Content
About This Report 04 Social
To Stakeholders 06 02 Responsibilities
About Us 08
Technological Innovations 64
Our Sustainability Management 16 Product Quality and Safety 70
Topic: Circular Economy Shaping 26 Customer Services 75
New Wonderful Lives Sustainable Supply Chain 79
Facilitation of Industry Development 84
Green Designs of Key Products 26 Equality Inclusion and Diversity 88
Employees' Rights and Interests 92
Facilitation of Circular Development 30 Employee Development and Training 99
Facilitation of Collaborative Disposal 33 Occupational Health and Safety 106
of Urban Wastes Social Development and Public 113
Welfare
01 Environmental 03 Responsibility Responsibilities for Governance
Appendix 1. Index of Indicators 134
Addressing Climate Changes 38 Operations of Three Boards 118
Appendix 2. List of Key Performance 138 Environmental Management 44 Transparent Disclosure 122
Indicators Energy Management 49 Risk Management 124
Appendix 3. Main Participatory Resource Conservation 52143 Business Ethics 126
Domestic Associations and Waste Management 56 Data Security 128
Organizations Chemical Safety 60 Intellectual Property Protection 132
Appendix 4. Overview of 144
Certificates
Appendix 5. Reader Feedback 1462023
Environmental Social and Governance Report About This Report
About This Report
This is the second environmental social and governance (ESG) report issued by Kingfa Sci. & Tech. Co. Ltd. (hereinafter
referred to as "the Company" "we" or "us") intended to integrate the concept of sustainable development into
corporate governance and comprehensively present our ESG practice and related performance to our stakeholders.Time Frame of the Report
This Report covers the period from January 1 2023 to December 31 2023 ("reporting period") punished on
an annual basis. To increase the comparability and integrity of this Report some content may be appropriately Reference Standards
extended to previous and subsequent years. GRI Standards
Coverage of the Report Sustainability Accounting Standards Board (SASB) Standards
UN Sustainable Development Goals (SDGs)
This Report which focuses on the Company covers all branches and subsidiaries of the Company (collectively
referred to as "the Group" together with the Company). The key environmental performance indicators are mainly Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises by
specific to the Company its branches and its subsidiaries in China. The key social performance indicators are the Chinese Academy of Social Sciences (CASS-ESG 5.0)
mainly about the Company all its branches and subsidiaries at home and abroad. Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of. Listed
Companies—Sustainability Report (Trial)
Notes on Data of the Report
All data and cases cited herein derive from the official documents and statistical reports of the Company and its Access to This Report
affiliates. Unless otherwise specified all amounts hereunder shall be denominated in RMB. This Report may be accessed and downloaded on the official website of the Company (https://www.kingfa.com.cn/) and the website of the Shanghai Stock Exchange (http://www.sse.com.cn/). This Report is provided for readers
Terms in Chinese English and Japanese. In case of any discrepancies among the three versions or conflicts resulting from
Unless the context otherwise requires the following words shall have the following meanings in this Report: languages the Chinese version shall prevail.CSRC means China Securities Regulatory Commission Qingyuan Meijin means Qingyuan Meijin Advanced Materials Sci. and Tech. Co. Ltd.The Company means Kingfa Sci. & Tech. Co. Ltd. Jiangsu Kingfa Recycling means Jiangsu Kingfa Recycling Co. Ltd
Shanghai Kingfa means Shanghai Kingfa Sci.& Tech.Dvpt. Co. Ltd. PP means Polypropylene
Jiangsu Kingfa means Jiangsu Kingfa Sci.&Tech. Advanced Materials Co. Ltd. PE means Polyethylene
Tianjin Kingfa means Tianjin Kingfa Advanced Materials Co. Ltd. PC means Polycarbonate
Guangdong Kingfa means Guangdong Kingfa Sci.& Tech. Co. Ltd. ABS means Acrylonitrile butadiene styrene
Wuhan Kingfa means Wuhan Kingfa Sci.& Tech. Co. Ltd.PS means Polystyrene
Chengdu Kingfa means Chengdu Kingfa Sci.& Tech. Advanced Materials Co. Ltd.Kingfa (USA) means Kingfa Science & technology (USA) INC. PBAT means Polybutylene adipate terephthalate
Kingfa (Europe) means Kingfa Sci. & Tech. (Europe) GmbH. PLA means Polylactic acid
Kingfa (India) means Kingfa Science & Technology (India) Limited BDO means 14-butanediol
Kingfa Biomaterials means Zhuhai Kingfa Biomaterials Co. Ltd. LCP means Liquid crystal polymer
Specialty Engineering Plastics
means Zhuhai Vanteque Specialty Engineering Plastics Co. Ltd. PA means Polyamide
Company PBS means Polybutadiene-styrene
Kingfa Carbon Fiber/Carbon
means Guangzhou Kingfa Carbon Fiber Materials Development Co. Ltd. PCR means Post-consumer recycled
Fiber Company
Ningbo Kingfa means Ningbo Kingfa Advanced Materials Co. Ltd. COC means Cyclic olefin copolymer
Liaoning Kingfa means Liaoning Kingfa Sci.& Tech. Co. Ltd. PPE means Polyphenylene ether
National Industrial Innovation Chinese Yuan means RMB
means National Industrial Innovation Center of Advanced Polymer Materials
Center Reporting period means 2023
452023
Environmental Social and Governance Report To Stakeholders
To Stakeholders
This epitomizes the refinement in management actions underscore the firm's steadfast commitment to
a n c h o r i n g t h e o p e rat i o n a l p r o w e s s o f t h e sustainable development showcasing the Company's
company's rear echelon.Through bold reforms accountability and accomplishment environmental
and vertical integration strategies the company protection and social responsibilities as a leader within
In 2023 amid China's prosperity and stability the diligent and has significantly enhanced its supply chain security the advance materials industry.devoted efforts of the people nationwide crafted a remarkable capabilities. The Human Resources Center has
narrative of resilience progress and triumph over challenges that initiated overseas talent strategies and global The illustrious three-decade journey of KINGFA
captured global attention. In the same year KINGFA unwavering employer branding efforts attracting 40 doctoral epitomizes the collective wisdom and perseverance
in its belief that "confidence is more precious than gold" experts to solidify the internationalized talent pool of of countless individuals dedicated to the company's
steadfastly propelled itself forward with technological innovation high potential and caliber. Leveraging an international cause. Amid the currents of the new era employees of
at its core. Leveraging the company's global supply chain training system to cultivate a globally adept talent
KINGFA have fervently pursued innovation and fearlessly
technological research and development (R&D) and integrated pipeline the company deployed over 50 elite
ventured forth together forging an unstoppable force.This has rendered the ethos of "loyalty responsibility
marketing platform it delivered highly competitive advanced professionals abroad in 2023 for strategic operations.A comprehensive assessment and implementation di l igence and innovation" even more vibrant material solutions to clients worldwide. As a consequence market
of talent leadership within the group coupled with while propelling the spirit of "new horizons grand
share enjoyed consistent expansion while operating income saw the stable operation of the "271" cadre rotation development" to loftier heights thereby outlining a grand
a continual rise. mechanism further propelled the elevation of high- developmental blueprint for the company. In 2024 it is
quality talent management to new heights. The imperative to narrate the compelling story of KINGFA's
successful launch and operation of the group's first cultural heritage and uphold the entrepreneurial spirit
digital factory not only elevates KINGFA's intelligent ingrained within its founders. The future trajectory of
manufacturing capabilities but also signifies a the company hinges significantly on the cultivation and
steadfast stride into the realm of private-sector dissemination of its corporate culture. Efforts must be
intelligent manufacturing. directed towards unearthing the profound essence of
This is a momentous endeavor spearheading the market with unwavering determination. Through the KINGFA's cultural heritage constructing a distinctive
implementation of "Overseas Forge Phase I" the company has accelerated its internationalization efforts This exemplifies the sustainable development force cultural framework and amplifying international
significantly igniting global localization in market development and service capabilities. In the modified materials driving towards a low-carbon energy-efficient outreach initiatives to continuously elevate the brand
sector the company has enriched its product portfolio through iterative strategies in industry-specific innovative and green circular economy. This exemplifies the image and industry influence. By reinforcing a globally
solutions effectively bolstering market share. In the unmodified materials sector the company has unified sustainable development force driving towards a low- unified ethos underpinned by KINGFA's cultural values
thought and action strengthened organizational capabilities clarified product positioning innovated marketing carbon energy-efficient and green circular economy. a formidable sense of employee cohesion is fostered
models and greatly enhanced market competitiveness. The company embraces the mission of achieving thereby sculpting an unparalleled competitive edge
green low-carbon and circular development for the company. Endeavors are earnestly dedicated to
This exemplifies the innovative force steadfast in bearing national missions and unwavering dedication to s p e a r h e a d i n g i n n o v a t i v e p r a c t i c e s a c r o s s infusing new vitality into China's private enterprises
advancing China.The company demonstrates resolute determination towards fostering innovative capabilities environmental protection and resource conservation endowing them with profound practical significance on a
continuously shaping novel momentum in aggregation. With the development of proprietary 5T-6T processing domains. By prioritizing green design for key deeper level.technology the company has attracted industry elites including doctoral experts fostering the cultivation of products advancing circular development initiatives
original capacities. By fortifying four national-level innovation platforms the company has achieved numerous intensifying resource integration and promoting Former Chairman of KINGFA
successes in national project applications garnering acclaim for its prowess in technological innovation. coordinated disposal of urban waste the company
Leveraging the core advantage of 30 years of polymer material application expertise at KINGFA the company constructs a resource-circular industrial ecosystem
fearlessly explores novel pathways in petrochemical and modification integration steadfastly advancing on the elevating resource utilization efficiency and shaping
journey of technological innovation. a harmonious and beautiful new way of life. These
672023
Environmental Social and Governance Report About Us
About Us
Company Profile
Founded in 1993 and headquartered in Guangzhou Science City Kingfa Sci. & Tech.Co. Ltd. ("the Company "we" or "us") "is an advanced materials enterprise focusing
on the R&D production sales and services of new high-performance materials and
providing advanced material solutions for creating safer more comfortable and
more convenient life. Over 30 years of substantial development the Company has
established 60 subsidiaries and founded R&D and production bases abroad in South
Asia North America Europe and so on. In 2004 the Company (Stock Code: 600143)
was listed on the Main Board of Shanghai Stock Exchange.As the world's leading enterprise in new chemical materials the Company remains
committed to solving global environmental problems promoting the continuous
improvement of living environment and achieving sustainable development. Our
products mainly rely on independent innovations and development covering nine
categories namely modified plastics environment-friendly high-performance recycled
plastics fully biodegradable plastics special engineering plastics carbon fiber and
composite materials light hydrocarbon and hydrogen energies polypropylene resins
and healthcare polymers which are widely used in the industries of automobiles
household appliances electronic and electrical components communication
electronics new infrastructure new energies modern agriculture modern logistics
rail transit aerospace high-end equipment healthcare and so on. We have
established strategic partnerships with numerous well-known enterprises around
the world. With satisfactory environment-friendliness and excellent performance our
products are exported to more than 130 countries and regions around the world and
we provide services for more than 1000 world-renowned enterprises.Synthesis Modified Products
Upstream Downstream
Green petrification Modified plastics Healthcare
Ningbo Kingfa (PP Modified plastics Polymeric health
industry chain) Environment-friendly protective products
Liaoning Kingfa (ABS high-performance
industry chain) recycled plastics
Light hydrocarbon and
hydrogen energies
Advanced Fully biodegradable plastics
materials Special engineering plastics
segment Carbon fiber and composites
Bio-based monomers and resin
Relationship Diagram of Our Four Major Sectors and Main Products
892023
Environmental Social and Governance Report About Us
Global Layout
Changchun
Shenyang
Panjin Liaoning
Tianjin Airport Economic Area
Weifang
Xinxiang Qingdao
Wiesbaden Germany
Luoyang Xuzhou Jiangsu
Michigan USA Changzhou Kunshan Jiangsu
Mianyang Sichuan NanjingHefei Qingpu Shanghai Suzhou
Chengdu Sichuan Wuhan Hubei Wuhu Ningbo Zhejiang
San Francisco Chongqing Hangzhou
Nanchang
Los Angeles Gurugram India Changsha Wenzhou
Tokyo
Pune India Guangzhou China Fuzhou
Mexico Qingyuan Guangdong Xiamen
Nanning
Bangkok Dong Nai Vietnam Hong Kong
Chennai Pondicherry India Pingyang Zhuhai Guangdong
Head office of the Company Danzhou Hainan
Kuala Lumpur Malaysia Ho Chi Minh City
Manufacturing and R&D Singapore
bases of the Company
Offices of the Company
Johannesburg
Development Strategy
Strengthening the The Company will continue to expand and empower the polymer business which will be further developed in an
In line with China's "Belt and Road" initiative and Business development middle all-round manner.dual circulation in domestic and overseas markets strategy Consolidating Give full play to the supporting role and risk tolerance of the polymer business to guide the healthy development of
the Company adheres to the strategic thinking of both ends upstream and downstream business sectors and promote the synergy of the entire industrial chain." strengthening the middle consolidating both
ends being innovation-oriented and achieving Focus on high-quality Being innovation- Coordinate and lead organizational optimization technological innovation marketing innovation and
leap-forward development" and strives to build a sustainable development driven operational innovation.world-class R&D marketing manufacturing and
information platform to become a global leader in Core objectives of business Leapfrog
With our focus on the grand output goal of one hundred billion we will coordinate our four major business
development development sectors of modified plastics advanced materials green petrochemicals and healthcare for sustainable and high-advanced materials providing support for national quality development.strategic materials.Strategic Development Policy
10112023
Environmental Social and Governance Report About Us
Development History
2022
2004 2015 Liaoning Baolai Advanced
Materials Co. Ltd. was
The Company was listed on Kingfa Sci. & Tech. (USA) renamed "Liaoning Kingfa
1993 the Main Board of Shanghai 2013 Co. Ltd. was established. 2020 Sci.& Tech. Co. Ltd."
Stock Exchange. 2009
The Company 2001 Kingfa (India) was Chengdu Kingfa Sci.& Hainan Kingfa Sci.& Kingfa (Japan) was
was established. Shanghai Kingfa Mianyang Changxin Zhuhai Wantong Chemical acquired Tech. Advanced Materials Tech. Co. Ltd. was formally established.was established. Advanced Development Co. Ltd. was established. Co. Ltd. was established. established.Co. Ltd. was established. Guangdong Kingfa
Tianjin Kingfa Advanced Sci.& Tech. Co. Ltd. Kingfa Sci. & Tech. Kingfa Medical was
The Academician Materials Co. Ltd. was was established. (Malaysia) Co. Ltd. was established.Workstation was established. established.established.
2023
2010 2019 Kingfa Sci. & Tech.
Ningbo Haiyue 2021 (Vietnam) Co. Ltd. 1997 2003 Jiangsu Kingfa Sci.& 2014 Advanced Materials
was established.Tech. Advanced Co. Ltd. was acquired Liaoning Baolai
Guangzhou The Postdoctoral 2008 Materials Co. Ltd. Wuhan Kingfa Sci.& and renamed "Ningbo Advanced Materials Co.Tianhe Gaotang Scientific Research was established.Workstation was Mianyang Dongfang Tech. Co. Ltd. was
Kingfa Advanced Ltd. was established
Production Base Materials Co. Ltd.was built. built. Special Engineering The sales of the
established.Zhuhai Wantong
Plastics Co. Ltd. was Company exceeded Chemical Co. Ltd. was
acquired. RMB 10 billion.Kingfa Global
Innovation Training renamed "Zhuhai Kinfa
Development Center Biomaterials Co. Ltd."
was established.
12132023
Environmental Social and Governance Report About Us
Honorary Certificates
Nationwide Case of Green
Ranked 300 among China's Ranked 205 among Low-Carbon and Circular
Top 500 Private Enterprises Private Manufacturers in Development in the Renewable
in 2023 China in 2023 Resources Industry
Awarding by the Chairman
of the Recycled Materials
Ranked 37 among the Top Branch CAPRO
100 Private Enterprises in
Guangdong Province in 2023
Excellent Plastic
Recycling Enterprise
Ranked 21 among the Top
100 Private Manufacturers in
Guangdong Province in 2023
Lingxuan Award Foresight
· Gold Medal
Special Refined Unique
and Novel "Little Giant"
Enterprise
Official Supplier of Personal
Guangdong Provincial Protective Equipment
Intellectual Property for the 19th Asian Games
Demonstration Enterprise Hangzhou 2022
Public Service Demonstration Platform
for Small and Medium-sized Enterprises Five-star Guangzhou
in the Light Industry Charity Unit
Note: The honorary certificates listed above were obtained by the Company our branches or subsidiaries in 2023.
14152023
Environmental Social and Governance Report Our Sustainability Management
Our Sustainability Management
ESG Management System Stakeholder Communication
For the purpose of strategic development the Company has built an ESG governance structure suitable for its own The Company attaches importance to the stakeholders' participation in ESG actively carries out communications
business attributes and management model created an ESG governance structure at four levels (i.e. the Board of with the stakeholders understands the stakeholders' expectations and demands through different communication
Directors Strategy and Sustainability Committee ESG working group and ESG-related functional departments) channels and practically performs responsibilities for joint development mutual benefit and win-win.and appointed special ESG functional personnel to manage its ESG matters. The ESG structure which clearly Stakeholders Focuses and expectations Communication channels
specifies the division of labor rights and responsibilities at all levels manages the internal ESG work by a top-down
approach to promote the Company's sustainable development and enhance the Company's competitiveness. * Government inspections
* Responses to national strategies
Government * Compliance inspections
* Compliance operation
and regulatory * Regular meetings and exchanges
Top responsible team * Risk Managementauthorities * Participation in government cooperation
Board of * Business EthicsAs the top team responsible for ESG the Board of Directors assumes full responsibilities exchanges and seminars
Directors for the Company's ESG strategies management and external disclosure. * Regular and temporary information disclosure
* Stable return on investment
* Operation by the Board of Directors the Board
* Transparent information disclosure
Decision-making of Supervisors and the general meetings of
Shareholders/ * Compliance operation
Strategy and Incorporate ESG work into strategic planning; study the Company's medium and long-
shareholders
investors * Risk Management
Sustainability term development strategic plans and make suggestions; carry out research on the
* Performance briefing
* Intellectual Property Protection
Company's sustainable development environmental social and corporate governance * Investor HotlineCommittee * Technological innovation
(ESG) as well as other related matters; and make relevant suggestions and decisions. * Company research
Management * Product quality and safety * Customer exchange and cooperation
As its daily office in the ESG field the ESG working group is composed of the * Customer services * Customer satisfaction survey
ESG working Company's senior management and heads and executors of the ESG-related functional Customers * Responsible business and marketing * Daily communication with customers
group departments. The ESG working group supervises and manages the ESG-related work * Technological innovation * Confidentiality of customer information
of key functional departments implements ESG strategies and specific measures and * Data security
reports to the Strategy and Sustainability Committee on a regular basis. * Employee training
Execution * Employment employee rights and interests * Periodic working meetings
ESG-related All functional departments and subsidiaries related to the Company's important ESG * Equality inclusion and diversity * Employee symposiums and democratic Employees
functional issues actively perform specific ESG-related work within the scope of their duties * Employee development and training communications
departments during their daily operations and promote the fulfillment of all ESG-related key * Occupational health and safety * Employee engagement survey
performance indicators and goals under the guidance of the ESG working group. * Employee Activities
ESG Governance Structure * Sustainable supply chainSuppliers and * Supplier communications
* Supplier empowerment
partners * Supplier conferences
Key resolutions * Transparent procurement
* Green products and designs
In April 2023 the Company held the 19th meeting of the seventh Board of * Industry conferences
* Industry exchanges
Directors approved the "Proposal on Renaming the Strategy Committee of * Industry-academia collaboration
Communities * Facilitation of the Industry Development
the Board of Directors" after deliberation renamed the "Strategy Committee" * Public benefit activities
and industries * Public welfare donations
as the "Strategy and Sustainability Committee" and added the ESG related * Rural revitalization
* Addressing climate change
decision-making functions the original responsibilities. * Environmental protection
* Biodiversity and ecological protection
In June 2023 the Company held the twentieth (extraordinary) meeting of * Information disclosure and dissemination * Regular and temporary information disclosure
Media
the seventh Board of Directors at which the 2022 Environmental Social and * Responsible business and marketing * Marketing information review
Governance Report was approved after deliberation.
16172023
Environmental Social and Governance Report Our Sustainability Management
Identification of Material Issues
Based on our sustainable development strategies and in combination with our stakeholders' needs and Materiality Matrix
expectations in normalized communications we have identified 25 material ESG issues with reference to
relevant domestic and foreign standards macroeconomic policies and industry trends etc. During the reporting
period we evaluated material issues and carried out our work based on the sequence of "issue identification
- stakeholder survey - generation of a materiality matrix" to understand the extent to which the stakeholders
attach importance to each issue and to clarify the responsibilities at the execution level to continuously improve
our ESG management. E1
S2 S1
Work Procedure for Material Issues G4 E2
G2
G3 G1
E4 S3
Issue identification S4S5
Refer to our development orientation and ESG strategy E3
Identify 25 ESG issues according to domestic and foreign standards as well as
industry development trends. S8 S6
E5 G5
S9
S7
Stakeholder survey E7 E6
Conduct materiality research on material issues for our internal and E8
external stakeholders through interviews questionnaire distribution etc. S10
S11
Prioritize the issues by materiality based on the survey results and different G6
internal and external dimensions of the Company.Material Materiality for our development Substantially
material
Generation of a materiality matrix
After prioritizing the issues by materiality draw a materiality matrix to show
their importance inside and outside the Company. Environmental issues Social issues Governance issues
The ESG working group analyzes and summarizes the issues according to
our situation and generates a final materiality matrix. E1 Circular economy S1 Technological innovations S7 Employee development G1 Intellectual property
E2 Chemical safety S2 Product quality and safety and training protection
E3 Energy management S3 Customer services S8 Employment employee G2 Risk management
E4 Green products and designs S4 Sustainable supply chain rights and interests
E5 Waste management S5 Occupational health and S9 Facilitation of the
G3 Business ethics
industry development G4 Data security
E6 Addressing climate changes safety
Responsible business and S10 Social development and G5 Transparent E7 Biodiversity and ecological S6
protection marketing
public welfare disclosure
S11 Equality inclusion and
E8 Conservation of water diversity
resources
G6 Operation by the Board of Directors the Board of Supervisors and the general shareholders' meetings
1819
Substantially
material Materiality for our stakeholders Material2023
Environmental Social and Governance Report Our Sustainability Management
Units Responsible for Material Issues
Supply Chain Strategic Process Legal
Units responsible for Mark- Techn-eting ology Centre/ Develop- Offices Equip-ment
Project
Depart- HR Depart- Securities Units responsible for Audit
Standar- Inform- Kingfa Kingfa Petrifaction Other
Purchasing ment Depart- ment Department Depart- Quality dization ation IP Office Enviro- Biomat- segment subsidiaries material issues Center Center ment material issuesDepartment Depart-ment ment ment Office Center nmental erials Bases and bases
E1: Circular economy E1: Circular economy
E2: Chemical safety E2: Chemical safety
E E3: Energy management E E3: Energy management
E4: Green products and E4: Green products and
designs designs
E5: Waste management E5: Waste management
E6: Addressing climate E6: Addressing climate
changes changes
E7: Biodiversity and E7: Biodiversity and
ecological protection ecological protection
E8: Conservation of water
resources E8: Conservation of water
resources
S1: Technological
innovations S1: Technological
S2: Product quality and innovations
safety S2: Product quality and
safety
S3: Customer services
S3: Customer services
S4: Sustainable supply chain
S S4: Sustainable supply S5: Occupational health and S chain
safety S5: Occupational health
S6: Responsible business and safety
and marketing S6: Responsible business
S7: Employee development and marketing
and training S7: Employee
S8: Employment employee development and training
rights and interests S8: Employment
employee rights and
S9: Facilitation of the interests
industry development
S9: Facilitation of the
S10: Social development and industry development
public welfare
S10: Social development
S11: Equality inclusion and and public welfare
diversity
S11: Equality inclusion
G1: Intellectual property and diversity
protection
G1: Intellectual property
G G2: Risk management G protection
G2: Risk management
G3: Business ethics
G3: Business ethics
G4: Data security
G4: Data security
G5: Transparent disclosure
G6: Operation by the Board G5: Transparent disclosure
of Directors the Board of
Supervisors and the general G6: Operation by the Board
shareholders' meetings of Directors the Board
of Supervisors and the
indicates "responsible for" indicates "responsible for specific parts indicates "participation" or "support" general shareholders'
or "heavily involved in" thereof" meetings
2021
Environmental (E) Social (S) Governance (G)
Environmental (E) Social (S) Governance (G)2023
Environmental Social and Governance Report Our Sustainability Management
Contributions to UN Sustainable Development Goals
SDG 1: No poverty SDG 17: Partnerships for goal achievement
The Company actively participates in the national rural revitalization work supports and makes donations to public We actively participate in exchanges exhibitions and other activities related to materials and sustainable
utilities such as health care firefighting and education in various forms while serving and giving back to the public. development and realize the coordinated development of the industry through intuitive and high-quality
exchanges.SDG 3: Good health and well-being The Company attaches great importance to improving the suppliers' capabilities and is committed to
coordinated development with suppliers. We maintain close communications and exchanges with our
We enhance our employees' safety awareness and create a safe healthy working environment. suppliers by holding supplier conferences conducting supplier training and implementing supplier
support projects to achieve mutual benefits and win-win.SDG 4: High-quality education SDG 16: Peace justice and strong institutions
The Company is committed to improving the employees' skills and knowledge
through continuous internal and external training to provide tailor-made training The Company improves its governance capacity and risk management to ensure its long-
opportunities for the employees at different stages to achieve self-enhancement. term development and maximization of its interests. We strictly implement internal
control and risk management to ensure our steady development.Adhering to the concept of rejuvenating the country through education the
Company supports the development of education through donation activities. In
combination with our businesses we output knowledge through popular science
activities to guide minors to foster their awareness of science. SDG 13: Climate action
The Company achieves the goal of carbon neutrality by reducing carbon
SDG 5: Gender equality emissions improving energy efficiency and promoting clean energies.The Company actively develops and adheres to diverse and inclusive cultural Sustainable We optimize the energy structure and make our products greener by introducing more environmentally friendly energy-saving production concepts pays special attention to the protection and improvement of processes and technologies in an attempt to reduce our carbon
the female employees' rights and interests emphasizes equality between emissions and make contributions to the global response to climate
men and women ensures that the female employees' rights and interests change.are fully protected at work and prevent any forms of infringement and Development
discrimination.SDG 12: Responsible consumption and production
SDG 6: Clean water and sanitation Goals The Company consistently guarantees product safety strictly controls We continuously strengthen our management and conservation of water the use of hazardous substances in products and establishes a safety
resources which not only helps us reduce our operating costs and improve assessment mechanism for hazardous substances to ensure that the
our economic benefits but also makes us less reliant upon natural water production process complies with regulatory requirements and delivers
resources eases our pressure on water resources and maintains ecological products and services up to high standards.balance.SDG 7: Affordable and clean energy SDG 11: Sustainable cities and communities
The Company annually sets the overall energy efficiency target requires all its plants We promote collaborative disposal of urban wastes propose an integrated
to set corresponding targets according to their production and operation situation comprehensive overall solution of "making the best use of plastics" supply
continuously tracks the achievement of the targets and increases the energy utilization environmentally friendly high-performance recycled plastics and accelerate green
efficiency during our production and operations. lowcarbon transformation of the entire plastic industry chain.The Company regularly carries out energy-saving renovation of workshops and
significantly reduces energy consumption and greenhouse gas emissions through SDG 10: Reduced inequalities
coordinated optimization of management and technologies.The Company upholds equality and inclusion and resolutely opposes any form of discrimination. We
SDG 8: Decent work and economic growth are committed to building a diversified and harmonious workplace environment to ensure that all employees are respected and accepted.We adopt a salary structure that integrates base salary and variable pay with a view to establishing a salary
incentive system that not only reflects internal fairness but also demonstrates external competitiveness for
our employees. SDG 9: Industry innovation and infrastructure
We award shares to our core employees and internally implement a target responsibility system for our posts The Company has continuously developed the world's leading technology R&D platform created an
which stimulates our employees' autonomy and creativity keeps their goals in line with our goals and allows R&D system known as "13551" improved its independent R&D capabilities and developed new green
our employees to make and share development achievements with us. renewable products to lead the industry's technological upgrading.
