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金三江:2024年度环境、社会及管治(ESG)报告(英文版)

深圳证券交易所 03-31 00:00 查看全文

金三江 --%

Stock Code:301059

2024

Environmental Social and

Governance Report

Jinsanjiang (Zhaoqing)Silicon Material Co. Ltd

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89 90 91 92 93 94 95 96 97 98 99 100Contents

About the Report 01

Message from the Chairman 03

About JSJ 05

Special Topic 13

Appendix 91

0102030405

Refining Governance Empowerment through Green development Care for Employees Reciprocal Benefit and

Crafting a New Vision Digital Intelligence Shoulder the New Cohesion of New Shared Prosperity

of Growth Innovation Leading a Mission Talents Creating a Better New

New Future Life Together

Improving Corporate 19 Customer-Centric 33 Implementing Green 57 Protect the Rights and Interests 69 Responsible Supply 83

Governance Service Operations of Employees Chain

Implementation of Sustainable 21 Deepening R&D 37 Building Green 62 Create a Growth 72 Achieve Common 87

Development Innovation Factories Platform Development

Strict Control of Compliance 26 Leading Intelligent 43 Adherence to Green 65 Enhance Humanitarian 78

Risk Manufacturing Development Care

Upholding Business 27 Ensuring Safe 47 Guarding Health and 80

Ethics Production Safety

Protection of Information 29 Crafting Excellence 50

Security in Quality

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89 90 91 92 93 94 95 96 97 98 99 100ENVIRONMENTALSOCIAL AND

About the Report 2024 GOVERNANCE(ESG) REPORT

About the Report

Introduction Information Source

Jinsanjiang (Zhaoqing) Silicon Material Co. Ltd. (hereinafter referred to as "JSJ" "the Company" The statistics and cases in the report are mainly derived from the Company’ s official documents

or "We") is pleased to release the 2024 Environmental Social and Governance (ESG) Report statistical reports and relevant public documents. The Company undertakes that there is no false

("the report") aiming to provide stakeholders with information on JSJ's practices and record or misleading statement in the report and bears responsibility for the truthfulness accuracy

performance in ESG aspects. and completeness of its content. This report was considered and adopted by the Board of Directors on

03/28/2025.

Basis of Preparation

Access to the Report

The report draws on the GRI Sustainability Reporting Standards (GRI Standards) of the Global

Sustainability Standards Board and the United Nations Sustainable Development Goals (UN The report can be viewed and downloaded on the official website of SZSE (www.szse.cn) the

SDGs). At the same time it is compiled in accordance with three guidelines of the Shenzhen Company's website (https://www.gz-silica.com)and CNINFO (http://www.cninfo.com.cn).Stock Exchange (SZSE) i.e. the Shenzhen Stock Exchange Social Responsibility Instructions to For further inquiries or any questions or suggestions regarding the report please contact the Company

Listed Companies the Rules Governing the Listing of Shares on the ChiNext Market of via email at ir@jsjgcl.com.Shenzhen Stock Exchange and the Shenzhen Stock Exchange Guideline No.2 on

Self-Regulation of Listed Companies on the ChiNext Board.Reporting Period

The report covers the period from January 1 2024 to December 31 2024. To

enhance comparability of the report and provide forward-looking information

the reporting period of some content is moderately extended.

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89 90 91 92 93 94 95 96 97 98 99 100ENVIRONMENTALSOCIAL AND

Message from the Chairman 2024 GOVERNANCE(ESG) REPORT

Message from the Chairman

2024 marked a year of rapid business growth and a significant move toward high?quality development for JSJ. We have consistently upheld a customer?oriented philosophy while steadily advancing its "global

development"strategy. At the same time we have continuously strengthened our risk management and internal control systems to support our high?quality development objectives. Over 21 years of dedicated effort

we have refined our governance framework by comprehensively planning implementing supervising and reviewing our ESG initiatives. This year our achievements in the areas of Environment Social and

Governance (ESG) have been widely recognized as evidenced by our receipt of the"2024 Light Industry Corporate Social Responsibility Rating: AAAA"and our ranking among the "Top 100 Innovative Enterprises (2nd

Edition) 2024".Strengthening Foundations and Optimizing ESG Committed to Green Transition to Fulfill the Dual package to share the rewards of our growth with our workforce.Governance Carbon Mission Moreover we have developed a wide array of training programs

designed to help employees realize their full potential and achieve

Optimizing ESG governance is the cornerstone of high?quality Environmental protection is a key objective of high?quality

personal growth.development. In 2024 we have established a dedicated ESG development. In terms of energy conservation and emissions

Committee under the Board building an integrated reduction we have actively installed distributed photovoltaic

governance framework that encompasses strategic decision? systems and optimized our power resource allocation. In clean Putting Responsibility First to Build a Harmonious Future

making execution and supervision and risk prevention. production we have continuously upgraded our wastewater

Simultaneously we continuously improved our risk treatment systems implemented stringent emissions Promoting a culture of responsibility is essential for building a

management systems reinforced internal audits and oversight monitoring and developed recycling processes for waste harmonious future. At JSJ we prioritize the development of our

and actively conducted compliance training to safeguard our residue to reduce discharges. To address climate change we suppliers. In 2024 we optimized our supplier management system

development. In our interactions with the capital markets we have conducted comprehensive risk and opportunity by integrating sustainability requirements into our procurement

strictly adhere to information disclosure standards and have assessments and formulated strategies to enhance our climate processes. We conduct comprehensive evaluations of key factors—

established a transparent operational model. resilience. Additionally we are actively developing green including product quality environmental compliance and delivery

factories—embedding eco?friendly practices throughout capabilities—and perform regular on?site audits at supplier

production and downstream transportation—to maximize facilities to help enhance their sustainability practices. At the same

Sticking to Digital Transformation to Ignite Innovation environmental benefits. time we actively engage in public welfare initiatives giving back to

society through tangible actions and contributing to the

Innovation is the primary driver of high?quality development. In

harmonious development of our community.

2024 we deepened our commitment to the principle of

Embracing a People-Oriented Approach to Unite“digitizing all business processes and transforming data intoTalent for Growthactionable insights” by launching three core projects—the Reflecting on 2024 JSJ has fortified its development foundation

Traditional Systems Optimization Project the Intelligent Our employees are our most valuable strategic asset. Adhering through robust ESG governance. Looking ahead to 2025 we will

Platform Construction Project and the Digital Talent to a people?first principle we continually optimize our continue to deepen our dual?engine strategy—leveraging mature

Cultivation Project—thereby significantly enhancing the digital comprehensive talent management system—from recruitment corporate governance to build a sustainable organization and

capabilities of our production R&D sales and operations. In and selection through development to retention—and harnessing digital transformation to unlock our growth potential.production our MES system has enabled lean manufacturing continuously strengthen our talent capabilities. To foster an JSJ remains committed to a green development path continuously

to reduce resource waste; in R&D our PLM system has inclusive and equitable work environment we have made delivering high?quality products to our customers inspiring positive

empowered our research efforts and boosted product diversity and equality an integral part of our corporate culture societal momentum and actively fulfilling our mission to drive

development efficiency; in sales our CRM system has providing a platform for employees of all nationalities ages sustainable social development.optimized service delivery to elevate customer satisfaction; and genders to showcase their talents. In addition we have

and in operations our OA and SAP systems have streamlined established a robust incentive system and a generous benefits

work processes. Chairman

Zhao Guofa

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89 90 91 92 93 94 95 96 97 98 99 1002024 ENVIRONMENTALSOCIAL ANDAbout JSJ GOVERNANCE(ESG) REPORT

About JSJ

Company Profile

Jinsanjiang (Zhaoqing) Silicon Materials Co. Ltd. established in 2003 successfully went public in 2021 (stock code: 301059). It is a customer-centric and innovation-driven provider of functional silica solutions. Jinsanjiang is dedicated to "becoming a global leader in silicon

materials" focusing on the research development production and sales of precipitated silica.Research and Innovation

Jinsanjiang places great importance on product innovation research and development as well as the optimization of process technology. Through continuous investment and innovation it has established a research and development team consisting of doctors masters and

technical experts. The company has set up a 4700 ㎡ high-standard research and development center equipped with a series of advanced R&D equipment ensuring its technical leadership in the industry. The company has been honored with titles such as "Provincial Enterprise

Technology Center" "Guangdong Functional Silica Engineering Technology Research Center" "Guangdong Demonstration Enterprise for the Promotion and Application of Innovative Methods" and "National Specialized and New 'Little Giant' Enterprise."

Lean Production

Jinsanjiang has two major production bases one of which is the intelligent factory (Factory Two) covering an area of 68000 ㎡ . It was completed in 2022 and officially put into production in 2023. The intelligent factory (Factory Two) is designed according to the standards of

informatization intelligence digitalization and greenification. It has established an intelligent production line with a DCS (distributed control system) as the brain high-precision instruments as the senses high-performance production equipment as the main body and a digital

system as the core. At the same time the company is equipped with green facilities such as distributed photovoltaics online wastewater and exhaust gas detection zero solid waste emissions steam and gas recovery and drying waste heat recovery embracing sustainable

development. In 2024 the company was awarded the title of "National Green Factory."

Global Sales

The company continues to develop domestic and overseas customers creating value for the world with high-quality products. Domestically the company will deepen strategic partnerships with core customers raising the level of cooperation to new heights. Overseas after

establishing subsidiaries in Hong Kong China the United States Poland and Mexico the company has set up an overseas team responsible for overseas market development. In 2024 the company accelerated the construction of its overseas supply chain formulated overseas

delivery solutions and improved its ability to serve global customers.Over the past twenty-one years the company has focused on the silica business adhering to the strategy of "global development" and "high-quality development" to create a healthy corporate ecosystem. In the future the company will continue to provide customized silicon

materials to customers in industries such as toothpaste food and pharmaceuticals silicone rubber antistatic agents and storage batteries offering silica solutions that exceed expectations and create value for customers.

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89 90 91 92 93 94 95 96 97 98 99 1002024 ENVIRONMENTALSOCIAL ANDDevelopment History GOVERNANCE(ESG) REPORT

Development History

JSJ was established in 2003 and after 21 years of development has become a global leader in the supply of precipitated silica. It was officially listed on the ChiNext board of the Shenzhen Stock Exchange on September 122021.

200320042007201020122013

Company established First production line completed First ISO9001 quality management system First ISO14001 environmental management First "Guangdong Province Clean Production First "National High-tech

certification; system certification Enterprise Certification" Enterprise Certification"

successfully developed and put into production

colored friction particles

20192018201720162014

Successful corporate share reform first awarded First Kosher Jewish certification Automation upgrade of the second line First intellectual property management Awarded "Guangdong Functional

"Guangdong Province Intellectual Property EU REACH certification in Factory One completed system certification Silica Engineering Technology

Demonstration Enterprise" and "National Intellectual Research Center"

Property Advantage Enterprise"

20202021202220232024

First natural certification First ISO 22000 food safety Intelligent Factory (Factory Two) completed; Intelligent Factory (Factory Two) officially put into Awarded National Specialized and New

management system certification awarded "The 23rd China Patent Excellence Award" production; obtained ISO 50001 energy "Little Giant" Enterprise National Green Factory

and "Provincial Enterprise Technology Center" with management system certification; received the and Guangdong Provincial Green Factory

multiple products recognized as "2021 Guangdong laboratory accreditation certificate from the China

Famous and Excellent High-tech Products" National Accreditation Service for Conformity

Assessment (CNAS certification); titled "Guangdong

Provincial Model and Craftsman Talent Innovation Studio"

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2024 ENVIRONMENTALSOCIAL ANDESG Performance and Honors GOVERNANCE(ESG) REPORT

ESG Performance and Honors

Economic Social

385.5495 million yuan 730.85 million yuan 60.5893 million yuan 100% 100% 4003 Hours

Operating revenue Total profit The coverage rate of The staff training The total training hours Total assets social insurance coverage rate for employees

Environmental 19.35% 46200 Yuan

The training hours for employees The cumulative amount of donations

have increased compared to 2023 over the past three years

20%12%

The intensity of hazardous waste discharge The intensity of water resource use has decreased 2 Items 1 Item 2 Items

has decreased compared to 2023 compared to 2023

Take the lead in drafting the Publish paper through industry- Industry-academia-research

formulation of silica-related standards university-research cooperation cooperation patents

Social

Honors and Awards

17.8169million yuan 50 Persons 134 Items National Intellectual Property High-Tech Innovative Small and

R&D Investment Total R&D Accumulated Superior Enterprise Enterprise Medium-Sized Enterprise

amount personnel patent authorizations

Guangdong Province "High-Purity Nanoscale Silicon Dioxide Guangdong Province Demonstration

Green Factory Preparation Technology" Scientific and Enterprise for the Promotion and

Technological Achievement Certificate Application of Innovative Methods

100% 150 Items

Guangdong Province Advanced Unit in the Industry's Selected as a "Leader" in China's Light

The business scope covered by the Accumulated Clean Production Enterprise High-Quality Development Industry Digital Transformation

company's ISO 9001 quality management system certification intellectual property rights Case for 2024

Council Member Unit of the 3rd "Outstanding Member Unit" of "Ray of Hope" Top 100

Guangdong Province Clean the Guangdong Province Clean Innovative Enterprises

13 Times 374 Persons 100% Production Association Production Association in 2024

The number of safety Employees participating The rate of occupational Zhaoqing City Top 50 Enterprises Zhaoqing High-Tech Industrial

training sessions in the safety training. health check-ups in Science and Technology Innovation for 2023 Zone Quality Award

0 Person 0 Number 100%

The number of deaths due to The number of safety The signing rate of

work-related accidents production accidents labor contracts

Governance

91 Times 4 Times 87 Times 16.7%

Total Regular Interim The proportion of female members

announcements reports announcements on the board of directors

Honor Wall (partial honors)

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2024 ENVIRONMENTALSOCIAL ANDSustainable Development Goals (SDGs) Response GOVERNANCE(ESG) REPORT

Sustainable Development Goals (SDGs) Response

Corresponding Chapter UN SDGs UN SDGs Response

We continuously strengthen corporate governance systems enhance risk

Refining Governance resilience and establish a robust ESG governance framework. Upholding high

Crafting a New Vision of Growth standards of business ethics we prioritize data security and privacy protection

to create long-term value for all stakeholders.Empowerment through Digital

Intelligence Innovation Leading a We prioritize customer relationship management deepen R&D innovation and

New Future pursue digital and intelligent transformation to deliver high-quality products.Our goal is to achieve green and low-carbon operations actively address

Green development Shoulder climate change and integrate environmental protection principles into product

the New Mission development creating ecological benefits across our value chain.We value every employee adhere to equal employment practices and protect

Care for Employees Cohesion labour rights while enhancing employee welfare. Through continuous training

of New Talents and development programs we foster shared growth and unlock potential.We focus on sustainable supply chain operations practice responsible

Reciprocal Benefit and Shared procurement and mitigate risks. We actively contribute to industry development

Prosperity Creating a Better New and engage in social welfare initiatives fulfilling our corporate social

Life Together responsibility (CSR) commitments.

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2024 ENVIRONMENTALSOCIAL ANDSpecial Topic GOVERNANCE(ESG) REPORT

Special Topic Cultural Upgrading · Consensus and Co-creation for a New Chapter

2024 marked the beginning year for Jinsanjiang to fully implement corporate culture as well as a crucial year for the company to step into high-quality development.

