Add: No.23 Jiangshan Avenue, High-tech Development Zone, Suqian City, Jiangsu ProvinceTel: 0527-80805772Fax: 0527-80805929E-mail: pvm@boqianpvm.comWebsite: www.boqianpvm.com
Jiangsu Boqian New Materials Stock Co., Ltd.
2024Social Responsibility Report
Jiangsu Boqian New Materials Stock Co., Ltd.
CONTENTS
Opening
Conclusion
Safeguarding the GreenEnvironment
Building a StrongGovernance Foundation
Sharing DevelopmentAchievements
Producing ExceptionalProducts
About this Report 03Chairman's Message 05Introduction to the Company 07
Environmental Compliance andEcosystem Protection 49Energy and Addressing Climate Change 53Pollution Prevention and Control 57Resource Utilization 62
Corporate Governance 13Investor Relations 17ESG Management 18Risk Internal Control 22Business Ethics 24
Employee Rights and Benets 67Health and Safety 70Employee Growth 73Empowering Society 79
Product Quality 29Customer Service 32Innovation-Driven Development 34Intelligent Manufacturing & Data Security 38Supply Chain Security 44
Key Performance Table 81Indicator Index 83Feedback from Readers 87
2024 Social Responsibility Report OpeningBuilding a StrongGovernance Foundation
Producing ExceptionalProducts
Safeguarding theGreen Environment
Sharing DevelopmentAchievementsConclusion
0304
About this Report
Reporting Period
Basis for Preparation
Information Sources
Access to the Report
Addressing and Representation
This report is the rst annual Environmental, Social, and Governance (ESG) report released by Jiangsu Boqian New MaterialsStock Co., Ltd. for stakeholders. The report details the Company's practices and performance in the fields of environment,society, and governance in 2024, aiming to effectively communicate with stakeholders and systematically address theirexpectations and demands.
For the period from January 1, 2024 to December 31, 2024, certain aspects of the Report are moderately extended tosurrounding years to enhance comparability and foresight.
? Guidelines No. 14 of Shanghai Stock Exchange for Self-regulation of Listed Companies - Sustainability Report (Trial)? Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE — Compilation of Sustainable Development
Reports? Sustainable Development Goals (SDGs): A Corporate Action Guide? GRI Standards? Practical Guide to Sustainability Reporting of Listed Companies by China Association for Public Companies? CASS-ESG 6.0
The data used in this Report is sourced from the Company's actual operational data, publicly available government data, annualnancial data, internal relevant statistical reports, third-party survey questionnaires, and third-party evaluation interviews. Thenancial data in this Report is presented in CNY. In case of any discrepancies with the nancial report, the nancial report shallprevail.
The electronic version of this Report can be accessed on the Shanghai Stock Exchange website (http://www.sse.com.cn).
the Company, Boqian,Boqian New Materials
Refer toJiangsu Boqian New Materials Stock Co., Ltd.Guangxin NanoRefer toNingbo Guangxin Nano Materials Co., Ltd.Guidelines No. 14 of SSERefer to
Guidelines No. 14 of Shanghai Stock Exchange for Self-regulation of ListedCompanies - Sustainability Report (Trial)Guide No. 4 of SSERefer to
Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE— Compilation of Sustainable Development ReportsRMB, RMB 10,000 andRMB 100 million
Refer to
Renminbi 1 Yuan, Renminbi 10,000 Yuan and Renminbi 100 million Yuan,respectivelyReporting PeriodRefer toYear 2024
Opening
2024 Social Responsibility Report OpeningBuilding a StrongGovernance Foundation
Producing ExceptionalProducts
Safeguarding theGreen Environment
Sharing DevelopmentAchievementsConclusion
0506
Chairman's Message
Dear investors, partners, employees, and friends from all walks of life,2024 was a year brimming with Boqian New Materials' relentless efforts to forge ahead towards high-quality development. As a pioneerin the eld of new nano-metallic materials for electronic components, we are deeply aware that every technological breakthrough carriesthe mission of industrial upgrading, and every innovative achievement bears the responsibility of revitalizing national industries. At thispivotal moment of the "14th Five-Year Plan", Boqian New Materials remains steadfast in its commitment to "making the world morelow-carbon and life more beautiful". We integrate technological innovation and green development into our corporate DNA, not onlyachieving our own high-quality growth but also contributing Boqian's wisdom to the progress of the industry. This report is not only areview of our efforts over the past year, but also a sincere dialogue with all partners who care about the growth of Boqian New Materials- a solemn commitment to responsibility and accountability.
Innovation EmpowermentBoqian New Materials continuously explores cutting-edge technologies, with focuses on the core business of ultrane nano-metallicmaterials for electronic components. We develop and design products tailored to the needs of diverse consumer groups worldwide,while driving industry transformation orderly. Our achievements, from the independent development of high-performance capacitorelectrode nickel powder to the drafting and formulation of China's rst industry standard for nickel powder used in capacitor electrodesand to passing the "Jiangsu Fine Product" certication, all reect our R&D team's relentless dedication, showcase our perseveranceand hard work spirit and present our unwavering commitment to the core values of "Persistence, Integrity, Pragmatism, Responsibility,Innovation, and Sharing". By the end of 2024, the Company holds a total of 164 valid authorized patents.The ultimate value of technological innovation lies in serving society. Boqian New Materials is enabling breakthroughs in "lightweightingand miniaturization" applications in consumer electronics, new energy vehicles, communication equipment, aerospace, etc, and isaccelerating the validation work of energy storage materials and precious metal substitutes. In the future, we will continue to increaseinvestment in technological innovation, strengthen cooperation with globally renowned semiconductor and peripheral electronic devicecompanies, deepen the industry-academia-research integration, rely on provincial postdoctoral workstations and municipal enterprisetechnology R&D centers, and other platforms, attract professional scientific and technological personnel from home and abroad tojoin the Company and continuously deepen cooperation with many well-known higher education institutions and research institutesnationwide to accelerate the transformation of scientic and technological achievements into tangible productive forces and promote thesustainable development of the Company.Green DevelopmentGuided by the "carbon peaking and carbon neutrality" goals, Boqian New Materials regards green development as an essentialcommitment to coexisting harmoniously with the ecosystem. We adhere to the action guidelines of "complying with regulations,preventing pollution, saving energy and reducing consumption, and making continuous improvement", aiming to make green afundamental principle for the high-quality development of the Company. The Company has been awarded the title of provisional"Green Leading Enterprise", and its subsidiaries have received honors such as provincial "Green Factory" and provincial "Water-Saving Enterprise". These are the tangible results Boqian has delivered in embodying the concept of green development. In 2024, weinvested a substantial amount of funds in environmental protection. We fully utilized clean energy, with an annual power generationfrom our photovoltaic systems exceeding 3.36 million kWh. We have surpassed the energy conservation target, with the Suqian basesaving 1.5198 million kWh in annual energy consumption compared to the target, and the Ningbo base saving 5.608 million kWh inannual energy consumption compared to the target. Additionally, we have advanced green manufacturing through digitalization andintelligentization, leading to the Company's recognition as a Jiangsu Province Intelligent Manufacturing Workshop and enabling moreefcient and cleaner production.As a pioneer in the new materials industry, we will continue to explore low-carbon technologies to develop greener production processof nano materials, while contributing to the harmonious coexistence of humanity and nature.People-oriented Philosophy
Employees are the most valuable asset of Boqian New Materials. We adhere to the "people-oriented" philosophy, striving for excellencein links including talent selection, development, utilization, and retention. Through the "one-person-one-salary" compensation strategyand a multi-channel promotion system, we provide a growth platform for every employee. At the same time, we focus on cultivatingemployees' international perspectives, share the achievements of enterprise development with employees, and realize a dynamic win-win situation between business development and employee growth.Boqian moves forward with talents as the guiding force, and empowers talents to venture far with the oar of growth. In collaborationwith renowned domestic research institutes, we have established a postgraduate internship base and launched the annual "BoqianScholarship" to support the growth of scientic talent and sow the seeds of hope for the future of the industry.Standing at this new starting point, Boqian New Materials will remain innovation-driven and responsibility-guided. In the new nanomaterials field, we will relentlessly push boundaries, champion co-creation, and keep sharing. Our ultimate mission is to forge acentury-old enterprise that leads through innovation, thrives on technology, and is respected by all. Moving forward, we will furtherrene corporate governance, strengthen ESG management, and repay every partner who trusts Boqian with better products, greenerproduction, and warmer commitment.Finally, we extend our heartfelt gratitude to our investors for their trust, our partners for their support, our employees for theirdedication, and all sectors of society for their supervision. No single step of Boqian's growth could have been taken without yourcompany. Let us move forward hand in hand, harnessing the wisdom of technology and the spirit of responsibility, to co-create abrighter future!
Wang Liping, Chairman ofJiangsu Boqian New Materials Stock Co., Ltd.
August 2025
2024 Social Responsibility Report OpeningBuilding a StrongGovernance Foundation
Producing ExceptionalProducts
Safeguarding theGreen Environment
Sharing DevelopmentAchievementsConclusion
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Company ProleJiangsu Boqian New Materials Stock Co., Ltd., founded in 2010, is a national high-tech enterprise integrating the R&D,production and sales of high-end nanometer metal powder materials, and one of the pioneers in the R&D and industrialapplication of nanometer materials in China. It has seven domestic and foreign subsidiaries and branches.Since its establishment, the Company has been committed to the prospective development of nano-metallic materials. With aprofessional R&D team, it aims to provide customers with lightweight and miniaturization product overall plan. The new materialsdeveloped by the Company have good application prospects in consumer electronics, automotive electronics, communications,industrial automation, aerospace and other elds.The Company uses physical vapor deposition (PVD) at atmospheric pressure to prepare submicron metal, a technology thathas lled a crucial gap in domestic industrialization. As the sole drafting unit, the Company established China's rst industrystandards for nickel powder for capacitor electrodes and currently leads the world in the large-scale production and commercialsales of high-end metal powder materials for nanoscale electronic equipment.
Products
The Company's current product range includesnano-grade and submicron nickel powder,submicron and micron copper powder, silverpowder, silver-coated copper powder, andalloy powder. These products are widelyused in electronic components, new energy,semiconductor and other fields, providingkey material support for sectors such asconsumer electronics, automotive electronics,communication, industrial automation, aerospace,among others. Leveraging advanced materialtechnology, the Company's products signicantlypromote the miniaturization and high-frequencydevelopment of electronic components,help achieve cost reduction and efficiencyimprovement in sectors like photovoltaicsand clean energy, and notably enhance theperformance of new energy battery materials.With its leading technology and large-scaleproduction capability, The Company has becomea key supplier in the global high-end metalpowder market, continuously driving innovationand upgrading of the industrial chain.Company Culture
Introduction to The Company
VisionMissionCore Values
To become arespected centennial
enterprise leadingin innovation anddriven by technology
To make the worldmore low-carbonand life morebeautiful
Persistence, Integrity,Pragmatism,Responsibility,Innovation, and
Sharing
Product SEM Photographs
2024 Social Responsibility ReportSharing DevelopmentAchievementsConclusion
2024 Social Responsibility Report OpeningBuilding a StrongGovernance Foundation
Producing ExceptionalProducts
Safeguarding theGreen Environment
Sharing DevelopmentAchievementsConclusion
0910
Development History
2010
2011
2012
2013
20142016
201520172018
2019
2020
2021
2023
2024
? The New Materials IndustrialPark was established inSuyu District, Suqian City,Jiangsu Province. JiangsuBoqian New MaterialsCo., Ltd. was establishedformally.
? The construction of the NewMaterials Industrial Park FirstPhase Project started.
? The Group Chairman
Wang Liping was electedas the deputy of the 12thNational People's Congress,who offered advises andsuggestions for the economicdevelopment of JiangsuProvince.
? The Company wasrecognized as a NationalHigh-Tech Enterprise.
? The Company was awarded
as "Advance Unit ofTechnological Innovation","Advance Unit of OperationManagement" in Suqian City.? The project "Nano
Metal Powder Researchand Development andIndustrialization" wasincluded in the JiangsuProvince IndustrialStrengthening BasisDisciplines Special ActionPlan.
? The construction of the
New Materials IndustrialPark Second Phase Projectstarted.
? Wholly-owned subsidiary
of Ningbo Guangxin NanoMaterials Co., Ltd. wasestablished formally.
? The project "R&D and
Industrialization of NanoNickel Powder for InternalElectrodes of High-capacityChip Ceramic Capacitors"was included in the JiangsuProvince Major Scientic andTechnological AchievementsTrans-formative project.
? The construction of the New
Materials Industrial ParkThird Phase Project started.
? The Company was awarded
as "Jiangsu ProvinceInformatization andIndustrialization IntegrationTransformation UpgradingDemonstration Enterprise".
? The Company was awarded
as "Primary JiangsuProvince DemonstrationIntelligent Workshop".
? "Ag Powder", "180nm Nickel
powder" were identiedas Jiangsu Provincial NewProducts.
? The Company's research
and development center wasrecognized as ProvincialTechnical Center, JiangsuProvince Nano Metal PowderResearch and DevelopmentEngineering Center.
? The Company has completed
the shareholding systemtransformation and changedits name to "Jiangsu BoqianNew Materials Co., Ltd.".
? The Company was
recognized as National High-Tech Enterprise again.
? The Group Chairman Wang
Liping was elected as thedeputy of the 13th NationalPeople's Congress.
? The Company was rated asJiangsu Province GazelleEnterprise.
? The Company drafted andformulated the industrialstandard of Nickel Powderfor Capacitor Electrode.
? The Company was awarded
as National IntellectualProperty AdvantageEnterprise.
? The Company
was publiclylisted on theShanghai StockExchange.
? "Capacitor electrode nickel powder" was recognized as a
"specialized and new" product in Jiangsu Province.? The "300nm silver powder" was identied as a "JiangsuProvincial New Product".? The Company's subsidiary Guangxin Nano was recognized
as "the province's pilot demonstration enterprise for the
integration of new generation information technology and
manufacturing industry" by Zhejiang Province.
? The rst phase of "electronic special high-end metal powder
material production base construction and relocation and
upgrading project" was completed and put into production.
? Ningbo Guangqian Electronic Material Co., Ltd. was
established.
? The Company's subsidiary Guangxin Nano was
recognized as "National High-tech Enterprise".
