Stock code:300037
2024
Environmental
Social and Governance (ESG) ReportTable of Contents
Governanc0e1 Responsibilit0y2 One-earth03 Win-win04
ESG Management 12 Innovation-driven 30 The "Four Green" Concept 68 Responsible Supply Chain 88
Corporate Governance 19 Product Quality 38 Combating Climate Change 72 Human Rights of Employees 95
Business Ethics 22 Chemical Safety 44 Optimizing the Energy Structure 77 Talent Development and Incentive 97
Risk Management 26 Occupational Health and Safety 51 Environmental Compliance Management 78 Employee Rights Interests and Benefits 101
Information Security 27 Customer Service 61 Emissions and Waste 82 Community Contributions 104
Resource and Ecological Protection 84
About the Report 2 ESG Quantitative Performance Table 108
Message From Chairman 4 List of Proper Nouns 115
About Capchem 6 Indicators Index 118
ESG Highlights in 2024 8 Independent Assurance 123
Readers Feedback Form 125About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
About the Report
Introduction References
Welcome to the 2024 Environmental Social and Governance (ESG) Report of Shenzhen Capchem Technology Co. Ltd. To facilitate the expression and reading "Shenzhen Capchem Technology Co. Ltd." in the report is expressed as "Capchem"
("Capchem") (hereinafter referred to as the "Report"). Since 2020 the Company has been disclosing its performance in or "the Company". The above references may also include the wholly-owned (holding) subsidiaries of Shenzhen Capchem
sustainability and social responsibility. In 2023 the Company upgraded the social responsibility report to ESG report. In 2024 Technology Co. Ltd. that are consolidated in the financial report. The following are some of the subsidiaries covered in the
we disclosed our ESG report on a continuing basis with reference to the index of Self-Regulatory Guidelines No.17 for Listed report and their abbreviations are as follows:
Companies on Shenzhen Stock Exchange - Sustainable Development Report (for Trial Implementation) during the preparation
process.Shenzhen Capchem refers to Jiangsu Seals refers to
Shenzhen Capchem Technology Co. Ltd. Jiangsu Seals Electronic Materials Co. Ltd.Reporting Boundaries Huizhou Capchem refers to Jingmen Capchem refers to
Huizhou Capchem Chemicals Co. Ltd. Jingmen Capchem New Materials Co. Ltd.The Report covers the period from January 1 2024 to December 31 2024 (hereinafter referred to as the "Reporting Period"). Nantong Capchem refers to Tianjin Capchem refers to
To ensure the completeness of the Report part of content may go beyond the Reporting Period. Unless otherwise specified Nantong Capchem Electronic Materials Co. Ltd. Tianjin Capchem Electronic Materials Co. Ltd.the Report covers Shenzhen Capchem Technology Co. Ltd. its subsidiaries with consolidated financial reports and its holding Nantong Capchem Technology refers to Chongqing Capchem refers to
companies. Nantong Capchem Technology Co. Ltd. Chongqiong Capchem New Materials Co. Ltd.Nantong Top refers to Yichang Capchem refers to
Basis of Preparation Nantong Top Electronic Materials Co. Ltd. Yichang Capchem Technology Co. Ltd.Sanming Hexafluo refers to Capchem Supply Chain refers to
The Report is compiled in accordance with Self-Regulatory Guidelines No. 17 for Listed Companies on Shenzhen Stock Sanming Hexafluo Chemicals Co. Ltd. Shenzhen Capchem Supply Chain Management Co. Ltd.Exchange – Sustainable Development Report (Trial Implementation) General Requirements for Disclosure of Sustainability- Shanghai Hexafluo refers to Capchem Hong Kong refers to
related Financial Information (IFRS S1) the Global Reporting Initiative Standards (GRI Standards) the Sustainability Reporting Hexafluo Chemicals (Shanghai) Co. Ltd. Capchem (Hong Kong) Co. Ltd.Standards (Version 2021) Sustainability Accounting Standards Board Standards (SASB Standards) the UN Sustainable
Development Goals (SDGs) the Morgan Stanley Capital International Environmental Social and Governance ("ESG") Rating Fujian Heptafluo refers to Capchem USA refers to
(MSCI ESG Rating) and the Basic Framework of Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises Fujian Heptafluo New Materials Co. Ltd. Capchem Technology USA Inc.
(CASS-ESG 5.0). Hunan Fluopont refers to Capchem Poland refers to
Hunan Fluopont New Materials Co. Ltd. Capchem Poland Sp.zo.o.Reporting Principles Jiangsu Hicomer refers to Capchem Europe refers to Jiangsu Hicomer New Materials Co. Ltd. Capchem Europe B.V.Suzhou Novolyte refers to Capchem Singapore refers to
Novolyte Battery Materials (Suzhou) Co. Ltd. Capchem Singapore PTE.LTD.Materiality Impartiality
The Company identifies material issues in the context of the The content disclosed in the Report is object
industry it operates in and the characteristics of the business in nature ensuring the impartial reporting of Sources of Information
among other things and expects to short- medium- and long- the Company's ESG performance during the
term impact on the Company's business model business Reporting Period.operations development strategy financial situation operating All information and data disclosed in the report are sourced from our statistical data or official documents.results cash flow financing methods and costs as well as
whether the performance of the Company on the respective
issues will have a significant impact on the economy society and Confirmation and Approval
the environment.The Report is prepared by the ESG reporting team of Capchem and is released after the confirmation of management and
approval of the Board of Directors.Quantification Consistency
Access and Response to the Report
The Report discloses the ESG quantitative KPIs during the If there is any change in the statistics and
Reporting Period and strives to explain the criteria calculation disclosure methods in the Report it shall be
methods and parameters used to disclose the data. fully explained in the annotations. The Report is available in both simplified Chinese and English for readers. If there is any discrepancy between the Chinese
version and the English version the Chinese version shall prevail.
2 3About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Message From Chairman Integrating ESG Principles to Safeguard Advancing Dual Carbon Goals to Practice Sustainable Governance (Governance) Green Production (One-earth)
Capchem actively responds to the United Nations Sustainable Capchem actively combats the global climate change
Development Goals (SDGs) and deeply integrates the concept formulates and implements the dual-carbon target of
of sustainable development into the Company's business "Operational carbon peaking by 2029 Operational carbon
operation system and various governance aspects. In 2024 the neutrality by 2049" focuses on the development concept of
Company has continued to carry out sustainable development "Four Green" namely green products green processes green
work based on the Sustainable Development Policy of factories and green industries vigorously promotes energy
Capchem identified and sorted out 27 material issues and saving and emission reduction continuously optimizes "waste
carried out double materiality assessment work in response to water waste gas solid waste" and resource management and
the demands and expectations of various stakeholders. steadily moves forward on the road of low-carbon sustainable
development. Based on a sound ESG management structure
Capchem also takes the interests of all shareholders into account and environmental management strategy the Company actively
actively improves internal management focuses on building carries out energy saving and consumption reduction work
a professional and diversified Board of Directors gradually such as green power procurement implements environmental
improves the decision-making level of the boards of directors compliance management and conducts compliance audits
of its subsidiaries and gradually implements compliance regularly. The Company also strictly controls the emission
management and the construction of a culture of business ethics and disposal of pollutants in the course of production and
as well as risk management so as to escort the efficient operation operation and continuously optimizes the use of resources
Johnson Qin of the Company by means of sound corporate governance. and energy in all aspects of production to ensure that business In 2024 the Company successfully realized that 100% of its development and ecological environment protection go hand
suppliers had signed Integrity Agreement or Integrity Clause. in hand. 90.9% of stable operating bases have obtained the
Chairman The participation rate of anti-corruption training for all ISO 14001 environmental management system certification by
employees of the Company reached 100% and the signing 2024.rate of the Commitment Letter of Integrity reached 100%.Pursuing Win-Win Cooperation to Build
Harmonious Communities (Win-win)
Leading with Responsible Operations to Capchem regards win-win cooperation as its unchanging
Achieve Excellence (Responsibility) pursuit. The Company insists on constructing a competitive supply chaincontinuously improves the whole life cycle
Capchem regards responsible operation as the foundation management system of suppliers and actively promotes the
of sustainable development adheres to the bottom line of deployment of digital systems to digitally empower green and
safety takes innovation as the driving force and endeavors to resilient supply chain. The Company also regards high-quality
create high-quality products and high-level customer service. talents as the core element of the enterprise's continuous
Capchem adheres to the customer-centered approach progress constructs a diversified inclusive and energetic
In 2024 China's economic development continues to improve and residents' living standards are also on the rise empowers quality management with digitalisation continues workplace environment improves the cadre management
electronic chemicals and functional materials industry market size growth is stable. Capchem abides by the business to explore key technologies and develop green alternatives
system continues to deepen the performance assessment
in the field of electronic chemicals and functional materials process and responds to the expectations of the employees
philosophy of "Professional Excellent Solid and Thorough (STEP)" rooting itself in its main business penetrating continues to implement intellectual property protection through meticulous care initiatives and a diversified and
into the fields of new energy vehicles consumer electronics urban rail transit biomedicine digital infrastructure mechanisms and strives to output products and services smooth communication mechanism.photovoltaic energy storage industrial manufacturing etc. and is committed to seeking breakthroughs in the that are highly consistent with customer needs. Capchem has also always been keen to give back to the
development and creating a bright future with electronic chemicals and functional materials. Capchem also adheres to the operation concept of safety first community and has closely integrated the concept of social
controls safety risks at source carries out annual identification responsibility with its organizational development strategy. In
Based on the United Nations Global Compact (UNGC) the United Nations Sustainable Development Goals (UN SDGs) of chemicals and formulates compliance registration plans 2024 the Company invested RMB 2.6137 million to continue to
standard guidelines of domestic and foreign organizations and issues of high concern to all parties Capchem is actively fully implements the management of the whole life cycle participate in and carry out various public welfare and charitable of chemicals and continuously promotes the reduction and community exchange activities to continue to deepen
exploring the road to sustainable development. In 2024 Capchem has carefully constructed the "GROW" sustainable and substitution of hazardous chemicals. At the same time the emotional connection with the communities at home and
development model based on the consideration of the coordinated fair and efficient development of enterprises with based on a comprehensive health and safety management abroad and to benefit the community through practical actions.the four pillars of "Governance" "Responsibility" "One-earth" and "Win-win" leads the sustainable development of the structure the Company links occupational health and safety
Company and enhances the corporate image with excellent environmental social and corporate governance practices. performance to the management's salary assessment mechanism promotes the construction of the risk control Looking into the future Capchem will continue to carry the
system and safety informatization and implements safety reputation forward anchored in the strategic vision of " Green
education and culture at all levels to build a solid safety Drives Sustainable Business " deploying sustainable
bottom line. development strategies around the four pillars of governance
responsibility one-earth win-win and working together with
all partners to create a new chapter of green harmonious and
sustainable future.
4 5About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
About Capchem
Shenzhen Capchem Technology Co. Ltd. ("Capchem") is The Company is headquarterd in Pingshan District Shenzhen. Business Solid Thorough The business philosophy of "SolidThoroughExcellent and Professional" is
committed to becoming a leading global enterprise specialized In order to quickly respond to customer demand and product Philosophy Excellent Professional called "STEP" for short meaning one step one footprint step by step.in electronic chemicals and functional materials. Established supply The Company has production bases spreading across
in 1996 Capchem was listed on the Shenzhen Stock Exchange Guangdong Jiangsu Fujian Hubei Hunan Tianjin Chongqing
(stock code: 300037) in 2010 with its headquarter in Shenzhen and other provinces and municipalities as well as in Poland
China. the United States and other countries. At present Capchem Professional
has 25 wholly-owned (holding) subsidiaries such as Huizhou Excellent
Since establishment Capchem has been committed to creating a Capchem Nantong Capchem Sanming Hexafluo. Capchem Thorough
better future with electronic chemicals and functional materials. also has wholly-owned (holding) subsidiaries in Hong Kong Solid
Its main products include battery chemicals organic fluorine Special Administrative Region China the United States Poland Focus on main business
chemicals capacitor chemicals and semiconductor chemicals Singapore South Korea as well as branches in Japan to serve Foster advantages in cultivate craftsmanship
and they are widely used in the fields such as new energy customers in time . Achieve economies technology quality for employees and pro-
vehicles consumer electronics urban rail transit biomedicine Execute effective of scale and cost- market and service fessionalism for the man-
digital infrastructure photovoltaic energy storage and industry integration of industrial advantage while agement and assume
manufacture. chain around the main upgrading products the industrial leadership
+ business for the Company
The vision of Capchem is to be a global leader of electronic 20 Sites Worldwide
chemicals and functional materials. All the employees adhere
to the core value of "Innovation for Application Progress
with Integrity" as well as the business philosophy of "STEP" +
meaning "Professional Excellent Solid Thorough" step by 4000 Employees
step and persevere in pursuit of excellence.Mission
Electronic Chemicals and Functional Materials for a Better Future
Vision
To Become a Global Leader of Electronic Chemicals and Functional
Materials
Core Value
"Innovation for Application"
Innovation for Truth-Seeking Sustaining Innovation Customer-Orientation
Application and Value-Creation
Progress with
Integrity "Progress with Integrity"
Safety & Compliance Sharing Globalization Sustainability
6 7About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
ESG Highlights in 2024
Economic Performance Environmental Performance Social Performance Corporate Governance
Operating income Environmental investment R&D investment Number of independent directors
RMB 7846.79 million RMB 34.05 million RMB 424.42 million 3
Net profit 90.9% R&D investment as a percentage of total revenue Number of female directors
RMB 952.09 million of operating bases have obtained the ISO 14001 5.41% 1
environmental management system certification
Earnings per share Cumulative domestic and international patent Coverage of integrity and compliance training
Carbon dioxide emissions granted
RMB 1.26 per share 2878063.71 100% tCO2e1 543 patents
Total assets Signing Rate for Suppliers' Integrity Agreement or
Consumption of purchased green electricity Cumulative investment in ensuring occupational Integrity Clause
RMB 17623.19 million health and safety11207181.05 kWh 100%
Weighted average return on equity RMB 55.45 million
Water reuse rate Number of board meetings
9.97% Total workforce38% 4197 9
Integrated recycling of general waste Directors participation rate
Percentage of female employees
69.90 ton 24% 100%
Employee training hours
Over 173000 hours
1 For detailed statistical definitions please refer to the appendix: ESG Quantitative Performance Table
8 9About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
ESG Management
Built a "GROW" Sustainable Development Strategy
I dentified 27 material ESG issues and conducted a double materiality
assessment for the ESG issues
Linked performance of the Company's ESG issues to the senior management's
remuneration evaluation system
Corporate Governance
Held 6 general meetings of shareholders 9 Board of Directors meetings
and 8 supervisory board meetings
Awarded "AA" rating by Huazheng ESG Rating and received "A" grade
for information disclosure from Shenzhen Stock Exchange for three
consecutive years
Completed a total of 147 information disclosure documents such as meeting
resolutions periodic reports profit distribution and other significant
matters and completed the management of insider information 5 times
Carried out 5 performance briefings 1 investor reception and responded
to 72 interactive questions from investors on social media sites such as
"Easy Interactive" with a 100% response rate
Business Ethics
Z ero corruption-related cases and zero lawsuits arising from corrupt
01 practices unfair competition and antitrust practices of the Company or its directors officers and employees 1 00% of the Company's employees enrolled in anti-corruption courses and 100% have signed the Commitment Letter of Integrity 1 00% of the Company's suppliers signed Integrity Agreement or Integrity
Clause
Risk Management
Thoroughly implemented the internal "three lines of defense" risk
management
Governance Information Security
Capchem and its subsidiaries Huizhou Capchem and Nantong Capchem
obtained ISO 27001 Certification
Capchem regards governance as the key to securing sustained corporate
growth and long-term prosperity. By following the concept of sustainable
development and taking a sound and efficient governance structure as
its foundation Capchem continues to integrate a culture of compliance
and integrity into the blood and bones of the Company and continuously
improves the level of privacy and information security protection so as to
inject strong kinetic energy into the Company's sustainable operation with
high-quality governance.
10 绝密文件 未经许可 不得复制扩散About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
ESG Management ESG Governance
Capchem has deeply integrated the concept of sustainable the Company has formed a well-connected and efficient
development into the Company's business operation governance chain improving the top-down responsibility
Capchem adheres to the concept of sustainable development builds an ESG strategy in line with the Company's development system and various governance aspects establishing a transmission and supervision mechanism. Additionally
continuously improves our governance system and deeply integrates ESG management into all aspects of our operations. The three-tier ESG governance structure covering the "decision- Capchem has formulated the Capchem Sustainability
Company strives to promote sound operations practice social responsibility and improve governance to achieve the goal of making level management level and executive level". Led Management System clarifying the responsibilities of each
sustainable development. by strategic decisions made at the board level with overall level within the Company in ESG governance to ensure the
planning and coordination by the ESG Management Office effective implementation of ESG management strategies.and specific tasks implemented by the ESG Task Force
ESG Strategy
Capchem adheres to the strategic vision of "Green Drives and "Win-win" combined with a strong strategic support T he highest decision-making level on corporate ESG matters.Sustainable Business" establishes strategic goals based on our highlighting our vitality in corporate governance social L ead and supervise the implementation of corporate ESG strategy.own business development forms a top-down "ESG responsibility environmental protection and value chain R eview and approve corporate ESG strategy ESG report etc.Strategic House" and actively explores the road of sustainable symbiosis. Capchem looks forward to collaborating with all Board of Directors
development. Capchem carefully constructs the "GROW" partners promoting growth together and working together
Sustainable Development model which is based on the to create a new chapter of a greener more harmonious and
principles of "Governance" "Responsibility" "One-earth" sustainable future.R eview the Company's ESG governance strategies and ESG risk identification and assessment results and
confirm control actions on ESG issues with high risks.ESG Strategic House: "GROW" Growth Model symbolizing the company's continuous expansion and advancement towards a sustainable R esponsible for ESG governance supervision including supervising and checking the process of identification
development path. Strategy and assessment and management of issues related to the Company's ESG governance activities the implementation
Sustainable of relevant indicators and the progress of goals and approving ESG development plans and action plans.Green Drives Sustainable Business Development R eview the annual ESG report control the quality of the report and promote disclosure improvement.Committee O ther ESG-related powers and functions granted by the Board of Directors.Carbon Peaking and Carbon Neutrality Goals
Operational carbon peaking by 2029 Operational carbon neutrality by 2049
"GROW" 2030 Goals
By 2030 reduce waste water and hazardous waste generation per unit of product by over 35% compared to 2023 increase
general waste reuse or recycling rate to above 90% and achieve a reclaimed water reuse rate of over 50%. F ormulate ESG governance plans and action plans and coordinate and promote the implementation of ESG
A chieve zero work safety accidents at or above the general level achieve a 100% signing rate of the Cooperation Agreements and Commitment governance of the Company.Letters with core suppliers maintain a good level of employee satisfaction and keep customer satisfaction above 90 points. F ormulate the Company's ESG governance objectives and sub-objectives set medium- and long-term
Obtain an A-grade evaluation in information disclosure assessments by the Shenzhen Stock Exchange achieve a 100% signing rate of objectives and annual objectives and formulate assessment systems for ESG objectives.the Commitment Letter of Integrity from all employees and ensure a 100% signing rate of Integrity Agreement or Integrity Clause with S ummarize the work plans and implementation status of each ESG team assess the completion of ESG objectives
qualified suppliers. ESG Management ensure the effectiveness of the follow-up evaluation and improvement mechanism of ESG action plans summa-
Office rize the completion status of the objectives and report to the Strategy and Sustainable Development Committee."GROW" Model R egularly prepare and publish the annual ESG report of the company and disclose ESG-related information to the
public in a timely manner.Governance Responsibility One-earth Win-win
ESG Management Innovation-driven The "Four Green" Concept Responsible Supply Chain
Corporate Governance Product Quality Combating Climate Change H uman Rights of Employees T he headquarters and various bases establish fixed/non-fixed ESG Task Force based on the Company's
Business Ethics Chemical Safety O ptimizing the Energy Structure Talent Development and needs actively cooperate with and respond to short- medium- and long-term corporate ESG development
Risk Management O ccupational Health E nvironmental Compliance Incentive proposals ESG management systems ESG system construction ESG objectives etc. and implement ESG man-
Information Security and Safety Management E mployee Rights Interests and agement of major issues in their respective areas of expertise to ensure full integration of ESG management nor-
Customer Service Emissions and Waste Benefits malized work.Resource and Ecological Community Contributions L ead (cooperate with) the development of the annual ESG working program for relevant issues including the
Protection direction of the current year's focus on improvement assessment methods of objectives and the achieve-
ment of the reward and punishment mechanism etc.R egularly report to the ESG Management Office on the current management status of each major issue the
ESG Task Force operation of the system and mechanism the setting of objectives the achievement of milestones and the
operation of the ESG reward and punishment mechanism and continuously improve the performance of the
Company's responsibilities under each ESG issue through the implementation of effective ESG action plans
and the implementation of a follow-up evaluation and improvement mechanism.Standardized Effective ESG C ooperate with the regular ESG information disclosure work including but not limited to assisting in the Well-established ESG Scientific ESG Clear ESG preparation of the Company's ESG report organizing the collection and aggregation of qualitative and quan-
Governance Structure ESG Management Management Action Plans Performance titative data and participating in ESG training.Policies Objectives Monitoring
ESG Strategic House Capchem ESG Governance Structure and Responsibilities
1213
Strategic Strategic Four Strategic
Vision Objectives Pillars SupportAbout the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
ESG Issue Dual Materiality Assessment
Managing ESG materiality issues serves as the foundation for By employing a combination of quantitative and qualitative In 2024 Capchem identified 27 materiality issues including chain security. Based on the identification of materiality
Capchem in carrying out ESG strategy risk and opportunity analysis methods and fully incorporating stakeholder and 9 environmental issues 12 social issues and 6 corporate issues we continuously refine the Capchem Sustainable
management and information disclosure. In 2024 to further internal/external expert opinions the Company has determined governance issues. By integrating the results of both impact Development Policies enhance the Company's ESG
clarify and timely adjust the focus of our ESG management the materiality of the issues. For impact materiality Capchem and financial materiality Capchem formed a materiality issue management level and encourage suppliers and partners
efforts Capchem conducted a dual materiality assessment comprehensively evaluated each issue across four dimensions: matrix. For Capchem issues of financial materiality include to adhere to and refer to our sustainable development
building upon our past work. degree of impact scope likelihood of occurrence and combating climate change environmental compliance policy jointly advancing sustainable development across the
irremediability. For financial materiality the Company assessed management occupational health and safety and supply industry.Based on our business characteristics and industry development the potential for risks and opportunities continuity of resource
trends and conducting in-depth exchanges to fully understand use and dependence on ongoing production and operations
the opinions of various stakeholders Capchem has conducted among other financial impacts to form an overall conclusion on
a dual materiality assessment of identified ESG issues and the materiality of Capchem's issues.analyzed and identified in-depth the ESG materiality issues that
are closely related to the Company's sustainable development High Occupational Health
from both financial and impact materiality dimensions. and Safety
Corporate Governance
Supply Chain Security
Safety and Quality of Products and Services Combating Climate Change
Mapping Company Activities and Business Relationship Context Pollutant Emissions Energy Utilization
Employee Rights Interests and Benefits
Innovation-driven
? Review and analyze the current status of the Company's operational activities and business relationships.Stakeholder Communication Environmental Compliance
?C atalog the laws regulatory policies and other public documents adhered to by the Company Chemical Safety Waste Treatment Management
such as industry standards and peer analyses. Employee Career Development
Anti-Unfair Competition Customer Service and Anti-Commercial Bribery and Anti-Corruption
?E nhance stakeholder engagement methods map the distribution of affected stakeholders and Satisfaction
prioritize specific issues. Social Contribution Data Security and Customer Privacy Protection Risk Management and Compliance Operation
Treat Small and Medium-sized Due Diligence
Enterprises Equitably
Water Resource Utilization
Establishing an Issue List Green ProductEcosystem and Biodiversity Conservation Circular Economy
? Based on the issue list set by the Shenzhen Stock Exchange's disclosure guidelines identify
financially or impactfully material issues through policy reviews due diligence benchmarking with Rural Revitalization
peers etc. considering industry characteristics development stages the Company's business
model and value chain collaborations establish and refine the issue list accordingly.Assessing and Confirming Issue Materiality
Low Materiality of Finance High
?Determine assessment factors for financial and impact materiality and set scoring ranges.?C onduct stakeholder communication or expert evaluations to obtain scores for the financial Environmental Issues Social Issues Corporate Governance Issues
importance and impact importance of each issue.?Set thresholds for determining financial and impact materiality. Capchem Materiality Issues Matrix
?Form conclusions on financial and impact materiality assessments.Capchem has continued to improve our management aligned evaluation mechanism Capchem fully mobilizes
responsibility and indicator system for ESG materiality issues. the enthusiasm of management and employees to jointly
Issue Reporting The Company has incorporated the performance of key issues advance the Company's ESG management and sustainable
such as environmental compliance occupational health and development.? In conjunction with the Company's risk prevention and development strategic planning confirm safety and chemical safety into the executive compensation
the materiality issue matrix and disclose it in the ESG report after review by the Board of Directors. evaluation system and is gradually linking other critical Meanwhile in 2024 the RBA management system was
ESG performance metrics to compensation mechanisms. introduced to the headquarters of Capchem and the bases
Furthermore relying on the general manager's responsibility in Huizhou Nantong Sanming Tianjin and Jingmen to
system under the board of directors' management employee effectively enhance the social responsibility management
performance incentive plans and an ESG performance- capability (refer to the product quality section for details).Analysis Process for Materiality Issues
1415
Materiality of ImpactAbout the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Stakeholder Communication
Stakeholders Issues of Key Concerns Communication Approaches
Capchem has always aimed to establish strong cooperation public as well as the media. During the Reporting Period
and mutually beneficial relationships partnering Capchem actively built bridges for communication with Hotline
with internal and external stakeholders to build win- stakeholders enhanced exchanges and understood the Green Product Customer Visit
win sustainable partnerships. The Company's primary demands and expectations of each stakeholder group Safety and Quality of Products and
stakeholders include investors regulators customers towards the Company's development and responded Customers Sales and Customer ServiceServices
employees suppliers and partners communities and the positively through concrete actions. Coordination
Customer Service and Satisfaction
Satisfaction Survey
Innovation-driven
Data Security and Customer Privacy
Protection WeChat Official Account
Company's Official Website
Stakeholders Issues of Key Concerns Communication Approaches
Supply Chain Security
Investor Research Activities Due Diligence
Corporate Governance Supplier Management TrainingGeneral Meetings of Shareholders Suppliers and Partners Innovation-driven
Investors Risk Management and Compliance Business VisitPerformance Presentation Meeting Risk Management and Compliance
Operation Operation Company's Website
Roadshow
Anti-Commercial Bribery and Anti- Anti-Commercial Bribery and Anti- WeChat Official Account
Corruption Company Announcements Corruption Hotline
Anti-Unfair Competition Interaction Platform Equal Treatment of Small and Medium- Complaint Reporting
Stakeholder Communication Hotline sized Enterprises
Email Stakeholder Communication
Employee Rights Interests and Benefits Staff Assembly
Corporate Governance Employees Employee Career Development Employee Seminar
Risk Management and Compliance Occupational Health and Safety Executive Meeting with
Operation Employees
Risk Management and Compliance
Anti-Commercial Bribery and Anti- Operation Employee Activities
Corruption
Anti-Commercial Bribery and Anti- Employee Satisfaction Survey
Anti-Unfair Competition Corruption Complaint Reporting
Stakeholder Communication
Regulators Due Diligence Pollutant Emissions
Equal Treatment of Small and Occasional Communication Community and Public Waste TreatmentMedium-sized Enterprises Report and Complaint
Information Disclosure Ecosystem and Biodiversity ProtectionEnvironmental Compliance Public Welfare Activities
Management Company's Official Website Social Contribution Community Exchange Activities
Combating Climate Change Circular Economy
Energy Utilization Rural Revitalization
Pollutant Emissions Combating Climate Change
Waste Treatment Media Green Product
Water Resource Utilization Public Welfare Activities
Circular Economy
Chemical Safety Media Reporting
Ecosystem and Biodiversity Rural Revitalization Public Open Day
Conservation Social Contribution
Innovation-driven
16 17About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
UN SDGs Performance and Response Corporate Governance
Capchem actively responds to the United Nations Sustainable Development Goals (SDGs) enhances our ability to fulfill our
responsibility for sustainable development and makes every effort to build a more sustainable future demonstrating our
corporate commitment and mission. Capchem anchors its strategy on the eight "Persistences" the Company takes into account shareholders' rights and interests
and corporate benefits focuses on building a perfect governance system and structure actively responds to investors'
concerns and needs and carries out information disclosure in a standardized timely and complete manner so as to steadily
Capchem insists on establishing effective accountable Capchem drives industrial core competitiveness with move forward on the road of sustainable development.and transparent institutions continues to promote a technological innovation strictly controls the quality of
culture of compliance and integrity eliminates all forms of products and the use of chemicals to create innovative
corruption and bribery enhances risk management and reliable and green products commits to improving
response capabilities strengthens privacy and information customer experience and shaping an excellent brand
security protection and internalizes the pursuit of high- image of corporate services. The Company strictly
quality corporate governance as a source of motivation for abides by the red line of safety production and creates
the Company's sustainable development. a healthy and safe working for employees.Adhere to a specialized
path with a focus on Uphold the strategic positioning
electronic chemicals and of the Company in technological Governance Responsibility functional materials. innovation.Maintain the basic stability of
the shareholding ratio of the
beneficial owner and the cor- Maintain a business
GROW porate governance structure. model of "products +
Model solutions".Pursue integrity and Eight
One-earth Win-win operation compliance "Persistences"
adhere to a long-term Uphold the branding of a
perspectiveembrace superior quality enterprise
green and low-carbon pursue internationalization
practices and follow and advance both internal
the path of sustainable and external cycles with
development. dual-drive strategies.Adhere to the Group's
Capchem actively responds to global climate change Capchem joins hands with suppliers to actively implement Prioritize contributors embody overall plan strengthen
and strengthens to resist and adapt to climate change. sustainable procurement strives to realize sustainable the value distribution system of synergy and optimize
The Company insists on integrating the concept of green management and efficient use of resources and continuously "ParticipateDevelop Undertake the business system of
environmental protection into all aspects of production improves the sustainability of the supply chain. Capchem joins and Share". the division continuously
and operation exploring green products and applying hands with our employees to create an equal diversified and improve the efficiency of the Company and stimulate
green processes. The Company vigorously pushes forward inclusive working environment paying attention to their growth the Company's strength.energy conservation and emission reduction improves and giving them care; Capchem collaborates with social
the efficiency of resource utilization promotes recovery entities to actively engage in various social welfare activities
and recycling and effectively fulfills our environmental consolidating the achievements of the enterprise in helping the
protection responsibilities. poor and the needy and manifesting the social responsibility
of Capchem.UN SDGs Performance and Response
18 19About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Corporate Governance Improving the Operation of the Board of Directors of Subsidiaries
Based on the Company Law of the People's Republic of by holding a number of internal meetings in order to escort Capchem implements the pursuit of excellence in governance At the same time the Company helps subsidiaries to
China the Guidelines for Self-Regulation of Listed Companies the efficient and standardized operation of the Company. into the management decisions of its subsidiaries. Based make up for their weaknesses in management decisions
of the Shenzhen Stock Exchange (No. 2)-Standardized During the Reporting Period the Company held a total on the internal system of Rules of Procedure of the Board of by carrying out programs such as on-site exchanges of
Operation of Listed Companies on GEM Board and the of 6 general meetings of shareholders 9 board meetings Directors of Subsidiaries the Company assists and guides independent directors of subsidiaries and gradually
internal guidelines of the Articles of Association Capchem and 8 supervisory meetings. For details of the governance important subsidiaries to improve the operation process strengthens the awareness of compliance and ability to fulfill
actively improved its internal management in the interests responsibilities of the "three meetings" of the Company of their boards of directors and provides support for the responsibilities of subsidiaries. During the Reporting Period
of all shareholders and performed its management duties please refer to the Articles of Association.2 promotion of independent and standardized operation of the Capchem has assisted and guided the boards of directors
boards of directors of important subsidiaries. of more than 10 subsidiaries to complete important matters
relating to corporate governance and information disclosure.General Meeting of
Shareholders Capchem Independent Directors Go to Subsidiaries to Exchange Projects on the Ground
In September 2024 the Company organized the independent
Board of Supervisors directors to go to the subsidiaries of Jiangsu Hicomer
Nantong Capchem Nantong Top and other subsidiaries to
Board of Directors carry out the practical work.The Company's independent directors conducted field research
and on-site exchanges giving full play to their supervisory
and guiding roles in the process of corporate governance and
Strategy and Sustainable Remuneration and
Development Committee Evaluation Committee Nomination Committee Audit Committee
ensuring the smooth implementation of field research on the
Company's major investment production and construction
projects.Group photo of independent directors' field exchange in Jiangsu
Corporate Governance Structure of Capchem Company
During the Reporting Period by virtue of good corporate governance Capchem won the 2023 Golden Bull Most Valuable
Investment Award 2023 Golden Bull Golden Trust Award Top 20 Listed Companies in the Greater Bay Area in Governance
Building a Professional and Diverse Board of Directors Top 20 Listed Companies in the Greater Bay Area in Green Governance and other awards. The Company has been awarded AA rating by CSI ESG and has received the A grade for information disclosure from the Shenzhen Stock Exchange for three
consecutive years.The Board of Directors of the Company has established four different professional fields and occupational backgrounds such
specialized committees to provide advice and recommendations as accounting law chemical industry and risk management
for decision-making including the Audit Committee the including 3 independent directors and 1 female director.Remuneration and Evaluation Committee the Nomination
Committee and the Strategy and Sustainable Development Capchem also conducts training programs on corporate
Committee ensuring the professionalism of the Board of compliance governance through internal study and external
Directors' deliberation and decision-making. organizations such as CITIC Securities Company Limited so
as to promptly stay updated on the latest policy dynamics 2023 Golden Bull Most 2023 Golden Bull
2024 Top 20 Listed Companies 2024 Top 20 Listed Companies
in the Greater Bay Area in terms in the Greater Bay Area in Green
Capchem attaches great importance to the diversified and cutting-edge knowledge in the industry and empower the Valuable Investment Award Golden Trust Award of Governance Governance
construction of the Board of Directors and takes into full construction of the Board of Directors of the Company. During
consideration of the educational background professional the Reporting Period Capchem organized the chairman
skills management experience and competence of the selected and general manager of the Company to participate in the Information Disclosure and Investor Relations Management
talents and is determined to build up a Board of Directors and online training on the topic of reform of the independent
a team of senior talents with a forward-looking perspective director system which provided guidelines and directions Based on relevant laws and regulations such as the Shen- Capchem also attaches great importance to investor relations.and senior professional skills. During the Reporting Period the for the Company to improve the construction of the Board of zhen Stock Exchange GEM Listing Rules the Guidelines for Relying on the Management Systems for Investor Relations
Board of Directors3 of the Company consisted of 9 directors from Directors. Self-Regulation of Listed Companies of the Shenzhen Stock the Company has continuously strengthened interaction with
Exchange (No. 2)-Standardized Operation of Listed Compa- shareholders and investors through diversified communication
nies on GEM Board and the internal system guidelines of the channels to create long-term returns for investors. During the
Information Disclosure Management Policies Capchem has Reporting Period the Company organized and carried out 5
been progressively improving the quality of information dis- performance briefings 1 investor reception and answered 72
Organizing directors and senior management to participate in Shenzhen Jurisdiction Listed Company closure and transparency of the Company. interactive questions from investors on social media websites
Directors and Supervisors Training such as "Easy Interaction" with the interactive response rate
Capchem also addresses the disclosure requirements of major
In October 2024 Capchem organized the directors and senior management of the Company to participate in the 2024 Shenzhen of investors reaching 100%.matters and transactions and implements the confidentiality
Jurisdiction Listed Company Directors and Supervisors Training in order to lay the organizational foundation for enhancing the work of directors supervisors and insiders in an orderly During the Reporting Period
endogenous constraints of corporate governance and promoting the high-quality development of the Company. manner. During the Reporting Period the Company completed
a total of 147 documents for disclosure of information such as
resolutions of meetings regular reports profit distribution and The interactive response rate of investors reaching
other material matters and completed the management of
2 For details please refer to the Articles of Association of Capchem: https://static.cninfo.com.cn/finalpage/2023-11-30/1218480159.PDF insider information on 5 occasions.