22232023
Environmental Social and Governance Report Our Sustainability Management
Sustainability Honors
The Company vigorously promotes ESG work. While developing our principal businesses we advocate the
concept of recycling and renewal focus on recycling plastic wastes reduce their pollution gain recognition and
honor from the outside and encourage ourselves to advance bravely.GoldenKey. SDG Forerunner Excellent Case of "Beat Plastic Pollution" Class 1 Work on Excellent Practice Case of Enterprises with standardization outcomes
China Sustainability Tribune APP China Environment News "Governance of Plastic Pollution" in 2023 China Resource Recycling Association
China Development and Reform News
Shanghai Kingfa - Kingfa (Europe) -
Silver Medal Silver Medal
Industry Leader Excellent ESG Case among Listed Aona Award - 2023 Low-Carbon
China National Resources Companies in 2023 Business Pioneer
Recycling Association China Association for Public Companies Organizing Committee of the Social
Responsibility Conference Kingfa (India) - Jiangsu Kingfa - Silver Medal Bronze Medal
EcoVadis
"Annual Concerned Enterprise"
on the ESG50 List
Bloomberg Green
24252023
Environmental Social and Governance Report Topic
Circular Economy Shaping New
Topic Strategic goals Progress in 2023
Wonderful Lives By 2030 the Company will produce In 2023 the Company produced
1 million tons of green plastics 0.2192 million tons of green plastics
Intensively implementing the strategic development plan for circular economy in the "14th Five-year Plan"
we actively assume social responsibilities. As a leading enterprise in the advanced materials industry the recycle recycled
Company has maintained the original aspiration for creating a wonderful world and remained committed 1million tons of waste plastics
to coordinating "the plastics the mankind and the earth". By promoting green designs of key products 0.218million tons of waste plastics
promoting circular development strengthening comprehensive utilization of resources and promoting and manufacture and manufactured
coordinated disposal of urban wastes the Company has established an industrial resource recycling system 1million tons of recycled plastics.to increase resource utilization efficiency and create a beautiful new life. 0.2802 million tons of recycled plastics.Green Designs of Key Products The Company has developed a variety of special engineering plastics including special polyamide - Vicnyl HTPA (which may be applied
in LED reflection brackets electronic connectors automotive wiring harness sheaths water purifiers\water filters). We have successfully
The Company actively responds to customer requirements for environment-friendliness according to the developed low-carbon products among which Vicnyl PA10T contains a biochar of 40-60 wt% rated two stars in terms of the bio-based
national strategic plan for carbon peaking and neutrality. We constantly make innovations in our product certification. The carbon emissions of the new-generation bio-based polyamide material - Vicnyl PA5T/X are 20% lower than those of PA6T
designs in an attempt to promote the green designs of key products and facilitate the sustainable development of the same specification. Besides we actively perform low-carbon deployment develop bio-based LCPs bio-based polyamides with long
of products through innovative technical solutions and selection of environmentally friendly raw materials. carbon chains bio-based polyamide elastomers etc. and promote green product designs in subfields.The Company actively explores bioplastics1 and constantly develops new products. We have developed a variety of new products including
Low-carbon improvement of modified nylon PBS PBAT and PLA which have satisfied the multi-faceted market demand contributed to a substantial increase in our market share
and consolidated our leading position in the industry. The company also conducts forward-looking research plans technical research
engineering plastics and industrialized construction on
bio-based monomers and materials
Low-carbon technologies Low-carbon raw materials Low-carbon nylon and promotes the extension of the
industrial chain.Lightweight technology: Bio-based materials PCR nitrogen-based flame- Shopping in co Agricultural
Promote the iterative upgrading PCR materials retardant nylon PCR reinforced Our active R&D of bio-based materials mmercial super mulch films
of technologies including steel PIR materials nylon PRC red phosphorus-
may avoid or reduce the use of fossil markets
replacement steel by plastics based flame-retardant nylon resources thereby reducing our
high performance low density PCR brominated flame- dependence on fossil resources and
microcellular foaming and thin wall. retardant nylon reinforced carbon emissions. Compared with
Long useful life: Reduce carbon bio-based high-temperature fossil-based BDO bio-based BDO
E-commerce Disposable
emissions by prolonging the useful nylon organic phosphorus reduces the carbon footprint by
express delivery tableware
life of materials and reducing flame-retardant bio-based more than 40% and will be put into
material consumption. high-temperature nylon and production in 2024. Compared with
Carbon reduction in the brominated flame-retardant
the fossil-based PBT the bio-based
production process: Improve bio-based high-temperature
PBT demonstrates a decrease of about
nylon etc. 25% in the carbon footprint and will be the production stability and launched in 2024.product performance; increase Biodegradable Materials of the Company
the production capacity and rate
of conforming products; and
upgrade equipment for low energy 1Bioplastics refer to not only plastics made of non-food-derived bio-based materials but also non-food-derived bio-based plastics that can be fully degraded into
consumption. harmless substances over a short period of time under natural conditions or composting conditions to feed back the ecosystem. At present fully biodegradable plastics
are globally regarded useful means for responding to plastic pollution especially the pollution of disposable plastic wastes such as straws lunch boxes and bags.
26272023
Environmental Social and Governance Report Topic
Biodegradable products of Kingfa Medical
Isolation gown Shoe covers
Product materia: Polybutylene adipate terephthalate + polylactic acid Product material: Polylactic acid
Biodegradation rate: The degradation rate is 94% over 90 days and Biodegradation rate: The degradation rate is 94% over 90 days and the
the biodegradation rate is up to 98% over 120 days. biodegradation rate is up to 98% over 120 days.Protective clothing Caps
Product material: Polybutylene adipate terephthalate + polylactic acid Product material: Polylactic acid
Biodegradation rate: The degradation rate is 86.3% over 90 days Biodegradation rate: The degradation rate is 94% over 90 days
and the biodegradation rate is up to 90.7% over 120 days. and the biodegradation rate is up to 98% over 120 days.Shoe covers Masks
Product material: Polybutylene adipate terephthalate + polylactic acid Product material: Polybutylene adipate terephthalate + polylactic acid
Biodegradation rate: The degradation rate is 94% over 90 days and the Biodegradation rate: The biodegradation rate is up to 97.5% over
biodegradation rate is up to 98% over 120 days. 180 days.Caps Gloves
Product material: Polybutylene adipate terephthalate + polylactic acid Product material: Nitrile rubber
Biodegradation rate: The degradation rate is 94% over 90 days and the Biodegradation rate: The degradation rate of compost is 26.09%
biodegradation rate is up to 98% over 120 days. over 225 days.Isolation gown
In terms of recycled plastics certification the Company has obtained TüV Rheinland's world's first certificate
for Ocean Bound Plastic (OBP) Recycled Content UL2809 Certificate for Recycled Plastic Content and Global
Product material: Polylactic acid Recycled Standard (GRS) Certification etc. As of the end of the reporting period we had been issued 60
Biodegradation rate: The degradation rate is 96% over 90 days certificates for Ocean Bound Plastic (OBP) Recycled Content 102 certificates for PCR content 8 certificates for
and the biodegradation rate is up to 98% over 120 days. chemically recycled plastics 1 certificate for pre-consumer recycled plastic content and 2 certificates for bio-
based recycled plastic content. The Company has provided products and services for thousands of internationally
renowned enterprises in more than 130 countries and regions around the world. Our environmentally friendly
high-performance recycled plastic products are widely used in many industries.
28292023
Environmental Social and Governance Report Topic
Promotion of Circular Development
Promoting circular development is an important path for building a sustainable development model realizing
a green economy and facilitating efficient utilization of resources. We realize industrial upgrading and
transformation reduce our reliance on natural resources decrease environmental pollution and promote green
low-carbon and circular development of the social economy by promoting resource recycling and research on Case Cooperative promotion of recyclable pallets
recycling technologies.The Company focuses on the recycling of resources actively promotes the
use of recyclable pallets eliminates disposable wooden pallets and reduces
Case Recycling and reuse of internal materials waste production while cutting costs in an attempt to create an efficient
expedient and environmentally friendly supply chain system with customers
to respond to the national environmental protection policies and achieve
Kingfa Carbon Fiber continuously optimizes the use of materials in the internal transfer process increases sustainable development. As of the end of the reporting period the company
the value of recycling materials promotes the reuse of resources and cuts production costs. had cumulatively cooperated with more than ten customers on recyclable
pallets. Each recyclable pallet was used 9.69 times on average and the use of Wooden Pallets VS. Recyclable
wooden pallets was reduced by 19385. Pallets
The Company loads the goods according to the shipment plan count the number of recyclable pallets
shipped with the products according to the palletization quantity and ensure that the goods are delivered
to the customers with pallets up to pertinent quality standards.The Company
Replacing paper tubes with When receiving the goods ships the goods The Company's logistics
Recycling of waste ton bags Turnover of platform boards
prepreg PP tubes the customer shall confirm service provider regularly
the quantity and the pallet Operation recycles pallets from the
damages on site and report the Mode of The customer's premise and
nonconformity with the quality Recyclable Company confirms the quantity on
Previously the paper Used for collecting waste The platform boards The customer Pallets recycles the standards to the Company. receives the goods pallets through site. The pallets recycled tubes could not be tubes and yarn in process for internal turnover a logistics service will be used for the next
reused once damaged they are transported back and carrying are mainly After using the products up the provider
customer shall stack the empty shipment.but the alternative PP to the production lines for replaced by iron ones for pallets in order before the
tubes demonstrate far recycling after use by the repeated use. Company's logistics vehicles
higher strength. Without waste disposal companies. arrive on site for recycling as
being affected by the scheduled.environment they may be
recycled more than 5 times.Significance of Recyclable Pallets
Recycling of Carbon Fiber Materials by the Company
Improve the overall quality of pallets and Recycle resources to support realization of
reduce the probability of damages broken carbon peak and carbon neutrality
packages and cargo damages
Improve the appearance and brand image of Replace the disposable pallets which are
products more environment-friendly and economical.Enhance weather resistance impact resistance Optimize the industrial supply chain to
and carrying capacity achieve upstream and downstream cost
reduction and efficiency increase
30312023
Environmental Social and Governance Report Topic
Promotion of Collaborative Disposal of
Case Research on a national key recycling program
Urban Wastes
In 2023 the national key research and development program titled "Green Recycling and High-quality Utilization With the advent of the era of low-carbon circular economy the development of recycled plastics2 has become inevitable. To solve
Technology and Demonstration of Waste Plastic Packages Based on Structure-activity Relationships" that the the problem of plastic pollution and support the achievement of the goal of carbon neutrality the Company has relied on the state
Company participated in was completed and is undergoing acceptance inspection. In this program the Company key laboratories for efficient development and high-quality utilization of waste plastic resources the State Engineering Laboratory
undertook research on the "development and application of smart identification/selection equipment and green for Plastic Modification and Processing the National Industrial Innovation Center of Advanced Polymer Material its own National
cleaning process for mixed waste plastic packages" where the Company revealed the structure-activity relationships Corporate Technology Center the Postdoctoral Research Station and the Sustainable Development Technology Research Institute
of the mixed waste plastics under the coupling effects of multiple external fields made breakthroughs in the structure- etc. Since 2004 we have gradually established a comprehensive complete and closed technical recurrent recycling system for
oriented machine vision-based identification and precise sorting technologies increased the identification and the reduction of carbon emissions covering the whole process of waste plastics from intelligent identification of waste plastics
selection rate of homogeneous materials shortened the post-disposal procedures and reduced the recycling load. automatic sorting green cleaning waste classification by quality and useful life cascade regeneration and high-quality utilization.We studied the models of interactions between mixed waste plastics and pollutants the separation model and speed We also put forward integrated and comprehensive overall solutions for "utilizing the plastics to the greatest extent" to supply
under the effects of external forces and thermal energy. We solved the problem that it was difficult to thoroughly environment-friendly high-quality recycled plastics to the industries of packages automobiles IT electronics electric appliances
remove the pollutants from the waste plastics and the efficiency was low in the pre-proposal process realizing rapid furnishings electrical appliances electric tools buildings energies express delivery and so on and accelerate the transformation
efficient and green cleaning of mixed plastics. In this project applications have been filed for 59 Chinese invention of the entire plastic industrial train into a green low-carbon recycling chain.patents including 37 granted patents and 8 Chinese utility models; 14 standards or specifications have been
published including 4 Chinese national standards and 10 group standards; applications have been filed for 2 software
2
copyrights and 61 academic papers have been published. Recycled plastics mean plastic raw materials obtained from processing of waste plastics through physical or chemical methods such as
pretreatment melting granulation and modification featured by pollution reduction carbon reduction and great recycling advantages.Recycled plastics
Equipment investments Recycled
were reduced by 67% homogeneous
Metal content was materials
decreased to 0.02% Recycled Repeated use
Innovation Creative
Separation purity was heterogeneous achievements products Fossil raw
increased to 98% materials
Production of fossil-
materials based plastics
Separation efficiency was Recycled 3D printing
increased by over 3 folds wires Consumption
Energy consumption per Recycled pulp Biological raw Production of bio-
unit was cut by 33% PET intermediates materials based plastics
Water consumption per Polyurethane Repeated use
unit dropped by 20% adhesives
Equipment costs were cut Logistics boxes
by 80%
Bioplastics Sorting
The Company's Economical Plan for Plastic Recycling - Integrated
Overall Solutions for "Use of Plastics to the Greatest Extent"
3233
Landfill Incineration Discharge into environment
Recycling
Sorting
Cleaning and crushing
Hazard-free treatment
Odor and impurity
removal Manufacturing of finished products
Modified pelletizing
Two major focuses2023
Environmental Social and Governance Report Topic
Diverse sources of recycling Diverse application scenarios
In
du
As of the end of the reporting period the Company During the reporting period we cumulatively
had domestically built two production bases of participated in recycling 0.1 million tons of waste
recycled plastics including Qingyuan Base and plastics such as PP HDPE PS ABS and PC from
Pizhou Base which are situated in South and North domestic sources and 0.098 million tons of other
China respectively. We have built factories with a waste plastics from industrial sources (including
total area of 0.3 million square meters 6 production dismantling and factory wastes) including ABS
workshops of high-performance recycled modified PS PP PA6 PA66 and PBT. We got involved in
n plastics more than 60 highly standard production recycling 0.01 million tons of marine waste
lines and 6 production workshops for pretreatment plastics like PA6 PP and PE and 0.01 million tons of waste plastics with a high-quality treatment of PE from agricultural sources in total.capacity of 0.12 million tons of various waste
500+ high-quality suppliers Serve more than 1000 world-renowned enterprises plastics and an annual production capacity of more
60+ resource recycling outlets Applied in ten major industries than 0.3 million tons of recycled plastics.
Upstream Recycling Sources and Downstream Application Scenarios of Environment-friendly High-performance Recycled Plastics
Note: The aforementioned waste plastics were either granular crushed tied up or in other forms.Starting from recycling pre-treatment fine recycling high-quality utilization and other links the Company has
solved the pain points and difficulties on technologies equipment and environment-friendly actions in the Our innovative environmentally friendly high-performance plastic recycling and renewal technology for waste
recycled plastics industry one by one providing theoretical and technical support for the efficient utilization of plastics is not only helpful for solving white pollution but also significantly reduces energy consumption
waste plastics. and carbon emissions in the process of production compared with the use of raw materials. We have made
contributions to addressing climate change protecting the ecological environment and facilitating biodiversity.Recycling Pre-treatment Intensive recycling High-quality utilization
We have created a network for recycling plastic With persistent efforts for our R&D of core We have designed combination screws We analyze physical properties appearances
waste for multiple scenarios and channels of technologies and equipment we have made for extruders and melt filtration methods structures impurities and aging properties
industry architecture life and ocean etc. relatively substantial progress in the fields of to improve the appearance grade of our of recycled plastics and improve the defects
Having possessed a refined recycling model intelligent identification automatic sorting recycled plastic particles. of waste materials. By studying the impacts
we have developed more than 500 high- and removal of chemical impurities. We The odor intensity is reduced by combining of formulas antioxidants and impurities
quality suppliers of recycled plastics for each have increased our recycling efficiency and negative pressure water injection steaming we improve the mechanical and aging
subdivided recycling channel and built reduced resource waste. and infrared heating. properties of waste plastics combined with
more than 60 resource recycling outlets to For different types of waste plastics we 循环利用技术体系 the extrusion blending technology to obtain
continuously improve our front-end recycling have designed characteristic pre-treatment high-quality modified plastics which may
capabilities. equipment and lines. We have developed completely or partially replace advanced
materials in terms of properties.We cooperate with domestic large-scale specific environment-friendly cleaning agents
dismantling and recycling plants for direct and solvents by pollutant types. We have
disposal of the waste raw materials in the constantly optimized our technologies for
plants thus greatly shortening the recycling efficient cleaning and secondary pollution
chain and reducing recycling costs. control to mitigate process pollution.Recycling Technology System
3435
Life
Agriculture
Express delivery
Energies
Buildings
Electric tools
Electrical appliances
Furnishings
Electric appliances
IT electronics
Automobiles
Packages
The Company's environment-friendly recycled
plastics factory
ies
str
cea OEnvironmental
Responsibilities
Investments in Produced
environmental 0.2192
protection million tons of
RMB Recycling ratio of green plastics waste gas
66.8970%
million 26.26
Recycled
0.218 Recycling ratio of wastewater
million tons of
waste plastics 8.54 %
Number of Recovery rate of
national green Manufactured wastes
factories
50.2802
33.89%
million tons
of recycled
plastics
SDGs：2023
Environmental Social and Governance Report Environmental Responsibilities
Addressing climate change
The Company achieves the goal of carbon neutrality by reducing carbon emissions improving energy efficiency
and promoting clean energies. We optimize the energy structure and make our products greener by introducing
more environmentally friendly energy-saving production processes and technologies in an attempt to reduce our
carbon emissions and make contributions to the global response to climate change. Identify inspect monitor and manage emissions; establish a control system and
continuously optimize it; and gradually expand the application scope of green energies.Responding to the call for the dual carbon goal
In response to the national goal of "2030 carbon peaking and 2060 carbon neutrality" the Company has initiated
the "green low-carbon and circular" action. From 2021 the Company and its stakeholders worked together to Build green parks and green factories; promote relevant parties to practice green
establish a "carbon" management system inspect corporate carbon footprints according to related standards production living and office methods.continuously reduce carbon emissions and regularly disclose the progress of carbon neutrality.The Company has established a dual-carbon strategy with Kingfa characteristics planned to reduce plastic
pollution caused by its business operations while reducing carbon emissions and helped the industrial chain
reduce its overall emissions by 2060. For this purpose we have drafted a detailed dual-carbon action plan and Establish a green procurement mechanism and a carbon emission management system
low-carbon product strategy and accelerated our R&D of more low-carbon and environment-friendly products. for the supply chain to promote the realization of the emission targets of the supply chain.Carbon Goals of the Company
Select key products and check the carbon footprint of products according to
relevant standards; continuously improve and refine emission reduction work; and
regularly make them public.Compared with 2022 the In 2030 green plastics The Company will realize
greenhouse gas emissions (including fully complete carbon neutrality
per unit of products in 2030 biodegradable plastics by 2060. Construct R&D design production supply and service systems for green low-carbon
will be reduced by at least and bio-based materials) reproduction continuously improve efficiency and achieve the carbon emission reduction
30% on a year-on-year basis. of 1 million tons and target per unit product.
environment-friendly high-
performance recycled
plastics of 1 million tons
will be produced while the Construct a green plastic recycling system; promote and continuously improve it.waste plastics of 1 million
tons will be recycled.Create a full value chain to provide low-carbon solutions accelerate the overall emission
reduction of the industry and cooperate with the entire industry chain to verify the carbon
footprint of the product life cycle and continuously reduce emissions.Dual-carbon Action Plan
38392023
Environmental Social and Governance Report Environmental Responsibilities
As verified by TüV Rheinland an independent third-party organization the Company's greenhouse gas
inventories in 2023 included the modified plastics of the head office and within the territory of China as well
as 11 sites of recycled plastics. During the reporting period the total greenhouse gas emissions (Types I + II) of
these eleven sites were 281809.24 tons of carbon dioxide equivalents including 5250.49 tons of carbon dioxide
Accuracy authority and recognition of Biobased solutions: bio-resin or biobased flame equivalents from Type I direct emission and 276558.75 tons of carbon dioxide equivalents from Type II indirect
carbon emission data based on life cycle retardant Biobased additives energy emissions.assessment (LCA) Factory certification
Provisioning of data on carbon emissions Comparison of Greenhouse Gas Emissions in 2023 Third-party authoritative material certification
for the whole series of plans and 2022 in the Domestic Sector of Modified Plastics
Environmental substance certification and Year-on-year carbon
Carbon emission data computing system Sectors Item 2022 2023declaration of conformity for the whole batch emissions in 2023 and 2022
with capability for constant improvement
Type I emissions (t CO2) 3813.25 5250.49 /
Modified plastics Type II emissions (t CO2) 305625.07 276558.75 /
Carbon emissions per
0.180.13-28.65%
unit product (t CO2/ton)
Data on Carbon Low-carbon material Including Type I emissions (t CO2) 374.51 245.60 /Emissions solutions environment-
friendly high- Type II emissions (t CO2) 26982.33 27030.05 /
performance Carbon emissions per
recycled plastics 0.15 0.10 -28.92%
Low- unit product (t CO2/ton)
carbon
Product Notes:(1) The sites for statistical analysis of the data in the above table remained the same in 2023 and 2022 including 11 sites of
Strategy the head office modified and recycled plastics within the territory of China. Types I and II emission data have been verified
by a third-party organization. In 2023 the petrifaction segment was just put into production and the designed production
capacity was not fully reached. Related data is intended to be disclosed in the 2024 ESG report.
(2) Type I: direct greenhouse gas emissions including consumption of fixed equipment necessary for production fuel
consumption of means of transport production processes of raw and auxiliary materials refrigeration equipment
dissipation of the factories' septic tanks and other activities within the business scope.