? The Company was recognized as "National Intellectual
Property Demonstration Enterprise" by China NationalIntellectual Property Administration.? The Company was recognized as "Excellent
Enterprise" by Jiangsu Provincial Party Committee andJiangsu Provincial People's Government.
? The Company was recognized as "Green Factory" byIndustry and Information Technology Department ofJiangsu.? The Company was rated as a "Green Leading
Enterprise" by Jiangsu Development & ReformCommission.
? The Company's trademark was recognized as
"Thousand Enterprises and Hundred Cities BrandTrademark".
? "Capacitor electrode nickel powder" was
certied as a "Jiangsu Fine Product".
? The Company was rated as JiangsuProvince Five-Star Cloud Enterprise.? The Company was rated as Jiangsu
Province Intelligent ManufacturingWorkshop.
? Silver-coated copper powder productswere selected in the "First Batch ofRecommended Catalog for Key NewMaterial Applications" in ZhejiangProvince.
? The Company's subsidiary Guangxin
Nano was approved as a "NingboEnterprise Technology Research andDevelopment Center".
? The Company expanded
its ultra-ne metal powderproduction line.
2022
? The Company was
recognized as nationalspecialized and new "littlegiant" enterprise.
? The Company's
subsidiary GuangxinNano was recognizedas "Green Factory inZhejiang Province".
? The Company was rated
as Jiangsu provincequality credit AA levelenterprise.
0910
Building a StrongGovernance FoundationThe Company has always adhered to improving the Company's governance structure, ensuringthe standardization and effectiveness of governance through the operation of the three corpo-rate meetings. The Company regularly communicates with shareholders and investors, promptlydiscloses information, engages in shareholder meetings, and fully considers shareholders'opinions. Meanwhile, the Company continuously optimizes its internal control and risk manage-ment mechanisms, upholding the principles of integrity management and fair dealing, so as toensure the smooth operation of the Company and create value for shareholders.
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Building a StrongGovernance Foundation
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Corporate GovernanceIn accordance with relevant laws, regulations, and normative documents such as the Company Law and Securities Law, theCompany has established the Articles of Association.On the other hand, it has formed a corporate governance framework consisting of the General Meeting of Shareholders, Boardof Directors, Board of Supervisors, and senior management. This structure ensures a mechanism of clear division of rightsand responsibilities, standardized operations, and mutual coordination and checks-and-balances among the power, decision-making, supervisory, and management bodies. The General Meeting of Shareholders, Board of Directors, Board of Supervisors,and management have distinct rights and responsibilities, effectively safeguarding the overall interests of the Company and thelegitimate rights of all shareholders, especially small and medium-sized shareholders.
Company Structure
General Meeting of ShareholdersThe convening, proposal, notification, attendance, proceedings, voting, resolutions, and minutes of the General Meeting ofShareholders are strictly implemented in accordance with relevant laws, regulations, the Articles of Association, and the Rules ofProcedure for the General Meeting of Shareholders. Shareholders diligently fulll their shareholder obligations and exercise theirshareholder rights in accordance with the law.
Board of DirectorsThe convening, proposal, notication, attendance, proceedings, voting, resolutions, and minutes of the Board of Directors arestrictly implemented in accordance with relevant laws, regulations, the Articles of Association, and the Rules of Procedure for theBoard of Directors. Directors diligently fulll their directorial duties and exercise their directorial rights in accordance with the law.The specialized committees of the Company's Board of Directors fulll their responsibilities as per the Articles of Associationand the work system of the corresponding specialized committee.The specialized committees of the Board of Directors provide valuable opinions on the audit of the Company's businessperformance, supervision and inspection of internal control systems, performance assessment and salary design of seniorexecutives, thereby enhancing the scienticity and efciency of the Board of Directors' decision-making.Board of SupervisorsThe convening, proposal, notication, attendance, proceedings, voting, resolutions, and minutes of the Board of Supervisorsare strictly implemented in accordance with relevant laws, regulations, the Articles of Association, and the Rules of Procedurefor the Board of Supervisors. The supervisors diligently perform their supervisory duties and exercise their supervisory rightsin accordance with the law. The Board of Supervisors effectively supervises the work of the Board of Directors, the behavior ofsenior executives, major production and business operation decisions of the Company, the execution of related transactions, theformulation of key management systems, the investment direction of major projects, among other matters.The Company aims to standardize governance and promptly revise or establish relevant management systems in accordancewith the latest regulatory laws, normative guidelines, and the actual situation of the Company, thereby ensuring a solidmanagement foundation and continuously improving the construction of its institutional system. During the reporting period,the Company organized the revision or establishment of important governance systems such as the Articles of Association,Independent Director Work System, Work System for Special Meetings of Independent Directors, and Information DisclosureDeferral and Exemption Affairs Management System, consolidating the Company's standardized governance foundation.To strengthen the effectiveness of governance and enhance the level of scientic decision-making, the Company actively promotesthe diversied construction and independence enhancement of the Board of Directors. During the selection of Board members, theCompany comprehensively considers factors such as gender, age, educational background, skills, knowledge, and professionalexperience, ensuring diversity across elds such as chemical industry, accounting, law, among others. This multi-eld coverage injectsinnovative energy for strategic planning from a cross-disciplinary perspective, solidifying the foundation for the Company's sustainabledevelopment. Additionally, based on adherence to the Independent Director Work System, the Company formulated the Work Systemfor Special Meetings of Independent Directors, clearly defining the critical functions of independent directors in supervision, riskcontrol, and decision-making, ensuring their independence, enhancing the efciency and quality of Board meetings and decisions,effectively safeguarding shareholder rights and interests, and increasing governance transparency.Key Performance
During the reporting period, the Company's Board of Directors comprised
members, including
female director and
independent directors.Throughout the reporting period, the Company held a total of
general meetings of shareholders,
meetings of Board of Directors with a
100%
attendance rate of directors, and
meetings ofBoard of Supervisors.
GeneralManager
Board ofDirectors
Secretary of theBoard of Directors
Board ofSupervisors
GeneralMeeting ofShareholders
Deputy General
Manager
Nomination Committee
Remuneration andAppraisal Committee
Audit Committee
Strategy Committee
ChiefFinancial
Ofcer
NingboBranchDeputyGeneralManagerSecurities
AffairsDepartment
Administration
Center
Marketing
Center
R&D Center
QualityControlCenter
Production
Planning
Center
Financial
Center
AuditDepartment
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2024 Social Responsibility Report Opening
Building a StrongGovernance Foundation
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NamePosition
Professional knowledge and
skills
Main experiences
SexAgeIndustryFinanceLawIndustryFinanceLawWangLiping
Chairman of theBoard
√√√
Male
years oldChenGangqiang
Director andGeneral Manager
√√
Male
years oldJiang Yilong
Director andDeputy GeneralManager
√√
Male
years oldQiu OuteDirector
√√√Male
years oldZhaoDengyong
Director
√√
Male
years oldJiang YingDirector
√√√
Female
years oldYangHongxin
Independent
Director
√√Male
years oldLeng Jun
Independent
Director
√√
Male
years oldJiangSuting
IndependentDirector
√√
Male
years oldThe Company organized directors, supervisors, and senior executives to participate in both online and offline complianceseries training organized by the Shanghai Stock Exchange, China Association for Public Companies, and Jiangsu Associationfor Public Companies. This initiative helps the Company understand the latest regulatory trends and legal changes andstrengthen the compliance awareness and performance capabilities of the Board of Directors, Board of Supervisors and seniormanagement.
Key Performance
During the reporting period, the Company held a total of
Audit Committee meetings,
Remuneration and Appraisal Committee meeting, and
Strategy Committee meeting.
? It is responsible for reviewing the Company's nancialinformation and its disclosure, supervising andevaluating internal and external auditing work andinternal controls.? It is responsible for formulating the selection criteriaand procedures for directors and senior executives,selecting and reviewing the qualifications of directorand senior executive candidates.
? It is responsible for formulating the appraisal criteria
for directors and senior executives and conductingappraisals, as well as developing and reviewingremuneration policies and schemes for directors andsenior executives.? It is responsible for conducting research on thecompany's long-term development strategic planningand making suggestions, as well as studying andproviding recommendations on significant investmentand financing proposals, major capital operations,asset management projects, and other significantmatters affecting the company's development requiringapproval by the Board of Directors as per the Articlesof Association.
? One company director andtwo independent directors,with the chairman being anindependent director withan accounting background.? One company director andtwo independent directors,with the convener being anindependent director.
? One company director andtwo independent directors,with the convener being anindependent director.
? Two company directors andone independent director,with the chairman alsoserving as the convener.
Audit Committee ofthe Board ofDirectors
NominationCommittee of theBoard of Directors
Remuneration andAppraisal Committeeof the Board of
Directors
Strategy Committeeof the Board ofDirectors
Special committeeMain job responsibilitiesPersonnel composition
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Investor Relations
The Company has established a comprehensive information disclosure system, strictly adhering to the Measures for theAdministration of Information Disclosure by Listed Companies, and formulating the Information Disclosure Management Systemto regulate information disclosure procedures and the Company's external information disclosure practices. The Companydiligently fullls its information disclosure obligations to ensure the authenticity, accuracy, completeness, timeliness, and fairnessof external information disclosure, so as to protect the legitimate rights and interests of the Company and investors.In compliance with regulatory requirements and operational realities, the Company updates the Investor Relations ManagementSystem to enhance the professionalism of investor relations management. Additionally, the Company has established amechanism for daily communication with investors, maintaining efcient communication with them through diversied channelsto safeguard investors' right to information and demonstrate a positive image of the Company in the capital market. Throughchannels such as general meetings of shareholders, performance briefings, brokerage strategy meetings, investor hotlines,on-site institutional research, and the exchange interactive platform, the Company strengthens investors' understanding of theCompany's main business, production operations, and others, effectively responding to queries from investors and potentialinvestors and promptly conveying the Company's value.
ESG ManagementStakeholder Communication
Extensively listening to the opinions of stakeholders is one of the crucial safeguards for the sustainable developmentof a company. The Company actively listens to the suggestions and expectations of stakeholders regardingsustainable development through various communication channels to ensure effective communication with keystakeholders.
Key Performance
During the reporting period, the Company issued a total of
exchange announcements, held
regular performance briefings to help investors better understand the Company's operational status,nancial performance, and future development plans. Leveraging the SSE E-interactive, the Companyresponded to
investor queries, with topics covering various aspects such as product sales andmajor application directions. The Company actively conducted on-site research and hosted receptionevents for institutional investors.Since its listing, the Company has maintained annual cash dividends and actively shared operationalachievements with investors. During the reporting period, the Company implemented the prot distributionplan for the year 2023, distributing a cash dividend of RMB
1.80
(tax-inclusive) per
sharesto all shareholders, totaling a cash dividend of RMB
47.088
million (tax-inclusive). TheCompany also conducted its rst mid-year dividend distribution, with a cash dividend of RMB
3.20
(tax-inclusive) per
shares to all shareholders, totaling a cash dividend of RMB
83.712
million (tax-inclusive).
StakeholdersConcerns and ExpectationsCommunication Channels
Government andregulatory agencies
? Due diligence? Stakeholder communication? Anti-commercial bribery and anti-corruption? Anti-unfair competition? Corporate governance? Pollutant emission? Waste disposal? Environmental compliance management? Equal treatment of SMEs? Rural revitalization
? Government research? Compliance inspection? Regular meeting exchange? Participating in government
cooperation, exchange anddiscussion activities
Shareholders and
investors
? Corporate governance? Stakeholder communication? Anti-commercial bribery and anti-corruption? Innovation-driven development
? Information disclosure? Operation by Board of Shareholders,Board of Directors, and Board ofSupervisors? Performance brieng? Investor service hotline? Company research
Customers
? Innovation-driven development? Supply chain security? Product and service safety and quality? Data security and customer privacyprotection
? Addressing climate change? Energy utilization? Utilization of water resources? Circular economy? Anti-commercial bribery and anti-corruption? Anti-unfair competition
? Communication and collaboration
with customers
? Customer satisfaction survey? Technical seminars? Daily communication with customers? Condentiality of client information
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StakeholdersConcerns and ExpectationsCommunication Channels
Employees
? Anti-commercial bribery and anti-corruption? Anti-unfair competition? Employee rights protection? Occupational health & safety? Employee training and development? Data security and customer privacyprotection
? Social contribution
? Employee training? Working meetings? Staff symposium? Employee satisfaction survey? Employee activities
Suppliers andbusiness partners
? Supply chain security? Equal treatment of SMEs? Product and service safety and quality? Anti-commercial bribery and anti-corruption? Anti-unfair competition
? Supplier management and auditing? Supplier training and empowerment? Supplier communication andexchange
? Supplier conference
Community and
industry
? Anti-unfair competition? Addressing climate change? Rural revitalization? Social contribution? Innovation-driven development
? Environmental protection activities? Industry conferences and exhibitions? School-enterprise cooperation? Public welfare activities
Media
? Rural revitalization? Social contribution? Innovation-driven development? Equal treatment of SMEs? Product and service safety and quality? Circular economy? Addressing climate change? Stakeholder communication
? Information disclosure? Communication interviews? Wechat ofcial account platform
Materiality Topics AnalysisTo fully understand the focus areas of stakeholders and better integrate their demands and expectations into the Company'ssustainable development management practices, the Company conducts identification and analysis of material topics. Byanalyzing the Company's activities and business relationships in-depth, the Company identies an ESG topic database andconducts widespread stakeholder opinion surveys to prioritize the materiality of topics. The Company gives priority considerationto risks that could significantly impact business WeChat, harm the Company's reputation, or are of utmost concern tostakeholders. This prioritization enables the Company to effectively allocate resources, develop mitigation strategies for mostmaterial risks, and better manage ESG-related matters.
Analysis Process for Materiality
During the reporting period, the Company extensively sought opinions from various stakeholders through questionnaire surveys.Based on the dimensions of "nancial materiality" and "impact materiality", the Company compiled a double materiality matrix forthe year 2024. This matrix identied 6 topics with double materiality, 9 topics with only nancial materiality, and 1 topic with onlyimpact materiality.