The company uses the "Corporate Culture Handbook" as a vehicle to refine its corporate values interprets the corporate culture with vivid cases strengthens the

employees' sense of identity and belonging and lays the foundation for the efficient operation of the company.Cultural Philosophy

Upgrade Refreshing Cultural Genetics to Drive Organizational Evolution Cultural Promotion Ambassador Cultural Practice Reward Creation of cultural atmosphere

In 2024 Jinsanjiang upgraded its cultural philosophy of "customer-centric innovation-driven long-term hard work

The company is cultivating a Employees who demonstrate The company pays attention to

and self-criticism" and launched the "Corporate Culture Handbook" (hereinafter referred to as the "Culture team of professional cultural excellence in practicing the physical and mental health

Handbook") for the first time. The "Culture Handbook" elaborates on "What is the company What is it not What ambassadors who serve as an corporate culture will be given of its employees providing

does it do What does it not do" through the sections of Concept Management and Employees. It strengthens the important force in promoting the cash rewards to encourage more facilities such as gyms and

company's core values and provides a standard for employee behavior. implementation of corporate employees to actively engage in lounges to offer them a place

culture. These cultural the corporate culture. For to relax. By creating a positive

ambassadors come from various employees who are not doing and upward work environment

departments within the well in practicing the corporate employees are encouraged to

company possessing rich work culture timely communication practice the corporate culture

experience and excellent and guidance will be provided to in a pleasant atmosphere.communication skills. help them improve.Our Vision Our Mission Our Value

Become a global leader in Customized silicon materials Customer-centric Value-based stories

silicon materials

Create value for customers Driven by innovation

Realize the dreams of employees Long-term hard work

Contribute to society Insist on self-criticism Customer-centric Over-investing in resources to address customer needs

In a certain year the company onboarded a startup client. The client's business was in its initial stage with

scattered production areas low demand for silica but a wide variety of product models making delivery

times and costs difficult to control. Faced with the dilemma of meeting customer needs and managing

Cultural Practice

Achievements Consolidating the Cultural Core Unleashing Organizational Vitality production costs the company adhered to a customer-centric approach investing additional resources to

develop a new logistics company solving the delivery challenge for the client. The company fully supported

the client's development helping them overcome difficulties and achieve performance growth which was

highly recognized by the client. Currently the company has become an important strategic partner of the

Corporate culture training Corporate culture promotion Cultural theme activities client establishing a long-term cooperative relationship between the two parties.Adhere to

New employees are the fresh Create a prominent cultural The company regularly Optimization of management trainee training to assist in enterprise growth

blood of the company and promotion area within the organizes various corporate

self-criticism

onboarding training is the first company's office space such as cultural theme activities such

step for employees to get in cultural walls and bulletin boards as Spring Festival and The first talent cultivation program for management trainees at Jinsanjiang faced difficulties in

touch with the corporate to display the company's core Mid-Autumn Festival events

values mission and vision team integrating corporate culture implementation. The company actively confronted its shortcomings and courageously engaged in culture. The company

spirit and stories of outstanding into specific activities so that self-criticism. The Human Resources Center took on the responsibility for the improvement and execution introduces its history core

values mission and vision to employees. To enhance the employees can deeply

tracking of the management trainee program ensuring that the first batch of trainees enhanced their

promotional effect the company experience and practice the professional abilities through systematic training fostering a positive interaction between personal growth the employees through the

cultural training for new hires. encourages employees to actively corporate culture. and the company's development.contribute such as sharing their

understanding of the company

culture and stories of

implementation.

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2024 ENVIRONMENTALSOCIAL ANDSpecial Topic GOVERNANCE(ESG) REPORT

Case Ceremony Honoring the Practice of Cultural Values As a part of society it is the indispensable mission of a company to undertake social

responsibilities and promote sustainable development.To deepen the practice of the company's cultural values and implement them in the behavior of employees the First the company advocates green office practices internally such as conserving energy

company launched a monthly "Outstanding Representatives Selection for the Practice of Cultural Values and reducing paper waste and promoting recyclable materials to create an environmentally

friendly atmosphere.Behavioral Performance" activity.Second the company actively participates in public welfare activities such as poverty

Enhance the concept alleviation education environmental protection and other charitable initiatives. The

of sustainable company plans to establish a volunteer team to organize employees to participate in public

development welfare activities contributing to society.Third the company focuses on sustainable development in its business operations such as

optimizing supply chain management and promoting green production to achieve a win-win

situation for both economic and environmental benefits."Customer-centricity" is the foundation of the company's development and the company

has embedded a customer-oriented culture into its corporate values.Cultural Values Practice First the company continuously improves its customer feedback mechanism by collecting

customer opinions through various channels and dealing with them in a timely manner

applying customer needs to the improvement of products and services.Deepen the Second strengthen the training of sales center staff to enhance their service awareness and

customer-oriented capabilities. The training content includes communication skills problem-solving abilities

Cultural heritage and customer relationship management.and development Conveying the essence of culture stimulating new energy within organizations culture

Third the company actively promotes excellent customer service experience and improves

Corporate culture serves as the "endogenous gravity" for a company's development and is the source that propels the overall service level.continuous progress within the enterprise. With the rapid development of the social economy and the constant

changes in the humanistic environment the company's cultural philosophy is also keeping pace with the times The digital transformation of a company is not only a key to technological upgrade but

continuously enriching its connotations and extensions. In the process of cultural heritage and development. The also an important means to enhance the vitality of corporate culture.company adheres to the following principles.:

First The company has deepened its digital strategy by incorporating cultural upgrade into

its digital KPIs.First the company will produce corporate culture promotional materials such as posters

videos brochures etc. presenting the core values in a vivid manner. These cultural Second The company actively cultivates its employees' digital skills encourages innovation

promotional materials should be placed in conspicuous locations such as office areas Promoting the and experimentation and fosters a cultural atmosphere that supports digital exploration.canteens elevator lobbies etc. allowing employees to encounter them in their daily work. digital transformation Third the company will strengthen the culture of data security and privacy protection

Second enhance corporate culture training: For new employees incorporate corporate of culture ensuring compliance with relevant laws and regulations during the digital transformation

culture into the mandatory content of onboarding training; for current employees regularly process and protecting the data security of both the venture and its customers.organize in-depth corporate culture training sessions to help employees understand the

Enhance the corporate culture.spread of corporate

Third the company's senior management leads by example becoming practitioners and Focusing on the growth and well-being of employees is a significant manifestation of cultural concepts

promoters of the corporate culture. At the same time they encourage employees to share corporate culture.stories of implementing the corporate culture in their work creating a profound cultural First the company will continue to provide a variety of benefits for employees such as

atmosphere. health checks paid annual leave holiday benefits etc. focusing on the physical and mental

health and living needs of employees.Second the company formulates reasonable career development plans for employees

providing abundant training and promotion opportunities. In addition the company

Enhance the culture establishes an internal talent market allowing employees to fully develop within the

of employee care company.Third the company has established a mentorship program assigning mentors to guide new

employees in their work. Through the mentor's verbal instructions and personal example the

company's culture is passed down while also promoting communication and integration

between new and veteran employees.

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ENVIRONMENTALSOCIAL AND

Refining Governance Crafting a New Vision of Growth 2024 GOVERNANCE(ESG) REPORT

01

Refining Governance

Crafting a New Vision of Growth

Our Actions

*Improving Corporate Governance

*Implementation of Sustainable Development

*Strict Control of Compliance Risk

*Upholding Business Ethics

*Protection of Information Security

Our Performance

91 Times 4 Times 87 Times

Total Regular Interim

announcements reports announcements

16.7%

The proportion of female members

on the board of directors

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ENVIRONMENTALSOCIAL AND

Improving Corporate Governance 2024 GOVERNANCE(ESG) REPORT

Improving Corporate Governance

JSJ strictly adheres to the Company Law of the People's Republic of China the Securities Law of the People's Republic

of China the Regulations on the Governance of Listed Companies the Rules Governing the Listing of Shares on the Board Diversity

ChiNext Market of Shenzhen Stock Exchange and the Guidelines for the Standardized Operation of Listed Companies

on the ChiNext Market of Shenzhen Stock Exchange and other laws regulations and normative documents. It JSJ considers board diversity as a key element for the company's sustainable development. The board of directors

improves the company's governance structure maintains a diversified board of directors and protects the rights and undergoes a re-election every three years and the nomination of directors must go through a strict selection process

interests of investors. incorporating a variety of factors such as industry experience professional skills educational background cultural

background age and gender into the board election criteria.The board members of JSJ possess industry experience in areas such as silicon dioxide and toothpaste as well as

Governance Structure professional skills in corporate management finance investment management etc. enabling them to exchange diverse

viewpoints effectively and assist the company in broadening its horizons and making optimal strategic decisions.JSJ has a mature governance structure where the shareholders' meeting board of directors and the supervisory

board (hereinafter collectively referred to as the "three meetings") each perform their duties with a high degree of

collaboration achieving a governance structure that includes decision-making execution and supervision. To ensure

the operation of the "three meetings" the company has formulated the "Three Meetings Operation Manual" which 2 Persons 4 Persons 16.7 %

clearly stipulates the requirements processes and related meeting documents for the convening of the three Independent directors Non-independent directors The proportion of female members

meetings improving the efficiency and compliance of the company's three meetings. on the board of directors

1 Time 5 Times 6 Times

Total of general meeting of Total of board Total of Supervisors' Investor Rights Protection

shareholders was held meetings were held meetings were held during

during the year during the year the year

Information Disclosure

JSJ focuses on investor rights protection and strictly adheres to relevant laws and regulations such as the Management

Measures for Information Disclosure of Listed Companies to fulfill its information disclosure obligations. The company

Shareholders and Shareholders' Meetings primarily discloses information such as company announcements financial indicators company policies periodic

reports and company profiles to investors through the Juchao Information Network (http://www.cninfo.com.cn/).JSJ strictly follows the Company Law of the People's Republic of China the Articles of Association the Shareholders'

Additionally the disclosed information will also be published in Securities Times China Securities Journal Securities

Meeting Rules and other laws regulations and internal normative documents. It strictly standardizes the processes

Daily and Shanghai Securities News. During the reporting period the company has disclosed a total of 91

for convening holding and voting at shareholders' meetings ensuring that all shareholders have equal status and

announcements including 4 regular reports and 87 temporary announcements.rights. During the reporting period the company's shareholders' meetings were properly witnessed by external

lawyers and conducted in accordance with relevant regulations combining on-site and online voting to facilitate the Juchao Information Network

participation of small and medium shareholders fully safeguarding their rights and ensuring their equal position in

company decision-making.Directors and the Board of Directors

The company's board of directors includes an Audit Committee a Strategy Committee a Nomination Committee and Shanghai Official Information DisclosureSecurities News Channel of Shenzhen Stock Exchange

a Remuneration and Assessment Committee. Each committee works in concert responsible for the company's finance

and auditing strategic decision-making nominations remuneration assessment and ESG management according to

the "Articles of Association" guiding the company's stable operations from different perspectives. Main Information

Disclosure

Channels

Supervisors and the Supervisory Board

The company's supervisory board consists of 3 supervisors including 1 employee supervisor meeting the Securities Daily Securities Times

requirements of the "Company Law of the People's Republic of China" and the "Articles of Association" and other

corresponding laws and regulations. During the reporting period the company's supervisors diligently performed their

duties to inspect and supervise the company's financial status as well as the performance of directors and senior

management personnel attended shareholders' meetings on time participated in board meetings and held China Securities Journal

supervisory meetings as required by regulations actively safeguarding the legitimate rights and interests of the

company and shareholders ensuring the company's stable operation.Rich and Various Information Disclosure Channels

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ENVIRONMENTALSOCIAL AND

Implementation of Sustainable Development 2024 GOVERNANCE(ESG) REPORT

Investor Relations

Governance

JSJ maintains good communication with investors. The Company fully understands the needs of investors through Layer Board of Directors

channels such as investor hotline investor mailbox and on-site reception and timely responds to investors' concerns

about the Company's operation status and development strategy. During the reporting period the Company carried

out a few investor reception activities including 2023 online annual results briefing 2024 online precincts collective Management ESG Compensationand Strategy Nomination AuditLayer Committee Assessment Committee Committee Committee Committee

reception day activities and outbound roadshow activities.ESG Task Force

Case Investor on-site reception Execution Supportparticipation

Layer

JSJ led investors to visit the Intelligent Factory (Plant 2) and introduced to them the company's development history Various Functional Departments

operation R&D innovation ESG achievements future layout etc. to improve the transparency of corporate

information enhance investor confidence and promote the integration of investor and corporate strategy.Board of Directors ESG Committee EESG Specialized Team and

Functional Departments

Responsible for reviewing and Develops ESG strategic plansresearches and makes recommendations on The ESG Specialized Team is making final decisions on proposals responsible for the preliminary

submitted by the ESG Committee sustainability policies and regulations. preparation of the ESG

including ESG-related objectives Identify ESG-related risks and Committee's decision-making

and materiality issues. opportunities guide management to providing relevant information of

Responsible for reviewing and formulate countermeasures and oversee the Company and submitting

signing off on the Company's the implementation of risk prevention formal proposals to the ESG

annual ESG report. and control mechanisms. Committee.Design ESG management system The ESG Task Force is responsible

management structure and working for promoting the implementation

Visiting investor reception mechanism regularly evaluate ESG of ESG objectives in relevant

performance and optimize strategic departments organizing training

objectives. and policy tracking.Review ESG reports and submit them to The ESG special team is

the Board of Directors and promote responsible for collecting and

Implementation of Sustainable Development effective communication among compiling ESG data and preparing stakeholders. ESG reports.The ESG Committee convenes meetings Each functional department is

to discuss and consider the proposals responsible for the implementation

JSJ believes that ESG is the cornerstone to support the high-quality development of enterprises. The Company submitted by the ESG Task Force of specific ESG projects and

continues to improve its ESG governance structure and management system and is committed to realizing the submits the results of the discussion to supports the work of the ESG team.the Board of Directors and provides

integration of sustainable development and the Company's performance growth. The Company actively accepts the feedback to the ESG Task Force.demands of all stakeholders and works together with many stakeholders to realize the “Net Zero Goal” . Supervise the achievement of the

company's ESG objectives and regularly

check the implementation of the

company's ESG policies and tasks.Sustainability Governance

JSJ's proposed ESG governance structure and responsibilities

JSJ attaches great importance to the impact of its business on the environment and takes the United Nations

Sustainable Development Goals (UN SDGs) as its program of action actively contributing to the sustainable

development of society and the environment.The Company plans to establish a three-tier ESG governance structure covering the corporate governance Stakeholder Communication

management and executive levels: with the Board of Directors as the highest decision-making level for ESG

governance the ESG Committee to coordinate the Company's ESG work and the ESG Specialized Group to JSJ communicates deeply with stakeholders through multiple channels such as on-site research interviews and

implement ESG implementation. By clarifying the division of responsibilities at each level the Company will ensure questionnaires listens to the specific issues and demands that stakeholders are practically concerned about in terms

the effective implementation of ESG management and provide a strong guarantee for the Company's sustainable of ESG and responds to them in a timely manner.development.

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ENVIRONMENTALSOCIAL AND

Implementation of Sustainable Development 2024 GOVERNANCE(ESG) REPORT

Stakeholder Main Communication Expectations and Communication and

Group Channels Demands Response Methods Analysis of Material Issues

Lawful and Compliant

Information Submission Lawful Operation Operation During the reporting year the Company collected identified and analyzed the issues of concern to various

Visits Tax Payment On-time and Full

Tax Payment stakeholders prioritized the issues by considering the degree of attention paid by various stakeholders to the ESG

Regulatory Bodies Reception Government Energy Saving and

Production of materiality issues and the actual situation of the Company's business development and constructed a matrix of key Government Departments -Enterprise Meetings Emission Reduction Green Products issues to guide the Company's ESG decision-making and actions.Shareholders' Meeting Investment Returns Business Growth

Performance Explanation Rights Protection Corporate Governance Identify ESG Issues Stakeholder Assessment Ranking of ESG issues Confirmation of results

Meeting Investor Activities Information Transparency Information Disclosure

Shareholders

and Investors Company Website Risk Control Internal Control Processes

Hotline Through best practices An online survey was Analyze the results of Verify the prioritization

and industry research an conducted to the stakeholder of issues with JSSC

initial set of key issues are understand the views of assessment conduct a management and

Product Quality

Hotline Quality Control identified and used as the stakeholders on the key preliminary materiality confirm and update the

Product Innovation

Email R&D Investment basis for the stakeholder ESG issues that should assessment and materiality matrix.Service assessment. be at the forefront of formulate the material

Customer Satisfaction Survey Customized Solutions

Rights Protection Customer Feedback Integrity JSSC's mindset. issues that JSJ should Customer Meetings

Business Ethics and Anti-Corruption give top priority to.Customers In-depth interviews with

Labour Rights Employee Well-Being representatives of

Environment Protection Green Operations selected stakeholder

groups to further gather

their views on ESG

Employee Activities Employee Rights Compliance Employment issues relevant to the

Company.General Manager Communication Email Career Development Employee Training and

Internal Meetings Salary Benefits Advancement Opportunities

Salary and Benefits

Employees WeChat Groups Health Safety

Safety

Process of identifying issues of importance on the JSJ Matrix

On-site Inspection Business Ethics Supplier Management System

Supplier Audit Product Quality and Safety On-site Factory Audit

Offline/Online Meetings Fair Bidding Project Procurement

Suppliers and

Partners Long-term Cooperation Supplier ESG Evaluation

In 2024 the Company identified a total of 21 ESG material issues including 7 highly material issues 13

Media Interviews Environmental Protection Green Products moderately material issues and 1 generally material issues.Public Information Corporate Social Responsibility Public Welfare Activities

Disclosure

Media Compliant Operation Corporate Governance

Public Information Disclosure Support for Social Welfare Public Welfare Activities

Community Activities Protection of Natural Green Products

Community and Public Environment

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ENVIRONMENTALSOCIAL AND

Strict Control of Compliance Risk 2024 GOVERNANCE(ESG) REPORT

Environment Social Governance 金三江2024年重要性议题矩阵

Strict Control of Compliance Risk

Product Quality

Green Operations and Safety

Technology Employee

Innovation and R&D Safety Internal Control Construction

Employee Care Emissions and Waste

Water Management Management JSJ considers a comprehensive risk management system as the cornerstone of the company's sustainable

Energy Management development. The company is continuously strengthening the construction of internal risk control enhancing the

Chemical Safety intensity of audit supervision and reducing compliance risks. According to the Notice on Further Strengthening the

Customer Benefits Management of Dormitories During the Normalization of Epidemic Prevention and Control listed companies on the

