LET THE WORLD FEEL THE POWER OF CARBON FIBERContents
Introduction 03 01 03 Sustainable development 97KPIs
Chairman's Statement 05 Environmental KPIs 97
About us 07 Social KPIs 99
Governance 19 Social 53
Deepening Comprehensive 21 Strictly Ensuring Product Quality 55 Perspective 103
Sustainable Development 09 Corporate Governance Commitment to Technological 60
Column Continuing to Plough Through 26 Innovation
Integrity Building
Sustainable Development Strategy 11 Smooth Communication with 29 Steadfastly Advancing Intelligent 67
Stakeholders Development Appendix 105
2024 Sustainable Development 13
Management Performance Implementing Intrinsic Safety 68 Index table of indicators 105
Sustainability Management 15 02 Fully Safeguarding Employee 79 Feedback 111Framework Rights
Honors and Awards in 16 Comprehensively Promoting 85
Sustainability Talent Development
Analysis and Evaluation of 17 Environment 31 Deepening Corporate 91
Sustainable Development Responsibility Operations
Materiality Issues Accelerating the Transition to 35
Low-Carbon Production Dedicated to Creating Social 95
Value
Continuing to Promote 38
Environmentally Friendly
Production
Accelerating the Construction of 43
a Circular System
Driving Green and Lightweight 46
Development
Proactively Addressing Climate 48
Change
01 02Introduction Information description
The historical information quoted in this report is final statistics. In case of any inconsistency between the financial
information and the annual report the annual report shall prevail. Unless otherwise specified the financial figures in
The report describes the performance of Zhongfu Shenying Carbon Fiber Co.Ltd. (hereinafter “Zhongfu Shenying” this report are denominated in RMB.“the Company” “Headquarters”or "We") in environmental social and governance (ESG) and social responsibility
fulfilment in 2024 to facilitate communication with stakeholders and respond to their demands. The Board of Directors
of Zhongfu Shenying is fully responsible for the Company's sustainable development and the report has been
reviewed and approved by the Board of Directors. Terms and definitions
During the Reporting Period the following terms shall have the definitions stated below unless otherwise indicated:
Reporting period
"China" The People's Republic of China
Unless otherwise specified this report covers the period from 1 January 2024 to 31 December 2024 (hereinafter "the "CNMB" China National Building Material Group Company Limited.Reporting Period" or "this year")."Shenying Dapu" Zhongfu Shenying Carbon Fiber Company Limited Dapu Branch
Reporting scope "Shenying Xining" Zhongfu Shenying Carbon Fiber Xining Company Limited."Shenying Shanghai" Zhongfu Shenying (Shanghai) Technology Company Limited.The entity of this report is of Zhongfu Shenying Carbon Fiber Co.Ltd. The report mainly covers ESG performance "Shenying Lianyungang" Zhongfu Shenying Carbon Fiber Lianyungang Company Limited.related to the Company's core business as well as related policies and management during the Reporting Period.Reporting cycle Report access
The Environmental Social and Governance (ESG) Report of Zhongfu Shenying Carbon Fiber Co.Ltd.. is published on an The download links for the electronic version are listed below：
annual basis. Shanghai Stock Exchange：www.sse.com.cn
Zhongfu Shenying Carbon Fiber Co. Ltd. Official Website：https://www.zfsycf.com.cn/#/
Preparation basis
Feedback
This report is prepared in accordance with the Shanghai Stock Exchange Guidelines No. 14 for Self-discipline
Regulation of Listed Companies -Sustainability Report (Trial)1 and the SASAC's Study on ESG Special Report
Compilation for Listed Companies Controlled by Central Enterprises. It also refers to the Sustainability Reporting The Company attaches great importance to the suggestions or opinions put forward by various stakeholders if you
Standards (2022) released by the Global Reporting Initiative (GRI) the Guidance on Social Responsibility by the have any suggestions or comments on the Company's ESG related work please contact the Company through the
International Organisation for Standardisation (ISO 26000: 2010) the National Standard GB/T36000 Guidance on Social following:
Responsibility and the United Nations' Sustainable Development Goals (SDGs). The results of the materiality Zhongfu Shenying Carbon Fiber Co.Ltd
assessment conducted in accordance with the reporting principles in the above guidance and standards are also
considered as the basis for information disclosure. This report is published in both Chinese and English. In case of any Address: No.1-6 Jinqiao Road Dapu Industrial Zone Economic Development Zone Lianyungang City Jiangsu Province
inconsistency between the two versions the Chinese version shall prevail. Email address：stock@zfsycf.com.cn
Official Website：www.zfsycf.com.cn
The questionnaire for feedback is attached in this report on page 111 we welcome you to fill in the questionnaire and
send it to our email address.
1. During the year the Company actively responded to the latest ESG information disclosure requirements of the Shanghai Stock Exchange and will
continue to improve the quality of information disclosure as required.
0304中复神鹰
Chairman's Statement Dedicated to Excellence Enhancing Life Experiences Through Lean Manufacturing
In 2024 we adhered to expanding increments optimizing stock managing variables and strengthening quality
striving to build a high ground for high-quality development achieving a 40% increase in production efficiency and a
Embrace Renewal March Toward further 1.35 percentage point improvement in customer satisfaction. With "Eagle inside" our products were
successfully applied to the world's first commercial carbon fiber subway train the Carbon Star Express and carbon-
the Bright Future ceramic products were used in high-end mass-produced best-selling models by leading automakers. We actively
planned for the low-altitude economy assisting XPeng Huitian's "X3 Land Aircraft Carrier" in its global debut at the 15th
China International Aviation and Aerospace Exhibition. Beyond eVTOL our products were also applied in the 3C
The stars do not forsake those who chase their dreams and consumer electronics field including foldable smartphones and laptops making positive contributions to lightweight
rivers favor those who row with determination. The year 2024 is miniaturization and flexibility. Assisting people in their pursuit of a better life has always been our unwavering belief.one filled with both challenges and opportunities as well as a
year of continued in-depth development in the field of carbon Open Inclusive and Striving Supporting Employees' Dreams Through Growth Ladders
fiber. Facing a complex and ever-changing market environment In 2024 the people of Shenying walked through the seasons together experiencing both storms and rainbows with
the people of Shenying have pursued their dreams of the vast countless moments captured in this extraordinary year. We firmly rooted our "strong foundation and soul" using party
cosmos with unwavering focus bold innovation courage to take building to guide corporate governance improving modern corporate governance mechanisms adhering to
on challenges and a spirit of teamwork injecting powerful sustainable development concepts and establishing a Strategic Investment and ESG Committee actively exploring the
momentum into the Company's growth. unity of economic environmental and social responsibilities. We adhered to a people-oriented approach with women
accounting for 44% of the board of directors. Researchers drove high-level technological self-reliance and self-
strengthening with the Shenying Xining "China Strength" core technology research youth collective winning the China
Youth May Fourth Medal and Chen Qiufei's team receiving the "China Youth Science and Technology Award." We
Caring for the Blue Planet Practicing Green and Low-Carbon Harmony Between Humans and Nature upheld social responsibility with the sales team leveraging professional expertise and sincere service to successfully
open new markets and ensure all suppliers signed anti-corruption cooperation agreements. Employees on the
In 2024 we firmly grasped the waves of digitalization intelligence and green technology revolutions accelerating the production line strictly controlled every production process to ensure stable and reliable product quality. We led the
application of carbon fiber in new energy fields such as wind solar and hydrogen. Our carbon fiber products have establishment of the Jiangsu Province Carbon Fiber Industry Model Worker (Craftsman) Innovation Studio Alliance
been successfully applied to the world's longest 147-meter offshore wind turbine blades and 131-meter onshore wind with Shenying Xining winning the Qinghai Province Model Worker Collective and the Qinghai Plateau "Worker Pioneer"
turbine blades adding a touch of green technology to the majestic landscapes and beautiful coastlines of our titles. Guided by the philosophy of "moving forward together creating the future" we organized 1711 training sessions
homeland. We have fully utilized green energy answering the "must-answer question" of energy conservation and throughout the year totaling around 55000 participants. We conducted the "Shenying Education Assistance Program"
carbon reduction. The proportion of new energy in our electricity consumption exceeded 70% with a 4% reduction in for four consecutive years organizing the "Children Building Technology Dreams" resource utilization day open
comprehensive energy consumption per unit of main products and a 4.4% decrease in carbon dioxide emission activities inviting university students and social groups to visit the Zhongfu Shenying high-end production base and
intensity. At Shenying Xining hazardous waste generation per unit of product decreased by 21%. We focused on source establishing a carbon fiber postdoctoral research workstation on the snowy plateau of Qinghai.reduction recycling and end-of-pipe treatment actively building a new industrial ecosystem of "industrial chain
recycling + resource recycling" with every step reflecting our firm commitment to low-carbon environmental We extend our sincere gratitude to all colleagues and their families who have walked alongside the Company as well
protection. as friends from all walks of life who have consistently supported the development of Zhongfu Shenying. In the new
year we will steadfastly adhere to the strategic positioning of "green high-end international and large-scale" remain
Caring for the Nation's Great Causes Highlighting the "Name Card" of a Strong Technology Nation through customer-centric and drive forward with technological innovation and precise management. We will continue to
High-Level Innovation undertake major frontier technology research tasks excellence performance quality improvement activities and cost-
Carbon fiber is a typical representative of the material revolution. China National Building Materials Group with the saving plans building a world-class carbon fiber enterprise with outstanding performance refined management top-
nation's great causes at heart is dedicated to creating "national materials" promoting the industrialization of carbon tier environmental standards renowned branding advanced simplicity and safety and stability.fiber and forming a tiered composite material industrial system to help build a "strong material nation." With Shenying Let the World Feel the Power of Carbon Fiber!
spreading its wings we keep in mind the "four orientations" fully driving high-level technological self-reliance and self-
strengthening and accelerating the implementation of China National Building Materials' composite material
industrial layout. We were honored to be listed on the "2024 Patent-Intensive Products" list achieving full-series
coverage of T700-T1100 and M30-60 high-performance carbon fibers along the eastern coast and a leap from
thousand-ton to ten-thousand-ton production capacity of "black gold" on the snowy plateau. We globally launched the
M50X high-strength high-modulus carbon fiber product setting new performance benchmarks for the next generation
of carbon fibers. We overcame technical challenges such as ultra-high-temperature graphitization and N-atom
directional removal achieving batch production capabilities for M65J and M55J high-modulus carbon fibers. T700- Zhongfu Shenying Party Secretary and Chairman Zhang Jian
level products were applied to the world's largest solid-fuel rocket " Gravity-1".
05 06About Us
Brief introduction Corporate culture
Zhongfu Shenying Carbon Fiber Co. Ltd. ( hereinafter referred to as Zhongfu Shenying or Company ) is a national high-
tech enterprise integrating the R&D production and sales of carbon fiber and composites. With two production bases
located at Lianyungang and Xining and one R&D base in Shanghai the production capacity of Zhongfu Shenying ranks
first in China. The Company was successfully listed at the Shanghai Stock Exchange on April 6th 2022 (Stock Short
Name: Zhongfu Shenying Stock Code: 688295).The Company has always adhered to the core values of "Innovation Integration Strive and Responsibility" and the
corporate mission of "Let the world feel the power of carbon fiber" with the vision of building a world-class carbon Enterprise mission Core value Strategic positioning
fiber enterprise with global competitiveness. In the future the Company will focus on the research and development of Let the world feel the power of Innovation Integration Green High-end
the new generation of high-performance carbon fiber with high-strength and high-modulus accelerate the carbon fiber. Strive and Responsibility International Large-scale
construction of aviation-level prepreg projects to extend the industrial chain and pay more attention to the automated
and digital production equipment to further improvement of production efficiency and expansion of the large-scale
production achieving energy-saving and green sustainable development to enhance core competitiveness.Currently the Company's products cover various types of carbon fiber varieties including high-strength high-strength
medium modulus and high-strength high modulus types. They are widely used in high-end and green areas such as
aerospace carbon/carbon composites pressure vessels wind turbine blades and new energy vehicles as well as
infrastructure and daily life areas such as rail transit architectural bridges sports and leisure and electronic 3C. This Enterprise vision Operating Mission
has greatly promoted the development breadth of the domestic carbon fiber composite materials industry. We are committed to building a Uphold our original aspirations and craftsmanship to pursue
Zhongfu Shenying has fully mastered the independent production capacity of 10000 tons of high-performance carbon world-class carbon fiber with global excellence in quality.fibers throughout the entire process. It has taken the lead in achieving breakthroughs in key technologies and competitiveness. Lead advancements in science and technology and
independent production of core equipment for dry-jet wet spinning in China steadily upgrading its products and courageously undertake national responsibilities.systematically mastering the comprehensive production of 48K large tows T800 prepregs and T1100 grade carbon
fiber products. In January 2018 Zhongfu Shenying was awarded the First Prize for National Scientific and
Technological Progress in 2017 as the primary completing unit. At the end of 2021 the Company's Xining 10000-ton
carbon fiber project was selected as one of the top ten megaprojects of centrally-administered state-owned
enterprises. In 2024 the Company was honored with the "Top 50 New Quality Productivity Companies at the 18th
China Listed Companies Value Awards" and received an A-grade evaluation for its information disclosure work from the
Shanghai Stock Exchange.
07 08Sustainable Development Column Governance Environment Social
Sustainable Development
Column
Sustainable Development Strategy
2024 Sustainable Development
Management Performance
Sustainability Management
Framework
Honors and Awards in Sustainability
Analysis and Evaluation of
Sustainable Development Materiality
Issues
2024 is a crucial year for achieving the objectives of the "14th Five-Year Plan"
and a key stage for Shenying to deepen the implementation of its "green
high-end international and large-scale" strategy. We are striving to break
through challenges focusing intensively on organizational resilience product
innovation market expansion and risk management. By continuously
enhancing the overall operational efficiency of the enterprise we are
committed to building sustainable competitive advantages stabilizing the
core of our business and advancing the localization of carbon fiber. We are
accelerating the construction of an innovation-driven green low-carbon and
high-efficiency carbon fiber industrial system.
09 10Sustainable Development Column Governance Environment Social
Sustainable Development Strategy With technological innovation as the core market demand as the guide and
quality upgrade as the goal we will strengthen the presence of green attributes
One Core in products along the development of the value chain and strive to promote
high-quality and low-carbon development in society.Zhongfu Shenying continues to drive the green and high-quality development of the Company. Centered on its
overarching strategic positioning of "green high-end international and large-scale" the Company has established
three guiding principles: advancing product and market high-end development through conceptual innovation
enhancing production capacity and talent team scalability through management innovation and accelerating green
production and operations through technological innovation. This has formed a sustainable development strategic Five Pillars
system characterized by "one core and five pillars." This year the Company vigorously promoted the implementation
and practical application of Zhongfu Shenying's sustainable development strategy effectively advancing its high-
quality development. 01 Technology Promoting Green Production
The Company will improve resource utilization efficiency and reduce pollutant emission levels through
technological upgrades. Besides the Company will adjust its energy structure utilizing clean energy
technologies to implement clean production and reduce the carbon footprint of our products demonstrating
corporate responsibility in supporting the national "Carbon Peaking and Carbon Neutrality" strategy and
responding to global climate change.
02 Innovation Driving Circular Economy
Fully integrating the idea of circular economy the Company will accelerate the improvement of resource
recycling efficiency and cascade utilization of energy aiming to build "zero-emission" factories to boost the
development of circular economy in the industry thereby enabling green and high-quality development.
03 Quality Penetrating High-End Markets
Combining market development needs the Company has been building a solid research and development
foundation to pursue high-quality products and services. Additionally the Company actively respond to
concerns about the Company's sustainable development performance in domestic and overseas markets to
explore new high-end markets.
04 Talents Building Excellent Teams
The Company will safeguard employees' rights and interests ensure their health and safety and provide them
with a reassuring work environment to enhance their sense of happiness and belonging. The Company has
designed career paths that meet employees' needs and promote employee care to attract cultivate and
retain high-quality employees.
05 Governance Fostering Sustainable Operations
The Company will continuously fortify our responsible corporate image by enhancing the capacity and
awareness of our partners in sustainable development and promoting coordinated development in its
operational areas laying a solid foundation for the Company's sustainable development.
11 12Sustainable Development Column Governance Environment Social
2024 Sustainable Development Management Performance
Sustainable Development
Strategy Pillar Core Initiatives 2024 Key Performance and Highlights
Alignment with UN Sustainable
Development Goals (SDGs)
* Environmental protection investment reached 27.34 million yuan;
* The proportion of wind solar and hydropower consumption at the Xining facility
In line with the group's strategy the Company formulated the "Carbon Peak and Carbon reached 70%;
Neutrality Work Implementation Plan" and established carbon reduction targets fully driving
Technology Promoting Green the transformation of low-carbon production technologies to reduce energy consumption;
* Shenying Dapu’s total exhaust emissions (VOCs) decreased by 21.10%
Production continuously increasing the proportion of clean energy usage such as wind solar and
compared to 2023 with total exhaust emissions (VOCs) per unit product reduced
hydropower; practicing natural ecological protection strictly implementing environmental by 4.30%;
management and improving environmental protection levels in production operations * Shenying Xining advanced waste reduction achieving a 25.90% year-on-year
through process improvements. decrease in hazardous waste generation a 15.60% year-on-year decrease in
general industrial solid waste generation a 20.79% reduction in hazardous waste
per unit product and a 9.78% reduction in solid waste per unit product.* Shenying Dapu collaborated with qualified third parties for waste recycling with
The Company continues to advance the "dual-cycle" development model of "industrial chain nearly 15% of waste used for biomass power generation;
recycling + resource recycling" efficiently promoting the tiered utilization of energy and water
Innovation Driving Circular resources and enhancing the efficiency of waste resource utilization; empowering the * Through independent equipment upgrades waste heat recovery utilization
Economy lightweight and high-efficiency development of downstream products accelerating the exceeded 70% reducing greenhouse gas emissions by approximately 50000 tons
application of carbon fiber in multiple fields and scenarios; actively researching high-quality of CO2 annually;
and efficient recycling system technologies to promote circular development. * Supplied over 8000 tons of carbon fiber materials to the new energy public
transportation and low-altitude aviation industries throughout the year.Upholding the "zero-defect" quality management philosophy the Company continues to * Conducted 105 quality-related training sessions throughout the year with a total
explore a quality management system with Zhongfu Shenying's unique characteristics participation of 4027 person-times;
Quality Penetrating High-End comprehensively improving employee quality awareness; building high-quality R&D teams pursuing the parallel development of technical depth and breadth and continuously driving * Filed 1 international patent application through the PCT system with 269 new Markets the high-end application of products; practicing responsible marketing fully building patents accepted and 107 patents authorized for the year;
mutually beneficial and trustworthy partnerships and collaborating with partners to create a * Achieved the management goal of maintaining customer satisfaction at or above
sustainable operating environment. 95 points for two consecutive years.Adhering to a "people-oriented" approach the Company fosters a fair just diverse and
inclusive work environment comprehensively promoting talent development; empowering * Annual safety production investment reached 17.97 million yuan a decrease
Talents Building Excellent intrinsic safety through technological applications continuously deepening the construction compared to 2023;
Teams of the safety production management system and insisting on managing and preventing * A total of 45675 person-times participated in safety training throughout the year;
production safety from the source; effectively safeguarding employee rights and benefits * Training hours per capita reached 110.20 hours.continuously enhancing employee happiness and sense of belonging.Promote the modernization of governance systems and capabilities systematically advance
institutional and mechanism innovation; optimize the governance structure of the board of * The proportion of female directors reached approximately 44% an increase of
Governance Fostering directors and supervisory board focusing on diversity in gender and professional 20% compared to 2023;
Sustainable Operations backgrounds to enhance decision-making inclusiveness; emphasize a culture of integrity and * The Company conducted 16 integrity-themed training sessions across all levels;
anti-corruption establish a long-term mechanism for integrity risk prevention and cultivate a * 100% of suppliers signed anti-corruption cooperation agreements.foundation of clean and ethical performance to ensure efficient Company operations.