Learn about companyactivities and business
relationships
Identify ESG topic
library
Assess and rankthe materiality oftopics
Determine and reporton the materiality oftopics? Learn about companyactivities and businessrelationships? Understand the externalobjective environment
? Learn about the mainaffected stakeholders
? Use topics identifiedin Guidelines as abaseline, and identifyother potential materialitytopics with reference topeer companies, ratingstandards, etc.? Identify the impact,risks and opportunitiesrelated to the topics, andsummarize them to forma company topic library
? Identify the results ofimpact materiality andfinancial materialityassessments throughquestionnaires, inter-views, etc.? Integrate the assess-ment results to form amateriality matrix
? Determine or adjust theresults of materialitytopics in combinationwith the opinions of themanagement? Disclose in the annualESG report in accordancewith the requirements ofthe Guidelines
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Materiality Matrix of The Company
Materiality to nance of the Company
Materiality to economic, social, and environmental impacts
13. Rural revitalization
14. Social contribution
6. Addressing climate change
17. Equal treatment of SMEs
5. Corporate governance
18. Employees
3. Anti-commercial bribery and
anti-corruption
7. Pollutant emissions
10. Energy utilization
11. Water resources management
19. Product and service safety and quality
15. Innovation-driven development
8. Waste disposal
20. Data security and
customer privacy protection
16. Supply chain security
1. Due diligence
4. Anti-unfair competition
12. Circular economy
2. Communication with stakeholders
9. Environmental compliance management
Risk Internal ControlScientic and effective risk management and internal control systems are the cornerstone of a company's sound operation andlong-term value realization. The Company focuses on strategic planning and actual operational management to identify andconduct internal control risk assessments from the perspectives of nancial management, procurement management, humanresources management, production management, sales management, R&D management, among others. The Companyestablishes a robust risk-oriented internal control and compliance management system to enhance its resilience against risksacross the entire value chain.The Company has formulated the Internal Audit System. Following the principles of "independence, objectivity, and impartiality",this system supervises and evaluates the nancial income and expenditure, asset quality, and operational performance of theCompany and its subsidiaries. The Audit Department reports to the Audit Committee at least quarterly and submits an internalcontrol assessment report per year. Actions violating the system are disciplined or penalized, and upon approval by the Board ofDirectors, the system is enforced.
Board ofDirectors
Audit Committee
Audit Department
? Review and approve the Internal Audit System. If the system conicts withnational regulations or the Articles of Association, it shall be revised andapproved in accordance with the latest provisions.
? Accept objections raised by audited units regarding audit decisions andadjudicate. Hold auditors accountable for violations (e.g., seeking personalgain or leaking confidential information) based on the severity of themisconduct.? Set up the Audit Department and guide it to work independently,guaranteeing that the Audit Department is not subordinate to the FinanceDepartment or co-located with it.? Approve the Audit Department's authority to inspect nancial records andauthorize it to implement temporary protective measures for major urgentmatters.? Conduct audits of the nancial transactions, operational performance, andinternal control systems of the Company and its subsidiaries.? Monitor audited units to ensure corrective actions are implemented andconduct follow-up audits on critical projects.? Halt non-compliant activities, recommend accountability measures, andtrack improvement outcomes.
Internal Control Management Structure
Governance Environmental Social? 1. Due diligence*? 2. Communication withstakeholders? 3. Anti-commercial briberyand anti-corruption? 4. Anti-unfair competition? 5. Corporate governance
? 6. Addressing climate change? 7. Pollutant emissions? 8. Waste disposal*? 9. Environmental compliancemanagement? 10. Energy utilization? 11. Water resources management? 12. Circular economy
? 13. Rural revitalization? 14. Social contribution? 15. Innovation-drivendevelopment*? 16. Supply chain security*? 17. Equal treatment of SMEs? 18. Employees? 19. Product and service safetyand quality*? 20. Data security and customerprivacy protection*Note: Topics marked with an asterisk (*) are of double materiality.
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Pledge for Integrity
CaseInternal Control and Risk Management Training
In September 2024, the Company invited Dr. Zhou, an associate professor with a Ph.D. in Management, toconduct training on "Digitalized Internal Control and Risk Management for Enterprises in the Age of Intelligence"for relevant personnel in the Company. The training provided a detailed analysis of how traditional process-based internal control methods can be integrated into a risk management system. It also included practicalcases study on digital warning analysis for the two major core business sectors of sales receivables andprocurement payables. The training emphasized that in an intelligent environment, companies need to shiftfrom compliance-oriented to strategic-oriented approaches. By constructing risk control systems throughdata modeling, companies can ultimately achieve an upgrade in intelligent risk management that supportsstrategic goals and balances risks with performance. This training helped the participants effectively grasp themethods and trends in internal control and risk management, thereby enhancing the Company's internal riskmanagement practices.
Internal Control and Risk Management Training
The Company strictly adheres to national and local tax regulations to ensure the legality, compliance,and efficiency of the Company's tax activities. In 2024, the Company's tax payment amounted to RMB
60.7912
million.
Business EthicsThe Company has always adhered to a zero-tolerance principle, prohibiting any form of bribery, corruption, or graft. TheCompany has established the Anti-Fraud Management System, which regulates the professional behavior of all employees,requiring them to strictly adhere to relevant laws, industry norms and standards, professional ethics, and company regulations,thereby fostering a culture of integrity, diligence, and dedication.The Company strictly adheres to legal requirements such as the Anti-Monopoly Law and the Anti-Unfair Competition Law,resolutely eliminating practices like false advertising and infringement of trade secrets that constitute unfair competition. Throughsystem standardization, agreement signing, employee training, and internal supervision, the Company ensures the legality andlegitimacy of its business practices.
Anti-Fraud Management System
Prevention and Control of Fraud
"Starting from myself, I will uphold the bottom line of honesty and
integrity and reject any form of bribery and corruption!"
Mana-gement
Level
Audit Department
AuditCommittee
Business departments
? Take responsibility for addressing fraudulentbehavior, establishing, improving, and effectivelyimplementing anti-fraud procedures and controlsincluding fraud risk assessment and fraudprevention, and conducting self-assessments.? Serve as a permanent body for anti-fraud work, organizing and implementinganti-fraud work across departments andwithin the Company.
? Be responsible for guiding the
Company's anti-fraud efforts.
? Be responsible for anti-fraud
work within their respectivedepartments.
Advocating a culture of
integrity and honesty
Strengthening theassessment of integrity risks
Conducting investigationson key positions
Signing integrityagreements
? Lead by example from
the senior levels, providetraining for all employees,and establish clearbehavioral guidelines.? Encourage reportingunethical behaviorand establish policiesfor rewards andpunishments.
? Incorporate fraud risk
assessment into theenterprise risk assessment,proactively identify high-risk corruption scenariosin business operationsannually, and issue warningsfor related practices.
? Establish anti-fraud control
measures at all levels and inall departments, implementcontrol mechanisms at thesource, and ensure theireffectiveness.
? Conduct backgroundchecks on individualsbeing considered forhiring or promotion toimportant positions, andmaintain formal writtenrecords.
? Have all new employees
sign clauses prohibitingcommercial briberyin their Letter ofCommitment uponJoining the Company.
? Sign Anti-Commercial
Bribery Agreement withsuppliers to prohibitcommercial briberypractices.
Key Performance
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CaseAnti-Corruption Propaganda and Education, Jointly Building a Clean Enterprise
In April 2024, the Company organized a special study and warning education activity on anti-corruption inthe factory areas of Suqian and Ningbo. More than 30 key employees in middle and senior management, theprocurement and sales departments, party members, and employee representatives participated in the eventvia video link between the two locations. They collectively studied regulatory documents such as the Anti-UnfairCompetition Law and the Criminal Law, watched special videos on anti-corruption, and analyzed typical cases.This event has deepened the awareness of integrity and disciplinary norms among relevant personnel.
The Company produced exhibition boards, posters, and other materials on anti-corruption themes, which wereprominently displayed in publicity areas at the Suqian and Ningbo facilities. Employees were organized to studythese materials, with over 200 participants in total, fostering an atmosphere of integrity and self-discipline.
Anti-Commercial Bribery Training
Anti-Corruption Culture Promotion
To effectively prevent and address various violations of rules and discipline, the Company established the Whistleblowing andComplaint Management Measures, accepting reports through multiple channels such as phone calls, mailboxes, and in-personvisits. This promotes law-based administration, diligence, and integrity among management at all levels. The Audit Department,as the designated unit for handling reported information, is responsible for registering, categorizing, and resolving reportedcases within specied time limits. Once a report is veried, the Company will reward the whistleblower based on the amountinvolved. False accusations or malicious framing will be penalized.
The Company has established a robust whistleblower protection mechanism, strictly safeguarding the identity and informationof whistleblowers. All whistleblowing materials are classied as condential and must not be disclosed or transferred to thereported party. Any form of retaliation is prohibited. If a whistleblower faces unfair treatment -such as job reassignment,demotion, or disciplinary action - due to whistleblowing, the responsible department must investigate and rectify the situation.Those who engage in retaliation will face public censure and fines; cases causing severe harm will be referred for judicialhandling.
ljt@boqianpvm.comNo. 23, Jiangshan Avenue, Suyu EconomicDevelopment Zone, Suqian (Audit Department);No. 588, Wanjin Road, Shiqi Street, Haishu District,Ningbo
Unit2024Total number of conrmed corruption incidentsCases0Number of employees who have signed the integrity commitment letterPersons 904Number of suppliers who have signed the anti-bribery commitment letterNumber 61Total number of litigation/administrative penalty cases for unfair competitionNumber 0
Whistleblowing Channels
Whistleblowing/Complaint Hotline
Whistleblowing EmailComplaint Address
1560668611013567898775
ProducingExceptional Products
The Company consistently adheres to the quality management principle of "advanced tech-nology, superior quality, continuous improvement, and customer satisfaction". Qualitycontrol is implemented throughout every stage, including R&D, procurement, and produc-tion. By actively enhancing innovation, advancing intelligent manufacturing, and sincerelyserving customers, the Company ensures product excellence, laying a solid foundation forsustainable development.
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Product QualityProduct quality is the lifeline of corporate development. The Company continuously improves its quality management systemdocuments in accordance with ISO 9001, IATF 16949, and other relevant quality management system standards. The Companyhas established institutional documents such as the Quality Manual, Production and Service Operation Control Procedure,and Non-Conforming Product Control Procedure to ensure all quality activities are conducted in a standardized manner.The Company has established a dedicated Quality Control Center, which consists of two major divisions: quality control andinspection. Equipped with industry-leading quality testing equipment, the center strengthens product quality control.
Quality Management Framework
? Be responsible for productquality management,product data analysis andprocessing, and handlingcustomer feedback andcomplaints.
? Be responsible for conductinginspections throughout theentire production process,including incoming materialinspection, in-processinspection, online inspection,and nal dlivery inspection,covering all stages from rawmaterial intake to nishedproduct shipment.To continuously enhance quality management, the Company conducts regular internal audits and management reviews of itsquality management system. This ensures timely identication and correction of non-conformities, driving ongoing improvementsin the system's effectiveness. Additionally, the Company sets annual corporate-level and department-level quality managementobjectives, including metrics such as powder product yield, employee training rate, product pass rate, and improvement projectvalidation rate. Progress toward these objectives is regularly evaluated. All quality-related objectives for the year 2024 havebeen achieved.
The Company and Its Major Subsidiary Have All Passed ISO 9001 Quality Management System Certication
Quality Assurance Throughout the Product LifecycleThe Company implements quality management across the entire product lifecycle, establishes a comprehensive control chainfrom raw material procurement to production process execution, finished product inspection, and proper handling of non-conforming items, and strengthens process quality control.
Quality Improvement Initiatives
The Company emphasizes continuous product quality improvement by establishing a quality issue feedback mechanism.Employees are encouraged to promptly report quality problems discovered during production, with appropriate rewards givenfor such feedback. Additionally, for quality issues identified through customer feedback or internal findings, the Companyforms dedicated quality improvement teams. Using quality management tools (such as 8D reports and fishbone diagrams),these teams conduct root cause analysis, develop and implement effective corrective actions, and track improvement results -ensuring closed-loop quality management.
Product Lifecycle Quality Management
? The Company has establis-hed a rigorous supplierevaluation and selectionmechanism, conductingcomprehensive audits ofsupplier qualications,production capabilities, andquality assurance systemsto ensure all procured rawmaterials meet powderproduction quality standards.
? All incoming materials
undergo strict inspectionper dened sampling plansand testing protocols, withfull-item testing conducted.Any non-compliant materialsare categorically rejectedfrom warehouse entry,guaranteeing product qualityat the source.
? The Company has introducedadvanced productionequipment and automatedcontrol systems to enhanceprocess stability andcontrollability, effectivelyreducing human-factorimpacts on product quality.? Quality control checkpoints
are implemented atcritical production stages,utilizing Statistical ProcessControl (SPC) for real-timemonitoring and analysis ofproduction data to promptlyidentify and correct abnormaluctuations.
? Enhanced quality training forproduction staff strengthensquality awareness andoperational skills, ensuringstrict adherence to operatingprocedures.
? A comprehensive nished
product inspection systemhas been established,requiring full-item testing ofeach powder batch (includingappearance, particle size,purity, specic surface area,and bulk density) prior towarehouse entry and shipmentto ensure compliance withquality standards.
? Advanced testing equipment
operated by qualied pers-onnel undergoes regularcalibration and maintenanceto guarantee accurate andreliable test results.
Quality ControlCenter
Quality Control SectionInspection Section
Quality Control ofRaw Materials
Production ProcessQuality Control
Finished Product QualityInspection and Control
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Case
Case
Conducting Packaging Process Training to Strengthen Quality Awareness
Precision in Meeting Customer Needs Earns High Recognition
To enhance control over product packaging processes and improve product quality, the Company's subsidiaryGuangxin Nano's Packaging Department conducted a training session on packaging requirements in April 2024.The training covered topics including explanations of packaging work instructions, 5S workshop management,and accountability for customer complaints related to packaging. Through this training, the participantsgained a deeper understanding of the importance of inspection during packaging, clarified their respectiveresponsibilities, and strengthened their sense of accountability to prevent recurrence of similar issues.
