictly controls energy consumption through technical upgrades and management optimization. improves water resource utilization efficiency and achieves scientific management of water usage structure.Energy Consumption 2023 2024 2025 Unit Water Conservation Measures

Total Energy Consumption 2934.48 3090.19 3018.71 tce Promote reclaimed water reuse systems to realize cascade utilization and recycling of water resources.Energy Consumption Intensity 0.0518 0.0463 0.0419 tce/RMB 10000 revenue Enhance daily maintenance and management of water-using equipment and strictly check for any leakage

emission dripping or wastage.Renewable Energy Consumption - - 16.87 tce

Prioritize the procurement and use of water-saving and environmentally friendly raw materials products

and services.Note: The total energy consumption is calculated based on the conversion factors specified in GB/T 2589-2020 General Rules for Comprehensive Energy

Consumption Calculation a national standard of the People's Republic of China.Post water-saving slogans to enhance employees' awareness of water conservation.Energy Usage

Energy Types 2023 2024 2025 Unit

Natural Gas 48.00 40.00 34.00 10000 m3

Water Resource Metrics and Targets

Gasoline 34.99 50.31 50.27 Ton

In the principle of "prioritizing water conservation and realizing water recycling" DUPT continuously improves water use

Diesel 176.08 174.83 208.02 Ton management through measures such as process optimization and facility upgrades. In the future we will steadily advance

water-saving technical transformation and efficiency improvement work in combination with advanced industry practices

Total Purchased Electricity 16176015 18140080 17677545 kWh and our own operational needs thereby contributing to the achievement of sustainable water resource utilization targets.Photovoltaic Power Generation - - 137278 kWh Indicator 2023 2024 2025 Unit

Note: The Company's photovoltaic project was officially put into operation on November 15 2025. The statistical period for photovoltaic power generation

data in 2025 is from November 15 2025 to December 31 2025 Total Water Consumption 60745 76513 85483 Ton

Tons/RMB 10000

Water Resource Utilization Water Consumption Intensity 1.0713 1.1467 1.1854 revenue

Water Resource Management System Consumption of Fresh Water 60745 66913 70983 Ton

In strict accordance with national laws and regulations such as the Water Law of the People's Republic of China and relevant Total Water Circulation and Reuse - 9600 14500 Ton

standards DUPT standardizes water resource management and focuses on strengthening the conservation protection

and rational utilization of water resources. Water used in the Company's production and operations mainly comes from

municipal water supply and internal recycled water covering production manufacturing cooling circulation daily office

operations and living services. During the Reporting Period no direct or indirect significant water resource impact incidents Water Recycling and Reuse Rate - 12.55 16.96 %

occurred in the Company during the water withdrawal use drainage and storage processes and the Company effectively

fulfilled responsibilities for water conservation and protection. Note: The company's water reuse system was officially put into use in May 2024 and the total water circulation and reuse is an estimated figure.PAGE PAGE

55 56Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Ecological and Environmental Protection

Case Integrated Solid Waste Crushing and Backfilling Supporting Ecological Protection and Biodiversity Restoration in Mining Areas

DUPT attaches great importance to the impacts of operational activities on biodiversity and actively responds to the call

of the Kunming–Montreal Global Biodiversity Framework. In strict accordance with laws and regulations such as the Opinions The "Integrated Solid Waste Crushing and Backfilling Solution" of the Company realized resource utilization of mine solid

on Further Strengthening Biodiversity Conservation and the Law of the People's Republic of China on the Prevention and waste through a full-chain treatment system. It eliminated land occupation dust generation and leachate pollution

Control of Soil Contamination the Company systematically advances biodiversity protection efforts. The Company also caused by traditional stacking from the source reduced damage to surrounding soil water bodies and vegetation and

conducts biodiversity risk assessments and hazard investigations strengthens full-process control from project lowered human disturbance to natural habitats thus creating conditions for ecological reconstruction in mining areas

environmental impact assessments to operational emissions ensures that pollutants are discharged in compliance with and effectively promoting local biodiversity protection and restoration.standards and effectively prevents adverse impacts on surrounding ecosystems.During the Reporting Period the Company continued to improve the ecological monitoring and assessment system and Integrated Blending and Backfilling Solution Supporting Hydrological Stability and Ecological Case Restoration in Mining Areas

the ecological monitoring network and monitored environmental elements such as air surface water soil and groundwater

in the surrounding areas of production and operation sites. In 2025 there were 40 ecological monitoring points and 893

sets of monitoring data were obtained. Monitoring results showed that the Company's production and operations did not The "Integrated Blending and Backfilling Solution" of the Company provided reliable technical support for coal mine

affect local ecological functions. Moreover the Company actively promoted eco-friendly operations through technological water control goaf management and surface subsidence mitigation through automated precision control and remote

innovation reduced land occupation soil disturbance and environmental pollution and supported ecological restoration pumping. It reduced mining-induced disturbances to groundwater and surface ecosystems at the source minimized

and biodiversity protection at mines thereby promoting coordinated development between industrial production and the the risks of subsidence and pollution maintained regional soil stability and hydrological balance and created stable

natural ecosystem. habitats for vegetation restoration and biodiversity conservation.PAGE PAGE

57 58Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

06

Reshaping Industrial Ecosystem through

Resilient Supply Chains and Delivering

Quality Excellence through Continuous

Innovations

Adhering to the values of " customer-centered and striver-ori-

ented" DUPT drives the technological advancement in drilling

and directional drilling through innovation strictly controls

product quality and service standards and leverages an effi-

cient and collaborative supply chain system to provide stable

and reliable equipment and engineering solutions for global

energy exploration and development continuously creating

greater value for customers.Responded UN Sustainable Development Goals (SDGs):

PAGE PAGE

59 60Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

With strong innovation capabilities DUPT has successively been recognized as the "National High-Tech Enterprise" the

Enhancement of Innovation Engine "National 'Little Giant' Specialized and Sophisticated Enterprise that Produces Novel and Unique Products" the

"Single-Champion Manufacturing Enterprise of Shandong Province" etc. In terms of innovation platforms the Company

owns provincial R&D platforms such as the Recognized Enterprise Technology Center of Shandong Province as well as

municipal innovation carriers such as the Dezhou Wellhead Equipment Engineering Research Center. Relying on the

R&D Innovation Management System Provincial Postdoctoral Innovation Practice Base the Company gathers high-end talent to comprehensively support core technology breakthroughs and the commercialization of innovation achievements.DUPT is committed to establishing a systematic and standardized R&D innovation management system. The Company has

formulated and implemented documents such as the R&D Project Management System and strictly enforces the Project

Leader Accountability System to achieve closed-loop management throughout the entire project lifecycle—from proposal

and feasibility studies to project initiation review and acceptance. In terms of organizational structure the Company has

established an innovation platform centered on the Technology Center with multiple specialized R&D departments. Through

a flat management model of "Technical Director in Charge Technical Managers for Assistance" the Technical Director is

granted authority over R&D decision-making and resource allocation. Concurrently the Company has established a

normalized cross-departmental collaboration mechanism to integrate technical expertise shorten management chains

efficiently promote knowledge sharing and collective innovation and stimulate the creativity of R&D teams. High-tech Enterprise National "Little Giant" Specialized and Sophisticated

Enterprise that Produces Novel and Unique Products

Technology Center

Technology Committee Expert Committee

Technological Innovation Demonstration "One Enterprise One Technology" R&D Center

Research Drilling Tools Equipment Surface Precision Process Rubber Product Enterprise of Shandong Province of Shandong Province

Institute of Technology Technology Technology R&D Technology Laboratory Testing

Science and Center Center Center Laboratory Laboratory Center

Technology Identification of Innovation Risks and

Opportunities

Likelihood

Risk Type Description of Risk Impactof Financial Impact Countermeasures

Occurrence Cycle

Organizational Chart of the Technology Center Deepen industry–university–re-

The R&D of oil and gas Decline in operating profit: search cooperation and jointly

equipment for extreme en- Failure to launch new prod- build laboratories to overcome key

vironments—such as ul- ucts on schedule may result technical challenges

tra-high temperatures high

Technology in missed market opportuni- Establish phased technical review

Key Performance pressures and high corro- Medium ties and hinder the Compa- and industrialization evaluation

R&D Risk sion—is highly challenging Medium to long ny's revenue growth. mechanisms to adjust R&D direc-

and time-consuming. Failure term Increase in operating costs:

28.0775 3.89 tion and resource allocation in a to achieve breakthroughs in Prolonged high R&D invest-R&D Investment: RMB million Proportion in Operating Revenue: % timely mannerkey technologies or industri- ment without expected re- Conduct small-scale pilot tests to

alization may lead to project sults in R&D expenses ex-

28 verify technical feasibility and in-failure.New R&D Projects Initiated: ceeding the budget. dustrialization pathways

PAGE PAGE

61 62Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Likelihood

Risk Type Description of Risk Impactof Cycle Financial Impact Countermeasures Management of Innovation Risks OpportunitiesOccurrence

The industry is rapidly evolv- Focusing on four categories of risks—technology market resource and intellectual property risks DUPT has established

ing toward intelligence elec- Establish a technology trend a full-process R&D risk management system covering "identification – evaluation – monitoring – response". This system is

trification and low-carbon Decline in operating profit: monitoring team to regular-

transformation. Failure to Technological lag weakens ly analyze industry develop- deeply integrated into the Company's overall management and quality systems and supported by the PLM system to achieve

Technology timely deploy cutting-edge the ability to command pre- ments traceable management of R&D documents records and changes.Medium Short term

Iteration Risks technologies such as electric mium prices reduces market Increase R&D investment in

drive and digitalization may share and impacts operating emerging technologies such

result in outdated products profit. as electric drive and digita-

and declining competitive- lization Management Processes Core Contents

ness.Decline in operating profit: Establish competitive com- Risk Identify risks through brainstorming expert interviews historical data review and

Loss of core R&D personnel Disruptions in key technolo- pensation and medium- to

Identification patent intelligence analysis

due to insufficient incentives gies lead to delays in R&D long-term incentive mech-

or limited development op- projects and product launch- anismsTalent

portunities will directly affect Low Medium es affecting sales revenue Improve career develop-

Turnover Risk R&D progress and the confi- term and market share. ment pathways and training Risk Use a risk matrix to evaluate risks from two dimensions: the likelihood of

dentiality of core technolo- Increase in operating costs: systems for R&D personnel Assessment occurrence and the impact on project schedule cost and quality

gies. Additional investment re- Strengthen technical infor-

quired for recruitment and mation management and

training increases labor costs. confidentiality systems

Track R&D projects throughout the process with PLM ERP and other systems

Risk Establish a regular review mechanism through weekly meetings and milestone

Monitoring reviews

Closely monitor high-risk items and regularly report them to the Management

Likelihood

Opportunity Type Description of Opportunity of Impact Financial Impact Avoidance: Conduct rigorous patent searches and implement design-around

Occurrence Cycle Risk strategies to circumvent infringing technical pathways

Response Mitigation: For unavoidable technical risks reduce the probability of failure by

With the advancement of the na- increasing pilot testing and strengthening validation

tional deep-earth and deep-sea Acceptance: Accept low-level risks or risks for which no other strategies can be

Opportunities in energy strategy market demand Increase in operating profit: High-end implemented

for high-end downhole motors drilling tools feature significant techni-

Deep-Earth and capable of withstanding extreme

High Long term cal barriers and strong pricing power

Deep-Sea environments is surging. The enabling the Company to optimize

Company can leverage existing product mix and improve overall gross

Development technical expertise in drilling tools margin.to enter high-value-added niche

markets.With a clear trend toward inte- Increase in operating revenue: The

grating technologies such as

Opportunities in development of "intelligent drilling logging-while-drilling (LWD) tools" enhances single-product value

the Convergence of and digital drilling with tradi-

tional tools drilling tools are Medium Medium to

and opens new business models

Intelligent such as data services and predictive provided with "sensing trans- long term maintenance based on data connec-

Technologies mission and control" capabili- tivity achieving dual revenue growth ties to improve operational ef- through "products + services".ficiency and safety.PAGE PAGE

63 64Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Establishment of Innovation Metrics and Targets Composition of R&D Team

Indicator 2025 (Person)

DUPT places technological innovation at the core of strategic priorities maintaining long-term R&D investments at over

3% of operating revenue. Guided by market demand the Company sets and strictly implements annual quantitative Under 30 (exclusive) Years Old 65

innovation targets strengthens intellectual property planning and management and promotes the industrial application By Age

of core achievements. In addition the Company actively participates in major provincial science and technology projects. 30 (inclusive) to 40 (exclusive) Years Old 56

Among these the project titled "R&D and Industrialization of High-Temperature Corrosion-Resistant Deep-Sea/Deep-Earth

Downhole Motors with Intelligent Communication Capabilities" has been approved as a major science and technology

innovation project of Shandong Province demonstrating the Company's R&D capabilities and industrialization potential Bachelor's Degree 110

in the field of cutting-edge technologies. During the Reporting Period all annual innovation targets were achieved as By Educational Background

scheduled. Master's Degree 35

Innovation Metrics and Targets in 2025 Achievement

New R&D Projects Initiated: ≥5 Items 28 Items

Scientific and Technological Achievements Commercialized ≥ 5 Items 30 Items Incentives for R&D Innovation