3 For the composition of the board of directors of Capchem please refer to the Environmental Social and Governance report of the Company in 2023 100%
20 21About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Business Ethics Supervision Department Management Department
Audit Committee Compliance Committee
It is one of the four professional committees established by the The leading organization of the Company's compliance management
Board of Directors of the Company in accordance with the resolution work consists of members of the Company's EMT directors of
of the General Meeting of Shareholders and is directly responsible to headquarters units and general managers/chairmen of subsidiaries.Capchem has always been integrity-based actively implementing compliance management and business ethics culture construction and reports to the Board of Directors.work and insisting on a high level of compliance governance to benefit all stakeholders. Follow the guidelines of laws and regulations study decide
Supervise evaluate and coordinate internal and external deploy guide and coordinate the compliance management of
audits including guiding and supervising the establishment the Group.Fight Corruption and Advocate Probity and implementation of the internal audit system organize and C onsider the Company's compliance management policy objec-conduct internal audit meetings and report to the Board of tives and master plan.Directors on the progress and quality of the internal audit work
Capchem strictly abides by the laws and regulations related integrity audits has been established embedding the integrity and the major issues identified.to business ethics and follows internal regulations such as the concept of "daring not to corrupt being unable to corrupt Review of the Company's financial disclosure and material
Anti-Corruption Regulations4 and the Protection and Incentives and having no desire to corrupt" deeply into the minds of connected transactions.Measures for Whistleblowers 5 to carry out anti-corruption all employees During the Reporting Period the Company
and compliance management and resolutely eradicates any formulated and issued the Code of Business Ethics 6 which Audit and Supervision Department Compliance Office
form of corruption bribery money laundering and fraudulent sets out clear requirements for the ethical behavior of all
and malpractice behaviors and comprehensive compliance employees7 and suppliers of Capchem and its subsidiaries. Corporate Oversight Operations Executive which carries out The executive body of the Company's compliance management is
assurance mechanism integrating cultural promotion and internal anti-corruption and compliance audit oversight under the composed of the deputy director of the Compliance Committee direction of the Audit Committee. the heads of the headquarters units and the heads of compliance
Focusing on the Company's control needs for supervision internal management of the subsidiaries.Anti-Corruption and Compliance Management control risk management and project settlement formulate the Organize the formulation and improvement of various compliance
overall audit and monitoring strategy of Capchem and optimize management systems and regulations.In respect of anti-corruption and integrity the Audit Commit- pany's compliance and clean operation. During the Reporting the Company's integrity system and internal control mechanism. Organize and carry out the promotion of compliance culture and
tee and Compliance Committee under the Board of Directors Period the Company did not have any corruption-related vi- Identify analyze and develop contingency plans for risks that supervision and inspection work report compliance risks and
of the Company are in overall charge of the Company's an- olations8 nor did it have any lawsuits arising from corruption may occur during operations. improvement plans to the Compliance Committee and urge de-
ti-corruption and compliance management and supervision unfair competition antitrust and monopoly by the Company partments to implement corrective actions.while the Audit and Supervision Department and the Compli- or its directors management or employees. O rganize and carry out compliance anti-corruption audits
ance Office serve as the executive agencies to escort the Com- covering all the Company's operations on a three-year cycle make
recommendations and follow up on corrective actions based on
the results of the audits and inspections.Collect analyze follow up investigate and process reported
information.Capchem Anti-Corruption and Compliance Management Structure
During the Reporting Period the Company systematically organized the audit process of the Audit and Supervision
Department and added management audit and management supervision links to accurately control the Company's audit
plan management project program implementation of the audit project and subsequent rectification of issues so as to
ensure that the Company carries out compliance management efficiently.Reporting Complaints and Whistleblower Protection
In order to strengthen the clean construction and anti-corruption promptly reflect the irregularities and disciplinary behaviors of
work Capchem has established a diversified and sound reporting the Company in the course of daily operation so as to build a
and complaint mechanism and communication channels clean business ecology together. During the Reporting Period the
and has stipulated the scope and requirements for reporting Company conducted investigations and dealt with the relevant
cases. The Company cordially invites employees suppliers and incidents based on the tip-offs and rectified the internal control
other stakeholders to report anonymously or in real name to issues identified in the course of the investigations.
4 https://www.capchem.com/viewfilebizce/1782933290285322240/%E6%96%B0%E5%AE%99%E9%82%A6%EF%BC%9A%E5%8F%8D%E8%85 Receive the Form an After verifying the Initiate the
%90%E8%B4%A5%E6%9D%A1%E4%BE%8B.pdf reported investigation team evidence prepare accountability
5 https://www.capchem.com/viewfilebizce/1782933290469871616/%E6%96%B0%E5%AE%99%E9%82%A6%EF%BC%9A%E4%B8%BE%E6%8A information and carry out the investigation procedure
%A5%E4%BA%BA%E4%BF%9D%E6%8A%A4%E5%92%8C%E5%A5%96%E5%8A%B1%E5%8A%9E%E6%B3%95.pdf by Audit and the investigation report and provide
6 h ttps://www.capchem.com/viewfilebizce/1782933290662809600/%E6%96%B0%E5%AE%99%E9%82%A6%EF%BC%9A%E5%95%86%E4%B8 Supervision procedure by Audit review comments
%9A%E9%81%93%E5%BE%B7%E8%A1%8C%E4%B8%BA%E5%87%86%E5%88%99.pdf Department and Supervision
7 All employees: including full-time and part-time employees temporary employees (including outside directors supervisors and outside consultants etc.) Department
8 I ncluding situations where directors management personnel or employees are dismissed or disciplined due to commercial bribery or embezzlement
investigated by competent authorities or have contracts with business partners terminated or not renewed. Capchem report processing flow
22 23About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
The Company also strictly abides by the Protection and Incentives Measures for Whistleblowers internal regulation according
to the case to give effective real-name whistleblowers and cooperative units of up to 200000 cash awards and through the Type of activity Activities
specialized handling of reported evidence strict confidentiality of reported information to protect whistleblower information
to eliminate any form of retaliation.Audit projects Organize and conduct integrity audits of directors and supervisors and comprehensively
evaluate the connected transactions and authenticity of conflict-of-interest activities and
seriousness in dealing with failure to declare truthfully and irregularities.I ntegrity audit program for suppliers.Channels for complaints and reporting
U sing the Capchem Management College as a platform include integrity training as one of
the contents of the induction training for new employees.Training and
Wechat Official Account: Integrity Capchem Tel: +86 0755-89923410 cultural promotion Actively participate in offline monitoring training of authoritative organizations and integrate and learn from excellent compliance monitoring and risk response cases of peers.Email: audit@capchem.com Internal OA Platform:AU-05 Integrity Reporting Organize the swearing-in of executives and the signing of the Commitment Letter of Integrity.Organize integrity campaigns and sign integrity pledges at the launch of investment projects.Address: Audit and Supervision Department 20/F Capchem Science and Technology
Building Changye Road Pingshan District Shenzhen China Publish clean and sunny practice and illegal cases through the OA and WeChat public
number from time to time.Zip code: 518118 Visits: support for whistleblowers to make appoint-
ments to visit and report Anti-Corruption and Compliance Culture Efforts by Capchem in 2024
Capchem also puts high standard requirements on integrity audits involving suppliers on integrity compliance
suppliers' clean management. The Company sends out comprehensively sorted out and evaluated the situation
holiday integrity reminders and integrity notification letters of integrity management and system construction of the
from time to time and requires 100% of its suppliers to Company's procurement business chain and put forward
Promotion of a Culture of Anti-Corruption and Compliance sign Integrity Agreement or Integrity Clause so as to jointly specific rectification suggestions on the construction of our maintain a clean and healthy business environment. supply chain integrity system based on the audit results.During the Reporting Period the Company carried out
Capchem enriches the kernel of anti-corruption and com- The Company also strictly implements the integrity supervision
pliance management with diversified training and cultural mechanism for leading cadres and urges leading cadres
propaganda work. The Company has listed anti-corruption to perform their duties and responsibilities by carrying out
and compliance training as an annual mandatory training cadres' duty review and exit integrity audit programs so as to Anti-Unfair Competition
course in the Capchem Management College organized create a clean and upright business environment. During the
training for the Anti-Fraud Alliance of Guangdong Enterprise Reporting Period 100% of the Company's employees signed
Internal Control Association and continuously outputs an- the Commitment Letter of Integrity and 100% enrolled in anti- In accordance with the Civil Code of the People's Republic and technical control measures to ensure that the Company's
ti-corruption and compliance culture concepts through the corruption courses with a total of 2434 hours of integrity of China the Anti-Unfair Competition Law of the People's trade secrets are not infringed upon.media of OA WeChat company bulletin boards and multi- training conducted throughout the year. Republic of China the Criminal Law of the People's Republic of
media platforms. China and other laws and regulations as well as the regulatory In addition the Company has formulated and continuously
requirements of the various regulatory bodies Capchem optimized internal systems such as the Compliance Management
strictly guards against the risks of undue competition and System Press and Publicity Management Measures External
behaviors such as infringement of trade secrets false publicity Information Reporting Management Measures Contract
unlawful disclosure and the implementation of monopoly. Management System etc. and the Legal Affairs and Compliance
Department the Brand Culture Group and the Board of Directors'
a total of Capchem has formulated and continuously improved internal Office have organized and carried out the management of
systems such as the Business Secret Management Rules the Company's compliance management press releases and
100 100 2434 Confidential Personnel Management System Confidential publicity announcements and conducting rigorous reviews of % % Area Management System Confidential Assets Management business processes. At the same time the Company formulates hours System etc. and the Confidentiality Office has coordinated and implements the process of press and publicity and external
the Company's confidentiality management work clarified announcement release to avoid the implementation of
of the Company's employees enrolled in anti-corruption courses of integrity training conducted the definition of the Company's trade secrets confidentiality monopoly false publicity illegal disclosure and other risks and to
signed the Commitment Letter throughout the year requirements the scope of protection etc. and set up ensure that the Company operates in a compliant manner.of Integrity strict confidentiality authorization approval process. In
addition the Company requires confidential personnel to During the Reporting Period there were no litigation incidents
sign confidentiality agreements and carry out confidentiality and regulatory penalties related to infringement of trade se-
awareness training and at the same time implements strict crets false publicity disclosure violations or implementation
hierarchical control mechanisms for confidential areas and of monopoly.assets and implements classified labeling physical protection
24 25About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Risk Management Information Security
Risk management is one of the key areas to ensure the longevity of an enterprise. Capchem continuously improves its internal Capchem attaches great importance to corporate and personal information security and privacy protection. In accordance
risk management structure implements risk identification supervision response process and internal training and strictly with the Data Security Law of the People's Republic of China General Data Protection Regulation (GDPR) and other laws and
controls possible risks in its daily operation to ensure the vitality and competitiveness of the enterprise. regulations at home and abroad as well as the Information System Security Management Rules Business Secret Management
Rules and other internal system guidelines and combined with the needs of the enterprise's internationalized development
Internal Control and the industry's best practices the Company has constructed a comprehensive information security and privacy protection management system and the Confidentiality Office has cooperated with various departments and subsidiaries to implement
information security management initiatives to protect the integrity confidentiality and transparency of the enterprise's
Capchem strictly complies with the laws regulations and regulatory requirements of the locations where it operates and deploys internal business data at home and abroad.and external measures to identify assess respond to and supervise corporate risks from the top down. The Company has constructed and
continuously improved the "three lines of defense" risk management structure and at the same time set up the Legal Affairs and Compliance In order to ensure the safety and security of the Company's and customers' information assets Capchem regularly iterates
Department as the risk management department and the Audit Committee the Audit and Supervision Department the external independent information security and data protection technologies implements and regularly tracks the effectiveness of privacy and
directors and the auditing organization as the risk supervision department to escort the Company's risk management work. security measures such as access control computer asset encryption virus protection and so on and builds a high wall of
information security protection for the Company 's stable operation.The first line of defense The second line of defense The third line of defense
Each business and functional The Legal Affairs and Compliance Audit Committee Audit and
department: Manage and deploy Department: Collaborate with Supervision Department External Information security
tasks independently. functional departments to identify Independent Directors and Audit management initiatives Description of information security management initiatives
assess operational risks and Institutions: Perform supervisory
implement response plans. functions.Access control Deploy Internet behavior management systems such as network access guest reservation AD
Capchem's "Three Lines of Defense" Risk Management System domain control etc. and implement normalized access control.Risk management process Bright spot initiative Computerized asset Restrict the access of unauthorized personnel use and storage of confidential documents within
Every year the Legal Affairs and Compliance Department of Capchem organizes various business and functional encryption the Company by deploying a file encryption system.departments to conduct risk identification. The types of risks identified include business ethics risk safety and
Risk identification environmental protection risk product quality risk accounting and tax risk labor and employment risk intellectual Actively promote the iteration of the Company's network protection technology and prevent
property risk trade control risk overseas operation risk corporate governance risk privacy protection risk and Virus protection possible network viruses through the Tianqing anti-virus software system.information security risk.Businesses and functions systematically identify the various issues that may arise in the course of the Attack and defense drills: Invite third-party professional security service providers to carry out
Risk assessment Company's operations categorize and grade the risks according to their frequency and impact on the attack and defense drills on a regular basis so as to dig out the potential risk points of IT assets Company and formulate corresponding risk contingency plans and response plans by taking into account and implement corrective actions.the risk level response cost processing time and other factors. Emergency drill
Phishing Email Drill: Invite third-party professional security service providers to carry out phishing
Based on the Company's risk identification and risk assessment each business and function continuously email drills on a regular basis to effectively strengthen the awareness of information security and
Risk response optimize internal systems and control processes and organize and implement risk response and preventive privacy protection of employees in various departments.measures in accordance with the risk response plan.Each business and functional department synthesizes internal and external audit observations and enhancement
Improvement and improvement recommendations and combines them with the unit's risk management practices to
continuously improve the unit's risk management ability and to continuously reduce and address risks. The Company continues to promote the information security Capchem is committed to building a compliant and effec-
Capchem's Risk Management Initiatives culture organizes and plans information security training tive information security system and actively cooperates
covering all employees and ensures that the importance with customers to carry out information security-related
Risk Oversight and Culture Promotion of information security is deeply rooted in people's minds audits. The Company carried out ISO 27001 system review
by sharing information security cases and management and successfully passed the annual audit by a third-party
Internally the Compliance Office deploys compliance risk management system special training management experience exchange requirements. During the Reporting Period the Company organization in 2024 and during the Reporting Period the
and other cultural publicity work continues to instill management awareness and coping strategies in the employees improves staff organized information security training for all employees as scope of the certification of the system has covered Shen-
risk awareness and ensures the effectiveness of the implementation of the compliance risk system and management requirements. well as a special training session on preventing phishing. zhen Capchem Huizhou Capchem and Nantong Capchem.Meanwhile the Audit Committee of the Company coordinates the risk supervision work and the independent directors of the At the same time the Company carried out IATF 16949 cer-
Company actively participate in the corporate governance and risk management and control process and put forward risk At the same time Capchem implements the high standard tification and successfully passed the annual re-audit of the
enhancement and improvement suggestions to ensure the smooth implementation of the Company's major projects. requirements for information security and privacy into the third-party certification body. During the Reporting Period
management of suppliers. The Company requires 100% of there was no information leakage incident and complaint
Externally the Company's various professional committees work with third-party auditing institutions to carry out business-wide risk core material suppliers to sign confidentiality agreements related to violation of customers' privacy and loss of cus-
identification and internal control audits sort out and form internal control risk lists and invite third-party professional consulting to continuously improve the level of information security tomers' data in Capchem.institutions on a regular or irregular basis to carry out training programs such as interpretation of laws and regulations process optimization management of suppliers and jointly maintain the overall
and other training programs to provide direction and guidance for the improvement of the Company's management effectiveness. data security of the industry chain.