ChiNext Market of Shenzhen Stock Exchange and Beijing Stock Exchange should disclose internal control evaluation

Employee Rights

reports approved by the board of directors and internal control audit reports on financial reports issued by accounting

Employee firms starting from the annual report of 2024. To this end the company has optimized its Internal Audit Management

Climate Change

Biodiversity Development System and updated internal control rules.Business Ethics Diversity Inclusion and Equality During the reporting period the company carried out several special audits covering procurement logistics planning

etc. providing improvement suggestions for relevant departments and enhancing the company's internal control level.ESG Governance At the same time the company actively carried out internal audit training promoting the necessity and process of

Information Security

internal audits to employees and improving the compliance awareness of all staff.Supply Chain Management

Corporate governance

Case Internal Audit Training

Social welfare In 2024 the company carried out several internal audit trainings covering employees in Guangzhou and Zhaoqing

districts. The training aimed to help employees familiarize with the internal audit process cultivate risk management

awareness and help the company operate soundly.Importance to JSJ

Level of Importance Issue

Product Quality and Safety Energy Management

Highly Employee Safety Customer Benefits

Important Issues Emissions and Waste Management Green Operations

Technology Innovation and R&D

Employee Development Corporate Governance

Employee Rights Water Management Internal Audit Training Site

Moderately Climate Change Business Ethics

Important Issues Supply Chain Management Information Security

Chemical Safety Diversity Inclusion and Equality

Biodiversity Employee Care

ESG Governance

Generally

Material Issues Social Welfare

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Importance to JSS stakeholders01 02 03 04 05 06 07 08

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2024 ENVIRONMENTALSOCIAL ANDUpholding Business Ethics GOVERNANCE(ESG) REPORT

The company complies with the Anti-Money Laundering Law of the People's Republic of China

Three Lines of Defense and enhances internal anti-money laundering compliance management to ensure business

operates in compliance and safeguards financial security. The company actively cooperates with

Anti-Money

In 2024 the company continued to refine the construction of the "three lines of defense" in risk management clarifying law enforcement agencies regulatory authorities and the financial industry organizing financial Laundering center staff to participate in anti-money laundering training to improve their understanding and

the responsibilities of each department to ensure the company's stable and compliant operations. awareness of anti-money laundering work ensuring that financial center staff can accurately

implement anti-money laundering policies.JSJ adheres to laws and regulations such as the Anti-Unfair Competition Law of the People's

Risk Management Republic of China and resolutely prohibits any actions that confuse the market and mislead

consumers and does not use bribery or other unfair competitive means to seek trading

Anti-Unfair opportunities. At the same time the company respects and protects trade secrets and does not

Competition engage in false propaganda committed to fostering a fair competitive market environment. In

2024 the company did not have any legal disputes related to unfair competition or

anti-monopoly.Business Department Finance and Legal Departments Audit Department

Regulatory Channels

First Line of Defense Second Line of Defense Third Line of Defense

360-degree Investigation Audit Investigation Employee Reporting Reporting Protection

Identify assess Provide professional Provide independent andobjective

andmanage risks knowledgesupport monitor judgment andrecommendations The company's human The company's audit All employees can The company has

inbusiness processes andreasonably question for allmatters related to resources center department conducts supervise and report improved measures to

risk-related matters achievingcorporate goals conducts periodic regular checks and any irregular behavior of protect reporters

360-degree supervision on the daily company cadres timely resolutely safeguarding

investigations on cadre behavior standards of exposing and correcting the legal rights and

Risk Supervision and Reporting interests of reporters supervision to monitor cadres in various improper conduct. requiring relevant

the performance of centers to strictly departments to keep

cadres over the long prohibit corruption and reporter information

term. abuse of power for strictly confidential and

Risk Response and Risk Contro! personal gain. prohibiting any

discrimination or

retaliatory actions.Risk ldentification and Assessment

“Three lines of defense” risk management mechanism Case Anti-Commercial Bribery Training

Anti-commercial bribery is an important part of JSJ's compliance management. To strengthen employees' awareness

of business ethics the company organized a special training on anti-commercial bribery in 2024. Through interpreting

Upholding Business Ethics legal provisions and analyzing real cases this training enables employees to deeply understand the harms of commercial bribery and establish a positive sense of integrity among them.JSJ strictly adheres to the Anti-Monopoly Law of the People's Republic of China the Anti-Unfair Competition Law of

the People's Republic of China the Anti-Money Laundering Law of the People's Republic of China the Interim

Provisions on Prohibiting Business Bribery and other laws and regulations. The company has established and

implemented systems such as the Management System for Cadres to clearly define prohibited acts of bribery

solicitation acceptance provision of benefits conflict of interest and the consequences of penalties. The company

resolutely opposes any form of business bribery money laundering and unfair competition and is committed to

creating an honest fair and transparent business environment to maintain good market order and industry image.The company has formulated and updated internal systems such as the Management System for

Cadres and the Logistics Management System and the audit department regularly conducts

Anti-Bribery investigations into violations according to the internal audit procedures. In 2024 the company

had 0 case of illegal acts resulting from fraud or corruption.Anti-commercial bribery training

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ENVIRONMENTALSOCIAL AND

Protection of Information Security 2024 GOVERNANCE(ESG) REPORT

Protection of Information Security

JSJ abides by the laws and regulations of the People's Republic of China on Network Security the People's Republic of

China on Data Security and the People's Republic of China on Personal Information Protection and attaches great

importance to the information security of its customers suppliers and employees. In 2024 the Company formulated

the “Management System for the Outward Dissemination of Information” to categorize the Company's information and

set up the procedure for approving the outward transmission of such information. This system together with the

encryption system reduces the risk of leakage of company information.The processes of assessing the needs of outgoing materials confirming the contents of outgoing materials

Formulation of

processes managing the process of outgoing materials and regularly checking and cleaning the materials are

standardized and strictly enforced.Encrypt all information. The outgoing information must be decrypted for approval and can be read after

Encryption

Management approval. The company sets up decryption approval authority according to the type of information and

strengthens password management.Approval The company has set up the “External Information Release Approval Form” in OA to ensure the information

Traceability security of the outgoing information and the traceability of the information.Risk Control of Outgoing Data

JSJ strictly manages data backup. For OA system SAP system and other key business systems JSJ adopts cloud

service storage backup and executes the daily difference backup strategy every night to accurately capture the data

changes of the day and save them to ensure real-time data update. In addition before any system changes or

upgrades the company will start a complete backup process to fully preserve system data in order to ensure a smooth

transition of business and data security.In terms of enhancing employees' awareness of information security in 2024 the Company popularized information

security knowledge for all employees by organizing training on data security and privacy protection and trained

employees to handle information security cautiously. In the event of information leakage by employees due to personal

reasons the Company will impose disciplinary actions according to the severity of the incident. To strengthen the

information security management of suppliers the Company protects the information security of both parties through

confidentiality agreements supplier evaluation and other measures.Case Network Security Knowledge and Skills Training

In 2024 the company carried out information security training for all employees which included basic concepts of

network security the current network security situation the enterprise network security management system and the

security measures that employees should take in their work. Through example explanation and interactive discussion

the training enabled employees to deeply understand the importance of network security and master network

security knowledge and skills.

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ENVIRONMENTALSOCIAL AND

Empowerment through Digital Intelligence Innovation Leading a New Future 2024 GOVERNANCE(ESG) REPORT

02

Empowerment through Digital Intelligence

Innovation Leading a New Future

Our Actions

*Customer-Centric Service

*Deepening R&D Innovation

*Leading Intelligent Manufacturing

*Crafting Excellence in Quality

*Ensuring Safe Production

Our Performance

100% 17.8169 million Yuan

The business scope covered by the company's R&D Investment

ISO 9001 quality management system certification amount

134 Items 150 Items 50 Persons

Accumulated Accumulated intellectual Total R&D

patent authorizations property rights personnel

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ENVIRONMENTALSOCIAL AND

Customer-Centric Service 2024 GOVERNANCE(ESG) REPORT

Customer-Centric ServiceJSJ adheres to a customer-centric approach upholding the service philosophy of “customer first and pursuit of Customer Satisfactionexcellence” to provide high?quality service. The Company values customer needs and feedback offers customized

products practices responsible marketing safeguards customer rights and enhances the overall customer experience JSJ consistently maintains a customer?centric approach by providing customized products

and satisfaction. Customized and solutions. The Company has established a comprehensive service system—from needs

Solutions identification to product development and after?sales support—that creates long?term

value for its customers.Putting Customers First

The Company places great emphasis on customer health and safety enhancing customer satisfaction by providing JSJ has established an efficient cross-departmental collaboration mechanism among its System-wide

tailored solutions implementing a professional Customer Relationship Management (CRM) establishing a scientific marketingR&Dproductionand sales teams.Through regular visits and market Demand Discovery researchtheCompany thoroughly uncovers customer needs to ensure that its products and

service framework and creating an efficient response mechanism—all in line with its customer?first ethos. services closely match real-world requirements and to respond to customer demands promptly.Positioning itself as the "exclusive designer"for its clientsJinsanjiang leverages its deep

Customer Health and Safety understanding of client needs and industry trends to facilitate seamless collaboration across

Customized Product multiple departments. This enables the Company to significantly shortens the development

JSJ steadfastly upholds the baseline of customer health and safety by ensuring that all its products are safe and Development cycleidentifies industry pain pointsand taps into market potential to accelerate the R&D

reliable. The silica produced by the Company meets food?grade standards and has received a series of certifications process.UltimatelyJSG develops high value-added products that meet market and customer

demandsoffering tailor-made products and service solutions.including ISO 22000 Food Safety Management System Halal and Kosher certifications. Moreover the Company has

established a three?tier control mechanism—Raw Material Control Production Control and Quality Inspection

Control—to guarantee customer health and safety.High-Quality JSJ promptly addresses customer feedback by accurately conveying issues to the factory.After-Sales Support Thisensures that customer concerns are thoroughly understood analyzed and resolved

withdedicated solutions.Raw The Company has established a rigorous supplier management system that prohibits the JSJ offers a variety of training initiatives-including online courseson-site operational

Material use of hazardous substances by raw material and auxiliary material suppliers thereby Multi-format guidanceand technical exchange sessions-to help customers master product applications and

Control Customer Trainingreducing risks at the source. enhance their overall experience.Case JSJ Factory Hosts an In-Depth Research Visit by Overseas Customer Representatives

Production The entire production process is monitored and controlled by a Distributed Control

Control System (DCS) ensuring that the processes remain reliable and stable.In July 2024 overseas customer representatives visited the JSJ factory for an in-depth research tour accompanied by

heads of the R&D marketing and sales centers. The delegation engaged in extensive discussions on JSJ’ s corporate

profile and product manufacturing processes. This visit holds significant strategic importance for fostering deeper

collaboration between both parties.JSJ has obtained ISO 9001:2015 Quality Management System certification and

Quality established a CNAS?accredited laboratory. In addition it has formulated standards such

Inspection as the Silica Semi?Finished Product Inspection Standard Silica Finished Product

Control Inspection Standard and Microbial Control Points for Production Workshops to enforce

rigorous quality testing of both semi?finished and finished products.Overseas Customer Representatives Visited the JSJ factory

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2024 ENVIRONMENTALSOCIAL ANDCustomer-Centric Service GOVERNANCE(ESG) REPORT

In addition JSJ regularly conducts customer satisfaction surveys to understand customer needs regarding product

To continuously enhance customer experience the Company has

Specialized quality on?time delivery and after?sales service. Valuing every customer’ s feedback the Company has developed

Management System comprehensively upgraded its Customer Relationship Management an integrated Sales?R&D service solution that effectively addresses both technical product requirements and delivery

(CRM) system. service expectations.

Accurate Demand Insights

Utilizing intelligent data analysis JS] identifies customer needsand

preferences enabling the Company to deliver personalizedservices

that enhance the overall customer experience.Efficient Collaborative Management

From production planning to product delivery the entire processis

seamlessly integrated optimizing resource allocation. This notonly

reduces operational costs but also ensures the efficientfunctioning

of the supply chain.Accompanying Customers on a Factory Tour

Real-Time Monitoring

Sales personnel can access the latest sales data and orderstatuses JSJ places a high priority on customer experience. During the reporting period the Company updated and

anytime anywhere. This immediate access allows themto swiftly implemented its Customer Complaint Handling Regulations and Complaint Event Management System to further

respond to market demands thereby enhancing serviceefficiency standardize the complaint process streamline its complaint channels and improve resolution efficiency.and customer satisfaction.Overview of CRM System Functions Responsible Marketing

JSJ is committed to operating with integrity and placing responsibility first. It strictly complies with the Advertising Law

of the People’ s Republic of China the Consumer Rights Protection Law of the People’ s Republic of China and other

JSJ has implemented a Sales Center Management System and built an efficient customer relevant regulations to ensure that its marketing practices are proper. To further strengthen internal controls the

Scientific service framework that unites all departments in delivering exceptional service to its Company has established an External Communication Materials Management System and implemented an approval

Service System

customers. mechanism for marketing materials.JSJ rigorously oversees its promotional content distribution channels marketing activities and bidding processes to

ensure that all marketing communications faithfully reflect the features of its products and services. These

communications are crafted to be accurate clear and easily understood while also ensuring fairness and equity in all

Customer Service transactions. Moreover the Company has enhanced its internal control and audit processes to strictly penalize any

System fraudulent behavior in its marketing practices. Looking ahead JSJ will continue to implement its responsible marketing

policy holding itself accountable to both its customers and society.Responsible Marketing Training

Business Order/Logistics Technology Quality

Account

Reconciliation/Invoice

Director Director R&D Director Director To ensure the thorough implementation of its responsible marketing policy the Company’ s Sales Center organized Director

comprehensive training sessions for all sales personnel ensuring that every team member fully understands and

adheres to the responsible marketing requirements.Customer Service System

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2024 ENVIRONMENTALSOCIAL ANDDeepening R&D Innovation GOVERNANCE(ESG) REPORT

Case Responsible Marketing Training

Collaborate with the Marketing Center Oversee the R&D of company products

In 2024 JSJ organized a dedicated to formulate product strategies and and drive new product development;

responsible marketing training session for forecast future trends;

its Sales Center staff. The training

addressed key topics such as building Manage and improve technical Interface with customers in the early

processes to reduce the cost of mature stages to align on product standards

and maintaining customer trust the products and stabilize product quality; validate testing methods and integrate

importance of responsible marketing and these standards internally;

the specific requirements involved. This Responsibilities of

initiative helped standardize marketing the R&D Center Provide technical support to customers Handle project submissions by applying

language and practices across the team and resolve technical issues for government?subsidized technology

encountered during product usage; development projects and technology

collectively fostering greater transparency invention awards at various levels;

and integrity in market activities.Collaborate with universities and testing

Responsible Marketing Training Session institutions in product development.R&D

investment In 2024 JSJ’ s R&D investment reached 17816925.16 RMB

Deepening R&D Innovation

R&D As of December 31 2024 the Company employed 50 R&D personnel accounting for

R&D innovation is the driving force behind sustainable corporate growth. Since its inception JSJ has consistently Talent 13.37% of the total workforce;

pursued independent research and development in the fields of silica products for toothpaste food & cosmetics The Company has equipped its R&D laboratories with ample advanced analytical

batteries silicone rubber and defoamers. Through an integrated four-dimensional strategy—encompassing R&D R&D instruments. The R&D laboratory at the Intelligent Factory (Factory II) can accommodate

Management Innovative Products R&D Layout and IP Protection—the Company has cemented its technological Equipment up to 100 personnel simultaneously;

leadership in the silica industry.JSJ has formulated and implemented the R&D Team Special Incentive Management

Measures which clearly define the incentive details. Eight awards have been established—

R&D Project Progress Award New Product Market Benefit Award Customer Service Award

R&D Management Incentives Patent Application Award Project Submission Award High?Quality Product Award

Technology Progress Award and Process Improvement Award—to provide generous cash

The Company has built a comprehensive R&D management system and developed key documents such as the New rewards to those who achieve significant R&D breakthroughs.R&D Center Management System the New Product Development Management Regulations (Trial) and the R&D

Demand Management Process Manual. These frameworks address critical issues including the allocation of R&D

resources management of R&D needs and new product development. Guangdong Engineering Technology Research Center forFunctional Silica

Guangdong Provincial Enterprise Technology Center

Provincial Level

Guangdong Province Innovation Method Promotion and

Application Demonstration Cultivation Enterprise

Guangdong Model Worker and Talented Craftsperson Innovation

Studio

Key R&D

Achievements

Zhaoqing Engineering Technology Research and Development

Municipal Level Center for Functional Silica

Zhaoqing Model Worker and Talented Craftsperson Innovation

Studio

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ENVIRONMENTALSOCIAL AND

Deepening R&D Innovation 2024 GOVERNANCE(ESG) REPORT

ORASIL 117T

Feature

High whiteness uniform particle size distribution;

High fluorine compatibility (≥90%);

Good compatibility with other toothpaste components such as flavor;

Provide medium abrasive cleaning ability;

Good transparency under the low refractive index.Index Test Method Technical Data Test Result

Laboratory

Whiteness (Wg) % QB/T2346-2015 ≥96 98.91

Oil Absorption (g/100g) ASTM D281 95-125 104

Water Absorption (ml/20g) QB/T2346-2015 17-25 18.9

1000'C Loss on lgnition % QB/T2346-2015 ≤8.5 5.38

105°C Loss on Drying % QB/T2346-2015 ≤8 8.43

Purity as Si02 % QB/T2346-2015 ≥96 98.50

Total Salts (as Na2SO4+NaCl) % QB/T2346-2015 ≤2 0.67

CNAS Certification Certificate

pH (5%Slurry) QB/T2346-2015 7.2-8.2 7.67

light transmittance % QB/T2346-2007 ≥90 97.9

Innovative Products

JSJ continuously drives the commercialization of its R&D achievements. Several key innovations have filled industry Apparent Density g/ml QB/T2346-2007 0.30-0.45 0.41

gaps and injected fresh dynamism into the market. The Company successfully launched a low?oil?absorption silica for

silicone rubber applications whose exceptional performance offers a breakthrough opportunity for industry

transformation. In addition JSJ has developed a silicone rubber–specific silica product that is set to revolutionize the

Median Particle Size-D50 μm GB/T19077-2016 6-14 12.0

precipitated adhesive sector. Significant progress has also been made in developing new colored particles further

expanding the Company’ s product matrix.