DUPT has established an innovation incentive system in accordance with systems such as the Measures for the Management

Patent Applications ≥ 15 Cases 32 Cases of R&D Innovation Incentives and the Measures for the Management of Patents Professional Title and Vocational

Qualifications. This system comprehensively covers three key dimensions: projects patents and talent. Project incentives

Patent Implementation and Commercialization Rate ≥ 90% 93% promote technology transformation patent incentives strengthen technical barriers and professional title and honor

incentives stimulate talent potential systematically driving R&D innovation.As of the end of the Reporting Period regarding project incentives several key products and technologies—including

high-pressure flexible hoses zero-pressure hydraulic vibrators and a series of flat valves—successfully passed acceptance

inspections and received grade evaluations. Regarding patent incentives multiple patents—such as "A Drive Shaft Assembly

Optimization of Innovation Support Mechanisms and RSS Downhole Motor" and "A Micro High-Pressure Flat-Plate Valve"—were granted and the corresponding rewards

were disbursed effectively unleashing innovation potential and enhancing the efficiency of R&D commercialization.R&D Team Building

Protection of Intellectual Property Rights

DUPT attaches great importance to the development of the R&D team. Relying on independent R&D institutions the

Company has built a professional R&D team that is well-structured youthful efficient and highly innovative. Led by

intermediate and senior engineers the team brings together more than 100 professionals holding master's and bachelor's In strict accordance with laws and regulations such as the

degrees. With solid technical R&D foundations and rich experience in project management and technical services the team Trademark Law of the People's Republic of China the Patent Law

lays a strong foundation for technological breakthroughs and product iterations. of the People's Republic of China the Copyright Law of the Peo-

ple's Republic of China and the requirements of GB

29490-2023 in combination with the compliance management

Key Performance

policy of "strengthening intellectual property protection and

safeguarding trademark rights" DUPT has established a sys-

153 18.64 tematic intellectual property management system. The Com-Number of R&D Personnel: Persons Percentage of R&D Personnel: %

pany has designated the top executive as the primary respon-

sible person for intellectual property management. The Tech-

Training on Intellectual Property Management System

PAGE PAGE

65 66Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

For special structures in instruments DUPT comprehensively applies advanced processes such as precision multi-axis

nology Center serves as the lead department coordinating all related efforts while each functional department supports machining special electro-processing and laser cladding. While ensuring micron-level dimensional accuracy these

implementation within its respective scope.techniques enhance product assembly sealing performance and wear resistance doubling the service life of key

DUPT has established full-process management systems covering the acquisition maintenance utilization and protection components and extending the working cycle of the entire machine in harsh downhole environments.of intellectual property and continuously improves employees' awareness of intellectual property protection through

regular internal training. In addition based on the PDCA cycle framework compliance reviews are embedded into key busi- Case Process Technology for Non-Magnetic Components

ness process nodes—including project initiation R&D procurement production sales and after-sales—to enable proactive

risk identification and continuous improvement thereby effectively safeguarding the realization of value from innovative

achievements. To address the unique machining challenges of

non-magnetic components the Company has per-

Key Performance sistently tackled these issues to achieve breakthroughs

in key technologies. Taking the azimuthal acoustic LWD

Annual Cumulative Patent Applications: 32 Number of Utility Model Patents: 62 Items drill collar as an example the Company innovatively de-

veloped a dedicated machining process to precisely

Valid Authorized Patents as of the End of the Design Patents: 6 Items machine a series of precision "expanded hole" structures

Reporting Period:1 15 11 along the same axis with depths gradually decreasing Software Copyrights: Items from 84 mm to 18 mm and wall thickness differences of

Invention Patents: 47 Items Trademarks:1 4 Published Papers: 14 up to 29 mm. This breakthrough overcomes the high-precision machining bottleneck for complex irreg-

ular holes providing critical process support for the in-

dustrialization of high-end non-magnetic drilling tools.Case Downhole Motor Recognized as a Patent-Intensive Product

In March 2025 the China Patent Protection Associa- Case Process Technology for Complex Irregular-shaped Components

tion released the 2024 List of Patent-Intensive Prod-

ucts. The downhole motor products of the Company For complex and irregular-shaped components such as

were successfully included in the list for Shandong engineering parameter housings the Company utilizes

Province due to outstanding patent value and eco- four-axis gantry machining centers to achieve the

nomic benefits. Winning this high-value national cer- high-precision intersection of multiple spatial inclined

tification in the national intellectual property sector holes. This ensures that the positional tolerance of pin

not only serves as authoritative recognition of our holes is consistently controlled within <0.05 mm—

technical strength but also demonstrates the remark- equivalent to completing "micro-threading engraving"

able achievements of our long-term commitment to within the spatial scale of a hair's diameter—intuitively

scientific research and innovation. demonstrating the Company's strong technical

capabilities in precision machining.Presentation of R&D and Innovation

Achievements Case Electric-Drive Hydraulic Skid-Mounted Pressurization Unit

DUPT focuses on promoting the innovation and application of

Technical Breakthroughs electric-drive hydraulic skid-mounted pressurization devices in

oilfield pressure-drive processes. During pressure-drive oper-

Leveraging robust technical problem-solving capabilities and breakthroughs in manufacturing processes DUPT efficiently ations at oilfields the Company innovatively applies elec-

transforms highly complex design concepts into precision components with stable performance and reliable quality. The tric-drive hydraulic pressurization technology. A single-cylinder

Company has mastered more than 40 key and difficult machining processes forming a system of specialized process double-acting reciprocating injection pump driven by hydraulic

solutions that are both feasible and reusable. power achieves high-pressure large-displacement injection and

is combined with coordinated operation of vehicle-mounted

In the field of precision machining DUPT possesses industry-leading key technologies such as precision deep-hole skid pump units significantly reducing construction costs and

machining deep-hole gun drilling slender shaft machining deep-hole EDM and spatial inclined hole machining. energy consumption and solving the problem of inefficient de-

Additionally the Company has mastered more than ten special surface treatment and strengthening processes including velopment in mature oilfields.laser cladding supersonic flame spraying anodizing nitriding and Teflon coating.PAGE PAGE

67 68Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Achievement Application Industry Leadership

DUPT continuously promotes product and technology iteration focusing on key scenarios such as deep-earth engineering As a leading enterprise in China's oil and gas drilling and production equipment sector DUPT is deeply engaged in industrial

efficient drilling safe gas production and intelligent pressure-drive operations. The Company has successfully developed technology collaboration and standardization initiatives. Relying on long-term accumulated engineering practice and

and applied multiple innovative products. Through university-industry collaboration material structure optimization and technical systems the Company leads or participates in the formulation and revision of multiple national industry and

the integration of intelligent control systems the Company has significantly enhanced product performance in terms of association standards guiding quality upgrades in segmented fields through technical standard output. In addition

high-temperature resistance efficiency sealing integrity and construction cost-effectiveness. These achievements have leveraging its strengths in adapting to local operating conditions and handling extreme operating environments the

been validated in national major engineering projects and multiple oilfield blocks effectively solving industry pain points Company has built a technical collaboration ecosystem with upstream and downstream partners in the industry chain to

and reducing operating costs and risks. advance the localization of key equipment.Innovative Products Core Technical Advantages Applications and Outcomes Participation in Standards Development Over the Past Five Years

Applied in the Xin'an-1 Well (with the maximum

bottom-hole temperature of 206°C) under the Standard No. Name of Standard Standard Type

High-temperature-resistant "Deep-Earth Engineering" Initiative supporting

stator rubber formulation trans-

High-Temperature breakthroughs in vertical depth exceeding 10000 GB/T 46051-2025 Choke and Kill Hoses and Hose Assemblies National Standardmission shaft material and struc-

Downhole Motors meters tural optimization Provided operational services for specific well

sections of the Take-1 and Chuankou-1 wells Specifications for Flexible Hoses and Hose Assemblies GB/T 46167-2025 National Standard

Used For Fracturing

Included in Shandong Province's List of First-of-

a-Kind Technical Equipment Technical and Application Specifications for Hydraulic T/CPI 11037—2024

Increased mechanical drilling speed of sliding Vibrators in Oil and Gas Drilling and Production Equipment

Group Standards

Hydraulic Vibrators Ball-drop Activation Technology drilling (by over 40%) and the proportion of com-

posite drilling and reduced drilling cycles and Rules for Quality Grading Evaluation of Industrial

costs during pilot applications in Daqing Sichuan T/CAS ES200912001-2022 Products —Wellhead Equipment and Christmas Trees for Group Standards

and other blocks Petroleum-Specific Equipment

Bolts for Steel Pipe Flanges in the Petrochemical

Top-loaded Composite Metal Reduced seal leakage rate by over 70% and T/ZZB 2582-2021 Group StandardsIndustry

Seal and a Sand-Ejecting Struc- extended equipment lifespan by over 60%

Sand-control Gas

Production Wellhead ture in the Flat Valve Elastic As-

Promoted and applied in Sinopec Northeast

sembly Compliant with PSL 3G Bureau Yanchang Oilfield and other blocks

Standards significantly reducing oil and gas leakage risks Participation in Association

S/N Association Name Position in Association

Supported multiple processes including small-s-

Low-Shear and Low-Damage cale fracturing sand and chemical injection and

Complex Medium enhanced oil recovery 01 China Petroleum & Petrochemical Equipment Industry Association Executive DirectorDesign with the Intelligent Con-

Injection Device Solved the challenges of high-pressure high-fl-trol Technology ow injection and displacement and reduced co-

nstruction costs and operational intensity 02 China Petroleum and Chemical Industry Federation Member

Withstand pressures up to 140 MPa and feature

"conformable" flexibility 03 Shandong Industrial Design Association Director

Calculated on a 4-well chain operation: reduced

UPE+HNBR Lining Wear Warn- the number of high-pressure pipe and valve

ing Layer Corrosion Resistance components for flexible fracturing hoses to only Fracturing Hoses one third of that for conventional steel pipe 04 Shandong Enterprise Innovation Promotion Association Member

and Ultra-High Wear Resistance connections decreased connection points by

approximately 70% shortened manifold

connection time by approximately 50% and 05 Dezhou Equipment Manufacturing Association Vice Chairman

saved equipment costs by approximately 41.2%

PAGE PAGE

69 70Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

R&D Innovation and Digital-Intelligent ISO 9001:2015 and guided by the Quality Manual as the guiding framework and led by the Quality Management Department as the leading department of the system the Company implements quality management covering the entire product realization

Development process. By clearly defining organizational responsibilities and processes quality control is deeply integrated into every stage of R&D manufacturing and service. Supported by systematic monitoring analysis and improvement mechanisms the

Company continuously promotes the achievement of quality objectives and ensures product reliability and consistency.DUPT steadily advances digital and intelligent development focusing on core businesses such as drilling tools equipment

manufacturing and oil and gas engineering technical services. The Company deepens the integration and application of Since passing ISO 9001 certification in 1996 DUPT has deeply cultivated systematic quality management and obtained API

digital and intelligent technologies around key strategic directions such as unconventional oil and gas development and Spec Q1 certification in 2013 becoming a pioneer in quality management within the industry. At present a three-dimensional

integrated downhole motor services. The Company has been recognized as a "Morning Star Factory" in Shandong Province's certification framework has been established with API Spec Q1 and ISO 9001:2015 as the core supported by product

digital Economy Initiative established a digital platform integrating multiple system integrating multiple systems such as ERP specifications such as API 6A and 7-1 and supplemented by specialized systems including measurement and welding providing

MES and PLM and simultaneously advanced the digital transformation of production processes and the intelligent upgrading systematic support for full-process quality control.of downhole equipment products. By leveraging digital and intelligent capabilities to empower core business strategies the

Company continuously enhances operational efficiency across the entire chain of the oil and gas equipment industry. General Manager

R&D Big Data Platform—Establishing a Closed-Loop Management System for the Instrument Lifecycle Management RepresentativeCase Management

To comprehensively empower the precise management of high-end downhole instruments such as high-temperature

MWD the Company has independently developed a supporting big data management platform which establishes a Surface Technology International Marketing Supply Management Drilling Tools Division Equipment Division Department Department

closed-loop data system covering the entire lifecycle of instruments—from factory release through downhole operations Division

and maintenance to decommissioning—enabling real-time instrument status monitoring controllable operational

processes and data-driven management decisions. This ensures the Company can consistently provide customers with

highly reliable and high-value-added comprehensive downhole motor solutions.Based on an IoT framework the system integrates Based on multi-dimensional data integration the

four-dimensional core data streams: platform provides four core functions:

· Real-time operation data: dynamically monitor more than 30 · Visualized monitoring and real-time warning to prevent

key downhole parameters unplanned shutdowns

· Equipment health data: enable fault warning and condition · Data traceability and intelligent analysis to support condition

assessment review and parameter optimization

· Historical operation data: form a traceable and analyzable · Lifecycle management to achieve a closed-loop asset data

operating-condition database system from acquisition to decommissioning

· Maintenance data: optimize maintenance strategies · Collaborative customer service to enhance cooperation

transparency and configuration accuracy

Organization Structure for Quality Management

Big Data Management Platform

Consolidation of Product Quality

Establishment of Quality Management System

In strict accordance with the Product Quality Law of the People's Republic of China and standards such as API Spec Q1 and API Spec Q1 Certification Certificate ISO 9001?2015 Certification Certificate API 6A Certification Certificate

PAGE PAGE

7172

General Manager’s Office

Quality Management Department

Research Institute

Intelligence and Informatization Department

Human Resources Department

Equipment Management Department

Warehousing and Logistics Center

Procurement Management Center

Operations Management Center

Marketing Center

Division 2

Division 1

Operations Management Center

Assembly Workshop

Production Center Thermal Processing Workshop

Technology Center Machining Workshop

Operations Management Center

Marketing Center Assembly Workshop

Adhesive Injection Workshop

Production Center

Machining Workshop 2

Technology Center

Machining Workshop 1

Operations Management Center

Marketing CenterDezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Likelihood

Opportunity Type Description of Opportunity of ImpactCycle Financial ImpactOccurrence

Reduction in operating costs: Early avoid-

Build a digital quality platform cov- ance of quality issues through data warn-

ering the entire equipment lifecycle ing reduces losses such as product rework

Opportunities in to enable data traceability and early after-sales maintenance and customer

Quality warnings from the supply chain High Long term

compensation.through to operational monitoring Increase in operating profit: The lifecycle

Digitalization driving a shift from reactive control quality data reports are provided to oilfield

to proactive prevention. customers to strengthen their trust in

API 7-1 Certification Certificate Measurement Management Welding Management System product reliability and support the acqui-

System Certification Certificate Certification Certificate sition of high-value long-term orders.Identification of Quality Risks and Opportunities

Likelihood

Risk Type Description of Risk Impactof

Occurrence Cycle

Financial Impact Countermeasures

Quality Risk and Opportunity Management

Increased operating costs:

Products are applied in A lower product pass rate Implement tiered audits and

high-temperature hig- affects delivery while de- Based on regulatory requirements and dynamic management principles DUPT has formulated and implemented the Risk sampling inspections with

h-pressure and high-a- creased customer satisfac- Assessment Management and Emergency Response Plan Control Procedure. Each year the Quality Management Department focused monitoring of criti-

brasion downhole envir- tion impacts future cooper- cal processes organizes all departments to identify risks with professional methods and conducts a comprehensive evaluation and

onments. If sealing perf- ation and orders.Product Quality Conduct design verification

classification based on three dimensions—probability severity and detectability—according to a risk matrix dividing risks

ormance strength and Low Medium Increase in non-operating and type testing to identify into major moderate and low risks. The Company implements differentiated control measures for risks of different levels

Risk other parameters conti- term expenses: Costs for af- design defects in advance

nuously fail to meet API ter-sales maintenance on- strengthens response measures and conducts regular drills for medium- and high-level risks. Through a systematic risk Strengthen assembly train-

standards and opera- site technical support and management mechanism the Company proactively seizes opportunities for improvement thereby ensuring the effective ing and standardized oper-

tin-g condition require- parts replacement rise sig- operation of the quality management system and the steady development of business operations.ations and implement qual-

mentsreliability and ser- nificantly and the Company ity traceability

vice life may be affected. may face liability for com-

pensation and fines.Improvement of Product and Service Quality

Increase in operating costs:

In the event of equip- Compensation for down- Establish tiered response

ment failure at a cus- time free services and protocols and service com-

tomer site delayed ser- Quality System Auditemergency logistics expens- mitments and clarify han-

vice response insuffi- es may be caused by service dling procedures

After-sales cient spare parts sup- errors. Establish a knowledge base

port or inadequate Low Short term Decline in operating profit: for common faults to sup-

DUPT regularly conducts internal audits of the quality management system covering core processes such as nonconformity

Service Risk on-site technical capa- Poor after-sales service port rapid on-site reference and complaint handling risk and opportunity assessment objective management and compliance evaluation and

bilities may impact the leads to customer dissatis- Implement a service case coordinates these efforts with management reviews. By identifying and correcting operational deviations preventing potential

customer's operational faction resulting in churn review mechanism to con- risks and driving continuous improvement of the system the Company ensures that all quality activities comply with standard

progress and satisfac- and reduced orders which in tinuously optimize service

tion. processes requirements and maintains the suitability adequacy and effectiveness of the management system. During the Reporting turn impacts revenue. Period the Company successfully passed the annual audits of API Spec Q1 and DNV quality management systems and the

systems continuously operate effectively.PAGE PAGE

73 74Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Product Quality Inspection Key Performance

DUPT implements full-process inspection of raw materials production processes Training on Quality: 30 Sessions Training Duration: 425.85 Hours Participants of Training: 470 Person-times

and finished products in strict accordance with industry specifications and quality

management standards. The Company routinely conducts multi-dimensional

inspections such as chemical composition analysis mechanical property testing

ultrasonic testing and magnetic particle testing. It systematically implements

third-party inspections and special equipment type tests and achieves full-process

traceability based on various quality records. Through continuous optimization of

inspection processes and strengthening quality control the Company ensures

product conformity and consistency and provides customers with oil and gas

equipment products that meet high-standard requirements. During the Reporting

Period the Company conducted 1 internal quality audit and hired third-party

institutions for 19 inspections.Site of Quality Training

Type Test Certificate for Special Equipment

Key Performance

Quality Building Trust

First Pass Yield: 99.96% With high-quality management DUPT has earned widespread recognition and numerous honors within the industry. This not

only significantly enhances our brand awareness and reputation but also solidifies our industry-leading position and

continuously motivates technological innovation and brand development.Quality Assessment and Incentives Case Honorary Title of the First Batch of "Lulian Premium Products Manufactured in Shandong Province"

In December 2025 the downhole motor products independently developed by the

DUPT has formulated the Measures for Product Quality Assessment to implement strict quality assessments and positive Company were awarded the title of the First Batch of "Lulian Premium Products

incentives. For quality issues the Company clarifies responsibilities and initiates assessments and informs and takes disciplinary Manufactured in Shandong Province" by the Department of Industry and Information

actions against behaviors such as delayed reporting or concealment. By establishing the "General Manager Quality Award" Technology of Shandong Province. This honor is an authoritative recognition of the

the Company recognizes outstanding performance and encourages all employees to proactively report potential quality product's technological advancement quality reliability and market influence. It fully

hazards and participate in improvement activities thereby forming a closed-loop quality management system that combines demonstrates our technical strength and brand value in the petroleum equipment

rewards and penalties with full employee participation effectively driving product quality improvement. field and further enhances our industry reputation and customer trust.Quality Culture Development

DUPT deeply promotes the development of a quality culture and has established a structured training mechanism that covers

all employees and is implemented at different levels. The Quality Management Department organizes company-wide training

on the quality management system to strengthen overall quality awareness; technical departments provide new employees

with training on basic product knowledge to help them quickly adapt to their roles; and production personnel focus on on-site

quality issue analysis methods to improve practical problem-solving capabilities. Through targeted training the Company

ensures that employees in all positions possess the necessary quality literacy and skills thereby continuously strengthening

product quality.PAGE PAGE

75 76Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Quality Management Metrics and Targets Marketing/After-Sales Personnel fill in the External Nonconforming Product Management Process

To ensure the comprehensive achievement of annual quality management objectives DUPT continuously optimizes production

processes for core products such as drilling equipment and wellhead equipment strengthens quality skills training for The Quality Management Department and the Technical Department receive the process

employees in key positions such as R&D production and quality inspection and introduces advanced quality management

tools and technologies. During the Reporting Period all quality targets were successfully achieved and overall quality

management continued to meet high industry standards and core customer requirements.The Technical Department selects responsible department

Quality Targets for 2025 Achievement

Number of New Products Developed Annually ≥ 12 Items 24 Items

The responsible department issues corrective recommendations

Customer Satisfaction ≥ 90% 96.73%

Contract Fulfillment Rate ≥ 97% 98.11% The Quality Management Department selects department to conduct nonconformance analysis and take corrective measures

First Pass Yield of Purchased Products: ≥92% 95.34%

The responsible department provides root cause analysis and takes corrective measures

Scrap Rate of Drilling Tools ≤ 0.1% 0.04%

Scrap Rate of Equipment Products ≤ 0.1% 0.02%

The Quality Management Department is responsible for verifying corrective measures

Scrap Rate of Heat Treatment Products ≤ 0.015% 0.015%

Ex-factory Pass Rate of Downhole Motors: 100% 100% The Information Feedback Department communicates processing results to customers via phone email etc.Quality Complaint Process

Ex-factory Pass Rate of Flat Valves: 100% 100%

Protection of Customer' Rights and

Interests

After-Sales Service System

DUPT adheres to a customer-centered approach. By establishing the After-sales Service Management System the Company

systematically standardizes service processes and uses quality control procedures such as the Nonconforming Product Control

Procedure to provide proactive quality assurance. The After-Sales Service Center has been established to integrate service

networks and engineering resources nationwide. The Company defines six core responsibilities covering the entire process

from service planning and on-site support to feedback and has implemented an efficient complaint handling mechanism to

ensure rapid response and closed-loop resolution of customer issues. As of the end of the Reporting Period the Company

has passed the after-sales service certification the enterprise integrity management system certification and the AAA-level

After-sales Service Certification Enterprise Integrity Management Enterprise Credit Evaluation Certification

enterprise credit certification jointly demonstrating the maturity of the service system. System Certification Certificate Certificate

PAGE PAGE

77 78Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Improvement of Customer Experience Key Performance

Investment in Information Security and Privacy Protection: RMB 84000

DUPT has formulated and implemented the Operational Guidelines on Cus- Key Performance

tomer Satisfaction Measurement. Through the Customer Satisfaction Survey

Form and diversified feedback channels the Company systematically col- Number of Information Security and Privacy Protection Violations: 0

lects customer evaluations and requirements conducts annual satisfaction

analyses assesses the alignment of products and services from the cus- Customer Satisfaction: 96.73%

tomer's perspective and drives continuous quality improvement. Simulta-

neously the Company provides training for customers' technical teams and Intelligence and Informatization Department

operators on product technology knowledge and operational standards.By offering proactive guidance and optimizing product application the

Company enhances the customer experience from the source.Manager Hardware Network System Operations and Software Development

Engineer Maintenance Engineer Engineer

Information Governance Framework

Product and Service Training Session

Protection of Data Privacy Certificate for Integration of Informatization Digital Transformation Management and Industrialization Management System System Certification Certificate

Certification

Information Security Management System

DUPT improves the full lifecycle data security management in strict accordance with the Data Security Law of the People's

Republic of China the Personal Information Protection Law of the People's Republic of China the Cybersecurity Law of the

People's Republic of China and other laws and regulations. The Company has established a three-dimensional protection

system with the Intelligence and Information Department as the execution center and engineers in various technical positions

performing coordinated duties. This ensures the integrity confidentiality and availability of internal data customer information

and operational systems empowering business innovation and compliant operations through compliant data management.During the Reporting Period the Company successively obtained AAA-level certification for the Integration of Informatization

and Industrialization Management System and the AAA-level certification for the Digital Transformation Management System

thereby solidifying the foundation of digital security.PAGE PAGE

79 80Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Information Security Protection Measures Emergency Response for Information Security

Adhering to an approach that combines preventive measures with post-incident response DUPT standardizes emergency

Information Security Mechanism management procedures for failures from the core server room to office areas. based on the Emergency Response Plan for

Data/Network Failure. In response to system or network failures the Company strictly enforces standardized response

requirements and continuously optimizes its emergency response mechanisms through regular drills and contingency plan

DUPT has formulated and strictly implemented the Computer Room Management System of the Information Department. reviews thereby effectively enhancing emergency response capabilities and the practicality of contingency plans to ensure

Focusing on key aspects such as data confidentiality and backup virus prevention and equipment operation and maintenance the stable operation of information systems. During the Reporting Period the Company conducted a total of 4 fault disaster

the Company implements full-process secure and confidential control of system data. This effectively prevents risks of data recovery emergency drills.alteration leakage loss and damage and comprehensively ensures the safe stable and efficient operation of equipment

and software systems in the server room.In addition in accordance with the Measures for Data Security Management DUPT strengthens data security risk management Case Emergency Replacement Drill for Network Switches

through systematic identification evaluation monitoring and control mechanisms to safeguard core data assets. During the

Reporting Period the Company completed 12 monthly cybersecurity and data center screening audits and invited external In September 2025 to strengthen the emergency support capabilities of the network system

security vendors to conduct 1 network penetration attack-defense drill to comprehensively evaluate and enhance the practical the Company organized a switch emergency replacement drill. The drill effectively improved

effectiveness of its cybersecurity defense system. the practical operational skills of technical personnel identified areas for improvement in the

emergency response process and provided important insights for refining emergency plans

and enhancing overall emergency response effectiveness.Information Security Management Measures