26 27About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Innovation-driven
R&D input of RMB 424.42 million
C onducted 314 R&D and intellectual property training sessions
Accumulatively obtained 543 domestic and international patent
granted and 262 registered trademarks
Product Quality
First pass yield of finished products reached 99.5%
I mplemented the SRM system for systematic supplier management
raising raw material qualification rates to 96.8%
No major quality accidents occurred
Q uality management training covered 9418 person-times with a
total training duration of 30400.25 hours
Chemical Safety
Implemented a reduction plan for SVHCs
Conducted PFAS identification across the group's entire product line
actively sought PFAS alternatives and continuously monitored
PFAS proposal developments
02 Occupational Health and Safety C umulative investments in occupational health and safety amounted to RMB 55.45 million Eight operating production bases have obtained ISO 45001 certification
with a coverage rate of 72.7%
No general or more severe work safety accidents suspected occupational
diseases or confirmed occupational disease cases occurred
Conducted 544 emergency drills and 565 safety training sessions with
100% coverage of production employees and a total training duration
Responsibility of 118474 hoursCustomer Services
Overall customer satisfaction score of over 90 for years
Customer complaint handling rate reached 100%
Responsible operation is the foundation of Capchem's sustainable No cases of customer privacy breaches occurred
development. The Company continuously expands our green product
portfolio drives process upgrades through R&D innovation emphasizes
intellectual property protection creates a safe and healthy production and
operation environment and provides green and reliable product and service
solutions. In daily operations we adhere to a customer-centric philosophy
actively respond to customer needs and continuously improve our service
system to enhance customer service quality and satisfaction.Capchem Research Institute
28 绝密文件 未经许可 不得复制扩散About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Innovation-driven
Capchem is committed to becoming a leading global enterprise specialized in electronic chemicals and functional materials.The Company continuously optimizes its R&D innovation strategy and management system builds a highly efficient R&D team
and drives the collaborative and innovative development of the industrial chain and supply chain with high proportion of R&D
investment and scientific R&D management. At the same time Capchem continuously deepens the protection of intellectual 01 Concept
property rights providing abundant vitality for the Company's R&D innovation and achievement protection. Design and New
integration 06 Life technology
system
Electrolyte cycle 02 Design
formulation New
system product
Analysis and IPD process
testing system New
Research and Development Innovation 05 Release standardElectrolyte 03 Development
testing system New
process
Capchem attaches importance to the construction of R&D the work of product R&D product technical support testing Material 04 Validationpurification
and innovation system. The Company has established a R&D and validation as well as information management and so system
management structure with the Executive Committee as on. During the reporting period Capchem further optimised
the leader the Technical Committee as the support and the the organisational structure of the research institute to
CTO as the management with research institutes business provide stronger organisational guarantee for promoting
divisions subsidiaries production bases and various the Company's high-quality development in the fields of Capchem's R&D innovation mechanism
subordinate departments which collaborate to carry out electronic chemicals and functional materials.In 2024 Capchem further integrated the resources of the technical research platform focused on the four management
objectives of frontier exploration product development product quality control and intellectual property enhancement
and the four major research and development directions striving to break through the key technologies in the field of
Executive Committee electronic chemicals and functional materials and realize a unified route for the transformation of research results and
engineering technologies.Technology Committee
Battery Chemicals Organic fluorine Chemicals Capacitor Chemicals Semiconductor Chemicals
CTO(Chief Technology Officer)
Focusing on customer de- Deepening strategic lay- Strengthening technological Focusing on the promotion
mand improving product out and breaking through barriers delivering higher- and innovation iteration of
R&D efficiency and deep- technological bottlenecks performance products and key products
ening cost reduction and of key products continuously monitoring
Research Institute Business Division Subsidiary / Production Base efficiency improvement market trends to explore
new business opportunities
Subordinate Units Subordinate Units Subordinate Units
R&D Management Structure
30 31About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
In 2024 Capchem further optimised the evaluation and During the reporting period
incentive mechanism for R&D personnel around the three
dimensions of performance appraisal promotion channel
and project evaluation method to enhance the fairness
and impartiality of the evaluation and incentive for R&D a total of 99
personnel. During the reporting period a total of 99 R&D
personnel of Shenzhen Capchem received R&D incentives. R&D personnel of Shenzhen Capchem received
R&D incentives
Training on the topic of Quality knowledge Training on the topic of Analysis and Training on the topic of Lithium supplements and
and skills investigation of electrolyte discolouration Energy Storage Battery Industry Dynamics
Capchem's R&D Personnel Evaluation and Incentive Mechanism
At the same time Capchem has continued to promote digital transformation and laboratory construction improving the
Establishing a R&D project point system based qualification standard efficiency of research and development and product quality.Allocate project credits based on factors such as project complexity scale innovation and the participation and contribution R&D Innovation Intelligent System
of R&D personnel providing a more objective and quantifiable method for assessing the contributions and capabilities of R&D
personnel.LIMS System (Laboratory Information Management System) RDM System (Research and
Expanding career advancement pathways Developemnt Management System)
● T he Laboratory Information Management System (LIMS) is an
The existing five-tier career advancement pathway has been expanded to eight tiers. The difficulty levels between each integrated inspection quality management system that consolidates ● T he RDM System is a smart project
tier have been rationally planned to better reflect the capabilities of R&D personnel and further optimize their career sample submission analysis method development data feedback management system that relies on the
advancement opportunities. and data monitoring. Advanced Product Quality Planning
● I t helps control inspection quality and efficiently advance the (APQP) project management process. It
progress of R&D projects. strictly controls the entire process from
Reforming the project evaluation methods project initiation planning execution
monitoring to acceptance.The project evaluation method has been reformed from grading at the project initiation stage to grading at the project ● T his system helps improve R&D
acceptance stage with project levels now linked to project points. This change emphasizes the importance of project outcomes efficiency and ensures the quality of
and more accurately assesses the contributions of R&D personnel to the projects. MES System (Manufacturing Execution System) R&D products.● T he MES system is an integrated manufacturing system that
consolidates data monitoring and traceability throughout the entire
Capchem provides perfect and comprehensive internal and external training for R&D personnel offering professional knowledge production process including production orders manufacturing
support for R&D personnel to burst out with innovative ideas and programme thoughts. packaging filling and shipping.● I t provides convenience for traceability and problem identification
Training content for R&D staff ensuring the accuracy of the production process.Systematic Training Business Management Training
● T raining on ISO 50001 Energy Management System ● Quality Management Training
Capchem Analysis and Testing Centre was accredited by CNAS
● T raining on ISO 45001 Occupational Health and
Safety Management System
In August 2024 Campchem analysis and testing centre passed the review
● T raining on ISO 14001 Environmental Management Professional Training of laboratory accreditation by the China National Accreditation Service for
System Conformity Assessment (CNAS). As the technical support department of the
● Product Performance-Related Training Company's R&D Capchem Analytical Testing Centre has led the construction of
● T raining on IECQ QC 080000 Hazardous Substance the Group's integrated analytical testing platform which provides accurate and
Process Management System ● Industry Development Trend Training efficient technical support for R&D work and helps product development and
quality control.● Laboratory Management Training CNAS accreditation certificate of
Capchem analysis and testing center
32 33About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Capchem actively engages in exchanges and cooperation with ecosystem partners. By participating in industry cluster associations During the reporting period Capchem actively participated in the standard setting empowered the industry's new quality
and exchanging insights with industry peers the Company effectively grasps the cutting-edge development trends of the industry. productivity through the accumulation of rich industry experience boosted the industry's high-quality development and led
This collaborative approach not only helps Capchem accurately capture industry dynamics but also jointly propels the development and accelerated the standardisation of the industry.of the entire industry chain accelerating the goal of achieving a green transformation.Shenzhen New Energy Storage Industry Association The National Advanced Battery Materials Industry Cluster In January 2024 the group standard T/CI 291-2024 Lithium In March 2024 the group standard T/CAAMTB 187-2024
Hexafluorophosphate Electrolyte Containing Temperature- Organic Electrolyte for Sodium-ion Batteries which
Sensitive Special Additives drafted by Capchem was Capchem participated in drafting was formally approved
● I n April 2024 Capchem joined the Shenzhen New Energy ● I n October 2024 Capchem also joined the National formally approved and released for implementation. and released for implementation.Storage Industry Association as a Vice President unit. Advanced Battery Materials Industry Cluster as a Vice
Chairman unit.● T he Shenzhen New Energy Storage Industry Association
was jointly initiated by leading and backbone enterprises ● T he National Advanced Battery Materials Industry Cluster
in the electrochemical energy storage sector in Shenzhen aims to integrate resources in the advanced battery
as well as top-tier universities and research institutions. materials sector and coordinate efficient collaboration Participated in the formulation of three group In December 2024 the group standard In August 2024 the group standard T/
It is dedicated to promoting the development of the new among government industry academia research standards: Technical Requirements for Electrolyte TCIESC 77-2024 Industrial Lithium CIET 624-2024 Technical Specification
energy storage industry in Shenzhen. finance and application. By leveraging the cluster's of Lithium Battery for Low Altitude Vehicles Difluoro-Oxalate Borate which for Electrolyte for Lithium-ion Batteries
innovative development capabilities it seeks to cultivate Methods for Analysing Purity and Impurities Capchem participated in drafting was which Capchem participated in drafting
a world-class advanced manufacturing cluster. of Lithium Bis (Fluorosulfonyl) Imide (LiFSI) formally approved and released for was formally approved and released for
Technical Requirements for Polymer Electrolyte implementation. implementation.for Solid State Batteries.Jingmen Capchem Participated in China Carbon Footprint Research Science and Technology Service
Corps Project Launch and Lithium Industry Innovation Discussion Meeting
In September 2024 Jingmen Capchem
participated in China Carbon Footprint
Research Science and Technology Ser- Capchem was awarded Capchem won the title of
vice Corps Project Launch and Lithium
Power Industry Innovation Discussion 2024 Overseas Layout Pioneer Innovative Enterprise of the Year
Meeting.in China's battery industry
At the meeting representatives of
various enterprises participated in the
discussion on enterprise innovation and
development under the dual-carbon
target shared their practices and Capchem was awarded Capchem entered the list of
plans for carbon reduction and green
development and exchanged and Top 100 Shenzhen 2024 Global Fluorine Chemical Industry TOP 20
discussed technological innovations Industry Leaders 2024
paths to reduce carbon footprints and enterprises issued by China Fluorine Silicon Organic Materials Industry Association
sustainable development strategies for
the lithium industry. China Carbon Footprint Research Science and Technology Service Corps Project Launch
and Lithium Industry Innovation Discussion Meeting
Sanming Hexafluo was ranked Sanming Hexafluo won the title of
96th in the list of China Petroleum and Chemical Industry
The Company collaborates with renowned universities and research institutions to deepen the integration of industry
academia and research. Committed to the efficient integration of technology R&D talent cultivation and the transformation Top 100 Fujian Manufacturing Technology Innovation Model Enterprise
of R&D achievements Capchem contributes to the development of new quality productive forces. Private Enterprises in 2024 in 2024
Participated in the formation of Power Battery Key Core Technology Tackling Consortium Dr.Yunxian Qian won the
In June 2024 Capchem participated in the formation of Power Battery Key Core Technology Tackling Consortium to Fresh New Talent Award
carry out joint research around the key technology bottlenecks of power batteries for new energy vehicles and to
promote the sustained and healthy development of new energy automobile industry. in the second Cluster Fresh New Award of the Advanced Battery Materials Cluster
34 35About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Intellectual Property Rights（IPR）Protection
Capchem organically integrates the IPR protection with and management of the Company's brands. In addition Registered Trademarks Patent Granted Patent Applications in 2024
the Company's business management objectives and the Company has upgraded the Intellectual Property
follows the intellectual property management policy of Management System Platform (IPMS) which further
"Forward-Looking Layout Scientific Management Strict protects R&D and innovation through regular tracking and From 1st January 2024 to 31st December 2024
Protection and Efficient Operation". From the dimensions synchronization of patent information and data.of institutional improvement risk monitoring and man-
agement and awareness enhancement it improves the Capchem regularly carries out intellectual property training to
standardization and efficiency of the Company's intellectual strengthen employees' understanding of intellectual property
property management work. regulations and requirements enhance their awareness of New domestic and foreign 41
intellectual property protection and risk awareness and registered
The Company has set up a brand management committee improve the intellectual property quality and ability of trademark granted
at the group level to further strengthen the protection employees in R&D departments and various positions. New foreign invention 17
patent granted
Training Objectives Training topics Frequency of training New domestic patent
5121
granted
21
Training Camp of Capchem Bangjing Program Intellectual property basics training Once per year New PCT international
patent applications
Business Unit Functions and Business New foreign patent
25
Backbone Intellectual Property Risk Awareness Training Once per year applications
New domestic patent 133 27
Intellectual property basics training applications
Subsidiaries and Operating Units Once per quarter
Practical training in intellectual property
020406080100120140160
R&D departmental units Patent Layout Training Once per month
Invention Patent Utility Model Patent
Intellectual Property Department Practical training in intellectual property 1-2 times per month
The theme lecture of Construction of Intellectual Property Compliance System for Scientific and
Creative Enterprises
On the 24th World Intellectual Property Day
Capchem Research Institute invited intel-
lectual property experts to hold a seminar
on Construction of Intellectual Property
Compliance System for Scientific and Cre-
ative Enterprises aiming at promoting the
construction of the Company's intellectual
property management enhancing the staff's
awareness of intellectual property rights
and helping to protect innovation.At the lecture experts from Shenzhen Intellectual
Property Expert Committee explained the
overview of corporate IPR compliance system
system construction risk management and
other contents through knowledge training
and case sharing helping employees to deeply
understand the IPR compliance system IPR
compliance requirements and practice focus. Capchem's Construction of Intellectual Property Compliance System for
Scientific and Creative Enterprises Theme Lecture
Capchem's R&D Laboratory
36 37About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Product Quality
Adhering to the philosophy of Responsibility Capchem consistently upholds the quality policy of accurately understanding customer Capchem has established a systematic regulation including We have established a BCM system with recovery and effective
needs strictly implementing quality standards continuously improving quality services ensuring the success of the first delivery in Non-Conforming Product Control Procedure Internal Audit response capabilities optimized resource allocation and
every time and pursuing perfect customer satisfaction. The Company has established a Capchem quality management ecosystem Procedure Customer Complaint Management Procedure formulated emergency response and recovery strategies to
winning customer trust through high-quality products and superior services. Regulation on Quality Incident Escalation and Accountabil- avoid the impact of emergencies on product quality to the
ity Management etc. In 2024 the Company responded pos- greatest extent possible. In addition the Company continues
itively to the internal and external changes by adding a new to enhance ESG management capability in the integrated
Business Continuity Management Handbook and revising management base introduces RBA management system
the BCM Business Continuity Management Procedures. strengthens social responsibility management capability and
Quality Management System strengthens the international competitiveness of Capchem.Capchem focuses on perfecting our quality management system to achieve efficient operations and management. The
Company has established a quality management structure supported by the Quality Assurance Center Business Department
Quality Control Quality Control in Supply Chain and Base Quality Control. Each department's responsibilities are clearly Capchem Assisted Subsidiaries to Obtain Various Capchem Introduced RBA Management
defined to collaboratively support and oversee the Company's quality management activities. The Quality Assurance Center is Quality Management System Certifications System in Many Bases
responsible for formulating quality management strategies and plans in line with the Company's operational strategic goals.The Business Department Quality Control proposes requirements for quality strategy planning based on the actual needs of In 2024 Capchem assisted our subsidiaries in com- In addition to the headquarters of Capchem the
their respective products. Quality Control in Supply Chain is tasked with overseeing the quality of suppliers and raw materials pleting the introduction of quality management Company introduced RBA management system in
while the Base Quality Control implements production control and ensures compliance testing at the base level. system to improve the quality management level Huizhou Nantong Sanming Tianjin and Jingmen
of the subsidiaries enhance market competitive- bases in 2024. Through standardized system
ness as well as promote supply chain co-operation construction the Company will strengthen our
System Planning and System Supervision and Quality Management Organization and common prosperity. In addition the Company social responsibility management capabilities in
Implementation Inspection and Personnel Capacity Building Quality Risk Management helped Capchem Poland to communicate with the protecting labor rights and interests safeguarding
certification body provided certification informa- occupational health and safety promoting
Quality Informatization Process System Integration Product Compliance Continuous Improvement tion and supported the Capchem Poland's on-site environmental protection and ensuring business
audit online. 2024 Capchem Poland successfully integrity so as to build a more competitive brand
passed the formal certification audit of IATF 16949 image of Capchem.and the supervision audit of ISO 9001.Raw and
Auxiliary Managing Internal and
Materials External Supply Chain Quality
Logistics
Processes & Capchem continuously refines our quality system assessment mechanism to achieve dynamic monitoring of quality
Standards Supply Chain
Operating
Quality Control Specifications management effectiveness. The Company has established key quality indicators such as raw material qualification rates
first-pass yield of finished products and customer complaints and conduct monthly or annual quality assessments. We also
require responsible departments to focus on analyzing the causes of substandard items formulate corresponding corrective
Product R&D rt and Supo ervis Quality
action plans and continuously elevate the overall level of quality management.Quality p i Monitoring Productp
Quality
Assurance
Product Center Process Huizhou Capchem Quality Review and Performance Incentives
Quality Control
Business u
Department pervis ppo
r
ion Su Base Quality In 2024 Huizhou Capchem adjusted the indicators such as product qualification rate and shipping inspection Quality Control
Customer Control Exception qualification rate through management review and organized ten key product quality improvement projects in a Customer SNeeds upport and Supervisio
n
Handling Process targeted manner based on the review. Huizhou Capchem determined the improvement objectives tasks and plans by
analyzing the historical quality data of our products and combining them with the needs of the market and customers.Huizhou Capchem regularly tracks the achievement of product quality targets and carries out the assessment of lean
Customer The Quality Assurance Center collaborates Quality management work through the establishment of departmental performance bonus packages and lean management
Service with the business unit quality control base Improvement special awards for departments and employees with excellent performance incentives to fully stimulate the
quality control and supply chain quality departments and employees to carry out quality enhancement work enthusiasm.control in a four - in - one management model.Capchem Quality System
3839
Support
Su
t and Supervision
upp
ort and
S pervi
sion
Su
on
S
Support a
ndAbout the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Digitally Enabled Quality Management Systems Quality Management Enhancement
Capchem actively promotes the digital transformation of carry out special supplier quality improvement projects
product quality management and realizes accurate control to strengthen the quality of raw materials increase the Whole Process Full Life Cycle Quality Management
of quality data in the whole chain from suppliers to clients qualification rate of raw materials to 96.8% and strengthen
by building a comprehensive information platform. The the quality management capability of suppliers. In
Company has deployed a variety of information systems addition the Company continues to improve the whole Capchem implements full-process full-life-cycle quality management covering six dimensions: system R&D process supplier
including CRM SRM LIMS MES OA and SAP to build a chain of semiconductor product packaging traceability customer quality management and continuous improvement management. Through process optimization and technological
complete digital quality management system. The quality control optimize the quality of statistical analysis of innovation Capchem is committed to providing customers with high-quality products and services and driving the sound operation
of products is guaranteed from the quality control of raw the process and further enhance the digital capacity of and sustainable development of the whole process.materials dynamic monitoring of production process quality management. Through the synergistic operation
product inspection and sales data analysis. of the system the Company identifies problems and takes
effective improvement measures to reduce the defective Quality System Management Manufacturing Process
In 2024 Capchem introduced SRM system to systematically rate of products and enhance customer satisfaction. Quality Management
manage the quality of raw materials and continued to
● I mplement annual quality objective performance evaluations internal ● A dopt SPC statistical tools in
audits external system audits and management reviews to ensure the conjunction with information
suitability adequacy and effectiveness of the quality management system. systems like MES DCS PLC and
Quality System Construction LIMS to comprehensively control
factors including personnel
machinery materials methods
Capchem comprehensively safeguards the quality of our party organizations to carry out audits and during the environment and measurement
products through a combination of internal and external Reporting Period the Company has obtained a number in the production process
audits. The Company follows the standards of ISO 9001 and of authoritative certificates such as ISO 9001 Quality R&D Quality Management ensuring product consistency.IATF 16949 and regularly implements internal audits of Management System IATF 16949 Automotive Quality
our quality management system to assess our compliance Management System QC 080000 Hazardous Substance
●
adequacy and effectiveness with the aim of grasping the Process Management System and CNAS Nat ional Leveraging actual R&D scenarios and integrating the APQP development
current status of the system and promoting continuous Laboratory Management System. process utilize quality management tools such as Design Matrices DFMEA
optimization. Meanwhile the Company introduces third- PFMEA and Special Characteristic Management. By establishing five major quality gate checks research and development quality is assured.IATF 16949 CNAS National
ISO 9001 Quality Automotive Quality QC 080000 Hazardous
Management System Management Substance Process
Laboratory BCM Business
Management Continuity System
System Management System System
Supplier Quality Management
Shenzhen Capchem Shenzhen Capchem Shenzhen Capchem Shenzhen Capchem Shenzhen Capchem
● I mplement full lifecycle quality management of suppliers through supplier qualification audits small-batch trials
Huizhou Capchem Huizhou Capchem Huizhou Capchem Huizhou Capchem Jingmen Capchem PPAP abnormal situation handling performance evaluations change control special improvements rectifications
and exits.Nantong Capchem Nantong Capchem Nantong Capchem Nantong Capchemg Sanming Hexafluo
Suzhou Novolyte Suzhou Novolyte Tianjin Capchem Tianjin Capchem Huizhou Capchem ● R equire all raw material suppliers to sign Quality and Environmental Protection Agreements Environmental
Compliance Declarations and Environmental Controlled Substances Survey Forms to ensure supplier products
Jingmen Capchem Jingmen Capchem Nantong Capchem meet EU RoHS REACH and customer requirements.Sanming Hexafluo Sanming Hexafluo Tianjin Capchem
Hunan Fluopont Tianjin Capchem
Jiangsu Hicomer Jiangsu Hicomer
Tianjin Capchem Capchem Poland Customer Quality Management Continuous Improvement Management
Fujian Heptafluo
● E stablish a dedicated customer service team ● P ractice lean management principles by initiating QCC
Capchem Poland comprising quality technical and sales pro- improvement projects TPM (Total Productive Mainte-
Nantong Top fessionals committed to providing customized nance) for all-employee equipment management and solutions and continuously enhancing customer team building to enhance employees' quality aware-
satisfaction. ness and innovation capabilities thereby elevating
overall quality standards.Capchem Quality System Construction Capchem Product Life Cycle Quality Management
40 41About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Product Testing and Non-conformity Management
Capchem Improvement Proposal University Hall Activity
Capchem strictly abides by the norms of Incoming Inspection Management of Central Control Nonconformity Handling and
Procedure Production Process Inspection Procedure and Management of Finished Product Nonconformity Handling
Finished Product Inspection Procedure to inspect materials on the basis of the Non-conformity Control Procedure Capchem has built a mature and perfect improvement proposal management system formed a proposal publication
in each production process to ensure that the materials and clarified the division of responsibilities of each link. evaluation incentive and promotion mechanism covering all employees and encouraged employees to deeply
meet the quality standards and customer requirements. In The Company set up a special group for improvement participate in company management.order to further strengthen product quality management and formed a mechanism for regular analysis of quality In October 2024 Capchem successfully organized the Improvement Proposal University Hall activity in which each
in 2024 the Company established the process documents problems based on the QCC method to improve the internal subsidiary chose the best 2-3 proposals to share and publish and the Company unified the evaluation and incentive
of Management of Non-conforming Material Handling and external problems found in a timely manner. to promote the application of excellent improvement concepts and improvement methods. At the end of this
Reporting Period Capchem has initiated and passed 3854 improvement proposals and we work together with our
subsidiaries to achieve refined product quality management.Raw material incoming inspection In-process control inspection Finished product and shipping inspection
Improving Enhancing Upgrading Technical Strengthening
Product Quality Reducing Costs Efficiency Standards Management Capabilities
Capchem Improvement Proposal Covers Dimensions
Capchem Product Testing Process
Nonconformance Identification and
Identification Segregation MRB Review Disposition Improvement Capchem Quality Month Activities
In active response to the call to Strengthen Quality Support and Jointly Build a Quality-
Oriented Country and enhance the overall quality level 10 units including Shenzhen
Capchem Nonconformity Control Procedures Capchem and Huizhou Capchem jointly organized a series of exciting and fruitful
Quality Month activities in 2024. Among them the Quality Wins at Capchem quiz
attracted 16031 participants the Quality is Imperative activity utilized quality tools
more than 60 times the Quality Stories at Capchem collection received 55 excellent
Supplier Quality Management and Enhancement stories the Improvement University activity submitted 14 outstanding proposals and
the risk identification activity identified 72 risk points and completed improvements.Capchem carries out differentiated management of suppli- covering quality management elements such as system op-
ers of different grades based on the management methods eration and process control. For key suppliers that fail the
of evaluation access grading classification and elimination audit Capchem supports and continuously follows up the
in the Supplier Management Procedure and Systems . The suppliers' improvement measures through online training
Company attaches importance to quality management in technical benchmarking or on-site stationing to achieve the At the end of this Reporting Period Capchem has not experienced any recalls due to product quality issues. In addition the
the supplier admission and performance evaluation stages improvement of suppliers' delivery quality. Company always adheres to the high standard and strict control of product quality and empowers industrial development with
and continuously optimizes the evaluation mechanism quality. At the end of this Reporting Period Shenzhen Capchem won the Shenzhen Mayor's Quality Award (Nomination Award)
and assessment indicators based on standards such as During the Reporting Period Capchem provided a total of Huizhou Capchem won the Huizhou City Quality Award and Sanming Hexafluo won the Sanming City Quality Award.CSR VDA6.3 and IATF 16949. Furthermore Capchem con- 24 quality-related trainings for core material suppliers cov-
ducts daily monitoring of suppliers' basic qualifications ering 299 individuals which was a significant improvement
performance EHS CSR and continuous improvement compared to 2023.and formulates an annual on-site audit plan for suppliers Sanming Hexafluo won the 2024 Sanming City Quality
Award
Quality Culture Building Sanming Hexafluo introduced the model of performance excel-lence management to continuously improve our competitiveness
and market position by clarifying strategic objectives optimizing
Perfect quality culture construction provides inexhaustible Capchem carried out a series of quality management train- internal management processes cultivating high-quality talents
power for the efficient operation of Capchem's quality ing in the current year covering quality improvement tools establishing an excellent brand image promoting the construc-
system. In order to continuously enhance the effectiveness operation specifications supplier quality management tion of corporate culture and promoting the innovative develop-
of the Company's quality management the Company system standards etc. covering 9418 person-times with ment of the Company with the aim of becoming a global leader
actively integrates internal and external resources a total of 30400 hours of training and a per capita training in the green fluorine chemicals and fluorine materials industry. Sanming Hexafluo Won the 2024 Sanming City
optimizes the quality management training program and time of 3.23 hours. Quality Award
improves the theoretical knowledge and practical operation
skills of the staff in product quality management.
42 43About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Chemical Safety
In our production and operational processes Capchem on New Chemical Substances Compliance Declaration
exercises strict management over all chemicals to comply with and REACH Registration . It collaborates with internal and
Capchem is sure that strict chemical safety control is the key cornerstone for enterprises to move forward steadily and fulfil internal policies and relevant laws regulations and industry external professional teams to regularly review inspect and
their social responsibilities. Adhering to the operation concepts of green development and safety first Capchem has always standards of customer countries. The Company conducts disclose the regulatory registration status of all chemicals in
pursued the chemical safety management policy of accurately identifying risks reducing harmful effects and eliminating safety annual chemical identification and formulates compliance compliance ensuring the legality of chemical use and export.and environmental hazards and has improved the chemical safety management system of Capchem practiced the concept of registration plans in accordance with the Regulations
green chemistry and built the foundation of sustainable development.In accordance with the relevant regulations of the Comply with the requirements of the EU REACH
Measures for the Administration of Registration Regulation and conduct compliant registrations
Chemical Management System of New Chemical Substances identify and carry of chemicals exported to the EU under different out the registration simplified registration and tiers based on actual tonnage.regular registration processes for new chemical
substances.Adhering to the principles of risk control at the source substances products and finished goods in the production
and strict management Capchem has formulated and process. Furthermore in 2024 Capchem improved the Cap- China
continuously improved internal regulations such as the chem Hazardous Substance Management Standard based
Environmental Management Substance Control Procedure on laws and regulations industry standards and interna-
Environmental Substance Management Guidelines Sup- tional conventions. This standard guides the identification South Korea EU
plier Environmental Compliance Declaration and Supplier of hazardous chemicals in all products and forms an inter-
Environmental Management Substance Survey Form to nal hazardous substance management ledger and list.standardize the full lifecycle management of all chemicals
USA
File reports in accordance with Korea's K-REACH Conduct compliant declarations in accordance
(Korean Registration of Chemical Substances and with the requirements of USA TSCA-PBT in the
Evaluation Act) . Conduct formal registrations for United States to meet the TSCA's reporting
Domestic laws regulations and standards pre-registered substances whose high-tonnage requirements for new chemical substances and
transition period is about to end to ensure the avoid compliance issues in the trade chain.● L aw of the People's Republic of China on Work Safety ● I dentification of Significant Sources of Hazardous compliance of products exported to South Korea.Chemicals
● R egulations of the People's Republic of China on the
Administration of Controlled Chemicals ● Implementation Guidelines for the Investigation Procurement Evaluation Preparation
and Management of Hidden Accidents in Hazardous
● Regulations on the Safe Management of Hazardous Chemical Enterprises ● R equire regular third-party testing of supplied materials by raw material suppliers and share the test results
Chemicals ● C onduct occasional surveys of all suppliers continuously monitor the introduction of hazardous substances and
● . ..... conduct investigations and controls on prohibited and restricted substances
● E nsure that all products from suppliers comply with the EU RoHS restrictions on ten key hazardous substances as
well as the requirements of relevant regulations and industry standards in the customer's country
International laws and regulations international conventions and standards Research and Development Design Evaluation Preparation Evaluation Preparation Before Trial Production
● E nvironmental Impact As- ● F acility Design for Control Safety in
● E U RoHS (Restriction of Hazardous Substances ● E U Batteries and Waste Batteries Regulation (EU) sessment Construction Project ● R eview of the Trial Production
●●
Directive on the Restriction of the Use of Certain 2023/1542 Safety Pre-assessment Facility Design for Control Occupational Plan
●
Hazardous Substances in Electrical and Electronic Occupational Hazard Pre- Hazard in Construction Project
● V erification of the Implementation
●
Equipment) ● U SA TSCA-PBT (Toxic Substances Control Act) assessment Other Regulatory Approval Documents of Various Measures
● G HS (Globally Harmonized System of Classification ● European Union POPs Regulation (EU) 2019/1021
and Labelling of Chemicals)
● Proposed REACH restrictions issued by the European Preparation for Pre-production Evaluation
● EU REACH (Registration Evaluation Authorization Chemicals Agency (ECHA) ● C ompletion of Environmental Protection Acceptance for Construction Projects
and Restriction of Chemicals)
● R ● EACH ANNEX XVII Entry 79 (EU 2024/2462) Safety Acceptance Evaluation
● E valuation of Occupational Disease Hazard Control Effectiveness
●......Capchem's Preparation for Chemical Safety Assessment at Various Stages
44 45About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Full Life Cycle Management of Chemicals Chemical Risk Identification
Capchem fully implements the full life cycle management of chemicals focusing on three key dimensions: risk identification Capchem attaches great importance to the identification of hazardous substance risks in materials. The Company has formulated
reduction and substitution of hazardous chemicals and chemical safety assurance. By establishing a one document one label the Identification of Hazardous Substances (HS) in Managed Materials and established comprehensive process specifications
management mechanism the Company strictly controls the entire process of production transportation operation storage use conducting hazard assessments on multiple critical aspects including the introduction of products and raw materials.and waste treatment for different types of chemicals forming an efficient closed-loop management mechanism to reduce the
potential risks and adverse effects of chemicals.Production ● O btain safety production licenses promptly upon completion of the trial production phase at the new Conduct a comprehensive iden- Monitor changes in raw material inventory systemati- Establish an internal base. tification of toxic and hazardous cally create an OA process for coding new materials management ledger for
● T imely adjust safety production licenses according to production plans at in-service hazardous substances involved in existing ma- and achieve automated identification of hazardous hazardous substances.chemical production bases to ensure their validity. terials. substances.Transportation ● C ollaborate across departments to develop emergency response plans for logistics and Capchem Chemical Risk Identification Process
transportation.● I nspect and supervise the qualifications and documents of incoming vehicles according to
chemical transportation requirements. Capchem integrates chemical management requirements into our supplier management system. Besides conducting supplier
compliance checks during the introduction of new materials and the selection of raw material supply chains the Company
also requires relevant suppliers to conduct regular third-party testing on the supplied materials and promptly share the test
Operations ● P romptly update the scope of business and personnel information on hazardous chemical results in order to monitor the effectiveness of hazardous substance management.business licenses to ensure their validity.Storage ● C onduct safety evaluations and organize fire protection inspections to ensure storage sites meet
Harmful Chemical Reduction and Substitution
safety requirements.● R egularly inspect storage sites strictly prohibit incompatible storage and avoid exceeding storage Capchem consistently adheres to the development philosophy of environmentally friendly products continuously and
quantities or varieties. systematically reducing and eliminating hazardous chemicals and is committed to providing customers and society with high-
quality eco-friendly and healthy products. The Company exercises strict control over substances of very high concern (SVHCs)
Usage ● C onduct regular inspections of on-site usage to correct violations.and environmentally hazardous substances in core processes such as research and development registration and production.By formulating phase-out plans for SVHCs Capchem gradually reduces or substitutes highly hazardous chemicals and
● R egularly organize emergency drills for chemical spills and implement training and safety education for promotes the certification of substitute substances at the client end. The Company actively responds to and complies with the
operators. EU REACH regulations especially in the face of the PFAS (per- and polyfluoroalkyl substances) restriction proposal. Capchem
swiftly has conducted an investigation of all group products identifying relevant exemption categories and their applicable
Strictly adhere to the management requirement of classified collection and specialized storage for periods based on different product characteristics. Meanwhile the Company continuously monitors the management ● Waste Treatment chemical waste and entrust qualified third-party units for regular transfer and treatment. dynamics of the PFAS proposal regarding other PFAS chemicals.Capchem Full Life Cycle Management of Chemicals
Capchem's Initiatives for the Elimination of SVHCs
● T he Company has eliminated trichlorotrifluoroethane (f113) and prohibited the use of ethylene glycol
monomethyl ether and NN-dimethylacetamide in our products.● T he Company has developed a new material SCT2584 which partially replaces 13-propanedisulfate
(13-PS) and this new product has already achieved mass production. Additionally new materials are
being developed to gradually replace ethylene glycol monoethyl ether acetate and at the end of the
Reporting Period these have been submitted for customer certification.● S anming Hexafluo has developed a new type of fluorinated surfactant which serves as an environmen-
tally friendly alternative to PFOS and PFOA.Capchem Poland
46 47About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Chemical Safety
Management Initiatives
Capchem has established a comprehensive chemical safety control while fulfilling our environmental protection and Personal Protective Equipment
management and control mechanism covering research social responsibilities. In 2024 the Company obtained
and development design procurement pilot production routine environmental management registrations for the
and full-scale production. This mechanism focuses on new chemical substances perfluoroisobutyronitrile and Detailed ● T he laboratories are equipped with PE gloves nitrile gloves activated carbon masks half masks
risk identification for key materials such as new chemical hexafluoroisobutylene further enhancing our differentiated Description and goggles. For hydrofluoric acid the laboratories are equipped with full body suits and full-face
substances environmentally controlled substances (including competitive advantage in the market. masks.SVHCs and hazardous substances) and toxic chemicals. The
Company has implemented advanced systems such as DCS Additionally the Company has formulated SDS and Label
PLC SIS and GDS which possess production operation and according to laws regulations and relevant requirements
alarm control functions. In response to potential risk events clearly outlining the hazardous characteristics usage
such as chemical leaks fires and explosions Capchem specifications precautions and emergency handling
has developed emergency response plans and equipped methods for various chemicals. This provides normative
employees with complete personal protective equipment and guidance for the entire process of chemical use enabling Management Initiatives
emergency materials to ensure their health and safety. downstream clients to use chemicals correctly and safely
thereby safeguarding the occupational health and safety of Emergency Materials
Capchem continuously strengthens risk management and both clients and employees.Detailed ● A ccording to the hazardous characteristics of the chemicals used on-site an emergency medical
Description kit is equipped to store the appropriate medicines needed for emergency disposal.Management Initiatives
Operational Specification
Detailed ● A management system for chemicals has been developed to strictly regulate the use storage and
Description disposal of chemicals.Detailed
●
Description MSDS short cards have been prepared for each reagent.Management Initiatives
Training and Emergency Drill
Detailed ● R egular safety inspections are conducted potential safety hazards are reported and rectified and
Description safety training and emergency drills are organised on a regular basis.Detailed
●
Description There are operational SOPs for each type of experiment.