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ENVIRONMENTALSOCIAL AND

Deepening R&D Innovation 2024 GOVERNANCE(ESG) REPORT

R&D Layout

Intellectual Property Protection

JSJ places great emphasis on its R&D strategy and continuously develops innovative products. The Company adopts a

“dual-track” R&D strategy. JSJ strictly adheres to the Patent Law of the People's Republic of China the Trademark Law of the People's Republic

of China and other relevant legislation. The Company has formulated and implemented a series of specialized

intellectual property protection policies—including the Intellectual Property Management Manual the Patent

Existing Products Deeply mine and unleash new potentialin existing products Management System the Intellectual Property Rewards and Penalties Management Measures and the Confidentiality

Management System—to further clarify procedures for trademark and patent applications. During the reporting

period the Company recorded zero intellectual property infringement lawsuits. In addition JSJ provides

comprehensive intellectual property training for its employees to continuously enhance their awareness of protecting

Enrich product portfolio explore newbusiness models and deliver value to intellectual property and to safeguard the Company’ s legal rights in accordance with the law.Emerging Products downstream customers andconsumers

As of December 31 2024 Jinsanjiang has obtained a total of 134 patent authorizations including 105 patents granted

and 29 utility model patents.Dual-track R&D Strategy

During the reporting period JSJ introduced several technological innovations for its existing product lines. Some of 134 Items 105 Items 29 Items

these innovations have matured and will be integrated into a new series of toothpaste products delivering premium

quality to customers. Meanwhile the company continues to deepen its efforts in the high-performance industrial and Patents Patents for Patents for

opening agent sectors accelerating the rollout of new technologies. Inventions Utility Models

Product Portfolio Technical Advantages (Selected)

Case “Patent Search Technical Disclosure Writing and Mining – Materials Chemistry Focus” Training

Low Oil Absorption and Low Wear Silica for Toothpaste and Its PreparationProcess: The low oil absorption and low wear silica for toothpaste exhibits low In January 2024 the R&D Center organized a training session on “Patent Search Technical Disclosure Writing andfriction performance excellent cleaning efficiency and a low oil absorption Mining – Materials Chemistry Focus” for all employees. External experts were invited to share insights on patent

value. Toothpaste formulated with this product effectively minimizes tooth search techniques drafting technical disclosure documents and patent mining methods. This session equipped R&D

damage during cleaning while also offering a whitening effect. staff with practical skills in intellectual property protection to support the Company’ s technological innovations.Toothpaste Low Specific Surface Area Silica: This product complies with EU regulations

regarding non-nano silica making it suitable for toothpaste manufacturers with

such requirements.Research on high-performance industrial silica materials: Replacing part of the JSJ continues to advance its intellectual property management

fumed silica by developing a silica used in the silicone rubber field that functions efforts and consistently improves its IP management system

High-Performance as a highly transparent and low water absorption and meet the diverse needs of having successfully passed the GB/T29490-2013 Enterprise

Industrial Applications our customers. Intellectual Property Management Standard audit.Intellectual Property Management

System Certification Certificate

Silica for Anti-Blocking Agent: Has stable physical and chemical properties

provides an excellent anti-blocking effect and widely used in PE PP PET and

Anti-Blocking Agent other polyolefin polyester films.

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Sulfuric acid/sodium silicate preparation processes are equipped with on-line

Case JSJ has been shortlisted as a national “Specialized Refined Special and New – Little Giant” enterprise for 2024 Continuous on-line densimeter to achieve continuous on-line preparation;

preparation of

raw materials Compared with traditional mode this may significantly improve the accuracy andGuided by an innovation-driven corporate culture JSJ has been shortlisted as a national “Specialized Refined qualification rate of reagents as well as the efficiency of reagent modulation.Special and New – Little Giant” enterprise for 2024. Moving forward JSJ will continue to adhere to the “SpecializedRefined Special and New” development philosophy. Building on this recognition the Company will further increase The pressure filtration process is equipped with equipment including on-line

R&D investment strengthen its technical R&D team and accelerate the production and transformation of innovative On-line detection electrical conductivity detection instrument to accurately control salt content of

achievements thereby contributing even more to the continuous advancement of the silica materials industry and to equipment for productthrough variable-frequency washing and hot water washing;pressure filtration

national economic development. process Compared with traditional process this may significantly improve material

washing efficiency and material qualification rate.The pressure filtration process is equipped with equipment including on-line

electrical conductivity detection instrument to accurately control salt content of

On-line detection

equipment product through variable-frequency washing and hot water washing;

for reaction process

Compared with traditional process this may significantly improve material

washing efficiency and material qualification rate.Metal detector reweighing machine on-line ink-jet printing machine coating

Automated machine and other equipment are configured to achieve efficient weighing

packaging packaging re-inspection and film packaging for warehousing;

system

Compared with the traditional mode this may significantly strengthen packaging

efficiency reduce the risk of broken packets and make a better appearance of

product.Full intelligent control soft water treatment system that is equipped with ion

exchanger sand filter tower on-line pH meter UV disinfection instrument and

Water treatment other equipmentis used to achieve efficientremoval of impurities in product;

system

Compared with traditional mode this may better ensure microbial and

biologicalproperties.JSJ has been shortlisted as a national “Specialized Refined Special and New – Little Giant” enterprise for 2024

Automated Production Equipment and Systems

Leading Intelligent Manufacturing

Case JSJ & Jinan University Research Group Symposium on the Effective Integration of the Digital and Real Economies

The Company actively embraces the national digital transformation strategy by establishing an end-to-end automated

production system and integrating systems such as SAP DCS Energy Management R&D CRM and OA. This integration On September 18 2024 JSJ hosted a

has produced a unified “five?in?one” digital management platform that encompasses business management intelligent research team composed of professors and

manufacturing energy management R&D management and collaborative office functions. At present JSJ has largely students from Jinan University Guangzhou

University and Guangdong University of

achieved seamless interconnectivity among production equipment production processes production orders production Foreign Studies. The purpose of this

planning and material distribution which has enhanced product quality green manufacturing and safe production— symposium was to gain in-depth insights into

thereby elevating its overall intelligent manufacturing capabilities. the Company’ s practical experiences in

integrating the digital economy with the real

economy. During the session the head of

Intelligent Manufacturing Upgrade JSJ’ s Information Department introduced the

Company’ s digitalization informatization

and automation progress as well as its future

development direction. The research team

JSJ has established an end-to-end automated manufacturing system that also provided valuable suggestions for

Automated covers the entire production cycle from raw material feeding to finished product advancing JSJ’ s digital transformation.Production packaging. The Company continuously introduces advanced automated Group Photo of JSJ with the Research Team

equipment to reduce the risk of safety incidents and to improve product quality.

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Digital Transformation

The Company actively embraces digital transformation striving to achieve"digitization of all business processes and Currently the Company has completed the initial cloud migration of its core business data achieving

data-driven business operations". During the reporting period the Company deployed three core initiatives: the inter-departmental data integration. Under an ESG-oriented approach JSJ is exploring the integration of

Traditional Systems Optimization Project the Intelligent Platform Construction Project and the Digital Talent environmental social and governance performance indicators into its project evaluation system ensuring that digital

Cultivation Project. investments are aligned with sustainable development goals.SAP System DCS System Energy System OA System

Enhances functionalities in

Through deep integration Deeply integrates with Automates file management

financial management

it enables a seamless the SAP and DCS scheduling and email

supply chain management Green

connection from product systems to achieve management thereby

production scheduling and comprehensively enhancing Operationaldesign to manufacturing real-time monitoring and Manufacturing

other modules. Through Efficiency

reduces R&D analysis of energy work efficiency. It enables

system integration it

trial-and-error costs consumption. Based on rapid internal information

facilitates efficient

minimizes raw material these insights sharing and communication

cross-departmental

waste and enhances production processes are promotes efficient

collaboration improving

process reliability all promptly adjusted and cross-departmental and Resource Product

the transparency of

while boosting efficiency optimized to reduce cross-regional collaboration Stewardship Excellence

information flow logistics

and accelerating R&D energy consumption and and strengthens team

and cash flow while further

progress. improve overall energy cooperation. By standardizing ESG benefit

ensuring compliance

efficiency. workflows and management

management. processes it helps build a

systematic and orderly

management framework. Stakeholder Regulatory

Value Creation Compliance

Manufacturing Execution Product Lifecycle Customer Relationship

system(MEs) Management(PLM) Management(CRM) Industrial Sustainable

safety Innovation

This system integrates multiple Covers product-related functions This system supports multiple

functional modules for factory such as demand management client-facing functional modules

operations includingproduction project management formulation including customer information

planning scheduling material management master data management sales opportunity

management process management management reporting/analytics tracking sales forecasting

qualitymanagement equipment knowledgebase management and orderexecution and after-sales service.management energy management high-tech project application it implements full lifecycle

and digital performancemonitoring. management. management of customer relationships

Data-driven operations ensure End-to-end product integration through digital integration. Case Selected for the “2024 China Light Industry Digital Transformation Dual Ranking Lists”

full-process digital production supported by data-driven Customer-Centric Approach: Enabling

transparent progressand inventory approaches enables efficientand granular customer segmentation and

controllable quality accurate scientific comprehensive product profilingto inspire targeted marketing

equipment capacity optimized management. initiatives; achieving digital

productioncycles and lean transformation of sales workflows with

manufacturing. accelerated processes ensuring

premium service experiences.Thesystem's advanced analytics Leveraging its outstanding performance

empower data-driven market trend

insights facilitatingrational business in digital transformation JSJ wasstrategy formulation. successfully included in the “2024 ChinaLight Industry Digital TransformationDual Ranking Lists.” The Company’ s

capabilities in intelligent manufacturing

The company continues to strengthen the recruitment of digital talents through open hiring and

Talent university-industry collaborationsattracting IT professionals with expertise and practical experience.This digital operations and supply chain

Development enhances the company's technical capabilities and innovation capacitylaying a solid talent foundation for management have been widely

digital transformation.acknowledged by the industry. As a result

of its digital transformation initiatives JSJ

IT Team Regularly conduct training for internal employees on digital tools and platformshelping them master skills

Expansion and such as data analysis and intelligent system operations. This fosters a company-wide digital has significantly enhanced its production

DigitalApplication mindsetpromotes practical applicationand drives deep integration of digital technologies into daily efficiency and product quality.Training operations.Selected for the “2024 China Light Industry DigitalTransformation Dual Ranking Lists”

Three Core Initiatives

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Traditional Systems Optimization Project Intelligent Platform Construction Project Digital Talent

Cultivation Project

Three Core Initiatives01 02 03 04 05 06 07 08

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ENVIRONMENTALSOCIAL AND

Ensuring Safe Production 2024 GOVERNANCE(ESG) REPORT

Ensuring Safe Production

Case Medical Emergency TrainingThe Company regards safety as the cornerstone of its development and upholds the safety policy of “Safety FirstPrevention-Based Safe Development People-Oriented” . In compliance with the Safety Production Law the Law on

the Prevention and Control of Occupational Diseases the Fire Protection Law the Special Equipment Safety Law the

Environmental Protection Law the Rules for Safety Risk Zoning and Grading in Chemical Enterprises and other In November 2024 the Company invited

relevant regulations the Company has established a sound safety management mechanism. It has formulated a series Sihui Cihang Hospital to conduct a medical

of policies and procedures—including the Fire Safety Management Regulations the High?Altitude Operations Safety emergency training session in the Company

Management Regulations the Temporary Electrical Work Safety Management Regulations the Labor Protection cafeteria. The training aimed to impart basic

System for Female Workers and the Hazardous Chemicals Management Regulations—to continuously optimize on?site first?aid knowledge and equip employees

safety management and ensure both employee safety and uninterrupted operation of production. with essential emergency response skills.Safety Culture Cultivation Medical Emergency Training Session

The Company places the safety and health of its employees as its top priority and has built a robust safety culture. By

organizing safety production meetings safety training sessions team?level safety initiatives safety inspections Safety

Culture Month activities and safety model selections all employees have developed a strong awareness of and Case Safety and Environment Drill

commitment to safety goals thereby creating a pervasive safety culture. To further reinforce this culture a Safety

Culture Implementation Team has been established. This team has set milestone targets for safety culture

development across six dimensions—safety leadership safety learning safety incentives safety assurance safety In November 2024 the Company conducted both

behavior and safety communication—and is implementing phased action plans accordingly. a fire extinguishing drill and an emergency

evacuation drill. During the fire drill members of

the fire emergency team used fire extinguishers

and hydrants in practical exercises to demonstrate

Safety First Safety-driven Growth

Safety Policy proper operating procedures to employees from all

Prevention as the Priority People-oriented departments. At the same time all employees

participated in the emergency evacuation drill.Upon hearing the alarm they followed a

Act Together Share Safety

Safety Vision predetermined evacuation route—covering their

Build a self-motivated and mutually supportive safety culture mouths and noses—and proceeded in an orderly

manner to the designated assembly point where

they awaited instructions from the overall

emergency commander. A meticulous headcount

confirmed that every individual had successfully Safety and Environment Drill Training Session

"Top Ten Safety Production Norms" and evacuated. This exercise reinforced the

the"Four No-Harm Principles" employees’ emergency evacuation skills and

validated the effectiveness of the evacuation plan.Based on this foundation the Company has

further clarified its safety policy and vision by

formulating the "Top Ten Safety Production

Norms" and the "Four No-Harm Principles".These guidelines provide clear standards and Safety Production Management

goal orientations for all employees ensuring

JSJ consistently adheres to the production principle of “Taking Action Together for Safety” . In terms of safety

that the safety culture is deeply ingrained and

production governance the Company has established a Safety Production Committee. The committee’ s presidium—

effectively implemented. Safety Production Signage comprising the President the Deputy General Manager and the Plant Director—is responsible for coordinating overall

safety management formulating safety production policies and objectives and supervising their implementation. A

Committee Office under the presidium oversees and enforces these safety management measures. In 2024 the Safety

Management Committee expanded its membership by inviting representatives from Procurement Finance and R&D to

attend quarterly meetings as special invitees where they actively offered suggestions and supported the

implementation of related actions.