13 14Sustainable Development Column Governance Environment Social
Sustainability Management Framework Honors and Awards in Sustainability
Zhongfu Shenying actively undertakes corporate social responsibility and places high importance on the synergistic
development of economic and social benefits. To further advance the implementation of the Company's sustainable
development strategy and align with the national strategic deployment of green and high-quality development the
Company has established a top-down ESG governance structure comprising the board of directors the Strategy and
ESG Committee and the ESG Working Group. The Company continues to strengthen the service and support for the
performance of directors supervisors and senior management actively organizing board members to participate in
ESG and sustainable development-themed training including climate change-related topics and promptly ensuring
that the board completes corresponding performance training injecting new momentum into the Company's
sustainable development management.The Company has deepened its ESG management philosophy continuously strengthening the governance layer's 2024 Top 50 New Quality A-Grade Evaluation
capabilities in managing and making decisions on ESG-related matters. In the new board of directors the chairman of Productivity Companies in (Excellent) for Information
Zhongfu Shenying possesses extensive management experience2 in areas such as corporate social responsibility Champion Enterprise in China Highest Disclosure Work by the
production safety and technological innovation all of which are crucial for sustainable development. This provides Manufacturing Excellence Shanghai Stock Exchange
high-level leadership and a solid foundation for integrating ESG with Zhongfu Shenying's business operations thereby
fully constructing a sustainable enterprise. This year Company directors (including non-executive directors)
supervisors and senior executives participated in risk-related training organized by institutions such as the Shanghai
Stock Exchange the Jiangsu Securities Regulatory Bureau and the Jiangsu Listed Companies Association. These
included initial training for directors supervisors and senior executives follow-up training for independent directors
compliance training for financial directors mergers and acquisitions training and a series of training sessions on high-
quality development and regulatory work for listed companies totaling over 100 hours.The Board of Directors serves as the highest governing authority
responsible for ESG affairs and assumes responsibilities of leadership
The Board of Directors and supervision covering the Company's overall ESG objectives Outstanding Innovative The 10th IALTA (China) IALTA Green Demonstration
strategies risks and policies including climate change related matters. Product at the 20th "CCE- Automotive Lightweighting Base for Advanced Composite
JEC" Innovation Product Green Technology Innovation Materials in Automotive
Awards Award for the Year 2024 Lightweighting Applications
The Strategic and ESG Committee is tasked with formulating ESG
The Strategy and ESG objectives and strategies assessing and identifying ESG risks and
Committee driving the establishment of appropriate and effective ESG risk
management and internal control systems.The ESG Work Group is responsible for the implementation and
advancement of specific ESG matters within the Company. This includes
The ESG Working Group compiling annual ESG reports executing ESG strategies and organizing
ESG-related communication and training activities.
2. For details regarding the resume of the Chairman of Zhongfu Shenying please refer to the Zhongfu Shenying’s 2025 Annual Report.
15 16Sustainable Development Column Governance Environment Social
Analysis and Evaluation of Sustainable High
Development Materiality Issues 11
17
To fully understand the key concerns of various stakeholders regarding Zhongfu Shenying's sustainable development 08
the Company systematically conducted the identification and materiality analysis of sustainability-related issues. 10 13
Based on the Company's operational context and the key sustainability focus areas of the industry 02
the Company has identified including 05
17 14material sustainability issues 6 environmental topics 2 governance and compliance topics 04
15
9 social topics 01 16 12
0609
This year through internal surveys external expert discussions and other processes the Company assessed and 07
confirmed that the ranking of material issues showed no significant changes compared to 2023. The board of directors
and the management team reviewed and approved the results of the materiality analysis and provided ESG
management recommendations based on the Company's operational conditions. 03
Low Materiality to the Company High
Environmental issues Social issues Governance and compliance issues
01 Waste management 07 Community contribution 16 Corporate governance
02 Responding to 08 Sustainable supply chain
climate change 17 Business ethics andcompliance
03 Water resources 09 Employee care
management 10 Providing quality services
04 Promoting circular 11 Innovative research and
economy development
05 Reducing pollutant
emissions 12 Safeguarding employee rightsand interests
06 Efficient energy
utilization 13 Pursuing product quality
14 Employee health and safety
15 Support for Employee Development
1718
Materiality to stakeholdersSustainable Development Column Governance Environment Social
01 Governance
Deepening Comprehensive
Corporate Governance
Continuing to Plough Through
Integrity Building
Smooth Communication with
Stakeholders
Pillar of sustainable development strategy
Management Fostering
Sustainable Operations
Responding to material issues
Corporate governance
Business ethics and compliance
19 20Sustainable Development Column Governance Environment Social
Deepening Comprehensive Corporate Guiding Scientific Governance Through Party Building
Governance The Company focuses on deepening reforms by integrating Party building deeply into its main work lines and production and operational development. In 2024 to further standardize the Party committee's research procedures
the Company held 30 Party committee meetings reviewing and determining 424 items; established a "Party building
co-construction" mechanism with subordinate Party branches conducting 4 joint themed Party Day activities with
universities downstream industry chain enterprises and relevant government departments. Additionally the
Party Building as the Guiding Force Company collected over 100 suggestions and opinions from Party members and the public on energy conservation
quality improvement efficiency enhancement and technological breakthroughs and recognized 12 "role models
around us" achieving record-high product quality indicators and historically low production costs.Zhongfu Shenying adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New
Era thoroughly implementing the spirit of the Third Plenary Session of the 20th CPC Central Committee shaping a new Case Zhongfu Shenying Holds Commemoration of the 103rd Anniversary of the CPC Founding "Two Excellences
style of Party building and enhancing the quality and efficiency of standardized grassroots Party construction. and One Advanced" Awards and Party Discipline Learning and Warning Education Conference
Simultaneously the Company actively explores methods and pathways for the deep integration of Party building and To celebrate the 103rd anniversary of the founding of the Communist Party of China promote
business operations creating a "1+N" Party building brand matrix continuously promoting the deep integration of the great spirit of Party building and further consolidate and expand the achievements of
Party building and business operations and achieving high-quality development of the enterprise under the leadership thematic education and Party discipline learning in June 2024 Zhongfu Shenying held the
of high-quality Party building forging "national materials" for the new era. "Two Excellences and One Advanced" Awards and Party Discipline Learning and Warning
Education Conference. The conference commended and encouraged outstanding Party
This year Zhongfu Shenying Xining Company's "Developing New Productive Force Through the 'Party Building + New members and excellent Party affairs workers. The meeting was conducted via video conference
Development Concepts' Model Tailored to Local Conditions" was recognized as an outstanding case in national Party with the main venue in Lianyungang and branch venues in Xining and Shanghai. Nearly 200
building innovation. This marks the second consecutive year of national honors following the selection of Zhongfu participants attended including members of the Company's Party committee leaders of
Shenying's "Five-Colored Shenying" Party building brand as an outstanding national enterprise Party building brand in affiliated enterprises award recipients all Party members activist representatives and youth
2023. league representatives.
Shenying Xining's "Party Building + New Development Concepts" Model
"Party Building + Technological
Innovation" Through the integrated development model of "Party Building + Technological Innovation" the Company
Achieving Technological Self- has embedded independent innovation in core carbon fiber technology into the development of new quality
Guiding Cultural Development Through Party Building
Reliance and Strength productivity fostering the source of original technological breakthroughs.The Company comprehensively implements the spirit of the 20th National Congress of the CPC and the Third Plenary
"Party Building + Coordinated Using the "Party Building + Coordinated Planning" model the Company balances high-quality development Session of the 20th CPC Central Committee organizing diverse Party member cultural activities such as the "Striving
Planning" with high-level security focusing on preventing and mitigating major risks. Corporate culture is cultivated as Forward Braving the Tide" calligraphy and painting exhibition outdoor quality development activities for the "May
Ensuring Industrial Autonomy and an intrinsic support for coordinated development aligning production relations with productive forces to Fourth" Youth Day and launching the "Party Discipline Education" column for thematic training. Advanced models are
Control enhance the Company's risk resilience and market competitiveness. highlighted and multiple channels including the Company website official WeChat account "Smart Party Building"
platform and internal publications are utilized for promotion creating a positive online and offline resonance. This
Adhering to the "Party Building + Green and Low-Carbon" model the Company empowers green year Party and Youth League branches at all levels organized over 60 Party-building activities."Party Building + Green and Low-
Carbon" technological innovation with digital technologies enabling real-time monitoring and management of
Accelerating Green Transformation energy consumption in production manufacturing and recycling processes. This systematically improves
and Development energy and resource utilization efficiency driving green and low-carbon transformation to support high- Case
Celebrating New China Striving for a New Era—Building Materials Cultural Tour at Zhongfu Shenying
quality development. Xining Company
To thoroughly study and promote the spirit of the Third Plenary Session of the 20th CPC
Thoroughly implementing General Secretary Xi Jinping's important discourse on talent work and adhering to Central Committee celebrate the 75th anniversary of the founding of New China and
"Party Building + Open Integration" the principle of Party management of talent the Company explores a more autonomous collaborative and strengthen corporate culture in September 2024 the China National Building Materials
Enhancing Resource Allocation open system for talent "introduction and utilization" through the "Party Building + Open Integration" model. Group's cultural tour visited Zhongfu Shenying Carbon Fiber Co. Ltd.'s Xining Company
Capabilities A fair competition mechanism is established across all stages of talent development including the world's highest-altitude and largest single-site high-performance carbon fiber
"introduction utilization motivation and evaluation." production base. The tour brought a spectacular cultural feast to all employees of Xining
Company. Employees of Zhongfu Shenying Xining also showcased lively ethnic dances
"Party Building + Shared Through the "Party Building + Shared Responsibility and Benefits" model the Company continuously demonstrating mutual respect and inclusivity among ethnic groups embracing each other
Responsibility and Benefits" strengthens income distribution incentives fully unleashing the innovative and creative vitality of talent. like pomegranate seeds and uniting heart-to-heart and hand-in-hand to fulfill the mission
Stimulating the Vitality of This creates a cooperative model where the Company and employees "share responsibilities during the of "Materials Create a Better World."
Production Factors development process and share the benefits of development outcomes."
21 22Sustainable Development Column Governance Environment Social
Guiding Green Development Through Party Building Governance System
In order to accelerate the Company's green and low-
carbon transformation Shenying Xining has set up a Zhongfu Shenying strictly adheres to laws and regulations such as the Company Law of the People's Republic of China
party member technology research group relying on the the Securities Law of the People's Republic of China and the Corporate Governance Guidelines for Listed Companies
advantages of clean energy on the Tibetan Plateau and and has established a robust governance structure comprising the shareholders' meeting board of directors board ofsystematically carried out the improvement of supervisors and management team known as the "Three Committees and One Layer.”3 By refining the authority and
equipment and facilities index testing and other work to responsibility lists of the three committees and standardizing the corporate governance system and operational
achieve an annual water saving of 870000 tonnes which mechanisms the Company has effectively enhanced governance efficiency laying a solid foundation for high-quality
guarantees the large-scale production of high- and sustainable development. The board of directors has established four specialized committees: the Strategy and
performance carbon fiber while reducing the intensity of ESG Committee the Audit Committee the Nomination Committee and the Compensation and Evaluation Committee
water consumption and helps the Company's green which assist the board in fulfilling its functions in strategic development auditing nominations and compensation
development. and evaluation respectively ensuring efficient operation across all business areas.This year the Company introduced an Independent Directors' Special Committee within the "Three Committees and
One Layer" governance framework and formulated the Zhongfu Shenying Carbon Fiber Co. Ltd. Independent
Directors' Work System and the Zhongfu Shenying Carbon Fiber Co. Ltd. Independent Directors' Special Committee
Work Guidelines. These measures further standardize and improve the independent directors' work system enhance
their performance capabilities and independence and effectively leverage their role in corporate governance.General Meeting
of Shareholders General Meeting of Shareholders: In 2024 the Company held 2 General Meetings of
Shareholders and 13 motions were considered and passed.Board of Directors: 9 directors of which 4 were female accounting for approximately
Board of 44%
Directors
6 non-independent directors and 3 independent directors a total of 5 board meetings were
held
41 motions were reviewed and passed and 0 cases of rejected motions.
Supervisory
Board Supervisory Board: 3 supervisors of which 2 are female with a total of 4 supervisory board
meetings held and 17 motions reviewed and passed.Senior
Management
Senior Management: 7 key senior management members of whom 2 are women.
3. Please refer to Zhongfu Shenying's official website for detailed governance system: https://www.zfsycf.com.cn/#/manager
23 24Sustainable Development Column Governance Environment Social
Risk Management Continuing to Plough Through Integrity Building
Zhongfu Shenying comprehensively implements national policies and guidelines continuously improves the Zhongfu Shenying continued to deeply integrate the construction of a clean culture in the new era into the corporate
Compliance Management System and streamlines compliance management processes. The Company clearly governance system systematically promote the basic project of 'not daring to corrupt not being able to corrupt and
designates the legal department as the lead with various business departments collaborating to complete daily not wanting to corrupt' and comprehensively enhance the awareness of employees at all levels of anti-corruption and
compliance management tasks. To further enhance the compliance management system this year the Company prevention of change through the construction of the mode of 'system improvement + culture construction'. In 2024
established the Internal Audit and Compliance Department rigorously carrying out audit compliance legal the Company did not have any corruption incidents related to embezzlement and bribery and will maintain clean and
compliance and review compliance work. honest operation.The Company conducts annual specialized audits and specific area audits for all departments and affiliated
enterprises. Issues identified during audits are promptly communicated to the respective department heads who are
required to complete rectifications and submit rectification reports within the stipulated time. By conducting full-level Deepen institutional construction
internal control supervision audits the Company promotes the "abolition revision and establishment" of systems
standardizes the execution of internal control systems strengthens internal control supervision and inspection and The Company strictly enforced institutional norms and strengthened the application of the results of supervision and
fosters the Company's healthy and sustainable development. Additionally the Company undergoes annual internal inspection. During the year under review the Company further improved the 'Measures for Handling Employee
control supervision and evaluation audits conducted by an external independent third-party organization. Disciplinary Violations' and other institutional provisions established the 'Provisions on the Registration and
Management of Gifts and Premiums' and the 'Notice on the Reporting of Wedding Funeral and Celebration Matters by
Leading Cadres of the Company' and further perfected the management of gifts premiums and the reporting of
Sound risk management mechanism marriage funeral and celebration matters by leading cadres. In addition the Company has refined the list of duties
performed by discipline inspection members improved the 'Assessment Measures for Heads of Discipline Inspection
Institutions and Members of Discipline Inspection Institutions of Enterprises Attached to the Company' and assessed
The Company has set up a 'three lines of defence' risk management mechanism with the first line of defence the performance of heads of discipline inspection institutions and members of discipline inspection institutions of
consisting of each department (including business personnel and the person in charge) the second line of defence is enterprises attached to the Company at the end of each year.the legal department and the third line of defence consisting of the Internal Audit and Compliance Department and
the Supervision and Discipline Comprehensive Office. During the year the Company formulated qualitative and
quantitative risk rating standards classifying risks into high medium and low according to the likelihood of
occurrence degree of impact and amount of loss and built a risk classification management system accordingly Strengthening Supervision and Operation
requiring relevant departments to fill in a risk classification management form and propose risk response measures.The Company has continued to operate the 'big supervision' system through the formation of the 'big supervision'
system talent pool strengthening the supervision synergy exploring risk warning measures and continuously
Enhancing risk compliance awareness improving the supervision coordination mechanism and continuously amplifying the supervision effectiveness.In order to further enhance its risk management capability Zhongfu Shenying actively carried out risk compliance
training of various types and dimensions covering all levels of employees. During the year the Company actively Big Supervision'
participated in risk compliance training organised by third parties such as China National Building Material Group with system talent pool
Joint Supervision Risk warning
a total of more than 30 management-level relevant personnel attending and organised internal legal compliance The formation of a large Joint audit finance and legal personnel Explore the establishment of
capacity building training activities. supervision system talent pool have carried out 6 special supervision and risk warning mechanism
and constantly broaden the inspection of key links in the areas of supervision and inspection
supervision channels extend procurement and bidding travel process found in the system
the supervision of the reimbursement official reception deficiencies management
tentacles to ensure that they reimbursement vehicle management and loopholes or weaknesses in
can quickly respond to and use and issued 3 supervision and inspection the work the establishment of
participate in the supervision recommendations; and carried out 1 special integrity risk reminder sheet
and inspection work this year research on integrity risks of the enterprises timely notification reminder
departments at all levels a to promote the formation of a synergy of and urge to continuously
total of 48 professionals into supervision and enhance the quality of enhance the awareness of
the talent pool. supervision and management. integrity risk prevention.
25 26Sustainable Development Column Governance Environment Social
Build a firm line of defence of integrity Smooth reporting channels
The Company layers of compaction of the main responsibility and make every effort to promote the construction of The Company continues to improve the supervision and protection network open mailboxes telephone and other
clean party and anti-corruption work to strengthen the ‘key minority’4 supervision and solidly carry out the party channels for reporting letters and visits clear acceptance of the scope of letters and visits strict protection of the
discipline learning and education. Through organizing warning education conferences collective integrity talks and legitimate rights and interests of whistleblowers and privacy; in the public bidding selection of cadres the person in
integrity training sessions for cadres the Company guides all employees to enhance their awareness of discipline truly charge of the enterprise to perform the duties of the treatment of the inspection inspection etc. work procedures in
understand laws and regulations foster a sense of reverence and caution and uphold moral boundaries. This the notice announcement conscientious acceptance of public supervision to achieve the supervision of the 'zero-
approach strengthens their commitment to integrity and self-discipline building a solid ideological defense against distance full coverage 'to create a good environment for clean and upright officers and entrepreneurs.corruption.Key Performance in Integrity Risk Management
Letter-or-visit telephone：+86-0518-86070006
Strengthening Accountability
Signed 36 copies of the "Responsibility Statement for Party Conduct and Clean Government Construction"
with various departments and affiliated enterprises. Complaint E-mail：jdzjzhs@zfsycf.com.cn
Enhancing Supervision of Cadres
Strengthened supervision of leaders Undertook pre-appointment Signed 218 copies of the
and leadership team conducted integrity talks for cadres to "Integrity Commitment
57 Statement" with middle managers instances of in-depth talks 24 person per capita and key position personnel
Sustained Rectification of the "Four Malpractices"
Carried out
4 internal self-inspections and routine supervision on the implementation of the Central Eight Provisions.