In July 2024, a technical delegation from an international enterprise conducted a specialized factory audit atthe Company's Suqian Base, focusing on evaluating its mass-production capabilities for nano-scale small-particle-size powders. The visit was led by the leadership of the Suqian Base, with full participation from sales,technical, and quality management teams. The audit team conducted a comprehensive review of productionline stability and the quality control system, awarding scores above 90 points for both QPA (Quality ProcessAudit) and QSA (Quality System Audit). The results affirmed the Suqian Base's manufacturing and qualitymanagement capabilities in high-end electronic materials, demonstrating the Company's professionalism withinthe new energy material supply chain. This recognition paves the way for deeper collaboration between bothparties.
Packaging Process Training Site
Factory Audit Meeting at the Suqian Base
Customer Service
The Company consistently adheres to a "customer-centered" service philosophy and establishes an end-to-end customerservice system covering pre-sales, during-sales, and after-sales support. Through institutional measures such as the SalesManagement System, Customer-Related Process Control Procedure, and Customer Satisfaction Survey Control Procedure, itcontinuously enhances service efciency and customer satisfaction. Focusing on key areas including customer communication,contract fulfillment, complaint resolution, and satisfaction surveys, the Company has implemented robust managementprocesses and operational standards with clearly dened responsibilities to ensure timely identication and effective responseto customer needs. Additionally, mechanisms such as customer visits and satisfaction analysis are in place to continually reneservice quality and strengthen customer loyalty. Committed to safeguarding customer rights, the Company aims to build long-term, stable, and trust-based partnerships that support sustainable business growth.
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Customer Complaint & Recall MechanismThe Company has established a comprehensive product service and after-sales system, including the Customer ComplaintHandling Procedure, which clearly denes responsible departments and workows at each stage to ensure timely analysis andeffective resolution of complaints. Additionally, annual performance targets are set for key metrics such as complaint responserate and resolution rate, safeguarding customer rights and upholding corporate reputation.
Customer Satisfaction SurveyThe Company annually develops a customer satisfaction survey plan in accordance with internal control procedures. The planspecies the target respondents, key focus areas, frequency, and methods of the survey. Regular surveys are conducted tocomprehensively assess client evaluations and needs regarding product quality, service levels, complaint handling, and otheraspects. Survey results are analyzed yearly, culminating in a Customer Satisfaction Analysis Report. Based on the ndings,appropriate corrective and preventive measures are formulated and implemented.Responsible MarketingThe Company adheres to responsible marketing principles and has established the Sales Management System to ensure allmarketing activities are truthful, transparent, and strictly compliant with relevant laws, regulations, and industry standards. Inall communications, the Company prioritizes customer privacy protection and data security compliance. Misleading claims andfalse advertising are strictly prohibited. Marketing content focuses on genuine product value and social benets, continuouslyenhancing customer trust and brand reputation.
Customer Complaint Management Process
Innovation-Driven DevelopmentInnovation and breakthroughs in core technologies form the foundation of The Company' high-quality development. TheCompany places strong emphasis on R&D investment and technological accumulation. Building upon its core technology- "Atmospheric Pressure Plasma Heating Vapor Condensation Method" - it continuously upgrades and iterates productionprocesses. This drives product diversication from metal powders to non-metal powders, and from single-element metals tomulti-component alloys. Through strategic collaborations with clients, the Company actively expands its portfolio of high-value-added products.As of the reporting period, the Company had been granted numerous honors including "National High-tech Enterprise", "FourthBatch of National Specialized and New 'Little Giant' Enterprise", "Jiangsu Demonstration Intelligent Workshop", "JiangsuEnterprise Technology Center", "Jiangsu Metal Ultra-fine Powder Preparation Engineering Technology Research Center","Jiangsu Nano Metal Powder Engineering Center", "Zhejiang Digital Workshop/Intelligent Factory", and "Suqian DemonstrationIntelligent Workshop".Key Performance
During the reporting period, the Company's R&D investment reached RMB
50.1794
million,accounting for
5.31%
of total revenue.
ComplaintReceipt andRegistration
CustomerFeedback and
ClosingComplaintClassication
andResponse
Investigationand Analysis
Solution andImplementation? All complaints must berecorded in the CustomerComplaint RegistrationForm? Preliminary categorizationof complaints (quality,logistics, service, etc.)
? A preliminary analysismust be completed within48 hours with submissionof the Complaint AnalysisReport? For complaints involvingmajor quality issues, an8D Report (root causeanalysis) is required
? After implementingsolutions, conductcustomer follow-upwithin 3 days to conrmsatisfaction? Archive all records andcomplete the ComplaintCase Closing Report
? General complaints:
Requiring response within24 hours? Severe complaints:
Requiring response within2 hours with mandatoryescalation to management
? General complaints:
Solutions must be providedwithin 5 working days? Severe complaints: Interimmeasures required within3 working days, withpermanent correctiveactions completed within 7working days
During the reporting period, the Company was recognized as a Specialized and New SME in JiangsuProvince, while its subsidiary the Company's subsidiary Guangxin Nano was designated as NingboEnterprise Technology R&D Center.
Honors & Certications
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R&D Team ManagementThe Company adheres to an innovation-driven and talent-led approach, emphasizing the management and development ofits R&D team through a well-established incentive mechanism. To continuously advance technological progress and enhanceresearch management standards, the Company has implemented the Science and Technology Advancement Reward Policyand the Intellectual Property Reward Policy. These policies provide substantial recognition - both honorary and monetary - toemployees who make outstanding innovative contributions, effectively motivating R&D personnel and research managers topursue technological innovation and drive progress.
IP ManagementThe Company prioritizes intellectual property management, with clear guidelines for IP declaration and administrationestablished in the Employee Handbook and Intellectual Property Reward Policy. The Company was recognized as a "NationalIntellectual Property Advantage Enterprise" in 2019 and designated as a "National Intellectual Property DemonstrationEnterprise" in 2023. The Company’s independent research and development project Nano Metal Powder R&D was listedinto Jiangsu Province Strategic Emerging Industry Development Special Project, and the High-capacity Multi-layer CeramicCapacitor Inner Electrode Nano Nickel Powder R&D and Industrialization project was listed into Jiangsu Enterprise Innovationand Achievement Transformation Special Fund project. The Company also presided and formulated the industry standard ofNickel Powder for Capacitor Electrodes.
Key Performance
During the reporting period, the Company employed
R&D personnel, accounting for
14.93%
of total employees.
CaseWeekly R&D Meetings Enhance R&D Management Efciency and Collaboration
To improve R&D efciency, the Company's R&D Department holds regular weekly meetings to promptly identifyissues, align objectives, coordinate resources, and enhance cross-departmental collaboration and execution.In December 2024, senior R&D leadership and department heads convened the weekly meeting in the R&Dbuilding conference room to focus on key R&D tasks and solutions. The meeting addressed multiple R&Dchallenges, including equipment optimization during experimental phases and sample renement. This sessionfurther clarified technical problem-solving approaches, enabling all R&D units to advance subsequent workmore effectively.
Regular Meeting of the R&D Department
CaseGreen Process R&D Earns Jiangsu Premium Brand Certication
In 2024, the Company's capacitor electrode nickel powder wasawarded the "Jiangsu Premium Brand". The product is manufacturedusing the Company's proprietary Atmospheric Pressure Plasma HeatingVapor Condensation Method for metal powder production. The entireproduction process consists solely of physical changes and operateswithin a sealed nitrogen system, where both the process nitrogenand cooling water are recycled, resulting in high resource utilizationand environmentally friendly production. The final product exhibitshigh crystallinity, excellent sphericity, strong oxidation resistance, andsuperior dispersibility.
Jiangsu Premium Brand
Certication
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Intelligent Manufacturing & Data SecurityAmid the digital economy wave, The Company is committed to becoming an industry benchmark in digital transformation. Bydeeply integrating cutting-edge technologies like 5G, AI, and IoT, the Company has established a next-generation enterprisemodel characterized by "full-factor connectivity, end-to-end intelligent processes, and cross-scenario collaboration". TheCompany is driving an organizational shift from traditional operations to a "data-driven, intelligent decision-making" paradigm.While prioritizing robust data security management and protection, these initiatives ultimately aim to reconstruct industrial chainvalue and create ecosystem synergies.Digital TransformationGuided by China's national digitalization mission, the Company is committed to driving industrial digital transformation toenhance competitiveness and promote sustainable economic development. The Company has established a three-phase digitaltransformation roadmap covering infrastructure development, capability enhancement, and ecosystem innovation, achievinglong-term sustainable growth through comprehensive digitalization.
The Company's Digital Transformation Objectives and Roadmap
Digitalization objectives: Quantiable transformation milestones
InfrastructureDevelopment Phase (1-2
years)
Capability EnhancementPhase (3-5 years):
Ecosystem InnovationPhase (5+ years)Complete ERP and MESintegration to achieve corebusiness digitization.
Establish an AI platformto improve operationaldecision-making efciency.
Incubate digital newbusinesses to driverevenue growth.
Industry-University-Research Cooperation
The Company actively establishes Industry-University-Research collaborative platforms to conduct joint technological researchwith universities and research institutions. The Company has established long-term partnerships with leading organizationssuch as the Ningbo Institute of Materials Technology & Engineering (Chinese Academy of Sciences) and Shanghai JiaoTong University. These strategic collaborations promote deep integration of industry, university and research, facilitate thetransformation of scientic achievements into practical applications, ensure the innovation and advancement of our producttechnologies, and support the Company's rapid, sustainable, and healthy development.
Trade Secret ManagementThe Company adheres to the principles of "unifiedleadership, tiered responsibility, proactive protection, andfocused priorities" in its condentiality work. This approachintegrates confidentiality management with businessoperations by holding department heads accountablefor both operational and confidentiality matters in theirrespective areas ("who oversees operations is responsiblefor confidentiality"). This system ensures the security oftrade secrets while facilitating smooth business operations.The Company has established a Secret-related PersonnelManagement System, under which the ConfidentialityCommittee reviews and manages secret-related matterswhile implementing tiered management for personnel.All employees are subject to confidentiality requirementsoutlined in the Employee Handbook, with those handlingtrade secrets required to sign Non-Disclosure Agreement.Additional departments may execute Confidentiality andNon-Compete Agreements as needed. Regular trainingprograms are conducted to strengthen employees'confidentiality awareness and safeguard the Company'strade secrets.
Honors & Certications
The Company's Subsidiary Guangxin Nano's TradeSecret Protection Ofce Was Recognized as Ningbo
Trade Secret Protection Demonstration Site
Key Performance
During the reporting period, the Company led
new patent applications, including
invention patentsand
utility model patents;A total of
patents were granted, comprising
invention patents and
utility model patents.As of the reporting period, the Company holds a total of
valid authorized patents as of the end of thereporting period, including
domestic patents (comprising
invention patents and
utilitymodel patents) and
international patents.
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CaseBuilding a Digital Smart Factory to Enhance Manufacturing Quality and Efciency
The Company's subsidiary, Guangxin Nano, has established a provincial-level smart factory specializing inhigh-end nano metal materials for electronic applications. This facility consists of an intelligent nano powderproduction workshop and a post-processing grading workshop, featuring comprehensive digital and automatedsystems covering product design, process management, production execution, and warehousing logistics.Through the integrated operation of ERP, MES, WMS, RCS, and LIMS, the factory has established a completedata chain connecting personnel, equipment, materials, methods, and environment. This enables automatedproduction planning, intelligent material distribution, real-time process monitoring, and full product traceability.Since its implementation, the smart factory has achieved significant improvements: increased productionefciency, reduced operational costs, shortened product development cycles, lower defect rates, and enhancedenergy utilization efciency. These advancements ensure consistent product quality while promoting green andhigh-efciency manufacturing.
Ensuring Data Security & Customer Privacy
The Company has established comprehensive policies including the Network and Computer Management System, ElectronicData Security Management Measures, and Data Breach Incident Management System to strengthen its data and networksecurity protection framework. For emergency scenarios involving network or data security incidents, the CybersecurityEmergency Response Mechanism has been implemented to standardize the handling of network and information securityanomalies during crises, safeguarding the interests of both the enterprise and its clients. During the reporting period, no majorsecurity failures or data breaches occurred.
The Company has established a holistic data security protection framework to ensure both network and data security. TheCompany implements stringent security measures across network access, perimeter protection, data encryption, and processmanagement, including multi-layer backup systems, granular access control, le encryption protocols, and digital watermarktracking capabilities. Through advanced network security appliances and data management systems, the Company effectivelymitigates risks of external attacks and internal data breaches. Furthermore, the adoption of digital process management toolshas simultaneously enhanced operational efciency and security.
Data Security Management Requirements
Data ServerNetwork ProtectionMobile Device
Terminal Hard DriveStorage EnvironmentData Protection
? All data servers must implement
RAID technology with data recoverycapabilities (RAID 1, 3, 5, or 10).
? All ports except those explicitlyauthorized for server operations mustbe permanently disabled on bothperimeter and system rewalls.
? After data transfer is completed, allterminal hard drives must be securelydestroyed in strict compliance with theCompany's Trade Secret Protectionrequirements, with no long-termdata retention permitted under anycircumstances.
? All workstations must have antivirus
software installed, and users arestrictly prohibited from disabling ordeactivating the software.
? Room temperature between 10-35°C, relative humidity of 35-80%,equipped with vibration-resistantinfrastructure, comprehensivelightning protection, UPS, monitoringsystems, access control security, andcomplete re suppression facilities.
? Database servers must undergo fulldatabase backups at regular intervals,supplemented by daily incrementalbackups. All database backup filesshall be stored off-site (primarily asransomware protection), and end-usercomputers must periodically back updata to the designated backup server.
Data encryption management
? Full-disk encryption for work data; les become inaccessible when disconnected from the company network or placed inunauthorized environments (opened documents automatically lock).? All documents embed special blind watermarks to effectively trace leakage sources.Systematized business process management
? Leverage professional systems such as Kingdee EAS, Weaver OA, ERP/MES, and FanRuan BI to standardize and
digitize nancial, approval, resource allocation, and data analysis processes.
Network and Data Security Protection Framework
Multiple network access and protection guarantees
? Dual-network access points (China Telecom and China Unicom as dual carriers) with primary and backup systems.