48 49About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Capchem organizes chemical safety-related training on a regular basis to strengthen operators' awareness of their capabilities
improve their ability to use and manage chemicals and gain a good grasp of emergency response methods. Occupational Health and Safety
Capchem has always regarded work safety as the lifeline red line and bottom line of our development. It firmly establishes
the safety development concept of people-oriented and life supremacy emphasizing source management by selecting green
Capchem carried out chemical management training materials green processes and technological equipment. The Company continuously invests in improving the working
environment provides and utilizes high-standard personal protective equipment and conducts routine occupational health
In order to strengthen employees' awareness of chemical safety and ensure that operators correctly grasp the characteris- examinations to prevent and control occupational hazards thereby ensuring employees' occupational health. Capchem is
tics of chemicals and use them in a standardized manner Capchem has launched chemical management training for dedicated to utilizing advanced technology and scientific management methods to create intrinsic safety throughout the entire
all employees including chemical purchasers business operators persons in charge of the using departments safety process chain and lifecycle of electronic chemicals and functional materials.officers and users. The requirements for the purchase operation use storage and management of entry/exit of precursor
chemicals and explosive chemicals are explained in detail to ensure the compliant use of chemicals and the stable
operation of the Company. Governance
Capchem strictly complies with laws and regulations such as Capchem emphasizes linking occupational health and
the Work Safety Law of the People's Republic of China and has safety performance with management compensation
established a five-tier management structure consisting of the assessment mechanisms. We have established and improved
Board of Directors - Executive Committee - EHS Management a comprehensive EHS responsibility system for all employees
Committee - EHS Center - Subsidiaries providing robust ensuring that each individual fulfills their specific duties with
organizational support for intrinsic safety throughout the accountability implemented at all levels. All staff work together
entire production and operation process chain and lifecycle. to advance occupational health and safety management
efforts.Board of
Directors ● T he highest leading organ of the Company's work safety
Capchem Chemicals Management Training
●
Executive Organization of strategic planning for work safety●
Committee Responsible for guiding and making decisions on the Company's work safety and occupational health work
EHS ● D eploy and direct work safety
Management ● O rganize and implement strategic planning for work safety and solving major work
Committee safety problems
EHS
Centre ● A ssist the EHS Management Committee to manage the work safety of the bases
●
Subsidiaries Be responsible for the safety production management of the Company in compliance with laws regulations and headquarters' requirements
Capchem's Five-Tier Occupational Health and Safety Management Structure
50 51About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
In strict accordance with the relevant laws and regulations EHS Operation Control Procedure the Legal and Regulatory
such as the Work Safety Law of the People's Republic of China Compliance Assessment Management Procedure the Hazard Impact Risk and Opportunity Management
Occupational Disease Prevention and Control Law of the Identification Risk Assessment and Control Procedure the
People's Republic of China and the requirements of the ISO Accident Incident Investigation Management Procedures and Safety Risk Management System
45001 System Standards and in conjunction with the actual the Occupational Disease Protective Equipment Management
development of the Company's production and operation System. The Company implements OHS responsibilities at
Capchem has continued to improve our occupational health each level through a clear and effective internal management Capchem firmly established the concept of risk-based EHS management imported the relevant elements of the chemical
and safety manuals procedures and systems including the mechanism. process safety management (PSM) system and embedded the requirements of production safety standardization safety risk classification and control and safety hazard investigation and management. Using professional tools and methods such
as Hazard and Operability Analysis (HAZOP) and Job Safety Analysis (JSA) Capchem carries out safety risk assessment on
a regular basis systematically identifies the risks and safety hazard involved in materials processes equipment personnel
operations etc. During the Reporting Period we have formulated control or improvement measures for 100% of the identified
System Update 2024 risks and achieved 100% closed-loop rectification of potential hazards.Procedures for Identification of Hazard Based on the root causes of external accidents the safety risk control level has been Risk Content Risk Management Content Risk Control Measures
Risk Assessment and Control updated in order to improve risk control.● R &D Project Introduction Risk Pioneering:
R&D Risks Management ● F our New (New Products New Processes New
In order to identify the root causes of accidents learn lessons and disseminate them across ● R isk Management for Laboratory Equipment New Materials)Introduction Risk
Procedures for Managing the Investigation within the Company the requirements for accident investigation reports were updated in & Pilot Run Management System
of Accident Incidents 2024 to require root cause analyses of accidents in accordance with tools and methods such ● P ilot Production Risk Assessment and Its Control
as the accident tree event tree and 5WHY analysis. Measures
● S trengthen the Systematic Safety Management
of Laboratories Small - Scale Trials & Pilot Runs
Based on the commissioning and operation of overseas bases as well as the updating of ●
relevant regulations and policies and external accident experiences in order to do a better Process Risks
New Process Introduction Risk Process:
Management
EHS Accident (Incident) Classification and ● P rocess Safety and Reliability Verification
Management System job of front-end preventive management and implement the main responsibility of EHS of
● P rocess Safety Risk Assessment
● R egular HAZOP Analysis
each base the grading standards of EHS accidents (incidents) have been revised to unify the ● C hange Risk Management
grading standards of the Company's internal accidents and incidents. ● C hange Management
● K ey Equipment and Instrument Risk Produce:
Capchem Occupational Health and Safety Production System Documents (Part) Management ● N ormalized Risk Identification Hazard Source
Production Risks ● U tility Engineering Risk Management Control and Improvement
Strategy ● O perational Risk Management ● A pplication of Safety Informatization
● S pecial/Special - Type Operation ● I mplement Chemical Process Safety
Risk Management Management (PSM)
Capchem upholds the people-oriented development concept builds the occupational health and safety management ● Startup and Shutdown Risk
policy of Compliance with laws and regulations life above all; Safety first with prevention as the focus; People-oriented Management
striving for green excellence; Scientific management for continuous improvement and builds comprehensive and multi-level
occupational health and safety management system that is collectivize and integrated to closely control all links in the chain of ● S ample Transportation Risk Packing:
production storage use operation transport and waste treatment involved in the production and operation of the Company Packing Storage and Transportation Risks Managementand to effectively guarantee the safety and order of business operations. ● H azardous Goods Packaging and Transportation
● P roduct Transportation Risk Safety Management System
Management ● R egular and Irregular Inspections and Reviews
●
Safety Management Occupational Health Product Packaging Risk Management
Product Risks ● C ustomer Use Risk Management Pay:
● S ystematized Operation ● G reen Product Design
● MSDS Compilation
● S afety Risk Control ● S tandardized Engineering Design
● Product Safety Use Training and Guidance
● S afety Information System ● S ystematized Identification and Management of
Construction Occupational Hazards
Safety Culture Construction High-Specification Provision of Personal Protective Workplace Risks ● ● ● Site Selection Risk Management Place:
Equipment (PPE) ● Occupational Health Management ● S cientific General Layout
● W orkplace Environment Control
Core Consideration Dimension of Capchem Occupational Health and Safety Management
Capchem 6P Safety Risk Control Principles
52 53About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Safety Informatization
Capchem Introduces PSM System for Risk Control Capchem emphasizes the empowerment of technology construction of cybersafety training spaces. By leveraging
In 2024 Capchem took Huizhou base as a pilot site to introduce the three core elements of Process safety information to solidify the construction of safety information systems. information technology Capchem improves the timeliness
management Operation safety management and Change management and at the same time carried out self-check In 2024 the Company invested nearly 5 million yuan accuracy and efficiency of risk monitoring and early
and assessment of these three core elements in other bases. Drawing from the outcomes Capchem refined existing to enhance projects across our bases including risk warning risk classification control and hidden danger
change management processes to ensure more targeted risk identification and effective control measures during monitoring and early warning management of major rectification and employee safety awareness and skills
change implementations. hazard sources intelligent inspections risk classification at production bases safeguarding the Company's safe control and hidden danger rectification as well as the production.Process Safety Management System
Huizhou Capchem Industrial Internet + Hazardous Chemical Safety Production Information System
In October 2024 on the basis of the original Industrial Internet + Hazardous Chemical Safety Production informatization
system Huizhou Capchem increased the functions of setting management background algorithms and applications for
personnel positioning and further improved the function setting of personnel positioning from the actual application
scenarios and enhanced the level of intelligence of personnel positioning and improved the efficiency of personnel
management. It also improved the efficiency of personnel management and strengthened the informatization and
refinement of all-round safety risk management of major hazardous sources major risk source points and personnel.Personnel Positioning
Commit to Process Understand Learn from Aggregation Setting Personnel Positioning Personnel Positioning
Safety Hazards and Risks Manage Risk Experience Management Aggregation Backend Algorithm Aggregation Application
PSM System Architecture ● C onfigure and manage aggre- ● T he backend program analyzes the ● C reate and summarize records
gation parameters based on real-time locations of personnel and for display and implement a key-
real-time conditions including calculates whether aggregations oc- word quick search function.Capchem has continued to promote the construction of the BCM system comprehensively revised and upgraded the original settings for aggregation radius cur and their levels.safety emergency plan and improved and formulated the plans for emergency scenarios such as power outages DCS fault threshold aggregation duration ● H andle aggregation alarms and
feedback and bad weather. threshold and aggregation level ● B ased on the tracking and compres- implement closed-loop manage-
based on the number of people. sion of aggregation cores determine ment.Capchem has established a perfect safety performance monitoring and assessment system and formulated the EHS Reward if there are changes in the personnel
Punishment and Performance Assessment Management System. ● D esign monitoring areas and within the aggregation data. ● D isplay aggregation trajectories
silent area rules for the manage- and timestamps in a 3D model.ment of aggregation zones. ● P rovide timely reminders for aggrega-
Project Construction and tion information.Subsidiaries Operation Supervision
● S afety performance specialists at each subsidiary record ● T he Company conducts performance Phase II Construction of Capchem's Industrial Internet + Hazardous Chemical Safety Production Informatization System
the safety performance of their respective subsidiaries and reviews based on a well-established
regularly report upwards. internal safety audit mechanism.● T he EHS management department of each subsidiary organizes ● T he Company promotes the cross-
analyses assessments and gives advice on improvements. supervision and inspection of production
● T he Board of Directors and the Safety Committee of each safety of projects under construction
subsidiary regularly monitor safety performance and make and those already in operation in an
decisions on work improvements. organized and planned manner.Group
● T he Headquarters EHS Centre collects EHS-related job performance data on a monthly basis.● T he EHS Centre at the headquarters conducts EHS assessment of each base through monthly meetings quarterly
site audits semi-annual and annual work inspections and organization and implementation of special EHS
improvement projects.Capchem Safety Performance Monitoring and Assessment System
5455
● Management Review and
Continuous lmprovement
● Auditing
● Measurement and Metrics
● Incident Investigation
● Emergency Management
● Conduct of Operations
● Operational Readiness
● Management of Change
● Training and Performance
Assurance
● Contractor Management
● Asset Integrity and Reliability
● Safe Work Practices
● Operating Procedures
● Hazard ldentification and
Risk Analysis
● Process Knowledge
Management
● Stakeholder Outreach
● Workforce Involvement
● Process Safety Competency
● Compliance with Standards
● Process Safety CultureAbout the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Protection Against Occupational Diseases
Capchem has formulated and complied with the whole process At the end of the Reporting Period Capchem has completed The Company has established regulations such as the Capchem places great emphasis on organizing protective
control system including the Occupational Disease Hazard occupational hazard factor testing for all existing production and Occupational Disease Protection Articles Management Sys- knowledge training regularly maintaining and upgrading
Monitoring and Evaluation Management System the Workers' operation projects with 100% of the test results being qualified. tem the Occupational Disease Hazard Emergency Rescue process equipment providing and supervising the correct
Occupational Health Monitoring and File Management System Additionally 100% of newly hired current and departing em- and Management System and the Emergency Plan for use of protective equipment by employees and improving
and the Occupational Disease Protection Facility Maintenance ployees in positions exposed to occupational hazard factors have Employee Occupational Health Disposal to strengthen emergency monitoring and management mechanisms.and Inspection System so as to ensure that the risks and undergone occupational health examinations. For those with dynamic monitoring and early warning management of These measures are aimed at minimizing occupational
potential hazards of occupational diseases are effectively occupational contraindications 100% have been transferred to occupational hazards. health risks and providing employees with a safe and
monitored and scientifically evaluated. other positions. Furthermore there have been no suspected or healthy working environment.confirmed cases of occupational diseases.Safety Culture Construction
Establishment of Work Safety Responsibility System
● B y consulting regulations such as the Classification Catalogue of Occupational Hazard Factors and Capchem continuously refines our work safety responsibility awareness through educational training and management
Occupational Exposure Limits for Hazardous Agents in the Workplace harmful factors generated system strengthening the implementation of responsibilities assessments establishing and improving a comprehensive Identification during production and operation are identified using methods such as table lookup empirical at all levels and effectively reducing the probability of work work safety responsibility system where everyone has a
judgment and analogy. safety accidents. In accordance with relevant work safety responsibility each performs their own duties and each bears
laws regulations and standards the Company clarifies the their own responsibilities extending from management to
work safety responsibilities of relevant personnel based on frontline employees.the nature characteristics and job content of each link and
position. Additionally we regularly reinforce responsibility
● W hen developing new products and introducing new materials low-toxicity or non-toxic substances
are selected.●
● A utomatic alarm devices and emergency ventilation facilities such as gas monitoring alarms and Signing of EHS From the principal leaders of each company to frontline employees work safety
leakage interlock exhaust systems are installed in areas involving toxic or highly toxic substances. Responsibility responsibility agreements are signed at every level clearly defining the safety targets and
Additionally shower and eyewash stations first-aid materials and other necessary equipment are Letter responsibilities for each position.provided.● W orkplaces with occupational hazard factors undergo comprehensive periodic testing and the results
are publicly disclosed on a regular basis. Strengthening
●
Education and Capchem formulates and implements comprehensive work safety education and training
Training plans for all employees effectively implementing the work safety responsibility system.Management
● T he EHS Center organizes quarterly cross-checks to investigate and rectify potential occupational
health hazards across all units.● A ll newly hired employees who will be exposed to occupational hazard factors must undergo pre-
employment occupational health examinations and receive three-level safety training. ● C apchem links work safety responsibilities to employee performance establishing and
Strengthening implementing supervision and assessment mechanisms for work safety responsibilities.Management
● R egular occupational health management training is conducted to enhance personnel's professional Assessment ● B ased on the results of employee safety assessments the Company evaluates and assigns
competence. safety performance.● P ersonal protective equipment is issued and various instruments equipment and emergency
materials required for chemical production and disposal are provided.Sharing of
●
Experiences and Best practices and positive experiences from annual work safety efforts are shared and
Practices promoted throughout the entire group.Capchem Occupational Disease Hazards Identification and Management Initiatives
Capchem's Initiatives to Implement the Work Safety Responsibility System
56 57About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Safety Training and Cultural Promotion
Capchem has established a three-tier safety education Safety Day events and Woodpecker Safety Specials safety Capchem Occupational Health and Safety Training
system comprising factory-level workshop-level and team- education and promotion are implemented progressively
level. Targeted safety training is conducted for all employees. at each level. These efforts aim to enhance employees' In 2024 Capchem held the theme training of the Occupational Disease Prevention and Control Law Awareness Week
Through initiatives such as having principal leaders deliver safety awareness risk identification abilities and response inviting experts in occupational disease prevention and control to give lectures interpreting the core points of the
safety lectures organizing Safety Month activities 119 Fire capabilities jointly fostering Capchem's safety culture. Occupational Disease Prevention and Control Law in depth and explaining the requirements of occupational health
management norms in detail which covered all the employees who are exposed to occupational hazards within the
Company and a total of 3562 employees participated in the training. In addition the Company launched the theme
training of A Safety Lesson by the Principal in Charge for all employees which covered the basic knowledge of safety
● E mphasize the importance and necessity of work safety for the Company's long-term laws and regulations the Company's safety management requirements and accident warning education.Factory- development.Level ● P rovide an overview of the Company's work safety situation including production characteristics
factory equipment distribution work safety targets and major tasks for the year.Workshop- ● O rganize the study of work safety system documents safety operation regulations and
Level emergency response procedures relevant to different job levels and positions.Team- ● B ased on the specific circumstances of each job role we further enhance job responsibilities and
Level arrange for seasoned veteran employees to provide demonstrations of safe operational practices.Capchem's Three-Tier Safety Education System
Capchem continuously monitors changes in policies and regulations During the Reporting Period
refining the themes and content of our safety and health education
programs. The Company explores diverse methods for promoting and Capchem Safety Occupational Health and Safety Training Series
implementing these programs constantly enriching our safety culture. The safety training coverage rate for production
During the Reporting Period Capchem conducted a total of 565 employees in Capchem
safety training sessions achieving 100% coverage among production
employees. The total training duration amounted to 118474 hours
and 544 emergency drills were held. 100%
Capchem Safety Production Activity Month
During the Work Safety Month Capchem organized a Six Ones special campaign which included: having the principal
responsible person deliver a safety lecture conducting a special campaign to address specific work operations
organizing a process safety diagnosis carrying out a comprehensive safety hazard inspection implementing
equipment management improvements and conducting a comprehensive safety emergency drill. The headquarters
research institute production bases and ongoing projects also launched various unique activities. For example the
Shenzhen headquarters held fun safety activities safety cartoon and essay contests. Sanming Hexafluo Nantong
Capchem and Tianjin Capchem organized skills competitions. Jingmen Capchem provided accident consequence
simulation activities. These activities enabled employees to apply their safety knowledge in practice combining
theoretical learning with hands-on experience effectively enhancing their safety awareness and deeply embedding
the concept of safety into every aspect of the Company's operations.Reporting System for Safety Hazard
In 2024 Capchem implemented a dual prevention reported hazard is addressed promptly and effectively
mechanism and refined the incentive system for reporting building a solid defense for the Company's safe production
safety hazards rewarding employees who actively report and operations. At the end of Reporting Period a total
potential risks to foster a corporate safety culture where of 20180 safety hazards have been reported with a
everyone is a safety officer . The Company strictly enforces rectification rate of 100%.a closed-loop rectification process to ensure that every
58 59About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Indicators and Targets Customer Service
Capchem remains steadfast in advancing our occupational health and safety management efforts employing multi-dimensional
and comprehensive measures and strategies to ensure the successful achievement of this year's occupational health and safety
targets. These endeavors lay a solid foundation for the Company's stable operations and the well-being of our employees.Capchem adheres to the customer-centric service philosophy continuously enhancing our customer service management system
by leveraging digital and intelligent systems. We standardize service processes innovate service models deeply explore customer
needs and efficiently respond to customer requests. By actively increasing the frequency of customer communication Capchem
comprehensively upgrades customer experience shapes an exceptional enterprise service brand image and achieves mutual
Short- and Medium-Term Goals Long-Term Goals benefit and long-term development with our customers.The Total Recordable Incident Rate 100% physical examination rate for Zero accidents zero injuries
(TRIR) decreasing annually employees exposed to hazards
Zero occupational diseases 100% compliance rate for workplace Customer Service Management System
hazard factor detection in relevant
Zero fire and explosion incidents positions
Capchem is committed to building a perfect customer service management system. The Company has formulated
Zero government penalties or cita- Zero hazardous chemical leaks management regulations and processes such as the Management of Customer Grading and Classification Management of
tions Customer Visits the Management of Customer Technical Solutions the Management of Customer Special Needs the Customer
100% job transfer for employees Satisfaction Survey and Follow-up the Staff Training Internal Evaluation and Continuous Improvement Mechanism etc. to
with occupational contraindications realize standardized operation of customer service.Based on business layout Capchem builds a global marketing network and service system. With the innovative products the
advantage of nearby supply international quality professional temperature-controlled logistics and warehousing of hazardous
Capchem's Occupational Health and Safety Targets chemicals and on-site services the Company creates an all-round and three-dimensional product life cycle service for our
customers. Capchem accurately connects with and efficiently meets the diversified needs of customers and strongly enhances
the market competitiveness of the Company's products and services.At the end of Reporting Period a total of 8 operating pro- for Work Safety Standardization enterprise assessment
duction bases have obtained ISO 45001 certification with and certification. At the end of Reporting Period 5 sites
a coverage rate of 72.7%. Additionally in accordance with have passed the second-level Work Safety Standardization
local regulatory requirements and their respective industry assessment and certification while 4 sites have passed the Customer Service
characteristics the production bases have actively applied third-level assessment and certification. Capability Enhancement Business Opportunity
Sales target Development Customer visit
Digital Enablement and Competitors
Supply Input Contract
Customer Needs Perception Import Input
At the end of Reporting Period: Collect
Downstream Input
Capchem is dedicated to refining our customer- Customers Quotation
Information
● N o occurrence of general or more severe work safety accidents centr ic 36 0 - degre e management s ys tem
Occupational Health and Collect Input
● deeply expanding the application scenarios of
Safety Targets No suspected or confirmed cases of occupational diseases
No work-related fatalities intelligent digital systems in customer service ● to achieve precise perception of customer Market Information Collect Interface Sales order
needs. The Company has established a series
● O btained ISO 45001 certification: 8 operating production bases have obtained ISO of information platforms including CRM SRM Customer Relation-
45001 certification with a coverage rate of 72.7% ship Management
System Certification LIMS DCS MES PLC and SAP enabling data
System system Interface
Obtained second-level Work Safety Standardization assessment and certification: 5 integration and information sharing between Customer ● Sales out hierarchy receipt
● O btained third-level Work Safety Standardization assessment and certification: 4 CRM ERP and OA systems. This has created a System
unified management platform that integrates Interface
Safety Investments ● C umulative investment amount: RMB 55.45 million archives business opportunities sales and Customer Invoicing Portal Portal and collec-
other processes. In 2024 Capchem is actively profile tion
Portal Portal
● N umber of safety training sessions: 565 advancing the upgrade assessment of our CRM system and planning technological upgrading Customer Customer
Cultural Promotion and ● C overage rate among production employees: 100% registration feedbackand renovation schemes based on business Demand Technical
Implementation ● T otal training hours: 118474 hours development needs laying the foundation for planning Services
● N umber of work safety training and emergency drills: 544 providing higher-quality more efficient and Capchem Digital Management Platform
more precise customer service.
60 61About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Customer Grading and Differentiated Services
Quality perception Customer complaint
Capchem employs a scientific and reasonable segmentation model to classify and manage our customers accurately providing
customized strategies and differentiated services. During the customer needs identification stage the Company innovates
our management model and optimizes the business opportunity management process utilizing a project development
mechanism and fostering a team collaboration model to enhance the conversion rate of business opportunities. In the product
delivery stage Capchem aims for operational excellence by optimizing delivery processes improving operational efficiency
ensuring the commitment and execution of supply chain orders and providing high-quality technical support. These efforts Value perception Satisfaction
optimize customer experience and enhance satisfaction.Expected quality Loyalty
Customer Service Model Innovation
In 2024 Capchem made active exploration and innovation in customer service mode. The Company has set up a Brand
sales team with OO (Opportunity Owner) as the core pulling through sales technology R&D quality logistics and
other links to serve customers in the whole process and in all aspects. In addition the Company introduced product
managers to deeply explore and translate customers' technical needs offering more precise technical solutions. Capchem Customer Satisfaction Survey Model
In order to continuously optimize the quality of products and customer services and enhance customer satisfaction Capchem
has formulated short-term medium-term and long-term enhancement plans and set up corresponding indicators and target
Opportunity Owner systems. The Company is committed to providing customers with a high-quality full-process service experience and creating
an excellent brand image of Capchem through the improvement of the service system optimization of the whole process
mechanism digital empowerment and other enhancement initiatives.Target Period Promotion Plan Goals
OO
● A dopt a customer-centric approach setting internal customer satisfaction metrics ● A chieve a satisfaction score of ≥ 90
from the perspective of customer concerns to drive the backend supply chain for top customers.production bases and functional centers to meet customer needs.● Ensure process compliance of ≥ 80%.Short-term Goals ● E stablish product managers to evaluate customer needs and improve products
(2025) offering personalized customized products and solutions to customers.
Sales Owner SO PO Product Owner ● Develop and implement end-to-end management strategies for clients.● Continuously optimize processes and drive marketing transformations
centered around customers to enhance internal operational efficiency.● Comprehensively optimize the entire pre-sales sales and after-sales ● Ensure process compliance of ≥95%.process and management mechanism for customers enhancing full-cycle
Capchem' OO-focused customer service model ● management of customer service and satisfaction. Maintain a customer satisfaction score
of ≥ 90.Medium-term Goals ● R ebuild the Customer Relationship Management (CRM) system to support
(2026-2027) efficient business operations and improve customer service.
● Expand the marketing network by establishing subsidiaries in South Korea
and Japan adding key customer representatives at various bases and
client sites.● E stablish additional sample bases/production lines (in Suzhou and ● Achieve a timely sample delivery rate
Customer Experience and Satisfaction Enhancement Huizhou) to further improve the delivery efficiency of samples and small- of 100%.batch orders.Long-term Goals ● Ensure a perfect order fulfillment rate
Through continuous exploration and improvement Capchem has formed a set of customer satisfaction evaluation system (2028-2030) ● Develop marketing networks in Poland and the United States to provide of ≥90% based on standard delivery
which is customer-centred and highly operable. The Company has formulated Management of Customer Satisfaction and sales and technical services to customers meeting the needs of renewable times (globally).Engagement to guide the customer satisfaction survey and management and based on the analysis results to understand the energy development in Europe and the United States as well as the overseas
current and future needs and expectations of customers review the inadequacy of the Company's current management and expansion of domestic enterprises.make timely adjustments and to continuously improve the satisfaction and fit of the Company's customers.Capchem Customer Service Enhancement Programme
6263
Result variable
Premise variableAbout the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
In 2024 the Company innovatively adopted the online questionnaire mode to collect customers' needs and expectations. In
addition to the questionnaires the Company also conducted statistical analyses on operating performance quality delivery Customer Communication and After-sales Service
and customer evaluation for the sampled customers to measure the quality of the Company's products and services analysed
low-scoring items and formulated improvement measures. At the end of the Reporting Period the Company's overall customer
satisfaction score remained above 90 for many consecutive years.Customer Privacy Protection
Capchem strictly follows the laws and regulations of the
LGES Best Partner Award and Samsung SDI Best Partner Award for 2024 countries and regions in which it operates such as the
Personal Information Protection Law of the People's Republic
of China the Personal Information Protection Management
With excellent product quality continuous technological System and the ISO 27001 Information Security System etc.innovation and important position in the supply chain and has formulated a series of internal systems including the
Capchem has gained high affirmation from LGES Trade Secrets Management System to ensure the effective
Samsung SDI and other customers and won LGES Best protection of customers' privacy in all aspects of business
Partner Award and Samsung SDI Best Partner Award in interactions.
2024 which were the only award-winning electrolyte
suppliers in the raw material supply chain of LGES and Capchem actively promotes the upgrading of SAP system author-
Samsung SDI respectively. ity management refining user authority based on system func-
tions and business modules and flexibly deploys system roles
according to demand so as to enhance the security of customer
privacy system. As our overseas business expands the Com-
pany has signed confidentiality agreements with international
clients to safeguard mutual data security. Additionally Cap-
chem Poland has obtained TISAX certification reinforcing the
client data protection system in accordance with international
Capchem won the LGES Best Partner Award and Samsung SDI Best standards and establishing a robust defense for client data
Partner Award protection in our global business footprint.With the Capchem Management College the Company offers During the Reporting Period
courses on trade secret protection for all employees and
integrates the awareness of privacy protection into employees'
onboarding education. In daily work the Company strictly there were
implements data desensitization and approval process
Team Professional Capacity Building online and offline confidentiality authority management the Company's confidentiality office regularly organizes and no incidents
carries out internal information security implementation of infringement or leakage of
Capchem focuses on the improvement of customer service quality and according to the type of personnel serving customers audits; the brand commissioner regularly carries out publicity customers' privacy in Capchem
it has set up a competence certification system for marketing technical service and customer service sequence and clarified data inspection to minimize the risk of customer privacy
the qualification standard and competence model framework for each position. At the same time the Company builds online leakage.course system with the Capchem Management College combines with offline expert training rotating practice and teachers During the Reporting Period there were no incidents of
with apprentices etc. to build a differentiated ability to improve the system. infringement or leakage of customers' privacy in Capchem.Customer Complaint Management
Customer Service Empowerment Programme
Capchem has established a perfect after-sales service system and customer complaint management mechanism. The
In 2024 Capchem tailored a comprehensive training programme for the sales team with Opportunity Owner as the Company formulates the management system of Customer Complaint Handling and starts Customer Complaint Handling
core. Through systematic training and practice account managers and product managers understand customer Procedure immediately after receiving complaints and efficiently responds to and solves customers' needs through the closed-
needs more effectively and provide more precise and personalized solutions. During the Reporting Period Capchem loop management process. Capchem promises to respond to customer problems within 0.5 days and take relevant measures
conducted a total of 16 product and marketing skills training sessions by combining online and offline methods. within 24 hours.Based on the actual business Capchem focuses on the main business divisions and builds a diversified management target
system including larger and above customer complaints general and below customer complaint rate and total customer
complaint loss amount. The Company dynamically optimizes the closed-loop management mechanism of customer
At the end of Reporting Period Capchem had conducted 16 customer service-related trainings with a total of 1379 hours of complaints to ensure timely response and efficient resolution of customer demands and makes every effort to ensure the
employee training. implementation of customer management objectives.
64 65About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
The "Four Green" Concept
Sanming Hexafluo built the first thousand-ton class perfluoroisobutyronitrile
production line in China
Huizhou Capchem and Sanming Hexafluo were awarded the Green
Factory
Combating Climate Change
Published the dual carbon target of "Operational carbon peaking by 2029
Operational carbon neutrality by 2049" and the carbon neutral action
plan
Conducted climate risk and opportunity identification and assessment
Eight products gained ISO 14067 certificate
Optimizing the Energy Structure
Implemented 29 carbon reduction projects throughout the year reducing
6959 tons of carbon
Realized 100% green power usage by Suzhou Novolyte and gradually
increased the proportion of green power usage by Nantong Capchem
Jingmen Capchem Huizhou Capchem and Sanming Hexafluo
Environmental Compliance Management
03 90.9% of stable operating bases obtained the ISO 14001 certificate Investments in environmental protection amounted to RMB 34.05 millionEmissions and Waste
Achieved hazardous waste and wastewater reduction targets
Recycled 69.90 tons of general waste
Resource and Ecological Protection
One-earth Water reuse reached 363862 tons. Water reuse reached 38%
Capchem insists on integrating the concept of green environmental
protection into all aspects of production and operation. The Company actively
participates in the global climate change action seizes the opportunity
focuses on the development concept of "Four Green" vigorously promotes
energy saving and emission reduction continuously optimizes the waste
waterwaste gassolid waste and resource management practices green and
low-carbon operation and effectively fulfills its environmental protection
responsibility.