Set access permissions and approval procedures according to data usage

Strictly prohibit unauthorized disclosure lending or transfer of data

Data Confidentiality and Regularly back up and securely store data to ensure immutability and rapid

Backup Management recovery in case of system failure

Back up the central servers on a scheduled basis Case PLM Database Server Disaster Recovery Drill

In December 2025 the Company simulated a scenario in-

volving an interruption of the PLM business system and a

Conduct regular virus scans and address and report any findings immediately database server crash. By rapidly switching to a backup

Use genuine antivirus software and update it promptly server to restore operations the drill validated the availabil-

Ensure programs or data transmitted remotely pass virus detection ity of the disaster recovery system and data security. The

Virus Prevention and Monitor device status in real time and report and log any abnormalities

drill effectively improved the emergency response and

immediately fault-handling capabilities of the operation and mainte-Security Management

Strictly safeguard server accounts and change passwords regularly nance team and accumulated practical experience for han-

Never disclose the center's information or data without authorization dling real failures.Ensure software and hardware changes must be approved and registered for

filing

Strictly implement the systems of data backup and the custody by designated Training on Information Security

personnel

Equipment Operation Conduct weekly inspections of the power supply and operational status of To strengthen the protection of information security DUPT enhances information security awareness among all employees

Maintenance and servers networks and peripheral equipment by expanding training coverage increasing drill frequency and strictly adopting the "training–verification–interview–retraining"

Management Ensure servers must not be debugged or have software installed without model. In addition through a designated liaison training mechanism the Company strengthened the team's network

authorization and require approval before configuration authentication capabilities promoted the deep integration of authentication functions with information security management

Report server failures immediately upon discovery and prohibit unauthorized and further enhanced the entire workforce's ability to protect against network threats and prevent data security risks. During

restart or configuration the Reporting Period the Company organized 1 phishing attack-defense drill for all employees.PAGE PAGE

81 82Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Key Performance onboarding performance evaluation and potential elimination. Led by the procurement department and in collaboration

with R&D quality and other departments we have established a joint review mechanism to comprehensively evaluate

Training on Information Security and Privacy Protection: 2 Sessions Total Training Duration: 853 hours suppliers' technical capabilities quality control and overall support capacity. This approach drives the optimization and

upgrading of the supplier structure facilitating the transformation of the supply chain toward high-quality and sustainable

development.Number of Trainees: 831 Persons Coverage Rate of Employee Training: 100% Key Performance

Number of key cooperative suppliers: 20

Case Training on Network Access Authentication Operations Supplier Management Mechanism

In June 2025 the Company offered a training on network The Company has established systematic supplier onboarding criteria covering business qualifications credit status supporting capabilities supply channels

access authentication operation covering two major access compliance and other requirements. The onboarding process includes information

scenarios: internal employees (DingTalk authentication on Approval for submission qualification review and multi-dimensional evaluation conducted

computer/mobile terminals) and external visitors (SMS au- Supplier Admission jointly by procurement R&D quality and other departments with a focus on

thentication). The training aimed to guide participants to qualification validity risk status demand alignment and cooperation feasibility.quickly select the corresponding process according to their Qualified suppliers are added to our dynamically managed List of Qualified Suppliers.identity and complete network access securely and conve-

niently ensuring effective implementation of access permis-

sions and security policies. The Company conducts regular performance evaluations of suppliers on the List

of Qualified Suppliers every 1 to 2 years primarily assessing quality delivery

Performance Evaluation timeliness pricing and service cooperation. Based on the evaluation results

of Suppliers classified management is implemented and procurement strategies are adjusted accordingly. Immediate evaluation is triggered in cases of major quality fluctuations

delivery delays service deterioration unauthorized changes or breaches of

Case Training on Information Security Awareness integrity obligations.In October 2025 the Company organized a special training Suppliers with substandard performance serious quality issues delivery delays

session on information security awareness. The course Elimination and Exit of poor cooperation or prolonged inactivity are promptly eliminated. The supplier

focused on real cases and drills systematically analyzing Suppliers suspension and blacklisting process is initiated through the OA system.actual information security threats and new attack methods

and interpreting drill results to strengthen employees'

awareness of security risks and effectively improve protection

awareness and practical response capabilities. Identification of Supply Chain Risks and

Opportunities

Likelihood

Risk Type Description of Risk of ImpactCycle Financial Impact CountermeasuresOccurrence

Co-Building of Responsible Supply Chain Special raw materials such as

high-pressure alloy steel and Flexibly adjust procurement

wear-resistant rubber used in Increased oper- strategies and negotiate fa-

the production of screw drill ating costs: The vorable prices and payment

Supply Chain Management System tools and wellhead devices are surge in raw ma- terms.Price Risk exposed to sharp price fluctu- Low Long term terial prices di- Sign long-term price-lock

ations due to commodity rectly drives up agreements with core sup-

market cycles investment vol- the procurement

DUPT continuously improves its supply chain management system by formulating and implementing a series of policies pliers and establish price atility in the oil and gas sector cost. adjustment mechanisms.including the Supplier Management Standards and the Material Procurement Bidding System. The Company enforces and environmental production

closed-loop management throughout the entire lifecycle of supplier management covering supplier development restriction policies.PAGE PAGE

83 84Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Likelihood

Risk Type Description of Risk of Impact Financial Impact Countermeasures Management of Supply Chain Risks and

Occurrence Cycle

Opportunities

Import of core precision com- Increased operating Maintain safety stocks for

ponents such as high-perfor- costs: Supply short- key components. Strengthening Exchanges and Cooperation

mance bearings seals and ages result in pro- Promote R&D and certifica-

control system chips faces risks duction shutdown tion of domestic alterna-

Supply Risks of supply disruptions or ex- Medium Long term losses higher expe- tives. DUPT has consistently prioritized strategic collaboration with suppliers. By organizing supplier conferences the Company

tended delivery lead times due dited shipping ex- Sign agreements with over-

to geopolitical tensions export penses and potential seas suppliers that include fosters an efficient and in-depth communication platform that encourages value co-creation and resource complementarity.controls or insufficient supplier delivery delays and minimum supply guarantees The Company continuously expands its strategic cooperation ecosystem optimizing collaboration processes deepening

capacity. contractual claims. and priority supply rights. partnership details and enhancing both domestic collaboration capabilities and overall market competitiveness. We are

committed to establishing a long-term stable and mutually beneficial supply chain ecosystem.Case Strategic Cooperation between DUPT and China Petrochemical International (Chongqing) Co. Ltd.Increased operating

Over-dimensional transporta- Establish long-term agree-costs: Overdue liqui- ments with leading over-di- In April 2025 as a representative of strategic suppliers tion of large-scale equipment dated damages repair mensional transport logis- DUPT signed a strategic cooperation agreement with such as fracturing equipment or replacement costs

and wellhead devices may ex- tics companies to secure China Petrochemical International (Chongqing) Co. Ltd. at

Logistics Risks for damaged goods perience delays cargo damage Medium Short term shipping capacity and prior-order losses and capi- the Qilu Petrochemical Hydrogenated Nitrile Rubber Co-

or disruptions due to road ad- ity scheduling.tal tied up in in-transit operation Signing Ceremony. This partnership encompass-

ministration approvals geopo- Purchase transportation in-inventory caused by surance for high-value es raw material supply and market collaboration with the litical conflicts or extreme transportation inter- equipment. goal of establishing a full-chain collaborative ecosystem weather conditions. ruptions. covering "R&D – Production – Sales – Application". It rep-

resents a new phase of cooperation in the special rubber

materials sector and marks a significant milestone in in-

dustrial chain collaborative innovation.Likelihood Case DUPT Holds Its First Strategic Supplier Conference

Opportunity Type Description of Opportunity of Impact

Occurrence Cycle

Financial Impact

In September 2025 under the theme "Unite as One

Leverage industrial Internet Shape the Future with Smart Chains" DUPT successfully

IoT and other advanced tech- hosted its first strategic supplier conference. Chairman

Digital Collaboration nologies to enhance procure-

Decreased operating costs: Opti-

ment and logistics tracking mize inventory turnover and reduce

Cheng Guihua and other executives joined supplier rep-

High Long term

Opportunity resentatives to discuss industry trends and establish a platforms improving supply capital tied up and losses from plan-

chain transparency and re- ning errors. quality symbiosis system. During the event four catego-

sponse efficiency. ries of awards were presented to recognize outstanding

partners. The conference aimed to deepen collaboration

and foster the development of a resilient efficient and

mutually beneficial supply chain ecosystem.Expand overseas operations

by deploying localized supply

Supply Chain chain nodes (e.g. cooperative Increased operating profit: Enhance Strengthening Procurement Capabilities

distributors warehouses) in overseas revenue and net profit by

Deployment High Long termtarget regions to align with lowering logistics costs and short-

Opportunity demand and mitigate risks ening delivery cycles.from cross-border logistics DUPT emphasizes the professional development of its procurement system and enhances the capabilities of its supply chain

and trade barriers. team through multi-dimensional initiatives. The Company regularly organizes specialized training programs on core

procurement modules to effectively improve both the professional skills and overall competency of procurement personnel

thereby supporting the high-quality operation of the supply chain.PAGE PAGE

85 86Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Case Training on Procurement Negotiation Skills and Supplier Management Improvement Through clear responsibility and supervision mechanisms the Company fully integrates integrity requirements across the

entire supplier lifecycle—including supplier onboarding performance evaluation and exit—ensuring full traceability and

In November 2025 DUPT launched a training program aimed at enhancing supplier management and procurement transparent management. By signing the Partner's Commitment to Integrity with suppliers DUPT reinforces mutual

negotiation capabilities. The program covered key modules including supplier quotation analysis digital performance accountability fosters a fair and healthy procurement ecosystem and builds a clean line of defense to support the sustainable

evaluation and cross-departmental collaborative cost reduction. Through practical case studies participants explored development of its supply chain.negotiation strategies shared effective experiences identified areas for improvement and comprehensively

strengthened their professional negotiation skills and supply chain management capabilities. Key Performance

Signing Rate of Integrity Agreement by Supplier:1 00%

Digital Empowerment

DUPT integrates ERP OA and the supply chain management

platform (SRM) supported by a document management system to

achieve full digital connectivity across the entire procurement

process. This digital integration covers procurement requests

Sustainable Development of Supply Chain inquiries and comparisons contract approvals and order execution. The system enables unified online control over supplier onboarding

performance tracking bidding management and contract filing

ESG Management comprehensively improving digital operational efficiency and supply chain collaboration.DUPT integrates Environmental Social and Governance (ESG) Standards into the

full lifecycle supplier management actively building a resilient and sustainable SRM system

supply chain system. Guided by responsible procurement principles the Company

prioritizes product environmental performance as a key decision-making factor.During the procurement process we focus on selecting materials and technolo- Supply Chain Metrics and Targets

gies that have a low environmental impact high resource utilization efficiency

and compliance with green standards. In addition we are working to incorporate

social responsibility performance work safety management and environmental The Company establishes supply chain KPIs focused on procurement quality delivery timeliness and cost control which

protection practices into our supplier onboarding review and dynamic evaluation are monitored and analyzed collaboratively by quality control operations finance and other departments. During the

systems thereby driving the value chain toward greater responsibility lower Reporting Period DUPT successfully met all preset performance targets achieving precise control over overall supply chain

carbon emissions and enhanced resilience. During the Reporting Period DUPT performance.successfully passed the GB/T 33635-2017 Green Supply Chain Management

System Certification further enhancing our brand competitiveness in the sus- Procurement and Management Targets for 2025 Achievement

tainable supply chain sector.First Pass Yield of Purchased Products: ≥92% 95.48%

Qualified rate of drilling tool procurement: ≥96% 97.20%

Green Supply Chain Management

System Certification Qualified rate of equipment procurement: ≥91% 94.57%

Transparent Procurement

Timeliness rate of procured products: ≥91% 95.78%

DUPT regards procurement integrity as the cornerstone of supply chain management. We have established a transparent Timeliness rate of drilling tool procurement: ≥82% 87.89%

supply chain system guided by the Integrity Management System regulated by the Agreement on Procurement Behaviors

supported by embedded process controls with the aim of jointly building a robust supply chain ecosystem. Timeliness rate of equipment procurement: ≥90% 94.75%

PAGE PAGE

87 88Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

07

Establishing Rigorous Disciplines through

Safety Management and Reinforcing

Well-Being through Health

Protection

DUPT has established and continuously improved its occupa-

tional health and safety management system implemented

comprehensive risk control measures and full-staff training.These efforts prevent workplace safety incidents and occupa-

tional hazards protect employees' physical and mental health

ensure safe operations and provide a solid foundation for the

Company's sustainable and long-term development.Responded UN Sustainable Development Goals (SDGs):

PAGE PAGE

89 90Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Fortification of Safety Defense Lines Opportunity Type Description of Likelihood Impact Opportunity of Cycle Financial ImpactOccurrence