Strict implementation of wired/wireless employee network IP-MAC address binding and access control. Visitor networksare physically isolated.? Server data employs RAID1, local and off-site encrypted cold backups. UPS and generators are provided for powerbackup. Server rooms have EMP protection capabilities.In-depth boundary security protection
? Deploy professional network behavior management systems and core rewalls, integrating capabilities such as intrusion
prevention, antivirus, URL ltering, cloud sandboxing, trafc analysis, and SSLVPN.? Strict control over inbound and outbound data packets, allowing only veried secure trafc.Data classication and tiered control
? Utilize an electronic document security management system to implement encrypted classication for work materials.? Cross-departmental or lower-clearance employees accessing, sharing, or printing high-clearance documents require
supervisor authorization and must operate within permitted time limits.
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The Company implements a strict "immediate reporting per incident" policy for all potential condentiality breaches, includingunauthorized disclosures, leaks, or theft. Upon discovering any such incident, the responsible personnel must promptly reportthe factual details to both their department head and the Condentiality Ofce without delay, while completing the required TradeSecret Breach Incident Report Form. Concealing incidents or attempting unauthorized remediation before ofcial reporting isexpressly prohibited.
Condentiality Breach Reporting Requirements
Condentiality Breach Investigation Process
? Classication level,
quantity, and formatof the compromisedmaterials; the time,location, and circums-tances of the breach;actual or potentialdamage; andimplemented or proposedremedial measures.
? Upon detecting
a condentialitybreach, theCondentialityCommittee shallimmediately forman investigationteam and conductthe inquiryadhering to theprinciples of"seeking truth fromfacts and handlingmatters accordingto law".
? Fact-nding: Investigate the content, method,
quantity, severity of damage, key details, andinvolved parties of the trade secret leak.
? Remediation & improvement: Implement corrective
measures for identied vulnerabilities andpropose enhanced condentiality protocols andrecommendations.? Accountability: Cases violating theCriminal Lawshallbe referred to judicial authorities for prosecution,while non-criminal breaches shall be handledaccording to applicable national laws, regulations, orthe Company's Condentiality Reward and PenaltyPolicy.? Result review: The Condentiality Ofce shallcomplete the Trade Secret Breach InvestigationReport based on investigation ndings and submit itto the Condentiality Committee for review.
? A condentialitybreach case mayonly be closed orterminated uponconrmation bythe Company'sCondentialityCommittee.? Top secret: immediatereporting;? Condential: within 8 hours;? Secret: within 24 hours.
? For items with unclear or disputedclassication levels, determinationshall be made according tothe Company's ClassicationManagement Measures.? Concealment of breaches orobstruction of investigations willresult in disciplinary action againstboth involved personnel anddepartment heads.? Retaliation against whistleblowerswill face severe penalties,while individuals contributing toremediation or providing crucialleads will be rewarded.
Report Content
ReportingDeadlines
Handling of Special
Circumstances
Commencement of
Investigations
Investigation and HandlingClosing
Case
Enhancing Technical Cooperation in Network and Data Security and StrengtheningInformation System Security Defenses
In 2024, to enhance data security, the Company partnered with a leading technology rm for comprehensivecybersecurity drills. The collaboration focused on critical defense technologies including: intrusion prevention,anti-virus systems, URL remote query, cloud sandbox detection, trafc probes, and internal SSL VPN solutions,significantly upgrading the information system's protective capabilities. Through these joint exercises andtechnical support, the Company has optimized its security framework, improving both threat identication andresponse capabilities. This initiative has established a robust foundation for ensuring operational system stabilityand safeguarding data assets.
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CaseFocusing on Data Security and Conducting Subject Training for Senior Executives
In 2024, the Company conducted specialized data security training for 35 department heads through a one-hour intensive session per participant, designed to enhance leadership's awareness of data complianceand information security risks. The training program systematically covered critical areas includingdata classification, access control protocols, and risk mitigation strategies. This initiative significantlystrengthened management's competency in data security governance, providing vital support forestablishing the Company's comprehensive data security management framework.
Data Security Training Site
Supply Chain SecurityThe safety and stability of the supply chain constitute one of the critical factors ensuring the Company's sustainableand healthy operations. The Company has established the Supplier Management and Procurement ControlProcedure, continuously improving its supplier management system under the leadership of the General Manager asthe ultimate responsible party. This cross-functional system involves coordinated management by the ProcurementDepartment, Quality Department, and R&D Department to guarantee that the supply of raw materials and otherresources fully meets the Company's operational and developmental requirements.Supplier ManagementThe Company has implemented a comprehensive supplier quality management and evaluation system to ensure raw materialquality. New suppliers must pass a three-tier approval process comprising due diligence, sample testing, and small-batchtrial before qualifying for procurement. For existing suppliers, the Company conducts annual evaluations to generate SupplierAssessment Form, regularly updates the supplier database, and removes unqualied suppliers.
New Supplier Management and Evaluation ProcessSupplier DueDiligence
Sample Testing and Small-
Batch Trials
Supplier Evaluation
? The Company collectsinformation onpotential suppliers andpreparesNew SupplierApproval Form, whichevaluates candidatesacross multipledimensions includingpricing, productioncapacity, qualityreputation, geographicallocation, and servicelevel, while consolidatingall relevant supplierdocumentation.
? For suppliers providing
materials for the rst time,the Company conductssample testing and small-batch trials following initialdue diligence.? The Quality ControlCenter rst issues formalquality certication results,after which small-batchtrial production is initiated.Only upon successfulquality verication by theQuality Control Centermay bulk procurementproceed.
? Suppliers must
undergo evaluationand obtain approvalfrom the ProcurementDepartment's head,the responsible DeputyManager, and theChief Financial Ofcerbefore qualifying forprocurement.
? For Category A andB materials, suppliersmust additionally receivequalication conrmationfrom the GeneralManager. The ofciallyapproved List of QualiedSuppliers (OutsourcingPartners) requires theGeneral Manager's nalauthorization beforeimplementation.
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Sustainable Procurement
The Company's Supplier Management and Procurement Control Procedure clearly define evaluation criteria for Category Aand B critical suppliers. Under the "management capability" assessment dimension, suppliers are evaluated based on theircertications in quality, environmental, and safety management systems. The "production capability" dimension comprehensivelyassesses suppliers' production infrastructure, work environment, workforce competency, and product protection measures togauge their sustainable development capacity. This dual-dimensional evaluation mechanism effectively mitigates supply chainrisks while enhancing overall security and stability.Transparent Procurement
The Company rigorously enforces transparent procurement practices in supplier ethics management, establishing clearapproval standards for each procurement phase to prevent violations and corruption. With key suppliers, the Company signsAnti-Commercial Bribery Agreements that explicitly specify reporting channels for unethical behavior, whistleblower protectionmechanisms, and disciplinary procedures. These agreements legally empower the compliant party to unilaterally terminatecontracts and seek compensation for damages in case of breach.
Supply Chain Risk ManagementThe Company's primary raw materials include nickel blocks, copper rods, silver sand, and auxiliary materials, with pricesuctuating according to global market trends for these metals. To enhance inventory management efciency, the Company'sMarketing Center regularly aggregates customer demand data, based on which the Production Planning Center formulatescorresponding production plans and material requirements. The Procurement Department then generates purchase ordersby integrating these operational needs with both safety stock requirements and real-time market price uctuations of bulk rawmaterials, ultimately executing procurement activities accordingly.To further strengthen supply chain security and stability, the Company has implemented a comprehensive risk identication andassessment mechanism that covers all procurement stages, thereby enhancing product quality assurance from the source.The Company conducts regular internal control risk identication and evaluation for key procurement processes - including rawmaterial purchasing, supplier qualication, contract management, and inspection/payment - in accordance with the ProcurementCycle Internal Control Risk Assessment Form. Through systematic analysis of potential risks in procurement processes- including compliance, quality, delivery, and cost considerations - the Company continuously optimizes its procurementmanagement procedures by incorporating risk-level assessments and control measure recommendations. This approachenhances proactive risk prevention and operational effectiveness, ensuring both stable raw material supply and standardizedpurchasing decisions, thereby providing robust support for product quality and on-time delivery.
Supply Chain and Procurement Risk Control Process
ProcurementManagementEnvironment
Contractand OrderManagement
GoodsInspectionManagement
SupplierManagement
BiddingManagement
InventoryManagement
PurchaseRequisition and
Approval
Inquiryand SourceIdenticationManagement
PaymentManagement
Safeguarding theGreen Environment
The Company adheres to the environmental policy of "complying with regulations, preventingpollution, conserving energy and reducing consumption, and continuously improving". The Com-pany promotes and implements environmental protection laws, regulations, and relevant provi-sions, utilizes various resources and energy fully and rationally, controls and eliminates pollu-tion, fosters green development in production, and creates a favorable working and living envi-ronment.
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Environmental Compliance and EcosystemProtection
The Company has established management systems including the Environmental Protection Management Regulations andOperating Procedures and the Environmental Safety Monitoring & Measurement Control Procedures, which clearly definemanagement responsibilities. These systems cover environmental management of production facilities, pollution incidentmanagement, and incorporate an environmental performance evaluation mechanism to drive cleaner production. The Companyconducts Environmental Impact Assessments (EIA) for all projects in accordance with legal requirements, incorporatingecological and environmental factors into the evaluation scope. The "Three Simultaneities" environmental protection systemfor construction projects is strictly implemented. Veried records conrm that none of the Company's operational facilities arelocated within ecological conservation redlines or restricted development zones. The Company has been awarded titles such asJiangsu Provincial Green Leading Enterprise and Jiangsu Provincial Green Factory and its subsidiary the Company's subsidiaryGuangxin Nano has been awarded the titles of Zhejiang Provincial Green Factory, Zhejiang Provincial Water-saving Enterprise,and Ningbo Municipal Zero-waste Factory.
PrincipalresponsiblepersonSafety andEnvironmentalProtection Department
Grassroots employees
? As the rst person accountable for the Company's environmentalprotection efforts, they oversee the Company's overallenvironmental responsibilities, strategically guide the direction ofenvironmental management, and allocate resources to supportenvironmental initiatives.? As the Company's primary authority for environmentalprotection management, the department includes dedicatedenvironmental specialists responsible for providingenvironmental education, training, guidance, inspection, andsupervision to all departments.? In daily operations, the department is tasked with formulatingand enforcing environmental policies and plans, regularlymonitoring pollutant emissions, ensuring the properfunctioning of all environmental protection facilities, andcoordinating communication between internal teams andexternal environmental regulatory agencies, collaboration, andinspections.? The Company requires all employees to develop environmentalawareness. New employees must complete environmentalprotection training before assuming their positions, coveringnational laws and regulations, the Company's environmentalpolicies, operating procedures for environmental protectionfacilities, and emergency plans.? Employees must undergo at least one annual environmentaltraining session and pass the assessment to remain qualiedfor work. They must strictly implement environmental protectionrequirements in their respective job responsibilities.
Environmental Management Framework
Accident Types & Risk Levels
The Company and Its Major Subsidiary Have All PassedISO 14001 Environmental Management System Certication
The Company conducts environmental risk assessmentsand has developed a comprehensive Emergency ResponsePlan for Sudden Environmental Incidents. Based onproduction process characteristics and environmental risksubstances, a two-tier emergency response mechanism(plant-level and facility-level) has been established, withclearly dened responsibilities for the emergency commandcenter and on-site rescue teams. The plan implementsend-to-end measures covering prevention & early warning,information reporting, emergency handling, and post-incident recovery. Emergency reservoirs, firefightingequipment and other resources are maintained to rapidlyaddress environmental emergencies such as leaks or res,minimizing environmental pollution and casualties. Duringthe reporting period, the Company achieved its zero-incidenttarget for res/explosions.
Risk UnitVulnerabilities
Hazardous
Materials
Risk TypesCausesConsequences
Productionworkshop
Equipment leaks/improper operation
Nickel powder,ethanol
Leakage,
re,explosion
Operationalerrors, poormaintenance
Equipment leaks or improper operationcaused leaks of nickel powder andethanol, resulting in water and soilpollution; the fires generated by suchaccidents primarily affect the externalenvironment through radiant heatand dense smoke from combustionimpacting ambient air quality. Froma safety perspective, the mainmanifestations are personnel casualtiesand damage to nearby equipment.Rawmaterialwarehouse
Packaging damage/tip-over, transportfailure
Nickel blocks,powder
Leakage,
re,explosion
Improper storage of nickel blocks,nickel powder (finished/semi-finishedproducts), or nickel-containing accidentwastewater entering surface waterthrough stormwater drainage networksduring re incidents.Ethanolstorage
tank
MalfunctionEthanol
Leakage,
re,explosion
Fire/explosion accidents due tomalfunction. Additional ignition riskscaused by lightning strikes, staticelectricity, and electrical sparks.Gascylinderroom
MalfunctionAmmonia gas
Leakage,
re,explosion
Rupture of cylinders or pipelines maycause ammonia leaks, resulting incontamination of ambient air at theaffected site.Waste gastreatmentunit
Failure of waste gastreatment facilities
Non-methanehydrocarbons,particulate matter,
nickel and itscompounds
Leakage
Failure of waste gas treatmentfacilities leads to accidental emissionof untreated waste gas, impacting thesurrounding environment.
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In June 2024, the Company Conducted Hazardous Material Leakage Drills
Key Performance
During the reporting period, the Company invested RMB
1,159,600
in environmentalprotection, with no major environmental incidents or regulatory penalties incurred.
Risk UnitVulnerabilities
HazardousMaterials
Risk TypesCausesConsequencesWastewater
treatmentunit
Failure ofwastewatertreatment facilities orpipeline rupture
pH, COD, SS,copper, nickel
Leakage
Operationalerrors, poormaintenance
Failure of wastewater treatmentfacilities, pipeline rupture, orsimilar incidents may result inaccidental discharge of high-concentration polluted wastewater,causing contamination to the waterenvironment.Storageplace forhazardous
waste
Leakage duringhazardous wastestorage
Hazardous waste
Leakage,re,explosion
Leakage during hazardous wastestorage may cause water and soilpollution, and potentially trigger res orexplosions.
Environmental Emergency Procedures
? Warning conditions: A warning
is triggered when equipmentmalfunctions, meteorologicaldisasters, or other factors maylead to an environmental incident.
? Reporting procedure: Internally,
report to the emergency commandcenter within 1 hour; externally,report to higher-level governmentauthorities, the EcologicalEnvironment Bureau, and otherrelevant departments within 1hour.