Conducting Integrity Education
Organized 12 Conducted 10 with a total of 96
sessions of the "Monthly Integrity sessions of integrity employment participants
Discussion at Office Meetings" training for new employees at all
levels
4 16 at all levels to achieve Compiled sessions of the Organized
"Micro Classroom on Discipline sessions of warning 100% coverage of
and Law" education warning education
4. Key Minority: refers to the key factors that drive development and although small in number lead the greatest strengths and forces for development. Integrity Warning Education Activity
27 28Sustainable Development Column Governance Environment Social
Smooth Communication with Stakeholders Stakeholder Main communication methods and channels
Zhongfu Shenying actively establishes diversified communication channels making full use of 'traditional media +
Internet' and takes the lead in organising a number of performance briefing sessions special investor relations forums General Meetings press releases/announcements
and investor relations research activities. While maintaining high-frequency exchanges in-depth communications and Main shareholders Annual/Interim Results Conferences Analyst Conferences
multi-angle analyses the Company maintains open and transparent information on platforms such as SSE e- roadshows Company introduction days
Interactive investor relations mailboxes and investor relations phone lines through the trinity of 'reading expressing
and communicating' to achieve efficient dissemination of information and accurate delivery so as to join hands with
its partners to jointly achieve sustainable development. together with our partners to achieve sustainable
development.Potential investors and Investor conferences press releases/announcements
financial institutions Annual/Interim Results Conferences roadshows Company introduction days
Honors and awards: SSE information rating 'A' in 2024.Government and Telephone/ e-mail government and regulatory meetings and
regulatory bodies trainings local government and corporate project cooperation regular corporate reporting
Case Diversified activities smooth investor communication channels
In 2024 the Company organised a number of characteristic anti-roadshow communication activities in Shanghai
during large-scale industry exhibitions. The chairman and general manager of the Company attended in-depth
exchanges with a number of investment institutions and research analysts on the status quo of the carbon fiber
industry technology research and development and its downstream application development etc. which Corporate platforms suggestion boxes and labor union
guided the investors to deeply understand the Company's development strategy and operation situation and Employees channels team building activities employee satisfaction
conveyed the industry prospect and investment value to the market thus promoting effective closed-loop surveys workers' congress
communication and market feedback mechanism. Promote the effective closed loop of investment
communication and market feedback mechanism.Customers Meetings and conferences customer service hotline customer satisfaction surveys official account social media
Investor Relations Seminar Work inspections and monitoring supplier/contractor
Partners conferences telephone/e-mail meetings and conferences
supplier evaluations
29 30Sustainable Development Column Governance Environment Social
02 EnvironmentAccelerating the Transition to Low-
Carbon Production
Continuing to Promote
Environmentally Friendly Production
Accelerating the Construction of a
Circular System
Driving Green and Lightweight
Development
Proactively Addressing Climate
Change
Pillars of sustainable development strategy
Technology Promoting Green Innovation Driving Circular
Production Economy
Responding to material issues
Efficient energy
utilization Waste management
Reducing pollutant Water resources
emissions management
Responding to Promoting circular
climate change economy
31 32Sustainable Development Column Governance Environment Social
Zhongfu Shenying integrates green development into the core strategy of the Company and continues to promote the
implementation of the Carbon Peak Achievement and Carbon Neutral Work Implementation Programme with the Zhongfu Shenying's key energy-saving and carbon reduction performance
principles of 'low-carbon leadership and technology-driven' and the path of 'circular economy and green
empowerment'. Focusing on the optimisation of industrial structure layout green and low-carbon energy
transformation resource conservation and efficient utilisation and other aspects of the progress of work the Company Key energy-saving and carbon reduction performance: Comprehensive energy-saving retrofitting has been
set 'dual-carbon' targets in line with the development of enterprises and set up energy-saving special teams the carried out. Through the upgrade of energy-saving process technologies and the recycling of energy for savings
implementation of the energy performance appraisal system to help achieve the goals. 2024 the Company completed the annual energy consumption has which can reduce greenhouse gas emissions by
the established goals and set the 'dual-carbon' targets for 2025. In 2024 the Company achieved its target and set a been effectively reduced by approximately
'dual carbon' target for 2025 to consolidate the results of related work.
15000 tons of standard coal 39000 tons of CO? equivalent
Zhongfu Shenying's 2024 "Dual
Carbon" Goals Completion The greenhouse gas emission The comprehensive energy
Status per unit of product is consumption per unit of product is
29.85 tons of CO? 8.32 tons of standard coal per
equivalent per ton of carbon fiber ton of carbon fiber
Compared with 2023:
The specific electricity consumption The specific steam consumption
of the product has decreased by has decreased by
2%8%
Achieved Comprehensive energy consumption per unit of
carbon fiber CO? emissions per unit
(2024 vs. 2023) (ton/ton of carbon fiber)
Achieved
product
4% (ton CO? equivalent/ton of Goal: 3% reduced by carbon fiber)(2024 vs. 2023)
Goal: 3% reduced by 4.4%换成最新的全景图
Zhongfu Shenying's 2025 "dual-carbon" goals 航拍
The comprehensive energy consumption per unit of carbon fiber in 2025 will
decrease by 5% compared to 2024.The carbon dioxide emission per unit of carbon fiber in 2025 will decrease
by 6% compared to 2024.
33 34Sustainable Development Column Governance Environment Social
Accelerating the Transition to Low-Carbon Promoting Intelligent Energy Management
Production The Company is comprehensively advancing the construction of an intelligent energy management system vigorously
promoting the application of online energy monitoring platforms and Energy Management Systems (EMS). By utilizing
sensors to collect real-time energy consumption data from production lines and dynamically adjusting the operating
modes of production equipment through intelligent management systems the Company has achieved refined energy
Zhongfu Shenying adheres to the principle of technology-driven low-carbon production. By optimizing production management. This year the Company deployed temperature sensors in carbonization furnaces combined with
processes upgrading high-efficiency production equipment and implementing intelligent energy management algorithms to dynamically adjust heating curves reducing process deviations and ensuring the stability of the
platforms the Company is accelerating the optimization of its energy structure and reducing carbon emissions from carbonization process thereby further enhancing energy use efficiency.production operations. In 2024 the Company's main production base has obtained ISO 50001 Energy Management Zhongfu Shenying's Xining facility has established a new three-dimensional integrated warehouse introducing
System certification. automated equipment such as robotic arms and conveyor vehicles to replace manual operations. The use of electronic
labels and automated warehousing systems enables real-time tracking of raw material and finished product inventory
significantly improving storage turnover efficiency and data accuracy while effectively enhancing resource utilization.Promoting Energy Conservation and Emission
Reduction Measures Accelerating the Green Energy Transition
The Company is committed to efficient energy use and reducing energy consumption as the core of its energy-saving This year the Company has accelerated the adoption of clean energy and the transition to green electricity. Leveraging
and carbon-reduction initiatives accelerating the replacement and upgrading of green and low-carbon production the geographical advantages of its operational locations the Company has collaborated with nearby power stations to
equipment. At the same time the Company emphasizes and continuously conducts daily energy-saving training for all prioritize the procurement and use of clean energy. Additionally the Company actively participates in carbon market
employees deepening their awareness of energy conservation and enhancing the efficiency of the green and low- mechanisms to expedite the comprehensive green transformation of its energy sources. This year the Company's total
carbon transition. This year Zhongfu Shenying has implemented the following measures to promote energy annual consumption of renewable energy including wind solar and hydropower reached 321.80 million kilowatt-
conservation and emission reduction: hours with the purchase of "certified and integrated" green electricity amounting to 53.74 million kilowatt-hours.Furthermore upon the completion of Zhongfu Shenying's Lianyungang 30000-ton high-performance carbon fiber
production base the facility will actively utilize steam generated from nearby clean energy sources and offshore
Adopting low-temperature Optimizing the operational load of Collaborating with external photovoltaic power among other clean energy solutions to comprehensively expand the coverage of clean energy use
operation processes production lighting air conditioning and organizations to carry out and effectively reduce carbon emissions from production operations.achieving a reduction in other equipment to avoid the "big horse electricity-savingsteam consumption by pulling a small cart”5 phenomenon renovations improving
approximately 15%; effectively reducing energy waste; energy use efficiency.Replacing Coal-Fired Boilers with Natural Gas Boilers to Reduce
Energy Consumption and Carbon Emissions
This year the company has transitioned to using natural gas boilers in its production processes
achieving a significant enhancement in boiler thermal efficiency. This advancement has led to a
22.2% reduction in the comprehensive energy consumption per ton of steam. Moreover when
compared to traditional coal-based methods and taking into account both thermal efficiency and
carbon emission factors the carbon dioxide emissions per ton of steam have been approximately
halved with the use of natural gas showcasing a 50% decrease relative to coal.For measures related to energy recycling please refer to the "Energy Cascade Utilization" section.
5. Big horse pulling a small cart refers to the power or capacity of power equipment (e.g. motor boiler engine etc.) is much larger than the actual demand
35 36Sustainable Development Column Governance Environment Social
Implementing Comprehensive Green Office Practices Continuing to Promote Environmentally
This year the Company has implemented comprehensive water and energy-saving activities in office operations and Friendly Production
strive to achieve paperless office operations goal actively practicing the concept of green office:
Zhongfu Shenying has always adhered to the principle that "lucid waters and lush mountains are invaluable assets"
Energy-Saving Measures integrating ecological and environmental protection into every aspect of its production and operations to
comprehensively advance clean production. The Company actively optimizes its environmental management system
Air Conditioning Management System vigorously promotes green and efficient production processes and adopts low-emission environmentally friendly * Revised the requiring summer air conditioning temperatures to be set production equipment to further reduce its environmental impact. This year Zhongfu Shenying was awarded the
between 20-26°C and winter temperatures between 18-22°C. Energy-efficient lighting has been installed and Lianyungang Enterprise Environmental Protection Quality Award.motion-sensor/voice-activated lights are used in office buildings. Employees are encouraged to turn off lights
during lunch breaks and regular inspections are conducted to ensure lights and air conditioning are turned
off when not in use.* Implemented stricter management of official vehicles to reduce fuel consumption and optimized shuttle bus Improving Environmental Management
routes by canceling unused stops improving transportation efficiency and reducing empty vehicle runs.* Replaced kitchen utensils with energy-efficient ones utilized variable frequency and timed controls for Zhongfu Shenying continues to strengthen its environmental governance system strictly complying with local laws
kitchen air conditioning and ventilation systems and strictly enforced the policy of "lights off when leaving and regulations. Through institutionalized management the Company has solidified the foundation of its
and power off after work." environmental protection efforts. It has established internal management systems such as the Ecological and
Environmental Protection Responsibility System and the Energy Conservation and Ecological Environmental
Protection Supervision and Management Measures to standardize the environmental management processes of its
daily operations. This year all of the Company's production bases have obtained ISO 14001 Environmental
Management System certification.Water-Saving Measures
Optimizing the Environmental Management Structure
* Conducted regular maintenance of water and electrical equipment in office buildings to avoid resource waste.To efficiently advance environmental management the Company has adjusted its environmental management
structure this year. Under the Company headquarters an Environmental Protection Leadership Group has been
established to coordinate safety and environmental protection management. A management system has been built
with headquarters control as the core guided by the Digital Information Department and with subsidiaries and
workshops assuming primary responsibilities.Paperless Office Practices
Adopted digital office solutions transitioning processes such as form applications and official seal usage to Environmental Protection
Digital Information Department
* Leadership Group (Safety and Environmental Protection Subsidiaries and Workshops
online approvals. The double-sided printing policy was strictly enforced saving approximately 20000 sheets Department) at Headquarters
of paper annually and reducing the printing of paper materials by about 1500 copies. Composed of the general manager as Under the guidance of the Responsible for implementing
* Organized multiple paperless office training sessions to enhance employees' environmental awareness and the director deputy general managers Environmental Protection Leadership ecological and environmental
technical application capabilities. as deputy directors and heads of Group responsible for formulating protection measures in production
subsidiaries departments and mid- environmental management policies according to established policies.level managers from headquarters and objectives.responsible for overseeing the
Company's environmental protection
work.
37 38Sustainable Development Column Governance Environment Social
Refining Environmental Management Systems Implementing Environmental Performance Evaluation
To further implement environmental management Zhongfu Shenying revised the Ecological and Environmental The Company systematically promotes the implementation of environmental indicators and goals by incorporating
Protection Management Manual (Interim) this year clarifying the scope of institutional processes and management energy conservation emission reduction and other environmental metrics into the annual performance evaluations of
responsibilities as follows: management. Leaders at all levels are required to sign the Energy Conservation and Environmental Protection Target
Responsibility Agreement clarifying their environmental responsibilities and performance evaluation criteria. This has
established a management mechanism where environmental responsibilities are progressively enforced and
1 Updating and Integrating Existing Environmental Systems evaluations are stringent effectively enhancing management's awareness of environmental protection.
Conducted in-depth revisions to 16 core systems including the Environmental Protection Responsibility
System Emission Permit Management Environmental Emergency Management and Hazardous Waste
Management optimizing management processes. Real-Time Environmental Monitoring
2 Adding New Environmental Management Systems The Company actively encourages its subsidiaries to fully identify and proactively prevent environmental risks. It
requires the formulation of self-monitoring plans for the environment and regularly collaborates with external
Introduced systems for environmental safety hazard inspections environmental information disclosure professional organizations to conduct environmental monitoring. This ensures real-time tracking of emission data and
pollution source monitoring Leak Detection and Repair (LDAR) management and clean production effectively controls compliance risks related to emissions. This year the Company's monitoring results have all met
enhancing refined management of volatile organic compounds (VOCs) emissions wastewater reuse and national standards and it has fully achieved its annual environmental protection goals.solid waste reduction.
3 Clarifying Responsibilities Ensuring Emergency Safety
Detailed the responsibilities of workshops for managing "three wastes" treatment facilities and solid waste
storage; clarified the division of responsibilities for waste gas wastewater treatment and emergency The Company continues to adhere to management systems such as the Zhongfu Shenying Carbon Fiber Co. Ltd.response; and standardized the entire process of hazardous waste classification temporary storage and Emergency Environmental Incident Management Measures and the Zhongfu Shenying Carbon Fiber Co. Ltd.disposal to ensure the efficient operation of the environmental management system. Emergency Environmental Incident Response Plan Management Measures. It has also revised the Zhongfu Shenying
Carbon Fiber Xining Co. Ltd. Emergency Environmental Incident Response Plan to improve emergency response
Zhongfu Shenying's Xining branch revised the Zhongfu Shenying Carbon Fiber Xining Co. Ltd. Ecological and measures for natural disasters. Additionally the Company has installed lightning protection and flood control
Environmental Protection Responsibility System and the Zhongfu Shenying Carbon Fiber Xining Co. Ltd. emergency response equipment in workplaces. This year the Company organized both comprehensive and
Environmental Protection Management System Compilation further clarifying and detailing the environmental specialized emergency drills to enhance its ability to respond to environmental emergencies and improve emergency
responsibilities of positions and the management requirements for production process emissions strictly implement risk management capabilities.the responsibility for ecological and environmental protection achieving more efficient environmental management.
39 40Sustainable Development Column Governance Environment Social
Continuing to Promote Clean Production Waste Management
The Company adheres to the principles of "safety compliance and reduction" strictly complying with national laws
Zhongfu Shenying is continuously improving its pollutant management measures intensifying efforts to treat waste regulations and local requirements. It has established a comprehensive management system covering waste
gas waste materials and wastewater and steadily advancing the application of diversified emission reduction classification temporary storage and transfer focusing on system construction process control employee training
measures. In 2024 Zhongfu Shenying successfully achieved its annual pollutant emission targets and has set goals for and technological upgrades to achieve refined management of the entire waste lifecycle and ensure 100% compliance
2025 based on actual conditions. Details are as follows: with disposal standards. Specifically for hazardous waste each of the Company's production bases has established
independent hazardous waste storage points and containers. Leveraging digital information technology the Company
Pollutant 2024 Target Progress 2025 Target collects real-time data on the types and weights of waste ensuring that waste information is manageable visible and
Waste Gas 3% reduction in emissions compared to 2023 Achieved 2% reduction in emission intensity per unit product controllable. Additionally the Company collaborates with qualified third parties to ensure compliant disposal of waste
Waste 100% compliance rate for general solid waste Achieved 100% compliance rate for general solid waste and achieving "zero external discharge" of hazardous waste.Materials and hazardous waste disposal hazardous waste disposal This year Zhongfu Shenying's Xining facility advanced waste reduction by strengthening waste storage management.Wastewater 3% reduction in emissions compared to 2023 Achieved 3% reduction in emission intensity per unit product As a result
Waste Gas Management hazardous waste general industrial solid waste and the comprehensive recycling rate generation decreased by generation decreased by of general solid waste increased by
The Company maintains high standards and strict requirements for waste gas emission management vigorously
promoting the upgrading and replacement of waste gas treatment facilities to enhance the efficiency of waste gas 25.90% year-on-year 15.60% 18%
collection and treatment. This ensures effective implementation of full-process waste gas management.Furthermore hazardous waste generation and solid waste generation per unit
This year the Company's total waste and the waste gas emission (VOCs) per unit product decreased by product decreased by
gas emissions (VOCS) decreased by intensity per unit product was
reduced by 20.79% 9.78%
21.10% compared to 2023 4.30%
Wastewater Management
Application of Diversified Exhaust Emission Reduction Measures
The Company strictly adheres to national laws regulations and local wastewater discharge standards continuously
Collection and Treatment of Unorganised Exhaust Application of electrostatic oil removal technology strengthening wastewater discharge control. Multiple measures are employed to ensure compliant wastewater
Gases * Normal temperature electrostatic degreasing technology is treatment and reduce wastewater emissions.* Implement the project of collecting unorganised introduced into the drying waste gas treatment in the raw silk
waste gas in the polymerisation workshop workshop which effectively removes the odour of silicone oil This year wastewater discharge at Zhongfu while at the Xining facility
adopting the process of 'pre-treatment + alkaline and ensures that the discharge meets the standard through Shenying Dapu facility decreased by it decreased by
washing + acid washing + water washing' to realise multi-stage purification such as pre-treatment filtration
the organised emission of waste gas. spraying and rapid cooling tower.* Plastic roller blinds are installed in the raw silk * In the carbonisation workshop the combination process of 24.54% year-on-year 34.97%
workshop to reduce the confined space improve 'circulating water cooling + high-energy electromagnetic
the efficiency of exhaust gas collection and ionisation + deep purification and whitening' is adopted to
prevent and control the spread of odour. provide in-depth treatment of the exhaust gas remove the
odour and achieve colourless gas emission. Establishing Rainwater Pipeline Network Ammonia Nitrogen
Collection Pools Renovation and Inspection Special Treatment
Optimisation of equipment and storage tanks Combined deep purification process The Dapu facility has equipped its The Xining facility conducted pipeline The Xining facility utilized wastewater
workshops with rainwater collection network renovations and inspections ammonia evaporation equipment to
* Modify the waste water storage tank of the original * In the waste gas treatment of carbonisation workshop
silk workshop and change the underground low- combining the front-end processes such as rapid cooling tower facilities and emergency pools. to address rainwater leakage and reduce ammonia nitrogen levels
level tank into an above-ground horizontal tank oxidation tower and absorption tower we have added the potential pollution sources ensuring followed by biochemical system
so as to reduce the failure rate of pumps and the technology of 'high-energy electromagnetic ionisation + deep compliant sewage discharge. treatment. Throughout the year
escape of disorganised waste gas and reduce the purification and whitening' which further reduces the odour 69070 cubic meters of high ammonia
risk of soil and groundwater pollution. and improves the cleanliness of the emission. nitrogen wastewater were treated.