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2024 ENVIRONMENTALSOCIAL ANDCrafting Excellence in Quality GOVERNANCE(ESG) REPORT

Zero Accidents Before purchasing hazardous chemicals the Company is required to submit a declaration toSafety Goals the regulatory authorities and obtain approval. Chemicals included in the “Catalogue of Usedand Principles Safety as a Core Chemical Cosmetic Raw Materials” are procured following internal approval; otherwise the R&D Center

Procurement must review and confirm the feasibility of procurement. The R&D Center following the

Procurement and Management Regulations for Chemical Laboratory Materials implements

Everyone is responsible for his or her own safety: line management is specialized management by rigorously verifying supplier qualifications to ensure that

accountable for providing a safe and healthy workplace. procurement is both legal and safe.Training for all employeescontractors and visitors is essential to safety in

the workplace.Working safely and in accordance with our rules and procedures is an The Company strictly adheres to the “5 Doubles” system for the issuance of hazardous

Safety important part of work at JSJ. Chemical chemicals—double custody double locking double ledgers double delivery and double

Principles Recognizing hazards evaluating and controlling risk is a key part of our Issuance receipt—to ensure compliance. The Quality Center monitors the usage of chemical reagents

safety culture. and Use throughout the process in accordance with the Work Instruction for Chemical Reagent

Employees and Contractors will never walk past an unsafe act or Management thereby reducing usage risks.condition-we will always make it safe before we leave.As a learning organization we will take every opportunity to ensure we

continuously improve our safety performance and behaviors. Supplier Safety Management

In 2024 the Company formulated or updated documents including Engineering Safety Construction Management

Enhanced Organizational Structure: The Safety and Environment Agreement Safety Production Management Agreement Contractor Employee Safety Responsibility Commitment (for

Management Department was upgraded from a secondary to a primary

department placed under the direct management of the General hazardous chemicals such as concentrated sulfuric acid) and the External Personnel Work Safety Commitment (to be

Manager’s Office and now oversees company?wide safety management. signed by personnel entering the production area). All engineering and sulfuric acid suppliers are required to sign

Increased Manpower: The number of safety management personnel was relevant documents prior to entering the JSJ premises thereby strengthening the requirements for supplier

increased from 2 to 5 thereby improving both efficiency and impact. occupational safety. Throughout 2024 no occupational safety incidents involving suppliers or their employees were

Establishment of a Safety Coordinator Team: Each center/department reported within the JSJ operational area.has appointed one part?time safety coordinator to act as a liaison

Safe ensuring that safety policies are communicated to every employee.Operations Upgraded Equipment Safety: To ensure the safe use of tools and

equipment the Company has provided additional European?standard

scaffolding for the Maintenance Department extra mobile platforms for Crafting Excellence in Quality

the Production Department installed safety canopies on forklifts in theSupply Chain Center upgraded to new gas detectors and added fall For more than twenty years JSJ has adhered to the quality policy of “insisting on quality first promoting technologicalprotection devices. innovation implementing scientific management and exceeding customers’ expectations” earning an excellent

Improved PPE Management: The Company has reinforced the reputation. The Company has established a robust quality management system and has obtained certifications for ISO

management of personal protective equipment (PPE) by establishing a 9001:2015 Quality Management System ISO 14001:2015 Environmental Management System and ISO 22000:2018

minimum PPE usage matrix for different positions thereby enhancing Food Safety Management System among others.the comfort of PPE while maintaining its safety standards.Quality Management System

Hazardous Chemicals Management

JSJ strictly complies with the Product Quality Law of the People’ s Republic of China the Food Safety Law of the

People’ s Republic of China and other relevant regulations placing a high priority on product safety and quality to

The Company strictly adheres to the Regulations on the Safety Management of ensure the provision of safe and healthy products to customers. To further enhance its quality management system

Hazardous Chemicals and other relevant laws and has formulated and JSJ has developed 38 quality management procedure documents and 308 tier three operational documents ensuring

implemented Regulations on Hazardous Chemicals Management Procurement that all work processes have clearly defined standards. In 2024 the Company updated a total of 44 quality procedure

and Management Regulations for Chemical Laboratory Materials and Work and operational documents.Instruction for Chemical Reagent Management. These measures standardize the

entire process of chemical procurement storage issuance and use thereby

reducing the risk of accidents. Furthermore the Company has established a 38 Pieces 308 Pieces 44 Pieces

management mechanism in accordance with EU REACH regulations to identify

and assess the safety and environmental risks of chemicals and gradually phase Total quality management Total tier three Total quality procedure and

operational documents

out high?risk chemicals ensuring product safety.。 EU REACH Certification procedure documents operational documents

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Quality Management ProcessQuality JSJ adheres to the quality policy of “Quality First Promoting Technological InnovationPolicy Implementing Scientific Management and Exceeding Customers’ Expectations” .Lifecycle Management

Quality Representative Management System: Clearly defines quality management

responsibilities and establishes dedicated quality management roles across production R&D JSJ rigorously controls product quality by implementing full?lifecycle management—from raw material intake to

warehousing and sales to ensure product safety and consistency. finished product shipment—to ensure that every product meets quality standards. In 2024 the ISO 9001 Quality

Management System certification of the Company covered 100% of its business scope.Design and Development Control Procedure: Outlines the process for new product design

and development embedding quality controls throughout product planning review

validation confirmation output and conversion to mass production thereby ensuring that During the R&D phase based on product designs confirmed with customers the

new products meet customer requirements and maintain stable quality.Product Company initiates new product projects produces samples conducts pilot

production verifies pilot production stability and standardizes production

Hazard Control (CCP and OPRP) Plan: Develops a hazard control plan for the production of Design processes. Stringent quality approvals are implemented throughout these stages to

Selected silica/food additive products identifying and controlling potential hazards during production ensure the stability of product quality during mass production.Quality to ensure product safety and hygiene.Systems

(2024) Change Control Procedure: Establishes a change control system to evaluate review In 2024 the Company comprehensively updated its raw material

approve and implement changes affecting product quality ensuring that product quality Raw Material acceptance standards to enhance raw material quality. Every batch of

remains consistently stable post-change and facilitating traceability. Intake raw materials must undergo physico?chemical and microbiological

testing and only those that meet production requirements are accepted.Sample Management Regulations: Standardizes procedures for handling internal samples

sent to customers samples sent to third?party authorities for testing R&D samples and

external sample inspections to ensure effective sample management. JSJ has established inspection standards for semi?finished products

testing them for physico?chemical parameters (such as appearance

Semi-finished

Pilot Production to Mass Production Management System: Regulates the entire process of pH moisture salt content etc.) and microbiological indicators. An Product

pilot production for new product R&D including both the pilot and mass production stages online inspection system has been implemented to monitor the quality Inspection

ensuring effective control and a smooth transition from pilot to full-scale production. of semi finished products in real time allowing for prompt

identification and rectification of any quality issues during production.The Company has developed finished product inspection standards

and conducts comprehensive quality tests—including sensory

Finished Product evaluation physico?chemical analysis microbiological testing weight

Case Establishment of the “Zero Complaint Team” Inspection dimensions packaging and functionality assessments—on each batch

before shipment ensuring that the final products meet market and

customer requirements.To achieve the “zero complaints” target In 2024 to ensure the quality of transported products JSJ updated its Logistics Managementthe Company established a “Zero System and revised both domestic and international logistics contract templates in line with itsComplaint Team” comprising members Transport actual logistics operations. These measures comprehensively ensure that carriers possess the

from the Sales Center Production Assurance necessary transportation qualifications and that their vehicles meet food-grade standards

Department R&D Center and Quality particularly regarding sealing and microbiological criteria.Center dedicated to resolving customer The Company has established customer complaint handling and product recall management procedures. Based on

complaints. After-Sales the reasons for a product recall appropriate measures are taken for the recalled products—including retrieving non?

Once the Team was formed designated Assurance conforming products formulating corrective action plans reducing product prices and compensating customers

personnel were tasked with tracing and for losses.analyzing the root causes of complaints Full-lifecycle Product Quality Management

identifying and addressing quality risks

and eliminating potential hazards.Foreign Matter In 2024 JSJ further strengthened its controls over foreign matter during production to

“Zero Complaint Team” Control ensure that products remain uncontaminated throughout the manufacturing process:

in Production

The Company introduced devices such as magnetic separators and metal detectors to

monitor and eliminate foreign objects in real time;

The use of auxiliary materials is strictly controlled to ensure compliance with quality

requirements;

Startup shutdown and product changeover cleaning standards have been optimized to

prevent cross-contamination;

Regular monthly inspections for foreign matter risks are conducted to refine preventative

measures thereby ensuring safe and efficient production.

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Quality Management Culture

To enhance employees’ awareness and capabilities in quality management JSJ continuously reinforces its quality culture

and actively organizes quality-related activities to foster a “zero tolerance” environment for quality issues. The Company Quality Incentives The Company has established the Special Incentive Management System for the Quality

has developed an annual quality training plan and regularly conducts quality control training sessions for its employees. and Recognition Department and conducts an annual “Quality Star” selection event to motivate all

employees to actively participate in quality improvement efforts thereby solidifying the

The Company routinely holds training sessions on production processes to ensure that enterprise’ s quality foundation.Production Process

Training employees are well-versed in the entire process—from raw material procurement and In 2024 the quality management exemplars selected received both honor and rewards

processing to finished product inspection. These sessions enable staff to gain an boosting overall employee enthusiasm for quality management.in-depth understanding of the critical control points at each stage thereby ensuring

stable product quality.In 2024 the Company optimized its production processes and organized several Quality Incentives JSJ places great importance on cultivating quality awareness among its employees.specialized training sessions covering topics such as new equipment operation and and Recognition Initiatives such as pre-shift meetings to promote the quality policy daily quality incident

process improvements which further enhanced employees’ production skills and quality reporting and rewards are regularly conducted. These activities ensure that employees

management capabilities. maintain a high level of focus on quality and reinforce the “Quality First” work

philosophy.Quality Tools The Company emphasizes training on the application of quality tools including the seven In 2024 the Company organized a “Safety Quality and Continuous ImprovementApplication Training QC tools basic microbiology and control methods GMP management and Hazard Knowledge Competition” that attracted widespread employee participation. This

Analysis and Critical Control Point (HACCP) principles. These training sessions effectively competition provided a relaxed yet engaging environment for employees to learn

empower employees to analyze diagnose and address quality issues using scientific quality-related knowledge thereby further strengthening their quality awareness.tools thereby enhancing both the efficiency and precision of quality management.Quality Training in July 2024 “5-Minute Pre-Shift” Quality Commitment Activity Quality Knowledge Competition

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ENVIRONMENTALSOCIAL AND

Green DevelopmentShoulder the New Mission 2024 GOVERNANCE(ESG) REPORT

03

Green Development

Shoulder the New Mission

Our Actions

*Implementing Green Operations

*Building Green Factories

*Adherence to Green Development

Our Performance

20%12%

The intensity of hazardous waste The intensity of water resource use has decreased

discharge has decreased compared to 2023 compared to 2023

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ENVIRONMENTALSOCIAL AND

Implementing Green Operations 2024 GOVERNANCE(ESG) REPORT

Implementing Green Operations

To respond to the national "dual carbon" goals the company has taken relevant measures in clean production energy JSJ strictly abides by the Law of the People's Republic of China on Prevention and

management and water resource management to reduce carbon emissions. In the future we will continue to improve Control of Water Pollution and has formulated and implemented Regulations on

strategy formulation risk management and identification and management of indicators and targets working with Wastewater Management. We have installed online monitoring devices for chemical

downstream partners in the value chain to address climate change and achieve green development together. oxygen demand (COD) ammonia nitrogen (NH3) and pH at the wastewater discharge

outlets of our factories to realize real-time online monitoring of wastewater discharged

and to strictly control the potential risks of wastewater disposal.Implementing Green Operations Wastewater In accordance with the principle of “segregation of wastewater and sewage classificationManagement and collection and quality treatment” we have constantly upgraded our sewage

JSJ strictly complies with the Environmental Protection Law of the People's Republic of treatment system and have added turbidity meters and pH meters at the front end of

China and the Guangdong Provincial Regulations on Environmental Protection among the sewage discharge pipeline so as to provide early warning management of sewage

other laws and regulations. Internally we have established procedures such as the discharge in compliance with the standards.Environmental Factor Identification and Control Procedure Environmental Operation

Control Procedure and Organization's Environmental Control Procedure to standardize

the compliance of our environmental management and actively fulfill our environmental We strictly abide by the Law of the People's Republic of China on Prevention and Control

responsibil it ies. During the reporting period we have not experienced any of Air Pollution in our operation and production and constantly improve our internal

environmental penalties or fines. Exhaust Gas Management Regulations. Based on the principles of source reduction

For environmental risk management we have formulated Emergency Plan for Exhaust Gas process optimization on-site improvement and end-of-pipe management JSJ strives to

Environmental Environmental Risk Events Environmental Risk Event Assessment and Emergency Management reduce the emission of air pollution in the production process.Management Resource Investigation for Environmental Risk Events to ensure that the company has

the capability to handle sudden environmental incidents.During the reporting period the company successfully completed the annual ISO 14001

environmental management system supervision audit passed the clean production

audit in Zhaoqing City and obtained the position of director unit of the third council of

the Guangdong Province Clean Production Association in May. 1 2 3

The company strictly The company implements The company focuses on

implements national and the whole process of dust prevention and control

local pollutant emission control in the production identifying abnormal

standards establishes chain and equips the key working conditions of dust

management areas with high-efficiency removal

norms for the emission of bag dusters; facilities in advance to

waste gas dust and synchronously deploys ensure the long-term

hazardous substances and online monitoring systems stable operation of

commissions third-party to collectreal-time environmental protection

testing emission data to ensure measures.organizations to carry out dynamic compliance with

regular monitoring to ensure the standards.compliance.Measures for Treating Exhaust Gas in JSJ

ISO14001 Environmental JSJ becomes the governing unit of the third council of Guangdong

Management System Cleaner Production Association

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2024 ENVIRONMENTALSOCIAL ANDImplementing Green Operations GOVERNANCE(ESG) REPORT

Energy Management

In terms of waste management JSJ always complies with the Law of the People's Against the background of intensifying global climate change China has put forward

the dual-carbon target of “peak carbon by 2030 and carbon neutrality by 2060”

Republic of China on the Prevention and Control of Solid Waste Pollution and the marking the green and low-carbon transformation as a national strategic priority. In this

Environment and the Guidelines on Classification of Domestic Waste and has context JSJ deeply recognizes the importance of low-carbon development integrates

formulated Waste Management Provisions internally to standardize the waste the dual-carbon target into its corporate strategy actively responds to the call of the

management work.JSJ actively carries out the work of recycling and reutilization of policy upgrades its production process through energy management optimization

Waste waste and strives to achieve the goal of Zero Emission of Solid Wastes. We also actively adjusts its energy structure and continuously promotes low-carbon production

Management carry out waste recycling and reuse work aiming to achieve the goal of zero solid waste technology innovation to meet the new opportunity of green and low-carbon

discharge. development of the enterprise.JSJ's direct carbon emissions mainly come from fossil energy consumption in the

Responding to production process including natural gas electricity and diesel fuel. Indirect carbon

Dual Carbon emissions mainly come from purchased electricity. To reduce carbon emissions the

Classification Storage Compliance Disposal Records company is gradually increasing the proportion of renewable energy used in the form of

rooftop photovoltaics. In addition JSJ utilizes an energy management system to monitor

energy consumption data in real time optimize energy distribution and reduce waste

Build storage facilities thereby steadily advancing the implementation of carbon emission reduction projects

In accordance with the in accordance with In strict accordance Establish a waste while safeguarding production efficiency.National Hazardous the General Industrial with environmental management

Waste List and other Solid Waste Storage protection account to record

national standards requirements solid information such as The company manifests its determination of low-carbon development with practical and Disposal Site

waste generated in waste is disposed of the type of waste actions and is committed to building a low-carbon environmentally friendly and Pollution Control sustainable corporate image and contributing positively to the society and the

the production Standards (GB-18599) by a qualified third the amount of waste environment. The company has compiled and strictly implemented the Energy

process is strictly and Hazardous Waste party. generated the mode Management Manual and obtained ISO 50001 Energy Management System

classified. Storage Pollution of transportation Certification.Control Standards and the mode of Energy Management

disposal. The company has set up an energy management system team and built an energy (GB-18597) to prevent System management platform to help real-time monitoring of production energy consumption

secondary pollution of and timely alarms for abnormal energy consumption in the production process to avoid

the surrounding wastage of energy.environment (e.g. soil

and groundwater).By focusing on equipment upgrading and process optimization JSJ has built an

all-round energy-efficiency improvement system which reduces operating costs

Waste- Total Process Management Program

Energy Efficiency enhances market competitiveness and injects green power to protect the earth's

Improvement homeland.Case Waste Pallet Recycling

JSJ actively cooperates with customers and hires a third party to recycle pallets. The company can recover 36577

pieces of plastic pallets every year and put them into recycling slowing down the environmental pollution caused by 1 2 3

waste pallets.Recover the steam emitted Replace the traditional Installing frequency

from water glass liquefaction pulping spray drying with converter on the main

Case Waste Residue Reuse and use it to preheat the granular airflow drying electrical equipment in

process water reduce the to improve production theproduction line to

heating time of cold water efficiency and save reduce power loss and

In response to the large amount of waste residue generated in the production process we have successfully and reduce the energy electricity and energy reducing power

transformed it into industrial-grade silica products through technical support. This initiative helps the company to consumption by 12%. reducing energy consumption by 10-15%.realize the goal of zero solid waste reduce the generation of waste reduce its pollution to the environment and at consumption by 32%.the same time enhance the company's economic efficiency.Initiatives to Reduce Energy Consumption in JSJ

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ENVIRONMENTALSOCIAL AND

Building Green Factories 2024 GOVERNANCE(ESG) REPORT

Building Green Factories

JSJ is fully committed to building green factories and closely integrating green concepts into daily production. In green

Promoting energy structure transformation is a key strategy for JSJ's low-carbon design we incorporate environmental considerations into the entire life cycle of our products. In green manufacturing

transition. To reduce our reliance on traditional energy sources we optimize our energy we utilize new environmentally friendly materials and advanced technologies strictly control the production process

structure by laying out distributed photovoltaic systems. By the end of the reporting and promote the construction of green factories in all aspects. In green logistics we adjust the mode of transportation

period the installed capacity of photovoltaic power generation equipment in our plants optimize product packaging reduce logistics energy consumption and emissions and continue to move towards a

Energy Structure 1972 greener more environmentally friendly enterprises.amounted to KW. During the reporting period the distributed photovoltaic

Transformation

system generated a total of 1607 MWh of electricity.Green Design

To actively respond to the call for green development our factory has deeply integrated the green concept into the

whole life cycle of products. In product design we have innovatively introduced the concept of eco-design

considering the environmental impact and resource utilization efficiency holistically reducing the use of hazardous

substances avoiding the leakage of hazardous substances and striving to reduce energy consumption and

environmental pollution. We have also commissioned a third-party certification company to identify and analyze

carbon emission hotspots in the production process which acts as a base for green design. Carrying out green

product design not only makes the products more in line with the market demand for green environmental protectionbut also strongly promotes the products to meet the evaluation requirements for eco-designed products in the “GreenFactory Evaluation Requirements” so that we can practice the strategy of sustainable development with practical

actions.Product Eco-design In the product design stage we strictly follow the General Principles of Product

Eco-design GB/T 24256-2009 standard to carry out eco-design for the products we

produce. The company actively introduces the concept of eco-design taking into

account the environmental impact of the entire process of product production use and

disposal.We have formulated a clear eco-design process for our products which includes five

steps: identifying design products and goals planning and organizing demand analysis

JSJ Rooftop PV product design and implementation of the design. At the same time we promote

continuous product improvement through regular evaluation and feedback to

continuously improve our eco-design work.Water Resources Management

The Company strictly abides by the Water Law of the People's Republic of China and other laws and regulations to

standardize internal water resource management. We carry out inspections and controls on productive water use to Eco-design Evaluation According to the General Principles of Eco-design Product Evaluation GB/T 32161-2015

reduce water waste. In addition the Company saves water through equipment optimization and technological standard we carry out life-cycle evaluation of products based on eco-design product

transformation and promotes the recycling of water resources. evaluation and prepare the Eco-design Product Evaluation Report of Jinsanjiang

(Zhaoqing) Silicon Materials Co.Case Water Conservation by process improvement

In 2024 JSJ implemented a series of water-saving optimization measures in the production process especially JSJ Green Product Design

strengthening precise control of conductivity in the washing process successfully improving the salt content

standards of various products and significantly reducing water resource consumption. During the reporting period

this measure saved a total of 17166.35 tons of water in the washing process. Through this effort the production

efficiency has been improved a lot and JSJ has taken a big step towards building a water-saving enterprise.