66 绝密文件 未经许可 不得复制扩散About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
The "Four Green" Concept Mainly includes lithium-ion battery chemicals (including lithium-ion battery electrolyte
additives new lithium salts carbonate solvents) supercapacitor chemicals primary lithium
battery chemicals which are widely used in new energy automobile battery digital battery
and other battery products.Battery
Sustainable development and operation is the eternal proposition of Capchem. In the process of product life cycle chemicals C arbonate is the main material for electrolyte of lithium-ion battery in new energy industry.management Capchem continues to practice the "Four Green" development strategy of "Green Product Green Process Capchem converts the carbon dioxide to carbonate through the Ethylene Oxide to Carbonate
Green Factory Green Industry" drive green development with scientific and technological innovation and promote global Solvents Integrated Process (ECOSIP
TM )". In 2024 Huizhou Capchem's Carbonate Solvent
sustainable transformation. Expansion Project was formally put into operation with an annual output of 100000 tons of
carbonate solvent and 50000 tons of ethylene glycol co-production.M ainly includes fluorinated pharmaceutical and pesticide intermediates fluororubber
vulcanizing agents fluoropolymer modified comonomers fluorinated surfactants fluorinated
gases for power insulation etc. which are widely used in end-consumption fields such as
Organic fluorine pharmaceuticals pesticides automobiles electric power electronics and machinery.chemicals Capchem empowers reliability in the pharmaceutical and healthcare sectors through its high-
quality inhalant anesthetic intermediates.C apchem enables immersion cooling for green data centers with its high performance fluoride
Explore green products through Reduce and eliminate pollution from liquid Boreaf
advanced technology and innovation the source by applying in-depth green
Green Green process Mainly includes aluminium electrolytic capacitor chemicals aluminium foil chemicals
Product Process tantalum capacitor chemicals and functional materials etc. which are widely used in the
fields of capacitor aluminum foil processing aluminum electrolytic capacitors and solid-state
Capacitor capacitors.chemicals C apchem has made breakthroughs in high pressure resistance and long service life Capchem
strives to properly solve the main issues related to high voltage long service life and high
temperature resistance of capacitors in products such as new energy vehicles and smart
Enable green chemistry to build a Green Green Adhere to the exploration of green homes.green future for more industries and Industry Factory factory construction and conduct
promote the industry chain in green manufacturing with strict standards
transformation and requirements Mainly includes high-purity chemicals and functional chemicals which are widely used in
display panels solar photovoltaic integrated circuits and other fields.Semiconductor
chemicals W ith more than 20 years of technical accumulation and innovative processes in fine electronic
chemicals Capchem helps its customers realizing green and sustainable development goals by
improving its product quality and supply stability.The "Four Green" development concept
Sanming Hexafluo has built the first thousand-ton perfluoroisobutyronitrile production line in
China.Sanming Hexafluo has built the first 1000-ton Perfluoroisobutyronitrile (PFIBN) production line in China and put it
into trial production. As a new generation of low GWP (Global Warming Potential) environmentally friendly power
Green Product insulating gas PFIC can reduce the greenhouse effect by more than 98% compared with sulfur hexafluoride and
provide a greener solution for high-voltage power transmission and substation systems such as gas-insulated
switchgear.Capchem puts "efficient use of resources energy conservation environmental protection and healthy and safe production"
through the whole life cycle management of products and promotes green transformation and low-carbon development with
high-quality green products.In order to further enhance the green element of its products the Company strives to realize the reduction resourcefulness and
Our main products include battery chemicals organic fluorine chemicals capacitor chemicals and semiconductor chemicals harmlessness of raw materials through green product design and optimization of manufacturing processes. In terms of raw material
which are widely used in new energy vehicles consumer electronics urban rail transportation biomedicine digital supply the Company requires its raw material suppliers to use environmentally friendly recyclable and reusable packaging
infrastructure photovoltaic energy storage and industrial manufacturing. materials as much as possible and actively assists its suppliers to carry out energy-saving and carbon-reducing actions.
68 69About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Green Process At the same time the Company further explores the con- As of the end of the Reporting Periodstruction of "zero-carbon factory" taking the new project of
Nantong Capchem as a pilot and realizes energy saving and
Capchem fully integrates the concept of environmental protection in new product development and production process emission reduction through material and equipment selec- Huizhou Capchem and Sanming Hexafluo were awarded the
and reduces the emission of carbon dioxide and pollutants by advanced green process so as to realize the unity of economic tion solar photovoltaic and other measures in accordance
benefits and environmental benefits. with the group standard of Zero-Carbon Factory Evaluation Green Factory
Specification issued by China Energy Conservation Associa-
Selection of non-toxic low-toxic Selection of high- tion. and Capchem Science and Technology Building was
and environmentally friendly performance low-energy- awarded the
supplementary raw materials such as consumption equipment As of the end of the Reporting Period Huizhou Capchem
water and carbonate solvents during production process Recycling of solvents and Sanming Hexafluo were awarded the Green Factory and two-star rating for the Green
Supplementary raw materials Equipment Capchem Science and Technology Building was awarded the mother liquids two-star rating for the Green Building Evaluation Label . Building Evaluation Label
Process Route Green Industry
High atom economy
Green and
Safe and reliable Input Process Output sustainable With science and technology innovation as the driving force Capchem continuously explores the potential of green process
Low energy development innovation and provides safer more efficient and greener solutions for the upgrading of the green industrial chain through
consumption product technology innovation.Environmentally
friendly and low Capchem has participated in the compilation of Carbon Management Guidel for Battery Manufacturing Companies (T/CIET
emission 265-2023) General principles for green enterprise evaluation" (T/CIET 237-2023) Quantitative methods for carbon footprint of
Quality Assurance Catalyst Adopting airtight measures Recycling of Resource products - Electric vehicle lithium ion batteries and many other standards.Selection of efficient to prevent the escape of cooling water utilization of
catalysts waste gas and liquid energy other wastes
Industry for application
Capchem Green Process Measures (Encouraged) Product advantage
Green energy Capchem produces battery chemicals capacitor chemicals and organic fluorine chemicals
Green Factory used in solar inverters.The perfluoropolyether lubricants and vacuum pump oil produced by Capchem are widely
Capchem actively practices the dual-carbon strategy and continues to promote the construction of green factories based on used in the fields of chemical industry electronics electrical appliances and machinery. In
the principles of " Intensification of land use harmlessness of raw materials cleanliness of production resourcefulness of addition the vulcanized fluorine rubber products have excellent properties such as resistance
waste and low-carbonization of energy" to improve the Company's green manufacturing level. During the Reporting Period to compression and deformation chemical corrosion and thermal stability.the Company identified 29 technical reform projects with a total investment of more than RMB 5 million reduced carbon
emissions by a total of 6959 tons achieving the goal of reducing carbon emission intensity by 5%. Sanming Hexafluo continues to promote environmentally friendly power insulation containing fluorine gas and other green products (refer to the "Green Product" section for more details).Intensification of land use Cleanliness of production H uizhou Capchem has completed the ionic liquid catalyzed carbon dioxide synthesis
Optimize the transportation mode of incoming materials and carbonate industrial plant realizing the green comprehensive utilization of greenhouse gas I n new construction reconstruction or expansion New materials
projects we rationalize the layout of the plant reduce the carbon emission of transportation
carbon dioxide.optimize the process improve the ratio of land Optimize tub washing process and reduce raw material con- The solid-state battery materials and binder which are subject to applied research and
input to output the allocation of land and the ef- sumption market operation by Shenzhen Xinyuanbang have entered the stage of sample delivery and
ficiency of land use in accordance with national Optimize production mixing and refining time to save energy cooperative testing for other categories of solid electrolytes in addition to the solid electrolyte
laws and regulations and the regulatory policies consumption that has realized stable mass production.of the project location and continuously im- C ontinuously carry out high consumption equipment update
prove the degree of intensification of land use and automation upgrade and optimize production process
O ne of the additives in the electrolyte of lithium battery produced by Capchem FEC additive
can help improving the electrical performance of lithium battery which is useful in promoting
Resourcefulness of waste electrolyte stability flame retardancy and overcharge protection
Harmlessness of raw materials
Upgrade sewage treatment station to increase reclaimed water reuse Capchem's dispersion agents for solid capacitors are water-based eco-friendly polymers
Guided by the concept of green development Optimize organic waste gas devices to reduce volatile organic which can help capacitors improve performance and reduce energy consumption and is used
we continuously minimize the use of toxic and emissions in new energy vehicles industrial power supplies notebook computers TVs and other fields.hazardous substances and reduce the impact of Conduct recycling of steam condensate to reduce resource waste C apchem's supercapacitor chemicals are mainly applied to supercapacitors. Supercapacitors
raw materials on products and the environment R ecycle packaging materials to reduce resource consumption Information industry are characterized by high discharge power wide applicable temperature range and long cycle
by continuously promoting the green substitu- life and are widely used in smart meters wind power generation hybrid vehicles high-speed
tion and reduction of toxic and hazardous raw Low-carbonization of energy railways and other fields.materials (refer to Chemistry safety section for
more details) Continue to increase the proportion of clean energy use F luoropolyimide (FPI) and its core monomers produced by Capchem are widely used in the fields
C onstruct solar street lamps of digital infrastructure new type display separation membrane and liquid crystal materials.
70 71About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Combating Climate Change Strategy
Capchem has been deeply aware of the challenges of climate-related risks and opportunities for its own operations and
based on the Company's development strategy it has made great efforts to promote internally-driven green development
coordinated the implementation of measures to enhance management capacity optimize energy structure strengthen
supplier carbon management and push forward low-carbon rating and certification. The Company insisted on integrating the
On the path towards carbon neutrality Capchem unswervingly pushes forward the green and low-carbon transformation of its green and low-carbon concepts into all aspects of its production and operations to make a greater contribution to achieving
own operations continuously strengthens its ability to cope with climate risks and seizes climate-related opportunities and the "dual-carbon" goal and promoting climate governance.is committed to becoming a practitioner of clean and low-carbon transformation of energy. In accordance with the guidelines
and requirements of the the Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange - Sustainable In 2024 the Company carried out a climate risk and potential opportunity identification exercise assessing how climate risks
Development Report (for Trial Implementation) (Exposure Draft) the Company has conducted a systematic identification and and opportunities affect the value chain and the timeframe of the impacts as well as the current financial impact of climate-
assessment of climate-related risks and opportunities in the following four aspects: governance strategy impact and risk and related risks and opportunities.opportunity management and indicators and targets providing guidance for the Company to carry out further climate actions.Type of risk Risk description
Governance A cute physical risks refer to the generation of weather-related events such as storms floods
droughts or heat waves. The associated extreme weather events may cause business model-
In terms of climate change governance Capchem has driven base" model. The Company has formulated the related impacts such as depreciation of the Company's fixed assets and loss of labor as well
incorporated climate-related impacts risks and opportunities Capchem Energy (Carbon) Management System and as value-chain-related impacts such as causing transportation difficulties and supply chain
into the important considerations of the Company's business the Greenhouse Gas Emission Management System and Physical risk disruptions.strategy established the Energy (Carbon) Management other management systems to comprehensively manage C hronic physical risks arise from long-term changes in climate including changes in precipitation
Committee at the level of the board of directors with the greenhouse gas emissions in the course of production and temperature which may lead to sea level rise reduced water availability loss of biodiversity
president as the director based on a "top-down headquarters- purchasing and office operations. and changes in soil productivity. These chronic risks may have business model-related impacts on
companies such as direct loss of assets and increased operating expenses.Climate transition risks refer to the risks that companies face in transitioning to a low-carbon
President economy including policy legal technological market and reputational risks. These transition
Transition risk risks may result in business model-related impacts such as higher operating costs and
Energy (Carbon) reputational damage to the Company as well as value chain-related impacts such as reduced
Management Committee supply chain stability.EHS Center
Subsidiaries and Functional Centers
The current financial impacts of climate-related
risks and opportunities on the Company include
higher operating costs due to higher environmental
Capchem Energy (Carbon) Management Committee governance costs lower-emission technology
transition expense and clean energy investment
spending etc. and in the future the Company will
further assess the expected financial impacts of
climate change on the Company.In selecting members of the Energy (Carbon) Management Committee the Company emphasizes the inclusion of personnel Capchem has incorporated climate change response
with professional backgrounds and knowledge related to climate change and energy management to assist the Company in into its strategic planning considerations and has
better promoting the implementation of work related to combating climate change. In addition the Company conducts climate formulated a carbon neutral action plan and carbon
change related training for the Board of Directors the Energy (Carbon) Management Committee and the EHS Center every neutral commitments (refer to the Combating Climate
year to ensure that they have sufficient professional knowledge and ability and to continuously improve their professional Change - Indicators and Targets" section for more
knowledge and in combating climate change. details).In order to strengthen the communication and management of climate change issues the Company comprehensively grasps the
greenhouse gas emissions and energy management work of each base by building an energy and carbon management system and
conducting EHS monthly meeting monthly assessment quarterly work bulletin etc. The EHS center at the headquarters as the
office of the Energy (Carbon) Management Committee provides guidance on energy saving and carbon reduction work of each base
so as to promote the implementation of work related to the response to climate change at each base.
72 73About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Focus on technological innovation
Build an energy and carbon continuously implement equipment Building an energy Huizhou Capchem has built an energy management platform to monitor energy use in real time
management system to enhance Data Measures upgrades and process optimization management and in a refined way providing data support for dynamic monitoring and improvement of energy
data inspection efficiency collection improvement for low-carbon production platform saving work.Energy and carbon Capchem has built a group-based energy and carbon management system which links the data Strengthen lean production management collection of suppliers and improves the level of carbon inventory work. By connecting with SAP management and fully system and other systems the platform realizes automatic acquisition of data and automatic inventory Optimize management models promote pollution reduction and is capable of delivering standardized inventory reports and centralized analysis and display.and methods to promote Management Low-carbon and carbon emission
systematic management optimization production reduction Promoting energy- Capchem's production bases have carried out a series of energy-saving technological reform measures saving technologies to reduce carbon emissions in the production process (refer to Green Process section for more details).Increasing use of The Company actively carries out green power procurement to increase the use of clean energy and
renewable energy effectively reduce greenhouse gas emissions from purchased electricity (refer to Optimization of Energy Structure section for more details).Actively fulfill social Leverage advanced processes Advancing Focusing on promoting green clean and sustainable development the Company actively cooperates
responsibility and increase the Energy Capture such as ECOSIP solvents to value chain with upstream and downstream industrial partners conducts research and counseling on the current
proportion of clean energy use transition application provide low-carbon products decarbonization status of carbon management of suppliers gathers various resources to meet customer needs and promotes collaborative low-carbon development of the industry with "whole-chain carbon reduction".Resource Carbon capture and Sanming Hexafluo cooperated with relevant units to build 158 acres of carbon sequestration forest.coordination utilization Huizhou Capchem absorbed and utilized 60000 ton of carbon dioxide by ECOSIP throughout the year.Capchem Carbon Reduction Measures
Link upstream suppliers for improvement and downstream
customers' needs enabling full-chain resource collaboration In order to improve the Company's adaptability to climate-related risks and opportunities and to grasp the favorable potential
Capchem's Carbon Neutrality Action Plan development opportunities the Company actively combated climate change and cooperated with its downstream customers to provide advanced low-carbon products in accordance with their demand for green and low-carbon products. The Company
continues to increase the sales of its products and enhance the competitiveness of customers' products in the marketplace by
The Company continuously promotes carbon management tracks and manages carbon emissions from its own production and conducting self-research or collaborative research and development and innovation as well as providing advanced low-carbon
operations and value chain as well as the entire life cycle of its products and promotes green and low-carbon production and operations products (refer to Innovation-driven drive section for more details).on all fronts through direct or indirect mitigation measures such as optimizing energy and carbon management promoting energy-saving
technological reforms increasing the use of renewable energy and promoting decarbonization of the value chain.Impact Risk and Opportunity Management
The Company identifies climate risks and opportunities with significant potential impacts sorts out their specific types and
Greenhouse Gas Emission Inventory evaluates the timeframe of the impacts taking into account its own business characteristics internal and external development
environments and expert opinions. The Company comprehensively evaluates the impact of the risks and opportunities on the
business model and corporate strategy value chain and financial position identifies and evaluates the degree of impact and
Conduct quarterly greenhouse gas emission inventory for Scope 1 and Scope 2 and assess the implementation likelihood of climate-related risks and opportunities based on its operational continuity.of energy-saving and carbon-reduction plans as well as carbon management at each base. Timely absorb and
transform effective practices and implement focused improvements through internal horizontal coordination. The Company develops response strategies based on identifying climate risks and opportunities with the Energy (Carbon)
Management Committee as the leader regularly tracking the progress of climate-related actions and plans carrying out annual
Conduct annual greenhouse gas inventory and verification for Scope 1 Scope 2 and Scope 3. assessments of greenhouse gas emission reduction targets and continually exploring working mechanisms to optimize the
management of climate-related risks and opportunities.Currently the Company is focusing on opportunities based on providing low-carbon services and products improving resource
utilization developing a circular economy and enhancing its brand image. Firstly by increasing the effective supply of green products
to meet the market demand for green products the Company's performance will be enhanced. Secondly by reducing operating
Product Carbon Footprint Inspection costs through energy saving carbon reduction and emission reduction the Company's competitiveness will be enhanced. Thirdly by
recycling and utilizing the Company will reduce the consumption of resources and carbon emissions thus saving costs. Fourthly by
actively combating climate change the Company will enhance its corporate reputation and attract investors and customers.As of the end of the reporting period 8 CFP 核查声明 编号CN25/00000141
products have obtained ISO 14067 product 下列产品的碳足迹(CFP)报告《碳酸亚乙烯酯（江苏瀚康）碳足迹报告》中记录的 CFP 研究： 碳足迹评价报告 碳足迹评价报告 碳酸亚乙烯酯 核查意见书 核查意见书 制造商
声明书编号:签发日期:第1页，共2页江苏瀚康新材料有限公司carbon footprint certification including 声明书编号: 签发日期: 第 1 页，共 2 页 2024 年 3 月 8 日 淮安市洪泽区经济开发区复兴路160号 UnifiedBe responsible for the day-to-day coordination and management by the EHS Center to ensure the
00002-2024-CFP-RGC 00007-2024-CFP-RGC 2024 年 6 月 24 日
受江苏瀚康新材料有限公司委托，经SGS核查，上述产品的碳足迹的量化和声明符合以下要求：
兹对下列报告主体所递交之2022年产品碳足迹评价报告进行核查
兹对下列报告主体所递交之 2023 年产品碳足迹评价报告进行核查 欧洲议会和理事会2023年7月12日关于电池和废电池、修订2008/98/EC指令和
2019/1020法规、废除2006/66/EC指令的第2023/1542号法规的附件II，以及电动
惠州市宙邦化工有限公司 荆门新宙邦新材料有限公司 汽车电池碳足迹方法(Ares(2024)3131389)的要求。
Huizhou Capchem's electrolyte category management
progress and effectiveness of management; evaluate and resolve major issues by the Energy (Carbon)核查范围
核查范围 1kg碳酸亚乙烯酯的碳足迹为
DNV - 管理服务集团（下称 DNV）经由深圳新宙邦科技股份有限公司的委托，对惠州市宙邦化工有限公司（下DNV - 管理服务集团（下称 DNV）经由深圳新宙邦科技股份有限公司的委托，对荆门新宙邦新材料有限公司 13.58 kg CO2 eq.称“报告主体”）位于广东省惠州市大亚湾经济开发区石化区 C-3(石化大道 333 号)及 C-4 的场址（下称“组 （下称“报告主体”）位于湖北省荆门市高新区掇刀区杨竹西路 305 号的场址（下称“组织边界”）为边界， Management Committee to ensure the accuracy and authority of the resolution.织边界”）为边界，且依所递交关于锂离子电解液产品而提出的 2022 年碳足迹评价报告书（下称“评价报告 且依所递交关于 D73 锂离子电解液产品而提出的 2023 年碳足迹评价报告书（下称“评价报告“） 进行核查。 发布日期：2024年12月11日“)进行核查。Sanming Hexafluo's electrolyte category 核查规范 核查规范 本次核查以下列规范为执行的基础： 本次核查以下列规范为执行的基础： ISO14067:2018 温室气体-产品碳足迹-量化要求和指南 * ISO14067:2018 温室气体-产品碳足迹-量化要求和指南 PCR 2021:03 Basic Chemicals （版本 1.1.3） * PCR 2021:03 Basic Chemicals (版本 1.1.1) 并同其它于核查过程中所提出为使温室气体排放量的识别、计算、监测及报告能趋于?致的各项规范。此外，并同其它于核查过程中所提出为使温室气体排放量的识别、计算、监测及报告能趋于一致的各项规范。 本次核查中也参照了欧盟委员会于 2024 年 4 月 29 日公示的授权法案及附件（Ref. Ares（2024）3131389 - David Xin
29/04/2024）中针对电解液制造过程的相关要求。 Sr. Director - Business Assurance
Regular Establish relevant management systems regularly identify and update laws and regulations and risk Nantong Capchem's specific model 核查意见 通标标准技术服务有限公司 依据核查过程于报告主体的组织边界内所获悉的各项证据，对照如前述的各项规范，DNV 依合理保证等级认定， 核查意见 北京市阜成路 73 号世纪裕惠大厦 16 层 100142 报告主体注记于 2024 年 2 月 4 日所编制评价报告内的各项信息，于核查过程中并未发现有实质性的差异。 t +86 (0)10 58251188 www.sgsgroup.com.cn 依据核查过程于报告主体的组织边界内所获悉的各项证据，对照如前述的各项规范，DNV 依合理保证等级认定， 报告主体注记于 2024 年 6 月 20 日所编制评价报告内的各项信息，于核查过程中并未发现有实质性的差异。
DNV - 管理服务集团 DNV - 管理服务集团 identification opportunities for carbon management and energy management and conduct annual reviews.electrolyte and Jingmen Capchem's 本声明由通标标准技术服务有限公司（"SGS"）根据CFP 核查服务通用条件代表客户发布，可在 http://www.sgs.com/terms_and_conditions.htm 上查阅。宋科 黄振坚 宋科 徐立志 本声明全文可在 SGS网站上查阅。本声明不免除客户遵守适用的任何法规的责任。相反的规定对SGS没有约束力，因此SGS对客户以外的其他方不承担核查组长 任何责任。 管理代表 核查组长 管理代表 如果本声明中没有完整的核查范围、目标、准则和结论，则本声明无效。
声明书签发地点及日期:中国上海2024年3月8日声明书签发地点及日期:中国上海2024年6月24日
第1/2页
DNV - 管理服务集团 上海挪华威认证有限公司 中国上海市长宁区虹桥路 1591 号 9 号楼 A 座 邮编:200336 DNV - 管理服务集团 上海挪华威认证有限公司 中国上海市长宁区虹桥路 1591号 9号楼 A座 邮编:200336
specific model electrolyte. This Verification Opinion is based on the information made available to us and the engagement conditions detailed above. Hence DNV cannot guarantee the This Verification Opinion is based on the information made available to us and the engagement conditions detailed above. Hence DNV cannot guarantee the accuracy or correctness of the information. DNV cannot be held liable by any party relying or acting upon this Verification Opinion. accuracy or correctness of the information. DNV cannot be held liable by any party relying or acting upon this Verification Opinion. 第 期 年 月生效 Maintaining Always sort and record carbon management dynamics customer requirements etc. to grasp market
Focus and customer dynamics and industry trends.Occasional Actively participate in exchanges and sharing with government industry and client organizations to understand
Capchem Carbon Inventory and Product Carbon Footprint Certification Measures exchange the latest developments and concerns in carbon management and identify risks and opportunities.
74 75About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Indicators and Targets Optimizing the Energy Structure
In order to mitigate and adapt to the impacts of climate change Capchem has set up climate-related targets in accordance
with the national "Dual-Carbon" goals. The Company tracks and manages the effectiveness of climate action in conjunction
with the Company's production capacity planning and green power procurement planning etc.Capchem is committed to the use of cleaner energy and efficient energy utilization to promote the realization of green and
With the base year of 2024 low-carbon development. The Company has established a relatively complete energy (carbon) management system and set
up a specialized Energy (Carbon) Management Committee (refer to Combating Climate Change section for more detail) which
By the end of 2027 By the end of 2029 By the end of 2049 is responsible for coordinating various energy management activities and overseeing the achievement of energy use targets.
12% Operational carbon Operational carbon The Company has formulated the Capchem Energy (Carbon) Management System in accordance with the laws and regulations peaking by 202910 neutrality by 2049 relating to the use of energy in the country and the place of operation. The Company is committed to reducing energy use and actively carried out internal energy reviews including an external energy audit of our Huizhou Capchem and a survey on ener-
reduction in total carbon emissions9 (including GHG (including GHG removals) (including GHG removals) gy utilization. The Company has implemented a number of targeted energy consumption management measures to enhance
removals) from the existing bases with stable operation. operational energy efficiency according to the product categories.
15% ● B attery chemicals: Carrying out the renovation of automatic control of equipment implementing hot water recycling optimizing process energy saving strengthening energy consumption management etc.
reduction in carbon footprint of all electrolyte products ● O rganic fluorine chemicals: Upgrading equipment automation and optimizing production
● C apacitor chemicals: Optimizing key energy-consuming equipment
● S emiconductor chemicals: Optimizing production equipment
During the Reporting Period the greenhouse gas emissions of Capchem were as follows:
The Company also adopted measures including building an energy management platform improving the utilization rate of renewable
Indicator Unit 2024 energy sources and energy-saving technological renovation to comprehensively promote the optimization of the energy structure.Total greenhouse gas emissions (excluding greenhouse gas removals) tCO2e 2878063.71 The Company actively engages in green power procurement to increase the use of cleaner energy. In 2024 approximately 50%
Carbon dioxide removal tCO e 68627.37 of the electricity used in the Company's electrolyte production came from green power and the production of battery chemi-2 cals accounted for more than 70% of the Company's total annual production. The use of cleaner energy substantially greatly re-
Scope 1 greenhouse gas emissions (excluding GHG removals) tCO2e 67378.19 duced conventional energy use and carbon emissions in the Company's core business.Among them the lithium battery electrolyte production of Suzhou Novolyte and Nan- 证书编号(Certificate No.): 12241000259002
Scope 2 greenhouse gas emissions (excluding greenhouse gas removals) tCO2e 307185.64 tong Capchem has already realized 100% green power utilization; Jingmen Capchem 绿色电力消费凭证Green Electricity Consumption Certificate
消纳方(Consumptive Party) ： 南通新宙邦电子材料有限公司
Scope 1 and Scope 2 greenhouse gas intensity（including greenhouse gas removals） tCO e 0.39 Huizhou Capchem and Sanming Hexafluo have also realized part of the green power 消纳方所在地(Consumptive Site) ： 江苏2 utilization. Capchem Poland has increased the use of clean energy by installing solar 供电方(Electricity Supplier) ： 宝应国源巳丰新能源开发有限公司供电方所在地(Electricity Supplier Site) ： 江苏
消纳周期(Consumptive Cycle): 2024年03月01日-2024年03月31日
Total Scope 3 greenhouse gas emissions (excluding panels effectively reducing the greenhouse gas emissions generated by purchased 消纳电量(Electricity Consumption): 560.0000MWh电量类型(Electricity Type) ： 风电
greenhouse gas removals) tCO2e 2572127.24 power. By installing solar panels to increase the use of clean energy we have effectively
reduced the greenhouse gas emissions generated by purchased electricity. 扫码区块链溯源
Purchased goods and services tCO BPX竺思忍齐恩忠应2e 2455783.73 本绿色电力消费证明溯捅由e－交易平台、 国网区块链科技公司提供支持
Scope 3 greenhouse gas Upstream transportation and distribution tCO2e 54833.62 The Company integrates energy-saving inspections into quarterly training and target management ensures that people at all
(excluding greenhouse Business travel tCO e 697.26 EHS audits and regularly informs each base of its energy use and levels are actively involved in the practice of energy saving and gas removals) 2 progress in implementing energy-saving and carbon reduction consumption reduction.Employee commuting tCO2e 3021.90 measures through inspection reports and quarterly carbon
management reports. In addition the Company also promotes As of the end of the reporting period Shenzhen Capchem
Downstream transportation and distribution tCO2e 48551.32 the efficiency of energy use by optimizing the production process Huizhou Capchem Sanming Hexafluo Nantong Capchem
Solid and liquid waste disposal tCO e 9239.41 improving the efficiency of raw material use and reducing energy Jingmen Capchem and Suzhou Novolyte had obtained ISO 50001 2 consumption in warehousing. Certification of which Nantong Capchem Jingmen Capchem are
production bases of obtaining ISO 50001 Certification in 2024
Capchem has implemented a series of greenhouse gas emission reduction measures and details of the implementation of the emission The Company continues to enhance the energy management which provided standardization and normative support for the
reduction measures and the amount of greenhouse gas emission reduction are set out in the Green Process section. During the Reporting awareness and skills of its employees and through systematic Company's continuous optimization of energy management.Period Capchem did not involve in carbon credits and did not participate in voluntary greenhouse gas emission reduction projects.
9 W ith the base year of 2024 the scope of GHG emissions covered by the target is Scope 1 and Scope 2 GHG emissions (including GHG removals). When
setting the target the following factors were taken into account in setting the GHG target and reviewing the annual target: In consideration of the
technology of the GHG inventory and many other factors that may affect the data of the base year the Company need to re-calculate the base year
in the event that the change in the Company's overall emissions (carbon dioxide equivalent) is greater than 5% (±5%) of the significance limit when
comparing the base year based on changes in the following circumstances: (1) structural changes in reporting or organizational boundaries (e.g.mergers or acquisitions) (1) structural changes in reporting or organizational boundaries (e.g. mergers acquisitions or divestitures) or (2) changes in
calculation methodologies or emission factors or (3) the discovery of one or more cumulative errors that are material
10 The scope of GHG emissions covered by the target is scope 1 and scope 2 GHG emissions
Energy management system certificates of Capchem's production bases
76 77About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Environmental Compliance Management Strategy
In order to address the impacts risks and opportunities related to environmental compliance Capchem has formulated an
EHS management policy and an environmental management strategy and continues to empower environmental compliance
management through the minimization and resourcing of "waste water waste gas solid waste" and the adoption of cleaner
Capchem strictly abides by the laws regulations and policies related to environmental protection of the country and the production processes.location of production bases insists on choosing more environmentally friendly raw materials adopting cleaner processes
using more energy-saving equipment realizing green development with technology empowerment reasonably controlling
resources and energy consumption and optimizing waste management.Compliance
with laws and
regulations life
above all
Governance
The Company has formulated Environmental management regulations such as the Environmental Factors Identification and
Evaluation Control Program the Pollution Control Procedures and Emergency Response Plan for Sudden Environmental Scientific
Incidents following the concept of "People-oriented striving for green excellence". Meanwhile the Company has set up an management EHS Policy of Safety first
EHS management structure with clear division of roles and responsibilities responsible for decision-making supervision and for continuous Capchem with prevention
management of EHS-related issues including pollutant discharge waste treatment and water resource utilization. improvement as the focus
The Board of Directors as the highest leading organization of the Company's operation and EHS management is responsible
for making major decisions on environmental protection and supervising environmental protection work; the Executive
Committee under the Board of Directors is responsible for coordinating the promotion and implementation of environmental
protection work. Under the leadership of the Board of Directors and the Executive Committee the EHS Management
Committee is responsible for implementing all environmental protection decisions and tasks deploying and guiding the People- oriented
Company's environmental protection work formulating environmental protection policies and guidelines and organizing striving for
and carrying out environmental protection audits and evaluations etc. The EHS Center is responsible for assisting the EHS green
Management Committee in supervising and managing the environmental protection work of the production bases and the excellence
implementation of environmental protection related work by the production bases. EHS Policy of Capchem
Board of Directors Responsible for major environmental protection strategies and overseeing the environmental protection work of the Company.During the Reporting Period the Company formulated a list of environmental compliance risks by comparing with regulations
Executive Responsible for the promotion and implementation of the Company's environmental policies and standards and carried out various initiatives to continuously strengthen the Company's ability to manage
Committee protection strategies. environmental compliance risks.EHS Management Responsible for environmental protection tasks and assignments guiding the
Committee Company's environmental protection work formulating environmental protection policies and organizing environmental safety evaluations. Risk category Risk description
EHS Center Responsible for coordinating the EHS Management Committee and monitoring local Policy and
The Company's global operations face stricter policy and regulatory pressures in the medium
environmental protection work at production bases. Regulatory Risks to long term due to the compliance risks associated with the accelerated updating of domestic and international regulations and increased enforcement.Subsidiaries Responsible for the implementation of environmental protection tasks at their respective Failure to comply with regulatory requirements for environmental protection in the course companies. Business impact risk of production and operation may result in the Company facing administrative penalties for
environmental compliance and affect the Company's reputation.The Company attaches importance to environmental performance management and has formulated the EHS Reward Financial risk Financial risks such as high operating costs of pollution prevention and control facilities in the
Punishment and Performance Evaluation Management System. The board of directors of each production base supervises course of production and operation.and evaluates the environmental protection work of each unit in the current period through quarterly meetings and semi-
annual or annual work inspections. At the same time the Company links the performance of EHS issues with the evaluation Downstream customers are demanding more and more environmental management from
of the remuneration of executives and incorporates the environmental performance into the performance index system of the Competition risk the Company and the Company may face the risk of not being able to fully meet customers'
management and each level unit. requirements on environmental management and environmental performance.