(3) Type II: Indirect greenhouse gas emissions from incoming energies specifically electricity and steam provided outside
Quality Future the organizational boundaries.Control Planning (4)In case of any variances in the year-on-year emission reduction results between 2023 and 2022 they should be
attributable to the decimal places retained.Evaluation on Carbon Footprint of Low-carbon Products (Excerpt)
Complete production strengths and process Gain insight into the future low-carbon
Functional Recycled Decline of carbon
control of the factory development trend and make advance Respondent unit content (%) footprint (%) Reference Software Database
PCR Quality stability and GRS certification of arrangements for material solutions and
raw materials. Quality stability GRS and TC certification requirements etc.certifications of raw PCR etc. Cooperate with customers for joint ABS JY-1000 100 ≥ 90 GaBi10.6
A complete range of control procedures and development and truly help customers achieve
1kg
database/
the goal of carbon reduction modified
HP-126
systems for production capacity and process GaBi10 Ecoinvent3.8
GAR-011(L95)/ plastic stability database/
GAR-011(H95)/ particles 95 ≥ 85 GGCdatabase1.2
Properties and quality stability of finished GAR-011(R95)
products; strict control monitoring system HIPS-510 (R) 95 ≥ 80 HIPS-5197
40412023
Environmental Social and Governance Report Environmental Responsibilities
Clean Technology Opportunity Cleaning Technologies and Products
Product Production
The Company actively carries out R&D promotion and application of cleaning technologies to continuously application lines/ Key cases
improve its technologies expand the application scope of cleaning technologies and enhance its competitive scenarios products
advantages.Organic Thermoplastic composite laminates which are light recyclable and flexible with high
boards strength and low thermal conductivity lay a foundation for lightweight applications in the photovoltaic industry
Cleaning Technologies and Products
Product Production Honeycomb Sandwich boards show advantages such as lightweight high rigidity high impact application lines/ Key cases panels resistance resistance to high-temperature compression corrosion resistance and scenarios products recyclability
High-density polyethylene bottles are wholly recycled and successfully used as PPE materials are mainly applied in PV connectors and junction boxes. The Company
packages of daily chemicals thus realizing closed-loop recycling. Compared with the has developed modified PPE materials which exhibit resistance to high temperatures
use of brand-new materials such recycling reduces carbon emissions by 60% PV Product high dimensional stability and excellent low-temperature toughness. In 2023 the
Polypropylene is recycled from disposable lunch boxes features low-level impurities lines of PPE shipment quantity of these products exceeded 2000t. The products may be applied
high cleanliness mild odor and high transparency. The production system for the in PV modules of more than 40GW to help each customer reduce their carbon dioxide
whole process from pre-recycling treatment to granulation has undergone the emissions by more than 10 million tons every year
challenging tests of the US FDA which issued a no-objection letter to us in respect of
Recyclable our recycled PP (Grade C-G) for contact with food. Our products apply to toys food PC is mainly applied in the housings of PV inverters and power storage batteries.All aspects materials cosmetics and other fields with high requirements for environment-friendliness We have developed a highly heat-resistant tough weather resistant halogen-free
of life and We recycle used household appliances such as washing machines air conditioners Product and environment-friendly PC with an attractive appearance which has been widely
production and refrigerators. After crushing separation sorting high-temperature pre-friction lines of PC recognized by our customers. With a shipment quantity of more than 1000t in 2023
treatment color sorting post odor elimination and other processes recycled these products may be applied in related modules of over 2GW to support the
products with very few black spots low VOC desirable processing properties and reduction of carbon dioxide emissions by over 0.5 million tons every year
stable performance are obtainable. Our materials may be used in home appliances
furnishing automobiles and other fields to provide our customers with low-carbon
Product They may be applied in flame-retardant ABS materials for lead-carbon energy solutions
lines of storage battery cases demonstrating superb resistance to low temperature corrosion
styrene resistance permanent weather resistance desirable welding performance electrical
Energy storage resistance and other advantages
For the steel-plastic composite boards we adopt a continuous integrated rolling
process which integrates the continuous fiber-reinforced thermoplastic composites Blue hydrogen as one of the present important sources of hydrogen has attracted
Steel plastic and high-strength steel plates for packaging. Compared with the steel bottom guard much attention for its advantages of reducing greenhouse gas emissions and improving
composite plate these boards needn't undergo steel plate electroplating for corrosion prevention environmental balance. Ningbo Kingfa has realized an integrated and stable production
boards or PVC coating. The continuous fiber-reinforced thermoplastic composites show Propene and capacity of propylene and high-purity hydrogen through propane dehydrogenation characteristics such as high strength impact resistance scratch resistance and low high-purity equipment provided reliable hydrogen sources for end customers and promoted the
permeability which greatly improve the protection capability and useful life of the hydrogen wide application of blue hydrogen in different fields. In 2023 Ningbo Kingfa produced
bottom guard plates New 56101.612 tons of hydrogen-rich gases and purified 144.821 tons of high-purity
energies hydrogen. In terms of hydrogen filling it owns 10 hydrogen compressors and 16 filling stations
The composite laminates with advantages such as desirable mechanical properties
Sealed low water absorption flame-retardant property air-tightness high molding efficiency
New energy covers insulation withstand voltage environment-friendliness and recyclability may be
vehicles molded into specific shapes Case Preparation of national standards and creation of a quick evaluation system
During the reporting period the Company participated in the formulation of the
national standard titled Recycled plastics - Calculation of carbon emission from
Honeycomb Being light moisture-proof mold-proof and highly rigid with mild odor and low VOC
physical recovery which is China's first standard for calculating carbon emissions in
panels PP glass fiber honeycomb panels are moldable and preferred alternatives to paper the field of recycled plastics. The standard specifies the calculation requirements honeycomb panels calculation procedures system boundaries data collection calculation and report
details for physically recycled plastic products. In addition based on this standard the
Company has established a "rapid evaluation system for carbon emissions of modified
plastics" and obtained the invention patent certificate. The system will be used in the
R&D process of modified plastics. It will horizontally compare the carbon footprint A Method for Calculation of Carbon
of new/ old products by adjusting inputs such as raw materials transportation and Emissions of Polymers/Their
energy consumption to reduce carbon emissions of new products. Products and a Patent Certificate
42432023
Environmental Social and Governance Report Environmental Responsibilities
Environmental Management
Construction of Green Factories
While committed to expanding production and operations the Company attaches great importance to
environmental protection constantly explores green and sustainable development paths and integrates the The Company actively carries out the construction of green factories from six perspectives namely infrastructure
concept of sustainable development into its development strategies and management activities to promote management system energy and resource inputs products environmental emissions and environmental
its sustainable stable and healthy development. We have built a unique environmental management system performance. During the reporting period the Company was certified as an A+ Rated National Green Factory.based on our own types of production regional differences and management structure. We have continuously
and steadily performed environmental management in accordance with the latest environmental laws and
regulations as well as our own development objectives and policies. At present our main domestic production The Company Green manufacturing Green Kingfa
bases have been certified by ISO 14001 Environmental Management System.The Company has created an HSE management network in which the general manager is the top decision-maker Management system
and leader the system owners and the general managers of subsidiaries assume responsibilities at varying levels
and all employees participate. We clarify our departments' and employees' responsibilities for environmental
protection and assess their performance in environmental protection. Besides the Company implements a Products
stringent environmental accountability system to ensure that the responsibilities for environmental protection
are fulfilled effectively preventing and reducing the occurrence of environmental emergencies. Production process
Energy and resource inputs
Environmental
emissions
Team leader: general manager
Infrastructure
Executive deputy team leader: Deputy team leaders: system owners general The Company's model for building green factories
deputy general manager managers of subsidiaries
Team members: persons in charge of different parts Team member Team member Team member The Company Included in the list of national green factories
Architecture of EHS Management
The Company was evaluated as an
A+ rated (first echelon) national green Kingfa
The Company strictly implements the "three-simultaneity" system for environmental protection of construction factory. The Ministry of Industry and
projects to realize simultaneous design construction and commissioning of supporting environmental Information Technology proposed
protection equipment and main projects. The Company strictly supervises project design and declaration promoting "green enterprise codes" Ningbo Kingfa Wuhan Kingfa
environmental protection acceptance and application filing for a pollutant discharge permit. We promptly among green factories on a pilot
declare the environmental impacts of our construction projects and prepare their public files. Internally we also basis to perform a quantitative rating
of and code assignment to green
gradually promote technological upgrading of environmental governance factories. Through the green code
facilities. All our projects and premises have passed the environmental
impact assessment and undergone regular environmental audits. During the reporting period
the Company's position among all
green factories and in its industry is
the Company invested RMB
We have set a series of specific environmental goals to guide and promote intuitively presented to the buyers Kingfa Biomaterials Tianjin Kingfa
our continuous improvement and advancement in environmental financial institutions and relevant
protection. We hope to facilitate the improvement of our environmental 66.897million government authorities.management and environmental management measures through in environmental protection. Construction of National Green Factories by the Company and Its Subsidiaries
environmental goals.
4445
Performance2023
Environmental Social and Governance Report Environmental Responsibilities
Prevention and Control of Environmental Risks Green Office
The Company considers indicators of all departments such as administrative penalties related to environmental protection and the The Company has adopted a series of green office measures actively responded to environmental protection
number of failures in environmental monitoring in the performance appraisal. We have established a reward and punishment system initiatives reduced its carbon emissions form office work and contributed to building a cleaner and healthier
to truly guarantee our environmental management. Besides we require all our subsidiaries to keep and maintain environmental working environment and social environment.protection files of our environmental management process and results for reference.Develop an online approval system and an online procurement platform for office supplies to
The Company conducts compliance assessments on its existing environmental management standards in accordance with the encourage paperless offices and avoid unnecessary paper waste.national laws and regulations on the ecological environment to ensure that its environmental management complies with the latest
laws and regulations. During the reporting period we comprehensively refined and strengthened our environmental management of
the storage of hazardous waste updated made and posted relevant labels and marks made our environmental management more Post water-saving and energy-saving signs to create a good atmosphere for energy conservation
standardized and reduced the possibility of risk occurrence. and consumption reduction.The Company formulated the Emergency Response Plan for Environmental Emergencies the Investigation Report on Environmental
Emergency Resources and other normative documents conducted an environmental risk assessment on itself drafted special Use energy-efficient computers printers and other equipment to strengthen the maintenance
environmental emergency response plans and issued the Risk Assessment Report on Environmental Emergencies to identify and and management of lighting and air-conditioning systems.control environmental risks in time.During the reporting period When the air conditioners are in use set temperature zoning and remind the door closing.Discontinue their operations during rest.No general or more serious Our rectification rate of plans was100 %.environmental emergencies environmental hazards was Promptly adjust when to turn on and off the street lights and lighting devices according to
occurred in the Company on seasonal changes.which no administrative penalty 100 % of our employees % and our 100
was imposed by any governmental implementation rate of received on-the-job education and The elevators are put under group control and linked. Properly set when to start and shut
environmental protection authority. environmental monitoring training on environmental protection. down the elevators based on the flow of people to reduce unnecessary load-free operations
of the elevators.Strictly follow the regulations on garbage classification and disposal. Classify and mark
garbage bins.Case The subsidiaries organized training related to environmental risks to enhance
the employees' awareness of environmental protection. Green Office Measures
The Company its branches and its subsidiaries regularly organize training related to environmental
risks to increase the employees' awareness of environmental risks prevention and control. The training
covered the Company's environmental management system and process common environmental
risks and prevention and control methods. Through case analysis emergency drills and other forms
the training effectively helped the employees better understand and practice the knowledge they had
acquired and improve their ability to respond to environmental emergencies.Promotion of Environmental Protection by Liaoning Kingfa
Shanghai Kingfa Training on Compliance Kingfa Biomaterials Training on Ningbo Kingfa Training on
Management of Solid Wastes Management of Hazardous Wastes Environmental Protection
46472023
Environmental Social and Governance Report Environmental Responsibilities
Energy Management
Case Ecological protection and green home building
The Company annually sets the overall energy efficiency target requires all its plants to set corresponding targets
according to their production and operation situation and continuously tracks the achievement of the targets.The Company has formulated more than ten system documents such as the Energy Management Manual to
ensure the effective operation of the energy management system thereby improving the energy efficiency of its
production and operation. In addition the Company regularly carries out energy-saving renovation of workshops
and significantly reduces energy consumption and greenhouse gas emissions through coordinated optimization
Planting activity of management and technologies.In March 2023 Yuan Zhimin who was our
chairman led our senior management The energy consumption per Actual
team and about 200 employees in a Energy The energy consumption per unit has dropped by 12.86
planting activity. Different types of Performance
achievements in
unit has declined by 5 kWh/ton. kWh/ton and the energy has the modification
young plan tsjackfruits mangoes Targets been saved by more than 21 segmentmillion kWh.pomegranates and orchid trees were
planted in the " Kingfa Garden". The Optimize production processes
Company hoped that all the employees and procedures Strengthen energy management
could take advantage of this activity to The Company conducts an in-depth analysis of The Company has established a complete range
plant young trees of hope fertilize their energy consumption in the production process of energy management systems including energy
land of ideal achieve fruitful results of and reduces energy consumption by improving use planning measurement statistics audit
victory and create new glories for the process procedures equipment configuration and improvement. Through regular monitoring
Company's high quality development. and equipment operation efficiency. In addition analysis of energy use data and energy audit
we strengthen our monitoring of the production the Company is able to detect energy waste in a
processes to ensure the effective implementation timely manner and take corresponding measures
of various energy conservation measures. for improvement.Maintain and manage Carry out publicity and education
production equipment on energy conservation
Planting Activity of "Kingfa Garden"
Regularly inspect and repair production equipment The Company attaches importance to increasing
to ensure their normal operation and efficient the employees' awareness of energy Conservation
Earth Day Activity utilization. For energy-consuming equipment and improving their skills and enables the
reasonable operation methods and control employees to fully understand the importance of
In June 2023 Ningbo Kingfa organized strategies are adopted to reduce unnecessary energy conservation and actively participate in
Earth Day publicity and environmental energy consumption. energy conservation practices through activities
actions for the employees including such as knowledge lectures competitions and
cleaning the environment reducing publicity weeks on energy conservation.pollution of wastes and plastics Promote energy-saving
actively responding to the call of World technologies and equipment
Environment Day and practicing the Establish an incentive mechanismThe Company actively introduces and promotes
concept of sustainability. advanced energy-saving technologies and The Company has established an incentive
equipment including high-efficiency motors fund for energy conservation to commend
energy-saving lamps and intelligent control and reward departments and individuals
Earth Day Activity of Ningbo Kingfa systems. The application of these technologies with outstanding performance in energy
not only improves energy efficiency but also conservation. This incentive mechanism
reduces production costs. has effectively stimulated the employees'
enthusiasm for energy conservation and
promoted in-depth energy conservation.
48492023
Environmental Social and Governance Report Environmental Responsibilities
Case Intelligent power metering control system Case Technical transformation project for energy conservation
With the goal of energy consumption and consumption reduction the Company has continuously The Company identified that the 8 air compressors in the South China base had much
improved the power consumption measurement method found out the energy consumption of Energy space for energy saving. By systematically sorting out the problems it was found
equipment in each module gradually created an intelligent power metering control system and explored conservation of that the air compressors in the South China base were mainly manually monitored
the space for optimizing energy conservation. In 2023 the background power metering program of Kingfa the compressed and managed but the quality of the gas output from the air compressors and the
Medical's mask workshop was put into use and the power metering equipment of the glove workshop air system unit gas consumption were not monitored. The problems such as the operating
was upgraded. The data was further refined and classified laying a foundation for the construction of load of the air compressors pressure drop in pipes and pipe leakage could not be
an intelligent control system. Data support was provided for power supply transformation of production accurately identified. In addition the continuous loading and unloading of the air
lines off-peak power consumption to effectively reduce energy consumption. compressors consumed a lot of energy. The air compressors refrigerant dryers
and other equipment were not interlocked. As a result after the air compressors
Key Performance were turned off the corresponding equipment could not be automatically shut
down. In combination with the problems the Company carried out targeted
During the reporting period our energy consumption is as follows: rectification and reduced the energy consumption per unit by 2.1 kWh/ton.Primary energy
Natural gas Diesel To reduce the energy consumption of production equipment Kingfa Medical's
122408572 284 non-woven workshop upgraded the existing production line equipment. Nominal cubic meter Tons Recovery of The waste heat of the drying tail gas generated by the water electret ovens
waste heat was recycled and advanced environment-friendly heat exchange equipment
Coal water slurry Propane from melt- was introduced. The waste heat of the tail gas was used for fresh air heating
blown water through the heat exchanger cores to reduce energy loss and effectively cut the 424676 Tons 444958 Tons electret ovens power consumption of the equipment. Actual production verified that after the
transformation and upgrading the energy consumption of water electret ovens
in each production line was reduced by 15%-20%.Secondary energy
PV power generation (self
Medium-pressure steam generation for self use) Case Use of clean energy
2787760.571 Tons 1334 '0000 kWh
In response to the country's call for vigorous development of clean energy the Company actively promoted the
Low-pressure steam Purchased electricity construction of photovoltaic power generation projects and clean energy procurement in production bases
injecting clean momentum into its green and low-carbon development.
325068.726 Tons 199721 '0000 kWh As of the end of the reporting period our rooftop photovoltaic installed capacity reached 13.656 MW and the
capacity under construction was 24.12 MW. During the reporting period photovoltaic power generation was
up to 14 MWh. In the future the Company will further promote photovoltaic construction projects expand
Total energy consumption Intensity of energy consumption or perform rooftop photovoltaic construction
in production bases increase the proportion of
1210877.98 0.25 tons standard coal/ renewable energy in power generation and continue
Tons of standard coal RMB '0000 operating revenue to optimize the energy structure.Besides Qingyuan Meijin completely utilized
renewable electricity during the reporting period.Note: The PV power generation is included in the total power consumption. rooftop photovoltaic
50512023
Environmental Social and Governance Report Environmental Responsibilities
Resource Conservation
Water resources management
Water Resources Management Measures
The Company strictly abides by the management and control quality requirements for water use water reuse and
sewage discharge etc. We reasonably regulate our use of water resources in daily operations and set annual water
resources management goals and indicators based on our previous year's water resource consumption and our
Perform regular patrol inspections and equipment inspections to identify and resolve
operation and development strategies. In addition the Company identifies potential risks of water resources in a potential risks in time.timely manner draws up targeted water conservation plans for plants at different places of business and continuously Perform risk assessment and analysis for water use; take corresponding management
carries out reclaimed water reuse projects to effectively improve water use efficiency and reduce water waste. measures for different levels of risks.Water Risk
Management Establish a system for monitoring water consumption and water quality in real time;
General Manager and find anomalies and potential risks in water use through data analysis.Strategy and Sustainability Committee Establish an emergency response mechanism for water safety to ensure rapid and
Perform water resources management of the Supervise the implementation of our water effective responses to water accidents.Company and ensure effective implementation resources management policy and evaluate Regularly conduct training on the safety of water use to increase our employees'
of our water resources management policy. their contributions to our sustainable awareness of water risks and their ability to deal with the risks.Set annual water resources management development.goals and targets and approve relevant Provide professional advice and guidance
plans and budgets. Improve the water resources management system; draft detailed plans and budgets on water resources management and for the use of water resources; and clarify the water consumption indicators and
Monitor the overall progress of promote innovation and development water conservation targets of all departments.water resources management and of our water resources management.evaluate the effectiveness of water Regularly maintain and inspect water-using equipment to ensure their normal Participate in setting annual water Conservation operation and efficient use; promote the use of water-saving equipment and reduce resources management. resources management targets daily water consumption.Coordinate and solve major and indicators and review of water resources Organize knowledge popularization activities on water resources and water problems with water related plans and budgets. resources management training to improve our employees' skills in water resources
resources management management and water conservation.and promote continuous Supervise and assess the use of water resources; establish an incentive mechanism
improvement. for water conservation to encourage all employees to actively participate in water
conservation activities.The person responsible
for execution: Process Executors: full-time Appropriate use of water resources: Optimize production processes reduce water
Equipment Department factory engineers consumption in the production process and improve water resource utilization
efficiency; implement water recycling reuse wastewater after treatment improve
Draft and implement water sewage treatment efficiency and reduce the demand for freshwater; strengthen
resources management plans to Specific responsible Implementing specific water rainwater collection and utilization and reduce the use of tap water.persons: managers of the
ensure that all water conservation resources management branch factories Expand the application scope of reclaimed water: On the premise of guaranteeing water
measures are effectively measures including maintenance quality and safety explore the applications of reclaimed water in more production links
implemented. Perform the water resources management of of water-using equipment and and for non-production purposes to further reduce fresh water consumption.their branch factories to ensure fulfillment
Regularly organize monitoring promotion of water conservation Compre- Explore technological innovations: Pay attention to the latest technological of annual water resources management
and analysis of the use of technologies. hensive development in the comprehensive utilization of water resources at home and abroad goals and indicators.water resources and propose Assist the managers of the factory Water Use and actively introduce advanced technologies and equipment; cooperate with scientific
improvement measures. Organize the implementation of their branches in water resources research institutes and institutions of higher learning to carry out research on the
respective branch factories' water management and provide technologies for recycling reclaimed water to promote technological innovation and Coordinate the water resources conservation measures and supervise the technical support and guidance. transformation of achievements.management of our branch use of water resources. Establish an incentive mechanism: Establish an incentive mechanism for recycling
factories to ensure that our water Collect and analyze the data on reclaimed water; commend and reward departments and individuals with outstanding
resources management policy is Report the progress and problems of water the use of water resources to performance in recycling the reclaimed water.put in place in the factories. resources management to the Process provide decision-making basis for
Equipment Department on a regular basis Strengthen publicity and training: Organize training on the technologies for recycling the management. reclaimed water and knowledge popularization activities.and cooperate with the improvement work.Water Resources Management Architecture
52532023
Environmental Social and Governance Report Environmental Responsibilities
We continuously strengthen our 0.5 0.49 Management of Packaging Materials
management and conservation of 0.47
water resources which not only helps 0.42 The Company actively strengthens the management of packaging materials. We ensure a timely supply of
us reduce our operating costs and 0.4 packaging materials reduce waste and loss and optimize the production process to improve product quality by
improve our economic benefits but 0.36 0.34 implementing stringent procurement storage use and recycling systems for packaging materials. In addition also makes us less reliant upon natural strengthening the management of packaging materials is helpful for the Company to reduce the impact on the
water resources eases our pressure environment promote green production and create both economic and environmental benefits.on water resources and maintains 0.3
ecological balance. From 2019 to 2023 2019 2020 2021 2022 2023
the Company had reduced the water Water Consumption per Unit Yield of Modified Products in the Case Improvement of excessive packaging
consumption per unit yield of modified Past Five Years(m3)
products for five consecutive years.The Company cooperated with a company of logistics equipment to reduce excessive packaging
Case Project for Recycling of Reclaimed Water in the Park decrease the use of packaging materials on the premise of assuring quality of product transportation
and save packaging materials.Qingyuan Base clarifies in the park's public infrastructure plan that water shall be used to the greatest extent Before package improvement After package improvement In 2023
by adopting the principle of rainwater-sewage diversion clean water-sewage diversion and recycling of
reclaimed water. The wastewater from the production and storage areas of the entire park (including the
production wastewater within the areas and domestic sewage of employees) is separately collected and
discharged into the production wastewater treatment system with a planned treatment capacity of 500
cubic meters per day in the park. The treated effluent is completely reused for the park's plastic cleaning The use of paper
park greening and other links so that the wastewater from these areas may generally be recycled in full and tubes was reduced
no production wastewater is discharged outside. by 1308
3 paper tubes were used 2 paper tubes were
Case Water Circulating Operation before improvement used after improvement
The Company regulates the water circling operation. After the cooling water flows through the heat exchange
equipment that needs to be cooled down the temperature will rise. The water flows through the return pipe
to the cooling tower for cooling and falls into the pool. Then it is pressurized and transported out by the The use of kraft
water pump for recycling. papers and ring-
High-temperature cooling
water enters the cooling tower shaped protectors
through the return pipe Before improvement 4 was reduced by
The cooled water is Make use of the incoming wind to pieces of kraft paper and After improvement wastes 5232 and 3924pressurized and transported convect with the water sprinkled
into the heat exchanger Cooling Cooling from above to drain the heat 1.5 edge protectors were
were used for packaging
zone of the workshop Heat water source away and part of the water
dissipation. pump Operating tower evaporates in the convection
used for packaging
taking away the corresponding
Procedure evaporated heat.for Water
Circulation
Inlet of the cooling water The cooling water that has
circulating pump been cooled down flows into
the circulating water pool
Circulating
water pool
Store the circulating cooling water. Set upper and lower water levels for alarms. Water is automatically replenished
and water quality is inspected. The water will be discharged in case of high conductivity.
54552023
Environmental Social and Governance Report Environmental Responsibilities
Waste management
Performing our responsibility for environmental protection we have formulated a series of strict pollutant management Based on the principle of "collecting waste gases as far as possible by quality"
systems to ensure the standardized disposal of waste. Besides we actively promote wastewater reuse projects and the scientifically design an exhaust gas collection system to make unorganized
concept of "zero" direct discharge for environmental protection. We have successively carried out three waste improvement emissions organized for control.projects for wastewater waste gases and wastes in our bases in Shanghai Qingyuan and Zhuhai. The Company has Adopt fully closed negative-pressure emission measures for new projects and
formulated a regular inspection mechanism for pollutants and deployed online monitoring and early warning facilities for make VOCs collection efficiency exceed 95%.organic waste gases and wastewater to keep information about the discharge of pollutants in real-time. Waste gas For improvement of organic waste gases the three-chamber RTO combustion
management
We also adjust our management measures promptly according to the List of Identified Environmental Factors to effectively process is adopted and the treatment efficiency of the end-of-pipe treatment
reduce the negative impacts of pollutant discharge on the environment and human body to fully fulfill the responsibility process exceeds 90% which greatly reduces the waste gas emission and
for environmental protection by emitting pollutants up to standards. All our bases and branches entrust third-party resource utilization.organizations recognized by the state and local governments to inspect the pollutant treatment facilities and emission
compliance to ensure that all emissions conform to the standards for environmental protection. During the reporting
period the disposal of solid wastes hazardous wastes waste gases and wastewater of the Company met the national Rain and sewage diversion is implemented inside factories and 80% of the
requirements and the compliance rate of disposal reached 100%. production wastewater from the modification segment is reused for workshop
floor cleaning toilet flushing greening and road sprinkling after treatment by
Identification of Environmental Impacts of Pollutants a wastewater treatment station.Environmental factors Environmental impacts The domestic sewage is treated with three-compartment septic tanks and
Wastewater
discharged into a sewage treatment plant through the municipal pipeline after management
Dust flying Abnormal dust emissions harm human health conforming to the discharge standard.Emission of organic waste gases Atmospheric pollution and harm to human health
Pollutant leakage Water and soil pollution
Discard of empty reagent containers Soil pollution General industrial wastes are traceable and searchable in the whole process
Discard of empty chemical Failure to place wastes by class which causes pollution of solid of their production storage warehousing delivery and utilization. They are
containers wastes recycled internally sold to external organizations for recycling or general
Production of hazardous wastes Soil pollution industrial waste treatment units are entrusted for recycling and disposal.Noise production Noise pollution impairing the employees' hearing and health Waste Entrust qualified units to dispose of hazardous wastes.management
In the petrifaction segment reduce waste discharge through the sludge
drying process.ted
en
Principle
Tap the potential of Waste The production of When equipment is updated low-noise equipment is preferred.of waste recycling Control wastes is gradually
reduced. Annually entrust a nationally recognized environmental protection monitoring and comprehensive
department to conduct noise measurement and prepare the Boundary Noise Noise
utilization.Monitoring Report and the Workplace Noise Monitoring Report. management
Hazard-free
The disposal of wastes is scientific and appropriate. Control the degree of environmental Methods for Disposal of Four Wastes (Waste Gases Wastewater Wastes and Noise)
pollution within the scope permitted by national laws regulations and standards.