? Pollution source control: Close
valves, use sandbags to blockflow, and activate emergencypools to collect accidentwastewater.
? Personnel evacuation: Evacuate
to designated assembly pointsaccording to the emergencyevacuation diagram and conduct aheadcount.? Emergency monitoring: Air
monitoring factors include totalnon-methane hydrocarbons,nickel, and its compounds. Waterquality monitoring factors includepH, COD, copper, nickel, etc., withan initial monitoring frequency ofup to 6 times per day.
? The emergency is terminatedby order of the command centeronce conditions such as accidentcontrol and pollutant dischargecompliance are met.
Warning & reportingEmergency disposalEmergency termination
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Energy and Addressing Climate Change
The Company has established energy management systems including the Energy and Resource Control Procedures,Energy Management Regulations, and Energy Measurement Management Regulations. It implemented a three-tier energymanagement network with position-based responsibilities, exercising full-process control from energy procurement and usage tomeasurement and evaluation. Performance-based incentives/disincentives are applied according to quota assessment results.On-site management assessment rules with specied penalties for energy violations were formulated to reduce consumptionand improve energy efciency.
GeneralManager in
ChargeEnergy Conservationand ConsumptionReduction ManagementCommittee
Energy Ofce
? Communicate energy policies and oversee the company-wide energy work? Regularly chair meetings of the "Company Energy Conservation andConsumption Reduction Management Committee" and lead the energy-related work of energy-consuming branch plants (workshops)? Inspect the implementation of systems, measures, and quota completion byvarious departments and designated personnel? Review major energy-saving technical renovation projects and theimplementation of reward and punishment measures across the Company? The General Manager in charge of energy serves as the chairperson,and the person in charge of energy power as the vice-chairperson.Members include the deputy directors in charge of equipment, energy-saving engineers, and energy management officers from each workshop(department) and branch plant
? Hold quarterly meetings to review energy-saving measures, energyconsumption quotas, and the execution of reward and punishment? Be responsible for energy management and assessment, consolidating
reports, implementing national policies, promoting energy-savingtechnologies, and holding monthly energy analysis meetings
Three-tier Energy Management Network with Position-based Responsibilities
ISO 50001 Energy Management System Certicate of the
Company
The Company has established a long-termenergy conservation mechanism and developsannual energy-saving plans to implement relatedinitiatives.The Company exceeded its annual electricityconservation targets during the reporting period,achieving above-plan energy savings:
Annual Electricity Consumption vs. PlannedAnnual Energy Consumption TargetsSuqian Base
1,519,800
kWh savedNingbo Base
5,608,000
kWh saved
Energy-saving Measures
Energy-savingtechnical renovation
Green lightingClean energy
Training andpromotion? Energy conservation
and consumption
reduction are
achieved by
implementing energy
efciency upgrades
for equipment such
as the current-
carrying system,
cooling system,
and environmental
control system,
and optimizing
processes like metal
evaporation, particle
forming, particle gas-
solid separation, and
particle grading and
dispersion.
? Replace 120W
energy-savinglamps with 48WLED clean at panellights (specication:
300×1200) and65W LED lights,which feature lowpower consumption,long service life,and environmentalbenets. A total of150 lighting xtureswere replaced,saving 95,000kWh ofelectricity annually.
? A 3,000KW
grid-connectedphotovoltaicpower station wasconstructed on the18,000-square-meter factory roof,achieving an annualenergy saving of 3million kWh.
? Conduct energy-saving knowledgetraining for workshopemployees and postslogans in ofceareas to advocate forgreen ofce practices.
Rooftop Photovoltaic System on Factory Building
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Electricity Conservation Slogans
Unit202420232022GasolineLiter15,293.3415,417.3714,077.74DieselLiter3,438.183,585.765,860.0293
LPGm
7.927.4510.775Indirect energy consumptiontce13,958.5711,751.5915,967.09
ElectricityMegawatt-hour113,620.7696,041.54129,267.88Total purchased electricityMegawatt-hour110,257.7992,870.10129,267.88Self-generated renewableelectricity usage
Megawatt-hour3,362.9713,171.44/Clean energy usageMegawatt-hour3,362.9713,171.44/Clean energy usage percentage%2.933.31/Including: solar energyMegawatt-hour3,362.9713,171.44/Including: solar energy proportion%100100/
CaseMotor Frequency Control Optimization Project
In June 2024, the Company implemented a motor frequency control optimization project, including inverterbracket welding and installation. Post-optimization, the project achieves annual electricity savings ofapproximately 1.5 million kWh per year.
Key Performance
During the reporting period, the Company's subsidiary Guangxin Nano's total greenhouse gas emissionswere
18,377
tCO
e, representing a reduction of
tCO
e (1.1%) compared to the 2023total of
18,594
tCO
e.
Unit2024
Scope 1 greenhouse gas emissionstCO
e34.914Scope 2 greenhouse gas emissionstCO
e18,342.134
Data Coverage Explanation:
1.The indirect energy consumption, electricity, and total purchased electricity cover operational sites including the Company and the Company's
subsidiaries Guangxin Nano and Ningbo Guangqian Electronic Material Co., Ltd.
2.The gasoline, diesel, self-generated renewable electricity usage, clean energy usage, clean energy usage percentage, solar energy, and solar
energy proportion cover operational sites including the Company and the Company's subsidiary Guangxin Nano.
3.The LPG covers the operating site the Company's subsidiary Guangxin Nano.
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Pollution Prevention and ControlThe Company strictly complies with environmental laws and regulations including the Environmental Protection Law, Law of thePeople's Republic of China on the Prevention and Control of Atmospheric Pollution, and Law of the People's Republic of Chinaon the Prevention and Control of Solid Waste Pollution. It has established management systems such as the Water PollutantDischarge Control Procedures, Air Pollutant Emission Control Procedures, Noise Emission Control Procedures, and Solid WasteDischarge Control Procedures, with clearly dened management responsibilities. The Company has achieved 100% compliancewith noise, wastewater, and exhaust emission standards at all facility boundaries.Wastewater DischargeThe Company's wastewater is categorized into industrial wastewater and domestic sewage. Through strict compliancewith water pollutant discharge standards, industrial wastewater is fully recycled without external discharge.
Waste DischargeThe Company's waste is categorized into general solid waste,hazardous waste, and domestic garbage. General solid waste, includingused crucibles, waste metal powder, discarded lter bags, waste ltercloth, waste filtering materials, waste packaging, and spent waterpurifier filter cartridges, is managed in compliance with the Standardfor Pollution Control on the Storage and Disposal for General IndustrialSolid Wastes (GB18599-2001) and recycled by licensed companies forremanufacturing purposes. Hazardous waste such as waste ethanoland sludge is stored according to the requirements specified in theStandard for Pollution Control on Hazardous Waste Storage (GB18597-2001). Domestic garbage is collected and disposed of by environmentalsanitation departments The Company classies, stores, and transportssolid waste according to its management regulations, and maintainshazardous waste registries that accurately record generation, collection,storage, transfer, and disposal activities. During the reporting period,the Company achieved its 100% waste disposal rate target.
Hazardous Substance ManagementThe Company has established hazardous substance management systems including the Hazardous Substance Managementand Control Procedures and the Toxic and Hazardous Substance Control Regulations for Raw Materials. These systemsmanage hazardous substances under RoHS (such as cadmium, lead, mercury, etc.) and halogens (chlorine, bromine)throughout production and packaging processes to ensure products comply with international environmental regulations andcustomer requirements. The procedures require: procurement of environmentally compliant raw materials with supplier testreports, strict IQC inspections of incoming materials, thorough traceability and segregation during manufacturing processes, andclearly dened limit standards for RoHS and halogen substances.
Exhaust EmissionThe Company implements the Integrated Emission Standard of Air Pollutants for exhaust emissions. With an annual totalemission control target of 0.097 t/a for nickel and its compounds, the Company's actual emissions reached 0.820 kg/a, fullycomplying with the total quantity control requirements. The Company conducts routine maintenance and testing of oil fumecollection/ltration systems and acid mist collection/neutralization systems in accordance with environmental impact assessmentapprovals and pollution discharge permit requirements. Annual third-party environmental testing is performed. All exhaust gasesare treated through bag lters, water spray towers, and biological trickling lters before emission. Exhaust from hazardous wastestorage is controlled via sealed containers to ensure compliance with emission standards.
Wastewater Discharge Performance of the Company's
Subsidiary Guangxin Nano
Unit2024
Total wastewater discharged10,000 m
0.89
Including: total industrial wastewater10,000 m
Including: total domestic wastewater10,000 m
0.89
Chemical oxygen demand (COD)Tons0.36Ammonia nitrogen content (NH3-N)Tons0.02
Exhaust Gas Emissions Performance of the Company's
Subsidiary Guangxin Nano
Unit2024Volatile organic compounds (VOCs) emissionKg2,963
Particulate matter (PM) emissionKg2,462
Waste Discharge Performance of the Company's
Subsidiary Guangxin Nano
Unit202420232022Total waste generatedTons270295.43309.09Including: total hazardous wasteTons033.4317.54Including: total non-hazardous wasteTons270262291.55
Total recycled/reused wasteTons270262291.55
Waste recycling rate%10088.6894.32
Industrial wastewaterDomestic sewage? Industrial wastewater primarily comes from acid
washing processes, which after being activated,filtered and purified at the wastewater treatmentstation, is returned to workshops as industrial waterand ultimately reused for spray towers and equipmentcooling, achieving complete circular utilization.
? Domestic sewage, including toiletwastewater and cleaning wastewater,is treated to meet standards throughseptic tanks and purification tanksbefore being discharged into themunicipal sewage network.
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S/NProhibited Toxic and Hazardous SubstancesObjects
ContentStandards
Heavy metals
* Cadmium and cadmium compoundsAll raw materialsLimit<5ppm2* Lead and lead compoundsAll raw materialsLimit<5ppm3* Mercury and mercury compoundsAll raw materialsLimit<5ppm4* Cr
6+ compoundsAll raw materialsLimit<5ppm
Organochlorinecompounds
Polychlorinated biphenyls (PCBs)All raw materialsProhibited6Polychlorinated naphthalene (PCN)All raw materialsProhibited7Chlorinated parafns (CP)All raw materialsProhibited8Other organochlorine compoundsAll raw materialsRestricted
Organobrominecompounds
* Polybrominated biphenyls (PBB)All raw materialsLimit<5ppm10* Polybrominated diphenyl ethers (PBDE)All raw materialsLimit<5ppm11TBBPA-BAAll raw materialsProhibited12Other organobromine compoundsAll raw materialsProhibited13Organotin compounds (tributyltin, triphenyltin compounds)All raw materialsProhibited14AsbestosAll raw materialsProhibited15FormaldehydeAll raw materialsProhibited16Ozone-depleting substancesAll raw materialsProhibited17Radioactive materialAll raw materialsProhibited
Other inorganic compounds (white/yellow phosphorus, arsenic and its
compounds, selenium and its compounds)
All raw materialsProhibited
Substances of Very High Concern (SVHC) Candidate List recentlypublished by the European Chemicals Agency (ECHA)
All raw materialsProhibitedNotes: 1. Suppliers must provide written declarations conrming the absence of all prohibited toxic/hazardous substances listed above.
2. For substances marked with "*", suppliers must submit third-party test reports verifying compliance.
3. For restricted toxic/hazardous substances: If supplied materials contain these, suppliers must develop reduction plans with clear
timelines to achieve complete elimination.
Control of Hazardous Substances
Management of Hazardous ChemicalsThe Company has established hazardous chemical management systems including the Hazardous Chemicals ManagementProcedures and Hazardous Chemicals Control Procedures. These systems strictly regulate the entire lifecycle of hazardouschemicals - from procurement, warehousing, and storage to distribution, transportation, usage, and waste disposal - to preventleaks, explosions, and other accidents. The systems clearly dene the responsibilities of the Procurement Department, EHSDepartment, warehouse, and user departments, while specifying operational requirements for each process stage:
Procurement
? The user department submits an application, considering inventory space as needed. The ProcurementDepartment veries supplier qualications (e.g., production and business licenses) and prohibits purchasesfrom unlicensed suppliers.? Conrm compliance with standards for quality, packaging, etc., during procurement. Transporters must bequalied, and safety agreements must be signed to ensure transportation safety.
Ex-warehousing/ warehousing operations
? Warehouse staff must strictly register and inspect incoming goods. Conduct pre-storage checks (e.g.,certicates, quantity, labeling); after storage, the warehouse noties inspection, and materials are used onlyafter approval.
? Fire prevention measures must be taken for personnel, vehicles, and operations entering storage areas. Handleloading/unloading gently to prevent impact or tipping. Wear protective gear when handling corrosive materials,and use spark-free tools for ammable/explosive materials.Storage
? Store in dedicated warehouses/areas/storage rooms managed by designated personnel. Equip ventilation,
explosion-proof, and re prevention facilities based on material type and properties.? Chemicals prone to fire/dampness hazards must not be stored outdoors or in damp areas. Do not mixincompatible chemicals or those requiring different reghting methods. Immediately address any abnormalitiesduring storage.
Material requisition
? Implement an approval system: users submit a Material Requisition Application Form, and it is approved by
the workshop director or above, specifying purpose and quantity (1-2 days' supply). Return excess materials
promptly.? Warehouse staff issue materials upon approval. Both parties must wear protective gear; avoid direct hand
contact and prohibit eating/drinking in hazardous areas.
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Transportation and handling? Handle gently to prevent impact, dragging, or tipping. Do not transport incompatible or reactive chemicalstogether. Provide insulation/moisture protection for heat-/damp-sensitive materials.? Immediately initiate emergency procedures if abnormalities occur during transportation.
Usage
? Follow safety systems and regulations, and wear protective gloves, masks, etc.? Inspect containers before/after use; avoid spills, tipping, or leaks. User departments must equip relevantareas with reghting equipment.
Waste disposal? Follow the Waste Management Procedure:Dispose of hazardous waste (e.g., empty barrels, expired/remaining chemicals) in designated hazardous waste bins. Hand over to licensed disposal units; no litteringis allowed.
Additionally, the Company has formulated the Emergency Response Plan for Hazardous Chemical Leaks and theEmergency Response Plan for Hazardous Chemical Transportation Accidents. These plans specify departmentalresponsibilities, alarm procedures, leak prevention measures, and rescue protocols for chemical leaks and transportationincidents respectively. They provide emergency contact information including the Company's emergency hotline, andadhere to unied command principles to minimize accident impacts.