78 79About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
During the Reporting Period all production bases of the employees of the Company's production departments and the At the same time the Company has formulated the "4R" control principle for the whole life cycle from research and
Company have implemented various daily management work contents of the trainings include environmental laws regulations development to waste disposal based on the compliance risk good impact risk financial risk and market competition risk
of environmental management in accordance with statutory and standards operation and management of environmental related to the environment.requirements and self-monitoring of environmental impacts in pollution prevention and control facilities and environmental
accordance with regulations. Meanwhile the Company carries management system.out environmental compliance audits for all operating sites
every year including compliance checks of laws and regulations In terms of emergency management of environmental Reduce
integrity checks of the environmental management system and emergencies the Company has actively signed the Emergency
internal environmental management system and monitoring Rescue Mutual Assistance Agreement for Environmental Adopt low pollutant generating processes
and auditing of environmental protection emissions etc. The Pollution Sudden Incidents with relevant enterprises and
national hazardous chemical emergency rescue bases and other Clarify requirements for process changes/new processes in terms of Company has compiled a standardized assessment form for pollutant emissions
the construction and operation of environmental pollution professional forces so as to consolidate its own emergency
prevention and control facilities and carried out a standardized response capability for environmental emergencies.assessment of the construction and operation of environmental
pollution prevention and control facilities of the bases and In addition the Company has formulated corresponding
formulated corresponding improvement plans to promote the emergency response plans for specific situations such as Replace
improvement of the management level of pollutant discharge chemical leakage hazardous waste leakage environmental
and disposal. While preventing environmental compliance risks emergencies derived from production safety accidents etc. Use low-toxicity low-risk low-pollution raw materials
the Company actively carries out environmental compliance and regularly conducts internal and external special drills and Define the requirements for the introduction of new processes in terms
awareness raising and capacity building. In 2024 the Company training. of pollutant emissions
has conducted a total of 139 environmental compliance trainings
at all bases with a total duration of 12957 hours covering all
In 2024 Recycle
Reuse of waste resources generated
the Company has conducted a total of with a total duration of Improve the resource reuse rate of hazardous waste
139 12957 Improve reclaimed water reuse rate and gradually realize zero discharge hours Gradually realize recycling all general solid wastes
environmental compliance trainings at all bases
Impact Risk and Opportunity Management Reuse
In accordance with environmental protection regulations and standards and the requirements of ISO 14001 and other risk Reduce waste by recycling packaging and other materials in the
management requirements the identification and assessment of environmental compliance risks are comprehensively production process
integrated into the Company's strategic decision-making and daily operation management. Gradually increase the use of recyclable materials and reduce the
generation of waste
Optimise environmental compliance Conduct regular environmental
risk management and control measures 4R Control Principles for Environmental Protection Throughout the Life Cyclecompliance risk identification
based on the results of the environmental
compliance risk assessment Act
Plan
Indicators and Targets
PDCA
During the Reporting Period Tianjin Capchem and Fujian Heptafluo obtained During the Reporting Period
Check ISO 14001 environmental management system certification. As of the end of the
reporting period a total of 90.9% of stable operating bases have obtained the
Do
Assess the impact of environmental Manage environmental compliance ISO 14001 environmental management system certification . The bases that had the Company's investment in
compliance risks risks to ensure they are manageable not yet passed the certification also strictly followed the ISO 14001 standard in environmental protection amounted to
carrying out their environmental management work and actively carried out the
relevant certification system audits. During the Reporting Period the Company
has not been penalized by the competent authorities for violating the relevant RMB 34.05 million
laws and regulations on environmental management nor has it been affected
Environmental Compliance Risk Management Process of Capchem by pollutant emissions on its employees or local community residents.
80 81About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Emissions and Waste In 2024 the Company conducted an assessment of the construction and operation of pollutant control facilities at each of its sites (refer to the Environmental Compliance section for more details).During the Reporting Period the Company did not incur any environmental violations or administrative penalties related to the
discharge of pollutants. The emission reduction targets for each pollutant discharge and the annual achievements are as follows:
Capchem strictly complies with the pollutant emission standards of the country and the place where it operates formulates 2024 Target Achievement in 2024
compliant and efficient management and disposal processes for all kinds of emissions and wastes generated in the course of
production and operation and endeavors to minimize the impact of emissions and wastes on the environment.Decrease in wastewater discharges per unit of product year-on-
year using 2023 as the base year
Pollutant Emissions Target achieved5%
Capchem strictly controls the emission and disposal of pollutants during the production and operation process implements green
production at source to reduce the generation of pollutants and continuously optimizes the management and governance of waste
water waste gas solid waste to ensure that all wastes are discharged and disposed of in a compliant manner. Hazardous waste emissions per unit of product year-on-year with
2023 as the base year Decrease of
The Company has formulated a perfect internal management system for pollutant emissions during production and operation and Target achieved
further revised the Hazardous Waste Management Systems according to the audit requirements of suppliers to clarify the emission
limits and disposal requirements of various pollutants. At the same time the Company continues to minimize the emission of 5%
pollutants and reduce its environmental impact through source reduction process control and end-of-pipe management.Pollutant Major management
types systems Main emissions types Treatment methods
Water reuse or discharge to
The Pollution Industrial wastewater domestic standards through biological Waste TreatmentWaste water Control Procedures sewage chemical and other wastewater
treatment processes The Company has established a perfect waste management system taking "minimization resourcefulness and harmlessness"
Nitrogen oxides (NOx) particulate as the principle while reducing general waste emissions it continues to optimize its packaging materials implement recycling
matter (PM) sulfur oxides (SOx) Recycling through absorption and reuse measures improve the recycling rate of waste and contribute to the development of circular economy.Waste gas The Pollution volatile organic compounds (VOCs) condensation regenerative Control Procedures odor sulfuric acid mist hydrochloric combustion etc. or meeting
acid mist non-methane total emission standards T he Company actively promotes the concept of circular economy and reduces waste emissions by optimizing testing
hydrocarbons etc. methods and adopting environmentally friendly reagents.Waste organic solvents waste filter
cartridges waste packaging materials Entrust third-party qualified The Company replaced some of the raw material galvanized barrels packaging incoming material with tank truck
The Hazardous waste activated carbon waste molecular organizations to carry out harmless incoming material achieving a reduction of approximately 7.5 tons of waste galvanized barrels per month.Hazardous Waste Management sieves production waste liquids treatment;waste Systems wastewater treatment sludge organic Some hazardous wastes are treated
resin wastes distillation residues waste by incineration
mineral oil incineration residues etc. General waste discharge General waste discharge intensity Total recycling of general waste
Shenzhen Capchem Hunan Fluopont 876.46 Ton 0.001 Ton/RMB 10000 in revenue 69.90 Ton
Upgrade the laboratory's waste gas treatment method Upgrade the waste gas treatment process to a mem- Capchem Waste Emission and Recycling Volume
to a two-stage treatment system with activated carbon brane and resin process to reduce Volatile Organic
and liquid spraying to reduce the environmental Compounds (VOCs) emissions.pollution caused by exhaust gases.Jiangsu Hicomer Sanming Hexafluo Capchem conducted the "empty plate" campaign
Enhance the wastewater treatment process by adding Treat wastewater through the new process of desal- During the Reporting Period the Company carried out the "empty plate" campaign launching the initiative of "civilized
IC treatment technology micro-electrolysis as well as ination by negative pressure evaporation to reduc- dining and food saving" to all employees which not only reduced the consumption of food resources and the generation
RO and ultrafiltration processes further reducing the ing the amount of hazardous waste generated and of food waste but also cultivated the staff's awareness of saving and sense of social responsibility and enabled the staff to
pollutant content in the wastewater and ensuring that improving the quality of wastewater discharge. develop a sense of thrift and frugality in daily life and work.the effluent reaches a level suitable for recycling.Pollutant optimization measures
82 83About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Resource and Ecological Protection Ecosystem and Biodiversity Conservation
The Company has always been highly concerned about During the site selection and construction phase of the
the impact of its operational activities on biodiversity plant the Company gives priority to areas with low ecolog-
Capchem continuously optimizes the water consumption structure of its production process to reduce its dependence on and strictly abides by the Environmental Protection Law ical impact through environmental surveys and investiga-
water resources and minimize the risk of soil and groundwater pollution from its production operations. Meanwhile the of the People's Republic of China the People's Republic tions and tries to adopt low-impact construction methods
Company continues to pay attention to biodiversity protection taking ecological impacts into account from factory site of China Soil Pollution Prevention and Control Law the such as steel structures to minimize interference with local
selection to production operations to ensure synergy between business development and biodiversity protection. People's Republic of China Water Pollution Prevention biological habitats. In the production and operation stage and Control Law and the People's Republic of China Sol- the Company reduces the negative impact of its production
id Waste Pollution Prevention and Control Law as well activities on the natural environment by optimizing the en-
as the relevant laws regulations and policies of the loca- ergy structure gradually reducing its reliance on traditional
tions where it operates and strictly abides by the ecolog- energy sources and introducing advanced pollution control
Water Resource Utilization ical red line. technologies.Capchem is committed to reducing the dependence on water re-
sources for its production and operations and has implemented
multiple measures to reduce the use of water resources based on
the principles of reducing water consumption and enhancing the
efficiency of water resources utilization. During the Reporting Peri-
od the Company formulated the Water Conservation Management
System and continued to explore the potential for water conser-
vation and recycling in production and promoted the innovation
and application of water-efficient production process. In 2024 With the Company's total amount
we carried out water resources consumption analysis in all our of water reuse amounting to
subsidiaries and bases promoted the best water-efficient process
and reduced the use of water resources through alternative water
use with the Company's total amount of water reuse amounting to 363862 tons
363862 tons.
Water-saving Optimize the production wastewater treatment process and convert the existing
technological wastewater into tap water that can reach the use standard after treatment and reuse it Capchem conducts biodiversity assessment for investment projects
transformation for the domestic water of the base.During the early stages of project implementation the company conducted environmental impact assessments to
minimize potential impacts on the ecological environment. For example the company's investment projects in the
C ollect steam condensate reprocesse it and recycle it; Collect steam condensate and United States are located in areas with wetlands which are home to an aquatic protected animal. The company Water reuse measures equipment jacket circulating water to realize water reuse. supported relevant departments to adopt wetland mitigation methods and seek more suitable habitats for the protected species.Reducing water
consumption Reduce production water consumption by optimizing the drum cleaning process.Meanwhile the Company pays great attention to soil and groundwater protection and systematically evaluates soil and At the same time the Company has strengthened the ecological environment assessment of project sites to ensure that
groundwater and regularly monitors the monitoring points during the stages of soil and water environment assessment business activities not cause irreversible impacts on local ecosystems. The Company takes ecological environmental
construction and post-commissioning of the project. protection as an important basis for decision-making and ensures that the need for biodiversity conservation is fully taken into
account in the course of business development.During the Reporting Period the water resources used by the Company were from municipal water supply and there was no
significant impact on water resources in terms of water intake water consumption and wastewater discharges and there were During the Reporting period all the Company's production bases were not located in important ecological function zones or
no incidents of pollution related to soil and underground water bodies. In the future the Company will further assess the water ecologically sensitive and fragile areas. For factories and bases that may have potential impact on the ecological environment
risks of its existing operations and set targets for water conservation. the Company has carried out relocation measures and stopped the production of relevant hazardous chemicals to further
minimize ecological risks.
84 85About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Responsible Supply Chain
100% of core material suppliers have achieved ISO 9001 Quality Management
System certification and all have signed the Human Rights Compliance and
Conflict-Free Minerals Declaration. Over 91% of core material suppliers have
completed the signing of CSR agreements
Capchem has provided 24 quality-related trainings to core material
suppliers covering 299 individuals marking a significant improvement
compared to 2023
ISO 14067 system trainings have been conducted for 91 core material
suppliers
Capchem safeguards labor rights and occupational health and safety
conducting irregular supplier audits
A due diligence management procedure for responsible mineral supply
chains has been established
Human Rights of Employees
The total workforce was 4197 with 669 new hire
80% of local employees in Capchem Poland
Absence of labor violations such as child labor and forced labor
Talent Development and Incentive
The average number of training hours per employee over 41 hours
100% of employees receiving performance appraisals
04 Employee Rights Interests and Benefits The Company cumulative investment in promoting the well-being of its employees amounted to RMB 41.2074 million
The satisfaction survey of the Company covered 100% of full-time and
part-time employees and the employee satisfaction was rated "Good"
Community Contributions
Win-win During the Reporting Period Capchem invested a cumulative total of RMB2.6137 million in support of social welfare causes At the end of 2024 Sanming Hexafluo has donated to the Scholarship
Fund for four consecutive years with a cumulative donation of RMB7.58
million
Win-win is always the constant pursuit of Capchem. The Company insists
on building a supply chain ecology with a responsible attitude attaches
importance to talent development and incentive and makes every effort to
protect the rights and benefits of employees. We also actively participate in
public welfare and charitable activities to give back to the community with
practical actions showing the responsibility and commitment of Capchem. Capchem Poland Community Activity
86 绝密文件 未经许可 不得复制扩散About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Responsible Supply Chain
Strategy
Capchem adheres to the core concept of "building a competitive supply chain and creating the optimal cost and service value
for customers" and deeply integrates the Company's sustainable development strategy into the ESG management and practice
of the supply chain to build a responsible resilient green and traceable responsible supply chain system. The Company works Based on the strategic layout of sustainable development Capchem deeply integrates ESG management into the full life
with suppliers and their upstream partners to promote the sustainable development of the whole industrial chain. cycle management of the supply chain conducts business in a responsible way and fulfills the missions of environmental protection human rights equality conflict minerals and compliance governance. The Company fully identifies potential risks
and opportunities is committed to building a resilient green and efficient responsible supply chain and works with supply
chain partners to achieve sustainable development.Governance Capchem builds a supplier full life cycle management system continuously improves the supplier development management
and evaluation mechanism of the five core stages of "resource development-certification-evaluation-maintenance-
Capchem continues to improve our supply chain management system and the Company has built a three-tier management elimination" and regularly conducts supplier ESG performance assessment to reduce supply chain risks.structure for our supply chain and clarified the division of responsibilities at each level to ensure the stable operation and
efficient management of the supply chain. In the procurement process the Company strictly complies with the Capchem
Supplier Code of Conduct and the Supplier Code of Conduct Management System and makes reference to the Due Diligence
Management Procedures for Responsible Mineral Supply Chains to formulate the Management Supplier Social Responsibility Supply chain Supplier Key contents
System the Supplier Code of Conduct for Responsible Procurement the Due Diligence Management Policies for Capchem's management stages status
Responsible Mineral Resources Supply Chains and the Supplier Policy for Responsible Procurement Investigations to
strengthen the supply chain's ESG management and ensure compliance of the entire procurement process. Enterprise ●
Resource registration
/ Invite new suppliers to register basic information in the SRM system.development
President Sample ● certification Conduct quality certification for supplier products.S erves as Director of the Supply Chain Management Committee Potential ● P erform basic qualification review.P rovides guidance on supply chain practice directions principles and standards Qualification supplier ● Certification C
onduct system audits on quality hazardous substances management EHS carbon
Chairs major decisions provides guidance decision-making and necessary review management etc.support and drives management change ● S ign agreements covering procurement quality integrity confidentiality etc.Small batch ● D evelop trial plans and validate product continuity and stability through multiple
trial use batches.Evaluation Trial
●
Admission supplier Conduct on-site system and process audits. After passing the audits an admission
review review for trial supplier will be initiated to judge whether to enter qualified supplier management.● E stablish a supplier performance evaluation model evaluating supplier performance
in six dimensions: management quality cost service technology and sustainability.Performance Publish the evaluation results and implement rewards and penalties.Supply Chain Management Committee Supply Chain Working Group evaluation
Maintenance Qualified ● C onduct supplier classification and grade management based on performance supplier evaluation results and mutual benefits.M anages sustainable supply chain operations Facilitates plans design decision-making Supplier ● R equire improvement or guidance for suppliers that need improvement. In case of
key milestones resources scope major risks and and implementation within the sector risk rectification unqualified rectification Supplier Elimination Management Process will be activated.issues for each business module identification and development of improvement
Maintains lateral communication with other measures Elimination Supplier Eliminated ● E liminate suppliers that fail to meet the required standards.modules of the business to ensure sustainable C arries out regular management organizes elimination supplier
supply chain plans are in place internal departmental meetings and reports
Collaborates with business modules to regularly to superiors Supplier Full Lifecycle Management Stage Process Table
identify change risk points and oversees the Deeply involved in status quo research guides
implementation and effectiveness of change plans data analysis performance indicator design etc.to identify business pain points and needs in Capchem fully integrates ESG elements into the full life cycle management of suppliers regularly assesses suppliers'
execution performance in dimensions such as Environmental Protection Employee Rights Interests and Benefits Health and Safety
Consolidates vendor training materials and Conflict Minerals and Compliance and Governance and promotes suppliers' active fulfillment of their ESG responsibilities.plans organizes vendor awareness and training In 2024 Capchem has achieved the goal that 100% of our core material suppliers have signed the relevant agreements and
Capchem Supply Chain Management Governance Structure committed to complying with the Guidelines.
88 89About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Environmental Responsibility Labor Protection
Green Product Design Compliant Employment Conflict Minerals Specific Actions
S uppliers are progressively transitioning to green C hild labor and forced labor are prohibited.raw materials and renewable energy reducing
negative environmental impacts from product S upplier audits are conducted on an irregular basis.design and production stages. Commitment to complying with relevant United Nations sanctions
Environmental Compliance Management Protection of Labor Rights and Interests resolutionsLocations of Conflict Minerals:
At the supplier onboarding stage EHS A nti-discrimination and anti-harassment policies Democratic Republic of the Compliance with domestic and international laws enforcing such
management agreements are signed and are in place to safeguard labor rights and respect Congo (DRC) Rwanda Uganda resolutions such as the Organisation for Economic Co-operation and
suppliers are encouraged to obtain relevant ISO multiculturalism. Burundi Tanzania Kenya Development (OECD) Due Diligence Guidance for Responsible Supply
system certifications. R easonable working hours compensation and Chains of Minerals from Conflict-Affected and High-Risk Areas and the
Types of Conflict Minerals: Gold Regular supplier site audits are conducted to benefits are guaranteed. China Responsible Minerals Supply Chain Management Guide(Au) Tantalum (Ta) Tungsten (W)
monitor their environmental performance Cobalt (Co) Tin (Sn) Lithium (Li)
including pollution emissions and resource usage. Conducting due diligence and management of responsible minerals in
Health and Safety the supply chain
Carbon Emission Management O ccupational health and safety measures are
Establishing a supplier whitelist with reference to the Responsible Core suppliers are assisted in conducting carbon provided. Minerals Initiative (RMI)
emission assessments and customized capacity- A comprehensive emergency management
building projects are supported to enhance their mechanism is established. Commitment to refrain from engaging in any activities that fund
performance. conflicts including those related to human rights
A digital system is established for efficient carbon
emission management.Key Contents in the Human Rights Compliance and Conflict-Free Minerals Declaration of Capchem
Conflict Minerals Compliance Governance
Supplier Whitelist Business Ethics
A supplier whitelist is established with reference All suppliers sign Integrity Agreements. At the end of Reporting Period 100% of Capchem core material suppliers have signed the Human Rights Compliance and
to RMI standards. S uppliers and employees are encouraged to Conflict-Free Minerals Declaration and ensured that the conflict minerals involved in the Company do not originate from
report corruption and fraud. anarchic armed forces or illegal smuggling channels and are not mined or smuggled from illegal groups in conflict zones. The
metals used by suppliers are also strictly excluded from minerals from Congolese veins that do not meet the "conflict-free" Conflict-Free Minerals Commitment F air trade advertising and competition standards standards as recognized by the United Nations Security Council.are upheld.
00% of core material suppliers have signed the
Human Rights Compliance and Conflict-Free Intellectual Property
Minerals Declaration. S uppliers shall protect all intellectual property
Due Diligence rights of Capchem. S uppliers shall respect the intellectual property A responsible minerals supply chain due diligence rights of third parties.management program is established requiring
relevant suppliers to conduct traceability and due Information Security
diligence investigations.S uppliers are required to sign a procurement
framework agreement incorporating
confidentiality requirements.S uppliers are required to properly safeguard
Capchem information and comply with
confidentiality agreement terms.Capchem Supply Chain ESG Management
Capchem has incorporated CSR signing into the supplier access conditions and carried out CSR supplemental signing work for
the suppliers that have been admitted. At the end of the Reporting Period the CSR agreement signing rate of the Company's core
material suppliers exceeded 91% and CSR audits of suppliers have been gradually launched.Capchem continues to improve the construction of systems and standards related to responsible supply chains and has built due
diligence management procedures for responsible mineral supply chains requiring relevant suppliers to carry out traceability and
due diligence in accordance with the Human Rights Compliance and Conflict-Free Minerals Declaration. In addition the Company
continues to promote RMI certification of suppliers during the procurement process sets up a white list strictly avoids mineral
resources in conflict areas and highly respects and protects the rights and interests of laborers in the mining areas.
90 91About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Impact Risk and Opportunity Management ● S upplier onboarding risk assessments and daily risk monitoring.● D evelop BCM business continuity management procedures and conduct risk assessment and management of critical
Supply Chain Risk resources and activities.Resilient Supply Chains Identification and Management ● A dopt risk-specific disposal measures for higher-risk projects.Capchem is committed to building and continuously optimizing a resilient supply chain system guaranteeing that the supply ● D ynamically improve the contingency plan by combining RTO (Recovery Time Objective) and the Company's
chain can effectively cope with disruptions and quickly recover in order to cope with the challenges brought about by the development requirements.VUCA characteristics of the external environment. Combined with ESG management standards the Company is continuously Supply Chain
building a localized supply chain and intelligent transformation of the supply chain and continuously strengthening the ● Structure The Company establishes a diversified supply chain to shorten the transport distance and save transport time by
resilience of the supply chain to ensure the continuity of the business of the Company and to develop new markets so as to Optimization supplying nearby speeding up the response of the supply chain and improving the agility of the supply chain.gain an advantage in the market competition. In addition the Company continuously improves supply chain risk management
mechanism takes supplier access assessment as a starting point carries out regular monitoring and tracking and implements ● Rationalize Safety Based on the production and sales situation of each supplier and each base the Company will set up reasonable
regular assessment and enhancement initiatives to effectively carry out supply chain risk control and response work. Stocks safety stocks with suppliers and internally to ensure continuous and stable supply in the supply chain in case of material shortage or emergency demand.● E nsure a stable supply of strategic resources by deepening strategic cooperation with suppliers through long-term
● C apchem conducts risk assessments prior to supplier onboarding fully incorporating Supply Chain Co- cooperation agreements and regular reviews of the reasonableness of production capacity and other measures.operation and
Supplier Onboarding the supplier's ESG performance and outputs a Potential Supplier Risk Assessment Industry Synergy ● T reat the SMEs partners with respect and equality safeguard the rights and interests of SMEs and support their
Risk Assessment Form. development.11
Capchem Resilient Supply Chain Key Initiatives
● Capchem carries out normalized ESG risk assessments within its supply chain.Green Supply Chain Construction
● Develops Risk Identification and Assessment Process Management and Risk
Normalized Risk Response and Tracking Process Management.Monitoring and Tracking Capchem actively responds to the United Nations' Sustainable Development Goals by focusing on the construction of a green
● C onducts monthly risk identification and prevention activities. supply chain demonstrating our commitment to sustainable development through concrete actions. The Company conducts
an inventory of carbon emissions for core raw materials (accounting for 80% by quality) identifies carbon reduction potential
within the value chain and is dedicated to enhancing suppliers' carbon emission management capabilities. This aims to
achieve carbon reduction across Capchem's value chain and promote our green and low-carbon transformation. Furthermore
● C apchem conducts semi-annual supplier performance evaluations with assessment the Company actively practices the concept of circular economy by encouraging suppliers to adopt green packaging materials
indicators covering management quality cost delivery technology and ESG and promote their recycling. Additionally we implement electronic management to reduce paper consumption and minimize
dimensions. unnecessary resource wastage.Supplier Evaluation
and Improvement ● B ased on the evaluation results specific improvement plans are formulated and
implemented.● C onduct a baseline assessment of carbon emissions from core raw materials to
Capchem Supply Chain Risk Management Mechanism understand the current emission status and data foundation of relevant suppliers
Carbon
●
Reduction P rovide ISO 14067 system training for 91 core material suppliersFurthermore Capchem continuously improves risk identification and management within our supply chain enhancing the flexibility
and resilience of the supply chain through structural optimization. The Company also sets reasonable safety stock levels to ensure ● Offer customized coaching and capacity-building programs
stable resource supply. Additionally Capchem actively supports and treats small and medium-sized enterprises equally thereby
strengthening the diversity and stability of our supply chain and promoting mutual benefit across the value chain.Packaging ● U rge suppliers to upgrade from 200L double-ring plastic drums to single-ring plastic
Material drums to reduce plastic waste generation
Substitution
●
and Upgrade Encourage suppliers to switch from small bottles to stainless steel drums achieving a transition from single-use packaging to recyclable packaging
Electronic ● M anage product status through an electronic system to reduce printing and paper
Management consumption
Capchem Green Supply Chain Construction Initiative
11 During the Reporting Period Capchem was not involved in any situation where the balance of accounts payable (including bills payable)
Huizhou Capchem exceeded RMB30 billion or accounted for more than 50% of total assets
92 93About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Digital Empowerment Supply Chain Management and Traceability Human Rights of Employees
Capchem actively promotes the deployment of digital systems building and continuously upgrading ERP SRM and OA
systems. By leveraging digital technology we conduct in-depth analysis of procurement and quality data and regularly
generate management reports to support supply chain traceability management and improvement. Additionally we embed
ESG management processes into the SRM system tapping into the potential of digitization to continuously empower ESG
management. Through functional upgrades we achieve efficient control and evaluation of supplier agreement signing site High-quality talents are the core elements to promote the continuous progress of enterprises. Capchem empowers every employee
audits and performance assessments strengthening the digital empowerment of the supply chain. with the talent development concept of " Participate·Develop·Undertake·Share" and is committed to constructing a diversified inclusive and energetic workplace environment so as to move forward side by side with the employees and create a bright future
together.Indicators and Targets
Capchem is committed to building a sustainable supply chain ecosystem fully supporting suppliers to improve ESG
performance consolidating the results achieved in supply chain management and working with partners to promote
industrial development. Participate Develop
To provide each employee with the Comprehensive training system and
opportunity and platform to display dual-channel career development path
his or her talents to the fullest. empowering employees to grow.Over 91 % 100 %
of core material suppliers have completed the of core material suppliers have signed
signing of CSR agreements the Human Rights Compliance and
Conflict-Free Minerals Declaration
The proportion of core material suppliers that
have obtained ISO 9001 certification has reached
100%
Employees are encouraged to
develop together with the Company
and to shoulder responsibilities A value distribution system
tackle challenges and achieve for sharing business results is
breakthroughs. implemented to pay value creators.Undertake Share
Capchem Talent Development Concept
94 95About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Employee Selection and Recruitment Talent Development and Incentive
Taking the Labor Law of the People's Republic of China the Labor Contract Law of the People's Republic of China and other laws
and regulations applicable to both domestic and overseas operations as guidelines and taking into account the UN Sustainable Employee development is the key to the shaping of corporate culture. The Company always focuses on the long-term
Development Goals (SDGs) the Universal Declaration of Human Rights (UDHR) and the guiding principles of the Responsible development of employees focusing on the three dimensions of "incentive development and culture" providing employees
Business Alliance (RBA) Capchem has continued to optimize the "Capchem CSR Management Handbook" internal management with diversified training and development opportunities motivating employees to constantly break through and realizing a
systems to lay a solid institutional foundation for building a solid employment relationship. win-win between personal value and corporate goals.In terms of talent selection Capchem adheres to the employment principle of "Prioritize virtue combining morality and competence".Combined with the changes in the market environment and the company's development needs Capchem recruits talents through Staff Training
diversified channels such as social recruitment campus recruitment and school-enterprise cooperation so as to support the optimization
and improvement of the company's organizational efficiency and ensure the sustainable development of the enterprise. Based on the requirements of the management system such as Employee Training Management Procedures and Internal Trainer
Management Systems Capchem accurately dovetails with the overall strategic planning of the enterprise and the needs of
In the Reporting Period the Company continued to carry out regular social recruitment activities and welcomed every like-minded employees in different positions at various stages of their growth and through the combination of Capchem Management College
quality talent to join us with an open attitude. The Company also gradually deepens the cooperation with domestic chemical and and offline internal trainer teaching and training plans it elaborately draws up a blueprint for the cultivation of the employees
chemical colleges and universities with rich experience to help students to become successful and contribute to the prosperous throughout their careers thus ensuring the sustained and prosperous development of the enterprise.development of the chemical industry.Capchem also takes quality talents as the source of power to accelerate the Company's global industrial layout and
internationalization process. The Company follows the concept of internal talents and in the process of preparing for the
construction of its plants in the United States and Poland it has continued to attract and build a team of talents with global vision
and cross-cultural communication skills through internal mobilization technical assistance and third-party co-operation so as
to effectively shorten the cycle of plant completion and commissioning and to promote the construction of overseas factories
and high-quality development. Capchem also pays great attention to the employment and career development of local staff in its
overseas subsidiaries. As of the end of the Reporting Period the proportion of local staff in Poland reached 80%.Diversity and Equal Employment
Capchem always puts the rights and interests of employees in the first place keeps its commitment to providing equal employment
opportunities and safeguarding employment compliance and continues to optimize its internal human resources management
and is committed to providing every employee with opportunities and platforms to give full play to his or her talents.The Company firmly stands against and unequivocally opposes any form of illegal employment practices including but not limited
to the use of child labor and forced labor. The Company announces zero tolerance for any discrimination and harassment based
on race gender skin color religious belief age nationality and physical condition. In the Reporting Period neither child nor forced
labor employment was found at the Company.Online courses of Capchem Management College
Equal Employment Opportunity Employment Compliance
With the rich accumulation of practice Capchem continues to expand the course reserve of its Capchem Management College
Prohibiting discriminatory recruitment conditions No child labor providing more than 3000 high-quality training online courses for employees at different stages of growth providing strong support for employee training and development. The Company also continues to promote the cultivation and development of
internal trainers to build a professional team of teachers who are familiar with corporate strategy and culture and possess rich
Prohibiting any physical contact with employees that Taking a stand against any form of forced labor and practical experience and professional knowledge. As of the end of the Reporting Period the Company had over 30 experienced
may cause physical or mental injury arranging work legally with employees' consent and practical internal trainers.Prohibiting any verbal threats harmful to employees' Strictly guarding against illegal employment such as In 2024 Capchem further clarified the Company's job portrait and established the system of matching the degree of human
physical or mental health human trafficking and job closely focusing on the direction of growth and the required resources of the employees of each grade and position
and constructed a personalized path of development for each employee by means of employee ability assessment and
Prohibiting disciplinary actions such as physical performance analysis etc. so as to continue to improve the job competence and professional level of the employees. During
punishments the Reporting Period the Company invested a total of RMB 1.1761 million in training funds and carried out a total of 173000
hours of training with an average of more than 41 hours of training per employee.