5657
Resource-ori
duc
tion
Re2023
Environmental Social and Governance Report Environmental Responsibilities
Case Improvement of treatment of three wastes by Kingfa Biomaterials Case Wastewater purification and treatment of Shanghai Kingfa
In 2023 Kingfa Biomaterials systematically assessed the risks in the treatment process of three wastes In 2023 Shanghai Kingfa designed and invested in a set of wastewater purification and treatment facilities
inspected the treatment facilities for the three wastes and equipment on the spot in combination with with a treatment capacity of 1000 cubic meters per day for the production of wastewater in the second
the Company's actual situation drew up an improvement plan and improved the treatment of three phase of the project and additionally equipped a "membrane bioreactor" as a deep purification device
wastes in a targeted manner. to assure the quality of reclaimed water to an extent that they may be reused in different production
or auxiliary links of the reclaimed water. After the facilities were put into use more than 1300 tons of
Improvement of Waste Gas Treatment production wastewater may be reused per month on average achieving "zero discharge" of wastewater.All organic process waste gases are collected and introduced into organic waste gas
treatment facilities or directly burned in boilers and incinerators.Online monitoring equipment for organic waste gases are mounted at major discharge outlets.Equip tetrahydrofuran storage tank and barrel areas with exhaust gas collection facilities.The collected exhaust gases are transported to boilers for combustion and emission.The non-methane hydrocarbon with a concentration of 100 ppm or higher is covered
and equip fans to deliver the gases produced in the sewage tanks to the boilers for
combustion and emission.Improvement of sewage treatment
Build buffer pools Maintain and clean sewage treatment
Lay drainage pipes stations
Mount automatic measurement Equip modified wastewater pretreatment
facilities systems (under construction)
Deep Purification of the "Membrane Bioreactor"
Improvement of waste treatment
Based on the Standard for Pollution Control on Hazardous Waste Storage (GB 18597-2023)
Set new marks for storage facilities and new labels for hazardous wastes and add Case Recycling of waste liquids of Kingfa Medical
zoning signs.Update the ledgers of hazardous wastes according to specifications. In 2023 Kingfa Medical finished the renovation and upgrading of its chlorine absorption system and acid-
Promptly point out and correct problems about storage of solid and hazardous alkali waste liquid system. In 2023 the chlorine absorption system recycled 1652 tons of waste liquid
wastes on site. to satisfy its own production needs and reduce its purchase of some raw and auxiliary materials; The
operating efficiency of the acid-alkali waste liquid recycling system has been improved. The quality of
reused acid-alkali has been effectively improved and the acid-alkali recycling rate has increased to 70%.
58592023
Environmental Social and Governance Report Environmental Responsibilities
Chemical Safety
Case Chemical control plan of Specialty Engineering Plastics Company
The Company strictly abides by the national laws and regulations including the Regulations on the Safety Administration of Dangerous
Chemicals. Adhering to the policy of "safety first prevention foremost and comprehensive management" we have formulated the
Control Procedures for Hazardous Chemicals where the regulations and requirements for procurement storage use and waste disposal Name of
of the hazardous chemicals are specified. The Company identifies strictly classifies and labels hazardous chemicals and records all hazardous Type Original orientation of use Control plan
major hazards of hazardous chemicals Based on the General Rule for Classification and Hazard Communication of Chemicals (GB13690-
2009) and List of Hazardous Chemicals. In addition our bases branches and subsidiaries regularly carry out hazardous chemical safety chemical
assessments. They have formulated elaborate on-site disposal plans for chemical leaks based on their actual production characteristics
built emergency response teams and prepared corresponding emergency materials. They regularly carry out training on operations of (Flammable)
hazardous chemicals and emergency drills on leaks to improve their own and their employees' ability to respond to hazardous chemical Acetic anhydride hazardous chemicals Raw material for production Reduce daily storage
emergencies to minimize the harms of accidents.(precursor chemicals)
Procurement Transportation
The Company strictly controls the The Company requires the suppliers of hazardous chemicals to entrust the carriers qualified (Flammable)
safety of hazardous chemicals from the for road transport of dangerous goods to carry hazardous chemicals. We strictly control and Acetic acid By-products Reduce daily storagehazardous chemical
source purchases hazardous chemicals inspect the incoming vehicles transporting hazardous chemicals requiring the vehicles and
from qualified suppliers and requires transport personnel to take fire and explosion prevention measures when entering areas
the suppliers to provide corresponding where flammable and explosive hazardous chemicals are stored and used. The vehicles
material safety data sheets. For the and personnel shall also be equipped with sufficient and effective emergency treatment (Flammable) Auxiliary material for Reduce daily storage and Mixed xylene
purchased hypertoxic precursor equipment and facilities as well as personal protection equipment. hazardous chemical production cancel them by the end of 2025
and explosive hazardous precursor When handling hazardous chemicals within the Company each department shall formulate
chemicals we take the initiative to safe operating procedures for handling hazardous chemicals based on the characteristics
report to the public security organs by of hazardous chemicals and educate and supervise employees to handle the hazardous (Corrosive) hazardous
regulations and perform due diligence. chemicals in a standardized manner. 16-diaminohexane Raw material for production Reduce daily storagechemical
Storage Use
(Corrosive) hazardous
For the storage of hazardous chemicals the Company strictly implements The Company has established a strict management Hydrochloric acid Laboratories Reduce daily storage
relevant regulations and standards such as the General rules for the Hazardous system for the use of hazardous chemicals. Our chemical
Chemicals Warehouse Storage and all hazardous chemicals are stored in relevant procurement storage management
approved hazardous chemical warehouses that conform to national standards. safety management use and operation personnel
have undergone relevant training and obtained Concentrated (Corrosive) hazardous
Besides the hazardous chemicals are separately stored in different areas and qualification certificates by national requirements. Laboratories Reduce daily storagesulfuric acid chemical
warehouses by properties. The hazardous chemicals warehouses shall be We have maintained a complete ledger for the
managed by personnel with corresponding professional knowledge and safety receipt and use of hazardous chemicals and regular
skills and equipped with reliable personal protective equipment. inventories are made.Laboratories environmental
The warehouses are equipped with corresponding monitoring ventilation sun The Company is equipped with personal protective (Corrosive) hazardous protection facilities of
protection fire prevention fire extinguishing explosion protection pressure equipment up to national standards strictly Sodium hydroxide Reduce daily storage
relief anti-poisoning disinfection neutralization moisture protection lightning requires the employees to wear corresponding chemical workshops environmental
protection anti-static anti-corrosion anti-leakage embankment protection personal protective equipment when operating protection workshops
isolation other safety facilities and equipment according to the types and hazardous chemicals and regularly conducts safety
characteristics of hazardous chemicals to ensure safe storage of hazardous inspections practical training and emergency drills.chemicals all the time. (Flammable) Discontinue the use of storage
Diesel Forklifts
Waste disposal Emergency response hazardous chemical tanks and reduce storage
We have formulated the Management Procedures for Four Types of Waste by relevant national and We have drafted the Emergency Plan
local laws and industry standards. The hazardous chemical wastes and other wastes produced in for Production Safety Incidents a (Flammable and Deploy safety valves and
the production process are collected classified and temporarily stored according to company-level reasonable complete and effective Natural gas explosive) hazardous Boiler fuel pressure relief facilities;
national waste management documents and standards and handed over to qualified third parties emergency response plan for chemicals no storage
for transfer and disposal. The Company performs whole-process risk identification and closed-loop hazardous chemicals and organized
risk management for the compliant disposal of wastes to make industrial solid wastes traceable and no less than one practical drill every
searchable and ensure the compliant disposal of waste hazardous chemical residues. year by the national requirements.Chemical safety management
60 61Social Responsibilities
Total training hours
of employees
R&D investments 440232.29
1.973 Hour The Company's RMB total external
billion donations
Average training
hours of employees 635.16
RMB '0000
41.3
Hour Hours of
participation in
volunteer activities
per employee
Percentage of suppliers 27.3
signing the Code of Hour
Conduct for Suppliers
100%
SDGs：2023
Environmental Social and Governance Report Social Responsibilities
Technological innovation
Four Major Sectors and Product Applications
The Company has continuously developed the world's leading technology R&D platform created an R&D system
known as "13551" improved its independent R&D capabilities and developed clean renewable new products to lead Sectors Products Downstream application fields
the industry's technological upgrading in an attempt to become a global leading enterprise of new chemical materials Automobiles household appliances
achieve high-quality development and make technological innovations to serve the country through industry. Modified Modified plastics and environmentally friendly electronics and electricians new
plastics high-performance recycled plastics
energies consumer electronics etc."13551" R&D System
Green Light hydrocarbon and hydrogen energies Modified plastics household appliances
petrification polypropylene resin styrene resin automobiles toys daily chemicals etc.
1 Packages agricultural films tableware central research institute 3 international R&D centers 5 technical sub-centers Fully biodegradable plastics 3D printing etc.
LED electronic devices electric appliances
5 1 Special engineering plastics consumer electronics new energies etc.incubation bases for new chemical materials national industrial innovation center Advanced Automobiles unmanned aerial vehicles
Carbon fiber and composites
materials new energies containers etc.Core R&D Resources Film bags automobiles household appliances electronic devices electrical
Bio-based monomers and resin
Upholding "making independent innovations taking the lead in technologies and creating excellent products" appliances new energies consumer
the Company has been accumulating technologies and studying products. Progressively we have built an R&D electronics etc.platform driven by technology industry and product research. We have made constant efforts in four major Professional medical treatment industrial Medical Personal protective equipment (PPE) non-woven
sectors namely modified plastics advanced materials green petrifaction and medical health where we have protection air and liquid filtration health materials IVD consumables
integrated our strategic concept for low-carbon cleaning technologies R&D and scientific innovation outcomes. laboratory testing etc.Liaoning Kingfa
Kingfa (Europe) Liaoning ABS Innovation R&D
Electronic and electric Kingfa (USA) Engineering Center
evaluation platform UL cooperation platform
Wuhan Kingfa Tianjin Kingfa
Agricultural Materials R&D and Application Optical Materials Industry R&D and
Evaluation Center Application Evaluation Center
Shanghai Kingfa
Ningbo Kingfa Automobile Material R&D and
KINGFA Europe KINGFA USA Ningbo High-performance Polyolefin Application Evaluation Center
Engineering Center
Head Office
Polymer Synthesis Institute Phase
II Laboratory and Pilot Scale Kingfa
Medical - Academician Wang Yingjun
Joint Laboratory Application
Evaluation Center for Electronics and
KINGFA (India) KINGFA (Malaysia) Electrical Industries
Chengdu Kingfa
Zhuhai Base
Special Industry Material R&D and Zhuhai Advanced Materials
Application Evaluation Center Engineering Center
KINGFA India KINGFA Malaysia
64652023
Environmental Social and Governance Report Social Responsibilities
As of the end of the reporting period
the Company had had
1 Foreign academician 146 senior engineers 168 doctors 1136 masters
We won
3 National science and 17 China Patent 15 First Prizes for Provincial and
technology progress awards Excellence Awards Ministerial Science and Technology
Progress
R&D investments from 2021 to 2023
Educational structure of R&D personnel
(unit: RMB 100 million)
31.0%
19.7
3
63.4%
5.6% Project Development Management
4 The Company has always been guided by market demand and striven to make breakthroughs in key common
14.5 technologies with the focus on the "breakthroughs in key industries" industry needs and applications. We assure our
55 product quality in the whole process from R&D to production and delivery through our production technology and 14. quality platforms. The Company has prepared relevant project management system documents standardized the
implementation of R&D project management measures and clarified the process requirements for each project phase.Project Management Procedure
Management of project Project process monitoring Project acceptance
Bachelor's Degree and below needs and initiation and management and incentives
PhDs Annually collect project needs and Regularly perform supervision and Complete acceptance inspection of
Postgraduates organize review meetings for project performance appraisal of projects a project upon completion within
approval; include the approved during their implementation to one month after the completion
projects in the annual project guarantee punctual delivery of the and organize an acceptance review
management list. projects. meeting. The expert judges will
Note: R&D personnel are defined as product development and technical research engineers within the scope of the conduct the review and score. Finally
technology centers the project rewards will be determined
and issued according to related rules.
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Environmental Social and Governance Report Social Responsibilities
Key technological R&D projects during the reporting period
Modified plastics Advanced materials
Modified plastics Special engineering plastics
* We have developed a new type of highly transparent sprayable potential for development in the industry of clean energies. * We have broken through several key technologies for and cooling fans which have become our new growth points in
polypropylene material which has been successfully applied in * Having performed continuous R&D of key fields including industrializing Polyaryl ether sulfone and met the project the electronic and electrical applications.automotive light-permeable bumpers. This is the world's first material failure mechanisms during their service life accelerated expectations for equipment with a production capacity of ten * Breakthroughs have also been made in the superb electrical
instance of the application in mass production for "integrated life evaluation and regulation we have obtained several UL yellow million tons. properties and aging resistance of the latest high-temperature
luminous front face" leading the new trend of the industry. cards and RTI certification. * We have constantly optimized the applications of our products nylon which has been successfully applied in the field of new
* We have created a multi-dimensional product matrix which is * Focusing on studying complex interfacial properties we have such as highly electrically safe halogen-free flame-retardant energy vehicles.suitable for multiple molding methods such as blister molding made breakthroughs in regulating surface hydrophobicity of the semi-aromatic polyamide high-strength coolant resistant * We increase our resource inputs in the underlying research on
blow molding and injection molding. Multiple functions have PC/PET alloy system materials filled with mineral powder light semi-aromatic polyamide highly heat-resistant LCP and low costs and flame retardancy constantly break through the
been realized including good appearance lightweight thin- high-performance nylon with low warp and styrene materials. We extrusion grade special polyamide in the core components of bottlenecks in flame retardancy and enhance our competitiveness
walled flame retardancy and ablation resistance. We have have enhanced our capacity for material applications in the fields new energy vehicles including batteries motors electronic in thermoplastic composites in the industry of new energy
continuously launched iteratively upgraded solutions to of automobiles electric tools PV energy storage electronics control units thermal management systems and charging piles. vehicles.battery pack covers which have been highly recognized by our electrical appliances etc. Breakthroughs have been made in our leading customers of * We have developed a type of strips with high appearance
customers and put into use in the market. * We have developed several types of creative aesthetic materials that industry. consistency that contains 80% glass fiber to enhance our capacity
* Through stable comparative tracking of flame-retardant and optical functional materials thus diversifying the product * The series of conductive LCP developed by us has been for market development and technical application in respect of
engineering plastics we have developed electrical insulation appearances. unprecedentedly applied by several domestic and foreign thermoplastic composites.and thin-walled flame retardancy of the products with great mainstream customers' high-speed high-frequency connectors * A type of thermoplastic prepreg strips and composite sheets with
Environment-friendly high-performance which have filled up the blank in China. We have optimized and high appearance quality and thickness uniformity has been
recycled plastics upgraded the flame-retardant semi-aromatic polyamide and successfully applied in the industries of new energies and cold
highly heat-resistant LCP having made breakthroughs in their
* Having made breakthroughs in pollutant identification transfer * We have organized the formulation of relevant standards chains etc.applications in low-voltage electric appliances relays motors
of trace substances and rapid assessment of trace elements for recycled plastics and launched a variety of high-grade
we have established a complete system for recycling tracing environmentally friendly high-performance recycled plastics
risk assessment and control of waste plastics which has been which have been widely used in plastic packaging household
awarded several international third-party certifications and appliances automobiles consumer electronics and other Green petrification
domestic and foreign patents. markets. * We have developed a one-step method for direct production of modified ABS functional ABS products and products with high
content of SAN along with high impact resistance flow luster and weather resistance which are recognized in the market.Advanced materials * The pilot COC equipment independently developed by us manufactures COC products and we have constantly improved the
product properties by continuously optimizing their production process.Fully biodegradable plastics * We have independently developed a hydrogen filling process to facilitate the industrialization of hydrogen purification and sell
* We have constructed a technology R&D platform for synthetic for Biodegradable Mulch Film and Products" (2021YFD1700703) high-purity hydrogen.biology developed engineering strains built core technical successfully passed the milestone assessment. The products
capabilities and expanded the "new tracks" for biological converted from this program received positive market feedback
monomers and bio-based materials. The bio-based 1 which facilitated China's demonstration and promotion of Medical health
4-butanediol (BDO) developed by us has passed the bio-based biodegradable mulch films for scientific application.
certifications of international authoritative organizations such * We have developed special polyesters with superb flow properties * Domestic products with technological "bottlenecks" including NC films and fabrics made via flash distillation have
as USDA (USA) and DIN CERTCO (Germany). We have launched quickly molded materials for modification and other new been put into pilot production and laid a solid foundation for subsequent mass production.ECOPOND KB100 NC806/A300 NC806/A200 NC806 series products. Significantly improving the processing and mechanical * The integrated biodegradable personal protective equipment in-situ anti-bacterial melt-blown products highly
biodegradable polyesters and their modified products with bio- properties of the materials and shortening their molding cycle we biodegradable nitrile gloves second-generation ultra-soft gloves accelerator-free gloves and other high-tech products
based content of 35% ~ 100% reducing carbon emissions of have successfully broken through the traditional scenarios. The have been launched in the market and highly recognized by the customers.end products and deploying a low-carbon industrial chain for products have been applied in medicine toys and other fields with * We have developed new products such as ultra-low temperature-resistant cryogenic storage tubes highly hydrophilic
monomer-polymerization-modification. high added value. filtration materials and highly chemical-resistant nitrile gloves to satisfy the high-end market needs.* Particularly we have overcome industry difficulties such as * We have developed PLA-specific modified materials for high-
difficult molding and processing of biodegradable mulch speed 3D printing. The molding efficiency of these materials has
films poor moisture retaining performance and short weather been significantly increased realizing energy conservation carbon
resistance time strengthening the adaptability to planting areas and emission reduction. The printing speed is 10-fold higher than
and crop growth characteristics and completing the iterative the conventional printing speed and takes the lead in the world.upgrading of three special materials of biodegradable mulch * We have developed the world's first 100% bio-based PBS
films. The key national R&D program of the 14th Five-Year Plan materials for contact with food and passed DIN CERTCO's
titled "Preparation and Industrialization of Special Materials biobased certification.
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Product quality and safety The Company uses online automatic detection equipment in the production process. The equipment has been independently developed by the Company which has independent intellectual property rights in the equipment.The equipment is the industry's first quality detection tool. Based on AI identification IOT intelligent hardware
Upholding "maintaining survival based on standards becoming powerful in reliance upon the quality and taking design and modification of intelligent monitoring equipment the equipment fulfills four core detection
the customers first" the Company standardizes the closed-loop PDCA management by guaranteeing "availability indicators. The detection cycle is about 5 minutes and the stability of the production process is monitored in real-
usefulness quality and superiority of the standards". We promote lean quality management and stabilize our time to increase the utilization rate of the production line reduce the overall detection costs and perform the
product quality to build the brand of Kingfa with "Kingfa-specific quality" and satisfy and exceed customer detection procedures with the involvement of fewer personnel. Besides the equipment is subject to post-cluster
expectations. management. A distributed network architecture for automatic online monitoring is built through micro-services
and other methods to increase the reliability and responsiveness of the system.Quality Control over Processes Automatic online detection system
The Company has established quality control systems such as Quality Manual and Incoming Inspection The eight functional modules realize automatic sample preparation as well as automatic testing of
Procedures and formulated quality control measures for the whole process of products to ensure that the quality density color heterochromatic points spiral flow length (fluidity) and implicit qualitative monitoring.meets the prescribed standards in all links stabilize the shipment quality and ensure product safety.During The system gives timely warnings and automatically pushes anomaly information.the reporting period the Company and its 17 subsidiaries or production bases passed the ISO 9001 Quality
Management System Certification. The Company and some of its subsidiaries or production bases passed IATF Automatic Automatic washing Automatic Automatic Online testing
online machine for mold change 16949 GMP ISO 13485 5GONOGO and other quality system certifications. system of four reclamation production transfer system control indicators
Truly make it unattended
Planning risks and Quality support Operations for
opportunities resources quality control Product Recall
Analyze risks and draw The operational environment Keep customer information
up preventive measures and the measurement system confidential; specify product The Company prevents and averts recall risks ahead of risk analysis. We standardize the after-sales product
quality standards and are up to standards. The human and service requirements; disposal process specify the recall process and the responsible department in the Quality Control Specifications
plans for their realization resources meet the capability review design and development for Product Shipment and incorporate on-site product return and recall data into our performance indicators
requirements. The document outputs related to customer satisfaction to protect the rights and interests of customers responsibly. Since its
systems are standardized. establishment the Company has not experienced any recall.Provisioning of External operations
production services management
Standardize operations and Str ict ly select and manage Planning and Warehousing
make labels traceable; audit suppliers; develop a supplier Operations Department Department Quality Department
products and provide customer quality management system and
s e r v i c e s ; d i s p o s e o f t h e perform second party audits According to the product Make transportation Control quality in the
nonconforming products in the recall orders of the Quality arrangement for the whole production
reported channels Department recall the recalled products and process and analyze the
non-conforming products implement corresponding causes of nonconforming
from the market and carry measures according to products. Supervise
out subsequent work. market requirements. the implementation
of corresponding
Quality Control Procedure measures and follow-up
improvement measures.Product Recall Procedures
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Management of Hazardous Substances The Company enters into environmental protection agreements with suppliers clarifies the list of different environmentally controlled substances to the suppliers and requires the suppliers not to use these substances. In addition the Company
separately reviews the prohibited substances in assessing the new and qualified suppliers. In case they fail in the review of
The Company consistently guarantees product safety strictly controls the use of hazardous substances in products and establishes a safety prohibited substances the suppliers will be required to complete rectification and undergo further assessment within one
assessment mechanism for hazardous substances to ensure that the production process complies with regulatory requirements and delivers month. If the suppliers remain unqualified in the further assessment new suppliers will not be introduced and original
products and services up to high standards. During the reporting period the Company and its two subsidiaries obtained the QC 080000 suppliers will directly become disqualified.Hazardous Substance Process Management System Certification.The National Industrial Innovation Center has built a characteristic green laboratory and formulated control procedures for
The Company has formulated the Technical Standards for the Control of Hazardous Substances to specify the substances prohibited from laboratory tests to ensure the effectiveness of test and analysis results reduce test and analysis errors and guarantee the
being used in raw materials prevent the hazardous substances from being mixed into the Company's products ensure compliance with laws desirable accuracy and credibility of the test data.and regulations protect the environment of the earth and mitigate the impacts on the ecosystem. We have continuously updated our control
list of hazardous substances in raw materials conducted a thorough investigation of the risks of hazardous substances in the supply chain
identified a total of 17 risks and drafted a control plan for the reduction of hazardous substances to achieve product safety compliance and Green laboratory of the National Industrial Innovation Center
reduce the use of hazardous substances and substances of very high concern. Ningbo Kingfa has replaced the two hypertoxic reagents required
for the assays during the laboratory analysis thus reducing the on-site safety risks. If the hazardous chemicals involved in each operation stage
are replaced by those with intrinsic safety all the chemicals have been optimized.Disposal of Hazardous Substances by Level Environmental safety Environmental reliability Green sustainable
assessment laboratory laboratory development laboratory
Immediately ban corresponding target substances and their uses in the products. Such Build a quality control platform Complete thermo-oxidative aging Provide the enterprises of the
substances are banned from addition to any articles and the content in each product for the entire industry chain photoaging and damp heat aging polymer industry chain with "one-
component must meet these control requirements or special customer requirements. so that the polymer industry of different polymers under specific stop" solutions to application
However the approved recognized projects may be exempted from these requirements. chain may control and evaluate experimental environments and technologies of recycled plastics
e n v i r o n m e n t a l l y h a r m f u l test the changes in their properties carbon footprint calculation
Deemed harmful to human body and The substances are considered to be harmful substances from the source t o e v a l u a t e t h e l o n g -t e r m performance evaluation and life
environment they are banned from to the human body and environment but ensure that the content of harmful application safety and applicability evaluation solutions including
use after the specified date. If the at present the prohibited period of use is substances in products meets of the materials. With a mature supply of green and low-carbon
suppliers utilize such substances in Level I not specified and the suppliers need to pay international standards and aging laboratory environment it is products identification of recycled
the production process it is necessary attention to the use of such substances. Level regulatory requirements and capable of tracking and monitoring plastics corporate carbon inventory
to consider and draw up plans for III controlled substances will automatically be makes sure of supplying safer and the aging performance. product carbon footprint accounting
reducing and gradually replacing converted into Level II with the promulgation more compliant products and other product lifecycle services.these substances. of relevant new regulations.Level II Level III
Development of Quality Cultures
We attach great importance to the overall quality building of our teams and conduct internal quality-related training to
satisfy our needs for high-quality development and global quality talents. Externally we publicize our quality cultures. As a
Control List of the Company's Common Hazardous Substances representative outstanding enterprise the Company shares quality management experience tells corporate brand stories
spreads excellent quality culture creates the brand "Kingfa" explores new paths and new drivers for Kingfa's technical quality
Control level List of substances Control method innovation and brand building and supports its development strategies with one hundred billion.