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2024 ENVIRONMENTALSOCIAL ANDBuilding Green Factories GOVERNANCE(ESG) REPORT

Green Manufacturing

In the wave of green development of the times our company is fully committed to the practice of green

manufacturing. On the one hand we constantly innovate our production process eliminating old processes with high

energy consumption and pollution and introducing advanced clean production technologies. On the other hand we 1 We have de-packaged bulk waterglass to reduce packaging waste and improve

reduce resource consumption and pollutant emissions from the source and actively optimize the layout of factories convenience and efficiency in production transportation and use.improve energy efficiency and carry out scientific recovery and recycling of waste. Through multi-dimensional efforts

we create a whole chain green manufacturing system and lead the industry to a new journey of green development.JSJ has introduced the development concept of “green low-carbon and recycling” in the process of creating green

factories mitigating the impact on the environment during the whole life cycle of products continuously reducing We have replaced some of our products with larger bags of 475 kilograms instead of 20

energy consumption and pollutant emissions improving resource utilization efficiency and reducing the use of 2 kilograms to reduce the amount of packaging used.non-renewable resources.Part of the green packaging materials initiative

Green We set up a green factory management system and formulate long-term plans and annual

Manufacturing

System implementation programs in accordance with the principles of plant intensification harmless raw Case JSJ Named "National Green Factory" Leading Sustainable Development with Green Manufacturing

Guarantee materials clean production waste resourcing and low-carbon energy.We implement systematic clean production reforms such as pollution reduction and waste

Clean reduction to reduce environmental impacts through equipment maintenance and insulation The Ministry of Industry and Information Technology released

Production

pipeline maintenance. the 2024 Green Manufacturing List with JSJ awarding the

"National Green Factory" title for its outstanding practices in

resource efficiency and clean production. This accolade

highlights its commitment to ESG principles. Moving forward

We have continuously invested in a number of energy-saving and water-saving technologies and JSJ will integrate green innovation across its value chain

Efficiency other renovation projects. For example waste heat recovery steam recovery water recycling and

Enhancement aligning with China’ s carbon goals to foster eco-friendly

other projects to reduce the use of energy and water resources. industrial growth.JSJ Named "National Green Factory"

Energy

Structure We use solar photovoltaic power to optimize the energy structure and guide the factory towards

Optimization low-carbon and cleaner energy.Case JSJ has been successfully included in the “2024 Green Manufacturing List”

Green Logistics

With these excellent practices in the field of green

The company actively promotes the transformation of green logistics and builds a green logistics system. By manufacturing JSJ has been successfully included in

strengthening quality control management we improve the one-time arrival qualification rate effectively reduce the the “2024 Green Manufacturing List” and won the

authoritative award of national green factory which

repeated return and reissue of transportation due to quality problems of goods and reduce the waste of resources

marks another solid step on the road of green

and carbon emissions generated by the transportation process. At the same time when conditions permit we manufacturing for JSJ. JSJ's inclusion in the list is a

reasonably adjust the mode of transportation adjusting the automobile transportation to sea transportation giving full recognition and an incentive from the state for our

play to the advantages of large capacity and low energy consumption of sea transportation. In addition we actively long-term practice of ESG concepts. Being selected is

plan to build warehouses in the local areas of our customers to improve distribution efficiency and shorten the delivery not the end but a new starting point. In the future

cycle. JSJ will under the guidance of the national

“dual-carbon” strategy infuse the green gene into theJSJ is actively exploring and innovating in the field of packaging and fully promoting the practice of green packaging. JSJ has been successfully included in the “2024 Greenwhole business cycle create a unique path of Manufacturing List”

At present the company's product packaging mostly uses paper bags and for special circumstances resolutely sustainable development and work together with

abandoned composite bags to reduce the impact of packaging on the environment. Not only that the company also many high-quality Chinese enterprises to light up the

vigorously advocates the repeated recycling of packaging. In addition the company in the procurement of raw ecological background color.materials transportation strictly control the use of disposable packaging materials.

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ENVIRONMENTALSOCIAL AND

Adherence to Green Development 2024 GOVERNANCE(ESG) REPORT

Adherence to Green Development

With the growing concern over climate change regulators have also imposed requirements on the climate issues faced Risks and Opportunities

by various industries. Based on the disclosure recommendations of TCFD (Task Force on Climate-related Financial

Disclosures) JSJ has identified the impacts of extreme and transformational risks on the enterprise based on the

JSJ has deeply integrated the management of climate change risks and opportunities into its own risk identification

industry's best practices the climatic conditions of the places where it operates and with reference to the national

system. We have comprehensively sorted out potential risks such as production disruption and policy and regulation

policies and formulated a response plan.adjustments that may be triggered by climate change and at the same time we have captured opportunities such as

green transformation and development of emerging markets to realize controllable risks and grasp opportunities and

promote sustainable development of the enterprise.Climate Governance In response to climate change risks JSJ strictly abides by the Law of the People's Republic of China on Response to

To respond to the challenges posed by global climate change JSJ has constructed a rigorous climate governance Emergencies and formulates and implements internal systems such as Emergency Preparedness and Response

structure. We have integrated climate change governance into our daily ESG management work and regard climate Control Procedures and the Emergency Management System for Corporate Emergencies etc. JSJ has included natural

change governance as an important element of ESG governance. disaster disposal methods including meteorological disasters seismic disasters geologic disasters and oceanic

disasters in its emergency response plan to cope with environmental emergencies.In the future the Company will set up a three-tier governance structure to address climate change: the Board of

Directors will lead and oversee climate change issues and be responsible for considering climate change-related In the face of new opportunities brought by climate change JSJ actively seeks changes and implements precise

proposals; the ESG Committee will coordinate climate change-related work convene meetings to discuss and measures. Taking green design as the foundation the company integrates the concept of environmental protection

consider climate change-related proposals submitted by the ESG Specialized Group and submit the results of the from the initial stage of product development and makes all-round considerations on product structure and material

discussions to the Board of Directors; and the ESG Specialized Group will be responsible for the implementation of selection to ensure that the impact on the environment can be minimized throughout the life cycle of the products. At

climate change-related management. The ESG Specialized Group is responsible for the implementation of climate the same time we take green manufacturing as an important component continuously optimize the process in the

change related management etc. production process upgrade the equipment improve the energy efficiency and take practical action towards green

development so as to realize the harmonious coexistence between the enterprise and the environment.Climate strategy

For our greenhouse gas emission data in 2024 please refer to Appendix 1 ‘2024 Key Performance Data Sheet’ .JSJ has adopted a scientific approach to establish a climate change management strategy. Climate change risks and

opportunities are identified and assessed based on climate scenario analysis which identifies the Company's physical

and transformational risks as well as opportunities related to energy products and services.Physical risks include acute and chronic risks. For example heavy rainfall and flooding damages operational sites

operational infrastructure etc. and causes problems such as power outages in equipment and facilities leading to

operational disruptions and loss of assets. Transformation risks include policy and legal technical market and

reputational risks. For example the cost of excess carbon emissions is expected to rise as more and more industries

and companies are included in the carbon trading system; the transformation of low-carbon emission technologies

increases research and development investment in clean technologies; customer demand for low-carbon services and

green products gradually rises and the decline in market share for traditional energy-intensive products results in a

decline in revenue; and if the Company fails to meet the expectations of other customers or the public in the area of

energy conservation and consumption reduction and other areas of sustainability it may not be able to meet

customer or public If the Company fails to meet the expectations of other stakeholders such as customers or the

public in areas of sustainable development such as energy saving and consumption reduction the brand reputation of

JSJ may be affected.In addition we have identified opportunities for the Company because of climate change. For example increased

market demand for green and low-carbon products has created new opportunities for our green and low-carbon

products and the Company is using more energy-efficient production equipment to reduce operating costs.Based on the risks and opportunities identified we have developed a management strategy and implementation plan

to address climate change based on the identified exposures and opportunities and in line with our existing strategy.

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ENVIRONMENTALSOCIAL AND

Care for Employees Cohesion of New Talents 2024 GOVERNANCE(ESG) REPORT

04

Care for Employees

Cohesion of New Talents

Our actions

*Protect the Rights and Interests of Employees

*Create a Growth Platform

*Enhance Humanitarian Care

*Guarding Health and Safety

Our performance

13 Times 374 Persons 100%

The number of safety Employees participating The rate of occupational

training sessions in the safety training. health check-ups

0 Person 0 Number 100%

The number of deaths due to The number of safety The signing rate of

work-related accidents production accidents labor contracts

100%100%

The coverage rate of The staff training

social insurance coverage rate

4003 Hours 19.35%

The total training hours The training hours for employees have

for employees increased compared to 2023

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2024 ENVIRONMENTALSOCIAL ANDProtect the Rights and Interests of Employees GOVERNANCE(ESG) REPORT

Protect the Rights and Interests of Employees

Jinsanjiang firmly believes that employees are the core driving force for the development of the company. The Case Factory Open Day

company respects the rights and interests of employees prohibits any form of prejudice and discrimination and

fosters an equal and inclusive workplace atmosphere. In addition the company has established a high-quality talent On April 27 2024 Jinsanjiang successfully carried out an open day event for fresh graduates at the factory attracting

development system customizing career advancement paths for employees to meet their needs for further learning more than 30 upcoming graduates from South China University of Technology. This event aimed to showcase

and self-improvement. Moreover the company provides a rich compensation and benefits package for employees Jinsanjiang's corporate culture development history and future blueprint to the students through on-site visits and

strengthens the protection of their occupational health and safety enhances the sense of belonging among talents provided a detailed introduction to the company's management trainee program in order to attract more outstanding

and ultimately achieves shared growth between employees and the company. graduates to join the Jinsanjiang family.Legal Employment

Adhering to regulations such as the "United Nations Convention on Human Rights" the "Labor Law

of the People's Republic of China" the "Labor Contract Law of the People's Republic of China" and

the "Prohibition on the Use of Child Labor" Jinsanjiang in combination with standards for quality

management occupational health and social responsibility has established and improved the

"Recruitment Management System". This system clearly defines the company's code of conduct

human resource management recruitment management and prohibitions against forced labor.Adhere to equal Jinsanjiang upholds the principle of "equal opportunities and recruitment based on merit"

employment eliminates all forms of discrimination in recruitment and employment such as nationality race

gender religious belief and age and ensures that all employees and job applicants enjoy equal

employment opportunities.During the reporting period the company formulated and improved the "Jinsanjiang Employee Factory Open Day

Handbook" clarifying the rights and obligations of employees establishing policies against

discrimination prohibiting child labor and mandatory labor and conducted training and advocacy

Prohibition of for all employees. During the reporting period no incidents of child labor or mandatory labor were Adhering to the principles of diversity and inclusion we recruit talents through fair and open

child labor found in Jinsanjiang. selection choosing the best candidates. As of December 31 2024 Jinsanjiang has a total of

and forced labor 374 employees including 4 disabled personnel and 5 veteran employees collectively

Formation of a forming a diverse and vibrant workforce in our company.Diverse Workforce

Jinsanjiang is committed to creating a diverse international workforce and continuously

enriching the channels for talent acquisition. The company starts from three aspects: campus

recruitment social recruitment and internal recruitment to enrich the talent pool and

continuously optimize the talent structure. In terms of campus recruitment we maintain

long-term cooperative relationships with several well-known institutions and our 2024

campus recruitment will cover South China University of Technology Sun Yat-sen University Number of Male 266 Number of Chinese mainland 370

Jinan University The Hong Kong Polytechnic University and other higher education employees employees

Enrich the channels by gender Female 108 by region Overseas 4

for talent institutions. For social recruitment we have formulated relevant systems and widely attract

introduction talents through online platforms headhunting and other recruitment channels. The company

has established a recommendation channel internally and set up an incentive mechanism

providing diverse ways for talent introduction which helps talents to take their positions in a

timely manner and further enhances the overall competitiveness of the enterprise.

30 and below 30 126 High level 21

Number of Number of

employees 30-50 203 employees Middle level 28

by age by level

51 and above 45 Basic level 325

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ENVIRONMENTALSOCIAL AND

Create a Growth Platform 2024 GOVERNANCE(ESG) REPORT

Employee Well-being

The company adheres to the principle of combining individual and organizational goals

closely linking compensation incentives with the company's long-term development Case Staff team-building activity

and enhancing the enthusiasm of outstanding employees and key talents. In 2024

Jinsanjiang improved the "Compensation Management System" and the "Position

Compensation System Management Regulations" categorizing employees into five major job

Incentives categories: M P S A and O and designing a broadband salary scale for each category.In 2024 the company implemented an employee stock ownership plan involving

1113300 shares of stock with a transfer price of 8.875 RMB per share. The scope of

participants in this employee stock ownership plan includes the directors supervisors

Employees holding senior management core managers and supervisory personnel of the company

Share plan (including branches and subsidiaries) totaling 44 employees.In the same year the company implemented a stock incentive plan and held a board of

directors and board of supervisors meeting on May 20 2024 where it was agreed to

Stock grant a total of 1993998 shares of stock to 60 eligible incentive recipients at a price of

Incentive Plan 4.34 yuan per share. staff team-building activity

In addition to salary and equity incentives Jinsanjiang offers a wide range and variety

of other welfare benefits to all employees. Besides legal compliance with social

Case Christmas Party

insurance and housing provident fund contributions we provide dormitory and canteen

facilities for staff. The company also offers annual health check-ups regularly

Other organizes team-building activities and gifts festival presents thereby creating a

benefits humanized working environment for employees. During the reporting year Jinsanjiang

conducted a comprehensive optimization of the "Welfare Management System."