Resource UtilizationThe Company has established a Water Conservation System encompassing planned water usage, quota management, andmetering systems, with defined reward/penalty mechanisms and a five-year water-saving plan. Implementation is ensuredthrough enhanced inspection/maintenance and awareness training. A Water Conservation Leadership Team, chaired bythe Deputy General Manager with members from the Production Department, the Equipment Department, and other keydepartments, oversees corporate water management and conducts regular usage audits. The Production Department serves asthe water resources and metering authority, with designated part-time administrators responsible for internal water consumptionmeasurement and departmental usage reporting. All department heads manage their respective units' conservation efforts,collaboratively advancing water-saving and emission reduction initiatives.During the reporting period, the Company implemented various water-saving renovation projects and conducted waterconservation campaigns, specialized training sessions, and lectures. It actively participated in water conservation trainingprograms organized by water administration authorities. Through measures such as posting water-saving slogans at usagepoints and displaying banners, the Company enhanced employees' water conservation awareness. The Company has achievedits target of maintaining total water consumption ≤218,244 tons.
Publicity for Environmental Protection
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Unit202420232022
Total water consumptionTons222,723190,579306,062Total net freshwater consumptionm
222,723190,579306,062Water intake volume by water source: municipal
water supply
m
222,723190,579306,062
Water Conservation Retrot ProjectWater Savings
Water-efcient sprinklers for landscaping200m?/a
Circulating water system maintenance300m?/aReuse of puried water production rinse water1000m?/a
Optimized park irrigation plan200T/aCooling water system maintenance500T/a
Domestic water pipeline maintenance500T/a
CaseAutomatic Discharge and Recycle Treatment System for Cooling Circulating Water
In November 2024, the Company implemented an automatic discharge and recycle treatment system forcooling circulating water. When water conductivity reaches threshold levels, the system automaticallydischarges high-conductivity concentrated water to a recycling basin for purication before replenishingthe circulation system. This automated supply-discharge system signicantly improves water efciency andreduces circulating water consumption.The high-conductivity water is collected in the recovery basin and returned to the water treatment systemfor processing. Based on the actual evaporation rate of the cooling tower, the concentrated water treatmentefciency reaches approximately 70%, with an estimated water reduction of 1,000 m?/a.
The Company promotes green ofce initiatives by prioritizing digital systems to maximize paperless operations. The Companyhas implemented OA, ERP, and MES systems to handle all management documents through digital approval and sharing,with the exception of essential physical documents required for on-site operations. As of the end of the reporting period, theCompany had digitized 32 approval workows, achieving signicant reductions in both processing time and paper consumption.
Data Coverage Explanation:
1.The data in this table cover operational sites including the Company and the Company's subsidiaries Guangxin Nano and Ningbo Guangqian
Electronic Material Co., Ltd.
Sharing DevelopmentAchievements
The Company adheres to a people-oriented development philosophy, continuouslyoptimizing talent management. The Company maintains a growth-supportive andincentive-driven talent mechanism by offering competitive compensation and bene-fits, while fostering an open, fair, collaborative, and inclusive work environment tounlock employee potential and achieve mutual growth between individuals and theorganization.
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Employee Rights and BenetsThe Company adheres to the principles of "Openness, Fairness, Impartiality, and Merit-based Selection" in employeerecruitment. The Company respects and safeguards fundamental employee rights, provides equal development opportunities,and strives to optimize talent utilization across selection, development, deployment, and retention to achieve mutual growth.
Recruitment and EmploymentThe Company strictly complies with laws and regulations, having established institutional documents including theHuman Resource Management System and Employee Handbook. The Company continuously improves its policyframework for compliant employment and rights protection, prohibiting child labor and forced labor while eliminatingdiscriminatory or harassing behaviors. These efforts actively build a diverse, equitable, and inclusive workplaceenvironment. During the reporting period, the Company recorded zero incidents of child labor, discrimination, orforced labor.
Key Performance
During the reporting period, the Company maintained a total workforce of
employees, comprising
part-time employees,
employees with disabilities,
new hires, with
100%
socialinsurance coverage and a
19.69%
employee turnover rate.
Prohibition of Child Labor
Non-Discrimination andAnti-harassment? The Company's ChildLabor PreventionProcedures explicitlyprohibit the recruitmentof minors under 16 yearsold, with mandatory IDverication during hiringto ensure accurate ageconrmation. Shouldany employee under16 years of age beidentied, the Companywill implement allnecessary supportmeasures and actionsto ensure the safety,health, education, anddevelopment of thedischarged child laborer.
? The Company's Non-Discrimination and Anti-harassmentProcedures explicitly guarantee equitable employmentopportunities. All employment decisions - including hiring,compensation, training, promotion, demotion, and retirement- are based solely on job competence and business needs,without consideration of gender, age, religion, race, caste,origin, social background, disability, nationality, union afliation,political stance, sexual orientation, family responsibilities,marital status, or health conditions. In addition, the Companystrictly upholds the dignity and equal status of all personnelby enforcing behavioral standards for employees, suppliers,clients, and visitors within company premises. Thesemeasures comprehensively safeguard against physical, verbal,psychological, and sexual harassment or abuse in any form.
? Employees who believe they have experienced discriminationor harassment may le complaints orally or in writing directly tothe General Manager. The General Manager or Deputy GeneralManager will designate investigators to respond with ndingsto the complainant within ve working days. For veried cases:
Minor violations require education and formal acknowledgmentof wrongdoing; Severe cases will face criminal liabilityprosecution; The involved department must immediately rectifydiscriminatory practices. Additionally, union representativeshold monthly meetings with members to review potentialdiscrimination or harassment across all operational aspects.
Persons
Persons
Persons
Persons
Persons
Persons
Persons
Persons
Persons
Persons
Persons
Persons
Number of employeesby educationbackground
Number ofemployees by rank
Number ofemployees by
gender
Number ofemployees by age
Number ofemployees withdoctor’s degreeNumber of employeeswith master's degreeNumber of employeeswith bachelor's degree
Number of employees withlevels of education belowbachelor's degree
Ordinaryemployees
Number ofemployees in middlemanagementNumber of employees insenior management
Number of employeesaged 30-50
Number of employeesbelow 30 years oldNumber of employees over50 years oldNumber of female employees
Number of maleemployees
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Benets System
To attract and retain high-level technical talent, the Company implements customized "one-person-one-salary" compensationstrategies for individuals with master's degrees (or higher) or senior professional titles, ensuring remuneration aligns withboth capability and contribution. Additionally, the Company provides specialized housing subsidies or directly allocatesrental accommodations for high-skilled technical talent, while assisting with spouse employment and children's educationarrangements to effectively address talent retention concerns. Furthermore, the Company has established a special equityincentive plan, enabling core technical personnel to hold company shares and share in the enterprise's developmentachievements.
Compensation and BenetsThe Company recognizes that a comprehensive compensation and benefits system is essential for attracting andretaining top talent. The Company provides competitive salary structures and benefits packages in full compliancewith national and local regulations. The Company's compensation structure comprises base salary, overtime pay,comprehensive allowances, bonuses (including perfect attendance awards and discipline-based incentives), andadjustments. The Company guarantees all employee wages meet or exceed local minimum wage standards.
Health and Safety
The Company implements national work safety policies in strict compliance with the Work Safety Law andOccupational Disease Prevention and Control Law, fulfilling work safety responsibilities through enhanced safetyawareness training to prevent major accidents. During the reporting period, the Company was selected as a "StandingCouncil Member Unit of Suqian Work Safety Management Association".The Company rmly upholds the "safety rst" principle, continuously optimizes its safety management system, has compiledthe Work Safety Rules and Regulations, rigorously implements hazard identication and remediation, and consistently elevatessafety management standards. The Company implements multidimensional safety awareness enhancement through regularsafety inspections, specialized training sessions for relevant personnel, and routine emergency drills.
The Company and Its Subsidiary Guangxin Nano's ISO 45001 Occupational
Health and Safety Management System Certication
The Company - Grade II StandardizedEnterprise for Work Safety Certication
Work safety policy: Safety First, Prevention Priority; People-Oriented, Life Valuing;Comprehensive Management, Continuous Improvement.
The Company has established a work safety leadership group, chaired by the General Manager, responsible for approvingsafety management objectives. Primary department heads are in charge of daily safety management, while the EHSDepartment conducts inspections and evaluations of safety implementation.
Key Safety Management SystemsWork Safety Education andTraining SystemOccupational Health ManagementSystem and OperatingProcedures, etc.
? Provide three-tier work safety training for all employees (including new hires,contract workers, and temporary staff).
? Implement occupational health knowledge training and disease preventionmeasures for positions exposed to occupational hazards. Employees are requiredto understand the occupational hazard factors specic to their roles and complywith the Company's PPE (personal protective equipment) wearing requirements.
Statutory Benets
Special Benets? Social insurance: pension insurance,work injury insurance, unemploymentinsurance, basic medical insurance, criticalillness medical aid insurance, maternityinsurance? Housing fund: housing provident fund? Leave entitlements: statutory holidays,marriage leave, bereavement leave, workinjury leave, maternity leave, and familyplanning leave, etc.
? Meal subsidy: cafeteria dining allowance? Housing assistance: Employees residingover 20km from the Company may applyfor accommodation or rental subsidies.? Business travel allowance: official travel
expense reimbursement for work-relatedtrips.? Other benefits: summer welfare benefits,
high-temperature subsidies, seniorityawards, employee referral bonuses, andholiday gifts/cash allowances, etc.
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Work Safety Inspection andHazard Rectication System,Work Safety Hazard Investigationand Governance System, etc.
Emergency Plan ManagementSystem, Emergency RescueSupport System, etc.Special Equipment EmergencyPlan and Safety OperatingProcedures, Special OperationsPersonnel Management System,Special Equipment ManagementSystem, etc.Safety Responsibility andReward-Punishment System
? Combine specialized inspection with workshop-level inspection, daily inspection
with regular inspection, and general inspection with key inspection. Ensureinspections at every level to plug loopholes. Implement a three-tier safetyinspection process (company/workshop/team).
? Major safety hazards identied in inspections are promptly reported to relevantpersonnel for resolution.? Establish an emergency management system, deploy response measures forsudden accidents in accordance with emergency plans, and ensure the effectiveexecution of emergency work.? By establishing a systematic safety management system for special equipment,the operational risks of forklifts, elevators, pressure vessels, and other specialequipment are covered. Targeted emergency plans and safety operatingprocedures are developed to ensure that relevant personnel are equipped withsafety knowledge and certied for their roles, systematically reducing the risk ofproduction interruptions and safeguarding employees' occupational safety.? Establish a reward fund specically designated for work safety assessment. Thisfund is used to recognize and incentivize employees who achieve outstandingresults in work safety, propose reasonable suggestions, promptly eliminatehazards, meet safety management objectives, and prevent work-related injuries.
The Company sets safety objectives at both the corporate and departmental levels and tracks progress toward these goals.
The Company conducts irregular safety risk analyses and compiles safety risk and responsibility lists. These responsibilitiesare assigned to relevant departments and individuals. Through work safety meetings, monthly safety meetings, annual safetymeetings, and ad hoc safety meetings, the Company stays informed about the safety performance during different periods. Thisstrengthens safety management and ensures the effective implementation of all safety measures.
Overall objectiveCompletion statusZero occurrence of re/explosionAchievedNo major safety incidents, occupational diseases, or suspected
occupational diseases for the year
Achieved100% completion rate for hazard remediationAchievedKey Performance
Key Performance
During the reporting period, the Company's total investment in work safety amounted to RMB545,200
, with RMB
486,300
allocated to employee work injury insurance.No incidents of re, explosion, electric shock, or major nancial losses occurred company-wide. Therewere zero work-related fatalities and zero cases of occupational diseases.
During the reporting period, the Company organized
specialized training sessions on hazardouschemical usage, occupational health, fire safety, and emergency response. External emergencyregulatory inspections, gas safety checks, special equipment inspections, hazardous chemical usageaudits, major holiday inspections, specialized inspections, and routine inspections totaled over
instances.A total of
safety training sessions were conducted, with cumulative work safety training hoursreaching
776.5
.
CaseWork Safety Emergency Drill
In June 2024, the Company conducted a systematic emergency drill for work safety accidents, whichincluded three specialized exercises: re emergency evacuation, electric shock rescue, and ethanol leakresponse. Each drill involved five functional teams, such as the emergency rescue team and logisticssupport team, equipped with corresponding supplies. The entire evacuation process was completed withinve minutes. The drill identied shortcomings and issues in employees' emergency response capabilities,providing clear direction for subsequent training and plan improvements.
Fire Emergency DrillRisk Identication Training
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Employee GrowthThe Company places high importance on employee growth by establishing a systematic training and learning mechanism topromote long-term sustainable development. At the same time, the Company actively fosters a harmonious and collaborativework environment, conveying warmth through a people-oriented approach, ensuring employees feel valued and supported,thereby advancing together with the Company.
Training and DevelopmentKeeping pace with the times and remaining committed to continuous learning are the cornerstones of maintainingcompetitiveness and value. Each year, The Company designs customized annual training plans for employees,covering comprehensive and diverse topics such as new employee onboarding, work safety standards reinforcement,operation and management skills enhancement, professional skill development, and R&D innovation breakthroughs.Utilizing a mix of online and offline formats, as well as combining theory with practice, these training programssupport holistic employee growth and corporate development.
Employee Career Promotion Path
CaseEnvironmental and Occupational Health & Safety Management System Training
In July 2024, the Company invited external experts to conduct training on Environmental Factors andHazard Assessment Methods for the general manager and relevant department colleagues. The trainingfocused on ISO 14001 and ISO 45001 standards, emphasizing the identication methods and evaluationrequirements for environmental factors and hazards. It claried the scope of identication, covering areassuch as solid waste, wastewater, noise, resource consumption, and re risks in ofce and project sites, aswell as scenarios requiring re-identication and re-evaluation, and management control measures. Throughon-site Q&A assessments, the training ensured all participants correctly understood the knowledge,effectively enhancing their comprehension of the management system.