12-Bis (246-tribromophenoxy) ethane 44-Sulfonyldiphenol barium borate During the reporting period to meet the needs of the company's high-quality development and global quality talents the
3456-tetrabromobenzene-12-dicarboxylate (including any separate isomers and/or their Company further improved the training plan for quality talents and established corresponding training project systems for
combinations 2-methylpropylester 4-hydroxybenzoate perfluoroheptanoic acid and its campus recruitment onboarding novice and other core stages. We continuously pay attention to our employee growth build
salts reactants of 22335566- octafluoride-4 (1112333- isobutyl 4-hydroxybenzoate a team that is "able to fight and win" and improve the professional quality skills of the team.Level I -2-yl) morpholine and 223355566-octafluoroalkyl -4-(heptafluoropropyl) morpholine Prohibited
diphenyl (246-trimethylbenzoyl) phosphine oxide 44-dichlorodiphenyl sulfone
246-TTBP 2-[2-hydroxy -5-(1133-tetramethylbutyl) phenol ] benzotriazole (UV-329)
2-(dimethylamino)-2-[(4-methylphenyl) methyl]-1-(4-morpholin-4-ylphenyl) butan-1-one
methoxychlor Dechlorane Plus and mineral oil
Level II Isopropylphenyl phosphate and PFAS etc. Alternative Induction Training Pre-job training Cultivation of Cultivation of core quality stars quality talents
Tetrabromobisphenol A Melamine 2-(5-chloro-2H-benzotriazole-2-yl)-6-(11- Topic research Learning about what Spark plan Golden Shield Program
Level III :Dimethylethyl)-4-methylbenzenel and oligomerisation and alkylation reactants of Restricted should be known
isopropenyl benzene and phenol
Internal quality training system
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Customer services
Case Golden Shield Program
Focusing on customer services we maintain in-depth cooperation with our customers in an attempt to build a
Regarding the cultivation of core quality talents the Company launched the Golden Shield Program first-class marketing platform. Through the world's leading technical R&D platforms and reasonably distributed
(Phase 1) during the reporting period selected core 54 quality backbones from its bases and organized a global marketing networks we provide our customers of different industries with overall cost-effective
total of 5 training sessions 14 courses 9 practice tasks and 4 special surveys within one year. The Golden customized material solutions.Shield Program was smoothly completed and we accumulated valuable experience for the subsequent
training of high-end quality talents. Production model Sales model
"Production based on sales" is our major The sales model is mainly oriented by market
production model. Specifically the customers trends and customer needs. While selling
put forward order requirements such as product products the Company also needs to provide
performance and functional requirements. comprehensive technical support services for
The Company organizes product production downstream customers. This business feature
inspection and delivery according to market contributes to the Company's selection of
conditions inventories of raw materials and direct selling as its major sales model.products and equipment status.Customer service model
Golden Shield Program
Improvement of the Customer System
Adhering to the marketing concept that "orders are commands and contracts prevail" the Company creates a global
collaborative marketing network around customer needs develops a customer service system integrating regions
Case Remarkable quality action results release in Guangzhou customers and industries and empowers regional operations through industry development and key customer traction.In September 2023 the Company participated in the "Kickoff Ceremony of 2023 Guangzhou Remarkable Quality
Action Results Release and Quality Month" with the theme of "Guangzhou Brands of Wonderful Quality" held by the
Guangzhou Municipal Quality Improvement Work Leading Group Office. On the event site the typical cases in chief
quality officers' corporate quality reform and innovation were released. The Company was included in the list of such
typical cases of Guangdong Province in 2023. Evaluated as Top 30 with an outstanding short video on the "Guangzhou
Brand Stories" the Company received the award as one of 10 award-winning representative companies. Create a global collaborative Appoint key account Appoint major industry leaders
service network in China managers to perform delicacy to coordinate the formulation of
One representative attended the event upon invitation and made a speech: "Excellent quality is inevitable for
(five bases in East South management. Conduct in-an enterprise. In operations management we've found that there are contradictions and conflicts between industry development strategies
the customized needs of our customers and our large-scale production mode. Through innovative quality and West North and Central depth research on customer and tactics intensively embark
standardized management the needs and the production mode have been organically integrated. We have built and China) India the United requirements based on on subdivided fields and focus
implemented a "rigid and flexible" quality management model to create a wonderful life." States Europe and customer needs and provide on industry needs. Cooperate
Malaysia. Adhere to the customers with overall with technical industry experts
service concept of rapid solutions. to study the development
response and respond to orientations and needs of the
customer needs promptly. industries based on industry
Customers needs. Provide overall solutions
for the industries.Regions Industries
"Guangzhou Brand" The Company's Selection as a Typical Case Brand Story of KINFA Evaluated as One
Award Ceremony of Chief Quality Officers' Quality Reform of Top 30 Excellent Short Videos on
and Innovation in Guangdong Province in "Guangzhou Brand Stories" Three-in-one
2023 customer service
system
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Case Cooperative R&D of plastic alternatives for upper battery caps Honors in customer cooperation
The Company cooperated with CATL to develop the world's first ablation- Dongfeng Nissan - the 20th- MAHLE China - Technical
resistant injection molded upper caps for power battery packs replacing anniversary Partner Award Cooperation Award for a
steel with plastics. The two companies cooperate based on projects. They Supplier
conducted several studies on patent layout and long-term performance
achieving weight reduction by over 50% high-efficiency production
and cost reduction. Our marketing team has conducted many exchanges
with our customers on ablation-resistant materials and guided the core Inteva China - 2023
personnel of our customers to jointly develop products with us. These Excellent Service Award
products have been successfully put into mass production. We have
provided brand new advanced solutions to continuous weight reduction
energy saving efficiency improvement and improvement of energy "Foresight - Equipment
density for the power battery pack boxes. In 2023 this project won the Process and General
"Foresight - Equipment Process and General Gold Medal" of the Eighth Gold Medal" of the Eighth
Lingxuan Award for the Chinese Automobile Industry. Lingxuan Award 2023
Interactions and Exchanges with Customers
The Company has formulated customer service systems such as Customer Complaint Management Regulations to provide
customers with prompt services before during and after sales quickly standardize the process for handling customer
complaints respond to customer demands promptly and improve customer satisfaction with its products and services.Case Strategic cooperation and exchange
Transparent Responsive Free
Information on how and where to Inform the complainant in a timely Make the complaint handling
In 2023 the Company conducted strategic cooperation and exchanges with customers created a green file a complaint shall be disclosed manner after receiving a complaint process open to the complainants
and low-carbon supply chain and expanded the cooperation between the two parties on a global scale. to the customers employees and and deal with it dependent upon free of charge
other interested parties. the degree of urgency. Treat the
complainant politely and inform
the complainant of the complaint
handling progress.Focus on customers Convenient Confidential
Be committed to adopting a The complaint handling process When necessar y the personally
customer-focused approach is easy to operate. Detailed identif iable information of the
to make feedback (including information about complaints complainants shall not be disclosed
complaints) public and address and complaint handling can be without the consent of the customers or
complaints with actions. obtained and clearly expressed. the complainants. Take the initiative to
avoid disclosure of such information.Fair Responsibilities Continuous improvement
Treat all complaints equally fairly Ensure establishing accountability The complaint handling process
and impartially. and reporting systems for complaints and continuous improvement
handling and decisions. of product quality are eternal
organizational goals.Strategic cooperation and exchange
Guiding principles for handling customer complaints
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Emergent Urgent General Sustainable supply chain
Offer an emergency Offer an emergency Handle the complaint normally and offer an
response within 8 hours and response within 12 hours initial reply or suggestions within 1 workday.provide the investigation and provide the investigation Make the final suggestions on how to handle Supplier Management System
results within 2 workdays. results within 2 workdays. the complaint within 3 workdays. If the
In case of any anomaly In case of any anomaly customer puts forward special requirements The Company has established and improved the supplier lifecycle management system built a supplier
contact the superior or the contact the superior or the for time reply within the time limit specified management platform formulated differentiated supplier introduction rules and daily management models
complainant in time to give complainant in time to give by the customer. Promptly report the based on its management needs for different segments and varieties and performed visual management of
an explanation. an explanation. anomalies to the complainant in the process
of complaint handling if any. the businesses with the aid of the platform. We pay close attention to the construction of our suppliers' quality
systems and environmental and social responsibility systems mobilize resources to empower the suppliers
continuously optimize our supplier management improve the supply chain efficiency and flexibility and ensure
Graded responses to complaints
our smooth production.Customer feedback channel
Supplier
Qualification pre- Introduction
Tel:+86(020)-66818888 Address: 33 Kefeng Road Science City Official Account: Kingfa conferencesexamination management
Fax:+86(020)-66848888 Postal Code: 510663 Advanced Materials
Supplier resource pool Business exchanges
Risk warning
(credit finance Relationship Technical quality delivery)
Case Customer satisfaction statistics management exchanges
Trading suppliers Quality
exchanges
During the reporting period the Company statistically analyzed the customer satisfaction among the key Contract guarantee Performance (technologies management
customers particularly customer satisfaction with delivery and invited the customers to score the actual quality supply social
performance of the Company's order delivery and services during the reporting period. The satisfaction responsibilities) Classification Qualified Platform
management suppliers interactionsquestionnaire survey was carried out twice a year. Each time analysis is performed for improvement and
closed-loop tracking based on the customer evaluation results. According to statistics customers were Supplier Management Platform
relatively satisfied with our services with an average score of 91.9 points in customer satisfaction with
delivery in the first half of the year. In the second half of the year the Company made targeted improvements Supplier Management System
to the customer satisfaction evaluation for the first half of the year. The average score in customer satisfaction
was 92.9 points in the second half of the year and customer satisfaction was further improved.Capacity building for Continuous improvement of Improvement of customers'
service personnel responsiveness to orders Delivery Experiences
Measures for Improving Customer Satisfaction
Responsible Marketing System
Our marketing activities comply with the Advertising Law of the People's Republic of China other relevant
laws and regulations as well as our internal audit system. We strictly control and review external marketing
information to prohibit their exaggeration or distortion. All our marketing and publicity-related materials must
be jointly approved by the Marketing Center the Securities Department and the Corporate Publicity Department
before they are officially made public to ensure that the publicity content is legal and compliant. We have also
formulated corresponding management requirements and labeling procedures for product identification to
standardize our identification. As of the end of the reporting period the Company had not received any litigation
or violation penalties related to product identification.
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Supplier management Case Digital supply chain transformation project
Onboarding management
Formulate supplier introduction rules to standardize the selection and management process of new suppliers. Establish We continuously promote the application of the SRM system and nearly 100% of suppliers have been connected to the system
differentiated supplier introduction standards based on the needs for category management to strictly control supply for management to strengthen the overall audit efficiency ensure that records are searchable and traceable promote the
risks evaluate upstream supply capabilities and accommodate the needs for resource reserve and optimization. systematization and standardization of our annual supplier audit and realize transparent procurement. In August 2023 our
digital end-to-end management transformation project not for raw materials was initiated. We established an end-to-end
The Procurement Department conducts a pre-qualification review for all potential suppliers. The raw material management system not specific to raw materials for the whole process (including budget demand planning order placement
suppliers shall at least pass ISO 9001 certification and attention is paid to the suppliers certified by ISO 14001 procurement inventory and accounting) and a mall management mechanism for continuous launching to realize transparent
ISO 45001 and other relevant systems. Conduct on-site audits when necessary. Comprehensively evaluate the procurement in e-commerce and digital driven management. These systems were formally launched in January 2024.suppliers' operation status production capacity and management to improve their overall qualification.Advance budget control Standardize material Planned requirements master data management
Audit management From to From to From to
Planned
Formulate the Supplier Audit Management Regulations and conduct routine audits for key suppliers according Post-hoc Beforehand No unified Unified Unplanned
to the audit plan. Evaluate whether the suppliers' management systems remain effective and are continuously analysis control rules standards of
coordination management
(Pre-job
improved. Audit problematic suppliers to evaluate the effectiveness of the suppliers' problem improvements to the Group material control)
eliminate the suppliers with supply risks promptly.Transparent and efficient Central spare parts
Performance management procurement inventory and allocation
Digitally driven
From to From to From to
Formulate the Supplier Performance Management Regulations and continuously pay attention to the Inefficient Mall-type Offline lending Online Driven by Digitally
suppliers' performance in delivery quality and services Output the overall performance results of the source seeking procurement and repayment allocation human driven
raw material suppliers every quarter and put them into practice. Provide the suppliers with corresponding Distributed goods Joint experiencepreparation of storage and business
incentives rewards and punishments for the suppliers with different performance levels (A-D). Improve the the bases reserve control
efficiency of the supply chain and realize the differentiated demonstration of supplier value.Supply Chain Digitalization Project
Classification management
In combination with supplier performance and category management strategies formulate supplier Environmental and Social Responsibility Management
classification rules output strategies as well as differentiated management measures for bottlenecks
collaboration and general suppliers. Establish targeted management measures for strategic and bottleneck The Company works closely with the suppliers to jointly remain committed sustainable development goals and create to
suppliers. Set integration goals for the general suppliers and promote continuous optimization of supplier sustainable value. Use the official platform of the SRM system to conduct training on sustainable development for the suppliers.resources. Achieve precise allocation and effective integration of resources. Perform sustainability risk assessments and supplier audits on their environmental and social responsibilities through written
materials to identify the suppliers' ESG performance and plan corresponding sustainable corrective actions to ensure that the
sustainability management of the supply chain is fully implemented.Risk Management
Closely track the political military economic climatic and other trends in different regions of the world.Identify risk factors and draw up risk plans in advance. Adjust procurement and inventory strategies Anti- Morality discrimination and Freedom of Safety
promptly including increasing raw material reserves locking raw material orders in advance and making integrity association
early preparations for raw material substitution. Eliminate potential adverse effects of risks. Child labor Working Management of Management
Establish an early warning mechanism for high-risk raw materials and keep informative about the supply and minor
hours and toxic flammable of occupational
salaries and explosive diseases
chain by continuously tracking the production status of upstream suppliers and signing four major Lodging Forced products Free choice of Environmental
agreements with the suppliers including supply agreements quality assurance agreements environmental sanitation labor employment Management
protection agreements and technical agreements.Collaboration management Dimensions of the Supplier Audit on Environmental and Social Responsibilities
Supplier conferences technical exchanges daily business exchanges quality exchanges and During the reporting period the Company conducted surveys on corporate carbon management of 88 suppliers. Among them
platform interactions etc. 86 suppliers replied 28 suppliers carried out carbon footprint verification within Scope 1 and Scope 2 and 16 suppliers verified
the carbon data of Scope 3 products. We plan to incorporate the relevant requirements of the non-quality system into the SRM
system in 2024 to publicize them to our suppliers and guide the suppliers to learn about these requirements.
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Supplier empowerment
Case Supplier support improvement project
The Company attaches great importance to improving the suppliers' capabilities and is committed to coordinated
development with suppliers. We maintain close communications and exchanges with our suppliers by holding
supplier conferences conducting supplier training and implementing supplier support projects to achieve In May 2023 the Company found that a certain batch of 150 powder contained iron filings. After spot
mutual benefits and win-win. checks considerable iron filings were also found in the remaining inventories of 150 powder. We actively
contacted the supplier to return the problematic inventories and asked the supplier to suspend its
Themes of supplier training supply for rectification. Besides the Company guided the supplier to analyze the causes according to
the 5M1E method - the most fundamental investigation method. We communicated with the supplier on
CSR Diverse site guided the supplier to focus on the key points and assisted the supplier in formulating short-term
management constructions and and long-term improvement measures to promote implementation. After the supplier's rectification we
requirements Sustainability promptly followed up on and evaluated the results. In August the supplier's normal supply was resumed.management
As at the end of the reporting period no similar quality anomaly occurred to the supplier.EHS
Waste
management
Case Annual supplier conference
In December 2023 the Company held a supplier conference around the theme of "Deepening Collaboration
Winning the Future with Quality". More than 400 supplier representatives from different parts of the world attended
the conference to jointly facilitate the sustainable development of the industry. At the meeting General Manager
Li Nanjing and other leaders presented awards to the suppliers winning the 2023 Gold Strategic Supplier Award
Excellent Supplier Award Best Growth Award Excellent Performance Award Technical Cooperation Award and
Collaborator Award. Besides General Manager Li Nanjing made a summary of the conference: "Suppliers are our
vital partners. The strengths of the suppliers and the closeness of supplier relationships largely determine our cost Communication with the Supplier on Site
competitiveness and risk resistance. We hope to deepen collaboration with our suppliers and friends jointly promote
business digitalization and achieve information exchange mutual promotion and vertical linkage in terms of
collaboration. We achieve co-construction sharing common growth and result sharing in terms of resources; flexible Contractor management
reliability cost control and risk sharing in terms of supply; offer each other trust and support and complement each
other's strengths in terms of development to jointly open a new chapter for high-quality development." Upholding that "one who is in charge shall be responsible" our Project Department or Procurement Department
reviews the safety qualification of the contractors investigates the legality adaptability reliability technical
qualification and safety assurance of the contractors and submits the results to the Office of the Work Safety
Leading Team's Office for filing. Before a contractor's entry the Company issues the Contractor's Internal
Operating Safety Instructions to the contractor and signs the Contractor's Safety Environmental Protection
and Occupational Health Management Agreement with the contractor to clarify the safety responsibility of
the contractor for its personnel and projects. To guarantee the project safety all personnel of the contractors
shall receive safety education and training before their entry and the Project Department dispatches safety
management personnel to supervise daily safety inspections on site. If the contractors violate the safety rules and
regulations inside the Company and cause accidents the accident investigation and handling shall be carried out
Annual Supplier Conference according to our accident investigation procedure.
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Facilitation of the Industry Development The Company took part in the International Exhibition on Plastics and Rubber Case Industries to jointly communicate about and display the green low-carbon
solutions and enter into cooperation contracts with international enterprises.As a leading enterprise within the industry the Company always firmly believes in the positive value of
In April 2023 "CHINAPLAS 2023 International Exhibition on Plastics and Rubber Industries" was held in
cooperation and sharing for the sustainable development of itself the industry and society during innovations.Shenzhen. The Company focuses on displaying diversified innovative technologies green and low-carbon
To facilitate the industry win-win we cooperate with our domestic and overseas associates and upstream and
solutions and one-stop services. At the exhibition site the Company also entered into a cooperation agreement
downstream enterprises to exchange and learn about new opportunities and achievements in the development
with Tuv Rheinland (Shanghai) Co. Ltd. on the spot reached an agreement on photovoltaic materials
of the industry. We actively undertake the responsibilities of industry associations promote the formulation of
components and testing services and was awarded the Commercial Material Certificate for photovoltaic
industry standards carry out in-depth exchanges and scientific research project cooperation with universities
materials by TüV Rheinland which verified that the products of the Company satisfied the legal and regulatory
and guide the future development trend of the industry with technological innovations.requirements for corresponding photovoltaic products in terms of performance and safety specifications.Joint industry advancement
To promote joint construction and win-win in the industry we actively participate in exchanges exhibitions and
other activities related to materials and sustainable development and realize the coordinated development
mutual benefit and win-win of the industry through intuitive and high-quality exchanges.Exhibition Area of the Company in CHINAPLAS Concluding a Cooperation Agreement with TüV Rheinland
Case The National Industrial Innovation Center attended the CMF Forum to share experience related to carbon neutrality of organizations and products.In January 2023 the Company attended the International The Company's Participation in the 2023 CEO In March 2023 the "Bio-based & Environment-friendly Materials and CMF
Forum for the Extended Producer Responsibilities of Chinese Roundtable on Circular Economy of the Chinese Plastics Forum" sponsored by the Organizing Committee of the International CMF
Manufacturers of Automotive Products and obtained the license Industry in May 2023 Design Conference and Shenzhen Industrial Design Association was held
granted by the branch chairman of CAPRO. in Shenzhen. Wu Bo the general manager of the Company's National
Industrial Innovation Center attended the forum and made a report
Case The Company sponsored an ESG forum and initiated a brand new mode of on the theme of "Corporate Green Environment-friendly Applications - thinking for sustainable development of the plastics value chain. Policy Guidance on Carbon Footprints" and shared the organizational Experience Sharing in the
carbon management product carbon footprints calculation methods for CMF Forum
In June 2023 the "2023 ESG Development Summit evaluating indicators of carbon neutralization results and practices.of the Plastic Value Chain" hosted by the Company
smoothly came to an end in Shanghai. Li Jianjun the The Company took part in the CMEF Exhibition to set an example in industry
Company's chief scientist released the Company's Case of safety and healthy green products.
2022 ESG report on the spot focusing on the
Company's strategies performance and investment
In May 2023 the opening ceremony of the 87th China International Medicinal
in green and low-carbon cycles. During the forum
Equipment Fairn (CMEF) was held. The Company displayed masks gloves
the elite representatives from different institutions
surgical gowns degradable products disinfection sterilization and other
and enterprises discussed the current situation and
health protection products at the exhibition and conducted in-depth
trends of ESG in the form of keynote speeches keynote
exchanges with the associates and customers which demonstrated the
reports and roundtable discussions and jointly
Company's remarkable technical strengths and emphasis on customer
explored the strategy and realization path for the
Roundtable Discussion of the Forum experience as well as the spirit of green environmental protection thus Display of Degradable
sustainable development of the plastic value chain.setting an example for the development of the industry. Products at the CMEF
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Standard Setting
Industry-academia-research cooperation
Guidance by high-quality standards is a key factor for innovation and sustainable development of an industry.Since its establishment the Company has actively formulated relevant national industry and group standards for Guided by the need for industrial development the
polymers modified plastics recycled plastics and bio-based materials etc. We have participated in formulating Company actively promoted deep integration of
190 standards to promote the sound development of the plastics industry. industry education and research. During the reporting
As the secretariat of the TC48WG4 of the National Plastic Products Standardization Committee the Company period the Company carried out scientific and
continued to deeply participate in the formulation of industry standards during the reporting period covering technological project cooperation with the Hong Kong
several international national and social organization standards all of which were released during the reporting University of Science and Technology (Guangzhou)
period. and performed some in-depth project research with
Huazhong University of Science and Technology
International ISO 61:2023 Plastics —Determination of apparent density of to promote the transfer and transformation of
standards moulding material that cannot be poured from a specified funnel scientific and technological achievements and
the development of the industry through industry-
GB/T 42922-2023 Plastics - Determination of organic solvent academia-research-application.extractables
The Company's National Invited for an Interview in the Cooperation Project with
Participation standards GB/T 43297-2023 Plastics - Methodology for assessing polymer Huazhong University of Science and Technology
in Formulating
Standards during photoageing - FTIR and UV/visible spectroscopy
the Reporting
Period T/GDPIA 60-2023 Bamboo powder based fully biodegradable film
special material Case The Company cooperated with the Hong Kong University of Science and Technology to promote new technologies in the market.T/GDPIA 61-2023 Bamboo powder based fully biodegradable
Group straw special material
standard The Company carried out scientific and technological project cooperation with the Hong Kong University T/GDPIA 62-2023 Bamboo powder based fully biodegradable of Science and Technology (Guangzhou) to make the technologies market-oriented and carried
plastic special material out cooperation on ultra-thin super-strong diaphragms seawater desalination and photocatalytic
T/GDPIA 63-2023 Bamboo powder based fully biodegradable degradation reagent.injection molding special material
Case The Company and Automotive Data of China Co. Ltd. organized a standard seminar to standardize the use of recycled plastics for vehicles.In March 2023 the Company organized a seminar on the Specification for Use of Recycled Plastics for
Vehicles in Shanghai together with Automotive Data of China Co. Ltd. China Society of Automotive
Engineers and China National Resources Recycling Association. More than 60 expert representatives from
over 30 domestic and foreign- related upstream and downstream enterprises of the automobile industry
chain attended the meeting. The Company shared practical
experience on the key technologies of recycled plastics
and the practical application of automotive products
and had a heated discussion with the experts present
on key issues such as the terminology and definitions of
technical standards certification methods supply chain
management and technical parameters. Many valuable
opinions and suggestions were provided by the Company in
combination with the situation of itself and the industry. Cooperation with the Hong Kong University of Science and Technology
Site of the Standard Seminar
86872023
Environmental Social and Governance Report Social Responsibilities
Equality Inclusion and Diversity Labor Protection for Female Employees
As of the end of the
The Company actively develops and adheres to diverse and inclusive cultural concepts reporting period
pays special attention to the protection and improvement of the female employees'
Being "people-oriented" the Company attaches great importance to the rights and interests of all employees rights and interests and emphasizes equality between men and women and equal pay
actively advocates and builds a diverse and inclusive corporate culture provides all-round support for all-round the female employees for equal work. For this purpose we have specially formulated the Regulations on Labor
development of the employees and empowers the employees. Protection and Management of Female Employees. These regulations aim to ensure that accounted for
the female employees' rights and interests are fully protected at work and prevent any
During the reporting period the Company strengthened the human resource management and accurately form of infringement and discrimination. The Company has built a committee for female
controlled the human resources staffing in order to steadily improve the efficiency per capita. In addition the 14.6 % of employees to protect the legitimate rights and special interests of the female employees
Company closely follows up on the business strategies and constantly explores the recruitment and training in accordance with the law including loving cabins for mothers and green channels for the Company's middle
mechanisms of international talents which further promotes its development. pregnant women to dine. We consistently uphold equality and impartiality to create a safe management and
healthy and equal work environment for female employees.During the reporting period 10.4 % of the top
management.the Company had a total of 174
10629 disabled employees were employees
The social security cumulatively recruited Loving Cabin for Mothers Green Channel for the
Pregnant Women to Dine
covered all employees
The labor contracts
were concluded 186 Recruit Health preservation Protection
with all employees female of female
All employees retired soldiers were employees
of the female
employees employees
returned to work after cumulatively employed
their parental leave
Recruit the female employees Gradually improve the sanitary Purchase maternity insurance
according to labor protection conditions for the female for all female employees in
policies and requirements; employees and regularly accordance with relevant
The female employees are entitled organize professional institutions national regulations;
to the equal pay for equal work as to assist with the female Provide female employees with
the male employees in their posts; employees' health preservation; pregnancy leave and monthly
Maintain equality between the Install water heaters and showers living expenses during their
men and women in terms of job in the dormitories for female pregnancy leave;
promotion promotion evaluation employees; In the event of childbirth
of professional titles positions and Organize regular physical (or miscarriage) the female
training and never discriminate examinations and gynecological employees are entitled to the
against the female employees. examinations for all female maternity insurance benefits
Never restrict the female employees to ensure their health. from a social insurance agency
employees to participate in the according to relevant regulations;
aforementioned activities because After maternity leave provide
of their pregnancy childbirth or the female employees with
breast-feeding. breastfeeding leave until their
children reach by six months and
monthly living expenses.Labor Protection Measures for the Female Employees
88892023
Environmental Social and Governance Report Social Responsibilities
Anti-discrimination
The Company upholds equality and inclusion and resolutely opposes any form of discrimination. We are 01 02
committed to building a diversified and harmonious workplace environment to ensure that all employees are Event reporting Response Measure
respected and accepted. We strictly abide by laws and regulations. We have formulated the Anti-Discrimination
and Anti-Harassment Management Regulations which are not affected by factors such as gender age race Any personnel or department Don't dismiss the child labor
ethnicity or region. We supervise all our departments prevent and prohibit discrimination or harassment and head of the Company shal l immediately to prevent them
resolutely eradicate discrimination. immediately report to the HR from being put in a more difficult
The Company continuously carries out publicity and education activities to prevent and stop workplace Department. dilemma;
harassment. We post rules and regulations in conspicuous places such as corporate and office bulletin boards. To Ta ke a p p ro p r i ate re m e d i a l
deal with discrimination and harassment in time the Company provides the employees with internal complaint measures and report to a local
channels to create a fair and fair working environment. In the event of discrimination the Company promptly l a b o r b u rea u i m m e d i ate l y.communicates with the injured employees promptly to appease them and holds those who have discriminated Meanwhi le arrange health
against the employees accountable for punishment. If an employee is diagnosed examinations.with disease treatment shall be
arranged until recovery and all
Complain about related situation through the suggestion box internal medical expenses shall be borne
mailbox or OA system of the Company or by directly contacting related by the Company. After soliciting Mobilize the families of child
persons in charge by phone. the opinions from the child laborer laborers to arrange further study
send someone to escort him back for the laborers before they are
to his original place of residence allowed to participate in social
and ask his parents or other work and provide financial
guardians to sign for receipt. All assistance for them. All records on
expenses incurred by such escort the child laborers shall be kept by
Once a complaint is found The management of the
shall be borne by the Company. the HR Department for inquiry.true after investigation the Company will appoint
person against whom the s p e c i a l p e r s o n n e l to Compensation for child labor Subsequent follow-up
complaint is filed will be investigate the complaint
punished. in detail and reply to the 03 Remedial Procedures for Inadvertent Child Labor 04
complainant within 15 days.Prohibition of Forced Labor
Anti-discrimination and Complaint Handling Procedures The Company upholds impartiality and equality during its recruitment. We prohibit attracting people by
any forced or deceptive means and resolutely eliminate any form of forced labor. We have formulated the
Management Regulations on the Prohibition of Forced Labor. During the term of their contracts the employees
Management of Child Labor and Minor Workers are entitled to rest take holidays and terminate their employment in accordance with the law. The Company shall
not illegally restrict the such rights of the employees. We are committed to promoting the concept of protection
Adhering to the spirit of the International Labor Organization's conventions the Company is committed to of human rights and anti-forced labor to our suppliers contractors and partners in order to jointly create a
continuously improving the internal management system to ensure its compliance and ethical management. We harmonious and fair business environment.have formulated internal management systems such as the Regulations on the Management of Child Labor and
Minor Workers which clearly stipulate the guidelines for prohibiting forced labor and child labor. The Company If we discover forced labor our HR Department and Trade Union will communicate with and comfort the
resolutely puts an end to any violations of human rights such as child labor and minor workers. During their employees in a timely manner and take corresponding measures to remedy the situation. During the new
recruitment the Company's recruit personnel strictly check the job applicants' identity documents to identify employee orientation training all our new employees are trained and publicized. Our employees are informed
their true age and the authenticity of their identity documents. The Company promises not to accept any supplier that if the above problems occur they shall complain to the Company through our suggestion box mailbox
or partner who employs child labor or minor workers. reporting hotlines or OA system etc.