41 42Sustainable Development Column Governance Environment Social
Accelerating the Construction of a Circular
The Company actively promotes flue gas
System waste heat recovery technology by installing multi-stage heat exchangers inside boilers to This initiative saves over 19000
collect high-temperature waste heat for tons of standard coal annually
and reduces greenhouse gas emissions
Zhongfu Shenying “double recycling” development model supplying condensers and preheating boiler
water. It employs an intelligent control by approximately
system to dynamically adjust the load of
recovery equipment maximizing the 47000 tons of CO? equivalent
Contributing to green and efficiency of waste heat recovery and
lightweight development enhancing the cascade utilization of energy.Empowering low-carbon solutions for
carbon fiber applications
This saves 1 ton of steam per hour equivalent to
Promoting the circular Additionally the Company implements flash
utilization of natural resources steam recovery technology for raw silk 1100 tons of standard coal annually
Developing production capturing flash steam generated and reduces greenhouse gas emissions by
comprehensive Comprehen- The graded from high-temperature cylinder condensate. approximately
utilization of sive utilizati- utilization
production resources on of waste of energy 2800 tons of CO? equivalent
for carbon fiber
Constructing the product recycling system
Facilitating high-quality recycling of carbon fiber products
Zhongfu Shenying is vigorously advancing the circular use of natural resources through technological innovation and
practical applications in four key areas: energy cascade utilization water resource recycling waste resource utilization
and resource recovery. The Company actively promotes measures such as waste heat recovery and reclaimed water
reuse to maximize resource efficiency and reduce the consumption of natural resources.Energy cascade utilization
The Company continuously promotes energy recycling technologies within its production processes to achieve
efficient energy utilization. This year the Company has actively implemented measures to recover waste heat and
steam during production stages. It utilizes externally purchased steam and the waste heat generated from high-
temperature flue gases during the carbonization process classifying them based on pressure and temperature. These
resources are effectively allocated according to production needs: high-temperature heat is prioritized for production
processes while low-temperature heat is used for preheating materials and raising ambient temperatures. This
approach ensures "high-quality use for high-demand purposes and low-quality use for low-demand purposes"
transforming external energy input from "linear consumption" to "circular utilization." This reduces external energy
dependency and indirectly lowers greenhouse gas emissions. Additionally the integration of intelligent technologies
further enhances the efficiency of energy cascade utilization. During the year the Company achieved a waste heat
recovery utilisation rate of 70% through the application of its own upgraded equipment which reduced greenhouse
gas emissions by approximately 50000 tonnes of carbon dioxide emissions equivalent for the year.
43 44Sustainable Development Column Governance Environment Social
Recycling of water resources Driving Green and Lightweight
Aiming for "zero discharge" and "full recycling" of industrial wastewater the company vigorously promotes wastewater Development
recycling in production. It collects high - quality condensate from carbonization workshop equipment like dryers and
boilers recovering 15 tons per hour to cut water waste. A multi - stage circulation water - making process boosts
membrane separation efficiency and uses the separated water for firefighting dust control and irrigation maximizing
reuse. This year the company increased investment in reclaimed water projects to enhance the wastewater recycling Zhongfu Shenying continues to deepen the low-carbon transformation of its value chain providing high-quality carbon
system's efficiency achieving: fiber materials to enhance energy efficiency in downstream industries. Leveraging its excellent properties of high
strength low density and high-temperature resistance the Company's products are widely used in aerospace
automotive rail transportation and construction and bridge sectors. These applications significantly reduce the
the water reuse is increased to the amount of fresh water withdrawn is reduced by weight of downstream products effectively lower energy consumption during usage extend product lifespan and
strengthen the circular economy attributes of the products. Simultaneously the Company continues to supply high-
1451500 tonnes 700000 tonnes performance high-quality carbon fiber products to industries such as new energy public transportation and low-
altitude aviation providing core raw materials to customers across multiple sectors and supporting the vigorous
development of green industries.The Company's high-strength medium-modulus carbon fiber products have been
successfully applied in the automotive sector reducing the weight of certain components Waste Resource Utilization In 2024 Shenying Dapu recycled nearly Automotive by approximately 30%-60% improving fuel efficiency by about 20%-50% and decreasing
Industry fuel consumption by 1.8-7.2 liters per 100 kilometers.
15%
The Company emphasizes strengthening the resource
utilization of waste and actively collaborates with of waste used for biomass power The Company's high-strength medium-modulus carbon fiber products have been
qualified third-party waste treatment entities to recycle generation through partnerships effectively utilized in rail transportation reducing train weight by 10%-25% and lowering Rail
and reuse waste suitable for biomass power generation. implementing the concept of waste energy consumption by 15% for the same distance traveled.Transportation
Together we strive to promote the development of a resource utilization.circular economy in society. The Company's high-strength medium-modulus carbon fiber products have been
implemented in cable-stayed bridges. Compared to traditional steel materials carbon
Construction fiber's lightweight high stiffness low creep and corrosion-resistant characteristics can Resource Recycling and Utilization Applications extend the lifespan of bridge construction projects by 30 years.The Company enhances the circular utilization of This year the Company has supplied over 8000 tons of carbon fiber materials to the new
production resources and focuses on technological energy public transportation and low-altitude aviation industry comprehensively
improvements to boost recycling efficiency. Through New Energy empowering the rapid development of the sector.independent research and development the Company Sector
has designed a multi-level high-airflow dimethyl By employing these systems the Company purifies
sulfoxide (DMSO) recovery system achieving complete and reuses DMSO reducing the consumption of DMSO Case Zhongfu Shenying Contributes to the Creation of the World's Longest Onshore Wind Turbine Blade
recovery of high-concentration DMSO non-condensable materials per unit product by over In January 2024 the world's longest 131-meter onshore wind turbine
gases. Additionally the Company has conducted multi- 10% blade was successfully manufactured and rolled out in China. The core level technological research and application utilizing year-on-year material of this blade is derived from Zhongfu Shenying's dry-jet wet-
high-temperature steam extraction processes to fully spun 48K high-performance carbon fiber. Leveraging the properties of
recover DMSO from waste slurry. carbon fiber the product extends the length of the blade increasing the
swept area of the wind turbine. This enhancement significantly boosts
the power generation capacity of a single unit and reduces the number
of turbines required for the same energy output effectively improving
the efficiency of wind power generation.
45 46Sustainable Development Column Governance Environment Social
Case Zhongfu Shenying Contributes to the Launch of the World's First Commercial Carbon Fiber Metro Train Proactively Addressing Climate Change
In June 2024 the world's first commercially operated
carbon fiber metro train the "CETROVO 1.0 Carbon
Star Express" was officially unveiled in Qingdao.Utilizing Zhongfu Shenying's T700-grade high- Zhongfu Shenying deeply recognizes the impact of climate change on the sustainable development of enterprises and
performance domestically produced carbon fiber places high importance on the risks and opportunities it presents to daily operations. Drawing on the Task Force on
the train successfully incorporates composite load- Climate-related Financial Disclosures (TCFD) the Company integrates key factors such as market dynamics industry
bearing components—carbon fiber metro bogies. characteristics and its sustainable development strategic planning to further identify and analyze the impact of
Compared to traditional metal components this climate change. It has systematically outlined major risks opportunities and corresponding mitigation measures.innovation achieves a 50% weight reduction
enabling the metro train to increase its speed by 55%
and reduce operational energy consumption by 7%.Each train can reduce carbon dioxide emissions by Governance
approximately 130 tons annually equivalent to
afforesting 101 acres of land. To better address the challenges posed by climate change the Company has embedded climate change
considerations into its sustainable development governance framework (see the "Sustainable Development
Governance Framework" section of this report). This ensures the effective implementation of climate strategies
reduces the impact of climate risks on operations and identifies climate-related opportunities. By leveraging the
Case Zhongfu Shenying Supports the World's First Flight of a New Energy Flying Car trends of clean energy transition and low-carbon development the Company supports its own green growth and that
In November 2024 the 15th China International Aviation and Aerospace Exhibition officially commenced in of society as a whole.Zhuhai Guangdong. Leveraging its lightweight high-strength and temperature-resistant dry-jet wet-spun carbon
fiber Zhongfu Shenying successfully contributed to the world's first flight of a flying car. The use of lightweight
and high-strength carbon fiber materials in key components such as the fuselage wings and seats not only Strategy
significantly enhances the performance of the eVTOL (electric Vertical Take-off and Landing aircraft) but also
effectively improves its flight efficiency.Based on its operational realities and future climate change trends the Company analyzes the potential short-
medium- and long-term impacts of climate risks and opportunities on its development strategy and business model. It
actively optimizes its risk management system and action plans to achieve systematic management of climate-related
risks and opportunities.According to the analysis the Company primarily faces transition risks related to policies and regulations technology
and market/reputation. While these may have some impact in the medium to long term the Company is mitigating
these risks by increasing the use of clean energy in production developing integrated offshore wind and solar power
projects and optimizing high-energy-consuming equipment (see the "Accelerating Low-Carbon Transition" section).Additionally it actively monitors policy trends related to low-carbon transition resulting in a relatively low impact from
transition risks.Regarding physical climate risks the Company has identified acute and chronic risks such as increased extreme
weather events and rising sea levels in the medium to long term. However considering its operational locations
continuous improvement of risk monitoring systems and robust emergency response measures (see the "Risk
Management" and "Enhancing Environmental Management" sections) the overall level of physical climate risks
remains low.The table below details the climate risks identified by the Company based on its business characteristics.
47 48Sustainable Development Column Governance Environment Social
Identify climate risks Physical risks Risk description and potential impact Timeframe Response measures
Immediate Climate change has led to an increased Short Establish a supply chain protection
Transition risks Risk description and potential impact Timeframe Response measures frequency of extreme weather events such as medium long mechanism and conduct emergency drills
floods and typhoons which may result in term for natural disasters based on the climatic
Policy and legal As the nation actively advances its "Dual Medium long- Proactively monitor industry and regional
power outages water shortages and characteristics of the operational
Carbon" goals regions across the country term low-carbon policy changes and based on damage to transportation infrastructure. locations to ensure sufficient emergency
have introduced new carbon reduction the Company's sustainable development These disruptions can affect the Company's supplies.policies imposing stricter decarbonization strategy continuously increase the normal operations and cause economic Upgrade production and operational
requirements on high-emission economic proportion of clean energy such as losses. equipment to be more resilient to climate-
activities which may increase the Company's photovoltaic and wind power. Gradually related challenges enhancing the ability
compliance costs. implement product carbon footprint to withstand natural disasters.certification adhere to the principles of
With the steady growth of Zhongfu the circular economy and accelerate the
Shenying's business and its gradual Long-term Climate change is causing a continuous rise Medium long green and low-carbon transformation of
expansion into overseas markets the in global temperatures potentially leading to termthe Company's operations and products.introduction and guidance of the United chronic risks such as rising sea levels
Nations' Paris Agreement have prompted changes in water resource distribution and
countries and regions worldwide to increased occurrences of extreme heat.implement more stringent carbon emission These factors may have long-term impacts
policies (such as the European Union's on the Company's operations including the
Carbon Border Adjustment Mechanism). This need for relocation of operational sites
could lead to higher operational compliance increased demand for cooling equipment
costs for the Company. and higher frequency of equipment
maintenance. Such scenarios could
significantly increase the Company's
Technology Against the backdrop of the nation's ongoing Short Enhance the efficiency of clean operational costs.optimization of energy consumption medium term technology research and transformation
structures the Company needs to accelerate encouraging all production bases to
the iteration of low-carbon process actively adopt new technologies and
technologies thereby increasing the methods for energy conservation and
economic costs associated with research and carbon reduction striving to achieve
technological substitution. synergistic development of low-carbon
transformation and cost efficiency.Market/ Downstream customers and value chain Short Proactively identify the low-carbon
reputation partners are increasingly prioritizing the low- medium long requirements for carbon fiber products in
carbon attributes of products and services term domestic and international markets and
placing higher demands on Zhongfu carry out work to reduce the carbon
Shenying's products. If the Company fails to footprint of products in a step-by-step
swiftly adapt to market changes and meet manner.market expectations it may face barriers to
developing new markets. Actively communicate with partners
promoting the advantages of products in
facilitating low-carbon development and
conducting low-carbon-related
certification for products to enhance
market recognition.Implement the sustainable development
strategy improve ESG and other
sustainable development information
disclosure and elevate the Company's
sustainable development image.
49 50Sustainable Development Column Governance Environment Social
Seizing Climate Opportunities Risk Management
Zhongfu Shenying consistently promotes the innovative application of carbon fiber materials focusing on providing
high-quality carbon fiber products to emerging green and low-carbon industries such as low-altitude aviation public Zhongfu Shenying remains vigilant about the impact of climate-related risks on its operations and actively
transportation new energy vehicles wind turbine blades and energy storage. This ensures precise alignment with the identifies analyzes and assesses these risks and opportunities. During the risk identification process the
evolving low-carbon development needs of value chain partners. By capitalizing on new market opportunities for low- Company engages in extensive communication with various stakeholders to thoroughly understand
carbon development the Company is building a green technology ecosystem driving green technology upgrades potential risk types. It conducts detailed analyses of the impacts of key risks identified through these
across the industrial and value chains and injecting strong momentum into the green transformation and sustainable interactions ensuring comprehensive identification of climate change-related risks. For more detailed
development of society as a whole. information on risk management please refer to the section "Deepening Comprehensive Corporate
Governance – Risk Management."
The table below details the climate opportunities identified by the Company based on its business characteristics.Opportunity
Description and Metrics and Targets
Potential Impact Timeframe Response Measures
Zhongfu Shenying recognizes that reducing its own carbon emissions is an effective way to manage
Products and Short Zhongfu Shenying is committed to assisting the value chain in achieving climate-related risks. The Company has developed a detailed energy conservation and emission reduction
Services Medium green and low-carbon development. The Company is significantly plan and regularly reviews its progress. For more information on Zhongfu Shenying's climate-related
Long-term increasing the proportion of green and clean energy use gradually energy conservation and carbon reduction targets please refer to the section "Environment: Zhongfu
optimizing production processes and striving to create green and low- Shenying's 2025 'Dual Carbon Goals'."
carbon products. By proactively addressing low-carbon development
needs Zhongfu Shenying provides greener and lighter solutions for
downstream customers and supplies high-quality carbon fiber for
industries such as wind power photovoltaics and energy storage
supporting the high-quality development of the new energy sector.Market Medium To achieve low-carbon development goals countries and regions
Long-term worldwide are strongly supporting the application of carbon fiber
materials in industries such as aerospace wind turbine blades and
automotive manufacturing. Zhongfu Shenying has established a "high-
end" strategic positioning actively responding to the demand for the
green and environmentally friendly attributes of carbon fiber materials
across industries. The Company is seizing new market opportunities and
creating new growth points for its business.Energy Sources Short Zhongfu Shenying continues to increase the proportion of clean energy
Medium use with wind solar and hydropower accounting for 70% of its energy
Long-term mix. The Shenying Lianyungang facility will utilize offshore photovoltaic
and steam generated from clean energy as energy sources effectively
addressing the rising compliance costs due to carbon reduction policies
and preparing for future participation in the carbon market unlocking
new commercial opportunities.
51 52Sustainable Development Column Governance Environment Social
03 Social
Strictly Ensuring Product Quality
Commitment to Technological Innovation
Steadfastly Advancing Intelligent
Development
Implementing Intrinsic Safety
Fully Safeguarding Employee Rights
Comprehensively Promoting Talent
Development
Deepening Corporate Responsibility
Operations
Dedicated to Creating Social Value
Pillars of sustainable development strategy
Talents Building Quality Penetrating
Excellent Teams High-End Markets
Responding to material issues
Pursuing product quality Employee care
Innovative research Providing quality
and development services
Employee health Sustainable
and safety supply chain
Safeguarding employee Community
rights and interests contribution
Support for Employee
Development
53 54Sustainable Development Column Governance Environment Social
Strictly Ensuring Product Quality Zhongfu Shenying's Comprehensive Quality Management Process
Product Design Evaluate whether the product process design is scientifically sound to avoid defects or
Zhongfu Shenying consistently adheres to the "zero-defect" quality management philosophy viewing product quality Phase shortcomings in the product design that could lead to issues during actual use.assurance and enhancement as the cornerstone of the Company's high-quality development. Centered on the
principle of "The systematisation of the quality management system and the quality-oriented systematisation of
management" and guided by the excellence performance management model the Company continuously explores
and optimizes a quality management system with Zhongfu Shenying's unique characteristics. In 2024 all major Assess the quality management capabilities of raw material suppliers and conduct quality
production bases of the Company have obtained ISO9001 Quality Management System certification and no product Raw Material
recalls due to safety or quality issues occurred. Supply Phase
sampling and traceability management of raw materials to ensure they meet product
requirements.Strengthening Quality Management Capabilities Regularly assess the stability of the production line and process control to ensure that the
Production quality management system is effectively implemented fully identify the potential impact
Zhongfu Shenying continuously strengthens its quality management capabilities by improving the quality Phase of errors on product quality analyse the failure rate and improve the production process
management system enhancing raw material management tightening production process controls introducing new in a timely manner strengthen the quality inspection and improve product quality from
technologies and materials establishing a quality auditor system and actively listening to customer feedback. Based the source.on the management requirements and actual operations of the quality management system the Company clearly
delineates the functions of various departments and designates specialists to supervise and inspect the system's
implementation. Through a combination of "positive promotion + reverse inspection" potential weaknesses in system
management and operational issues are promptly identified. The Company conducts thorough reviews and Combine automated testing equipment with manual re-inspection to conduct weekly
rectifications of identified problems continuously tracks the effectiveness of these rectifications and ensures the Product Testing
Phase quality routine checks. Quality inspection weekly reports are issued and solutions are effective operation of the quality management system. promptly communicated with relevant departments to improve product testing efficiency.Product
Packaging Upgrade packaging materials by replacing PE shrink film with POF shrink film to enhance
Phase product bundling and prevent damage during unpacking.Strengthen the management of product storage environments to prevent quality issues
Product caused by moisture heat or contamination. Introduced a random sampling mechanism
Storage Phase for stored products allowing timely detection of abnormalities and implementation of
corrective measures to improve the qualification rate of outgoing products.Product
Transportation Optimize logistics and transportation plans to avoid damage or deterioration during
Phase transit ensuring the safety and integrity of products.Established a dedicated customer service team introduced Product Delivery Managers
After-Sales adopted diversified communication channels and strengthened cross-departmental
Phase collaboration through a series of integrated measures to promptly address customer
feedback and enhance operational efficiency.