96 97About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Capchem Talent Development Roadmap Capchem Bangjing Program
As of 2024 Capchem has successfully carried out fourteen
Integration and Development Long-term Career Planning Capchem Bangjing Program. The program combines the
Company's business development direction and helps
fresh graduates to quickly adapt to the Company's culture
Onboarding Program Career Development Professional Development Core Force Realization of Self-worth and working environment by carrying out activities such
as quality development centralized training and job
practice.
14th Capchem Bangjing Program
Onboarding Confirmation (or Probation Completion) 1Year 3-5Years 5-10Years
Coaching programs Work Plan Specialized learning map Basic and Middle- Middle and high- Staff Development
mentorship support On-The-Job Training Challenging tasks level management level leadership
Campus recruitment development: development:
employees: Bangjing General and Rotation opportunities Bangjing Program; Bangjing Program In Capchem the growth and development of talents never ends. Relying on the comprehensive qualification system and supporting
Program Specialized Training. job promotion IDP practice Regional transfers career promotion system the Company creates a vertical and horizontal talent development and professional ability enhancement external trainingetc.Social recruitment cross-department cross-department channel for employees to promote the long-term development of the enterprise. For details of the qualification system and the
employees: Onboarding rotations etc. rotations special composition of the development channels please refer to the 2023 Environmental Social and Governance (ESG) Report of Shenzhen
training. appointmentsetc. Capchem Technology Co. Ltd.Senior
management
Middle
management
Basic
Empowerment management
for middle- ● E mpowering the middle and senior management by clarifying their missions and formulating and
level and senior implementing strategic goals to make breakthroughs in management.management Grassroots Backbone Expert
Training for
●
frontline and N
urturing the frontline and middle-level management by formulating and implementing the Veteran
middle-level competency training plan for them centering on "role change capability enhancement and team
management leadership". Senior
Professional
enhancement ● C ontinuously promoting the management competencies of functional personnel and improving the
for functional professional level of functional platforms.personnel Dual Talent Development Channels at Capchem
Professional
●
enhancement for Formulating training plans for project management and other special skills for R&D personnel to In 2024 the Company improved the multiple career development channels including 4 major sequences and 54 channels
R&D personnel enhance their professional R&D capabilities. built a competence certification system for the product manager channel and extended the standards of the R&D technology
sequence according to the attributes of different businesses and sequences of talents as well as the requirements of the
positions gradually construct a differentiated talent management mechanism and guided the professional channel personnel
Professional
● E nhancing marketers' negotiation skills and market research capabilities through training to build to build and improve their competence.enhancement for
marketers an excellent sales team. Capchem also takes the evaluation of employees' ability and the display of performance results as the core promotes a clear
and visible promotion path and a wide range of development opportunities for employees helping employees to achieve a
Personalized Growth Map win-win situation in terms of their personal value and the development of the enterprise.In 2024 the Company further improved its cadre management system established and optimized the cadre selection and
appointment management system cadre succession management system cadre parachute mechanism strengthened
In 2024 the Company continues to carry out the " Capchem Series " training program systematically assisting fresh graduates the cadre integrity and discipline management mechanism and safeguarded the continuous supply of top-level talents
functional staff R&D staff sales staff and mid-level middle and senior management in their career development and skill while realizing the management of cadres throughout their life cycle to ensure the continuity and stability of organizational
enhancement to ensure that employees deeply understand and practice the Company's culture and to build a highly operations.professional and cohesive talent team.
98 99About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Talent Incentives Employee Rights Interests and Benefits
From the perspective of employees interests the Company gradually builds a comprehensive talent management strategy
integrating "Retaining talents with career treatment and culture" and builds a scientific and efficient performance appraisal
mechanism and diversified remuneration schemes for employees so as to maximize the retention of high-quality talents in
the enterprise. 2024 based on the comprehensive consideration of the external environment changes and internal business Adhering to the concept of "people-oriented" Capchem attaches great importance to the employee rights interests and
development needs Capchem optimized the remuneration incentive system aiming to fully stimulate the motivation and benefits and pays close attention to the demands of employees through meticulous welfare and care initiatives and diversified
enthusiasm of employees to work and provide strong support for the sound development of business. and smooth communication mechanisms and endeavors to build a warm and loving working environment to help employees achieve a harmonious integration of work and life."Streamlining and efficiency truthfulness and pragmatism" are the two main annual themes of Capchem's performance work
in 2024. By refining the assessment criteria and focusing on the depth of the summary report Capchem carries out innovation
and optimization of the performance system drives the business development and improvement of operational efficiency
through performance and lays a solid foundation for the promotion of the implementation of the Company's objectives and Employee Benefits
achievement of the objectives at all levels. A solid foundation has been laid to promote the implementation and achievement
of the Company's objectives at all levels.Capchem regards employees as its most valuable assets. The Company strictly abides by the statutory welfare policies
applicable to the place of operation and provides employees with comprehensive and attractive non-pay benefits by
combining the actual needs of employees in their work and life and helps employees to relax physically and mentally by
carrying out the activities of "sending coolness" in summer holiday condolences labor competitions and psychological
symposiums to stimulate the sense of belonging and work motivation of the employees. We provide employees with
Capchem continues to optimize the performance mechanism of senior management implement the assessment comprehensive and attractive non-compensation benefits.mechanism of general manager responsibility system and clarify the core responsibilities in the operation of the
company.Benefits Holidays Activities
Optimization and
Upgrading High-level Business Recruitment Holiday Paid Annual Paid Leave Wedding Annual Carnival Reading
Management Insurance Transfer Sympathy Leave of Absence Leave Meeting Bonanza
Capchem Capchem fully
takes efforts to Streamlining Performance considers ESG streamline the performance Self-operated canteen/ Annual Physical Maternity Breastfeeding Travelling Interest Holiday Physical
performance and efficiency
Management meal subsidy Examination Leave Leave Leave Association Activities Exercise
truthfulness and Sustainable objectives and process and system
management pragmatism
Development incorporates the
performance of
to efficiently ESG issues into
and truly reflect the compensation
management's evaluation system
performance for executives and Single room dormitory/ Telephone Parental Nursing Other Birthday Team Other
objectives and employees in key room subsidy Subsidy Leave Care Leave Holidays Party Building Activities
their achievement. positions.Capchem Employee Rights Interests and Benefits System
Capchem insists on sharing the fruits of corporate development with its employees providing all employees with a mixed
variable compensation plan that includes monthly performance awards year-end awards and other items and stimulating
the intrinsic motivation of key and core talents through the equity incentive policy to make them become the core engine that
promotes the lasting prosperity of the enterprise.
100 101About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Employee Communication
Promoting Employee Mental Health
Capchem understands the importance of democratic management and focuses on creating an open and inclusive corporate
culture. The Company has taken many measures to open up the communication channels for employees and ensured that
In September 2024 Fujian the opinions of employees can be known to the top management and effectively responded to in a timely manner through a
Heptafluo organized an employee combination of written and offline means. We also encourage employees to contribute to the Company's management and
psychological symposium. cultural development through Workers' congress Labor Union Representatives Meeting New Employee Executive Meeting
The event invited professional and other channels so as to incorporate their personal wisdom into every detail of the Company's development.psychological counsellors to
explain the importance of mental
health and share effective
psychological adjustment Main communication Annual focus
methods aiming to promote channels
employees' mental health and
effectively enhance their work Capchem gives full play to the bridge role of the Workers' congress to follow up and deal with the
happiness and quality of life. Workers' Congress difficulties encountered by the worker in their work and life in a timely manner and realize the deep development of democratic management.In 2024 the Labor Union Representatives Meeting became one of the core initiatives of democratic
Labor Union management in Capchem. Through the election of employee representatives the Company's labor
Representatives union takes the lead in collecting a wide range of employee proposals and opinions and deploys
Meeting enterprise development work around key issues such as employee welfare working environment
career development and related systems.The scene of staff psychological symposium
New Employee- In 2024 Capchem organized a meeting with senior management for new employees to provide
Executive Meeting a platform for new college students to communicate directly with senior management which effectively enhanced new employees' sense of belonging to the Company and sense of identity.Among them humanistic care for female employees and employees in difficulty is an important part of the welfare culture
of Capchem. The Company advocates gender equality in the workplace culture and practical action to female employees to
convey respect and care including the establishment of mother and baby room and equipped with mother and baby related
supplies. The Company is also always concerned about the living conditions of employees in difficulty through visits and Employee Seminar
condolences grants and other ways to solve the urgent needs of employees in difficulty. Capchem regularly holds new employee seminars which
In addition Capchem also implemented human resources management and protection of employees' rights and interests focus on business and product knowledge work adap-
by means of information technology establishing and continuously optimizing its internal E-HR system during the Reporting tation corporate culture awareness and career develop-
Period. The system is based on the core functions of personnel attendance and remuneration and through automated ment planning for discussion promoting good interaction
process management and an intelligent independent service platform it effectively enhances the management efficiency of and communication between employees enhancing the
the Company's managers and human resources practitioners while protecting the basic rights and interests of employees. sense of belonging and team cohesion of new employees and encouraging each new employee to be full of enthusi-
asm to build a dream of excellence together.Scene of Employee Seminar
The Company also continues to deepen the effectiveness of its democratic management through regular employee satisfaction
surveys. In 2024 the Company conducted employee satisfaction surveys based on the actual needs of employees with
questionnaires scientifically designed opinions collected and the results of the surveys analyzed in depth to identify problems in
the operation process and the results of the surveys were rectified in a timely manner and the results followed up. In Poland the
Company conducted a satisfaction survey for all employees in February 2024 and followed up the results of the survey to help
ensure that employees of different backgrounds enjoy equal rights and benefits. At the end of the Reporting Period the employee
satisfaction survey covered all employees (including part-time employees) with the employee satisfaction rated "Good".
102 103About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Community Contributions
Jingmen Capchem Carries Out Education Scholarship Donation
Jingmen Capchem which is committed
Capchem always upholds the enthusiasm for back to society During the Reporting Period to fulfilling its social responsibility
and closely integrates the concept of social responsibility with donated RMB 50000 to Jingmen
the development strategy of the organization. The Company Duodao District Mingquan Elementary Capchem invested a cumulative total of
continuously participates in and carries out various public welfare School Petrochemical No.1 Primary
charitable and community exchange activities in various fields such School Wang Bing Shi School
as education culture and sports and promotes the construction 2.6137 respectively to provide support and
of people's livelihoods through public welfare and good deeds RMB million help for students to take practical
and promotes the common prosperity of the enterprise and the actions to encourage and support local
community. in support of social welfare causes students academically which is the example of Jingmen District enterprise
charity.Rural Revitalization
Rural revitalization is of great significance for enhancing the well-being of local residents and promoting the sustainable and
healthy development of the economy and society. Capchem focuses on the growth of young people and rural education firmly
believing that knowledge is a powerful tool for poverty alleviation. The Company continuously deepens educational assistance
to support the rejuvenation of the country through science and education. Since 2022 Capchem has regularly supported Jingmen Capchem Education Scholarship Donation Ceremony
outstanding students from poor families in Tiandong County through the "Education Assistance and Dream Realization"
platform in Maluan and Tiandong. The Company has also contributed to the educational cause in the Guangdong-Guangxi
region. Meanwhile Capchem has established the "Capchem scholarship" to continuously support primary and secondary
schools as well as universities encouraging students to study diligently innovate and strive for progress. During the reporting
period the cumulative educational donations reached RMB 2.296 million. Promote Community Harmony and Prosperity
Community Co-Prosperity Capchem is committed to stimulating the cultural vitality of the community through participation in community activities
such as the Environment Day achieving communication and interaction between enterprises and the community during the
Capchem always keeps social welfare in mind. The Company pays close attention to and responds to the development needs activities and boosting the development of local cultural prosperity.of communities at home and abroad promotes the well-being of residents with practical actions boosts the prosperity of
community education culture and other fields continues to deepen the emotional connection with the community and
realizes the unity of corporate benefits and social benefits.During the Reporting Period
Contributing to Educational Development
Sanming Hexafluo donated
Capchem actively promotes the comprehensive development
of community education and continues to stimulate the vitality
of community education and help cultivate high-quality talents RMB 1.696 million
through donations to the Love Scholarship Fund and other means.During the Reporting Period Sanming Hexafluo a subsidiary of
Capchem donated RMB1.696 million to the Love Scholarship and the cumulative amount of donations for four
Fund and the cumulative amount of donations for four years years reached
reached RMB 7.58 million.RMB 7.58 million
Sanming Hexafluo carries out the donation of the Love Scholarship Fund for the fourth
consecutive year
In August 2024 Sanming Hexafluo and its executives donated RMB1.696 million to Mingxi County Education
Development Promotion Association to support the development of local education. Up to 2024 Sanming
Hexafluo has donated to Mingxi County for four consecutive years with a total donation of RMB7.58 million which
demonstrates the Company's corporate responsibility and commitment to "support the public welfare and give
back to society with its achievements". Huizhou City June 5 Environment Day
104 105About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Improve the Allocation of Community Enhancing Community Well-being
Public Resources In September 2024 Capchem
Capchem has always been actively concerned about the Capchem insists on promoting community well-being Poland in conjunction with
construction of infrastructure in the nearby communities enhancement with practical actions drawing closer to the the Poznań Municipal Fund for
giving full play to its own resource advantages and joining community through material donations carrying out caring Environmental Protection and
hands with various stakeholders to contribute to the and condolence activities etc. and continuing to convey Donation Water Management donated
improvement of the local community activity environment and warmth and care. of security helmets and other safety
the construction of a harmonious and beautiful community. equipment equipment to the Srem Regional Fire Department to ensure the
safety of local rescuers and help
improve the safety index of the
local community. Donation Ceremony of Capchem Poland
In 2024 Capchem Poland
organized a safety day in the
local community helping
Nantong Capchem organized the "Care for the Elderly with Five nearly 100 people deepen their
Jingmen Capchem participated in the donation activity of Jingmen Guarantees" activities to respect the elderly knowledge in the field of health
High-tech Zone - Duodao District and safety and environmental
protection through fun projects
Safety Day such as water safety basics CPR
activities training selection of personal
Overseas Community Building protective equipment spill
response and knowledge tests.As a responsible enterprise Capchem continues to carry outoverseas community construction and cultural exchange work
actively participates in local cultural and sports activities and community emergency drills and donates protective helmets
and other safety equipment to local departments creating good economic benefits while contributing to the prosperity and
development of local communities. Capchem Poland Safety Day
In June 2024 Capchem Poland
sponsored and supported the Rescue and In 2024 Capchem Poland assisted the Polish National Fire Agency in acting as an agent for
fourth Capchem Cup football fire drills regional fire fighting units to carry out rescue and fire fighting exercise activities in high-risk
Football tournament which was held for high-risk facilities which optimized the evacuation process of the Company's employees while helping to
Tournament to support local football clubs facilities improve the level of emergency response to major security incidents in the local community and
"Capchem Cup" fully demonstrating the spirit of helping to safeguard the safety of local residents.in Poland the tournament "Energy Sports
and Nature" and effectively
promoting community
development. In 2024 Capchem USA continued to fund the EES (Excellence Award in Electrochemical Energy
The 4th "Capchem Cup" Football Tournament Promoting Storage) Award. Launched in 2021 and sponsored by Capchem USA the EES Award is presented
industry to outstanding scholars who have made significant and original contributions to the advancement
technology of research and development in the field of electrochemical energy storage with the goal of
research promoting electrochemical energy storage research advancing the energy transition and helping
the world achieve its carbon emission reduction and carbon neutrality goals.In October 2024 Capchem
Poland took an active part in the
Boris Charity Run demonstrating
Boris Charity corporate responsibility and Active In June 2024 Capchem was invited to participate in the SelectUSA Investment Summit 2024 and
Run commitment. The funds raised participation conducted a panel discussion on the topic of "Chinese Enterprises Operating and Investing in the U.S.".from the event will be used for in industry Capchem shared and exchanged information on the industry status and the direction of enterprise
the treatment of sick children. communication development.Boris Charity Run Overseas community building activities carried out by Capchem during the Reporting Period
106 107About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Appendix Disclosure indicator Unit 2024
Total number of confirmed incidents in which contracts with business
partners were terminated or not renewed owing to corruption-related Case 0
ESG Quantitative Performance Table irregularities
Corruption cases Total number of incidents in which employees were dismissed or
disciplined as a result of corruption that were confirmed Case 0
Governance Data
Cases of public litigation against organizations or their employees
for acts of corruption during the Reporting Period Case 0
Corporate Governance
Disclosure indicator Unit 2024
Number of shareholder meetings / 6 Environmental Data13
Number of board meetings / 9
Number of audit committee meetings / 6 Combating Climate Change
Number of meetings
held Number of remuneration and appraisal committee meetings / 2
Disclosure indicator Unit 2024
Number of strategy and sustainable development committee
meetings / 5 Total greenhouse gas emissions
14 tCO2e 2878063.71
Greenhouse gas removals tCO e 68627.37
Number of supervisory board meetings / 8 2
Scope 1 greenhouse gas emissions (excluding Greenhouse gas removals) tCO2e 67378.19
Total number of directors Person 9
Scope 2 greenhouse gas emissions (excluding Greenhouse gas removals) tCO2e 307185.64
Number of directors Number of independent directors Person 3
Total greenhouse gas emissions (excluding
Number of female directors Person 1 greenhouse gas emissions) tCO2e 2572127.24
Number of investor receptions / 1 Purchased goods and services tCO2e 2455783.73
Investor Number of regular result presentations / 5
Scope 3 greenhouse gas Upstream transport and distribution tCO2e 54833.62
emissions (excluding
communication Number of investor interaction questions answered / 72 greenhouse gas emissions) Business travel tCO2e 697.26
Employee commuting tCO2e 3021.90
Response rate of investor interactions % 100
Downstream transport and distribution tCO2e 48551.32
Solid and liquid waste disposal tCO2e 9239.41Scope 1 and Scope 2 Greenhouse gas emission intensity（including Greenhouse tCO e / RMBAnti-Corruption and Operation Compliance 2Gas removals）15 10000 in revenue 0.39
Number of production sites that have been awarded the Green Factory / 2
Disclosure indicator Unit 2024
Total number of participants in anti-corruption training Person 4197
13 In 2024 we consolidate environmental data for Capchem Poland for the first time. However considering the differences in local laws and
Rate of employee enrollment in anti-corruption training12 % 100 regulations as well as the regulatory trends of each plant the data on greenhouse gases energy use and packaging material use does not
include Capchem Poland for the time being and we will continue to improve the accuracy and comparability of the data statistics in the future
Total hours of anti-corruption training Hours 2434 to enhance the quality of disclosure of information. Unless otherwise noted the statistical caliber of environmental performance includes
Shenzhen Capchem Huizhou Capchem Sanming Hexafluo Nantong Capchem Suzhou Novolyte Jingmen Capchem Jiangsu Hicomer
Signing rate of Commitment Letter of Integrity by employees % 100 Hunan Fluopont Tianjin Capchem Fujian Heptafluo Capchem Poland and Nantong Top .
14 Total GHG emissions include Scope 1 Scope 2 and Scope 3 GHG emissions and the types of gases emitted include carbon dioxide (CO2) methane (CH4)
nitrous oxide (N2O) and hydrofluorocarbons (HFCs); covering Shenzhen Capchem Huizhou Capchem Sanming Hexafluo Nantong Capchem Suzhou
Novolyte Jingmen Capchem Jiangsu Hicomer Hunan Fluopont Tianjin Capchem Fujian Heptafluo and Nantong Top. The calculation of Scope 1
2 and 3 greenhouse gas emissions refers to as the Guidelines for Accounting and Reporting Greenhouse Gas Emissions Other Industrial Enterprises
(Trial) published by the National Development and Reform Commission (NDRC) in 2015 and the 2006 IPCC Guidelines for National Greenhouse Gas
Inventories (2006 IPCC Guidelines) published by the Intergovernmental Panel on Climate Change (IPCC) .
12 The statistics here cover directors management and junior staff. 15 Increase in green house gas intensity per unit due to market price volatility.
108 109About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Optimizing The Energy Structure Disclosure indicator Unit 2024
Disclosure indicator Unit 2024 Total wastewater discharge Ton 601361.96
22
Total integrated energy consumption16 tec 101951.36 Total hazardous waste discharge Ton 11949.08Hazardous waste
Combined energy intensity17 tec / RMB 10000 in revenue 0.13 Hazardous waste intensity Ton/RMB 10000 in revenue 0.02
Natural gas m3 10175441.81 Total general waste discharge Ton 876.46
Direct energy consumption Diesel kg 90701.89 General waste Total recycling of general waste Ton 69.90
Gasoline kg 114088.61 General waste intensity Ton/RMB 10000 in revenue 0.001
Purchased steam GJ 1835115.35 Packaging material Recycling of packaging material
23 Ton 4531.8
Indirect energy consumption
Purchased electricity kWh 196278324.20 Resource and Ecological Conservation24
Clean energy consumption Consumption of purchased green electricity kWh 11207181.05
Financial investment in energy efficiency and technological improvements RMB million 5.25 Disclosure indicator Unit 2024
Total municipal water withdrawals Ton 1467917.30
Environmental Compliance Total water withdrawals Ton 1467917.30
Total water consumption Ton 866555.34
Disclosure indicator Unit 2024 Water consumption intensity Ton/ RMB 10000 in revenue 1.10
Investment in environmental protection RMB million 34.05 Reuse of reclaimed water Ton 363862.00
Environmental violations or administrative penalties for environmental protection / 0 Reuse rate of reclaimed water % 38
Number of environmental compliance trainings and activities
Environmental compliance conducted / 139
training and activities18
Total hours of environmental compliance training and activities Hours 12957 Social Data
Environmental emergency Environmental emergency drills / 135
response exercise19 Number of participants in environmental emergency drills Person-times 1137 Occupational Health and Safety25
The percentage of stable operating bases have obtained the ISO 14001 environmental
management system certification % 90.9 Disclosure indicator Unit 2024
Total investment in health and safety Ten thousand RMB 5545
Emissions and Waste20 Lost days due to work injuries Hours 1552
Total recordable occupational health and safety incidents26 / 20
Disclosure indicator Unit 2024 The total recordable incident rate (TRIR) 27 N/A 0.37
Total air pollutant emissions Ton 34.2821 Work-related fatalities / 0
VOCs Ton 11.50 Occupational disease cases / 0
Waste gas emissions PM Ton 4.08 Cumulative investment in work-related injury insurance and safety
NO Ton 16.30 production liability insurance
Ten thousand RMB 459.48
x
SO Ton 2.40 Personnel coverage of work-related injury insurance and safety production x liability insurance % 100
Proportion of operational production bases certified to the ISO 45001
16 % 72.7 Calculated with reference to the General Principles for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020) covering energy System
types including natural gas diesel gasoline purchased steam purchased electricity; statistical caliber including Shenzhen Capchem Huizhou
Capchem Sanming Hexafluo Nantong Capchem Suzhou Novolyte Jingmen Capchem Jiangsu Hicomer Hunan Fluopont Tianjin Capchem 22 The increase in the total amount of wastewater discharged was due to the commissioning of the Fujian Heptafluo Sewage Treatment Plant
Fujian Heptafluo and Nantong Top. which resulted in an increase in the amount discharged.
17 Increase in combined energy intensity per unit due to market price volatility. 23 T he amount of packaging materials recycled was the amount of stainless steel drums recycled by Sanming Hexafluo Nantong Capchem
18 The statistical caliber of environmental compliance training and activities includes Shenzhen Capchem Huizhou Capchem Sanming Hexafluo Fujian Heptafluo and Nantong Top during the Reporting Period.
Nantong Capchem Suzhou Novolyte Jingmen Capchem Jiangsu Hicomer Hunan Fluopont Tianjin Capchem Fujian Heptafluo and Nantong 24 The statistical calibre of resources and ecological protection includes Shenzhen Capchem Huizhou Capchem Sanming Hexafluo Nantong
Top. We conduct environmental training for employees at each of our operating locations in accordance with domestic and international Capchem Suzhou Novolyte Jingmen Capchem Jiangsu Hicomer Hunan Fluopont Tianjin Capchem Fujian Heptafluo Nantong Top and
regulatory requirements and the total number of environmental training sessions includes Capchem Poland but due to differences in Capchem Poland.The reuse rate of reclaimed water = the amount of reused reclaimed water / (total amount of reuse of reclaimed water + the
domestic and international regulations the statistics on the total number of training sessions do not yet fully cover Capchem Poland. total amount of wastewater discharged).
19 During the Reporting Period Capchem carried out a number of special activities to prevent leakage and the number of environmental emergency 25 The statistical scope includes Shenzhen headquarter and Huizhou Capchem Sanming Hexafluo Nantong Capchem Suzhou Novolyte
drills carried out increased compared with previous years. The statistical caliber includes Shenzhen Capchem Huizhou Capchem Sanming Hexafluo Jingmen Capchem Jiangsu Hicomer Hunan Fluopont Nantong Top Fujian Heptafluo Tianjin Capchem and Capchem Poland.Nantong Capchem Suzhou Novolyte Jingmen Capchem Jiangsu Hicomer Hunan Fluopont Tianjin Capchem Fujian Heptafluo and Nantong Top. 26 The recordable occupational health and safety incidents herein refer to the recordable injury incidents defined by the Occupational Safety and
20 The statistical caliber of emissions and waste includes Shenzhen Capchem Huizhou Capchem Sanming Hexafluo Nantong Capchem Suzhou Health Administration (OSHA).
Novolyte Jingmen Capchem Jiangsu Hicomer Hunan Fluopont Tianjin Capchem Fujian Heptafluo Capchem Poland and Nantong Top. 27 In accordance with occupational safety and health management requirements we conduct recordable injury statistics for incidents categorized
21 T he increase in air pollutants was mainly due to the commissioning of the incinerator in Fujian Heptafluo. into five levels of severity and measure our occupational health and safety management performance using the Total Recordable Incident Rate
(TRIR).
110 111About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Disclosure indicator Unit 2024 Disclosure indicator Unit 2024
Number of emergency drills Number of Times 544 Employee turnover
33
Number of safety training sessions Number of Times 565 Active turnover rate % 6
Total number of safety training28 Hours 118474
Talent Development and Incentive
Responsible Supply Chain29
Disclosure indicator Unit 2024
Disclosure indicator Unit 2024
Total number of suppliers / 2697 Total investment in training RMB million 1.1761
Number of suppliers from Chinese mainland / 2552 Total hours for employees training Hours 173145.99
Number of suppliers from Hong Kong Macao Taiwan regions and oversea suppliers / 145
Training hours per employee34 Hours/Person 41.25
30 Training per employee by
Male employees Hours/Person 41.72
Human Rights of Employees gender Female employees Hours/Person 39.74
Disclosure indicator Unit 2024 Executive management team (EMT) Hours/Person 84.67
Total number of employees Person 4197
New employees Person 669 Training per employee by rank
Other management (Basic-to-middle
level and middle-to-senior level) Hours/Person 45.41
Number of employees by Male employees Person 3202
gender Female employees Person 995 Frontline employees Hours/Person 40.65
30 below (excl.30) Person 965
Number of employees by Percentage of employees covered by training
35%100
age 30-50 Person 2947
50 above (excl.50) Person 285 employee promotion rate36 % 18.9
Executive management Team (EMT) Person 9
Percentage of employees accepting performance evaluation % 100
Number of employees by Other management (Basic-to-middle level and middle-to-senior
rank level) Person 453
Frontline employees Person 3735
Number of female China Person 4077
employees by nationality Overseas Person 120 Employee Rights Interests and Benefits
Percentage of female employees31 % 24
Board of directors (Shenzhen Capchem only) % 11 Disclosure of indicators Unit 2024
Executive management Team (EMT) % 22
Number of female Total investment in employee care RMB million 41.2074
employees by rank32 Other management (Basic-to-middle level and middle-to-senior
level) % 19 Employee social insurance coverage % 100
Frontline employees % 24 Percentage of employees entitled to variable performance-based pay % 100
28 W e conduct safety production and occupational health training for employees at all operational sites in reference to domestic and international
regulatory requirements. The total number of safety production and occupational health training sessions includes those conducted at Capchem
Poland. However due to differences in domestic and international regulations the total training hours have not yet fully encompassed those at 33 C alculation formula: active turnover rate = active turnover / [(number of employees at the beginning of the period + number of employees at
Capchem Poland. the end of the period) / 2] * 100%
29 D uring the Reporting Period the statistical scope of the total number of suppliers of the company was changed and the relevant data scope 34 C alculation formula: Number of training hours per employee = Total number of training hours for employees / Total number of employees in
was the suppliers that generated business and cooperation during the year. each category
30 T he figures here are the total number of full-time employees including Capchem Poland and Capchem Shenzhen. 35 C alculation formula: Percentage of employees trained in each category = (number of employees trained in each category/number of employees
31 C alculation formula: Percentage of female employees = (number of female employees/total number of employees in the respective in that category)*100%.
category)*100% 36 E mployee promotion rate: the proportion of full-time employees promoted by Capchem to all employees.