Leave Benefit

Relax

Family Visit Subsidies

Activity Festival

Tourism Activities

Birthday Benefits

Development Activities Christmas Party

Holiday Benefits

Departmental Team

Building Funds Diverse

Welfare System

Create a Growth Platform

Assurance Diet

Labor Protection Training SystemMeal Subsidies

Housing Provident Jinsanjiang takes talent development as an important strategy continuously improving the talent cultivation system

Fund Free Snack Distribution optimizing the staff promotion mechanism and establishing talent development plans that meet the needs of

management marketing operational administrative/logistics technical/professional and other positions. The company

Health

Health Check-ups continues to exert effort in selecting employing educating and retaining talents encouraging employees to enhance

their professional skills and cultivate their ability to identify and solve problems.Social Insurance

Jinsanjiang's Diverse Welfare System

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2024 ENVIRONMENTALSOCIAL ANDCreate a Growth Platform GOVERNANCE(ESG) REPORT

The company arranges mentorship guidance for new employees to help them adapt to

the working environment. At the same time the company provides a two-week training

New employee program for new employees covering the company's history and current status

mentoring organizational structure and departmental responsibilities corporate culture rules and Phase 1: 7 months of intensive training Phase 2: Job rotation Phase 3: Serve as the project leader

regulations and job skills etc. to assist new employees in smoothly integrating into

their new roles. 3 months of R&D & 4 months of supply In the process of rotation work in the According to the company's

chain: assessment after the end of center 70% of the work of management arrangement and personal wishes

each stage. trainees is consistent with other

The company gradually improves the development projects for technical talents Go into a center and work on it.Training of In the first four months the phased

employees in the department. During the period you need to

establishes a professional learning ecosystem and enriches the professional

technical backbones assessment set up by the management The leaders of the center prepare 1-2 independently lead a small team

development paths and resources for employees. trainee project team should be completed projects and communicate with the receive the task indicators of the

(such as: the whole process of the management trainee project team and center and assess them according to

simulated factory) send them to the management trainees the completion of the situation.During the reporting year the company formulated the "Successor Cultivation and Complete on-site related projects of the center to complete

Management System". This system explicitly stipulates that for employees who perform independently or cooperatively (such as independently as the assessment

Talent development

in management outstandingly in their positions (potential successors) the company will conduct

promoting 5S projects) content of the center. During this time

the management trainees are required

special cadre training to enhance the capabilities of existing cadres and reserve to participate in meetings and travel

potential leaders for the company. with the center leaders.Promotion Mechanism Case The demeanor of the management trainees of the class of 2024

The company has formulated the "Position System and Post Adjustment Management System" established 5 types of

career development paths improved the company's job map and provided an equal promotion platform for

employees.Category M (Management) The company has divided the management levels into 12 ranks according to the

Promotion Path actual situation.Class S (MarketingCategory) The company has divided the marketing levels into 7 ranks according to the

Promotion pathway actual situation.P Category (Technical/ The company divides the technical/professional levels into 8 ranks based on

Professional)

Promotion Pathway actual conditions.Class A (Administrative The company has divided the administrative and clerical levels into 7 ranks

Logistics and Clerical)

promotion pathway according to the actual situation.Type O (Operation type) According to the actual situation the company divides the operational levels into

Promotion pathway 6 ranks.Management Trainee Program

The demeanor of the management trainees of the class of 2024.Jinsanjiang has established an exclusive training system for fresh graduates in R&D sales and supply chain positions.In the reporting year the company formulated the "Management Trainee Training Management System" which Employee Training

through progressive training objectives and programs helps fresh graduates understand the company culture quickly Jinsanjiang focuses on the talent development system providing employees with a wealth of training courses and

adapt to their professional roles and become familiar with the job responsibilities of their positions. learning resources to meet their needs for career development and skill enhancement. In addition the company

arranges corresponding assessments for key training courses to test and consolidate employees' mastery of the course

content. In 2024 the company's total training hours reached 4003 hours with a training coverage rate of 100% for

employees.

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2024 ENVIRONMENTALSOCIAL ANDCreate a Growth Platform GOVERNANCE(ESG) REPORT

Training courses Course Introduction Training audience Training format

Classroom lectures +

Fire safety knowledge Fire alarm systems fire hydrant systems and fire extinguisher usage All staff hands-on practice

Major holiday safety (Spring Festival) Safety precautions during and after the festival period All staff Classroom lectures

Training for safety qualifications of main responsible personnel According to Article 6 of the "Provisions on Safety Training for Production and Operation Units

and safety management staff "the main responsible persons and safety management personnel must participate in the training Safety production management personnel Classroom lecturesorganized by the government and obtain a safety qualification certificate.Classroom lectures +

Sunstroke Prevention Definition of Heatstroke Preventive Measures and First Aid Methods All staff hands-on practice

Classroom lectures +

Emergency evacuation Emergency evacuation routes and precautions All staff hands-on practice

Chemical Safety Classification of Hazardous Chemicals Key Management Points and Emergency Response Measures Contact personnel Classroom lectures

Occupational health Occupational hazard risks and the correct use of PPE Personnel in contact Classroom lectures

Representatives of department managers

First aid knowledge First aid knowledge and the use of defibrillators and supervisors Classroom lectures

Major holiday safety (National Day) Safety precautions during and after the festival period All staff Classroom lectures

According to Article 6 of the "Provisions on Safety Training for Production and Operation Units

Training for the safety qualification certificates of main "the main responsible persons and safety management personnel must participate in the training The main person in charge of safety and the

responsible personnel and safety management staff organized by the government and obtain a safety qualification certificate. management personnel of safety production

Classroom lectures

Classroom lectures +

Treatment for burns Definition of Burns Preventive Measures and First Aid Methods All staff hands-on practice

Representatives of department managers

Safety Management System Key Points and Update Content of the Work Safety Management System and supervisors Classroom lectures

Environmental protection knowledge Waste classification and hazardous waste All staff Classroom lectures

Example of Offline Training Courses in 2024 (Environmental and Safety Category)

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ENVIRONMENTALSOCIAL AND

Enhance Humanitarian Care 2024 GOVERNANCE(ESG) REPORT

Case Gold Medal Team Leader Training Enhance Humanitarian Care

In response to the professional growth needs of employees the company launched the "Gold Class Supervisor Jinsanjiang has always attached great importance to employee welfare considering it crucial for enhancing

Training" course aimed at enhancing the management and leadership skills of class supervisors enabling them to organizational cohesion. The company provides various communication channels for employees to address their needs

lead their teams more effectively and improve work efficiency and quality. and assist those in difficulty. In addition the company organizes a variety of cultural and recreational activities to

safeguard the physical and mental health of employees and to strengthen their sense of identity and belonging to the

company.Establish Communication Channels

The company has established diverse communication channels for employees to reflect issues through various means.The company holds regular staff forums where on-the-spot responses and exchanges

Staff symposium are made to address issues and post-meeting discussions analyses and improvement

measures are developed for some of the requested items.Gold Medal Team Leader Training The company has set up a suggestion box and a wish wall for employees in the Staff suggestion box

and staff wish wall cafeteria encouraging them to speak freely. The administrative department summarizes

Case Online learning platform the suggestions monthly and publicizes the responses to all employees.In 2024 Jinsanjiang launched the "Jinsanjiang Business School" online learning platform allowing employees to learn The company has established a survey questionnaire for employee satisfaction and

in their fragmented time enhancing the convenience and experience of learning. The online learning method not only conducts on-site spot checks to collect summarize and analyze the needs of

increased employees' motivation to learn but also injected strong momentum into the continuous development of the Employee

satisfaction survey employees in modules related to logistics support and corporate services. It actively enterprise. establishes project teams for project initiation and improvement striving to provide the

best possible services and improvements for employees to the greatest extent.The company has a trade union which represents the employees in collective

Trade Union bargaining with the company on issues directly affecting the employees' interests such

as labor remuneration working hours rest and vacation insurance benefits labor safety

and health vocational training and so on.Case Staff Seminar

some online training courses (in-house training)

Staff Seminar

Some online training courses (external training)

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Guarding Health and Safety 2024 ENVIRONMENTALSOCIAL ANDGOVERNANCE(ESG) REPORT

Guarding Health and Safety

Assisting Employees in Difficulty

In 2024 a family member of a Jinsanjiang employee fell critically ill. The trade union immediately went to the hospital Jinsanjiang provides all employees with strong occupational health and safety protection. In the reporting year the

to accompany and support the treatment expressing deep condolences to the employee and their family. Upon company comprehensively revised the "Industrial Injury Management System" and renamed it the "Safety Incident

learning that the employee's family was facing financial pressure due to the education of two children the trade union Management System" which clarifies various types of industrial injuries and corresponding measures. This is to further

quickly allocated 40000 yuan to alleviate the employee's economic hardship and help the family through the difficult implement the company's safety policy of "Safety First Prevention Oriented Safe Development People-Centered."

time. The company not only generously provided financial assistance to the employee but also offered emotional

support demonstrating our firm commitment to the well-being of our employees always standing as their strongest The company has set a goal of "zero occupational diseases" for occupational health management regularly tests for

support. occupational hazards in the workplace and provides occupational health check-ups for employees. It organizes safety

and environmental training throughout the company to enhance employees' ability to protect their own health. During

the reporting period the company in conjunction with the property management company carried out emergency first

Enriching Cultural and Recreational Activities aid publicity and training with many employees participating in the first aid volunteer training.At the same time the company addresses pain points and difficulties in daily management by regularly holding

In 2024 Jinsanjiang organized a variety of cultural and entertainment activities holding celebration events during the occupational health communication meetings and comprehensively collecting employee demands.Chinese Spring Festival Dragon Boat Festival and Mid-Autumn Festival organizing employees to participate in sports In addition indicators related to employee occupational health have been incorporated into the performance appraisal

meetings. These activities helped employees to relieve work stress and enhanced the team's cohesion. of senior executives achieving a link between compensation and performance and stimulating management initiative.Case The First Staff Sports Games of Zhaoqing High-tech Industrial Development Zone

In November 2024 the first staff sports event of the High-Tech Zone was officially launched with Jinsanjiang taking

an active role in organizing staff participation. The sports event not only provided a platform for competitive exchange

among employees but also injected vitality into Jinsanjiang's team building becoming a vivid footnote to the

construction of corporate culture.Snapshot of the sports event

Case "The Secret to the Healthy Growth of Crisp Youth" Themed Sharing Session

In 2024 the Jinsanjiang Guangzhou office hosted a themed sharing event entitled "The Secret to the Healthy Growth

of Crisp Youth" featuring experts who explained psychological quality emotional management time planning

interpersonal communication and more. Through case analyses and interactive Q&A sessions employees were

guided to discuss workplace adaptation and the realization of self-worth.

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*

05

Reciprocal Benefit and Ahared Prosperity

Creating a Better New Life Together

Our actions

*Responsible Supply Chain

*Achieve Common Development

Our performance

46200 Yuan 2 Items

The cumulative amount of donations Industry-academia-research

over the past three years cooperation patents

1 Item 2 Items

Publish paper through industry- Take the lead in drafting the formulation

university-research cooperation of silica-related standards

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Responsible Supply Chain

Under the concept of sustainable development Jinsanjiang has formulated the "Procurement Management System"

and the "Supplier Selection and Evaluation Control Procedures". To enhance the effectiveness of the systems we Supplier Selection

further improved the comprehensive management framework for sustainable procurement combining the suppliers'

compliance statements and codes of conduct to form a comprehensive management system. This system covers the To implement the "Procurement Management System" and the "Supplier Selection and Evaluation Control Procedure"

entire process from supplier access to continuous cooperation ensuring that every link meets high standards of and to strengthen the enrollment of suppliers the company comprehensively assesses key factors such as supplier

sustainability and each component is tasked with the responsibility of moving towards sustainable development goals. product quality compliance delivery capability environmental and safety performance and price and implements a

monthly review and scoring system. Suppliers who score below 90 points are required to take corrective measures.At the same time we require suppliers to sign documents such as the "Procurement Framework Agreement" (including

the Supplier Code of Conduct) "Supplier Quality Assurance Agreement" "Supplier Environmental Agreement"

"Anti-bribery Pledge" and "Confidentiality Agreement" to ensure that suppliers adhere to ESG standards.Sustainable Procurement Policy

Sustainable Sustainable Sustainable Sustainable Sourcing

Procurement Planning Procurement Measures Procurement Evaluation Procurement Improvement and Preliminary Sample On-site Try it inevaluation Sign thecollecting of materials Testing audits

small

data batches

contract

Sustainable activities run through the entire lifecycle management of suppliers

The diagram shows the access process for Jinsanjiang suppliers

ESG Performance Management

Supplier Selection Performance Risk Management Collaboration and

Management Development

Jinsanjiang adheres to the principles of integrity and self-discipline committed to

Safe green and Anti-corruption Supplier re-audit Supplier meetings

environmentally creating a fair open and efficient business cooperation environment. Jinsanjiang has

friendly Quality Supplier phase-out Technical signed an "Anti-Bribery Pledge" with its core suppliers explicitly requiring them to

communications

Compliance in Safe and establish an anti-corruption management system to eliminate any form of corruption

operations environmentally unfair competition fraud and bribery.friendly

Relevant In addition Jinsanjiang encourages suppliers to report any violations of the

diversification Legal employment commitment letter. To facilitate reporting the company has specifically provided a

Anti-corruption reporting email in the "Anti-Bribery Commitment Letter" where suppliers can directly

send emails to report any violations. Jinsanjiang promises that all reports will be taken

seriously and investigated fairly and corrective measures will be taken to maintain a

clean and honest cooperative relationship.Supplier Compliance Statement

The company requires its core suppliers to establish an ISO 9001 quality management

Integrity Commitment Prohibition of Quality Commitment Environmental system and to sign a "Product Quality Assurance Agreement" with the suppliers of raw

Child Labor Protection and auxiliary materials. The agreement mandates that suppliers commit to ensuring

that the content of harmful substances in the products they provide meets the

requirements of the EU ROHS directive. It also requires that product quality is

maintained during transportation to avoid physical chemical and biological

Sustainable Procurement System

Quality Pass contamination; that products are strictly controlled during production processing and transportation to prevent intentional damage and contamination; and that packaging

materials must be non-toxic harmless and free of pungent odors. In addition the

company will conduct regular and irregular audits of the suppliers' quality

management systems.

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Risk Management

The company continuously evaluates the ESG performance of key suppliers through

The company requires core suppliers to provide system certificates such as ISO 45001 various means such as on-site audits survey questionnaires and communication

for occupational health and safety management systems and ISO 22000 for food safety meetings and provides support for the construction of suppliers' sustainable

management systems. A "Supplier Environmental Agreement" is signed with core capabilities based on the evaluation results. In accordance with the requirements of

suppliers mandating them to strengthen environmental protection. supplier performance management we regularly assess the performance of suppliers

Safety and Supplier Review from dimensions such as quality compliance delivery cost and ESG performance and

Environmental require suppliers with scores below 90 points to make improvements.Protection Raw The raw materials used in producing products must meet the national

Materials local and industrial legal and regulatory requirements for

environmental protection. Jinsanjiang has established a strict supplier phase-out mechanism implementing a

grading management system ranging from A to D. The company regularly conducts

on-site audits of supplier factories and take actions based on the assessment results:

Priority is given to using production processes and equipment that are

Production pollution-free or have minimal pollution and production processes or

suppliers who score below 65 points for three consecutive months those rated as

Equipment equipment that have been prohibited by national or local regulations D-level suppliers annually and those who have failed the audit three times or more

must not be used.Supplier Phase-out within the past year will have their qualified supplier status revoked. In 2024

Jinsanjiang conducted annual on-site audits of the two major raw material suppliers to

Measures must be actively taken to control excessive pollutants (waste ensure that all the suppliers' indicators meet Jinsanjiang's high standard requirements.Pollutants water waste gas solid waste noise etc.) emitted during the

production process and practical plans must be formulated to meet

national or local emission standards within the specified time frame.A Grade score between 90-100

Packaging priority is given to using recyclable packaging materials to avoid waste

Materials of resources.B Grade score between 80-89

Transportation The emissions of waste gas noise and washing waste water from the C Grade score between 65-80

Vehicles transportation vehicles used must comply with relevant laws and

regulations.D Grade score below 65 Disqualify the supplier depending on the circumstances

In the "Procurement Framework Agreement" it is clearly stated that suppliers must

fulfill the following social responsibilities: prohibit the use of child labor forced labor

and human trafficking comply with regulations on working hours compensation and Collaboration and Development

other working conditions and purchase social insurance for each employee; the

Employment in products provided must be manufactured under conditions that adhere to Jinsanjiang communicates the concept of sustainable development to suppliers through procurement contracts and

accordance with environmental protection and occupational health and safety principles; and it should supplier meetings sharing experiences and methods related to ESG management

the law be ensured that employees are not threatened by health and safety issues.Empower suppliers in building their capabilities in compliance adherence and sustainable development assist

suppliers in improving their ESG performance and jointly create a green supply chain. To this end we conduct ESG

professional training for our internal teams to ensure a deep understanding and application of sustainable

management methods within the company. Externally we hold regular meetings with suppliers to exchange ideas

establish a closer partnership with them and jointly promote sustainable development.