55 56Sustainable Development Column Governance Environment Social
We also place great emphasis on potential health and safety risks during product usage. We regularly conduct health This year the Company launched a "Quality Month" event
and safety risk assessments from three perspectives: product safety user operation risks and environmental with the theme "Cultivating a Quality Culture Building The Company conducted a total of 105
adaptability. This ensures that our products do not pose any harm to customer health and effectively safeguards their Quality Trust." The event focused on six key modules: quality quality-related training sessions across all levels
well-being and safety. competitions to showcase skills risk identification to
eliminate hazards quality improvement for breakthroughs involving 4027 participants.Zhongfu Shenying Product Health and Safety Risk Assessment quality training for growth quality audits for enhancement
and quality culture to foster awareness. These initiatives
Product Safety User Operation Risk Environmental Adaptability aimed to comprehensively elevate the quality management
Assessment Assessment Assessment awareness and capabilities of all employees.Conduct safety tests on Analyze potential improper Evaluate the adaptability and
products to ensure they operations or misuse by users stability of products under Quality Competition to Showcase Strength Quality Training for Growth
comply with relevant safety during product usage. Based on different environmental Organized an online knowledge competition for all Organized 105 specialized training sessions on
standards and regulations these findings we prepare product conditions to ensure they employees to enhance quality awareness with 2826 system knowledge QC case analysis and job skills for
preventing any adverse usage instructions and provide function properly in various participants. Conducted the "Courage to Innovate quality management personnel process technicians
health impacts on users safety warnings to guide users in scenarios thereby preventing Forever Craftsmanship" selection activity recognizing and frontline workshop employees achieving 4027
during product usage. correct product usage avoiding potential health and safety 8 employees with outstanding contributions high qualified training participants. This initiative further
potential safety issues. hazards. professional standards and strong innovation strengthened quality responsibility and enhanced
capabilities setting benchmarks and promoting the overall quality awareness. Shenying Xining conducted
spirit of craftsmanship. 38 specialized training sessions with 2226 qualified
participants.Cultivating a Culture of Quality Improvement
Zhongfu Shenying focuses on enhancing product quality by fostering a culture that prioritizes accident prevention and
quality improvement. The Company continuously strengthens the quality awareness of all employees and encourages
them to proactively engage in quality improvement activities. This year the Company further refined the Quality
Accountability and Incentive System detailing the classification of quality incidents and the accountability process
and introduced special rewards for quality improvement initiatives. This ensures clarity in quality management
responsibilities fair rewards and penalties and a well-documented foundation for actions.Quality Knowledge Competition Quality Knowledge Competition
We fully leverage the roles of quality auditors in the Company's quality management system including supervision
advisory communication interface and leadership. The Company has formulated and issued the Internal Auditor
Management Measures implementing a registration evaluation and tiered management mechanism for quality Quality Audits for Improvement Cultivating a Quality Culture
auditors. This ensures the effective operation and continuous improvement of the Company's quality management Guided by the goal of management enhancement a Launched quality essay and micro-video collection
system. series of quality audit activities were organized activities rooted in full employee participation to
including internal audits cross-audits and supplier implement the quality culture of "Building Dreams
Case Internal Quality Auditor Enhancement Program audits. These activities systematically and with Originality Pursuing Excellence with
independently inspected and evaluated the quality Craftsmanship." This initiative continuously
To improve the comprehensive capabilities of internal quality auditors the system solidifying the foundation of quality communicates Zhongfu Shenying's quality
Company established a Quality Auditor Enhancement Program. Through management and safeguarding product quality. management philosophy.knowledge sharing interactive discussions and practical case studies the
program helps quality auditors master more practical quality management
techniques and methods continuously enhancing their quality
management and auditing skills. In 2024 the Company organized 11
training sessions for the Quality Auditor Enhancement Program with 123
participants successfully completing the training.Quality Audit Quality Essay Competition
57 58Sustainable Development Column Governance Environment Social
Risk Identification to Eliminate Hazards Quality Improvement for Breakthroughs Commitment to Technological Innovation
Carried out quality risk identification and Established a Company-wide quality management
investigation activities pinpointing 14 high-risk key platform and launched the "Challenge Board"
processes and formulating corresponding measures. initiative to address key and challenging aspects of Zhongfu Shenying is steadfast in driving sustainable enterprise development through technological innovation
Standardized product realization process quality improvement. Encouraged employees to shouldering the national responsibility in the field of new materials. Rooted in independent innovation the Company
management and strengthened production process actively contribute ideas for quality enhancement aligns with international advanced carbon fiber manufacturing technologies and standards continuously promotingstability. further solidifying and advancing quality the diversification and high-end application of its products. Faced with industry "bottleneck“6 technical challengesimprovement efforts. the Company has leveraged its four core technology systems to drive independent innovation advancing the evolution
of carbon fiber industry through four generations of technology. It has achieved breakthroughs in core technologies
and equipment including ultra-large-capacity polymerization high-speed dry-jet wet spinning rapid homogeneous
pre-oxidation and carbonization fiber surface treatment and refined process control. These efforts have accelerated
the efficiency of core technology breakthroughs and the transformation of achievements continuously enhancing
product competitiveness. Additionally the Company has strengthened intellectual property management elevated the
level of technological innovation and promoted high-quality industry development with an open and equitable
scientific research spirit.This year the proportion of R&D investment in the Company's operating income has increased by
2.55% percentage points.
Quality Risk Identification Encouraging Employee Suggestions
High-capacity polymerization High-strength/medium-modulus
and homogenization raw liquid "Four Core" carbon fiber precursor dry-jet wet spinning
preparation technology Technology key technology
Strengthening Quality Testing Capabilities SystemLarge-capacity homogeneous high
efficiency oxygen carbonization 10000-ton full-process high performance carbon fiber independent production
This year the Company's testing center successfully passed the CNAS system re-evaluation and expanded the testing preparation technology technology
items and methods for polyacrylonitrile-based carbon fibers achieving a recognized capability scope of 23 items.Additionally the Company innovated and improved 9 testing methods enhancing testing efficiency and accuracy
while effectively reducing testing costs providing solid support for ensuring product quality. In 2024 the Company's
testing center achieved a 100% accuracy rate and a 100% timeliness rate for test results. Enhancing Innovation and R&D Capabilities
Zhongfu Shenying implements innovation management regulations such as the "Work Plan for Further Enhancing
Enterprise Technological Innovation Capabilities" and strictly adheres to a series of rules and systems including the
"Research Project Management Measures" to continuously improve R&D efficiency and the transformation rate of
innovative achievements. The Company adheres to the core principle of integrating "R&D production and market"
building a R&D system centered on "discovering clues and creating value." It continuously optimizes the three-line
management model of "project-based R&D activities performance-based achievement evaluation and systematic
product development" achieving a virtuous cycle of technology flow and value flow and facilitating the efficient
transformation of technological innovation into new productive forces.To further strengthen innovation and R&D capabilities the Company has implemented various technical personnel
grouping systems including technician grouping team leader project leader product leader market leader and
departmental military orders to stimulate the innovation vitality and collaborative efficiency of R&D teams.Additionally the Company actively improves the professional title evaluation and appointment system opens and
broadens promotion channels for technical positions and continuously refines the distribution mechanism. It
establishes a scientific research performance evaluation system centered on positive incentives to enhance the
enthusiasm of researchers.
6. Refers to being restricted in key technologies or resources and not being able to control them independently thus affecting the development of the
whole project or industry.
59 60Sustainable Development Column Governance Environment Social
Case Zhongfu Shenying 2024 Scientific Research Work Meeting In 2024 Zhongfu Shenying successfully achieved the following key R&D milestones and expanded the application of
Zhongfu Shenying convened the 2024 Annual Scientific carbon fiber across multiple fields:
Research Work Meeting. The meeting began with an Global Breakthrough: Developed the world's first industrialized high-strength high-modulus SYM50X carbon
overview of the Company's patents and R&D fiber and high-strength high-modulus M46X-grade carbon fiber. √
achievements for the year systematically analyzing the Technical Maturity Certification: Successfully passed the carbon fiber technical maturity evaluation by the
current state of technological innovation discussing China Chemical Fiber Association achieving Level 8 maturity for M40-grade carbon fiber technology and Level √
existing technical development needs and outlining 7 maturity for M40J-grade carbon fiber technology. Notably SYM40 was applied in the electronics 3C field.the direction for the 2025 scientific research efforts. The Aerospace Advancements: Completed the development of dry-jet wet spinning engineering preparation
conference further clarified the strategic plan for the technology for M55J-grade and M60J-grade high-modulus products and conducted application verification
Company's technological development driving the on structural components such as satellites. Additionally initiated verification of high-temperature toughened √
upgrade and breakthrough of core technologies and epoxy resin prepreg and became an emergency alternative material evaluation supplier for domestic large aircraft.laying a solid foundation for the high-quality
advancement of the Company's scientific research Construction and New Energy Applications: Successfully applied dry-jet wet spun T700-48K large-tow carbon
2024 Scientific Research Work Meeting
initiatives. fiber in bridge cable stays the world's longest 131-meter onshore wind turbine blades and the world's √longest 147-meter offshore wind turbine blades.High-End Sports and Leisure: Successfully utilized T1100-grade and M40X-grade carbon fiber in premium
At the same time the Company continues to advance the construction of a full-process R&D platform establishing a sports and leisure products. √
"technology R&D - engineering testing - industrialization verification - applied research" R&D platform. It has developed
a collaborative R&D model across Lianyungang Xining and Shanghai while refining the analysis and evaluation system
to effectively ensure the smooth progress of R&D efforts. Strengthening Intellectual Property Protection
Case Zhongfu Shenying's Xining Company Approved as National Postdoctoral Research Station
Zhongfu Shenying upholds the protection of intellectual property (IP) as a core element in encouraging employee
In August 2024 Zhongfu Shenying's Xining Company was approved as a national postdoctoral research station. innovation and ensuring fair competition. This year the Company strictly adhered to the national "Enterprise
This approval marks a new milestone in the construction of the Company's technological innovation platform Intellectual Property Management Standards" and engaged professional institutions to optimize its internal
signifying its enhanced capabilities in fostering the deep integration of industry academia and research. It holds regulations including the "Patent and Thesis Management Measures" "Intellectual Property Management System"
significant importance for attracting and cultivating high-level scientific research talent improving technological and "Technical Secrets Protection Management Measures." This effort further refined the IP management system establishing a comprehensive end-to-end IP protection framework.innovation capabilities and promoting the transformation and application of scientific and technological
achievements. To ensure the efficient transformation and full protection of the Company's technological innovations we established
an IP management working group. This group is responsible for formulating the Company's IP strategic plans making
decisions on major IP matters guiding the direction of IP work and driving the high-quality development of IP
initiatives thereby safeguarding the Company's innovative achievements from infringement.We rigorously manage the IP transformation process continuously monitor IP infringement risks and place special
emphasis on overseas IP risk prevention and control. By engaging professional third-party agencies we strengthen the
monitoring of product infringement activities to avoid violating others' IP rights. Additionally the Company regularly
conducts IP training for personnel mastering key core technologies fostering a positive atmosphere for IP protection.Case Zhongfu Shenying Intellectual Property Training
In April 2024 Zhongfu Shenying organized a patent training session
with simultaneous sessions held at its Xining and Shanghai branches.The event covered all R&D personnel from the headquarters and its
affiliated companies. The training provided a comprehensive
explanation of the fundamental concepts of intellectual property
basic knowledge of patents the patent application process and the
Company's patent management system. This initiative aimed to
enhance the understanding and application of patent knowledge
among R&D staff safeguard the transformation of technological
innovation achievements and strengthen the protection of
intellectual property. It also contributed to the high-quality
enhancement of the Company's core competitiveness. Zhongfu Shenying's first intellectual property training session
61 62Sustainable Development Column Governance Environment Social
This year we continued to strengthen our global intellectual property layout: Promoting Industry Exchange
* Filed 1 international patent application through the PCT (Patent Cooperation Treaty) bringing the total number of
PCT patents applied by the Company to 6 (with 4 already entering the European application phase). The Company is committed to fostering a collaborative ecosystem within the industry. This year Zhongfu Shenying
* The Company's patent "Method for Preparing Low-Ash Polyacrylonitrile-Based Carbon Fiber" was awarded the actively participated in industry exhibitions promoted industry exchange and worked with partners to drive industry
Silver Prize at the 25th China Patent Awards by the National Intellectual Property Administration. development.* Actively pursued patent pre-examination or priority examination to expedite the patent review process and
accelerate patent authorization.JEC World 2024
Zhongfu Shenying's Core R&D Performance in 2024
In March 2024 Zhongfu Shenying showcased its flagship products including
SYT49S-24K and SYT50S-36K as well as the world's first dry-jet wet spun 48K
Total Patent including invention utility model design large-tow carbon fiber series at JEC World in Paris. The exhibition highlighted
Applications patents patents patent the Company's advanced carbon fiber technologies and high-end products to
781 421 359 1 a global audience.
Newly Accepted Including Authorized including
Patents invention patents Patents invention patents
269 166 107 12 Shenzhen International Composites Industry Technology Exhibition (Shenzhen CCE)
In March 2024 Zhongfu Shenying made its second consecutive appearance at
by End of 2024 the Shenzhen CCE displaying its “Black Gold” series SYM40X SYT70 and
Cumulative comprising invention utility model design other high-performance products. The SYT49S series remained a highlight
Authorized Patents patents patents patent while new products such as 48K 36K and Y603 (T800-grade) prepreg
attracted significant attention demonstrating the Company's application
319 59 259 1 advantages in aviation new energy and sports industries.
Promoting Industry Collaborative Development SAMPE China 2024 Annual Conference
As a leader in the carbon fiber industry Zhongfu Shenying remains committed to driving the high-quality development In June 2024 Zhongfu Shenying participated in the SAMPE China 2024 Annual
of the sector. The Company continues to enhance communication and collaboration with research institutions Conference and the 19th International Advanced Composites Exhibition
effectively integrating industry academia and research to accelerate the transformation of scientific and technological showcasing its SYT70 SYT45S-48K and SYT49S series. The event highlighted
achievements. Actively partnering with leading enterprises in fields such as pressure vessels and carbon/carbon the Company's latest innovations in carbon fiber helping to expand its
composites Zhongfu Shenying has signed strategic agreements with key clients to leverage their respective strengths domestic and international markets and explore new business opportunities.strengthen resource integration and jointly advance the rapid development of the carbon fiber industry and the
localization substitution process.
63 64Sustainable Development Column Governance Environment Social
Shanghai International Composites Industry Technology Exhibition (Shanghai CCE) 15th China International Aviation & Aerospace Exhibition (“Zhuhai Airshow”)
In September 2024 at the Shanghai CCE the largest and In November 2024 the 15th China International Aviation
most influential composites exhibition in the Asia-Pacific & Aerospace Exhibition opened in Zhuhai. Zhongfu
region Zhongfu Shenying displayed its full range of Shenying showcased its key carbon fiber and composite
products including general-purpose high-end and products including the new M50X M55J and M60J-
flagship models. The Company also globally launched grade technologies. The Company gained significant
three new products: the world's first industrialized high- attention for being the first in China to achieve T1100-
strength high-modulus carbon fiber SYM50X-12K and grade mass production. Its T700 and T800-grade prepreg
high-interface performance dry-jet wet spun high- products matched with self-developed resin systems
modulus carbon fibers SYM55J-6K and SYM60J-6K. also attracted numerous inquiries highlighting Zhongfu
Additionally Zhongfu Shenying's SYT45-3K carbon fiber Shenying's strong contribution to the aerospace
won the CCE-JEC Innovation Product Award further industry.demonstrating the Company's innovation capabilities.promote industry co-creation Strengthen enterprise-university collaboration
Guided by the philosophy of "Advancing Together Creating the Future" in university-enterprise collaboration the
Company strategically focuses on integrating industry academia and research actively expanding cooperation and
exchange with universities. By deeply exploring talent cultivation and broadly extending scientific innovation the
Company is dedicated to building a mutually beneficial ecosystem for university-enterprise partnerships. We invite
faculty and students to visit our exhibition halls and production workshops helping them gain a thorough
understanding of the carbon fiber production process. Through engaging with our team we aim to attract more
outstanding talents to the carbon fiber industry injecting continuous vitality into its long-term development.Case University-Enterprise Collaboration to Cultivate Emerging Industry Talent
This year the Company partnered with Northwestern
Polytechnical University (NPU) to organize a visit for a 6-
member doctoral team from NPU. The team toured the
Company's exhibition hall and production lines followed
by a discussion session focused on the university and
enterprise profiles talent cultivation and talent needs.This initiative not only strengthened the connection
between the Company and academic institutions but
also provided students with a more intuitive and in-depth
understanding of the industry. It facilitated the sharing of
high-quality resources and complementary strengths
between the university and the enterprise laying a solid
foundation for mutual collaboration and win-win
outcomes.Shenyang Shanghai Product Exhibition Hall
65 66Sustainable Development Column Governance Environment Social
Steadfastly Advancing Intelligent Implementing Intrinsic Safety
Development
Zhongfu Shenying consistently upholds the safety production philosophy of "embedding safety in the heart" and
adheres to the safety production policy of “safety first prevention led” and comprehensive management." With the
Zhongfu Shenying adheres to the philosophy of "driving business with data and enhancing efficiency with intelligence" goals of "no responsibility accidents causing minor injuries or above throughout the year" and "zero fatalities" the
in its informatization development. The Company has established an informatization leadership group with the Company has fostered a unified safety culture across all levels ensuring that "everyone emphasizes safety in everything
General Manager as the primary responsible person supported by an informatization working group led by they do." Zhongfu Shenying continues to drive improvements in safety governance at all levels implementing intrinsic
management to promote the Company's informatization strategy and cybersecurity initiatives. Focusing on safety to safeguard the Company's stable orderly and high-quality development.innovation-driven development the Company prioritizes three key areas: safety management procurement cost
control and information security. It comprehensively advances refined operations and digital transformation to
support efficient and high-quality development. This year the Company experienced no negative incidents related to The Company leverages technology as a guide and In 2024 the Company invested
information security breaches. management enhancement as a tool relying on the
application of digital and intelligent production 17.97 million yuan
facilities and management systems combined with
Intelligent Safety Management System continuously refined safety management systems to in safety production
Established an intelligent safety management and "Five-in-One" platform deeply integrating steadily enhance intrinsic safety capacity building.cutting-edge technologies such as video AI and high-precision facial recognition. The platform
combines core functions including safe office operations education and training dual prevention
Safety mechanisms hazard monitoring and risk control and precise personnel positioning. This achieves
Management intelligent efficient and comprehensive safety management building a digital defense line for
enterprise production safety (see the "Implementing Intrinsic Safety" section of this report for
details).Empowering Intrinsic Safety with Technology
Intelligent Procurement Management Platform
Zhongfu Shenying is committed to building an intrinsically safe enterprise continuously improving employee safety
Utilized an online platform to integrate high-quality supplier resources and optimize procurement skills and enhancing the Company's safety production conditions. The Company conducts comprehensive intrinsic
processes. Through automated procurement data analysis and forecasting the platform safety improvements across equipment and facilities personnel conditions management processes and operational
Procurement effectively reduces procurement costs enhances procurement efficiency and supports optimal environments.Cost Control resource allocation for the enterprise.This year the Company established a smart safety information platform and fully integrated the "Five-in-One" and
dual-system digital safety management platforms achieving digital management of all safety production elements.Guided by the principles of "automation intelligence and informatization" the Company accelerated the
Intelligent Information Security Technology modernization of management processes and the standardization of operational procedures promoting quality and
Introduced advanced cybersecurity technologies and equipment to construct a comprehensive efficiency in safety management and effectively enhancing intrinsic safety levels.network security management system. This effectively defends against external cyberattacks
Information ensuring the stable operation of the enterprise's information systems.Security
Zhongfu Shenying Invites External Third Party to Conduct Training on
Information System Protection Products
To further enhance the Company's cybersecurity management capabilities Zhongfu Shenying actively organized
cybersecurity training. This year the Company invited an external institution to provide on-site training on information
system protection products.