A robust HSE system

Adhering to the policy of "Safety First Prevention First Comprehensive Manage- Key Performance helps prevent accidents Decrease in operating costs: Reduced work injury compensa-

ment" and the principle that safety must be managed in every industry every busi- Efficiency and occupational dis- tion claims equipment damage fines and insurance premi-

ums.ness operation and every production and business activity DUPT has established eases enhances em- High Long termOpportunities ployee well-being and Increase in operating revenue: Reduced downtime and staff

a comprehensive safety production responsibility network that spans the entire Investment in Work Safety: boosts operational effi- turnover ensuring stable and efficient production.workforce. The Company has formulated and strictly implemented 52 safety man- ciency.agement systems including the Work Safety Responsibility Management System RMB1 .7539 Million

the Work Safety Inspection Management System and the "Three Simultaneities" Driven by policies for

Management System for Occupational Health and Safety Facilities in Construction work safety and green

Projects. These regulations clarify that the Chairman is the ultimate person re- manufacturing the C-ompany continuously

sponsible for work safety. The Company has established an HSE Management De- Increase in operating revenue: Win contracts and enhance cus-Market strengthens its HSE tomer loyalty through a strong HSE reputation.partment as the dedicated body responsible for safety management ensuring management capabili- High Long term Decrease in operating costs: Lower spending on market access

that safety responsibilities are implemented at all levels and by every individual. Opportunities ties to secure high-end and bidding due to non-compliance issues.market orders and sus-

We have in place a dual prevention mechanism that focuses on safety risk classi- tainable cooperation

fication and control and the identification and management of potential hazards. opportunities both at

Assessment results under the work safety responsibility system are directly linked home and abroad.to employees' job adjustments and remuneration further strengthening the full

implementation of safety responsibilities across the organization.Coordination of Safety Strategy

Enhancement of Risk Control

Likelihood

Risk Type Description of Risk Impactof Cycle Financial Impact CountermeasuresOccurrence

Non-compliant opera- Increased operating costs: Ad- Implement risk classification and Risk Management Mechanism

tions equipment failures ditional expenses on medical control and hazard investigations.or inadequate protection compensation equipment re- Strengthen special operation

Work Safety in production workshops

Low Short term pairs and maintenance. training and work permits. DUPT identifies assesses and hierarchically controls occupational health and safety risks associated with equipment may cause accidents

Risk Decreased operating revenue: Conduct regular inspection and such as mechanical inju- facilities and work activities following the Risk and Opportunity Control Procedure and the Hazard Identification and Risk Delayed order deliveries and maintenance of key equipment.ries and fires resulting in potential contractual penalties Visualize operating procedures Classification and Control Procedure. The Company has developed special risk control lists covering core operations

casualties or production due to production shutdown. and enforce on-site supervision. equipment and facilities and implements dynamic monitoring and regular reviews to ensure effective control over all types

shutdowns.of risks.Safety requirements and

local community permit Increase in operating costs:

Conduct thorough due diligence

Additional expenditures due on HSE regulations and social conditions at both do- to fines necessary rectifica- risks at the early stages of project Work Activity Risk Identification and Evaluation Processmestic and overseas job development.On-site sites are frequently up- tion and compliance consult-Low Short term ing. Appoint local compliance man-

Safety Risk dated. Failure to adapt to Decrease in operating reve- agers to dynamically track evolv-these changes in a timely ing regulations and ensure ongo- Work Activity Break down each work step to identify Work Activity Assess the likelihood of occurrence

manner can result in nue: Losses incurred from pro- ing compliance. Risk Identifi- hazards and potential events at every and the severity of consequences

fines production shut- duction shutdown and re- Develop emergency response cation stage.Risk Analysis for each identified hazard.down or legal action. stricted market access. plans.Hazards such as noise Provide occupational health train- Develop and implement measures

dust and welding fumes

are present in the pro- Decrease in operating reve-

ing and hazard notifications. covering engineering technical man-

Occupational Supply and enforce the use of nue: Reduced project effi- personal protective equipment Work Activity Determine the risk level of each work Work Activity agement training personal protec-duction process. Pro- Low Short term

Health Risk ciency due to staff absentee- (PPE). Risk Rating activity based on the analysis results Risk Control tion and emergency response tai-longed exposure can

lead to occupational dis- ism. Implement regular job rotation and complete risk classification. lored to the possible accident types

and conduct occupational health and consequences ensuring full-pro-eases.check-ups. cess risk control.PAGE PAGE

91 92Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Safety Emergency Management Case On-site Emergency Drill – Lifting Accidents

In March 2025 the Company carried out an on-site emergency drill simulating lifting accidents including lifting belt

In accordance with the Management Measures for Work Safety Accident Emergency Response Plan and relevant laws and failure and heavy object falling scenarios. The drill encompassed the entire emergency response process including

regulations DUPT has developed a Comprehensive Emergency Response Plan for Work Safety Accidents. This plan outlines casualty treatment and accident investigation testing and improving the practicality of the emergency plan and

the emergency rescue organization system response procedures and rescue measures. The Company regularly conducts employees' emergency handling capabilities.emergency drills covering scenarios such as fire confined space entry and mechanical injuries ensuring the availability of

complete emergency facilities and materials. Post-drill reviews and corrective actions are immediately implemented to con-

tinuously enhance employees' emergency response and self-rescue skills minimizing accident losses and ensuring

personnel safety and operational stability.Key Performance

Organized Safety Emergency Drills: 33 Times

Hazard Investigation and Rectification

General Commander

(General Manager / Principal Person-in-Charge) DUPT strengthens the investigation and management of hazards to proactively prevent potential safety hazards at source.The Company has developed the Equipment and Facility Risk Hierarchical Control List and the Potential Hazard Atlas to

comprehensively identify production risks through routine inspections special inspections and seasonal checks. These

Deputy General Commander / Chief Engineer risks along with their control measures are integrated into required knowledge and assessed alongside safety education

and responsibility implementation ensuring that all employees have a full awareness of safety risks. The process for

managing identified hazards follows four key steps: registration assessment rectification and acceptance with regular

re-inspections to verify the effectiveness of corrective actions. Additionally the HIC system (Hazard Investigation and

Control System) supports digital and process-based management enhancing the timeliness and traceability of the hazard

Communication Logistics Security and

Emergency Medical Aid investigation and rectification processes.and Liaison Support Team Evacuation

Rescue Team Team Team Team

Key Performance

Emergency Rescue Organization Chart Total safety hazards investigated:1 3606 Potential Hazard Inspection and Rectification Rate: 99.29%

Case Special Team-Based Hazard Investigation Activity

Case Confined Space Emergency Drill – Glue Injection Workshop

In June 2025 the Company organized a team-based hazard investigation activity under the theme "Find Hazards Around

In March 2025 the Company conducted a confined space emergency drill in the glue injection workshop simulating You". The initiative actively engaged front-line employees encouraging full participation. Through on-site identification

personnel accidents during vulcanizing tank maintenance. The drill effectively enhanced employees' abilities in risk recording and evaluation specific risk points in daily operations were accurately detected. At the same time the activity

identification emergency response and coordinated rescue operations within confined spaces thereby strengthening enhanced front-line employees' ability to recognize and respond to potential safety hazards strengthening overall

overall safety production. workplace safety awareness.PAGE PAGE

93 94Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Implementation of Protection Measures "Work Safety Month" Event in June 2025

Case "Managers Talk About Safety" Awareness Campaign

Safety Accident Management The Company launched a special initiative "Managers Talk About Safety". The chairman and department heads personally shared safety concepts and discussed typical cases with employees drawing on their own management ex-

periences. Through this high-level engagement and in-depth communication employees' awareness of safety respon-

DUPT has established the Rules of HSE Accident Management which standardizes the process of accident classification sibilities was strengthened effectively fostering a proactive safety culture.reporting investigation handling rectification and knowledge sharing following the Four-No-Let-Go principle. In the

event of an accident the Company mandates the immediate activation of emergency response procedures and reporting.Simultaneously a root cause analysis is conducted operational procedures are revised as needed and targeted employee

training is reinforced. Accountability is enforced based on the investigation outcomes with relevant personnel assessed

and disciplined according to the Rules of HSE Assessment and Incentive Management. Typical cases are incorporated into

warning education programs to reduce the likelihood of recurrence and to support the continuous improvement of the

HSE management system. During the Reporting Period no work-related fatalities or major safety liability accidents occurred

in the Company.Training and Culture Development

Case Emergency Rescue Competition

Focusing on the construction of the HSE training system and the cultivation Key Performance The Company organized an emergency rescue skills competition evaluating employees' proficiency and teamwork in

of safety culture DUPT has formulated the Management System for Occu- three key areas: fire extinguisher and hydrant operation air respirator use and CPR first aid conducted in a team relay

pational Health and Safety Training and Education and developed the 2025 Total Investment in Safety Training: format. The competition reinforced training and helped improve employees' emergency response speed and on-site

HSE Plan establishing a diversified training system that integrates both

RMB 0.158 Million handling capabilities.online and offline approaches as well as theory and practice. Online the

Company utilizes DingTalk Cloud Classroom to disseminate legal knowl- Number of Safety Training Sessions:

edge and conduct online assessments ensuring that theoretical content 15 Sessions

is broad up-to-date and accessible. Offline the Company organizes prac-

tical training sessions such as emergency rescue drills and special proce- Participants of Safety Training Sessions:

dure operations to strengthen employees' operational skills and emergency 12000 Person-times

response capabilities. Additionally starting with 2025 Safety Production

Month we plan a series of themed promotional activities produce and Average Duration of Safety Training Per Person:

broadcast safety education videos and implement quarterly special action 13.92 Hours

plans. This strategy combines targeted educational priorities with ongoing

campaigns under the slogan "Safety is Always First" creating a culture of Coverage Rate of Safety Training:

safety production where full attention and active participation are priori- 100 %

tized. Case "Double-Blind" Emergency Drill

In addition the Company conducted double-blind emergency drills with no prior notice simulating real fire scenarios.These drills provided a comprehensive test of the office building's emergency plan the readiness of emergency

equipment and employees' immediate response procedural execution and internal coordination skills.PAGE PAGE

95 96Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Case Safety Slogan Promotion Management of Hazardous Chemicals

In strict compliance with the Regulations on the Management of Hazardous Chemicals the Regulations on the Management

of Precursor Chemicals and other relevant laws and regulations DUPT manages the entire lifecycle of hazardous chemicals

systematically. The Company has established a Hazardous Chemical Management System specifying requirements for

procurement transportation storage use and disposal of hazardous chemicals while maintaining a dynamic List of

Hazardous Chemicals to keep risk characteristics up to date. Quarterly special inspections are conducted to ensure timely

rectification of issues strengthen weak links and enforce accountability for major hazards. These measures effectively

prevent risks such as fire poisoning and environmental pollution ensuring the safe and compliant management of

hazardous chemicals.Establishment of Safety Goals

DUPT adopts "Zero Accidents Zero Injuries and Zero Occupational Diseases" as its safety management goal. The Company

establishes annual quantitative safety indicators which are then broken down into department-level performance assess-

ments to drive continuous improvement in the operation and effectiveness of the safety management system.Occupational Health and Safety

Specific Indicators Annual Objectives Achievements in 2025

Safety Management for Related Parties

Number of first-class minor injuries serious injuries and above 0 0

DUPT has established the Stakeholder Safety Management System and the Management Rules of HSE Thirty Clauses clearly

defining the safety obligations and compliance standards for external partners and integrating their management into op-

erational processes. We enforce unified safety supervision on-site inspections and end-to-end control over contractors Number of vehicle accidents fire accidents and other recordable incidents 0 0

and suppliers. Through mandatory safety training and the creation of a Thirty Clauses Red-Line Action Statistics Ledger

high-risk behaviors are systematically tracked and managed. Additionally any violations by external parties are incorporated

into the safety assessments of the corresponding departments reinforcing each department's management responsibility

and ensuring comprehensive control over external safety risks.Case Labor Safety Training

In January 2025 the Company conducted special safety training for contractors covering operation guidelines and

safety operating procedures. The training aimed to strengthen the contractors' understanding and adherence to unified

safety management standards while also improving collaborative risk control starting from the point of access.PAGE PAGE

97 98Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Support for Occupational Health Protection Type Specific Actions Implementation Method

Detection of Hazard Regular monitoring of occupational disease hazard Entrust qualified third-party institutions to perform testing and Factors factors in the workplace assessments according to internally formulated procedures.Occupational Health Management System Engineering Protection Source control and Equip welding laboratory and other relevant posts with specialized

Control engineering protection facilities such as welding fume purifiers and fume hoods; perform regular maintenance to ensure effective operation.In strict compliance with the Law of the People's Republic of China on the Prevention

and Control of Occupational Diseases and other relevant regulations DUPT has Management Standard- Standardized management of Develop the Operating Procedures for Occupational Health of Key Posts

established dedicated systems including the Occupational Disease Prevention and ization Measures operational behaviors and install warning signs for occupational disease hazards and implement

Control Management System and the Management Measures for the Warning and working environment fixed on-site placement and cleaning management systems.Notification of Occupational Disease Hazards to continuously enhance occupa- Distribute PPE (e.g. protective clothing goggles gas masks earplugs

tional health management. The HSE Management Department coordinates the Personal Protective Provision and supervision the