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Environmental Social and Governance Report Social Responsibilities
Employee rights Democratic Communication
As a core element of efficient team operation communication has irreplaceable value for As of the end of the
The Company is committed to safeguarding the legitimate rights and interests of the employees building a diverse and maintaining team stability and improving overall performance. Consistently upholding reporting period
inclusive corporate atmosphere and effectively implementing various welfare and care measures to increase all employees' "following the procedures revering the superior respecting the subordinate and being
sense of happiness and belonging and ensure that the employees may feel warmth and respect in the Company. sincere and proactive" the Company is committed to constructing a comprehensive and The Company had cumulatively
efficient communication system. By creating diversified communication channels we collected more than one
can not only keep abreast of our employees' needs and feedback but also effectively thousand reasonable
As of the end of the reporting period stimulate our employees' enthusiasm for participating in our decision-making and cultural suggestions from the
construction thereby promoting the continuous development of our team.employees. The rate of response
a total of 3568 people participated in the evaluation of professional and technical to the employee suggestions isGrassroots shift meetings weekly
153 semi-annual and annual meetingsqualifications. Among them professional engineers were rated as intermediate engineers 100 %. These
6 suggestions are helpful for us Commun- Questionnaireand of them were evaluated as senior engineers (experts). All of whom were entitled to the ication to optimize our management
Company's housing benefits encouraging employees to continue to develop their own expertise. While channels strategies and improve our
making substantial progress in their professional expertise they were also recognized by the Company. Online forum performance.Diverse Communication Channels
To further strengthen the democratic communication channels the trade union of the Company has built a management platform
for managing the employees' appeals efficiently responded to the reasonable needs and opinions put forward by the employees
for their interests and the development of the Company improved the employee satisfaction through employee support and
concern and jointly established harmonious labor relations. The Company organizes the meetings for the trade union's member
representatives and the employee representatives. We enter into the Collective Contract with the employee representatives
to improve the mechanism for employees to offer advice and suggestions to the Company and to protect their rights to know
participate express and supervise.Case The employee engagement survey suggested that the overall engagement was comparable to that of the previous year
Honors of the employer brands
During the reporting period the Company's employee engagement survey suggested that a total of 4135 questionnaires
were valid covering multiple business segments and employee categories. The results showed that the overall engagement
was similar to that of the previous year. The employees highly recognized their personal engagement leadership
effectiveness and cultural vision. They regarded the work environment and resources as common factors they were more
satisfied with. In addition after investigation it was found that there were some common dimensions of dissatisfaction in
each business segment of the Company including work-life balance and career development. For instance the Company
pays close attention and proposes improvement measures. For example we have established a comprehensive dual-
channel mechanism for career development to provide our employees with a definite promotion path.Dimensions of engagement Score
The Most Attractive Employer China Preferred Employer of The Most Preferred Employer Leadership effectiveness 5.28
of the Workplace in 2023 the Year 2023 of the Year 2023 Personal engagement 5.19
Awarded by: China Business Awarded by: Zhilian Zhaopin Awarded by: Interns Cultural vision 5.17
Journal & Career International Excerpt of Overall Scoring Result on Employee Engagement (Full Score: 6)
92932023
Environmental Social and Governance Report Social Responsibilities
Employee Compensation Case Equity Incentive Planc
The Company adopts a salary structure that integrates the base salary with variable pay to establish a salary incentive
system for the employees that not only reflects internal fairness but also demonstrates external competitiveness. The The Company has implemented the employee stock ownership plan since 2016 drawn up the 2022
compensation consists of base salary performance bonus rewards and various allowances which are regularly accounted Restricted Stock Incentive Plan (Draft) in 2022 and continued to promote the incentive plan during
by the HR Department of the Company. The employees may inquire about and calculate the salary paid through the online the reporting period. In June 2023 we granted 692 employees some reserved restricted stocks and
platform. We encrypt and manage the sensitive information which shall not be disclosed. intended to reward our core technical marketing and management personnel with our net profit and
operating income as in our annual performance appraisal. The establishment and implementation of
The Company proposes and continues to practice the unique "cake theory". It is better to ask for a small piece of a big cake the personalized incentive mechanism and a series of supporting measures have attracted numerous
instead of the entire one. This theory has evolved into the core idea and excellent tradition of the Company's incentive outstanding talents stimulated their passion and aspiration for the Company's development and
mechanism. The Company rewards the shares to the key employees making them become the real masters of the injected everlasting vitality into the Company's development.Company. Internally the Company has put forward an assessment and incentive plan for the post target responsibility
system. Based on our own development experience and the core concept of taking the market as the core leading
technology and management as the guarantee our overall goals general tasks time limits for completion and scientific
rules on the results to be achieved are strategically decoded and decomposed step by step in respect of each key position Employee welfare
in order to guide and encourage all undertakers who perform tasks to work together along the same direction as the overall
goals optimize the benefits and practice the core values of "being oriented towards the value creators". Being always professional and meticulous in the construction of an employee welfare system we are committed
to providing all-round and multi-level welfare guarantees for our employees. During the reporting period the
Company updated the welfare system for the retired employees to better help the employees ease their worries
KPI - key performance indicator
after retirement.The improvement of the
original key performance
KPT - key performance target indicators is an important KPP - key project platform 02
supplementary index for
It comprises of an efficiency assessing KPT. Pay attention to the Party-mass
indicator X and a status construction of major 01 Integrated Activity venue of
indicator Y. From the projects and long-term Service Center 3000 ㎡
perspective of marketing platforms.and technologies it may be 02
decomposed into the most Kingfa homeland:
grassroots business units or 03 Consolidate the
technology units. foundation of the
01 "home"Reflect the warmth of
Diverse the "home" 03
intensive Cohere the strength of 10 interest
services "the home" clubs
Post target 05
accountability system
Be goal-oriented and Welfare and
resolutely achieve care system
missions
Construct a management system of "three indicators three standards and three
practices" and each functional module corresponds to the decomposed targets. 04
Vertically conduct performance appraisal for the cadres and horizontally match
employee value and position value on a flow basis.Construction of "Kingfa Homeland Culture"
Components of the Post Target Responsibility System
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Environmental Social and Governance Report Social Responsibilities
Employee Welfare and Care System During the reporting period
Five social insurance and Supporting living and Support for the Company organized the 30th anniversary and distributed welfare of RMB13.4 million to
one housing fund recreational facilities Medical health difficulties
The Company buys The Company provides the The Company has set up an We attach great importance 13694 employees. The total amount of benefits for the Spring Festival Women's Day "endowment insurance employees with canteen infirmary to provide basic to the lives and families of
medical insurance maternity dining services multi- health diagnosis treatment our employees in need. We
insurance unemployment room welfare dormitories and psychological counseling have set up a special fund and Mid-Autumn Festival was RM B7.8million.insurance work-related equipped with complete services for the employees. to support the employees in
injury insurance and housing infrastructure and diverse We annually arrange free need and apply for support
provident fund" for all cultural and recreational physical examinations for our funds for our employees who
employees. activity venues. employees. can hardly obtain loans or
suffer from critical diseases or
whose families face difficulties
Improvement of in applying for loans.Benefits and academic qualification
Holiday benefits subsidies and training Holiday care
The Company provides the The Company provides the The Company provides the The Company implements
employees with birthday gifts employees with annual and employees with paid training a five-day work week and
and distributes condolence quarterly benefits traffic learning and improvement the employees are entitled
money or condolences to the subsidies seniority subsidies subsidies. to holidays such as Set up an infirmary of the Company
employees every year during other benefits and subsidies. maternity leave marriage
the Spring FestivalMid- leave funeral leave and
Autumn Festival anniversary annual leave according to
and other festivals and the law.organizes diverse recreational
activities during holidays.Rights and interests
of the female Convenient
Family care employees transportation Dispatch benefits
The Company encourages Paying attention to the female The Company provides The Company provides
the employees to bring employees' rights and interests the employees with free overseas subsidies overseas Upgraded staff dormitories Arranged special school buses
their children and other the Company has formulated shopping buses shuttle foreign language subsidies commuting and shopping buses
immediate family members the Regulations on Labor buses for commuting and family visit holidays overseas
to live with them. Besides Protection and Management welfare vehicles. insurance and other benefits
we provide childcare of Female Employees. We for the overseas employees.schooling and shuttle have set up nursery rooms
services for our employees' and green channels for the
children. We have pregnant women to dine
introduced a kindergarten and implemented other
and made special school measures to care for the female
bus services available. employees.Upgraded the skills training Set up childcare classes for the
rooms and lounges for employees' children
frontline employees
Employee Benefit Measures during the
Reporting Period
96972023
Environmental Social and Governance Report Social Responsibilities
Employee Activities Employee development and training
The Company has long been committed to optimizing the employees' spiritual and cultural life. Upholding
popular small-scale and routine activities we make innovations of our recreational and sports activities in form The Company makes continuous innovation and improvement of the talent development system to provide
and substance according to local conditions. During the reporting period we organized more than 500 activities to the employees with a broad career development platform. The Company has built a talent competency model
enrich our employees' amateur life increase our employees' enthusiasm for work and create team spirit. developed and improved different employee training management methods improved the training faculty pool
and developed training courses. We continuously expand and develop internal training resources effectively
improve the professional quality and job skills of our employees and foster professional forces.Case "New Leap · Vigorous Development" Kingfa 30th Anniversary Celebration: Starting a New Journey to Sustainable and High-quality Development Employees' Career Development
Around the "1438" strategic goal for 2030 and based on the needs of the business units the Company has integrated the
In November 2023 the Company ushered in its 30th anniversary celebration which was grandly held talent strategies from the perspective of marketing technologies domestic and overseas operations. We have set the
at Qingyuan Sports Center Guangdong Province. The celebration party was wonderful showing the employee development vision of "attracting global outstanding talents activating individuals improving organizational
Company's innovations and progress in the past 30 years and eulogizing that under the leadership capabilities becoming a world-renowned employer brand and guaranteeing our realization of the "1438" strategic goal
of the chairman the Company was moving towards a new by providing a high-quality talent supply chain". The Company is committed to fulfilling the core tasks for increasing its
era of sustainable and high-quality development and talent adequacy ratio organizational efficiency and organizational fit to guarantee the talents' career development.advancing toward the goal of one hundred billion. This activity
inspired the employees to continue to uphold the concept of
making technological innovations and serving the country
through industry in the next 30 years and contribute to the Level of talent competency Personal empowerment Internal empowerment Worldwide development
technological revitalization of the motherland. The 30th Anniversary Celebration of the Company
Continuous innovations; Collaboration and Customers first;
Core loyalty to the organization cooperation; efficient striving spirit
competencies operations
Senior management style Inspire others Strategic thinking
Top Shape organizational Resolute decision-making
leadership capabilities
In April 2023 the Company organized In April 2023 the Company organized In September 2023 the Company Lead transformation
an outdoor hike. a badminton fellowship tournament organized a 5V5 basketball match.with a daily chemical enterprise
Strive for excellence Empower the teams Strategic integration
Middle Manage target plans Operational awareness
leadership Drive execution
Intrinsic motivation Team management Professional influence
Bottom Resilient growth Problem analysis
In October 2023 the Company held a In October 2023 the Company leadership
fun sports meet and more than 300 organized the Second "Kingfa Cup" EQ and solving
employees took part in the sports meet. Football Match.Talent Competency Model
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Environmental Social and Governance Report Social Responsibilities
Upholding "attaching equal importance to integrity and talent and employing one's talent to the fullest extent" we Organization of Employee Training
highly value our employees' career development. To this end the Company provides diversified career development
opportunities including a dual-track career path and a job rotation mechanism to expand the career growth space The Company is committed to improving the employees' skills and knowledge through continuous internal and
for our employees. In the dual-track career path we have established two different development channels for external training ranging from the EYAS Program for fresh graduates to the "creation-specific" echelon talent
management and expertise. Our employees may choose the most suitable career development paths according to training program for the technical system to provide tailor-made training opportunities for the employees at
their professional skills and personal hobbies. The Company has formulated differentiated and reasonable career different stages to achieve self-enhancement.promotion standards based on the competency model and job qualification requirements.During the reporting period
Dual-track Path
the Company created compiled learning maps for and produced
Leaders Level 5 Expert 11 series of job training 23 development channels 575 courses
Level
Managers Senior Engineer
4
a total of our representing an increase of
Supervisors Level 3 Intermediate engineer 10658 22.7% as compared
employees were trained with the previous year
Engineer Level 2 Engineer
the total training hours received
by the employees were with an increase of each employee received training of
Assistant Engineer Level 1 Assistant Engineer
440232.29 70.73% as compared 41.3 hours on average
with the previous year
During the reporting period
The Company has built "Kingfa Global
Innovation Training Development
the Company subsidized the of which RMB to encourage the Center" and "Kingfa e-Enterprise
employees' improvement of their employees to improve their Learning" as employee growth
academic education and further 304700 academic qualification and platforms. Internally we organize study in institutions of higher enhance their professional "online plus offline" training and
learning with a total of RMB was for improving their knowledge. learning. Kingfa Management School
academic education has created an all-round training
1.075 and development system for the million employees to help them grow
through a series of talent training
projects E-learning platforms on-the-
job education and job rotation etc. Kingfa e-Enterprise Learning
100101
hann
els
c
fessio
nal
Pro
Management channels2023
Environmental Social and Governance Report Social Responsibilities
On the basis of ensuring regular training the Company focuses on implementing 5 management talent training Internally the Company cultivates and seeks lecturers. We are slack in admission and strict in evaluation when selecting
plans and 3 professional talent training projects thus forming a strategic talent echelon training system. We conduct and certifying our internal lecturers. Any employee who meets our internal competency requirements may apply to the
customized training for marketing technical and operating personnel and regularly organize training to empower HR Department for teaching training courses developed by himself or others. The HR Department annually organizes
our employees facilitate their better development and lay a solid foundation for our long-term success. During the several certification training courses for junior intermediate and senior lecturers and conducts on-site evaluation of the
reporting period the Company trained 6 recipients of State Council subsidies 146 senior engineers and 1 academician. trainees after their enrollment in the training and completion of the major courses at the corresponding levels.Internal directors of the Skilled at course development They have not taken part in the
Company and those with higher and design they are able to internal lecturer examination
titles/external lecturers of the independently develop 1 offline but are experienced in giving
Marketing system (sword series) Technical system Operation System (Eagle Series) Company and lecturers from the course and have passed the lectures inside the Company
Young eagle sword forging Fresh technical graduates Young eagle flying eagle institutions of higher learning examination; have developed 2 or have failed the examination
Microlectures/SOPs for junior lecturers
sword showing sword sharpening product development TOP program eagle
executives of the Guest lecturers Intermediate lecturers Temporary lecturers
Technology Center
Learning themes of the TOP program
Positioning for sword showing strategies organization 01 02 03 04 05
Cultivate managers for the three-in-one Genesis class construction senior leadership
modules and capabilities necessary for
The training is aimed at making other strategies
the trainees competent for
jobs in product planning and Senior lecturers/facilitators Junior lecturers
management innovation. Eagle-specificPositioning for sword sharpening
leadership improvement of
cultivate excellent salespersons for the Skilled at scheme design and Skilled at teaching they are
management skills coaching
markets at home and abroad organization they are able to able to independently teach
skills and procedure optimization
independently guide meeting 1 to 2 courses. With good
Creation class design and organization. skills in speech and crowd
control they are capable of
Aimed to cultivate the employees
to be competent for product Flying eagle-specific developing 2 cases and have
Positioning for sword forging development Outstanding individuals passed the examination.Cultivate salespersons with business communications and
knowledge and powerful sales capabilities Overseas creation class improvement of grassroots
Make the trainees competent for communication skills Capability Requirements for Internal Lecturers
overseas work environment in
addition to product development
Positioning for young eagles Creative thinking class Young eagle-specific
Integration into the organization and Aimed to make the trainees Enterprise cultures and product
knowledge about the products and the competent for basic R&D knowledge
organizational system
Training System for Talent Development
102103
Level of talent
competency Senior leadership Middle leadership
Grassroots
leadership2023
Environmental Social and Governance Report Social Responsibilities
Case Employee training
Spark plan Training on Enterprise Digitalization
To train/reserve talents construct talent echelons To promote the Company's digitalization and ensure that the Company's core management
and help new potential talents improve their cadres have a unified understanding of digitalization support our digitalization strategies and
professionalism and accelerate their development effectively promote the relevant deployment of digitalization in December 2023 we invited
of professional capabilities in December 2023 the experts from a third-party organization to teach all our middle and senior management cadres in
Company initiated an internal training program respect of Enterprise Digitalization.for the new fresh graduates who had just entered
the Company - spark plan and trained them at
the first stage."Spark Plan" for the Fresh Graduates
Sword sharpening plan
The "sword sharpening plan" Phase IV as an
important strategic measure of the Company
under the macroscopic background of its
complete internationalization and one of the The Company's Initiation of Training External Lecturers' Explanations to the Trainees
core projects for building talent echelons of by the General Managers
the Marketing Center helps carry forward the
entrepreneurial spirit giving play to platform International talent training program
advantages and realizing leapfrog development.In response to the overseas strategic goal
Fifth Centralized Training of the Sword Sharpening of "deeply embarking on businesses in Asia
Eagle plan Plan Phase IV in Central China Base Pacific and developing the businesses in
"Eagle Plan · Potential Talent Program" cultivates Europe and the United States" we have
the high-potential reserve management talents of actively established an overseas talent supply
directors and the management cadres who have chain system adopted a two-pronged strategy
been promoted into directors in the past two years for "going out and bringing in" to continuously
in a targeted manner. Through the early surveys accelerate the cultivation of international
this program cultivates evaluates and selects talents and build an international talent
talents by extracting experience from outstanding echelon with global visions cross-cultural
organizations through training missions. The key communication capabilities and professional
As a general manager of the Company
training content of this project includes profound skills. In 2023 we carried out an international
Professor Li Nanjing taught the course known as
Internationalization Strategies and Foreign Planning
understanding of the chairman's thoughts training program with four special projects and of the Company and took a joint photo with the
improvement of middle leadership cultivation of eight subdivided fields covering outstanding members of Soaring Falcon abroad.excellent operation capabilities and expansion of talents at home and abroad engaged in the
management insights. Such full coverage is aimed field of marketing technologies and internal
to improve the cadres' competencies from different functions. We approximately cultivated 270
perspectives for the purpose of realizing leapfrog internationalized talents and developed about The High-potential Talent Class of the Eagle Plan
development to a greater extent. 67 internationalized courses.Visited CSOT
1041052023
Environmental Social and Governance Report Social Responsibilities
Occupational health and safety We care about and attach importance to all our employee's physical and mental health. In terms of occupational health when entering into labor contracts with employees in positions exposed to occupational hazards we
truthfully inform our employees of the hazards they might be exposed to during work and their consequences
Our occupational health and safety work has always been carried out based on the concept that "safety is essential measures for protecting against occupational diseases and benefits. Without concealing the risks of any positions
for survival" and the policy that "production and life safety is the top priority". All our subsidiaries shall take such we enter into a contract on notifying hazards of occupational diseases with our employees.concepts and policies as prerequisites for carrying out work and actively publicize and implement them to increase
our employees' safety awareness and create a safe healthy work environment. The Company selects an occupational health examination institution after comprehensive consideration of its
hospital qualification quality of medical services experience in occupational health examination facilities
The new construction reconstruction and expansion projects as well as the three simultaneous for the environment- internal and external environment. We organize pre-job on-the-job and post-employment physical examinations
friendliness of the Company its bases branches and subsidiaries must meet the national requirements for for occupational diseases according to our production characteristics and the occupational hazards existing in the
occupational health safety facilities and firefighting facilities. It must be ensured that they are designed constructed positions of employees in with reference to the national occupational health monitoring standards. Besides we
and put into use at the same time as the main projects to ensure that the construction projects conform to the continuously observe and manage our employees' physical examination results.occupational health and safety fire and environmental protection standards stipulated by the state after they are put Categories of Occupational Health Examinations
into operation upon completion and ensure the employees' safety and health in the production process. During the
reporting period the Company and its 11 subsidiaries or production bases passed the ISO 45001 Occupational Health Pre-job On-the-job At the time of leave Emergency
and Safety Management System Certification.Arrange occupational health Annually arrange Arrange health examinations In case of any unexpected
examinations for the employees occupational health for the employees before they emergency that endangers the
"Three-simultaneity" System for Occupational Health and Safety Facilities who are about to go on duty examinations for the are transferred away from or employees' health immediately
(including those subject to job employees according to get away from the operations organize health examinations
transfer) concerning the potential national regulations regularly. exposed to occupational for the employees working in
Pre-assessment Design of facilities for Effectiveness evaluation hazards they might be exposed hazards or in front of their the same workplace analyze the
of occupational protecting against of control over to in their posts according to the posts to confirm their cause of the accident draw up
hazards occupational diseases occupational hazards post characteristics. health status when they are solutions and a solidification plan
suspended from exposure to and reinforce occupational health
01 02 03 occupational hazards. and safety management.
Safety pre- Design of safety Safety assessment upon The Company pays attention to the employees' occupational health and safety carries out pre-job and on-the-job
assessment facilities completion occupational health training for them popularizes knowledge about occupational health and urges the employees
to abide by laws regulations rules national occupational health standards and operating procedures for prevention
and control of occupational diseases. For the employees in positions exposed to serious occupational hazards special
occupational health training will be carried out and the employees will be allowed to perform operations in their
posts only after they have passed the training. The Company has posted occupational hazard notification cards and
Occupational health protection set up bulletin boards in all workplaces to inform the employees of occupational hazards in the workplaces preventive
and control actions and systems. Each base branch and subsidiary regularly monitor the occupational hazards in
The Company complies with the Law of the People's Republic of China During the reporting period the workplaces and announce the test results to the employees. The Company provides sufficient and conforming
on the Prevention and Control of Occupational Diseases other relevant personal protective equipment for all employees exposed to occupational hazards.laws and regulations. We prepare and strictly implement occupational we invested RMB
health protection system documents including the Regulations on the
Management of Occupational Health Safety and Environmental Protection 4.665 Management Measures for Prevention and Control of Occupational Diseasesmillion in to protect our employees' safety and health in the production process and our employees' occupational Set up an occupational health management organization with Formulate and improve occupational health management
effectively prevent them from suffering occupational diseases. health and safety occupational health management personnel to be responsible systems and operating rules.for the prevention and control of occupational diseases. Provide the employees exposed to occupational hazards with
100 Establish and improve the systems for monitoring and evaluating personal protective equipment up to the national standards.% of our occupational hazards in the workplace. Create and improve files on occupational health and laborers'
employees were covered by Draw up plans for prevention and control of occupational health monitoring.physical examinations. diseases and implementation plans. Set up corresponding warning signs and occupational health
Draft and improve the emergency rescue plans for occupational bulletin boards in THE workplaces that produce or have
hazards and accidents. occupational disease hazards.