Management (M)Professional (P)Sales (S)Functional (F)
Operation worker
(W)
Management Technical / functional (skills)
M8
GeneralManagerM7Deputy GeneralManagerM6Senior DirectorM5DirectorM4Senior ManagerM3ManagerM2SeniorSupervisorM1Supervisor
P8Chief EngineerP7Senior EngineerP6
Associate SeniorEngineerP5IntermediateEngineerP4Junior EngineerP3SeniorTechnicianP2IntermediateTechnicianP1JuniorTechnician
S8
SeasonedBusiness SpecialistS7Senior BusinessSpecialistS6BusinessSpecialistS5SeasonedBusiness OfcerS4Senior BusinessOfcerS3IntermediateBusiness OfcerS2Junior BusinessOfcerS1Sales Assistant
F8
SeasonedSpecialistF7Senior SpecialistF6SpecialistF5Seasoned ClerkF4Senior ClerkF3IntermediateClerkF2ClerkF1Junior Clerk
W3
SenioremployeesW2SkilledemployeesW1Ordinaryemployees
Staff level
Supervisor
level
Manager
level
Director
level
Generalmanager
level
Level
CaseNew Employee Training
In June 2024, to help new hires quickly familiarize with the Company, understand their responsibilities andcode of conduct, and gain a comprehensive overview of Company Culture and policies, The Companyorganized its first batch of new employee training in 2024 for the year, with 17 participants. The HRDepartment head systematically introduced the Company's culture and policies, while the Safety Officehead thoroughly explained safety regulations, corporate safety red lines, job-specific risk points, andprotective requirements. By sharing real safety incidents and screening safety awareness videos, thetraining highlighted the severe consequences of non-compliance (e.g., failing to wear personal protectiveequipment as required). Discussions centered on "the dangers of complacency" and "the necessity ofsafety precautions", with new employees actively sharing insights and raising questions.The training strengthened employees' sense of belonging and alignment with the Company. Participants widelyreported that the safety cases left a deep impression, helping them understand the life-saving and family-protecting principles behind safety rules, thereby reinforcing their commitment to work safety.
New Employee Training
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Employee CareThe Company places high importance on employee care and fostering a positive organizational atmosphere. On one hand, theCompany actively promotes work-life balance by regularly organizing various cultural and sports activities to enrich employees'leisure time, enhance their satisfaction and sense of belonging, and build a harmonious and cohesive work environment. On theother hand, the Company improves communication and feedback mechanisms, establishes the Whistleblowing and ComplaintManagement Measures, sets up employee suggestion boxes across the facility, and holds regular employee forums to ensureopen channels for voicing concerns. Additionally, the Company pays special attention to the well-being of female employeesby implementing parental leave policies and organizing dedicated activities during International Women's Day, including giftdistributions and health consultation services, to demonstrate comprehensive care for female staff.
Unit2024Total training hoursHours28,757.5Average training hours per employeeHours31.81Total training hours for senior managementHours8.25Average training hours per senior managementHours2.75Total number of training sessions per yearTimes58
Annual training expenditureRMB 10,00010Number of employees trainedPerson-time1,214
Case
"Warmth Delivery Initiative" for Employees in Special Hardship
To provide tangible support to employees facing extreme financial difficulties, the Company launchedits annual "Warmth Delivery Initiative". The program requires subsidiaries and departments to identifyeligible employees who meet special hardship criteria and have served the Company for at least one year.Applicants submit supporting documents for departmental verication, followed by reviews at grassrootsworkshop, branch plant/department levels before nal consolidation by the labor union. Approved casesreceive tailored financial assistance. In 2024, the Company disbursed RMB 8,000 in aid through thisprogram. By establishing a standardized and transparent application review process, the Companyprovides timely and effective material assistance as well as emotional support to employees facingsignificant hardships. This initiative reflects fulfillment of the enterprise's social responsibility toward itsworkforce and conveys the organization's humanistic care.
Key Performance
During the reporting period, the Company's subsidiary Guangxin Nano conducted its annual employeesatisfaction survey, with a total of
employees participating. The overall employee satisfactionscore reached
94.39
points.
Case
Delivering Coolness in the Heat, Conveying Corporate Care
To combat prolonged summer heat and safeguardthe health and work safety of frontline employeesworking outdoors and in high-temperatureworkshops, the Company implemented measuresfrom July to October 2024 in Ningbo and Suqian.These measures included distributing high-temperature allowances and summer supplies,adjusting cafeteria menus, and providing mungbean soup. Additionally, 500 frontline employeesreceived chilled electrolyte-rich salt soda, effectivelyreducing the risk of heatstroke and heat exhaustionwhile preventing sudden health incidents. Theseactions not only conveyed the Company's warmth tothose working in extreme heat but also signicantlyenhanced the sense of belonging among frontlineemployees.
Delivering Coolness in the Heat
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CaseBuilding Friendship Through Sports, Promoting Cross-Departmental Exchange and Health
To advocate for a healthy lifestyle, the concept of happy work, and to enhance cross-departmentalcollaboration, the Company created a WeChat group for sports enthusiasts. Through weekly sign-upactivities initiated by the group administrator, employees were encouraged to voluntarily participate inbasketball, badminton, or other sports activities after work every Friday. This initiative effectively boostedemployees' health awareness, alleviated work pressure, and, more importantly, broke down barriersbetween departments. It fostered mutual understanding and respect among employees, laying a foundationof trust for formal workplace communication.
Basketball Activity
Badminton Activity
Employee Activities
New Year Tug-of-War Competition
Party Member Study Activity
Fun Sports Day on Dragon Boat Festival
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Empowering SocietyThe Company is committed to advancing alongside the industry by actively participating in trade associations, exhibitions, andstandard-setting initiatives. In 2024, the Company attended the 5th Solid-State Battery Key Materials Technology Conferenceto stay abreast of cutting-edge industry developments. Additionally, the Company contributed to the revision of the Micro-Nano Copper Powder industry standard at a meeting organized by the Chinese Nonferrous Metal Standardization TechnicalCommittee, providing substantial support for the establishment of industry benchmarks.
The Company actively promotes industry-academia-research integration and talent development. In collaboration with theNingbo Institute of Materials Technology & Engineering, Chinese Academy of Sciences (CAS), the Company co-establisheda graduate student internship and practice base and founded the "Boqian Scholarship" with an annual fund to encourageoutstanding students to engage in scientic research. Furthermore, the Company has established in-depth industry-academia-research partnerships with Dalian University of Technology and China Jiliang University, leveraging combined resources to drivetechnological innovation and collaborative talent cultivation for the industry.
From 2022 to 2023, The Company launched a rural-enterprise pairing assistance initiative in Daliangshan, Sichuan, donatingfunds for two consecutive years. Through concrete actions, the Company supported local development, demonstrated corporateresponsibility, and contributed to rural revitalization and regional progress.
Co-establishing a Graduate Internship and Practice Base
with CAS Ningbo Institute
Participating in Industry Standard Revision Meeting
Boqian Scholarship Award Ceremony
Supporting CAS Ningbo Institute's Outstanding
Graduates Study Tour
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Conclusion
Key Performance TableCategory IndicatorUnit2024
Environmentalperformance
Environmental protection inputRMB 10,000115.96Indirect energy consumptiontce13,958.57ElectricityMegawatt-hour113,620.76Total purchased electricityMegawatt-hour110,257.79Total water consumptionTons222,723Total net freshwater consumptionm
222,723Water intake volume by water source: municipal water supplym
222,723
Socialperformance
Number of R&D personnelPersons 135R&D investmentRMB 10,0005,017.94Number of valid patentsNumber 164Utility patent Number 62Utility model patentNumber 78Total number of employeesPersons 904FemalePersons 126MalePersons 778Below bachelor's degreePersons 776Bachelor Persons 112MasterPersons 13DoctoratePersons 3Under 30 years oldPersons 10330-50 years oldPersons 580Over 50 years oldPersons 221
Category IndicatorUnit2024
Socialperformance
Senior managementPersons 11Middle managementPersons 59Ordinary employeesPersons 834Total investment in work safetyRMB 10,00054.52Total hours of safety trainingHours776.5Total employee training hoursHours28,757.50Average training hours per employeeHours31.81Total training hours for senior managementHours8.25Average training hours per senior managementHours2.75Total number of employee training sessionsTimes58Number of employees trainedPerson-time1,214Employee satisfaction%94.39Social contributionRMB 10,00010
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Stock Exchange "Guidelines" Indicator IndexIndicator Index
Topics disclosedChapter
Addressing climate change Energy and addressing climate changePollutant emissionPollution controlWaste disposalPollution controlEcosystem and biodiversityconservation
Environmental compliance and ecosystem protectionEnvironmental compliancemanagement
Environmental compliance and ecosystem protectionEnergy utilizationEnergy and addressing climate changeUtilization of water resourcesResource utilizationCircular economyResource utilizationRural revitalizationEmpowering societySocial contributionEmpowering societyInnovation-driven developmentInnovation-driven developmentTechnology ethics
Not involved. The core business of the Company does not involve scientic research
and technology development in sensitive elds such as life science and articial
intelligence ethics.Supply chain securitySupply chain securityEqual treatment of SMEs
Not involved. The Company treats SMEs equally, and there is no overdue payment
for SMEs.Product and service safety andquality
Product quality; Customer serviceData security and customerprivacy protection
Intelligent manufacturing and data securityEmployees Employee rights and benets; Health and safety; Employee growthDue diligenceRisk internal controlStakeholder communicationESG ManagementAnti-commercial bribery and anti-corruption
Business ethicsAnti-unfair competitionBusiness ethics
Global Reporting Initiative (GRI) Standards IndexInstruction for Use
The Company has reported the information cited in this GRI content index for 2024 with referenceto the GRI Standards.GRI 1 usedGRI 1: Foundation 2021GRI STANDARDDISCLOSURELOCATION
GRI 2: GeneralDisclosures 2021
2-1 Organizational detailsIntroduction to The Company2-2 Entities included in the organization's sustainabilityreporting
About this Report2-3 Reporting period, frequency, and contact pointAbout this Report2-4 Restatements of informationAbout this Report2-6 Activities, value chain, and other business relationshipsESG management2-7 Employees
Employee rights and benets;
Health and safety; Employee
growth2-9 Governance structure and compositionCorporate governance2-10 Nomination and selection of the highest governance bodyCorporate governance2-11 Chair of the highest governance bodyCorporate governance2-16 Communication of critical concernsESG management2-17 Collective knowledge of the highest governance bodyCorporate governance2-25 Processes to remediate negative impactsCustomer service2-26 Mechanism for seeking advice and raising concerns
Business ethics; Employee
growth2-29 Approach to stakeholder engagementESG managementGRI 3: Material Topics2021
3-1 Process to determine material topicsESG management3-2 List of material topicsESG management3-3 Management of material topicsESG managementGRI 201: EconomicPerformance 2016
201-1 Direct economic value generated and distributedSee the annual report201-3 Dened benet plan obligations and other retirementplans
Employee rights and benets
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GRI 203: IndirectEconomic Impacts2016
203-1 Infrastructure investments and services supportedEmpowering society203-2 Signicant indirect economic impactsEmpowering society205-2 Communication and training about anti-corruptionpolicies and procedures
Business ethics
GRI 207: Tax 2019
207-1 Approach to taxRisk internal control207-2 Tax governance, control, and risk managementRisk internal control207-3 Stakeholder engagement and management of concernsrelated to tax
See the annual report207-4 Country-by-country reportingSee the annual reportGRI 302: Energy 2016
302-1 Energy consumption within the organization
Energy and addressing climate
change302-4 Reduction of energy consumption
Energy and addressing climate
change302-5 Reductions in energy requirements of products andservices
Energy and addressing climate
changeGRI 303: Water andEfuents 2018
303-1 Interactions with water as a shared resourceResource utilization303-2 Management of water discharge-related impactsPollution control303-3 Water withdrawalResource utilization303-4 Water dischargePollution control
GRI 305: Emissions2016
305-1 Direct (Scope 1) GHG emissions
Energy and addressing climate
change305-2 Energy indirect (Scope 2) GHG emissions
Energy and addressing climate
change305-5 Reduction of GHG emissions
Energy and addressing climate
change
GRI 306: Waste 2020
306-1 Waste generation and signicant waste-related impactsPollution control306-2 Management of signicant waste-related impactsPollution control306-3 Waste generatedPollution control306-4 Waste diverted from disposalPollution control
GRI 401: Employment2016
401-1 New employee hires and employee turnoverEmployee rights and benets401-2 Benets provided to full-time employees that are notprovided to temporary or part-time employees
Employee rights and benets401-3 Parental leaveEmployee rights and benets
GRI STANDARDDISCLOSURELOCATION
GRI 403: OccupationalHealth and Safety 2018
403-1 Occupational health and safety management systemHealth and safety403-2 Hazard identication, risk assessment, and incidentinvestigation
Health and safety403-3 Occupational health servicesHealth and safety403-4 Worker participation, consultation, and communicationon occupational health and safety
Health and safety403-5 Worker training on occupational health and safetyHealth and safety403-6 Promotion of worker healthHealth and safety403-7 Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Health and safety403-8 Workers covered by an occupational health and safetymanagement system
Health and safetyGRI 404: Training andEducation 2016
404-1 Average hours of training per year per employeeEmployee growth404-2 Programs for upgrading employee skills and transitionassistance programs
Employee growthGRI 405: Diversity andEqual Opportunity2016
405-1 Diversity of governance bodies and employees
Corporate governance; Employee
rights and benetsGRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions takenEmployee rights and benetsGRI 413: LocalCommunities 2016
413-1 Operations with local community engagement, impact
assessments, and development programs
Empowering society
GRI STANDARDDISCLOSURELOCATION
Feedback from ReadersDear Readers,Thank you for reading the 2024 Social Responsibility Report of Jiangsu Boqian New Materials Stock Co., Ltd. In order to provideyou and other stakeholders with more professional and valuable corporate ESG information, please assist us in answeringrelevant questions in the feedback form. Your feedback will help us further improve our ESG work in the future.
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Add: No.23 Jiangshan Avenue, High-tech Development Zone, Suqian City, Jiangsu ProvinceTel: 0527-80805772Fax: 0527-80805929E-mail: pvm@boqianpvm.comWebsite: www.boqianpvm.com
Jiangsu Boqian New Materials Stock Co., Ltd.