Equipment (PPE) use of PPE safety helmets) according to post-specific risks and supervise proper

identification risk assessment and prevention and control of occupational disease wearing and usage.hazards in the workplace and organizes standardized training and awareness

Conduct occupational health check-ups before employment during

programs to ensure full-staff occupational health protection. As of the end of the Occupational Health Dynamic monitoring of employment and upon departure; establish and maintain individual

Reporting Period the Company has passed ISO 45001 Occupational Health and Monitoring employees' health status occupational health files.Safety Management System Certification.Implement post adjustment medical observation diagnosis and

Health Follow-up Response mechanism for treatment measures according to law for employees with occupational abnormal health conditions contraindications or suspected occupational diseases safeguarding

employees' health rights and interests.Occupational Health and Safety

Management System Certification Case Employer Work Injury Prevention Training

Key Performance

In November 2025 the Company held a two-day occupational injury prevention training for workers exposed to hazards

Working Hours Lost due to Work-related Injury: Investment in Work-Related Injury Insurance:

in key positions. After the training an occupational injury prevention examination for employers was held to promote

560 Hours RMB 357.6 Million learning through assessment strengthen employees' risk prevention capabilities and safety awareness and minimize

occupational health risks.Coverage Rate of Work-Related Injury Insurance: Investment in Work Safety Liability Insurance:

98.67% RMB1 4 Thousand

Coverage Rate of Work Safety Liability Insurance: 100%

Occupational Hazard Protection Measures

DUPT systematically addresses various occupational hazards throughout the production process. Following systems such

as the Management Measures for the Monitoring and Evaluation of Occupational Disease Hazards the Management Case Detection of Occupational Hazard Factors

Measures for the Maintenance and Repair of Occupational Disease Protection Facilities the Management Measures for the

Monitoring and Filing of Workers' Occupational Health and the Operating Procedures for Occupational Health of Key Posts In July 2025 the Company engaged a professional third-party institution to conduct annual

the Company has built a multi-level occupational health protection framework covering engineering controls management occupational health monitoring. This included assessing all production workshops and support

protocols and personal protection. facilities. On-site sampling and lab analysis were carried out to measure various physical and

chemical hazards such as dust noise acid-base levels and organic solvents. This ensured the

Key Performance results were accurate and objective providing a solid scientific foundation for the Company's

occupational health protection efforts.Number of New Occupational Diseases: 0 Case Coverage Rate of Occupational Health Checkup: 100%

PAGE PAGE

99 100Dezhou United Petroleum Technology Corp 2025 Environmental Social and Governance (ESG) Report

08

Fostering Shared Growth through

Employee Development and

Contributing Warmth to

Society through Talent

Engagement

DUPT is committed to fostering a diverse and inclusive work-

place. The Company safeguards employees' rights and interests

continuously improves career development opportunities and

enhances its compensation and benefits system. Through em-

ployee care initiatives and open transparent communication

channels DUPT actively promotes employee well-being and

engagement encouraging both employees and the Company

to grow and succeed together.Responded UN Sustainable Development Goals (SDGs):

PAGE PAGE

101 102Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Protection of Employees' Rights and Case Two-Wheel Drive to Strengthen the Talent Foundation

Interests

Targeted Talent Recruitment

DUPT has established the Recruitment Management System adhering to Key Performance

the principle of diverse hiring practices. The Company actively broadens

its talent acquisition channels including social recruitment and campus Campus Presentation Sessions Campus Recruitment Site

recruitment. We continually strengthen university-enterprise partnerships New Employees: 92 Persons

by co-developing internship programs and creating talent development

platforms which enhance both talent pipeline and training mechanisms. Campus Recruitment: 27 new employees

Additionally the Company introduces specialized recruitment channels

targeting specific groups and organizes unique brand events such as New Employees from Social Recruitment:

Talent Experience Day to boost its employer brand visibility. These efforts 65 Persons Talent Structure

foster a mutual understanding and precise alignment between the

Company and prospective talents. By diversifying its recruitment and DUPT continuously optimizes its employee structure by building a scientific talent echelon opening clear development

training initiatives DUPT builds a sustainable talent supply and develop- pathways and enhancing the salary and welfare system. These measures create a harmonious and stable employment en-

ment system to meet the Company's long-term growth needs. vironment and strengthen the Company's ability to attract and retain talent.Social On-campus Special Special

recruiment recruitment Recruitment Recruitment Key Performance

Social talent recruitment is Fresh graduates are re- The Company provides Talent Experience Day events Total Number of Employees: 862 Persons Employees with Disabilities: 3 Persons Veteran Employees: 23 Persons

conducted through online cruited through a diversi- employment opportunities are held to invite candidates

platforms on-site recruit- fied campus recruitment for veterans individuals to explore the corporate en-

ment events and head- system that includes du- with disabilities and other vironment and culture en- Employees of Ethnic Minority: 22 Persons Total Employee Turnover Rate:1 1.83%

hunting services. al-selection meetings and groups fulfilling its social hancing job alignment and

university-enterprise co- responsibility and promot- compatibility.operation. ing employment equality.Case Two-Wheel Drive to Strengthen the Talent Foundation

Employee Composition

The Company actively partners with universities such as Dezhou University to deepen the integration of industry and

education. This is achieved through initiatives like co-building internship bases offering special lectures and conducting 107 Person 17 Person

joint research. These efforts help introduce and train skilled professionals. Additionally campus recruitment is further 8 Person 113 Person 35 Person

expanded through presentations and recruitment fairs broadening the pool of young talent and strengthening the 67 Person

Company's talent reserves. 55 Person 137Person

Number of Number of

Number of Employees (by Employees

Employees Employee (by

by Gender Level) Profession)

755 Person 799 Person 493 Person

Female Male Senior Middle Other Manufacturing Sales Technology

Management Management Employees Finance Administration Management

Company Visit & Tour Special Symposium on University-Enterprise Cooperation

PAGE PAGE

103 104Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

51 Person Protecting Women's Rights and Interests

99 Person 22 Person

205

Person

228 Person DUPT strictly implements the Special Provisions on the Labor Protection of Female Employees ensuring full compliance with 199 Person

Number of statutory leave rights including maternity leave breastfeeding leave and miscarriage leave. The Company also continually Number of

Employees Employees Employees improves its internal care and support mechanisms for female employees. In addition DUPT regularly organizes themed

by Age by Education by Ethnicity

Background activities for International Women's Day promoting gender equality in the workplace and fostering a corporate culture that

is gender-friendly mutually supportive and inclusive.

359 Person 193 Person

390 Person 840 Person

Key Performance

Under 30 (exclusive) Years Old Master's Degree and Above Ethnic Minorities

Percentage of Female Employees: 12.41 % Proportion of women in management:1 7.46 %

30 (inclusive) to 40 (exclusive) Years Old Bachelor's Degree Non-Ethnic Minorities

40 (inclusive) to 50 (exclusive) Years Old Associate Degree

Number of Employees On Maternity Leave: 2 Persons Return-to-work Rate of Employees on Maternity Leave:1 00 %

50 years old or above Below Associate Degree

Employee Turnover Case "Women's Day" Event

In March 2025 the Company hosted a themed activity for International

11.98% 26.91% Women's Day aimed at expressing care inspiring enthusiasm and

demonstrating respect and attention toward female employees.

11.80%5.64%

7.39%

Female Male

14.21%

Employee Turnover Rate by Gender

Under 30 (exclusive) Years Old

30 (inclusive) to 40 (exclusive) Years Old

40 (inclusive) to 50 (exclusive) Years Old

50 years old or above Training and Development

Employee Turnover Rate by Age Talent Cultivation

Protection of Rights and Interests Guided by strategic development and centered on employees' core growth needs DUPT has established a comprehensive

training system supported by an internal trainer development mechanism and the extensive application of a digital learning

platform. The Company has built a full-coverage multi-level and three-dimensional training framework forming a collab-

Labor Security orative and integrated training matrix that spans new employee onboarding professional skill enhancement and leadership

development. This system emphasizes practical capability building and compliance awareness training promoting both

operational effectiveness and organizational knowledge retention while supporting the continuous development of a

DUPT strictly complies with the Labor Law of the People's Republic of China the Labor Contract Law of the People's Republic structured talent pipeline.of China and other relevant laws and regulations. The Company adheres to the principle of fair employment improves its

anti-discrimination system and explicitly prohibits differential treatment based on gender age ethnicity or other factors Key Performance

in recruitment and employment. The Company regularly conducts anti-discrimination training and assessments to Training investment: Total Training Sessions: Total Training Attendance:

strengthen the awareness and standards of its recruitment team. We have established interview supervision and anonymous

feedback mechanisms and rigorously review recruitment information to ensure a fair and transparent process. DUPT strictly RMB 0.5374 million 225 Sessions 4524 Person-times

prohibits illegal practices such as child labor and forced labor. Committed to fostering a respectful equal and inclusive Total Training Duration: Training Coverage Rate:

workplace we resolutely prevent violence defamation and harassment. Through diversified initiatives we continuously

build a workplace culture that is respectful equitable inclusive and integrated. 292.65 hours 100%

PAGE PAGE

105 106Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Case Special Training for Team Leader Capability Improvement growth opportunities for employees. The evaluation results are directly linked to salary incentives personalized training

plans and the development of a talent reserve. This creates a virtuous cycle where capability development and value return

In September 2025 the Company held a specialized training are continuously reinforced. By offering ongoing coaching and feedback the Company supports employees in achieving

program aimed at improving team leader capabilities focus- long-term career goals fostering mutual growth for both individuals and the organization.ing on three key role scenarios. The immersive theory + prac-

tice approach enabled participants to systematically develop Special Grade Technician

role awareness and collaboration skills thereby laying the

ground for enhanced team management efficiency and Senior Technician

stronger collaboration. Technician

Senior Skilled Worker

Intermediate Skilled Worker

Junior Skilled Worker

Case Middle Manager Exchange Training

In November 2025 the Company organized a special training

session for middle managers. Using four typical cases as dis-

cussion starting points the training encouraged group dis-

cussions helping managers establish core principles im-

prove employee empowerment unify management thought

Technical Sequence Production Sequence

and enhance team building and operational efficiency. Marketing Sequence Professional Sequence

Management Sequence

Management Non-Management

Performance and Welfare

Case Training on Project Management Practice

Salary and Welfare

During the Reporting Period the Company conducted a

training on project management best practices. Focused on

critical areas such as project planning execution control and DUPT has established the Salary Management System constructing a matrix-based salary framework centered on job

risk management the training significantly improved the sequences with job value and performance contribution as core considerations. The salary structure includes a post-per-

team's professional capabilities promoted standardized formance salary system a structural salary system and a daily wage system. Performance-based pay is closely linked to

project management practices and supported efficient both organizational and individual achievements and is particularly emphasized for key business areas and core positions

business progression. achieving a balanced combination of internal fairness effective incentives and sustainable enterprise development.In parallel the Company provides a multi-level welfare and security system combining statutory benefits with distinctive

company-specific offerings. Beyond full coverage of the five social insurances and one housing fund employees receive

supplementary commercial insurance and comprehensive support including meals accommodation health check-ups

and participation in cultural and sports activities. During the Reporting Period DUPT implemented an employee stock

ownership plan closely aligning the interests of core talent with the Company's long-term growth and establishing a sus-

tainable long-term incentive mechanism.Career Development The Company also strictly complies with national working hours and leave regulations employing standard comprehensive

calculation methods as well as flexible working arrangements. Employees' leave rights are fully protected ensuring adequate

DUPT has established a dual-channel career development system offering distinct paths for both management and rest. Additional subsidies are provided to employees on business trips and overseas assignments while working conditions

non-management roles supported by a robust production skill level evaluation mechanism. Through standardized qual- and the operational environment are continuously optimized to enhance employee well-being and strengthen organiza-

ification certification and comprehensive performance assessments the Company provides clear promotion criteria and tional belonging.PAGE PAGE

107108

Six-Level Skill Grade SystemDezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Performance Drive onvened to deliberate on and vote for major matters affecting employees' vital interests with follow-up mechanisms to ensure decisions are effectively implemented. The Trade Union serving as the permanent working body of the Employee

Congress is responsible for daily organization and coordination. It safeguards employees' orderly participation in corporate

DUPT has established the Performance Management System. Using a combined quarterly and annual review cycle the democratic decision-making management and supervision while systematically promoting the harmonious and stable

company applies end-to-end performance management focused on KPIs covering goal setting ongoing coaching per- development of labor relations.formance evaluation and feedback-based improvement. The evaluation process strictly follows the SMART principles in-

corporates a forced distribution rating mechanism and closely integrates assessment outcomes with compensation Key Performance

incentives and career development pathways. To ensure the fairness impartiality and transparency of performance eval-

uations the Company has established diversified appeal channels. Employees who disagree with their assessment results Projects Reviewed and Approved at the Employee Congress: 2 Projects

may submit appeals through written applications email or in-person interviews within the specified timeframe. The Human