32 P ercentage = Female employees in the group / Total number of employees in the group
112 113About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Community Engagement Glossary
Disclosure indicator Unit 2024
Nouns Definitions
Total investment in social welfare RMB million 2.6137 ESG Environmental Social and Governance
Education donation RMB million 2.296 RBA Responsible Business Alliance
GDPR General Data Protection Regulation
Investment by charitable fields Support for disadvantaged groups RMB million 0.036
AD domain The core service component of the Windows Server operating system based on Active Directory (AD)
Others RMB million 0.2817 control technology provides centralized authentication permission management and resource access control
SRM Supplier Relationship Management a system and process for managing and optimizing relationships Total hours Hours 142 with suppliers to ensure sustainability and efficiency
Voluntary services
Total participants Person 430 SVHCs Substances of Very High Concern chemical substances that pose a high risk and harm to human health or the environment
PFAS Per-and polyfluoroalkyl substances organic compounds with a series of carbon chains where hydrogen atoms are replaced by fluorine atoms and they are characterized by a large number of C-F bonds
Innovation-driven
LIMS Laboratory Information Management System an information management system that combines database based information technology with laboratory management requirements
Disclosure indicator Unit 2024 MES Manufacturing Execution System a production information management system for the workshop execution layer of manufacturing enterprises
Total number of training sessions Number of Times 277
RDM Research and Development Management system a smart project management system that relies on the Advanced Product Quality Planning (APQP) project management process
R&D innovation training Training hours per employee Hours 37.93
China National Accreditation Service for Conformity Assessmentt a national accreditation body
Number of employees trained Person 116 CNAS established and authorized by the Certification and Accreditation Administration of China in accordance
with the provisions of the Certification and Accreditation Regulations of the People's Republic of China
Amount of R&D investment RMB100 million 4.24 Intellectual Property Management System Platform an integrated and digital system designed to
IPMS manage intellectual property rights comprehensively covering the entire lifecycle of intellectual
R&D investment R&D workforce Person 967 property including creation registration maintenance and enforcement
R&D investment as a percentage of total revenue % 5.41 SQE Supplier Quality Engineer
Business Continuity Management an integrated management process that enables organizations to
Cumulative number of filed and accepted patent BCM recognize potential crises and associated impacts and to develop response business and continuity
applications Items 1383 recovery plans
Cumulative number of domestic patent applications Items 993 Customer Relationship Management a strategy and set of tools designed to manage a company's CRM interactions with current and potential customers which involves using information technology to
Cumulative number of foreign invention patent organize automate and synchronize sales marketing customer service and technical support
applications Items 193 OA Office Automation the integration of various technologies and software applications to streamline and
Patent and trademark automate routine office tasks and processes
Applications Cumulative number of PCT international patent applications Items 197 System Applications and Products in Data Processing a set of enterprise resource management SAP software system which provides reference opinions for the solution of enterprise management
Cumulative number of domestic patent granted Items 446 problems and at the same time can make systematic planning for enterprise development
Advanced Product Quality Planning part of the quality management system a structured approach
Cumulative number of foreign invention patent granted Items 97 APQP used to determine and develop the steps required to ensure customer satisfaction with a product
Design Matrix A tool used in experimental design and statistical analysis to describe the combination method of Cumulative number of domestic and foreign registered Items 262 factors (variables) and their levels (values) in an experimenttrademark granted
DFMEA Design Failure Mode and Effect Analysis a systematic approach used to identify and evaluate potential
Number of patents for inventions applied to the main business Items 404 failure modes and their effects in the design phase
PFMEA Process Failure Mode and Effect Analysis a systematic approach used to identify and evaluate potential Total number of training sessions Number of Times 37 failure modes and their effects in the process phase
Intellectual property Training hours per employee Hours 5.24 Special training Characteristic The process of identifying and managing critical characteristics that have a significant impact on
Management product safety regulatory compliance functional performance or customer satisfactionNumber of employees trained Person 124
114 115About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Nouns Definitions Nouns Definitions
SPC Statistical Process Control it is a method of monitoring and controlling production processes through Empirical A method for visually identifying occupational disease hazards of evaluation objects based on relevant statistical analysis aiming to ensure process stability and produce products that meet quality standards judgment professional knowledge and practical work experience
Distributed Control System it is an automatic system used to monitor and control industrial production
DCS process which is used to monitor and control various parameters and equipment in the production Analogy
A method of analogy using occupational health testing monitoring and statistical analysis information
of the same or similar works that have been completed and put into operation
process in real time Enterprise Resource Planning an integrated software system that helps businesses manage various
PLC Programmable Logic Controller a ruggedized computer designed for use in industrial environments to ERP operations including finance supply chain manufacturing and human resources by centralizing data automate and control various processes and machines and processes to enhance efficiency and decision-making
Production Part Approval Process a standardized procedure used in the automotive and manufacturing OO Opportunity Owner
PPAP industries to ensure that production parts meet specified quality and performance requirements before SO Sales Owner
mass production begins
PO Product Owner
RoHS Restriction of Hazardous Substances
Trusted Information Security Assessment Exchange an assessment and exchange mechanism
Registration Evaluation Authorization and Restriction of Chemicals a European Union regulation TISAX for information security in the automotive industry developed by the German Association of the
REACH that aims to improve the protection of human health and the environment from the risks posed by Automotive Industry (VDA) and administered by the ENX Association
chemicals
ECOSIPTM Ethylene Oxide to Carbonate Solvents Integrated Process
QCC Quality Control Circle a team of employees who meet regularly to identify analyze and solve quality-related problems to improve quality GWP Global Warming Potential
TPM Total Productive Maintenance a comprehensive approach to maintaining and improving the integrity
FPI Fluorinated Polyimide a type of fluorinated chemical used in various industrial applications
of production and quality systems through proactive and preventive maintenance strategies
NO Nitrogen oxides a group of harmful gases that are primarily composed of nitric oxide (NO) and nitrogen x
MRB Material Review Board a committee responsible for reviewing and making decisions on non-conforming
dioxide (NO2)
materials or products SOx Sulfur oxides a group of compounds that includes sulfur dioxide (SO2) and sulfur trioxide (SO3)
EHS Environment、Health and Safety
PM Particulate Matter a mixture of solid particles and liquid droplets suspended in the air which can vary in
CSR Corporate Social Responsibility size and composition.GHS Globally Harmonized System of Classification and Labeling of Chemicals VOCs Volatile Organic Compounds a group of carbon-containing chemicals that easily evaporate at room temperature
TSCA-PBT Toxic Substances Control Act-Persistent Bioaccumulative and Toxic
Internal Circulation treatment technology a type of anaerobic wastewater treatment system that
POPs Persistent Organic Pollutants organic compounds that are resistant to environmental degradation can IC treatment enhances the efficiency of treating high-strength industrial wastewater by utilizing internal circulation to bioaccumulate and pose significant health and environmental risks technology improve mixing and mass transfer resulting in better removal of organic pollutants and the production
ECHA European Chemicals Agency the agency responsible for the implementation of the REACH regulation of biogasand other chemical-related regulations in the European Union Reverse Osmosis a water purification technology that uses a semipermeable membrane to remove
HS Hazardous Substances refer to substances that can cause harm or adverse effects on human health RO ions molecules and larger particles from water effectively producing purified water by applying ecological environment property etc. under certain conditions pressure to overcome osmotic pressure
PFOS Perfluorooctane Sulfonate a type of perfluorinated chemical known for its environmental persistence VUCA and toxicity characteristics Volatility Uncertainty Complexity and Ambiguity
PFOA Perfluorooctanoic Acid a type of perfluorinated chemical used in the production of non-stick coatings RTO Recovery Time Objectiveand other products known for its environmental persistence and toxicity Research Excellence Award in Electrochemical Energy Storage an award that recognizes and supports
SIS Safety Instrumented System a system designed to monitor safety-critical process variables and take EES Award mid-career scientists (10-20 years from their last degree) who have demonstrated excellence in research appropriate action to prevent or mitigate hazardous events in the field of electrochemical energy storage and are affiliated with the ACS Energy & Fuels Division
GDS Gas Detection System EMT Executive Management Team
MSDS Material Safety Data Sheet commonly known as the Chemical Safety Technical Specification and PCT Patent Cooperation Treatyinternationally referred to as the Chemical Safety Information Card. Ozone-Depleting Substances chemicals that contribute to the depletion of the stratospheric ozone
Process Safety Management a systematic approach to preventing or mitigating the consequences ODS layer leading to increased ultraviolet radiation reaching the Earth's surface
PSM of catastrophic releases of toxic reactive flammable or explosive chemicals and highly hazardous HAPs Hazardous air pollutants
substances in industrial processes
Total Recordable Incident Rate a metric used to measure the number of work-related injuries and
Hazard and Operability Analysis a systematic and structured method used to identify potential hazards TRIR illnesses that occur within a certain period. It is often used to assess the safety performance of a
HAZOP and operational issues in industrial processes and systems by examining deviations from design workplace
parameters
PSIC Process Safety Incidents Count
JSA Job Safety Analysis a procedure used to identify and mitigate hazards in specific job tasks by breaking down a job into steps and analyzing each step for potential hazards PSTIR Process Safety Total Incident Rate
A method of visualizing the occupational hazards that exist and arise in a company through a table of PSISR Process Safety Incident Severity RateTable lookup risk factors applicable to the chemical industry
116 117About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Indicators Index GRI Standards Disclosure Headings
2-5 External assurance Independent Assurance
The Shenzhen Stock Exchange Listed Company Self - Regulatory Supervision Guidelines No. 2-6 Activities value chains and other business relationships About Capchem
17 - Sustainable Development Report (Trial) indicators Index 2-7 Employees Human Rights of Employee
Responsible Supply Chain
2-8 Workers who are not employees
Contents Headings Contents Headings Occupational Health and Safety
2-9 Governance structure and composition ESG Management
The "Four Green" Concept Chapter on Win-Win
Article 20 Article 38
Responsible Operation Chapter 2-11 Chair of the highest governance body ESG ManagementCombating Climate Change
Role of the highest governance body in overseeing the
Article 21 Combating Climate Change Article 39 Community Contributions 2-12 management of impacts ESG Management
Article 22 Combating Climate Change Article 40 Community Contributions 2-13 Delegation of responsibility for managing impacts ESG Management
GRI 2: General
Article 23 Combating Climate Change Article 41 Innovation-driven Disclosure 2021 About Capchem
2-14 The role of the highest governance body in sustainability Combating Climate Change Article 42 Innovation-driven reporting Message From ChairmanArticle 24
ESG Quantitative Performance Table Article 43 N/A Governance
Combating Climate Change Article 44 Chapter on Win-Win 2-16 Communication of critical concerns ESG ManagementArticle 25
ESG Quantitative Performance Table Article 45 Responsible Supply Chain 2-18 Evaluation of the performance of the highest governance body ESG Management
Article 26 ESG Quantitative Performance Table Article 46 Responsible Supply Chain 2-22 Policy commitments ESG Management
Article 27 Combating Climate Change Article 47 Product Quality 2-27 Compliance with laws and regulations No major compliance penalties Article 28 The "Four Green" Concept during the Reporting PeriodArticle 48 Customer Service
Article 29 Resource and Ecological Protection 2-28 Membership associations Innovation-drivenCustomer Service
Article 30 Emissions and Waste Article 49 2-29 Approach to stakeholder engagement ESG ManagementInformation Security
Article 31 ESG Quantitative Performance Table 3-1 Process to determine material issues ESG ManagementHuman Rights of Empolyees GRI 3: Substantive 3-2 List of material issues ESG Management
Article 32 Resource and Ecological Protection Article 50 Employee Rights and Development issues 2021
Occupational Health and Safety 3-3 Management of material issues ESG ManagementArticle 33 Environmental Compliance Management
The "Four Green" Concept Article 51 Sustainable Governance Chapter 201-1 Direct economic value generated and distributed
2024 Quantitative Performance
Table
Article 34 GRI 201: Economic
Resource and Ecological Conservation ESG Management Performance 2016
Article 52 201-3 Defined benefit plan obligations and other retirement Employee Rights Interests and
Optimising the Energy Structure Responsible Supply Chain plans Benefits
Article 35
ESG Quantitative Performance Table Article 53 ESG Management GRI 203: Indirect 203-1 Infrastructure investments and services supported Community Contributions
Economic Impacts 2016
Resource and Ecological Protection Article 54 Business Ethics 203-2 Significant indirect economic impacts Community Contributions
Article 36
ESG Quantitative Performance Table GRI 204: Procurement Article 55 Business Ethics Practices 2016 204-1 Proportion of spending on local suppliers Responsible Supply Chain
Article 37 Emissions and Waste Article 56 Business Ethics 205-1 Operations assessed for risks related to corruption Business Ethics
GRI 205: Anti-Corruption 205-2 Communication and training about anti-corruption 2016 policies and procedures Business Ethics
GRI Content Index 205-3 Confirmed incidents of corruption and actions taken Business Ethics
GRI 206: Undue
Competitive Behaviour 206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices During the Reporting Period None
Statement of use Capchem has reported the information cited in this GRI content index for the period 2024.1.1 to
2016
2024.12.31 with reference to the GRI Standards. 301-2 Recycled input materials used Emissions and WasteGRI 301: Materials 2016
GRI 1 used GRI 1: Foundations 2021 301-3 Reclaimed products and their packaging materials Emissions and Waste
302-1 Energy consumption within the organization Optimizing the Energy Structure
302-2 Energy consumption outside of the organization ESG Quantitative Performance
GRI Standards Disclosure Headings 302-3 Energy intensity Table
2-1 Organizational details GRI 302: Energy 2016 The "Four Green" Concept
Entities included in the organization's sustainability 302-4 Reduction of energy consumption 2024 Quantitative Performance
GRI 2: General 2-2 reporting About the Report Table
Disclosure 2021
2-3 Reporting Period frequency and contact point 302-5 Reductions in energy requirements of products and services The "Four Green" Concept
2-4 Restatements of information Not applicable
118 119About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
GRI Standards Disclosure Headings GRI Standards Disclosure Headings
303-1 Interaction between organisations and water as a shared GRI 406: Anti-resource Discrimination 2016 406-1 Incidents of discrimination and corrective actions taken Human Rights of Employee
GRI 303: Water 303-2 Management of water discharge-related impacts Resource and Ecological GRI 407: Freedom
Resources and Protection303-3 Water withdrawal of Association and Operations and suppliers in which the right to freedom of Wastewater 2018 2024 Quantitative Performance Collective Bargaining 407-1 association and collective bargaining may be at risk NA
303-4 Water discharge Table 2016
303-5 Water consumption GRI 408: Child labour 408-1 Operations and suppliers at significant risk for incidents of 2016 child labor NA
305-1 Direct (Scope 1) GHG emissions
GRI 409: Forced or
305-2 Energy indirect (Scope 2) GHG emissions Compulsory Labour 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor NA
305-4 GHG emissions intensity 2016Combating Climate Change
GRI 305: Emissions 2016 305-5 Reduction of GHG emissions 2024 Quantitative Performance GRI 411: Aboriginal 411-1 Incidents of violations involving rights of indigenous
Table Rights 2016 peoples
NA
305-6 Emissions of ozone-depleting substances (ODS)
413-1 Operations with local community engagement impact assessments and development programs Community Contributions
305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant GRI 413: Local air emissions Communities 2016
413-2 Operations with significant actual and potential negative
306-1 Waste generation and significant waste-related impacts impacts on local communities
NA
306-2 Management of significant waste-related impacts Emissions and Waste 414-1 New suppliers that were screened using social criteria Responsible Supply ChainGRI 414: Supplier Social
GRI 306: Waste 2020 306-3 Waste generated 2024 Quantitative Performance Assessment 2016 414-2 Negative social impacts in the supply chain and actions taken Responsible Supply Chain
306-4 Waste diverted from disposal Table
306-5 Waste directed to disposal 416-1 Assessment of the health and safety impacts of product
Product Quality
GRI 416: Client Health and service categories Chemical Safety
308-1 New suppliers that were screened using environmental and Safety 2016GRI 308: Supplier criteria 416-2 Incidents of non-compliance concerning the health and Product Quality
Environmental Responsible Supply Chain safety impacts of products and services
Assessment 2016 308-2 Negative environmental impacts in the supply chain and actions taken 417-1 Requirements for product and service information and labeling Customer Service
Talent Development and Incentive
401-1 New employee hires and employee turnover GRI 417: Marketing and 417-2 Incidents of non-compliance concerning product and 2024 Quantitative Performance Labelling 2016 service information and labeling NA
Table
GRI 401: Employment Incidents of non-compliance concerning marketing
2016 401-2 Benefits provided to full-time employees that are not Employee Rights Interests and
417-3 communications NA
provided to temporary or part-time employees Benefits
GRI 418: Customer 418-1 Substantiated complaints concerning breaches of Employee Rights Interests and Privacy 2016 customer privacy and losses of customer data Information Security401-3 Parental leave Benefits
403-1 Occupational health and safety management system Occupational Health and Safety
403-2 Hazard identification risk assessment and incident investigation Occupational Health and Safety
403-3 Occupational health services Occupational Health and Safety SASB Content Index
403-4 Worker participation consultation and communication on occupational health and safety Occupational Health and Safety
GRI 402: Labour 403-5 Worker training on occupational health and safety Occupational Health and Safety Topic Metric Topic Metric Code Headings
Relations 2016 403-6 Promotion of worker health Occupational Health and Safety Combating Climate
403-7 Prevention and mitigation of occupational health and
Gross global Scope 1 emissions percentage Change
safety impacts directly linked by business relationships Occupational Health and Safety covered under emissions-limiting regulations RT-CH-110a.1 ESG Quantitative
403-8 Workers covered by an occupational health and safety
Greenhouse Performance Table
management system Occupational Health and Safety Gas Emissions Discussion of long- and short-term strategy or
403-9 Work-related injuries Occupational Health and Safety plan to manage Scope 1 emissions emissions RT-CH-110a.2 Combating Climate
403-10 Work-related ill health Occupational Health and Safety reduction targets and an analysis of Change
performance against those targets
404-1 Average hours of training per year per employee Talent Development and Incentive
GRI 404: Training and 404-2 Programs for upgrading employee skills and transition
Air emissions of the following pollutants: (1) NOX Emissions and Waste
Education 2016 assistance programs
Talent Development and Incentive Air Quality (excluding N2O) (2) SOX (3) volatile organic compounds RT-CH-120a.1 ESG Quantitative
404-3 Percentage of employees receiving regular performance
(VOCs) and (4) hazardous air pollutants (HAPs) Performance Table
and career development reviews Talent Development and Incentive
GRI 405: Diversity and
Equal Opportunities 405-1 Diversity of governance bodies and employees Human Rights of Employee
2016
120 121About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Topic Metric Topic Metric Code Headings Independent Assurance
Combating Climate
Change
Energy (1) Total energy consumed (2) percentage grid
Management electricity (3) percentage renewable and (4) total self- RT-CH-130a.1
Optimising the Energy
generated energy Structure
ESG Quantitative
Performance Table
Resource and Ecological
(1) Total water withdrawn (2) total water consumed; Protection
percentage of each in regions with High or Extremely RT-CH-140a.1
High Baseline Water Stress ESG Quantitative Independent Assurance Statement
Water Performance Table
Management Number of incidents of non-compliance associated with
water quality permits standards and regulations RT-CH-140a.2 None
Description of water management risks and discussion Resource and Ecological Introduction
of strategies and practices to mitigate those risks RT-CH-140a.3 Protection TüV Rheinland (Shanghai) Co. Ltd. a member of TüV Rheinland Group (hereinafter "TüV Rheinland" or "We")
Hazardous Emissions and Waste was entrusted by Shenzhen Capchem Technology Co. Ltd. (hereinafter "Capchem" or the "Company") to conduct
Waste Amount of hazardous waste generated percentage RT-CH-150a.1 an independent third-party assurance of Capchem's 2024 Environmental Social and Governance Report (hereafter recycled ESG Quantitative the "Report" or "ESG Report"). The sustainability information disclosed in the report was for the financial year ended Management Performance Table December 31 2024.Community Discussion of engagement processes to manage risks
Relations and opportunities associated with community interests RT-CH-210a.1 Not applicable Responsibilities
Occupational Health and Capchem is not only responsible for the preparation of sustainability reports and the collection and submission of
(1) Total recordable incident rate (TRIR) and (2) fatality Safety sustainability information in accordance with applicable reporting standards but also has the obligation to implement
rate for (a) direct employees and (b) contract employees RT-CH-320a.1 and maintain effective internal control of information and data to support the report compilation process.Workforce ESG Quantitative Performance Table TüV Rheinland is a global service provider that provides CSR and sustainability services in more than 65 countries Health & Safety with experienced and technical expertise in the areas of environment CSR sustainability and stakeholder engagement.Description of efforts to assess monitor and reduce TüV Rheinland Assurance team follows the TüV Rheinland Global Business Ethics Compliance Policy and
exposure of employees and contract workers to long- RT-CH-320a.2 Occupational Health and Safety Procedures covering the principles of integrity compliance and conflict of interest. Therefore our assurance services term (chronic) health risks are guided by the principles of independence and impartiality. We are not involved in the writing and preparation of
The "Four Green" Concept Capchem's reports. It is the duty of TüV Rheinland to carry out independent assurance in accordance with the
Product Design assurance engagement agreement and the agreed scope of the assurance work and to make independent and impartial
for Use-phase Revenue from products designed for use-phase resource Combating Climate judgements.Efficiency efficiency
RT-CH-410a.1 Change
Responsible Supply Chain Assurance Standard
(1) Percentage of products that contain Globally The assurance work was undertaken in accordance with the AccountAbility AA1000 Assurance Standard (AA1000AS
Harmonised System of Classification and Labelling v3) the Type 1 and Moderate level for the sustainability information disclosed in the report.of Chemicals (GHS) Category 1 and 2 Health and
Safety & Environmental Hazardous Substances (2) percentage RT-CH-410b.1 Chemical Safety Assurance Objectives
Environmental of such products that have undergone a hazard
Stewardship of The purpose of the assurance engagement was to provide an independent verification perspective for Capchem's assessment
Chemicals management and stakeholders concerned about Capchem's sustainability information and performance on whether
Discussion of strategy to (1) manage chemicals the report adhered to the AA1000AP (2018) AccountAbility Principles including Inclusivity Materiality
of concern and (2) develop alternatives with reduced RT-CH-410b.2 Chemical Safety Responsiveness and Impact as well as the verification of sustainability information disclosure.human and/or environmental impact
Assurance Criteria
Genetically Percentage of products by revenue that contain
Modified genetically modified organisms RT-CH-410c.1 Not applicable The following assessment criteria were used in undertaking the work:
Organisms (GMOs) * Self-Regulatory Guidelines No. 17 for Listed Companies - Sustainability Report (Trial) of the Shenzhen
Stock Exchange
Management of
the Legal & Discussion of corporate positions related to government Environmental * IFRS 1 General Requirements for Disclosure of Sustainability-related Financial Information（IFRS S1）Regulatory regulations and/or policy proposals that address RT-CH-530a.1 Compliance Management * Sustainability Accounting Standards Board Standards (SASB Standards）
Environment environmental and social factors affecting the industry * Global Reporting Initiative (GRI) Standards of the Global Sustainability Standards Board (GSSB)
* Adherence to the AA1000 AP AccountAbility Principles i.e. Inclusivity Materiality Responsiveness and Impact
Operational Process Safety Incidents Count (PSIC) Process Safety
Safety Total Incident Rate (PSTIR) and Process RT-CH-540a.1 Occupational Health and Methodology
Emergency Safety Incident Severity Rate (PSISR) Safety
Preparedness & Our assurance activities and procedures include:
Response Number of transport incidents RT-CH-540a.2 None * Inquiring management and those personnel responsible for collecting and aggregating ESG performance
information to understand the management processes systems and controls for ESG performance
information.
1
122 123About the Report Message From Chairman About Capchem ESG Highlights in 2024 Governance Responsibility One-earth Win-win Appendix
Independent Assurance
* Reviewing and assessing the availability adequacy and relevance of performance information based on emissions) energy consumption pollutant emissions water use workplace injuries supply chain employee training
sampling principles. etc.) as well as targets and indicators for materiality issues and the achievement of targets to response stakeholders'
* Applying analysis program to assess the accuracy of the information available for performance data. concerns.* Collecting and examining the supporting evidence of available performance information to assess the extent Impact
to which the relevant evidence and information related to the scope of the assurance in the sustainability
report supports and adheres to the AA1000AP AccountAbility Principles. Evidence indicated that in 2024 Capchem's risk management types covered safety and environmental protection
product quality labour and employment intellectual property business ethics privacy protection and information
Limitations security etc. Each key functional department conducted risk classification and assessment for the above-mentioned risk areas and took relevant measures in combination with the internal control mechanism to control the risks related
TüV Rheinland planned and executed the verification in accordance with the scope of the assurance agreed upon in to its own operations and value chain business. The company released a carbon neutrality action plan.order to obtain all the information evidence and necessary explanations to provide the basis for the conclusion of the The report disclosed the results of the analysis of the impact risks and opportunities of material topics including the
assurance in accordance with the moderate level of AA1000AS v3. scope of impact the level of impact etc. Evidence showed that in 2024 Capchem identified climate physical and
The information and performance data relating to the assurance is limited to the disclosure of the contents of this transition risks and took countermeasures to reduce the climate impact of its own operations and supply chain in
report. Our assurance work did not include financial report and its financial data as well as other information not combination with methods such as supply chain business continuity analysis.related to the topic of sustainability.Conclusions
Based on the above assurance procedures and methodology performed and the evidence obtained we conclude that Daniel Pan
there are no instances or information that would be contrary to the following statements: Technical Manager of Corporate Sustainability Services
* Capchem's 2024 ESG Report and performance information are in adherence to the AA1000AP TüV Rheinland (Shanghai) Co. Ltd
AccountAbility Principles and align with the information disclosure requirements of Self-Regulatory Shanghai China March 4 2025
Guidelines No. 17 for Listed Companies - Sustainability Report (Trial) of the Shenzhen Stock Exchange.* Capchem has implemented processes to collect and aggregate performance information related to materiality
issues within the reporting boundary and management practices have shown that the company conducted
dual-materiality analysis and evaluation of issues.* The ESG-related information and performance disclosed in the report have been assessed and supported by
documentary evidence.TüV Rheinland shall not bear any liability or responsibility to a third party for perception and decision on Capchem
based on this Assurance Statement.Adherence to the AA1000AP AccountAbility Principles
Inclusivity
Capchem's key stakeholders include investors regulators customers employees suppliers and partners the media as
well as communities and the public who are disproportionately affected by greenhouse gas emissions. The company
understood the opinions of stakeholders through meetings and interviews with key stakeholders in business activities
and sorted out and evaluated the impact materiality of ESG issues based on the characteristics of business operations
industry development trends and regulatory policy requirements (such as the disclosure guidelines of the Shenzhen
Stock Exchange).Materiality
The evidence showed that Capchem has implemented a materiality analysis process which included qualitative and
quantitative analysis to analyse the identified ESG issues from both impact materiality and financial materiality and
to incorporate expert opinions. The materiality matrix showed that topics that are both financially materiality and
impact materiality include occupational health and safety supply chain security climate change and environmental
compliance. The Board of Directors of the company reviewed and approved the results of the assessment of the issue
of dual materiality.Responsiveness
Capchem's communication channels with various stakeholders are diverse including investor research public
information disclosure customer service and customer visits supplier audits and training employee satisfaction
surveys whistleblowing and complaint mechanisms community welfare etc. Evidence showed that in 2024 Capchem
has built the "GROW" sustainability model and clarified the company's ESG strategy.The report disclosed data on key performance indicators (e.g. greenhouse gas emissions (including Scope 1 2 and 3
23
124 125Readers Feedback Form
Thank you for your time to read the 2024 Capchem ESG Report. In order to better provide valuable information to you and
other stakeholders and to enhance the capacity and performance of Capchem's ESG management we welcome your
comments and suggestions on the Report.
1.Which of the following categories of stakeholders do you belong to
□ Investors?□ Regulators?□ Customers?□ Employees?□ Suppliers?□ Industry?associations?□ External?experts?□ Media?□ Others
2.What is your overall satisfaction rating with the Capchem ESG Report
□ Very?Satisfied?□ Somewhat?Satisfied?□ Neither?Satisfied?nor?Dissatisfied?□ Somewhat?Dissatisfied?□ Very?Dissatisfied
3.What is your satisfaction rating with the performance of Capchem in environmental social and corporate development responsibility
Environmental responsibility:
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Social responsibility：
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Corporate governance responsibility:
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4.What is your satisfaction rating with the clarity accuracy and completeness of the ESG disclosures in the report
Clarity:
□ Very?Satisfied?□ Somewhat?Satisfied?□ Neither?Satisfied?nor?Dissatisfied?□ Somewhat?Dissatisfied?□ Very?Dissatisfied
Accuracy:
□ Very?Satisfied?□ Somewhat?Satisfied?□ Neither?Satisfied?nor?Dissatisfied?□ Somewhat?Dissatisfied?□ Very?Dissatisfied
Completeness:
□ Very?Satisfied?□ Somewhat?Satisfied?□ Neither?Satisfied?nor?Dissatisfied?□ Somewhat?Dissatisfied?□ Very?Dissatisfied
5.What is your satisfaction rating with the content arrangements and design of the Report
□ Very?Satisfied?□ Somewhat?Satisfied?□ Neither?Satisfied?nor?Dissatisfied?□ Somewhat?Dissatisfied?□ Very?Dissatisfied
6. Other comments and suggestions:
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