67 68Sustainable Development Column Governance Environment Social
Building an Intelligent Safety Production Management System
Improved working Install toxic and combustible gas detection and alarm systems linked with on-site fans
environment and emergency shutdown systems to ensure employee safety.New Video AI Alarm System
We prevent personnel from entering hazardous areas by using electronic Implement a “one-face-pass” access control system to monitor the entry and exit
fences and intelligent alarm systems. During collaborative operations the Facial recognition times and frequencies of employees registered in the system. Capture real-time images
system manages personnel positioning to avoid mechanical injuries caused access control of unfamiliar individuals not registered in the system and issue alerts to ensure
by misalignment. At the same time the system automatically records effective control of personnel access.employee violations and notifies supervisors via SMS or app messages
enabling real-time automatic alerts for violations.Video AI Alarm System
Through the “Related Party Management” module of the platform unify the
management of enterprise qualifications and personnel information for both fixed and
Related party temporary external contracting units. Effectively monitor the work conditions of
management external personnel issue alerts for non-compliant enterprises and individuals and take
New Hazardous Work Approval System measures such as information updates or removal from the site to ensure the
standardization and safety of external contracting unit management.We implemented hierarchical and classified management of hazardous
operations in line with the national "Safety Specifications for Special
Operations in Hazardous Chemical Enterprises" (GB 30871-2022). It ensures
that the next step in the approval process cannot proceed until the previous
step is completed including personnel information risk identification and
on-site measures with photos uploaded to the platform. This prevents safety
incidents caused by inadequate implementation of on-site measures. Work Approval SystemComprehensively integrate and improve the “Chemical Informationization -Dual Mechanism Edition” safety management platform:
Major hazard Implement video surveillance and monitoring and early warning of key indicators (such
monitoring as temperature pressure and liquid level in tank areas) for major hazards.Full-process Adopt full automation for chemical processes to avoid safety injuries caused by on-site
automation personnel operations. An independent safety instrumented system (SIS) from the
retrofit production system is used to provide emergency shutdown or venting in the event of
potential safety risks.Automated Use automated robotic arms in packaging workshops to reduce the risk of safety Hazard Monitoring Platform
robotic arms injuries to personnel during the packaging process.
69 70Sustainable Development Column Governance Environment Social
Empowering Intrinsic Safety through Management Safety Production Management System
Zhongfu Shenying has established a top-down health and safety management structure including the Board of
The Company strictly adheres to laws and regulations such as the "Work Safety Law of the People's Republic of China" Directors the Headquarters Safety Production Management Committee and the Subsidiary Safety Production
and the "Occupational Disease Prevention and Control Law of the People's Republic of China." It has established Management Committees. A Safety Director has been appointed at the headquarters to oversee the Company's health
management measures including the "Work Safety Management Manual" and the "Occupational Health Management and safety matters. We emphasize the safety management principles of "horizontal coverage vertical depth" and "one
System" to define health and safety management processes at all levels providing employees with comprehensive position one responsibility" clearly defining safety management responsibilities at all levels continuously clarifying
occupational health and safety protections. This year Shenying Xining revised 58 safety-specific management systems safety management processes and facilitating communication channels between different levels to lay a solid
and 19 process and equipment-specific management systems based on actual production and operational conditions foundation for the orderly implementation of safety work. By the end of 2024 all production bases of the Company
continuously improving the Company's work safety management framework. have obtained ISO 45001 Occupational Health Management System certification.To strengthen the foundation of work safety and fundamentally eliminate potential hazards the Company developed
the "Three-Year Action Plan for Fundamental Work Safety Improvement (2024–2026)" and a task list. It also established Board of Directors"Five Strengthening Measures“7 to ensure the effective implementation of work safety tasks accelerate theenhancement of intrinsic safety levels and prevent various production safety incidents.As the highest governing body for safety-related matters the Board of Directors is responsible for overseeing the
Three-Year Action Plan for Fundamental Improvement in Work Safety (2024–2026) Company's safety production management.Work Objectives Main Tasks
Deepen the effectiveness of the special action for work Special treatment of hazardous chemicals and Headquarters Safety Production Management Committee
safety rectification and improvement. other key high-risk areas
Strengthen the concept of coordinating development Major accident hidden danger investigation The SPMC serves as the leadership and decision-making body for the Company's safety management with the
with work safety. and rectification project General Manager as its highest authority. It formulates and promotes the effective implementation of safety
Improve the work safety responsibility system and the management policies organizes and deploys safety production management tasks and is responsible for the
mechanism for preventing and controlling safety risks. Construction of intelligent production safety execution and supervision of the Company's safety management and performance.management system
Enhance the level of inherent safety and the skills and
qualities of personnel. Special rectification of special work
Subsidiary Safety Production Management Committees
Perfect the risk monitoring and early warning system as Accident Alert Education and Quality
well as the basic support and guarantee system. Improvement of Employees
Transform the safety governance model for hazardous These committees are responsible for carrying out the safety management tasks delegated by the headquarters.chemicals towards pre-incident prevention. They are established within each subsidiary and include subcommittees for special operations fire safety
management and equipment management. The General Manager of each subsidiary serves as the primary
responsible person overseeing daily safety production matters monitoring identifying and managing health
In 2024 the Company established and achieved the following health and safety goals. In 2025 we will continue and safety risks ensuring the effective implementation of various safety management measures and regularly
to strive to achieve the following health and safety goals: reporting to the headquarters.
000.05%
fatalities in work safety accidents for work safety responsibility accidents The work safety accident rate will
which the Company is responsible resulting in minor injuries or above not exceed
00
new cases of occupational diseases fire explosion or acute poisoning accidents in production and operation
sites or construction sites for which the Company is responsible
100% completion rate for the rectification of major hidden dangers
7. “Five Enhancements”: Enhancing organizational leadership enhancing coordinated advancement enhancing supervision and service enhancing
exemplary guidance and enhancing assessment and accountability.
71 72Sustainable Development Column Governance Environment Social
Safety Production Risk Prevention and Control In 2024 Shenying Dapu conducted a systematic evaluation of the equipment in the acrylonitrile tank area and invited third-party professional institutions to inspect the pipelines. Old equipment in the tank area was replaced with newer
safer alternatives. Shenying Xining conducted a major hazard source assessment for the acrylonitrile tank area and
Zhongfu Shenying is committed to managing and preventing production safety risks from the source emphasizing the filed it with government authorities further strengthening on-site safety management to ensure employee safety.principle that "safety must be managed in all industries all operations and all production and business activities."
Guided by the principle of "continuous improvement and optimal operation" the Company has established and The Company has formulated the Safety Production Assessment and Reward-Punishment System incorporating
implemented the "Three Lists and One Linkage " 8mechanism. health and safety indicators such as the number of minor injury and above safety responsibility accidents and the
work-related injury rate into employee performance evaluations. These indicators are updated annually based on
We continuously deepen the safety risk management principles of "full participation full-process control and full- safety risk identification results. In the event of a safety production accident the Company will impose disciplinary and
direction coverage" formulating the Zhongfu Shenying Dual Prevention Mechanism Digital Application Enhancement financial penalties on responsible parties according to the severity of the accident. For major safety production
Implementation Plan. This plan enforces the dual prevention systems of "risk hierarchical control" and "hidden hazard accidents we implement a "one-vote veto" system leading to the dismissal of responsible personnel.investigation and management." After risk identification we establish safety production risk ledgers and hidden hazard
investigation forms employing risk prevention risk control and hazard investigation to avoid accidents and achieve In terms of accident investigation and remediation the Company has established the Production Safety Accident
systematic management of health and safety risks. Management System which sets stricter standards than national regulations. This system clearly defines accident
investigation procedures and remediation measures. In the event of an accident the Company will immediately
This year we adopted a multi-department collaboration mechanism to conduct safety hazard investigations and activate the emergency response mechanism initiate rescue operations at the first opportunity and promptly report
engaged external experts to enhance our hazard investigation capabilities. The Company requires all employees to the incident to the local government and higher-level Company authorities.fully understand the risk points of their positions and perform daily inspections according to plan ensuring
comprehensive coverage of both professional content and specific locations. Additionally the Company forms accident investigation teams to conduct a comprehensive analysis of the causes ofaccidents following the "Four No Letting Go” principle. Based on the investigation results responsible parties are
In 2024 dealt with seriously. After the investigation the Company organizes accident warning education for all employees to
ensure relevant personnel receive adequate training and education. Furthermore the Company develops detailed
the Company organized nearly identified over supplemented and refined rectification measures based on the causes of the accident and ensures their effective implementation to prevent
181 4257 9704 similar incidents from recurring.
specialized safety inspections hidden hazards risk factors Ensuring the Safety of Outsourced Employees
completed over achieving a hidden hazard Zhongfu Shenying applies the same occupational health and safety management standards to outsourced employees
110 rectification rate of over as to Company employees. The Company has established internal systems such as the Contractor Safety Management 99% System and the Contractor Safety Responsibility Management Measures. Before outsourced employees enter the site safety improvement projects safety education and training are conducted and safety risks and countermeasures are communicated to ensure they
fully understand the risks.We strictly control the occupational health and safety management capabilities of contractors. Before signing
contracts we review the contractor's qualifications and personnel credentials (e.g. special operation certificates) and
sign safety management agreements with them. Contractors are required to purchase health and safety insurance for
their employees to ensure their safety. Additionally we conduct annual safety reviews of contractors and implement a
blacklist system disqualifying contractors with multiple violations or fraudulent credentials from future cooperation.Occupational Disease Detection and Prevention
Zhongfu Shenying places great emphasis on occupational disease prevention and is committed to providing
employees with a healthy and safe working environment. In accordance with the Workplace Occupational Health
Management Regulations and other relevant systems the Company has formulated an occupational disease
prevention plan and control implementation plan. Annually we conduct hazard factor testing for all job positions and
provide pre-employment on-the-job and post-employment occupational health check-ups for all employees. If an
Zhongfu Shenying Work Safety Bulletin Board On-site Safety Hazard Investigation employee is found unfit for a specific position after the check-up they are reassigned or not hired. Additionally we
equip all employees with qualified personal protective equipment and monitor its proper use to safeguard their health
and safety.
8. "Three Lists and One Linkage": This refers to the implementation of the "Three Lists"—Risk List Control List and Responsibility List—while linking safety
risk management with employee performance evaluations.
73 74Sustainable Development Column Governance Environment Social
Cultural Empowerment for Intrinsic Safety Comprehensive Emergency Rescue Drill
Zhongfu Shenying places great emphasis on and meticulously deploys the construction and promotion of safety
culture. The Company actively conducts various safety culture exchange and training activities to continuously
enhance employees' safety awareness.Emergency Drills for Unexpected Incidents
To effectively respond to sudden safety accidents the Company has continued to improve its emergency response
measures for natural disasters this year. The Production Safety Accident Emergency Plan has been revised detailing
key aspects such as disaster warning emergency response personnel evacuation and resource allocation. The
Company has refined the emergency management mechanism characterized by "unified command hierarchical
management clear responsibilities resource sharing and quick response." The Emergency Management Office is
responsible for overall coordination while the emergency command organization handles specific incident responses
continuously improving the Company's emergency rescue command capabilities and overall response effectiveness.Additionally Shenying Xining formulated and issued the Special Emergency Plan for Mechanical Injury Accidents
procured emergency rescue equipment and established emergency material storage points in key areas. Regular
training on the use of emergency equipment is provided to ensure all employees are proficient in operating emergency
tools enabling swift and effective actions in emergencies.This year the Company actively conducted various types of emergency drills at all levels with a total safety
investment of 892100 yuan including:
Comprehensive Special plan On-site emergency
emergency drills emergency drills response plan drills
4 times 63 times 213 times
involving involving a total of involving a total of
183 participants 678 participants 1462 participants
75 76Sustainable Development Column Governance Environment Social
Deepening Safety Awareness Training and Promotion Case Shenying Dapu Conducts Special Training on Injury Prevention and First Aid Knowledge
In 2024 Shenying Dapu organized and conducted special training on injury prevention and first aid knowledge inviting
To comprehensively enhance employees' safety awareness the Company in accordance with internal systems such as external experts to provide on-site guidance. A total of 35 participants including workshop team leaders and safety
the Training Management System and the Safety Production Manual has leveraged digital systems to conduct various management personnel from various departments attended the training. Through hands-on demonstrations the
types and forms of safety awareness training in an orderly manner. In 2024 the Company provided safety training to training effectively enhanced employees' safety awareness and self-protection capabilities.
45675 participants. During the Safety Production Month the Company organized the "First Responsible Person Talks
Safety" themed training and assessed the training outcomes of all mid-level and above cadres achieving a 100% pass
rate."First Responsible Person Talks Safety" Themed Training
Shenying Dapu Conducts Special Training on Injury Prevention and First Aid Knowledge
In 2024 the Company conducted six specialized safety training sessions on confined space operations hydrogen
peroxide/ammonia usage and other topics covering 10311 participants. Shenying Xining organized 16 batches of Zho中n复g神fu鹰 S开h展e安n全y月in知g识 H竞赛olds Safety Month Knowledge Competition
safety training for new employees involving 449 participants with corresponding assessments conducted. Those who
did not pass the assessment were not hired by the Company.The content covered multi-level safety training including new employee onboarding training
factory-level training certification training for special operations personnel and internal training
for safety management personnel. The themes encompassed four major areas: production safety
occupational health fire safety and environmental protection.Throughout the year a total of 1103 safety education
Safety
training achieving a coverage rate of 100%
training sessions were conducted involving 45675 participants
Zhongfu Shenying's 2024 Safety Month Knowledge Competition
77 78Sustainable Development Column Governance Environment Social
Fully Safeguarding Employee Rights Compensation and Performance
Based on internal systems such as the Zhongfu Shenying Carbon Fiber Co. Ltd. Compensation Plan the Executive
Compensation Management Measures and the Total Wage Management Measures the Company has established an
Zhongfu Shenying adheres to the core development philosophy of "people-oriented" and is committed to creating a employee hierarchy system emphasizing the integration of the compensation system with performance evaluation
fair just diverse and inclusive working environment. We continuously improve the employee rights protection system results. This year the Company formulated the Management Member Tenure and Contractual Management Measures
enhance communication channels and strengthen talent team building and development laying a solid talent and the Management Member Performance Evaluation Measures and revised the Mid-Level Cadre Performance
foundation for the Company's sustainable development. Evaluation and Compensation Management Measures to further motivate management personnel and enhance team
Zhongfu Shenying strictly complies with laws and regulations such as the Labor Law of the People's Republic of China collaboration and operational efficiency.and the Labor Contract Law of the People's Republic of China. This year the Company revised seven internal systems Linking Sustainable Development Performance to Executive Compensation
including the Employment Management System further clarifying regulations on employee recruitment and
termination talent cultivation and development performance evaluation and compensation promoting the scientific The Company links sustainable development performance to the General Manager's compensation signing the 2024
and standardized management of employment practices. Annual Business Performance Responsibility Agreement for the Management Layer and General Manager. Quantitative
and qualitative performance goals related to environmental social and governance (ESG) aspects including
technological innovation carbon reduction safety environmental protection and product quality assurance are set
and evaluated at year-end with the results impacting compensation.Implementing Employee Rights
Fair and Transparent Promotions
Recruitment and Termination The Company continuously improves the internal hierarchy management system further clarifying the conditions for
promotion demotion and exit at each level. To ensure fair and transparent promotions the Company adopts a
In accordance with relevant laws and regulations the Company has formulated and implemented internal systems competitive recruitment system publicly announcing vacant positions and allowing eligible employees to apply. In
such as the Zhongfu Shenying Carbon Fiber Co. Ltd. Employee Handbook (hereinafter referred to as the "Employee cases of unfair practices employees can report to relevant departments to ensure their rights are legally and
Handbook"). These systems emphasize the prohibition of discrimination based on gender ethnicity religious beliefs reasonably protected.age or region during recruitment promotion development benefits distribution and termination of labor contracts
ensuring fair and just treatment of every employee and safeguarding their rights.Promoting Diversity and Equality
The Company strictly prohibits the recruitment of child labor and forced labor. In line with laws such as the Law of the
People's Republic of China on the Protection of Minors and the Regulations on the Prohibition of Child Labor the
Employee Handbook explicitly states that child labor must not be employed. Additionally the Company requires new The Company continues to build a diverse and equal healthy workplace environment improving equal employment
employees to submit authentic and valid documents including identification before onboarding to prevent the hiring policies to ensure fairness in recruitment employment promotion and compensation. The Company values and
of child labor at the source. The Company signs labor contracts with employees based on the principles of equality and protects the rights of female employees empowering female talent and encouraging them to enhance leadership skills
voluntariness ensuring all employees are voluntarily employed. The Company also strictly monitors third-party and assume management roles.employment imposing severe penalties for illegal hiring practices to eliminate any instances of child labor or forced
labor. During the reporting period no cases of child labor or forced labor occurred.This year
The percentage of
female employees
in the Company 41.3%
reaches
The percentage of
female employees in
management reaches 28%
The percentage of
minority
employees 7.5%
79 80Sustainable Development Column Governance Environment Social
Open Communication Channels In 2024 the Company organized a series of diverse and engaging employee activities continuously enhancing employees' happiness and sense of belonging and strengthening team cohesion.The Company has established open communication channels for employees fully respecting their rights to
information participation expression and supervision. We have implemented a democratic management system Case Uniting Hearts Showcasing Vitality Winning the Future | Zhongfu Shenying's Third Employee Sports Conference Concludes Successfully
centered on the Workers' Congress widely collecting employee proposals during the congress understanding
reasonable suggestions promptly proposing improvement measures and monitoring their effectiveness. To enrich the cultural life of employees and encourage active participation in fitness activities the Company
We advocate for a transparent communication mechanism encouraging sincere and friendly communication among successfully held its third Employee Sports Meet this year. Nearly 800 participants formed 14 teams to compete in
employees and between different levels of management fostering a harmonious and collaborative work environment. various events helping employees unwind from their busy work schedules enhance their physical fitness and
This year we conducted a comprehensive employee satisfaction survey collecting feedback through questionnaires strengthen the cohesion and unity of the entire Company.and interviews to better understand employee needs.Employee Care and Support
Zhongfu Shenying is committed to growing together with its employees continuously practicing the value of
"employees first" and prioritizing their physical and mental health. We strive to build a warm and responsible
employer brand providing various benefits to employees and their families and fostering a caring corporate
atmosphere.Zhongfu Shenying's Third Employee Sports Conference
We organize annual health check-ups for all employees helping them understand their
physical condition comprehensively. We also offer critical illness insurance and employee
Employee mutual aid insurance to provide effective protection.Health Case Summer "Cooling Relief" | Zhongfu Shenying's Workshop Employee Care Activity
This year facing the ongoing challenges of high temperatures Zhongfu Shenying launched the "Cooling Relief"
initiative to ensure effective heatstroke prevention and cooling measures. We equipped workshops with air-
conditioned rest areas placed ice blocks for cooling in non-air-conditioned zones arranged for the canteen to prepare
mung bean soup daily and provided unlimited salted soda water. These thoughtful measures ensured the health and
We conduct special support initiatives such as birthday maternity retirement and well-being of our employees.bereavement support benefiting 3372 employees throughout the year. We also carry out
Employee "warmth delivery" assistance programs supporting 34 employees in need. This year we
Support donate 43400 yuan for this program.We provide scholarships to 13 employees' children admitted to universities and assist 10
Employee children of employees in financial need through the "Golden Autumn Assistance" program
Children's to apply for financial aid.Education
Assistance Summer Cooling Relief: Preventing Heatstroke and Ensuring Well-being
81 82Sustainable Development Column Governance Environment Social
Safeguarding Employee Family Welfare Case Zhongfu Shenying's International Women's Day Series of Activities Successfully Held
The Company is committed to providing employees with diverse and high-quality welfare benefits. In terms of family To enrich the daily work and life of female employees Zhongfu Shenying headquarters organized a variety of activities
welfare we offer paid maternity leave parental leave only-child nursing leave and family visit leave. Additionally we for International Women's Day this year including film screenings on legal education professional photo shoots and
have established nursing rooms to provide female employees with a safe comfortable and private environment for fun sports events. Shenying Xining and Shenying Shanghai respectively organized floral arrangement activities and a
breastfeeding and rest. series of handicraft activities themed "Polishing Sand into Pearls Refining Craftsmanship." Additionally on the day of
the festival the Company distributed holiday benefits to all female employees extending sincere holiday greetings and
expressing gratitude for their dedication and professionalism in their daily work.Maternity Leave Parental Leave Nursing Leave Family Visit Leave
Female employees are Employees can enjoy 10 Employees who are only Employees who do not
entitled to one hour of days of paid parental children are entitled to 5 live with their parents
paid maternity leave per leave per year until their days of paid nursing and cannot reunite
day during the child reaches the age of leave per year when their during public holidays
breastfeeding period. three. parents aged 60 or may be granted
above are hospitalized approximately 20 days of
due to illness. family visit leave with
round-trip travel
expenses reimbursed by
the Company.The Company also focuses on enhancing welfare for female employees continuously organizing
team-building activities and holding forums to listen to their voices. We provide female employees
with top-tier insurance and maternity insurance and offer specialized health check-ups to
consistently support their physical and mental well-being.Case Warmth to the Frontline: Workshop Female Employee Appreciation and Forum Shenying Xining and Shenying Shanghai Organize International Women's Day Series of Activities
To effectively fulfill the role of the labor union in leading
connecting and serving employees the Company's vice-
chairman of the labor union visited production lines this
year engaging in forums with female employees in
various workshops and extending holiday greetings and
heartfelt wishes. During the meetings the vice-chairman
had warm conversations with frontline female employees
understanding their work and life situations. He
acknowledged their dual responsibilities in balancing
family and work reflecting the responsibility and
commitment of women in the new era and encouraged
them to continue carrying forward the fine tradition of
women excelling in their roles making contributions in Workshop Female Employee Appreciation and Forum
their positions.