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Environmental Social and Governance Report Social Responsibilities
The Company regulates the management of infectious diseases publicizes the basic knowledge about infectious Protection of work safety
diseases increases the employees' awareness of self-health care and disease prevention prevents controls and
eliminates the occurrence and prevalence of infectious diseases in the Company and protects the employees' The Company insists on prevention first ensures the employees' personal safety regards "zero accident" as the highest
health. When suspicious symptoms of the infectious diseases or related patients are found the Company will safety goal by taking the compliance with national laws and regulations as the fundamental requirement. We control risks
take necessary protective measures immediately isolate and send them to hospitals for diagnosis and treatment through our management system and management of the leading work safety team perform supervision and evaluation via
discover and manage the sources of infection in time cut off the channels of transmission and avoid cross- the safety assessment system. We have established a perfect work safety management system. We facilitate improvement of
infection. The company performs chemical disinfection and prepares standardized operation tables for common our safety work and guarantee our smooth production management by improving our system construction strengthening
disinfection of daily necessities to guide the actual disinfection work and reduce the spread of infectious viruses. our process management performing our main responsibilities and conducting regular evaluations.Investments in work Number of major work Number of general work
Case Heatstroke prevention and cooling activities safety (RMB'0000) safety accidents safety accidents
12
7827.92
5698.16363.6498
From June 2023 to September 2023 the Qingyuan Base of the Company organized the departments to carry out
the work for heatstroke prevention in the high-temperature season. The Company fully upgraded the hardware 0 0 0
facilities for heatstroke prevention in each workshop equipped the rest areas with air conditioners and
maintained existing fans and other equipment to ensure a pleasant indoor temperature. Besides we vigorously
promoted the knowledge about heatstroke prevention organized special knowledge training on heatstroke 2021 2022 2023 2021 2022 2023 2021 2022 2023
prevention for our employees and performed high-temperature emergency drills to comprehensively
improve their competencies for dealing with high temperatures. We also invited professional doctors to carry Note: The major and general work safety accidents are distinguished by factors such as casualties pecuniary losses of the
out certification training for first responders of workshops. The training coverage rate reached 95% and 55 Company administrative penalties and the impacts of major media in accordance with the Group's Management Regulations
employees obtained the certificates for the first responders. In addition the Company adjusted the working for Occupational Health Safety and Environmental Protection.hours during the high-temperature season and appropriately shortened the working hours during the high- We adopt a group control system for our overall safety work. Led by the group's leading work safety team our
temperature period at noon to ensure that employees had sufficient rest time. We also distributed heatstroke bases branches and subsidiaries autonomously schedule and finish their respective safety work based on
prevention and cooling supplies including cooling oil sunscreen and drinking water. We also improved our pertinent national laws regulations technical safety specifications and standards as well as related documents
employees' work in all aspects of our management mode including hardware employees' qualities and skills and their respective management standards step by step. We have created a streamlined safety network at three
and emergency response to protect their health. levels namely "the Company - departments - shift teams". We summarize our work safety experience participate in
accident investigations impel implementation of improvement measures regularly hold meetings for the leading
work safety team enhance all our employees' technical competencies and increase their safety awareness.Case Publicity Week of the Law on the Prevention and Treatment of Occupational Diseases Architecture of the Company's Leading Work Safety Team
Leader/deputy leader of the leading work safety team
During the reporting period Specialty Engineering Plastics Company organized the publicity week of
the Law on the Prevention and Control of Occupational Diseases popularized knowledge laws and As the primary person responsible for the Company's work safety the general
regulations about the prevention and control of occupational diseases to the employees in various manager assumes full responsibilities for the Company's work safety.forms such as regular workshop meetings education training banner publicity poster posting leaflet
distribution and video publicity. A total of 7 banners Members of the leading work safety team
and 4 promotional posters were posted. 210 leaflets The safety supervision and management decision-making body under
were distributed and 3 occupational health videos the leadership of the general manager is responsible for overall planning
were repeatedly played on the display screen. Each coordination and resolution of major safety and environmental issues.workshop organized one training session about The managers are comprehensively supervised.occupational health and protection. The series of
activities increased the employees' awareness raised To promote the performance of the main responsibility for work safety implement the work safety responsibility
their concern about the prevention and control of system and the working principle that "one who is in charge shall be responsible" the Company conducts
occupational diseases and enhanced their legal
Leaflets on the Workshop Employees' Learning performance appraisal and the leading work safety team annually executes the indicators of each department awareness and self-protection ability. Continuous about the Law on the Prevention and Control of and each subsidiary as suggested by its leaders and incorporates them into the responsibility documents for
efforts were made to protect the laborers' health. Occupational Diseases assessment. The indicators of each department of a subsidiary are decomposed and assessed by the leading work
safety team of the subsidiary according to the indicators of the person in charge of the subsidiary.
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Environmental Social and Governance Report Social Responsibilities
Safety training and drills Number of training Number of trainees in the Number of drills on
sessions on work safety training on work safety work safety
The Company implements a full coverage system for safety education. All employees must receive systematic safety 1294 49955 194
education and training when they go on duty on their jobs and are promoted. We require our employees to strictly 953 969
comply with all our rules avoid violations minimize accidents and increase their awareness of safe work. 22782 29653 136
155
The new employees must pass the orientation training and assessment on safety and the incumbent employees
must receive safety re-education every year. The management supervisors and professional and technical
engineers must receive safety training before their promotion and may be promoted or appointed only after passing 2021 2022 2023 2021 2022 2023 2021 2022 2023
the assessment.Content of Safety Training Employee coverage of Number of work safety
safety drills (%) inspections
98.5979
96.3936
Work safety laws and Safety procedures and requirements 83.5 882
regulations as well of the Company including work
as relevant standards safety prohibitions
applicable to the Company 01 02
202120222023202120222023
The evaluation is performed Content Discuss the hazards existing
of Safety Case Emergency drill of Ningbo Kingfa after the training and a 05 03Training in the areas of new posts
closed-book examination is where appointment remains
arranged. The exam paper to be performed or that the In 2023 the site emergency response drills were performed under regular and normalized models for
consists of choice questions personnel to be appointed for different departments of Ningbo Kingfa. A total of 33 drills were organized according to the annual plan 04
and short answer questions or these posts will be exposed throughout the year including 20 on-site drills on the emergency response plan 12 special drills on the
case analysis. The minimum and some major controls emergency response plan and 1 drill on the comprehensive emergency response plan. Each department
passing score is 80. Previous accident cases of the Company organized more than 120 drills for the shift teams according to its internal drill plan.and those related to the appointment for
this post; procedures and requirements for
handling the emergencies.To strengthen its ability and responsiveness to deal with emergencies the Company has formulated emergency
response procedures such as the Management Procedures for Risks Opportunities and Emergency Preparedness
and Response Plans to ensure that all emergency plans are implemented in a timely and effective manner in
emergencies standardize emergency management of unexpected work safety accidents effectively implement
emergency rescue in time minimize casualties and property losses guarantee employee safety and ensure that
emergency management is quickly and effectively carried out in order.Investigation and Treatment of Hidden Hazards
The hidden hazards are generally classified into general and major hidden hazards. Dependent upon their
severity and urgency they shall be promptly rectified and closed. Emergency Drill of Ningbo Kingfa
1101112023
Environmental Social and Governance Report Social Responsibilities
Social development and public welfare
Case Emergency drill of Qingyuan Base
The Company insists on taking social interests as the foundations for its prosperity upholds that "for those
To deepen the organization of the national work safety month with the theme that "everyone shall pay taken from the community give back to the society" takes serving the country through industry as its own
attention to safety and can make emergency response" the Company has effectively strengthened the responsibility and dares to assume social responsibilities. During the reporting period the Company actively
emergency response capabilities of all bases departments and employees. Qingyuan Base carried out 5 participated in the national rural revitalization work supported and made donations to public utilities such as
special emergency drills on safety work in confined space and special equipment and 16 fire drills. health care firefighting and education in various forms while serving and giving back to the public.During the reporting period
The total amount of external donations
161 with an average participation time of made by the Company was up to RMBemployees
participated in the 27.3 hours 6.3516 million
volunteer activities
Rural revitalization
The Company fully implemented
Emergency Drills of Qingyuan Base t h e w o r k re q u i re m e n ts o f
the central government for
consolidating and expanding
the achievements in poverty
alleviation and comprehensively
Case Series of activities of the Work Safety Month promoting rural revitalization
fulfilled social responsibilities
In June 2023 the Company organized the 22nd National Work Safety Month online and offline and contributed to social equality. Specialty Engineering Plastics Company's Chengdu Kingfa's Donation of Money for
continuously increased all employees' awareness of safety redline promoted the performance of Donation of Money for Poverty Alleviation Targeted Support of Batang County Ganzi
responsibilities for work safety and effectively improved risk investigation and rectification. With the in Shigu Town Gaozhou City Tibetan Autonomous Prefecture.theme that "everyone cares about safety and everyone can respond to emergencies" this activity
focused on performing safety responsibilities strengthening emergency management and popularizing
Case Specialty Engineering Plastics Company supported villages and enhanced safety knowledge. We combined different forms of safety training and education with emergency drills to cooperation with private enterprises
further improve all employees' safety awareness and ability to avoid danger and escape.In July 2023 Special Engineering Plastics Company provided
targeted support for the rural construction of Dakui Village
Pinggang Town Yangjiang High-tech Zone by coordinating
with the Military-Civilian Integration Office of Zhuhai
Committee of the Communist Party of China in order to
facilitate the annual government support for the region
Question Answering on Organizational Organization of a Firefighting A Series of "Work Safety Month" Activities strengthen cooperation among private enterprises and make
Safety Cultures and Skills of Qingyuan Competition in the "Work Safety like "Grid-connected Power Consumption" due contributions to creating a happy social environment.Base of the Company Month" of Specialty Engineering Organized by Shanghai Kingfa
Plastics Company Love and Dedication Award of Special
Engineering Plastic Company
1121132023
Environmental Social and Governance Report Social Responsibilities
Public benefit activities Dream Building by Talents
The Company actively promotes the concept of public welfare and insists on delivering warmth to society. During Knowledge is power and education is the cornerstone. Adhering to the concept of rejuvenating the country through
the reporting period we gave back to society in different forms including donations volunteer activities and social education the Company supports the development of education through donation activities. In combination with our
publicity. We cultivated our employees' awareness of public welfare and conveyed warmth with actions. businesses we output knowledge through popular science activities to guide minors to foster their awareness of science.Tianjin Kingfa's Donation to Women and Children Wuhan Kingfa's Condolences to the Fire Brigade and
Development Foundation Provisioning of Free Drinks for Heat Relie
Wuhan Kingfa's Donation of Books and Sports Equipment to Putan Kindergarten Kingfa Medical's Donation of Medical
and Huangling Middle School Materials to Xiangxiao Beilu Primary School
Case The National Industrial Innovation Center organized science popularization at schools to carry forward scientific spirit and popularize scientific knowledge
In September 2023 the volunteer science popularization team of the National Industrial Innovation
Center entered Guangzhou Experimental School Affiliated to BNU to carry out the science popularization
on "Advanced materials" introducing the characteristics application scenarios and impacts of plastics
Ningbo Kingfa's Investment of RMB 250 Thousand in Shanghai Kingfa's Organization of Volunteer Services on life supplemented by operable exhibits to combine teaching with entertainment enrich students'
the Charity Foundation Named "Common Prosperity for the Employees in Zhujiajiao Town extracurricular life and cultivate students' interest in sciences.Happy Home"
Case Kingfa Medical donated medical materials to the Red Cross Society of Hangzhou
China Branch protecting the life and health of medical and nursing personnel
In May 2023 Kingfa Medical and the Red Cross
Society of Hangzhou China Branch held a donation
ceremony with the theme of "Protecting and
Caring for the Angels with Technologies". Kingfa
Medical donated medical supplies with a total
value of RMB 1 million to the Red Cross Society of
Hangzhou China Branch to support the work of the
medical staff of Jiande Center for Disease Control
and Prevention provide protection for their life
and health and express its determination to social Kingfa Medical's Material Donation of One Million Chinese Science Popularization by the Volunteers of the National Industrial Innovation Center in Classes
responsibilities. Yuan to the Red Cross Society of Hangzhou China Branch
114 115Responsibility for
Governance
Held
2 Cumulatively
general applied for
shareholders'
meetings 6036
Disclosed domestic and foreign patents
8
meetings of 59interim Includingthe Board of
Directors announcements 4394
Performed invention
5 4 53 patents
meetings of regular information
the Board of announcements security Apply for
Supervisors audits 602
new patents
SDGs：2023
Environmental Social and Governance Report Responsibility for Governance
Operation by the Board of Directors the
Board of Supervisors and the general Board of Supervisors
meetings of shareholders Our Board of Supervisors conscientiously performs its duties in strict compliance with the Company Law the Rules of Procedures for the Board of Supervisors and the Articles of Association. It regularly convenes meetings
to perform its duties for supervising and inspecting our directors' and officers' performance of duties and our
The Company has established a sound system for the operations of the general shareholders' meetings the financial affairs to truly protect our and our shareholders' rights and interests.Board of Directors and the Board of Supervisors and continuously regulates their operation and decision-
making so as to ensure efficient cooperation checks and balances among the authorities decision-making and During the reporting period
supervisory bodies. To protect the legitimate rights and interests of our shareholders and creditors and regulate
our organization and operations we regularly update and perfect the Articles of Association the Remuneration the Company held
Management System for Directors Supervisors and Senior Management the Internal Reporting System for
Material Information and other governance documents which are disclosed on the website of the Shanghai Stock
Exchange (www.sse.com.cn) and our official website. 2 general shareholders' 8 Board of Directors 5 Board of Supervisors
meetings at which a total of meetings at which a total of meetings at which a total of
General Meeting of Shareholders 12 motions were 41 motions were 18 motions were
considered considered considered
Board of Supervisors
Board of Directors
Secretary of the Board of Directors
Independence and Diversity of the Board of Directors
Nominating Remuneration Strategy and
The Company attaches great importance to the independence of the Board of Directors. We have formulated and
Committee and Evaluation Sustainability Audit Committee regularly updated the Independent Director Work System. The Company attaches great importance to the plurality Committee Committee of independent directors in the Board of Directors and its subordinate committees so as to strengthen the fairness
of the Board of Directors' decision-making and protect the legitimate rights and interests of the shareholders.Architecture of the Company's Board of Directors
During the reporting period
General Meeting of Shareholders the Board of Directors Either the Audit Committee the The Strategy and
consisted of Nomination Committee or the Sustainability
In strict compliance with the Company Law the Rules of Procedures for General Shareholders' Meetings of Remuneration and Appraisal Committee had
the Company and the Articles of Association voting procedures are performed for convening and holding the 11 members
Company's general shareholders' meetings. The duties of the general shareholders' meetings mainly cover major Committee has 3 members 5 members
decision-making and regulatory affairs of the Company. We also ensure that all shareholders attend the meetings
and fully exercise their consultation and voting rights. 4 of whom were 2 of whom were 3 of whom were
Board of Directors independent directors independent directors independent directors
Our Board of Directors strictly performs the duties for deciding on our major decisions and plans of the Company
and formulating our major systems in accordance with the Company Law the Rules of Procedures for the Board
of Directors of the Company and the Articles of Association. The Board of Directors has set up four professional
committees to provide professional advice and support for its decision-making.
1181192023
Environmental Social and Governance Report Responsibility for Governance
While emphasizing the independence of the Board of Directors the Company also attaches great importance to the Remuneration and Equity Policies
diversity of the Board of Directors. Sex age professional background and other dimensions have been considered in
nominating directors for the Nomination Committee. The Company believes that directors with diverse backgrounds The Company adopts a salary structure of " annual base salary annual performance pay and long-term
may help the Board of Directors better supervise its management and operations evaluate the risks and opportunities incentives". We have established a benefit and risk-sharing mechanism for our shareholders management
of its business model from different perspectives and promote its formation of an equal inclusive and open culture. and business backbones. Besides we implement an equity incentive plan for all employees to encourage our
managerial personnel technical business and operation backbones who satisfy the incentive conditions.Diverse Backgrounds of the Members of the Board of Directors
Name Gender Age Position Held Incumbency of the committees Specialty If a director supervisor officer or a shareholder The stocks or other securities with equity nature
holding more than 5% of the shares of the held by directors supervisors officers and
Yuan Strategy and Sustainability Committee
Company sells the shares of the Company or shareholders who are natural persons mentioned
Male 62 Chairman Nomination Committee Remuneration and other securities with equity nature held by him in the preceding paragraph include the stocks Zhimin Appraisal Committee or her within 6 months after the purchase or held by their spouses parents and children and
repurchases them within 6 months after the held through other people's accounts or other
Director General sale the proceeds therefrom shall be owned by securities with equity nature. Li Nanjing Male 61 Manager the Company and the Board of Directors of the
Company shall recover the proceeds therefrom.Xiong except for the circumstance that a securities
Haitao Female 59 Director company holds more than 5% of the shares due to
the purchase of the remaining shares after the
package sale and other circumstances
Li Jianjun Male 60 Director Strategy and Sustainability Committee stipulated by the China Securities
Regulatory Commission.Ning
Hongtao Male 50 Director Audit Committee
Wu Di Male 39 Director deputy general manager
Chen Male 41 Director deputy Pingxu general manager
If the Board of Directors
Yang Male 57 Independent Remuneration and Appraisal Committee
fails to follow the first paragraph
Xiong director Audit Committee of this article the shareholders have the
right to request the Board of Directors to act as In the event that the Board of Directors
Xiao Independent Strategy and Sustainability Committee specified therein within 30 days. Where the Board
fails to implement the first paragraph of
Shengfang Male 54 director Nomination Committee Audit Committee of Directors fails to act so by the aforementioned
this article the responsible directors shall
time limit the shareholders shall have the right bear joint and several liabilities according
to directly file a lawsuit with the people's court in to the law.Zeng Male 61 Independent Strategy and Sustainability Committee Xingrong director Remuneration and Appraisal Committee their name in the interests of the Company.Equity Policies for the Company's Directors Supervisors and Officers
Meng Male 60 Independent Strategy and Sustainability Committee Nomination Yuezhong director Committee
For details of the remuneration policy and remuneration of the directors supervisors and officers during the
Note: Major in polymers Major in economics Major in finance Major in law reporting period please refer to Section IV - Corporate Governance of the 2023 Annual Report.
1201212023
Environmental Social and Governance Report Responsibility for Governance
Transparent disclosure Communications
The Company interacted with its investors through general shareholders' meetings performance briefings
The Company strictly complies with the Measures for the Administration of Information Disclosure by Listed Companies. SSE E-interactive investor hotline and E-mail to convey the investment value of the Company other channels
We have formulated the Information Disclosure Management System and the Investor Relations Management System to and methods. We actively accept visits and surveys from regulatory authorities and associations to strengthen
safeguard the legitimate rights and interests of the stakeholders and promote long-term efficient win-win cooperation the transparency and accuracy of our information disclosure. After each regular report a performance briefing
between the Company and the majority of stakeholders. Besides the Company fully considers the correlations between is organized. Our officers such as the general managers independent directors chief financial officers and
previous and subsequent information. Around the investors' demands for information related to decision-making we secretary of the Board of Directors are invited to participate in the exchanges.orderly realize the positive cycle of "setting and fulfilling expectations" to build a good corporate image.Information disclosure
Standardized and transparent information disclosure is fundamental for the Company to maintain effective
communications with investors regulatory authorities and other stakeholders. Our regular and temporary
announcements truthfully accurately completely promptly and fairly disclose the matters related to the
Company's operation and governance. The Company strictly fulfills its obligations for information disclosure as a
listed company and actively protects the legitimate rights and interests of investors and other stakeholders.The Company designates the media that are qualified for information disclosure in the securities market as
announced by the China Securities Regulatory Commission and the website of the Shanghai Stock Exchange Performance Briefing Visit to the Site of the General Shareholders' Meeting
as the media for publishing its announcements and other information to be disclosed. We have set up a special
column for investor relations on our official website to synchronize our important announcements in order to
ensure that our investors and other stakeholders have easy access to accurate important information related to
us through official and authoritative channels.Main Information Disclosure Channels of the Company
Disclosure of corporate reports During the reporting
period the Company
disclosed
International
Internet websites Official website
designated by CSRC of the Company
Media 59 temporary
announcements and
Special column for
www.sse.com.cn China Securities Journal
investor relations 4 regular
Shanghai Securities News announcements Visit of Regulatory Authorities and Associations
Securities Times
Securities Daily
1221232023
Environmental Social and Governance Report Responsibility for Governance
Risk Management
To improve our governance ability and risk management ensure our long-term development and maximize
our interests we have set up the Audit Committee under the Board of Directors to coordinate our compliance While summarizing and managing risk issues the Company initiates risk warnings to investigate and warn risks.management work and supervise the continuous operations of our compliance management system. The The Company establishes conditions for triggering risk warnings sends potential identical risks by carbon copy or
Company has formulated the Internal Audit System Corporate Risk Control and Early Warning Plan and other periodically releases them to facilitate continuous attention and management of the risk database issues.systems to strictly implement internal control and risk management and ensure its steady development. During the reporting period
First line of defense Second line of defense Third line of defense the Company output a total of including A total of
Responsible for compliance Identify the Legal Department The Audit Department
management the as a general compliance audits and evaluates 13 risk identification 33 high risks and 252 identified problems
Company's departments management department compliance of our summary reports were rectified in 2022
lead and take charge of the which organizes coordinates operations management
compliance management and supervises the compliance and compliance and identified a total of with a rectification rate of
of this system. management work. It provides management.the department responsible for 122 medium and high risks 89 medium risks 78 %
1 2 compliance management with compliance support. 3
Internal Control and Management System of the Company By promoting the rectification of medium and high-risk issues the Company avoided pecuniary losses
The Company annually identifies risks. We carry out whole-process risk identification for 67 risk categories in six of RMB 11.512 million in total
major risk links build our own risk database and risk warning mechanism and conduct clear effective management
and control of different risks that may affect our businesses. Based on the assessment results on risk level the
of which the direct losses and the indirect losses
Company classifies risks into low medium and high risks and formulates corresponding countermeasures.were reduced by RMB were cut by RMB A total of
6.76 million 4.752 million 35 standards were added/revised.
The group's risk diagnosis results
3434
Risks may be borne without additional controls. Medium risks
Low High risk
risks
Strictly control the risks in this area and 12 11
Medium risks 9additionally formulate controls 7
64
23
Ensure that all risks in this area are avoided and
High risk transferred and give priority to implementing
the preventive actions.Modification Modification Advanced materials Medical Petrifaction
Response to Risks by Level segment (domestic) segment (foreign) segment segment segment
1241252023
Environmental Social and Governance Report Responsibility for Governance
Business Ethics The Company attaches importance to incorruptible party construction. We have formulated the Management Regulations for Ethical Operations to incorporate the education on risks of integrity practice into our creation
of "publicity patterns" include them in our cultural construction and upgrade the education on prevention and
In accordance with relevant laws and regulations on anti-corruption and anti-bribery we have formulated a control of integrity risks for key positions into a topic of education for fighting corruption and upholding integrity.series of rules and regulations such as the Regulations on Acceptance of Gifts for Business Code of Conduct We have established a training system on compliance and business ethics for all our employees. According to this
for Employees Management Procedures for Business Ethics and Management Regulations for Protection system all marketing and financial personnel are required to undergo training regarding anti-corruption anti-
against Commercial Bribery to regulate and control our employees' business conducts. We also enter into the bribery and anti-money laundering. The employees of the Securities Department are regularly organized to learn
Integrity Commitment with our suppliers. The Management Regulations for Protection against Commercial about the new regulations of China Securities Regulatory Commission. We actively perform compliance training
Bribery regulate our establishment and maintenance of an incorrupt management system. All customers in our places of business covering local laws and regulations as well as our code of conduct for compliance and
suppliers service providers and contractors who have business and financial dealings with us are covered by the ethics. We organize positive and negative typical education for the CPC members to increase their awareness of
management scope of this system. We have formulated the management policy for " bribery prohibition and fair integrity and self-discipline. Besides we draw up annual work plans for Party construction to prevent corruption.trade" and resolutely reject commercial bribery briber and other illegitimate business conducts.The Company finds out and identifies the integrity risks of key positions by self-inspection by the posts main
inspection by the leader and further professional inspection. We take the utilization of public resources such
Assess and control our integrity risks; identify integrity risks of different departments and positions.Perform regular integrity inspection for each department report the integrity problems to the as human financial and material resources as clues for detecting the institutional defects and management
Audit general manager if any and formulate control measures loopholes that are likely to cause corruption in key positions possible abuse of power for private gains and lack
Depart- Organize on-the-job integrity training for all departments and employees to increase their of supervision that might result from the authorities in different positions. The integrity risks identified in the self-
ment awareness of integrity. inspection by the posts will be submitted to our Supervisory Audit Department for preliminary examination once
approved by the department heads after their primary examination to determine the risk level. Then organize
Assist the audit Department in conducting regular self-examinations on their further examination of our professional business financial and production systems to finally reach conclusions
integrity issues and report the problems to the offices and the general on the risk identification. Internally we prepare a risk identification table for integrity practice and to a certain
Departments manager in a timely manner if any; formulate corrective and preventive extent we accept supervision by the masses.actions and organize key follow-up on their positions exposed to
integrity risks and formulate corresponding management measures. Respond to early warnings
Build a team of disciplinary inspection and supervision personnel and strengthen managing signs of corruption
Internal Integrity Management Mechanism Supervise information on signs; establish a mechanism for collecting information on signs of corruption analyze and
evaluate the signs and provide early warnings;continuously improve the measures for risk prevention and control.We continuously improve our internal whistleblowing mechanism and whistleblower protection mechanism. We
Promptly respond to early warnings by heart-to-heart talks critical education admonitory talks deadline specification for
have set up a whistleblowing mailbox to receive employee complaints 24 hours all day long strictly protect the rectification and organizational punishment etc.whistleblowers' information strictly keep the reported information confidential and protect the whistleblowers
from retaliation. Risk analysis Procedure supervision
Carefully analyze the identified integrity risks and The functional departments supervise the implementation
further classify risks. Clarify pertinent precautionary through efficiency monitoring and other means with reference to
1 2 3 measures. the professional management system.