Resources Department in coordination with relevant departments verifies each case and provides timely feedback. Projects Reviewed and Approved by the Trade Union: 3 Projects Number of Trade Union Members: 828 Persons

Employee Relations Case Co-building Systems to Forge Employee Consensus

In 2025 the Company further strengthened democratic management centering on the Employee Congress to effec-

Labor Relations tively implement employee participation. In March a special seminar was held on the Performance Management System

(Revised Draft March 2025). During the seminar the Human Resources Department addressed employees' questions

on site and employee representatives provided extensive feedback and suggestions. This collaborative process helped

Based on the Labor Relations Management System DUPT has developed a standardized labor contract management advance the development of a fairer and more transparent performance evaluation system. In December a dedicated

framework covering the entire employment lifecycle including onboarding employment and resignation thereby safe- review was conducted for the DUPT Employee Code of Conduct. Feedback from employee representatives was

guarding the legitimate rights and interests of both the Company and its employees. In terms of labor dispute management integrated to refine specific provisions strengthen overall compliance awareness among employees and foster a

internal negotiation and communication are prioritized with the Human Resources Department and the Trade Union in- stronger sense of cultural identity within the organization.tervening in accordance with applicable laws and regulations to ensure fair and transparent procedures. Resignation

management strictly follows legal procedures standardizing resignation applications work handovers salary settlements

and related processes. Exit interviews and root-cause analyses are conducted to continuously optimize employee relations Employee Assistance

and maintain a harmonious and stable employment environment.DUPT has established a standardized and institutionalized assistance mechanism to support employees facing difficulties.Case Special Symposium on Employee Labor Relations Management Through detailed investigations file management and dynamic tracking the Company ensures that assistance is targeted

and effective. During the Reporting Period under the leadership of the Trade Union the Company visited and expressed

In November 2025 the Company organized a special sym- consolation to employees in need. Targeted subsidies were granted according to individual circumstances to provide

posium on labor relations for the management with a focus financial assistance. Additionally timely care and support were provided to the families of employees facing major life ad-

on analyzing high-frequency risk areas such as contract versities reflecting the Company's sincere humanistic care. The assistance process is open and transparent effectively

management salary structures rewards and disciplinary ac- resolving employees' difficulties and fostering a supportive atmosphere where employees feel valued and cared for by the

tions. The primary objective of this symposium was to en- Company inspiring them to contribute to its development and success.hance compliance with management regulations proactively

address potential labor disputes at source safeguard the le-

gitimate rights and interests of both the Company and its Key Performance

employees and foster a harmonious and stable work envi- Number of Employees Receiving Assistance: Amount of Assistance for Employees in Difficulty:

ronment. 27 Persons RMB 44 thousand

Democratic Governance Employee Activities

DUPT has established the Employee Congress Management System implementing democratic management through this DUPT places strong emphasis on employee care organizing a variety of themed activities around key annual milestones.fundamental framework. Employee representatives are democratically elected with a significant proportion drawn from These include annual celebrations holiday care initiatives cultural and sports events team-building exercises and cross-unit

front-line employees and technicians to ensure broad representativeness. These representatives exercise functions and fellowship activities. Such immersive experiences strengthen team cohesion deepen employees' sense of belonging and

powers—including deliberation supervision and election—in accordance with applicable laws. Regular meetings are c- cultivate a positive healthy collaborative and progressive corporate culture. These initiatives not only promote work-life

balance but also infuse vitality into the organization's sustainable development.PAGE PAGE

109 110Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Case "Across Mountains and Seas Toward the Distant Horizon" Themed Annual Meeting Case Football Invitational Tournament

In January 2025 the Company held the themed annual meeting attracting over 800 employees and family members. In November 2025 the Company's Trade Union hosted the

The event featured summaries commendations and lottery activities effectively enhancing team cohesion and rein- DUPT Football Invitational Tournament involving four units.forcing corporate cultural identity. The event promoted inter-unit communication deepened the

"Strive for Victory" culture promoted employee health and

wellness and celebrated a strong spirit of collaboration.Case Diversified Team-Building Activities

During the Reporting Period all departments regularly orga-

Case "Vitality · Passion · Toward the Future" Sports Event nized team-building activities including outdoor development

programs group outings and team dinners. These activities

In September 2025 the Company held the "Vitality · Passion · Toward the Future" sports event featuring a variety of strengthened teamwork improved communication and con-

special competitions. The event enriched employees' cultural and sports life ignited enthusiasm for physical activity tinuously boosted organizational cohesion and employee sat-

improved staff fitness showcased the Company's dynamic spirit and strengthened collective teamwork. isfaction.Practice of Social Welfare

DUPT actively fulfills its corporate social responsibility serving as a bridge for coordinated development between enterprises

Case Teacher's Day Special Event and local communities through social welfare initiatives. The Company consistently invests in key areas including people's

livelihood ecological co-construction cultural empowerment and talent employment. By supporting the growth of local

In September 2025 to celebrate Teacher's Day the Company public undertakings through sustained and structured public welfare practices DUPT not only enhances social well-being

presented customized gift boxes and gratitude cards to over but also promotes the deep integration of corporate social value with local development. These efforts contribute to building

200 trainers and mentors. An experience-sharing session was a symbiotic and prosperous ecosystem for sustainable development.

held to enhance the mentor training mechanism and support

the long-term development of the Company's talent pool. Key Performance

Charitable Donations for Public Welfare: About RMB 0.8 Million

PAGE PAGE

111 112Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Case Ecological Co-construction – Landscaping Tree Donation Case Spring Bud Program – Talent Employment Empowerment

In April 2025 the Company actively participated in ecological construction by donating During the Reporting Period the Company continued its

over 600 landscaping trees to the Natural Resources Bureau of Dezhou City for urban Spring Bud Program focusing on talent employment support.public green space development. This initiative supports the construction of livable The initiative created 92 local jobs including the recruitment

rural areas through ecological empowerment improves the regional living environment of 21 college graduates and 3 veterans. By offering a stable

and highlights the Company's commitment to fulfilling its corporate ecological respon- career development platform and opportunities for skill en-

sibilities. hancement the Company helps optimize the local talent pool

and solidifies the foundation for regional development.Case Cultural Investment – Public Service Donation Case Industrial Collaboration – Industrial Chain Upgrade Empowerment

In November 2025 responding to local needs for cultural de- During the Reporting Period in line with regional industrial development needs the

velopment the Company made a donation of RMB 500000 Company focused on collaborating with local small and medium-sized enterprises

to the Dezhou City Library. The donation was specifically ear- (SMEs) in mechanical and accessory processing industries. Through establishing close

marked for the development of an electronic reading plat- cooperation offering stable orders and providing technical guidance the Company's

form and the expansion of youth literature collections. This annual outsourcing cost surpassed RMB 50 million. This collaboration has played a vital

support enriches public reading resources encourages the role in upgrading the local industrial chain and stimulating regional economic growth.cultivation of reading habits improves the local cultural ser-

vice system and advances the development of a spiritually

civilized society through cultural empowerment.Case Public Welfare – Normalized Blood Donation Contribution to Rural Revitalization

The Company regularly organizes employees to participate

in voluntary blood donation drives. During the reporting

period the total blood donation volume reached 8900 ml. DUPT has consistently supported the national rural revitalization strategy regarding support for rural development as a

Over the past five years 163 employees have participated in core part of its corporate social responsibility. In alignment with its own growth trajectory the Company actively aligns with

the program collectively donating 59600 ml of blood. This national priorities. With a strong sense of responsibility and concrete actions DUPT remains focused on the modernization

initiative not only bolsters local medical blood supplies and of agriculture and rural areas. By exploring ways to integrate corporate values with key national strategies the Company

supports clinical treatment but also strengthens team cohe- contributes to the comprehensive progress of rural revitalization and the promotion of common prosperity.sion reflecting the Company's strong commitment to corpo-

rate social responsibility.PAGE PAGE

113 114Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Afterword to the Report Indicator Name Unit 2023 2024 2025

Number of On-Site Investor Surveys Received Person-times 1 18 20

Key Performance Form Replies to Investor Questions on Cninfo Platform Time 51 43 151

Reply Rate of Investor Questions on Cninfo Platform % 100 100 100

Overall Notes to Key Performance Indicators:

In the key performance form "–" indicates that the indicator is not applicable and "/" indicates that the relevant indicator Business Ethics

for the year was not disclosed or not statistically recorded. Participants of Training Sessions on Anti-Commercial

Bribery and Anti-Corruption for the Management Person / 14 14

Duration of Training on Anti-Commercial Bribery and

Indicator Name Unit 2023 2024 2025 Anti-Corruption for the Management

Hour / 8.50 25.50

Total Participants of Training Sessions on Anti-commercial Person / 796 807

Governance Dimension Performance Bribery and Anti-Corruption

Total Duration of Anti-Bribery and Anti-Corruption Training Hour / 393.00 1210.50

Governance

Number of Training Sessions on Anti-Monopoly and Fair Time / / 1

General Meeting of Shareholders Convened Time 2 4 2 Competition

Duration of Training on Anti-Monopoly and Fair Competition Hour / / 0.50

Proposals Reviewed at the General Meeting of Shareholders Item 12 15 19

Meetings of the Board of Directors Convened Time 5 7 5 Environmental Dimension

Proposals Reviewed at the Meetings of the Board of Directors Item 28 39 52 GHG Emission

Meetings Held by the Strategy Committee under the Board of Time 1 0 0 Direct GHG Emissions (Scope 1) tCO2e 1685.33 1553.29 1526.20Directors

Meetings Held by the Remuneration and Appraisal Time 2 2 1 Indirect GHG Emissions (Scope 2) tCO2e 8582.99 9625.13 9379.71Committee under the Board of Directors

Meetings Held by the Audit Committee under the Board of Time 5 6 5 Total GHG Emissions tCO2e 10268.32 11178.42 10905.91

Directors

Meetings Held by the Nomination Committee under the Time 2 0 0 tCO2e/RMBGHG Emissions Intensity 0.1811 0.1675 0.1512

Board of Directors 10000 revenue

Information Disclosure GHG Emission Density tCO2e/Person 13.51 13.48 12.65

Number of Announcements Disclosed Copy 86 115 116 Environmental Indicators

Number of Periodic Reports and Summaries Disclosed Copy 6 6 6 Investment in Environmental Protection RMB 10000 85.45 22.64 52.02

Number of Interim Announcements Disclosed Copy 80 109 110 Training on Environmental Protection Session 4 4 4

Number of Investor Relations Activity Records Disclosed Copy 2 5 7 Number of Participants in Training on Environmental Protection Person-times 95 102 102

Investor Relations Management Duration of Training on Environmental Protection Hour 760 816 816

Number of Investor Receptions Time 2 5 7 Pollutant Emissions

Number of On-Site Investor Surveys Received Time 1 4 5 Waste Gas Emission Ton 3.38 3.47 3.67

PAGE PAGE

115 116Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Indicator Name Unit 2023 2024 2025 Indicator Name Unit 2023 2024 2025

Pollutant Emissions ——Validly Authorized Invention Patents Item 22 33 47

Tons/RMB

Waste Gas Emission Intensity 1000000 revenue 0.0060 0.0052 0.0051 ——Validly Authorized Utility Model Patents Item 62 61 62

Compliance Rate of Exhaust Gas Emissions % 100 100 100 ——Validly Authorized Design Patents Item 6 6 6

Wastewater Discharges Ton 56834.00 46243.00 56639.00 Number of Valid Patents per RMB 1 Million of Operating Revenue Item 0.1587 0.1499 0.1595

Tons/RMB

Wastewater Discharge Intensity Cumulative Number of Software Copyrights as of the end of 1000000 revenue 100.23 69.31 78.54 the Reporting Period Item 9 10 11

Compliance Rate of Wastewater Discharge % 100 100 100 Cumulative Number of Trademarks as of the end of the

Reporting Period Item 14 14 14

Volume of General Waste Generated Ton 2000.00 2100.00 2150.00 Number of Software Copyrights per RMB 1 Million of Operating

Revenue Item 0.0159 0.0150 0.0153

Quantity of Hazardous Wastes Generated Ton 92.85 105.56 122.56 Product Quality

Waste Disposal Compliance Rate % 100 100 100 First Pass Yield % 99.95 99.99 99.96

Energy and Water Resources Sessions of Quality Training Session 28 26 30

Total Energy Consumption tce 2934.48 3090.19 3018.71 Quality Training Duration Hour 528.00 613.00 425.85

Energy Consumption Intensity tce/RMB 10000revenue 0.0518 0.0463 0.0419 Number of Participants in Quality Training Person-times 575 673 470

Renewable Energy Consumption tce - - 16.87 Customer Service

Total Water Consumption Ton 60745 76513 85483

Customer Satisfaction % 93.48 94.97 96.73

Water Consumption Intensity Tons/RMB1000000 revenue 1.0713 1.1467 1.1854 Data and Information Security