83 84Sustainable Development Column Governance Environment Social
Comprehensively Promoting Talent Case The Second Science and Technology Awards Conference of Zhongfu Shenying
On February 19 2024 Zhongfu Shenying held the Second Science and Technology Awards Conference to honor
Development collectives and individuals who have made significant contributions to technological innovation and scientific advancement. The conference aimed to thoroughly implement the innovation-driven development strategy and foster
a work environment that respects labor knowledge talent and creativity. A total of 36 projects were awarded
including 9 Science and Technology Progress Awards 19 Technological Innovation Awards 2 Patent Awards 5
Technical Report Awards and 1 Excellent Project Management Award. The awards recognized 198 individuals further
Zhongfu Shenying places high importance on the personal growth and career development of its employees striving motivating the enthusiasm and creativity of scientific and technological workers and promoting the Company's
to build a diverse and dynamic talent pool. The Company is committed to creating a multifaceted equitable and scientific and technological progress and innovative development.healthy professional development environment for its employees. We provide comprehensive talent development
pathways a robust talent cultivation system and mechanisms to enhance employees' professional capabilities in all
aspects. This supports employees in realizing their personal value and aligns with the "Talent Strengthens the
Enterprise" strategy.Perfecting the Talent Cultivation System
The Company steadily promotes the construction of the "Four Hearts" talent cultivation system adhering to the
principles of prioritizing technological research and development and determining outcomes based on efficiency. We
emphasize the cultivation of professional skills and innovative capabilities among talents. Actively implementing
medium- and long-term incentive programs we have established an enterprise annuity plan that covers all levels of the
Company fully unleashing employees' potential and creativity.Strengthening the Culture of Innovation to Solidifying R&D Foundations to Make
Make Talents Feel “Belonging” Talents Feel “Confidence”
Developing a series of talent cultivation We are actively constructing high-level
plans we actively deploy initiatives to build high-performance talent and carbon fiber
an innovative culture systems and talent
teams. We have established a science and R&D platforms including national high-
technology awards conference system to tech enterprises postdoctoral research
encourage employees at all levels to stations provincial carbon fiber
pioneer innovation and strive to be role The Second Science and Technology Awards Conference of Zhongfu Shenyingengineering technology research
models.centers and provincial carbon fiber
The "Four Hearts" engineering centers
Talent Cultivation
System
Reforming Talent Cultivation Mechanisms Creating a Positive Research Atmosphere
to Make Talents Feel “Expectation” to Make Talents Feel “Assurance”
Focusing on top-level architecture salary We have established a results-oriented
evaluation mechanism and an innovation-
and benefits achievement rewards and life centered error-tolerance mechanism
security we ensure the treatment of dedicated to fostering a research
researchers and establish project-based environment that encourages bold
thinking and action.personalized cultivation plans.
85 86Sustainable Development Column Governance Environment Social
Strengthening the Talent Cultivation Mechanism Core Training Performance
This year the Company training sessions on topics such as job skills quality systems safety production
To continuously improve the talent cultivation mechanism the Company has revised the "Training Management and regulations
System" in line with industry development trends and its own business needs. Adopting a classified and hierarchical
training approach we are constantly deepening and expanding the scope and depth of talent development. With a total of
Additionally within the framework of the "Annual Training Plan" we have defined annual training objectives rationally
planned and managed training resources and continuously enhanced the effectiveness of training and the conversion 1711 training sessions
rate of learning outcomes.With a cumulative attendance of
To enhance the Company's talent development environment and improve employees' 55575 participants
professional competence the Company has established a "Internal Trainer System" covering all
levels of employees based on the "Internal Trainer Management Guidelines." We have formed an Safety Production Training
internal trainer team and strengthened its management to standardize the training process.In line with the Company's strategic needs and business characteristics we provide
Internal comprehensive training for internal trainers including courses on training system promotion
Trainer training process standardization and training material compilation and submission. This provides
Cultivation strong support for the smooth implementation of the Company's training programs. In 2024 we Establishing a Talent Reserve System
System organized an internal trainer evaluation meeting and selected 10 trainers to be awarded instructor
certificates. The Company is committed to building a diversified talent reserve system. We continuously refine the cultivation
mechanism for young cadres and collaborate with industry forces to foster innovative craftsmen thereby
strengthening the Company's high-quality talent pool and comprehensively enhancing its innovation level and market
To strengthen the Company's production management talent reserve the Company has competitiveness.established a two-tiered linkage cultivation management mechanism based on the "Production Strengthening the Reserve of Young Cadres Vigorously Cultivating Innovative Talents
Management Trainee Recruitment and Cultivation Plan." This mechanism involves workshop
supervisors overseeing and guiding the execution of the plan helping the Company achieve high-
New Talent
Cultivation quality talent team development. In 2024 37 employees participated in the cultivation plan
Plan achieving dual improvements in practical experience and professional capabilities. The Company continues to reinforce the construction The Company places high importance on the
of young talent teams injecting new vitality into its cultivation of innovative talents. This year we
development. We have established a targeted reserve spearheaded the establishment of the Jiangsu
cadre system for young talents standardizing the Province Carbon Fiber Industry Model Worker
To strengthen the effectiveness of talent cultivation the Company has enhanced the statistical selection and appointment process for young reserve (Craftsman) Innovation Studio Alliance contributing to
capabilities of employee training records based on the "Employee Training Record Book." This cadres. A comprehensive reserve cadre cultivation the industry's efforts to nurture more innovative
enables effective management and evaluation of employee training progress and outcomes plan has also been implemented. By the end of 2024 craftsmen. Additionally we actively carried out talent
Enhancing efficient identification of training needs and continuous optimization of training plans ensuring young cadres born in the 1980s and 1990s accounted project applications organizing 23 talent application
Effectiveness the scientific rational standardized and effective management of Company training.Evaluation for nearly 90% of the total cadres selected and projects this year with 32 individuals successfully
appointed across all levels. approved.
87 88Sustainable Development Column Governance Environment Social
Case The Official Inauguration of the Jiangsu Province Carbon Fiber Industry Model Worker (Craftsman) Innovation Studio Alliance
In December 2024 the Model Worker (Craftsman) Innovation Studio Alliance of the Carbon Fiber Industry in Jiangsu
Province (hereinafter referred to as the "Alliance") was officially inaugurated in Nanjing. The Alliance aims to thoroughly
study and implement the spirit of the Third Plenary Session of the 20th CPC Central Committee earnestly carry out the
"Opinions on Deepening the Reform of Industrial Worker Team Construction" issued by the CPC Central Committee and
the State Council vigorously promote the spirit of model workers labor and artisans and unite and lead model
workers and advanced practitioners in the carbon fiber industry to play a demonstrative and leading role. Focusing on
areas such as new product development industrial upgrading and application improvement the Alliance seeks to
further enhance the technological innovation capabilities and development levels of the carbon fiber industry.Inauguration Ceremony of the Jiangsu Province Carbon Fiber Industry Model Worker (Craftsman) Innovation Studio Alliance
Case Zhongfu Shenying Organizes Grassroots Employees to Apply for Scientific and Technological Innovation Achievements
In 2024 the Company organized grassroots employees to apply for 21 provincial and municipal "Five Small"
innovation projects. Among them 6 projects participated in the selection of outstanding projects in the Jiangsu
Province Employees' "Five Small" Activities and 3 won first and second prizes in the Xining City "Five Small"
Innovation Achievement Competition. Additionally the Company assisted grassroots employees in applying for
21 municipal scientific and technological innovation achievement awards for 2023 of which 6 were honored with
the titles of "Outstanding Innovation Achievements in Employee Innovation Activities" and "Advanced Employee
Operation Methods" this year.Awards from the "Five Small" Innovation Achievement Competition
87 88Sustainable Development Column Governance Environment Social
Deepening Corporate Responsibility Implementing Responsible Marketing
Operations Zhongfu Shenying upholds a customer-centric service philosophy continuously improving service quality and actively
responding to customer needs. The Company focuses on building a comprehensive and systematic service network
enhancing brand marketing capabilities through regular customer visits invitations to renowned domestic and
international exhibitions and the distribution of internal publications. This year the Company revised its customer
Zhongfu Shenying adheres to the principles of integrity fairness and transparency respects and management system to standardize daily sales processes and improve service communication efficiency.safeguards the legitimate rights and interests of partners and strives to build mutually beneficial and
trustworthy cooperative relationships. Together with our partners we are committed to creating a
sustainable operating environment. This year 100% of the Company’s suppliers signed anti-corruption Expanding High-End Markets
cooperation agreement.This year the Company deepened the application of carbon fiber in high-end manufacturing and clean energy sectors.Based on high-quality products and efficient R&D we steadily advanced in domestic and international markets further
solidifying the foundation of our "high-end" strategy.Implementing Green Procurement
Established a carbon fiber photovoltaic application technology research group to further develop and verify the
Supplier ESG Audits feasibility of carbon fiber applications in more areas.* Entry Stage:
A multi-department supplier evaluation team is established to review and conduct on-site audits of suppliers' Accelerated the expansion of overseas applications in pressure vessels wind power and sports sectors
environmental management occupational health and safety management and other ESG-related practices. conducting visits to key overseas clients and taking solid steps toward global expansion.Relevant documents such as the "Supplier Survey Form" and "Supplier Risk Assessment Form" are created.Only qualified suppliers are included in the list of approved suppliers.Routine Audits: Actively responded to the latest demands in the electronics 3C and new energy vehicle sectors engaging in in-depth *
communication with customers to broaden carbon fiber application scenarios.Methods such as document reviews and on-site inspections are used to conduct annual audits routine spot
checks and usage-phase inspections of suppliers ensuring continuous control over their ESG performance.* Performance Evaluation:
An annual performance evaluation is conducted for all suppliers including ESG-related performance
assessments. Suppliers with unsatisfactory evaluations are disqualified and the list of approved suppliers is
revised based on the results achieving dynamic supplier management.Enhancing Supplier ESG Awareness
* Advocate green procurement and give preference to suppliers with low-carbon and environmentally friendly
production processes under the same conditions so as to effectively promote the low-carbon development of
the supply chain.* Long-term suppliers are required to sign compliance agreements and other compliance agreements
requiring both parties to jointly comply with national laws and regulations and relevant internal management
regulations so as to ensure that the cooperation between the two parties is honest and transparent.
91 92Sustainable Development Column Governance Environment Social
Customer Complaint Management Follow-up Visit
The Company actively responds to customer complaints and consistently adheres to the "Delivery and Service Control Hotline
Procedures" ensuring that customer complaints are handled by designated departments following standardized 0518-86070008
processes and employing efficient resolution methods. The Company requires that complaints be acknowledged
within 24 hours and resolved within 48 hours ensuring prompt attention to customer feedback. Email After-Sales Feedback to After - sales
sales@zfsy.com.cn
Customer Specialist relevant solutiondepartments
This year to further optimize customer complaint management the Company implemented a series of
measures to enhance complaint handling efficiency: Website Sales Dept.Communication & Technical Dept.www.zfsycf.com.cn Solution Needs Identification Production Dept. Implementation
* Established a dedicated customer service team and provided professional training to improve Quality Control Dept.communication skills problem-solving abilities and emotional management thereby enhancing the
capacity to handle customer complaints. Generate After-Service Report
* Added after-sales service representatives and product delivery managers to provide one-on-one follow- Customer Complaint Handling Process at Zhongfu Shenying
up throughout the "pre-sale during-sale and post-sale" stages ensuring real-time tracking and timely
feedback on customer needs.* Expanded communication channels including phone WeChat and email to offer customers multiple Customer Satisfaction Surveys
ways to communicate.* Implemented a digital system to record and track complaints improving transparency in the complaint The Company continuously implements the "Customer Satisfaction Measurement Control Procedures" regularly
handling process. conducting satisfaction surveys covering product performance service quality and delivery timeliness to effectively
gather feedback on the Company's products and services. Based on the survey results the Company generates
* Adopted cross-departmental collaboration to identify and resolve recurring issues increasing satisfaction reports formulates targeted improvement plans and monitors the effectiveness of these measures
processing efficiency. ensuring a closed-loop management system for service enhancement.* Using scientific analysis to find the root of problems improve product quality step by step and boost
customer satisfaction.Strengthened customer privacy protection measures strictly adhering to privacy policies and requiring This year the Company set and achieved a management goal of maintaining an average satisfaction *
all employees to sign confidentiality agreements to ensure customer information is safeguarded score of no less than 95 for two consecutive years.maintaining customer trust.