Employees violating rules Suppliers and service Truthful whistleblowing Improve key links of production management Decompose tasks and assign responsibilities to each department
providers violating rules procedures and work procedures of key posts. and specific persons in charge
Forfeit all bribery proceeds Notify and supervise our Encourage the parties and insiders Decision-making supervision Broaden the work scope of efficiency monitoring and give full play and perform relevant education departments corresponding to the to whistleblow. We will reward to the roles in error check deviation correction and guarantee of
and administrative sanctions related units and send a written the whistleblowers whose reports Improve our management measures for supervising efficiency supervision.dependent upon the seriousness warning letter. If the circumstances are true as demonstrated after our systems regarding decision-making on major
of the case; transfer THEM to are serious the suppliers and investigation and maintain their issues appointment and removal of important cadres Democratic supervision
judicial organs for investigation of service providers will be resolutely confidentiality. decision-making on investments in material projects Conscientiously implement several provisions on leadership and
their criminal responsibilities if the disqualified. If their acts constitute and use of large-sum funds to increase operability and integrity practice
circumstances are rather serious. a crime of commercial bribery practicability of the systems.(bribery) they will be transferred Strengthen the leaders' incorruptible talks with personnel serving
to the judicial organs for the Specify the particular requirements for important the key posts and thematic study about integrity practice
investigation of their criminal management to effectively strengthen the control
responsibilities. over the risks in the decision-making on major issues Standardize supervision procedures unblock reporting channels
appointment and removal of important cadres and effectively protect the whistleblowers' personal safety and
Reward and Punishment Measures for Business Ethics decision-making on investments in material projects information confidentiality
and use of large-sum funds in our project management
Measures for Preventing and Controlling Risks on Business Ethics
1261272023
Environmental Social and Governance Report Responsibility for Governance
Data security
The Company is highly aware of the importance of information assets. We have established a sound management The Company has formulated the Management Measures for Information Security Training and we ensure
system and conduct training for information security to ensure information confidentiality integrity and effective performance of training by reinforcing standardized management of the information security training
availability. The Company maintains stringent confidentiality principles for the material information and strictly through institutional documents.controls the acquisition storage transmission and use of important information.During the reporting period
Information security protection the Company conducted Among them the Company organized a total of
During the reporting period
The Company has established a series of information security 15 training sessions 8 training sessions on information security of the subsidiaries
management systems including the Information Security Management the Company conducted related to information
Regulations the Management Measures for Security Baselines and the security management
Management Measures for Information System Audit to guarantee the 53 4 information 1 training session 2 training sessions security of information systems and data. information with a coverage of security training on awareness of on information security
security audits sessions for new information security management requirements
75 % employees for key personnel and for IT personnel.
Case Information security training is conducted to learn about information security
The Company organizes thematic training about on-site information security for each subsidiary every
year which mainly covers the basic concepts of information security its network threats introduction of
mainstream attack methods (e.g. APT denial-of-access attack and social work) analysis and explanation
of typical information security incidents that have occurred in the Company how to prevent them and
common security risks and prevention methods for office scenarios. Help the employees master the
basic knowledge and skills for protecting personal and corporate information assets through ongoing
security training. Increase the employees' information security awareness and response capabilities.Reduce information security threats brought by human risks to the Company. Ensure the continuous and
stable operation of information systems and data security.Build a unified identity Cover the security Establish standards for
management platform to management and control security solutions to
realize unified management mechanisms of subsidiaries the industrial control
of personnel's digital including management network to improve the
identity and authentication standards technical controls security protection level
and realize automated (e.g. network access terminal of digital factories. Information Security Training - Information Security Training - Information Security Training -
control in the entire lifecycle anti-virus intrusion prevention). Chengdu Pizhou Wuhan
of accounts to mitigate Eliminate shortcomings in
risks in accounts and security defense.authentication.Information Security Training - Qingyuan Information Security Training - Tianjin
Annual Information Security Practices and Outcomes of the Company
1281292023
Environmental Social and Governance Report Responsibility for Governance
Confidentiality of Material Information
The Company has formulated the Confidentiality Management Regulations which stipulate that internal confidentiality- Eight Core Constructions of Digital Factories
related employees and external personnel shall enter into confidentiality agreements to ensure that sensitive information
is not disclosed and the information security of the Company is guaranteed. In addition the Company has also formulated
and strictly implemented the Management Specifications for Major Meetings and the Management Specifications for Intelligent Planned pull-
Meeting Safety to ensure smooth progress of important meetings confidentiality and security of meeting information. warehousing and type production
logistics system
Digital Construction
The Company actively responds to the development trend of digital factories. We continuously promote the Decomposition Equipment lifecycle
intelligent and automated transformation of production lines by introducing advanced information technologies and reorganization management
and digital production equipment. of production
procedures
Process system Color-match
construction management
for production
Build digital factories with reliable quality optimal costs and efficient production
Transparent Quality tracing
Process Automation System Equipment production and closed-loop
reorganization solutions integration interconnection procedures management
Industrial Packaging
automation Supporting automation Test automation automation Logistics automation Case Put the digital factory into production and optimize the management procedures
Human- One-click generation Density/X-ray Automatic Automatic warehousing
machine of color formula fluorescence unpacking of incoming materials
separation Automatic Test automation Automatic Warehousing In August 2023 Shanghai Kingfa Phase II digital
Automatic preparation of color LIMS integration bagging automation
unpacking masterbatches
Automatic execution of Automatic Automatic material
factory was officially put into production which
and feeding Automatic material test plan palletizing requisition not only marked the further improvement of the
Automatic preparation Automatic Automatic AGV delivery
preparation Company's production capacity but also was a Automatic inkjet plastic sealing
and mixing marking of bags Automatic milestone in the Group's digital transformation.Automatic labeling
metering Starting from the digital factory the Company
improves its production efficiency optimizes its
management processes and providescustomers
Products Equipment Processes Workstation with higher-quality products and services using
Performance stability Improvement of Pain points in quality and Design of line plans advanced technologies.Non-standard equipment stability efficiency Standard operations
customized color match Expedient equipment Breakthroughs in industry Lean improvement
Flexible production operation Breakthroughs in technical Shanghai Phase II Digital Factory Formally Put into ProductionMinimization of line-side
More integrated innovationsbenchmarking inventoriesof workstations
equipment
Master Planning and Design of Digital Factories
130131
数字化工厂总体规划与设计
One goal Four strategies Five dimensions Four foundations2023
Environmental Social and Governance Report Responsibility for Governance
Intellectual Property Protection
The Company has formulated management systems for intellectual property protection including the Intellectual Intellectual property training was performed to share the experience about the
Property Management Manual and the Procedural Documents for Intellectual Property and established corporate Case transformation of achievements
standards such as the Intellectual Property Management Regulations. By establishing definite intellectual property
management systems the Company has obtained the intellectual property management system certification and
been evaluated as a National Advantageous Intellectual Property Enterprise. We have built an intellectual property In April 2023 the training with the theme of
office and department to clarify the responsibilities of our management representatives intellectual property "transformation of technological achievements
authorities and other relevant departments and appropriately allocate relevant resources. We have established and and innovation of industry-academia-research
maintained an intellectual property management system and conduct management reviews every year. integration" hosted by the Guangzhou Intellectual
Property Protection Center was performed in the
As of the end of the reporting period Company. About 30 people from the Company
and related stakeholders participated in this event
the Company had applied including utility models design patents providing experience and making suggestions
for a total of
6036439476135
for the intellectual property representatives of
technology-based enterprises to transform their
domestic invention patents technological achievements and conduct industry-
and foreign patents It took the lead academia-research cooperation. Intellectual Property Training
PCT patents and among domestic
manufacturers in the
552 294 foreign patents quantity of different
patents obtained.Case Training on patent mining was conducted to enhance the Company's competitiveness
During the reporting period the Company filed 602 applications From April to May 2023 the Company organized several patent training sessions for technical
R&D personnel process equipment and product R&D personnel in order to help the employees
for domestic patents including 436 invention patents and comprehensively improve their professional capabilities for patent mining and management.Through the training sessions the Company improved the employees' understanding of the cutting-
93 edge technologies obtained powerful support for its innovations enabled the employees to better PCT applications. understand the patent systems and strategies for intellectual property protection cultivated their
innovative thinking and competition awareness and enhanced its own competitiveness.Intellectual Property Management National Advantageous
System Certification Intellectual Property Enterprise
1321332023
Environmental Social and Governance Report Appendix
GRI content index
GRI STANDARD DISCLOSURE LOCATION GRI STANDARD DISCLOSURE LOCATION
Statement of use Kingfa Sci. & Tech. Co. Ltd. has reported the information cited in this GRI content index for the 3-1 Process to determine material topics Identification of Material Issuesperiod from January 1 2023 to December 31 2023 with reference to the GRI Standards. GRI 3: Material
Topics 2021 3-2 List of material topics Identification of Material Issues
GRI 1 used GRI 1: Foundation 2021
3-3 Management of material topics Identification of Material Issues
2-1 Organizational details Company Profile
201-2 Financial implications and other risks and
2-2 Entities included in the organization's sustainability Addressing Climate Changes
About This Report opportunities due to climate change
reporting GRI 201: Economic 201-3 Defined benefit plan obligations and other
Performance 2016 Employees' Rights and Interests2-3 Reporting period frequency and contact point About This Report retirement plans
201-4 Financial assistance received from government See the annual report
2-4 Restatements of information About This Report
GRI 203: Indirect Social Development and Public 203-1 Infrastructure investments and services supported
2-6 Activities value chain and other business relationships Company Profile Welfare
Economic Impacts
Equality Inclusion and Diversity; Social Development and Public
2-7 Employees 2016 203-2 Significant indirect economic impacts
List of Key Performance Indicators Welfare
205-1 Operations assessed for risks related to corruption Business Ethics
ESG Management System;
2-9 Governance structure and composition
Operations of Three Boards GRI 205: Anti- 205-2 Communication and training about anti-corruption Business Ethics
corruption 2016 policies and procedures
2-10 Nomination and selection of the highest governance body Operations of Three Boards
205-3 Confirmed incidents of corruption and actions taken Business Ethics
2-11 Chair of the highest governance body Operations of Three Boards
GRI 206: Anti-
2-12 Role of the highest governance body in overseeing ESG Management System;
the management of impacts Operations of Three Boards competitive
206-1 Legal actions for anti-competitive behavior anti-
No related lawsuit in the Company
trust and monopoly practices
Behavior 2016
2-13 Delegation of responsibility for managing impacts ESG Management System
GRI 2: General 207-1 Approach to tax See the annual report2-14 Role of the highest governance body in sustainability
Disclosures 2021 ESG Management Systemreporting GRI 207: Tax 2019 207-2 Tax governance control and risk management See the annual report
2-16 Communication of critical concerns Stakeholder Communication 207-3 Stakeholder engagement and management of See the annual report
concerns related to tax
2-19 Remuneration policies Operations of Three Boards
301-3 Reclaimed products and their packaging materials Resource Conservation
2-20 Process to determine remuneration See the annual report
302-1 Energy consumption within the organization Energy Management
2-22 Statement on sustainable development strategy To Stakeholders GRI 301: Materials 302-3 Energy intensity Energy Management
2-23 Policy commitments Equality Inclusion and Diversity 2016
302-4 Reduction of energy consumption Energy Management
Contributions to UN Sustainable
2-24 Embedding policy commitments
Development Goals 302-5 Reductions in energy requirements of products and Energy Management
services
2-25 Processes to remediate negative impacts Employees' Rights and Interests
303-1 Interactions with water as a shared resource Resource Conservation
2-26 Mechanisms for seeking advice and raising concerns Business Ethics
303-2 Management of water discharge-related impacts Waste Management
2-27 Compliance with laws and regulations No violation in the Company
GRI 303: Water and
Main Participatory Domestic 303-3 Water withdrawal List of Key Performance Indicators
2-28 Membership associations Effluents 2018
Associations and Organizations 303-4 Water discharge List of Key Performance Indicators
2-29 Approach to stakeholder engagement Identification of Material Issues Resource Conservation; List of Key 303-5 Water consumption
Performance Indicators
1341352023
Environmental Social and Governance Report Appendix
GRI STANDARD DISCLOSURE LOCATION GRI STANDARD DISCLOSURE LOCATION
305-1 Direct (Scope 1) GHG emissions Addressing Climate Changes Employee Development and
GRI 404: Training 404-1 Average hours of training per year per employee Training
305-2 Energy indirect (Scope 2) GHG emissions Addressing Climate Changes and Education 2016 404-2 Programs for upgrading employee skills and Employee Development and
GRI 305: Emissions transition assistance programs Training305-4 GHG emissions intensity Addressing Climate Changes
2016 Equality Inclusion and Diversity; GRI 405: Diversity 405-1 Diversity of governance bodies and employees
305-5 Reduction of GHG emissions Addressing Climate Changes List of Key Performance Indicators
and Equal
305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and 406-1 Incidents of discrimination and corrective actions
List of Key Performance Indicators Opportunity 2016 Equality Inclusion and Diversity
other significant air emissions taken
306-1 Waste generation and significant waste-related
Waste Management GRI 407: Freedom
impacts of Association 407-1 Operations and suppliers in which the right to
GRI 306: Waste 306-2 Management of significant waste-related impacts Waste Management freedom of association and collective bargaining may be Employees' Rights and Interestsand Collective at risk
2020 306-3 Waste generated List of Key Performance Indicators Bargaining 2016
306-4 Waste diverted from disposal Waste Management GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for Equality Inclusion and Diversity
2016 incidents of child labor
GRI 308: Supplier 308-1 New suppliers that were screened using List of Key Performance Indicators
environmental criteria GRI 409: Forced or
Environmental
308-2 Negative environmental impacts in the supply Sustainable Supply Chain; List of Compulsory Labor 409-1 Operations and suppliers at significant risk for Equality Inclusion and Diversity
Assessment 2016 chain and actions taken Key Performance Indicators incidents of forced or compulsory labor2016
401-1 New employee hires and employee turnover List of Key Performance Indicators GRI 411: Rights of No event concerning infringement
GRI 401: Indigenous Peoples 411-1 Incidents of violations involving rights of 401-2 Benefits provided to full-time employees that are upon the indigenous people's indigenous peoples
Employment 2016 Employees' Rights and Interestsnot provided to temporary or part-time employees 2016 rights
401-3 Parental leave Employees' Rights and Interests GRI 413: Local 413-1 Operations with local community engagement impact Social Development and Public
403-1 Occupational health and safety management Communities 2016 assessments and development programs Welfare
Occupational Health and Safety
system
GRI 414: Supplier 414-1 New suppliers that were screened using social Sustainable Supply Chain; List of
403-2 Hazard identification risk assessment and criteria Key Performance Indicators
Occupational Health and Safety Social Assessment
incident investigation 414-2 Negative social impacts in the supply chain and
2016 Sustainable Supply Chainactions taken
403-3 Occupational health services Occupational Health and Safety 416-1 Assessment of the health and safety impacts of Product Quality and Safety; List of
GRI 416: Customer product and service categories Key Performance Indicators
403-5 Worker training on occupational health and safety Occupational Health and Safety Health and Safety
416-2 Incidents of non-compliance concerning the
GRI 403: 2016 Product Quality and Safety
Occupational Health 403-6 Promotion of worker health Occupational Health and Safety
health and safety impacts of products and services
417-1 Requirements for product and service information
and Safety 2018 403-7 Prevention and mitigation of occupational Customer Servicesand labeling
health and safety impacts directly linked by business Occupational Health and Safety
relationships GRI 417: Marketing 417-2 Incidents of non-compliance concerning product Customer Services
and Labeling 2016 and service information and labeling
403-8 Workers covered by an occupational health and
Occupational Health and Safety 417-3 Incidents of non-compliance concerning marketing
safety management system Customer Servicescommunications
403-9 Work-related injuries Occupational Health and Safety GRI 418: Customer 418-1 Substantiated complaints concerning breaches of No related complaint in the
403-10 Work-related ill health Occupational Health and Safety Privacy 2016 customer privacy and losses of customer data Company
1361372023
Environmental Social and Governance Report Appendix
List of Key Performance Indicators
Indicators Unit 2021 2022 2023 Indicators Unit 2021 2022 2023
Environmental Total investment in
protection input environmental protection CNY10000 5510.87 5640.23 6689.70 Total waste gas emissions3 m3 15167781315 12115581982 21795515009
Direct energy consumption Tons of standard coal 331099.35 222972.54 618559.85
Recovery rate of waste gases % 8.03 10.52 26.26
Natural gas3 Nominal cubic meter 45420273.21 17958913 122408572
Diesel Ton 393 268 284 Particles Ton 32.234336 193.155492 753.820625
Coal water slurry Ton 432334 314168 424676 Emissions of
gaseous pollutants Non-methane hydrocarbon Ton 310.468 257.075 127.673
Propane3 Ton 0 0 444958
Nitrogen oxides Ton 124.825745 216.483935 106.111583
Indirect energy consumption Tons of standard coal 373742.97 315849.68 590678.64
Sulfur oxide Ton 33.9 50.833 53.434989
Energy consumption Purchased electricity
3 '0000 kWh 77610 73306 199721
Medium-pressure steam Ton 2257989.163 1641952.217 2787760.571 VOC emissions Ton 309.76 721.23 1446.83
Low-pressure steam Ton 250039.67 427803.00 325068.7263 Total wastewater discharge 3 Ton 528164.0 1463014.4 5434078.1
PV power generation (self-
generation for self-use)1 '0000 kWh / 1137 1 334 Recovery rate of wastewater % 11.54 4.05 8.54
Total energy consumption2 Tons of standard coal 704842.25 540220.24 1210877.98 Chemical oxygen demand
(COD) Ton 29.662 82.933 238.711
Intensity of energy ton standard coal/RMB '0000 0.18 0.13 0.25 Emissions of water consumption operating revenue pollutants
Five-day bod (BOD5) Ton 11.036 14.795 45.819
Purchased municipal water Ton 5359027 3870989 10627435 Suspended matter Ton 12.202 13.322 34.577
Consumption of Desalted water Ton 0 0 2452794 Ammonia nitrogen Ton 0.522 2.043 6.055water resources
Groundwater Ton 0 0 2356 Total phosphorus Ton 0.185 0.584 1.822
1.In 2021 the Company deployed photovoltaic modules by which power was generated for self-use but the PV power 3.From August 2022 Liaoning Kingfa started trial production and pollutant discharge so material changes occurred to propane
generation was not systematically analyzed. consumption purchased electricity emission and other indicators.
2.The PV power generation was included in the total energy consumption.
1381392023
Environmental Social and Governance Report Appendix
Indicators Unit 2021 2022 2023 Indicators Unit 2021 2022 2023
Total waste emissions Ton 13691.3 20803.53 20873.35 Male Person 6689 8221 8541
Female Person 1847 2129 2088
Recovery rate of wastes % 22.97 25.68 33.89
51 and above Person 564 756 892
Waste emissions4 Emissions of hazardous wastes Ton 2026.2 3360.6 8848.17
41~50 Person 1819 2055 2124
Emissions of non-hazardous
wastes Ton 11665.1 17442.93 12025.14 31~40 Person 3565 4036 4034
Emissions of high-level wastes Ton 0 0 0 30 and below Person 2588 3503 3579
Customer satisfaction % / / 92.4 Employees working in Person 8166 9973 10217
Customer services Mainland China
Customer complaint handling
rate % 100 100 100 Other countries and regions Person 370 377 412
Total number of suppliers / 3226 6699 8307 Doctor Person 106 124 168
Suppliers of Mainland China / 3102 6430 8009 Master Degree Person 707 895 1136
HK Macao Taiwan and
foreign suppliers / 164 269 298 Employees Undergraduate Person 1483 2536 2849
Percentage of Supplier Code Below the Bachelor's Degree Person 6240 6795 6476
of Conduct signed % 100 100 100
Percentage of suppliers Total number of grassroots Person 4686 4609 5122
Sustainable supply with clauses that include employees% 100 100 100
chain5 environmental and labor
requirements* Total number of employees in Person 113 114 122
middle management
Total number of new suppliers / 490 3433 1608
Total number of employees in
Person 52 52 64
Percentage of new suppliers senior management
that were screened using % 100 100 100
environmental criteria* Scientific research personnel Person 1059 1112 1447
Percentage of new suppliers
that were screened using % 100 100 100
social criteria* Human resources Person 95 92 123
Percentage of our purchasing
specialists passing sustainable % 0 100 100 Financial staff Person 243 278 317
procurement training
Operations management Person 315 325 639
4.The waste emissions excluded waste empty barrels and paint barrels produced by Kingfa Medical as well as the waste
that weight is hard to measure. Information technologies Person 65 79 105
5.The number of suppliers which is indicated in the SRM system launched online excludes the number of suppliers in the
systems not launched and overseas bases. Other Person 6759 8464 8005
6.The indicator marked * only indicates the percentage of suppliers of raw materials made in China.
1401412023
Environmental Social and Governance Report Appendix
Main Participatory Domestic Associations
and Organizations
Indicators Unit 2021 2022 2023 Unit Associations/organizations Position Held
Total rate of new employees % 21 18 23 China National Light Industry Council Vice chairman units
Employment
Total turnover rate % 18 14 19 China Plastic Processing Industry Association Vice chairman units
Total number of trained Person 7413 8685 10658 Plastic Carbon Neutrality Working Group of the National Director and member employees Technical Standardization Committee on Plastics units
Classification by gender: trained Person 6013 6987 8565 Technical Subcommittee on Modified Plastics of the National Director and member male employees Technical Standardization Committee on Plastics units
Classification by gender: trained
female employees Person 1400 1698 2093 China Synthetic Resin Association
Standing council
member units
Classification by type: trained
grassroots employees Person 6401 7642 9546 ABS Branch of China Synthetic Resin Association Member Unit
Classification by type:
trained employees in middle Person 827 854 923
management The Company China Association of Automobile Manufacturers Vice chairman units
Classification by type: trained
employees in senior management Person 185 189 189 China Household Electrical Appliances Association Member Unit
Employee
training Total training hours of employees h 206303.79 257857.65 440232.29 China Packaging Federation Vice chairman units
Average training hours per
employee h 27.83 29.69 41.3 Society of Competitive Intelligence of China Ordinary member units
Classification by gender: total
training hours of male employees h 166079.06 211775.97 340458.75 China Electronics Standardization Institute (National Technical Director and member
Classification by gender: Standardization Committee on National All-or-nothing Relays) units
total training hours of female h 40224.73 46081.68 99773.54
employees Working Group on Standards for Pollution Prevention and Control
Classification by type: total of Electrical and Electronic Products Ministry of Industry and
Member units with full
training hours of grassroots h 125015.94 173064.13 345720.65 Information Technology authorities
employees
Classification by type: total China Association for Public Companies Council Member
training hours of employees in h 63596.3 66313.1 75316.8
middle management
Classification by type: total Professional Committee on Recycling of Plastics China Plastic
training hours of employees in h 17691.55 18480.42 19194.84 Processing Industry Association Director units
senior management
Amount of investment in social CNY10000 1486.1 1166.85 635.16 Recycled PCR Self-discipline Organization Initiatorspublic welfare Kingfa
Environmental
Social welfare Number of participants in Person-times 147 199 181 Green Recycle Plastic Supply Chain Group (GRPG) Initiatorsemployee volunteer activities
Average time spent on employee h 29 56.21 27.3 Sustainability Working Group on Food Contact Materials Member unitsvolunteer activities
1421432023
Environmental Social and Governance Report Appendix
Overview of Certificates
Specialty
The Shanghai Jiangsu Wuhan Tianjin Chengdu Kingfa Jiangsu Qingyuan Engineering Zhuhai Guangdong Guangdong Ningbo Liaoning Kingfa Kingfa Factory of Factory of
Factory
System certification of Kingfa Company Kingfa Kingfa Kingfa Kingfa Kingfa Environ- Kingfa Base Plastics Kingfa System certification Kingfa Kingfa Kingfa Kingfa (USA) (Europe) Kingfa (India) Kingfa (India) mental Recycling Company Composites in Chakan in Pondi
(India) in
Manesar
ISO 9001 ? ? ? ? ? ? ? ? ? ? ISO 9001 ? ? ? ? ? ? ? ? ?
IATF 16949 ? ? ? ? ? ? ? IATF 16949 ? ? ? ? ? ?
Quality ISO 13485 Quality ISO 13485 ? ?
MDSAP MDSAP ?
5GONOGO ?
5GONOGO ? ?
Environment ISO 14001 ? ? ? ? ? ? ? ? ?
Environment ISO 14001 ? ? ? ? ?
Occupational
health and ISO 45001 ? ? ? ? ? ? ? ? ? Occupational
safety health and ISO 45001 ? ? ? ?
Hazardous safety
QC08000 ? ? ?
substances Hazardous QC08000
substances
Laboratory ISO/IEC 17025 ? ?
Laboratory ISO/IEC 17025 ?
Sustainability GRS ? ? ? ? ?
Sustainability GRS ?
CSR(SA80000/
Social
RBA/SMETA/ ? ? ? ?
responsibilities Social CSR(SA80000/RBA/
IWAY) ? ?responsibilities SMETA/IWAY)
Measurement ISO 10012 ? Measurement ISO 10012
Intellectual
GB/T 29490 ? ? ? ? Intellectual
property GB/T 29490
property
Brand
GB/T 27925 ? Brand
certification GB/T 27925
certification
Energies ISO 50001 ? ?
Energies ISO 50001
GB/T23001
Integration of GB/T23001
informatization Integration of
and ? informatization and
industrialization industrialization
management management
Other systems systemsOther
AEO ? ? AEO ? ?
BRC (packaging BRC (packaging
?
materials) materials)
ISO 28000 ? ISO 28000 ? ?
1441452023
Environmental Social and Governance Report
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Thank you for reading the "2023 Environmental Social and Corporate Governance (ESG) Report of the Company".To provide you and other stakeholders with more professional and valuable corporate ESG information please
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Very good Relatively good Medium Relatively poor Very poor The information contained in this Report does not constitute any investment advice. Investors should not use
such information in place their independent judgment or make decisions based solely on such information
7. What do you think of the Company's overall performance in the governance issues and the Company will not assume any responsibility for any losses which are or might be caused by the use of
the information in this Report. The information published by the Company is true and accurate. In case of any
Very good Relatively good Medium Relatively poor Very poor inconsistency with a statutory disclosure document the latter shall prevail.If this Report constitutes a forward-looking statement it shall not be binding upon our future actions. The Company
Open-ended Question: neither bears an obligation nor undertakes to revise the forward-looking statement (if any) contained herein.What opinions and suggestions do you have regarding the Company's ESG work The copyright and right to final interpretation shall be owned by the Company.
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