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Achieve Common Development 2024 GOVERNANCE(ESG) REPORT

Achieve Common Development

Case The 25th Organic Silicone Fine Chemicals Technology Exchange Conference

Facilitating Industry Co-prosperity

From November 6th to 8th the "25th Organic Silicon Fine Chemicals Technology Exchange Conference" hosted by

Jinsanjiang actively carries out technical cooperation with research institutions industry associations universities etc. Beijing Guohua New Material Technology Research Institute and co-organized by the ACMI Silicon Material

participating in the formulation of industry standards industry-academia-research cooperation and industry exchange Development Center and Beijing Fluorosilicone Technology Development Co. Ltd. was grandly held. Jinsanjiang as a

activities promoting shared prosperity within the industry. sponsor of this industry event showcased its BACOSIL series of precipitated silica for silicone rubber and diverse

solutions demonstrating its innovative achievements and strength in the field of silicon materials and deepening the

communication and cooperation with industry peers.In 2024 the company took the lead in drafting two standards related to

silicon dioxide

Take the lead in drafting the "Evaluation Requirements for Green Factories of

Precipitated Silica (T/COCIA 34—2024)" which was released on July 15 2024;

Industry Standard Take the lead in drafting the"Technical Specification for Evaluation of Green

Development Design Products - Precipitated Silica (T/COCIA 33—2024)" which was

released on July 15 2024

Jinsanjiang has established in-depth cooperative relationships with institutions

such as South China University of Technology and Guangzhou Institute of

Quality Supervision and Inspection. In 2024 the company published papers

and applied for multiple patents through industry-academia-research

cooperation.Co-published papers Jinsanjiang participating in the 25th Organic Silicon Fine Chemicals Technology Exchange Conference

Jinsanjiang and its partners jointly published a research paper in the

European Polymer Journal: "Bis-acrylate functionalized enone as Case Jinsanjiang wins the "Industry Innovation Leadership Award"

photoinitiators for UV-LED photopolymerization"

On November 29 2024 Jinsanjiang was honored to be invited to participate in the "High-End Service and

Industry-Academia- Cross-Border Export Forum" hosted by the Guangzhou High-End Service Industry Development Promotion

Research Joint patent application Association and was awarded the "Industry Innovation Leadership Award". The person in charge of Jinsanjiang

Collaboration attended the event listened carefully to the experts' opinions and participated in the discussion further broadening

A method for preparing directionally grown silica nanowires and its the international perspective and laying a more solid foundation for Jinsanjiang's brand export strategy.application 2024108765946

An ultra-high concentration mesoporous silica hollow sphere and its

preparation method 2024104778735

The company actively participates in industry exchange activities discussing

cutting-edge silica technology with industry experts and working together to

Industry Exchange enhance the overall competitiveness of the industry.Activities

Jinsanjiang attending the Guangzhou High-End Service and Cross-Border Export Forum and Certification Ceremony.

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Case The 10th Member Congress of the China Oral Cleaning and Care Products Association in 2024 and the 5thInternational Oral Care Academic Seminar Focusing on Public Welfare

From November 3rd to 6th 2024 the Tenth Member Congress and the Fifth International Oral Care Academic

In the process of globalization Jinsanjiang has always attached importance to social welfare. Through business

Seminar were grandly held in Shenzhen Guangdong. As the vice-president unit of the association Jinsanjiang

innovation charitable donations and employee volunteer activities it has improved community infrastructure

discussed in-depth the new trends new applications and new challenges in the oral care industry during the

supported the development of rural communities and fulfilled its corporate social responsibilities in a practical manner.meeting. At this seminar the paper "Research on Silicon Dioxide with the Function of Blocking Dentin Tubules"

submitted by Jinsanjiang won the Second Prize for Excellent Papers at the "Fifth International Oral Care Academic

Seminar."

Case 2024 Public Welfare Donation

In 2024 Jin Sanjiang continued to participate in the donation activity "I Plant a Tree for My Hometown Jointly Building

the Zhaoqing Concentric Forest". In the activity Jinsanjiang donated 6000 yuan to adopt seedlings contributing to

the green development of Zhaoqing. In the future Jinsanjiang will consistently implement President Xi Jinping's

thought on ecological civilization persistently engage in tree planting and forestation activities and promote the

construction of a beautiful China.Jinsanjiang participating in the 5th International Oral Care Academic Seminar and award ceremony.Case 2024 White Carbon Black Nanosilica Material Technology Exchange Seminar

At the "Precipitated Silica" forum on November 8 2024 the Vice President of Research and Development at

Jinsanjiang was invited as a guest expert and delivered a report speech on the topic of "A Method for Preparing and

Characterizing High Dispersion Precipitated Silica". He shared Jinsanjiang's experience and insights in the research

and development and manufacturing of high dispersion precipitated silica and engaged in discussions and

interactions with university professors and industry experts present at the event jointly exploring the future

development direction of the precipitated silica industry.Jinsanjiang participating in the "2024 White Carbon Black Nano Silicon Material Technology Exchange Conference."

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Appendix 2024 GOVERNANCE(ESG) REPORT

Appendix

环En境vi指ron标mental Performance Unit 2024年 2024 2023年Appendix I 2024 Key Performance Data Sheet

Waste Management

Hazardous Waste Emissions Tonnes 1.76

Hazardous Waste Emissions Intensity Kg/10000 yuan 0.046

Environmental Performance Unit 2024

Hazardous Waste Emissions Intensity Tonnes 659.56

Energy Consumption

Non-hazardous Waste Recycling Quantity Tonnes 659.56

Total Energy Consumption Tonnes of standard coal 16695.00

Non-hazardous Waste Emissions Intensity Kg/ 10000 yuan 17.11

Direct Energy Consumption Tonnes of standard coal 11194.35

Non-hazardous Treatment Ratio of Industrial Solid Waste % 99.73

Indirect Energy Consumption Tonnes of standard coal 5500.65

Environmental Performance

Total Energy Consumption Intensity Tonnes of standard coal / 10000 yuan revenue 0.43

Number of Environmental Violation Penalties Cases 0

Greenhouse Gas Emissions

Greenhouse Gas Emissions (Scope 1+Scope 2) Tonnes of carbon dioxide equivalent 38353.88

GHG Emissions (Scope 1) Tonnes of carbon dioxide equivalent 18221.74 Governance Indicators Unit 2024 2023年GHG Emissions (Scope 2) Tonnes of carbon dioxide equivalent 20132.15 Number of Directors People 6

Greenhouse Gas Emissions Intensity (Scope 1+Scope 2) Tonnes CO2e/ 10000 yuan revenue 0.99 Number of Non-Independent Directors People 4

Water Resource Use Number of Female Directors People 1

Total Water Consumption 10000 tonnes 95.36 Percentage of female directors % 16.7

Water Consumption Intensity Tonnes/10000 yuan revenue 24.73 Number of shareholders' meetings held in FY2024 Times 1

Recycled Water Utilization Rate % 7.76 Number of board meetings held in FY2024 Times 5

Wastewater Discharge Number of supervisory board meetings held in FY2024 Times 6

Wastewater Discharge Quantity 10000 tonnes 77.15

Wastewater Discharge Intensity Tonnes/ 10000 yuan 20.01 R&D Innovation Unit 2024 2023年Atmospheric Pollutants R&D investment 10000 yuan 1781.69

Particulate Emissions Tonnes 7.95 R&d investment as a percentage of company's revenue % 4.62

VOCs Tonnes 1412.65 R&D workforce People 50

Nitrogen Oxides Emissions Tonnes 3.14 Number of new patents granted during 2024 / 7

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2024 ENVIRONMENTALSOCIAL ANDAppendix GOVERNANCE(ESG) REPORT

R&D Innovation Unit 2024 2023年 Employee Recruitment Unit 2024

Total patent authorizations / 134 Proportion of disabled employees % 1.06%

Total patents granted / 105 Number of veteran employees People 5

Total intellectual property rights / 150 Proportion of veterans % 1.34%

Proportion of female executives % 30%

Rate of labor contract signing % 100.00%

Responsible Marketing Unit 2024 2023年Social insurance coverage rate % 100.00%

Lawsuits Related to False Marketing Claims / 0

Training Hours Received Unit 2024

Employee Recruitment Unit 2024

Number of participants in employee training People 374

Total number of employees People 374 Total duration of employee training Hours 4003

Divided by gender     Average training duration per employee Hours 10.17

Total number of male employees People 266 Number of trained individuals by gender    

Total number of female employees People 108 Number of male employees trained People 266

Divided by age     Number of female employees trained People 108

The total number of employees aged 30 and below People 126 Total trained hours divided by gender    

The total number of employees aged between 31-50 People 203 Total training hours for male employees Hours 2847.05

The total number of employees over 50 years old People 45 Total training hours for female employees Hours 1155.95

Divided by region  

Employees in Mainland China People 370 Health and Safety Unit 2024

Employees in Hong Kong Macau Taiwan and overseas People 4

Amount of investment in safety production Yuan 353181

Divided by level     Number of people suffering from occupational diseases People 0

Senior management People 21 Number of safety training sessions / 13

Middle-level People 28 Number of employees participating in safety training People 374

Grassroots People 325 Average duration of safety training per person Hours 81

Number of disabled employees hired People 4 Occupational health examination rate % 100

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Appendix

Health and Safety Unit 2024

Number of deaths due to work-related incidents People 0 Appendix II GRI Standard

Number of safety production accidents Items 0

GRI Description Corresponding Chapter

GRI 2 General disclosure 2021

Number of Suppliers Unit 2024

The organization and its reporting practices

Total number of suppliers / 269

2-1 Organizational details About the Report

Divided by region    

Entities included in the organization’s

2-2 sustainability reporting About the Report

East region / 210

Reporting period frequency and

2-3 contact point About the Report

Central region / 9

2-4 Restatements of information About the Report

Northeast region / 3

Activities value chain and other

2-6 business relationships Company Profile

West region / 8

Activities and worker

South region / 39

2-7 Employees Care for Employees Cohesion of New Talents

Supplier localization ratio (local procurement ratio) % 13%

Governance

2-9 Governance structure and composition Refining Governance Crafting a New

Vision of Growth

Community Investment Unit 2024

2-12 Role of the highest governance body Refining Governance Crafting a New in overseeing the management of impacts Vision of Growth

Total accumulated donation amount

over the past three years Yuan 46200 2-13 Delegation of responsibility for Refining Governance Crafting a New managing impacts Vision of Growth

2-14 Role of the highest governance body Refining Governance Crafting a New Vision of Growth

Economic Performance Unit 2024 2-16 Communication of critical concerns Refining Governance Crafting a New Vision of Growth

Total assets 10000 yuan 73085.00 Strategy policies and practices

Revenue 10000 yuan  38554.95 2-22 Statement on sustainable development Refining Governance Crafting a New strategy Vision of Growth

Total profit 10000 yuan 6058.93 2-27 Compliance with laws and regulations Refining Governance Crafting a New Vision of Growth

Net rate of return to parent % 13.84 2-28 Membership associations ESG Performance and Honors

Tax payment 10000 yuan 2968.68 Stakeholder engagement

Gearing ratio % 19.31 2-29 Approach to stakeholder engagement Refining Governance Crafting a New Vision of Growth

Basic EPS yuan/share 0.23 GRI 3 Material Topics 2021

3-1 Process to determine material topics Refining Governance Crafting a New Vision of Growth

3-2 List of material topics Refining Governance Crafting a New

Vision of Growth

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GRI Description Corresponding Chapter GRI Description Corresponding Chapter

3-3 Refining Governance Crafting a New Management of material topics Vision of Growth GRI 306 Waste 2020

Waste generation and significant Green development Shoulder the New

GRI 204 Procurement Practices 2016 306-1 waste-related impacts Mission

Appendix I 2024 Key Performance Management of significant waste-related Green development Shoulder the New

204-1 Proportion of spending on local suppliers Data Sheet 306-2 impacts Mission

Appendix I 2024 Key Performance Data

GRI 205 Anti-corruption 2016 306-3 Waste generated Sheet

Operations assessed for risks related to Refining Governance Crafting a New

205-1 corruption Vision of Growth GRI 308 Supplier Environmental Assessment 2016

Communication and training about Refining Governance Crafting a New New suppliers that were screened using Reciprocal Benefit and Shared Prosperity

205-2 anti-corruption policies and procedures Vision of Growth 308-1 environmental criteria Creating a Better New Life Together

Confirmed incidents of corruption and Refining Governance Crafting a New Negative environmental impacts in the supply Reciprocal Benefit and Shared Prosperity

205-3 actions taken Vision of Growth 308-2 chain and actions taken Creating a Better New Life Together

GRI 206 Anti-competitive Behavior 2016 GRI 401 Employment 2016

Legal actions for anti-competitive behavior Refining Governance Crafting a New Benefits provided to full-time employees that are Care for Employees Cohesion of New

206-1 anti-trust and monopoly practices Vision of Growth 401-2 not provided to temporary or parttime employees Talents

GRI 302 Energy 2016 GRI 403 Occupational Health and Safety 2018

Green development Shoulder the Occupational health and safety management Empowerment through Digital Intelligence New Mission 403-1 system Innovation Leading a New Future302-1 Energy consumption within the organization

Appendix I 2024 Key Performance Care for Employees Cohesion of New Talents

Data Sheet

Empowerment through Digital Intelligence

Green development Shoulder the 403-2 Hazard identification risk assessment and Innovation Leading a New Future

New Mission incident investigation

302-3 Energy intensity Care for Employees Cohesion of New Talents

Appendix I 2024 Key Performance

Data Sheet Empowerment through Digital Intelligence

403-3 Occupational Health Services Innovation Leading a New Future

302-4 Reduction of energy consumption Green development Shoulder the Care for Employees Cohesion of New Talents

New Mission

Worker participation consultation and Empowerment through Digital Intelligence

302-5 Reductions in energy requirements of Green development Shoulder the 403-4 communication on occupational health Innovation Leading a New Future

products and services New Mission and safety Care for Employees Cohesion of New Talents

GRI 303 Water and Effluents 2018 Empowerment through Digital Intelligence Worker training on occupational health

403-5 Innovation Leading a New Futureand safety Care for Employees Cohesion of New Talents

303-1 Interactions with water as a shared Green development Shoulder the

resource New Mission Empowerment through Digital Intelligence

Promotion of worker health Innovation Leading a New Future

303-2 Management of water discharge-related Green development Shoulder the

Care for Employees Cohesion of New Talents

impacts New Mission

Prevention and mitigation of occupational Empowerment through Digital Intelligence

303-4 Water discharge Appendix I 2024 Key Performance 403-7 health and safety impacts directly linked

Innovation Leading a New Future

Data Sheet by business relationships Care for Employees Cohesion of New Talents

303-5 Water consumption Appendix I 2024 Key Performance Empowerment through Digital Intelligence Data Sheet Workers covered by an occupational Innovation Leading a New Future

403-8 health and safety management system

Care for Employees Cohesion of New Talents

GRI 305 Emissions 2016

403-9 Appendix I 2024 Key Performance Data Work-related injuries

Appendix I 2024 Key Performance Sheet 305-1 Direct (Scope 1) GHG emissions Data Sheet Empowerment through Digital Intelligence

403-10 Work-related ill health Innovation Leading a New Future

305-2 Energy indirect (Scope 2) GHG emissions Appendix I 2024 Key Performance Care for Employees Cohesion of New TalentsData Sheet

305-3 Appendix I 2024 Key Performance Training and Education 2016Other indirect (Scope 3) GHG emissions Data Sheet

Average hours of training per year per Appendix I 2024 Key Performance Data

305-4 GHG emissions intensity Appendix I 2024 Key Performance

404-1 employee Sheet

Data Sheet

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) Appendix I 2024 Key Performance

and other significant air emissions Data Sheet

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Appendix 2024 GOVERNANCE(ESG) REPORT

GRI Description Corresponding Chapter Appendix

404-2 Programs for upgrading employee skills and Care for Employees Cohesion of New transition assistance programs Talents

Appendix III Abbreviation

GRI 405 Diversity and Equal Opportunity 2016

Diversity of governance bodies and Care for Employees Cohesion of New

405-1 employees Talents 简称 全称

GRI 406 Anti-discrimination 2016

SDGs Sustainable Development Goals

Incidents of discrimination and corrective Care for Employees Cohesion of New

406-1 actions taken Talents GRI The Global Reporting Initiative

GRI 408 Child Labor 2016

CNAS China National Accreditation Service for Conformity Assessment

Operations and suppliers at significant risk Care for Employees Cohesion of New

408-1 for incidents of child labor Talents CRM Customer Relationship Management

GRI 409 Forced or Compulsory Labor 2016

DCS Distributed Control System

Operations and suppliers at significant risk Reciprocal Benefit and Shared Prosperity

409-1 for incidents of forced or compulsory labor Creating a Better New Life Together MES Manufacturing Execution System

GRI 414 Supplier Social Assessment 2016

SAP Systems Applications and Products in Data Processing

New suppliers that were screened using Reciprocal Benefit and Shared Prosperity

414-1 social criteria Creating a Better New Life Together EMS Energy Management System

Negative social impacts in the supply chain Reciprocal Benefit and Shared Prosperity

414-2 and actions taken Creating a Better New Life Together PLM Product Lifecycle Management

GRI 416 Customer Health and Safety 2016

CCP Critical Control Point

Assessment of the health and safety impacts Empowerment through Digital Intelligence

416-1 of product and service categories Innovation Leading a New Future GMP Good Manufacturing Practice

GRI 417 Marketing and Labeling 2016

PPE Personal Protective Equipment

Requirements for product and service Empowerment through Digital Intelligence 417-1 information and labeling Innovation Leading a New Future COD Chemical Oxygen Demand

417-3 Incidents of non-compliance concerning Appendix I 2024 Key Performance Data marketing communications Sheet VOC Volatile Organic Compounds

TCFD Task Force on Climate-related Financial Disclosures

ROHS Restriction of Hazardous Substances

89 90 91 92 93 94 95 96 97 98 99 100Customized silicon materials

| Create value for customers | Realize the dreams of employees | Contribute to society

Jinsanjiang (Zhaoqing)Silicon Materials Co. Ltd.No.15 Chuangye RoadHigh-tech Zone Zhaoqing Guangdong China.

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