93 94Sustainable Development Column Governance Environment Social
Dedicated to Creating Social Value
Case Celebrating New China Inspiring Young Minds | Zhongfu Shenying Hosts "Resource Efficiency Day" Open Event
Zhongfu Shenying actively fulfills its social responsibilities consistently focusing on the well-being of the communities In August 2024 Zhongfu Shenying hosted the fifth "Resource Efficiency Day" open event under the China National
where it operates. Leveraging its business and resource advantages the Company continues to support rural Building Materials Group themed "Celebrating New China Inspiring Young Minds." The event invited over 100 children
revitalization and public welfare initiatives contributing to social progress enhancing people's livelihoods and and family members of employees to immerse themselves in the Company's environment embarking on a warm and
realizing the vision of "a better life for the people." engaging "Shenying Walk." Participants visited the corporate exhibition hall to learn about the history and applications
of carbon fiber gaining insight into Zhongfu Shenying's commitment to national responsibility overcoming global
carbon fiber challenges and realizing the dream of "Made in China" carbon fiber. Additionally children participated in
carbon fiber tensile experiments deepening their understanding of its exceptional properties and sparking their
Demonstrations of Responsibility interest in scientific knowledge.Continuous Four-Year "Shenying Scholarship" Program
In October 2024 the Youth League Committee of Zhongfu Shenying's Xining branch
assisted providing a total of
6 impoverished students from Houyao Village 12000 RMB
Handong Township Huangzhong District in scholarships
Case Shenying Xining Boosts Rural Revitalization
Celebrating New China Inspiring Young Minds" Youth Science Open Day Event
In April 2024 responding to the Xining General Trade Union's call for rural poverty
alleviation Shenying Xining donated poverty alleviation funds and medicines worth
a total of 60000 yuan to 85 households in Xiakuan Village Duolin Town Datong
County Xining.Case Shenying Xining Launches Fundraising Campaign
In December 2023 a 6.2 - magnitude earthquake struck Jishishan County Linxia
Gansu Province affecting Zhongchuan Guanting and other townships in Minhe
County Hai dong Prefecture Qinghai Province and causing significant casualties
and property damage. The Shenying Xining Company Trade Union called for active
donations from its employees with 1965 people participating and a total of 89700
yuan raised demonstrating the cohesion and unity of the Company’s employees.Shenying Xining Donates Aid Funds Collective Fundraising for Jishishan Earthquake Relief
95 96Sustainable development KPIs9
Environmental KPIs
Indicator Unit 2023 2024 Indicator Unit 2023 2024
Energy Resources consumption
Comprehensive energy consumption tce 180371.63 163336.09 Consumption of non-renewable materials 10000 ton 4.35 3.89
Comprehensive energy consumption per tce/ton carbon fiber 8.67 8.32 Materials consumption per ton of carbon ton of carbon fiber fiber ton/ton carbon fiber 2.09 1.98
Total direct energy consumption 10 tce 2589.08 2045.55 Total water discharge 10000 ton 173.64 118.21
Total indirect energy consumption11 tce 177782.55 161290.54 Total water withdrawal 16 10000 ton 313.71 243.35
Include: Total purchased electricity tce 61549.34 55859.24 Total water withdrawal per ton of carbon consumption fiber ton/ton carbon fiber 150.72 123.96
Include: Total purchased heat tce 116233.21 105431.30 Recycled water consumption 10000 ton 10103.66 10248.81consumption
Environmental protection investment
Greenhouse Gas
Environmental protection expenditure17 10000 RMB 3770.72 2733.75
Total GHG emissions12 ton of CO2e 650218 586016
GHG Emission per ton of carbon fiber ton of CO2e/ton carbon fiber 31.24 29.85
Include: Direct GHG emissions(Scope
1)13 ton of CO2e 4642 20420
Include: Indirect GHG emissions(Scope 2) ton of CO2e 645576 565596
Waste
Hazardous waste generated ton 1941.16 1504.98
Hazardous waste generated per ton of
carbon fiber ton/ton carbon fiber 0.09 0.08
Non-hazardous waste generated ton 2741.90 2720.92 9 The coverage of the following KPIs is the same as that of the consolidated statements. In case of any discrepancies between the total
number and the sum of the data and ratios disclosed herein it is due to rounding.Non-hazardous waste generated per ton ton/ton carbon fiber 0.13 0.14 10 Direct energy consumption mainly covers natural gas. The result is calculated in accordance with the General Rules for Calculation of carbon fiber of the Comprehensive Energy Consumption (GB/T2589-2020).
11 Indirect energy consumption covers purchased electricity and purchased heat. The result is calculated in accordance with the
Industrialized ton 1010.30 2661.56 General Rules for Calculation of the Comprehensive Energy Consumption (GB/T2589-2020). treatment 12 The calculation of GHG-related emissions has referred to the Notice on the Key Work Related to the Management of Enterprise
Greenhouse Gas Emission Reporting in 2022 the General Guideline of the Greenhouse Gas Emissions Accounting and Reporting for
Landfill ton 1251.20 350.00 Industrial Enterprises (GB/T32150-2015) as well as other national and international standards.
13 This year the Company has adjusted its energy consumption structure by increasing the proportion of natural gas usage. As a
Waste disposal14 Incineration power ton 492.36 40.00 result the proportion of Scope 1 and Scope 2 greenhouse gas emissions has shifted accordingly.generation 14 In response to external policies related to waste management the Company has revised its methods for disposing of non-
hazardous waste.Incineration 15 All water acquired by the Company is from tap water that provided by the third-party Company and there is no water acquired by
without power ton 1929.20 1298.36 high water pressure regions.generation 16 Environmental protection expenditure includes the expenditures for environmental protection and ecological restoration.
97 98Social KPIs
Indicator Unit 2023 2024 Indicator Unit 2023 2024
Employees Male hours 127.07 110.17
By gender
Total number of employees Person 3719 2955 Female hours 130.73 110.22
Male Person 2139 1734 Senior employees hours 38.89 103.11
By gender
Female Person 1580 1221 By position level Middle-level employees hours 128.62 116.45
Han employees Person 3414 2735
By ethnicity General employees hours 128.85 110.05
Minority employees Person 305 220
Under 30 years old hours 128.08 111.08
Senior employees Person 9 9 By age 30-50 years old hours 130.63 110.86
Include：Female Person 2 2 Over 50 years old hours 88.82 84.48
Middle-level Person Number of
employees 70 77 environmental Case 10 12By position level Number of training sessions
Include：Female Person 20 22 environmental
training sessions Number of
and participants environmental General employees Person 3640 2869 training Person-time 3078 1103
participants
Include：Female Person 1558 1197
Employee's right
Under 30 years old Person 1455 928 Number of employees joining staff union 人 3719 2955
By age 30-50 years old Person 2169 1944 Percentage of employees joining staff
union % 100 100
Over 50 years old Person 95 83
Percentage of employees signing
Employees with STEM17 relative work Person 325 303 collective contracts
%100100
Percentage of employees represented
Include: Female employees with STEM Person 73 76 through the staff and workers' congress
%100100
relative work
Safety and health
Total number of newly recruited Person
employees 1082 366 Number of work-related fatalities Person 0 0
Include：Total number of internally Person Death rate per 1000 employees ‰ 0 0
recruited employees 143 144 Number of deaths of contractors due to
work person 0 0
Total number of internally recruited
employees % 13.22 39.34 Number of lost workdays due to
occupational injuries day 0 0
Employee turnover rate18 % 14.52 14.26
Lost time injury frequency rate (LTIFR) for
employee day 0 0Employee training
Average training hours of employees hours 128.61 110.20 Lost time injury frequency rate (LTIFR) for contractor day 0 0
Expenditure for production safety 10000 RMB 1981.51 1797.08
99 100Indicator Unit 2023 2024 Indicator Unit 2023 2024
R&D Important supplier non-first tier supplier
with training happened number 0 0
Patents applied for piece
during the year 230 269 Total number of important supplier in the
year number 55 60
where patents for piece
inventions 123 166 Number of supplier that undertake desk
and on-site assessment number 55 63
Patents granted piece
during the year 95 107 Number of supplier that engaged the
Company's capacity building programs number 8 8
Number of where patents for piece
intellectual inventions 17 12 Ratio of important supplier to total
property suppliers that engaged the Company's % 30.9 28.0
Cumulative valid piece 212 319 capacity building programspatents
Public welfare
where patents for piece
inventions 47 59 Investment to
public welfare 10000 RMB 46.6 16.2
Cumulative piece
software copyrights 3 5 Number of needy
registered who accept the Person-time 17 26
assistance
Responsible operation
Proportion of customers participating in Costs to needy who
satisfaction surveys % 100 100 accept the 10000 RMB 2 1.3
assistance
Average satisfied rate of customer19 % 95 96.35 Educational
assistance Total number of
Number of cases of employees violating assistance to person 25 13
corporate Code of Conduct (Including University student
corruption or bribery discrimination or
harassment customer privacy leaking case 0 0 Total amount of
conflicts of interest money laundering or scholarships
insider trading) distributed in the 10000 RMB 10 1.3
Signed Party year
Conduct and Offering
Integrity Building number 24 36 condolences to Person-time 34 34
Responsibility
Number of sign of employees in needAgreements
integrity agreement Welfare event
Signed Integrity Costs to offering
and Self-discipline condolences to 10000 RMB 4.67 4.34
Commitment number 205 218 employees in need
Agreements
Supplier management
First tire supplier with training happened20 number 165 178
Important first tier supplier with training
happened21 number 17 17 17 STEM stands for Science Technology Engineering and Mathematics.
18 Employee turnover rate = number of employees turned over throughout the year / number of employees at the end of the period.
Percentage of expenditure that trading 19 Customer satisfaction refers to the score calculated through the results of the annual customer satisfaction survey.with important first tier supplier to total % 27.59 35.60 20 First tier supplier is the supplier who take direct trading with the Company.expenditure with all suppliers 21 Important supplier is the combination of category A and category B.
101 102Perspective
Looking to the future Zhongfu Shenying will continue to deepen the implementation of the green and
high-quality development concept firmly anchor the strategic direction of "green high-end international
large-scale" and combine the core ideas of "innovation-driven breakthroughs in-depth market demand
and quality lean management". It will deepen the enabling role of its products in the green transformation
of the entire industrial chain accelerate the construction of a low-carbon circular system for the carbon
fiber industry and comprehensively enhance the competitiveness of the enterprise in the global value
chain. With determination and unity Zhongfu Shenying will strive to create green and high-quality carbon
fibers and contribute to the evolution of the global carbon fiber industry towards greater efficiency
cleanliness and sustainability.
103 104Appendix
Index table of Chapter page number or Index of Reference of ESG Indicators System for ESG Reports Disclosure other descriptions
indicators of Listed Companies Controlled by Central Enterprises Primary Secondary
indicators indicators Tertiary indicators (to be filled)
E3.1.1 Sources and types of greenhouse gases
Chapter page number or Environment - Proactively Disclosure other descriptions E3.1.2 Greenhouse gas emissions management Addressing Climate
GHG emissions E3.1.3 Scope I emissions Change; Index table of
Environmental E3.1.4 Scope II emissions indicators - Environmental
Primary Secondary E3.1.6 Greenhouse gas emission intensity
KPIs
indicators indicators Tertiary indicators (to be filled)
Climate Change Environment -
Environment - Continuing Emission E3.2.1 Greenhouse gas emission intensity Accelerating the Transition
E1.1.1 Fresh water usage to Promote reduction to Low-Carbon Production; E3.2.2 Greenhouse gas emission reductions
E1.1.2 Circulating water consumption
Water Environmentally Friendly
management Index table of indicators -
E1.1.3 Percentage of recycled water usage Production; Index table of
Environmental KPIs
E1.1.4 Intensity of water consumption indicators - Environmental
KPIs Climate risk
Environment - Proactively
management E3.4.1 Climate risk management Addressing Climate Change
Resource E1.3.1 Fossil energy consumption
consumption E1.3.2 Non-fossil energy consumption Low-carbon
Sustainable Development
Column - Sustainable
Energy E1.3.3 Proportion of non-fossil energy use Index table of indicators - development Environmental KPIs goal setting E5.1.1 Low-carbon development goal-setting Development Strategy;
E1.3.4 Total energy consumption and strategic and strategic measures Environment -
E1.3.5 Energy intensity measures Accelerating the Transition to Low-Carbon Production
Packaging Environment - Environment - Continuing
materials E1.4.2 Packaging material lightweight reduction Accelerating the Transition to Promote to Low-Carbon Production E5.2.1 Water use managementResource Environmentally Friendly E5.2.2 Material Use Management Production; Environment -
E2.1.1 Wastewater discharge compliance management
measures E5.2.3 Energy use and energy Accelerating the Transition
E2.1.2 Wastewater management and abatement conservation management to Low-Carbon Production;
measures Index table of indicators - Resource and
Wastewater E2.1.3 Wastewater discharge Environmental KPIsenvironmental
E2.1.4 Wastewater pollutant emissions management E5.4.1 Cleaner production
E2.1.5 Wastewater pollutant discharge systems and E5.4.2 Green technologies and recycling
Environment -
Green actions Accelerating the Transition
concentration Environment - Continuing measure and measures E5.4.4 Green office and operations to Low-Carbon Production;
Prevention and to Promote E5.4.5 Green procurement and green supply E2.2.1 Waste gas emission compliance
control of Environmentally Friendly chain management
pollution Waste gas E2.2.2 Emissions of waste gas pollutants Production; Index table of indicators - Environmental E5.5.1 Environmental management system E2.2.3 Waste gas pollutant emission
KPIs Green/ low- certification Environment -
E2.3.1 Legal compliance for solid waste disposal carbon E5.5.2 Green low carbon enterprise certification Accelerating the Transition
to Low-Carbon Production
E2.3.2 General industrial solid waste certifications E5.5.3 Certification of green and low carbon
management products and services
Solid waste E2.3.3 General industrial solid waste disposal Green/ low- Environment - Continuing
E2.3.4 Hazardous waste management carbon E5.6.1 Emergency response plan for to Promote environmental emergencies Environmentally Friendly
E2.3.5 Hazardous waste disposal volume certifications Production
105 106Disclosure Chapter page number or Chapter page number or other descriptions Disclosure other descriptions
Social Primary Secondary
indicators indicators Tertiary indicators (to be filled)
Primary Secondary
indicators indicators Tertiary indicators (to be filled) Social - Deepening
Supplier S3.1.1 Supplier selection and management Corporate Responsibility
S1.1.1 Corporate recruitment policy and management
Recruitment S3.1.2 Number and distribution of suppliers
Operations; Index table of
implementation
and Social - Fully Safeguarding
indicators - Social KPIs
S1.1.2 Employee structure Employee Rights Supply chainemployment
S1.1.3 Avoidance of child or forced labor safety and S3.2.1 Policies and measures in supply chain
management management
S1.2.1 Compensation philosophy and policy Supply chain S3.2.2 Supply chain security assurance and
Social - Deepening
Employee Corporate Responsibility S1.2.2 Working hours and rest and vacation management contingency plans
remuneration Social - Fully Safeguarding Operations
and benefits S1.2.3 Security of remuneration and benefits Employee Rights
S3.2.3 Significant risks and impacts (supply
chain)
S1.2.4 Democratic management of employees
S4.2.1 Policies and measures in local community
S1.3.1 Employee occupational health and safety
management Prosperity with
building
Employees' the community S4.2.2 Contribution and impact on local
rights and S1.3.2 Employee safety risk prevention and Social - Implementing
interests Health and control Intrinsic Safety ; Social -
communities Social - Dedicated to
safety Fully Safeguarding
S1.3.3 Responding to safety accidents and Employee Rights S4.3.1 Policies and measures to participate in
Creating Social Value
workplace injuries Contribution Social welfare social welfare activities
S1.3.4 Employee care and support to society activities S4.3.2 Investment and performance in social
welfare activities
Employee S1.4.1 Employee incentive and promotion policy Social - Comprehensively
development Promoting Talent Social - Commitment to
and training S1.4.2 Employee education and training
S4.4.1 Industrial transformation
Development Response to national Technological Innovation; S4.4.2 Rural revitalisationand regional Social - Dedicated to
Social - Fully Safeguarding strategies coordinated development Creating Social Value
Employee S1.5.1 Employee satisfaction survey Employee Rights; Index
satisfaction S1.5.3 Employee turnover table of indicators - Social Governance
KPIs
Primary Secondary
indicators indicators Tertiary indicators (to be filled)S2.1.1 Policies and measures for standardised
Product safety manufacturing management Social - Strictly Ensuring
and quality S2.1.2 Quality management Product Quality G1.1.1 Governance strategy formulation
S2.1.4 Negative events for products or services Governance G1.1.2 Governance policy supervision process
Governance strategy and G1.1.3 Approval and review process of
Product and Customer S2.2.1 Customer satisfaction Social - Deepening strategy and
process governance policy
service service and Corporate Responsibility
S2.2.2 Customer complaints and responses organisational G1.1.4 Party Building leadsmanagement rights Operations structure
Organisational G1.2.2 Organizational structure and functions of Governance - Deepening
S2.3.1 R&D and innovation management systems structure and the Board of Directors the Board of Supervisors Comprehensive Corporate
Innovative S2.3.2 R&D investment Social - Commitment to functions and the Management Governance
development S2.3.3 Achievements in Innovation Technological Innovation Internal control G2.1.1 Internal audit
S2.3.4 Protection of intellectual property
Standardised G2.2.1 Regulations and norms of integrity
governance Integrity construction
building G2.2.2 Effectiveness of integrity construction
measures
107 108Disclosure Chapter page number or Table of contents GRI indicators systemother descriptions
Sustainable Development Strategy 2-22
Primary Secondary
indicators indicators Tertiary indicators (to be filled) Sustainability Performance Review in 2024
Investor Sustainable Development Sustainability Management Framework 2-14G3.1.1 Investor relations management strategy
relation ColumnInvestor G3.1.2 Investor communication Honors and Awards in Sustainability
relation management
management Governance - Smooth Analysis and Evaluation of Sustainable
and G3.2.1 Shareholders' Meeting (General Meeting) Communication with Development Materiality Issues
2-1；2-29
shareholders’ Shareholders’ G3.2.2 Shareholder communication Stakeholders 2-9；2-10；2-11；2-12；2-13；2-
equity equity G3.2.3 Shareholders' right to know and Deepening Comprehensive Corporate 15 ； 2-18 ； 2-25 ； 2-27 ； 2-29 ；
participate in decisionmaking Governance Governance 204-103；205-2；205-3；206-103；308-103；308-1；308-2；413-103；
Information Governance - Deepening 414-103；414-1；414-2；418-103
disclosure G4.1.2 Non-Financial information disclosure Comprehensive Corporate Accelerating the Transition to Low-Carbon
Transparency in policy Governance Production 302-103；302-4；305-103；305-5
Information
disclosure Quality of G4.2.1 Regular monitoring auditing and Continuing to Promote Clean Production 302-4；303-103；303-1；303-2；
information evaluation of all disclosed information 305-103
disclosure compliance and risk management Governance - Deepening Environment Accelerating the Construction of a Circular 301-103；302-4；303-103；303-1；
Compliance Comprehensive Corporate
System 303-2；305-103
G5.1.1 Compliance operation system
operation and Compliance Governance Driving Green and Lightweight Development
risk operation G5.1.2 Status of compliance system
management development Proactively Addressing Climate Change 201-2；302-4
Strictly Ensuring Product Quality 416-103；416-1；413-103
Compliance
operation G5.1.3 Specific process of compliance reviewCompliance Commitment to Technological Innovation
operation and Governance - Deepening
G5.2.1 Risk identification and early warning Comprehensive Corporate Steadfastly Advancing Intelligent risk Risk Governance Developmentmanagement management G5.2.2 Risk control and tracking
G5.2.3 Risk reporting and management 2-25 ；402-104 ；403-1 ； 403-2；Implementing Intrinsic Safety 403-3 ； 403-4 ； 403-5 ； 403-6 ；
403-7；403-8
Social 2-15 ； 2-20 ； 2-25 ； 2-26 ； 202-
Fully Safeguarding Employee Rights 103 ； 206-103 ； 401-103 ； 402-103；405-103；406-103；406-1；
407-103；408-103；409-103
Index table of GRI Index Comprehensively Promoting Talent indicators 404-103；404-2GRI index Development
Deepening Corporate Responsibility 2-15；2-25；204-103；308-103；
Operations 308-1；308-2；414-103；414-1；414-2；418-103
Table of contents GRI indicators system
Dedicated to Creating Social Value 413-103
Introduction / 2-1；2-2；2-3；2-6
302-1；302-2；302-3；303-4；
Chairman statement 2-22 Environmental KPIs 303-5；305-1；305-2；305-4
Sustainable development
Brief introduction 2-6；203-103 KPIs
About us Social KPIs 2-7；2-8；401-1；401-2；403-9；Corporate culture 404-1
109 110Feedback
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