Total Use of Packaging Materials

Investment in Information Security RMB 10000 11.50 7.70 8.40

Total Use of Packaging Materials Ton 5931.00 5936.40 4785.00 Number of Violations Incidents Related to Information Security

and Privacy Protection Time 0 0 0

Consumption Intensity of Packaging Materials Tons/RMB 1000000 revenue 0.1046 0.0890 0.0664 Training on Information Security and Privacy Protection Session / 1 2

Industry Value Dimension Duration of Training on Information Security and Privacy

Protection Hour / 796 853

R&D and innovation Participants in Training on Information Security and Privacy Person / 796 831

Protection

Investment in R&D RMB 10000 1798.00 2091.80 2807.75 Coverage Rate of Training on Information Security and Privacy % / 100 100

Protection

Number of R&D Personnel Person 117 136 153 Supply Chain Management

Percentage of R&D Personnel % 15.66 17.09 18.64 Procurement Training Sessions Session / / 2

Number of Valid Authorized Patents as of the End of the Item 90 100 115

Reporting Period Procurement Training Participants Person / / 21

PAGE PAGE

117 118Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Indicator Name Unit 2023 2024 2025 Indicator Name Unit 2023 2024 2025

Human Resources Dimension Male Person 665 719 755Employee Numbers

by Gender

Employee Occupational Health and Safety Female Person 95 110 107

Investment in Work Safety RMB 10000 249.25 306.52 175.39 Senior Management Personnel

Person 8 8 8

Employee Numbers Middle Management Personnel Person 43 43 55

Investment in Safety Training RMB 10000 19.60 22.23 15.80 by Job Level

Grassroots employees Person 709 778 799

Total Training Duration Hour 12000 12000 12000

Manufacturing Person 416 440 493

Average Duration of Safety Training Hour 15.79 14.48 13.92

Sales Person 56 62 67

Number of Safety Training Sessions Session 15 15 15 Number of

Employees by Technology Person 93 112 113

Participants in Safety Training Person-times 12000 12000 12000 Profession

Finance Person 12 16 17

Number of Security Emergency Drills Time 28 26 33

Administration Person 35 34 35

Safety Hazard Inspection and Rectification Rate % 100 99.46 99.29 Management Person 148 165 137

Number of Occupational Safety Accidents Case 0 0 0 Under 30 (exclusive) Years Old Person 133 180 199

Total Number of Work-related Injuries Person 6 10 5

Number of 30 (inclusive) to 40 (exclusive) Years Old

Person 341 350 359

Employees by Age

Work Hours Lost due to Work-related Injury Hour 1200.00 3312.00 560.00 40 (inclusive) to 50 (exclusive) Years Old Person 193 201 205

Work Injury Insurance Investment RMB 10000 36.61 41.14 35.76 50 years old or above Person 93 98 99

Safety Production Liability Insurance Investment RMB 10000 1.40 1.40 1.40 Master's Degree and Above Person 15 39 51

Number of Person 179 211 228

Coverage Rate of Safety Production Liability Insurance % 100 100 100 Bachelor's DegreeEmployees by

Education Level Associate Degree Person 165 186 193

Incidence Rate of Occupational Diseases % 0 0 0

Below Associate Degree Person 388 393 390

Injury Rate per Million Working Hours % 2.4 4 2

Number of Ethnic Minorities Person 15 19 22

Occupational Health Checkup Participants Person 342 342 342 Employees by

Ethnicity Non-Ethnic Minorities Person 745 810 840

Coverage Rate of Occupational Health Checkup % 100 100 100

Employee Turnover

Employment

Number of Employees Resigned Person 102 124 100

Total Number of Employees Person 760 829 862 Employee Turnover Rate % 14.10 15.16 11.83

Percentage of Female Employees % 12.50 13.27 12.41 Employee Male % / 16.47 11.80

Turnover Rate by

Percentage of Employees of Minority Nationalities % 1.97 2.29 2.55 Gender Female % / 9.76 11.98

PAGE PAGE

119 120Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Indicator Name Unit 2023 2024 2025 Indexes

Under 30 (exclusive) Years Old % / 37.70 26.91

Guidelines on Corporate Self-Regulatory Guideline N0. 17

Employee Global Reporting Initiative 30 (inclusive) to 40 (exclusive) Years Old % / 10.13 5.64 Social Responsibility for Companies Listed on

Turnover Chapters and Sections Sustainability Reporting Reporting for Chinese Shenzhen Stock Exchange -

Rate by Age Standards（GRI Standards） Enterprises (CASS-CSR 6.0) Sustainability Report (Trial)40 (inclusive) to 50 (exclusive) Years Old % / 7.61 7.39

% / 15.71 14.21 About This Report

2-2/2-3 P1.1/P1.2 Articles 4/6

50 years old or above

Employees' Rights and Interests Message from the Chairman / P2.1 /

Number of Employees Receiving Assistance Person 22 27 27 About DUPT 2-1 P3.1/P3.2/P3.3 /

Amount of Assistance for employees in Difficulty RMB 10000 3.10 5.40 4.40 Response to SDGs / / /

Employee Recruitment Philosophy of

Sustainable 2-22 G1.1.2/G1.1.6 Articles 11/12

New employees in the Year Person 55 118 92 Development

——Social Recruitment Person 45 84 65 Governance Frame-work for Sustainable 2-14 G1.1.1 Articles 11/12

Sustainable Development

——On-campus Recruitment Person 10 34 27 Develop-

ment Identification of

Women's Rights and Interests Governance Sustainable / G1.1.8 Articles 11/18Development Risk

Number of Female Employees in the Management Person 7 10 11 Deepening of

Sustainable

Development / G1.1.3/G1.1.5 Article 12

Proportion of Female Employees in the Management % 13.73 19.61 17.46 Practices

Number of Employees on Maternity Leave Person 3 6 2 Communications with

Stakeholders 2-16/2-29 G1.3.2 Articles 9/53

Return-to-work Rate for Employees on Maternity Leave % 100 100 100 Analysis of Material

Topics 3-1/3-2/3-3 G1.1.8/G1.1.9 Articles 5/11/18

Employee training Consolidation of 2-9/2-10/2-12/

Governance System 2-13/2-17/2-18 / /

Training Investment RMB 10000 42.67 66.06 53.74

Optimization of

Total Number of Training Sessions Session 138 172 225 Compensation 2-18/2-19/2-20 / /

Management

Total Number of Training Sessions Person-times 2713 3364 4524 Solidifying Foundation Advancement of Investor Relations 2-16/2-27

through / /Management

Total Training Duration Hour 173.85 249.75 292.65 Sound

Governance Enhancement of

Training Coverage Rate % 100 100 100 and Ensuring Returns to 201-1 / /

Sustainability Shareholders

through

Employee Development Compliant Improvement of Risk

Management 2-27/207-2 / /Operations

Number of Internal Transfers or Internal Job Applications

by Employees Person 34 71 80 Anti-Commercial Bribery and 205-1/205-2/205-3 G2.1.1/G2.1.2/G2.1.3/ Article 55

Anti-Corruption G2.1.4/G2.1.6/G2.1.7

Percentage of Internal Transfers or Internal Job Applications

by Employees % 4.47 8.56 9.28 Anti-Unfair Competi-

tion Management 2-27/206-1 G2.2.1/G2.2.2/G2.2.3 Article 56

PAGE PAGE

121 122Dezhou United Petroleum Technology Corp. 2025 Environmental Social and Governance (ESG) Report

Guidelines on Corporate Self-Regulatory Guideline N0. 17

Global Reporting Initiative Social Responsibility for Companies Listed on Feedback

Chapters and Sections Sustainability Reporting Reporting for Chinese Shenzhen Stock Exchange -

Standards（GRI Standards） Enterprises (CASS-CSR 6.0) Sustainability Report (Trial) Dear Readers

Response to Climate 201-2/305-1/ E1.1.1/E1.1.2/E1.1.3/E1.1.4/E1.1. Articles

Advancing Change 305-2/305-4

5/E1.1.6/E1.1.7/E1.1.8/E1.1.13/E 21/22/23/24/25/26/27/28 Thank you for taking time to read this report. We highly value your valuable feedback on our ESG reporting and sustain-1.1.14/E1.1.15/E1.1.16/E1.1.19

Craftsman- ability management. Your suggestions will serve as an important basis for improving our ESG efforts and enhancing our

ship through Environmental 2-27/303-2/303-4/ E2.1.1/E2.1.2/E2.1.5/E2.1.6/E2.1.7 sustainability management. We sincerely invite you to complete the feedback form and submit it to us via the following

Environ- Compliance 305-7/306-1/306-3/ /E2.1.8/E2.2.1/E2.2.3/E2.2.5/E2.mental Management 306-4/306-5 2.6/E2.2.7/E2.4.1/E2.4.2/E2.4.3/

Articles 29/30/31/33/37 methods. Thank you once again for your support of our ESG efforts!

Protection E2.4.4/E3.3.2/E3.3.4/E3.3.5

and Email: limingxia@dupt.cn

Recycling of 301-1/301-2/302-1/ E3.1.1/E3.1.2/E3.1.3/E3.1.4/Empowering

Resources 302-3/302-4/302-5/ E3.1.5/E3.2.1/E3.2.2/E3.2.3/ Articles 35/36/37Production 303-2/303-3/303-5 E3.2.4/E3.3.2 Tel.: 0534-2237999

with Green

Intelligence Ecological and Environmental 304-2/304-3 E2.3.2/E2.3.3 Article 32 Address: No. 1518 Jinghua South Avenue Songguantun Subdistrict Tianqu New District Dezhou City Shandong

Protection Province

Reshaping Enhancement of

S2.1.1/S2.1.2/S2.1.3/S2.1.4

Innovation Engine / /S2.1.5/S2.1.6/S2.1.7/S2.1.9/ Article 42Industrial S2.1.10/S2.1.11/S2.1.13

Ecosystem 1、Which of the following stakeholder categories do you belong to:

through Improvement of 416-1 S3.3.1/S3.3.2 Article 47

Resilient Product Quality

Supply □Shareholders or Investors □Government or Regulator □Employees □Customers or Partners □Suppliers Protection of

Chains and Customers' Rights and 417-1 S3.3.4/S3.3.6 Article 47

Delivering Interests □Communities or the Public □Others

Quality Protection of Data

Excellence Privacy / S3.4.1/S3.4.2/S3.4.3/S3.4.4 Article 48

through 2、Your overall assessment of this ESG report:

Continuous Con-building of

Innovations Responsible Supply 308-1/308-2/414-1/414-2 S3.1.1/S3.1.2/S3.1.3/S3.1.4 Article 45 □Excellent □Good □Average □Below Average □Poor

Chain

Fortification of 3、How do you rate this report:403-1 S4.2.2 Article 50

Establishing Safety Defense Lines

Rigorous Coordination of Information Disclosure: □ Excellent □Good □Average □Below Average □Poor

Disciplines Safety Strategy / S4.2.1 Article 50

through

Safety Enhancement of S4.2.1/S4.2.4/S4.2.6 Layout Design: □ Excellent □Good □Average □Below Average □Poor403-2 Article 50

Management Risk Control

and Implementation of Readability: □ Excellent □Good □Average □Below Average □Poor

Reinforcing Protection Measures 403-5/403-7 S4.2.4/S4.2.6 Article 50

Well-Being

through Establishment of 4、Which topics are of most concern to you (You may select 3 items)

Health Safety Goals

///

Protection Support for Occupa- 403-1/403-3/403-5/403-6/ Governance Topics: □Anti-commercial Bribery and Anti-corruption □Anti-unfair Competition □Due Diligence

tional Health 403-7/403-9/403-10 S4.2.3/S4.2.4/S4.2.5 Article 50

Social Topics: □Protection of Employees' Legitimate Rights and Interests □Employee Training and Development

Fostering

Shared Protection of 2-7/2-8/201-3/401-1/ S4.1.1/S4.1.3/S4.1.5/S4.1.6/ □Occupational Health and Safety □ Innovation-Driven Development □ Safety and Quality of Products and Services

Growth Employees' Rights 401-2/401-3/405-1/ S4.1.8/S4.1.9/S4.1.11/

and Interests S4.1.12/S4.3.1/S4.3.2/S4.3.3/

Articles 49/50

through □Data Security and Privacy Protection □Supply Chain Security □Social Contribution 406-1/408-1/409-1 S4.3.4/S4.3.5/S4.3.6

Employee

Development Environmental Topics: □Environmental Compliance Management □Energy Utilization □Response to Climate Change

and Practice of Social

Contributing 203-1 S1.2.1/S1.2.2 Article 40 □Water Resource Utilization □Pollutant Emissions □Waste Disposal □Circular Economy □Ecosystem and Biodiver-Welfare

Warmth to sity Protection

Society

through Contribution to Rural

Talent / S1.1.1 Article 40 5、Is the information you are interested in reflected in this ESG report:Revitalization

Engagement

□Yes □No（What additional information would you like to see _____________________）

Key Performance Form / A2 Article 6

Afterword to Indexes / A3 Article 57 6、Do you have any other comments or suggestions regarding our ESG efforts and sustainable development manage-the Report

ment

Feedback 2-16 A6 Article 9

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