SUSTAINABILITYREPORT

China Resources Chemical Innovative Materials Co., Ltd.

2025

CONTENTS

Addressing the Challenges of Climate ChangeAdvancing Circular Resource UtilizationStrengthening Environmental and EcologicalFoundationStrictly Controlling the Discharge of the ThreeWastes and Reducing Pollution

Enhancing the Effectiveness of Corporate Gover-nanceUpholding Business Compliance PrinciplesBuilding Barriers Against Operational RisksStrengthening Technology Innovation Leader-ship

Future ProspectsIndex of IndicatorsKey Performance IndicatorsFeedback

Acting for Good, Building a HarmoniousSociety

Empowering Employee Well-being and Devel-opmentAdvancing Customer Value Co-creationBuilding a Responsible Supply Chain NetworkDeepening Harmonious Community Develop-ment

About This ReportMessage from the ChairmanAbout China Resources Chemical Innova-tive MaterialsOur Sustainability JourneyGreen Cycle, Infinite Innovation

Pursuing Green Development for a SharedEcological Future

Pursuing Thriving Governance, AdvancingTogether toward a Sustainable Future

｜ About This Report ｜｜ About This Report ｜

Reporting PeriodThis report is the fifth sustainability report released by China Resources Chemical Innovative Materials Co., Ltd.Adhering to the principles of objectivity, comprehensiveness, standardization, and transparency, this report providesa detailed account of the Company’s management approach, notable practices, and annual performance in environ-mental, social, and governance (ESG) areas in 2025.Reporting ScopeUnless otherwise specified, this report primarily describes the practices and performance of China Resources Chemi-cal Innovative Materials Co., Ltd. and its subsidiaries from January 1, 2025 to December 31, 2025 in key areas includ-ing green development, employee growth, workplace safety, win-win partnerships, social contribution, soundgovernance, integrity in business operations, and technological innovation. Certain content may also refer back to2025 and earlier years, or extend to 2026.Organizational ScopeThis report covers China Resources Chemical Innovative Materials Co., Ltd. and its affiliated entities. For ease ofexpression, “China Resources Chemical Innovative Materials,” the “Company,” and “we/us/our” refer to ChinaResources Chemical Innovative Materials Co., Ltd.; “Changzhou Base” refers to Changzhou Branch of China ResourcesChemical Innovative Materials Co., Ltd.; and “Zhuhai Base” refers to Zhuhai China Resources Chemical InnovativeMaterials Co., Ltd. In this report, “China Resources Group,” “China Resources,” and the “Group” are abbreviated refer-ences to China Resources (Holdings) Co., Ltd.Preparation Basis

This report is prepared with reference to the Global Reporting Initiative (GRI) Standards , the Guiding Opinions onBetter Fulfillment of Social Responsibilities by Central State-owned Enterprises in the New Era and the Guiding Opin-ions on Better Fulfillment of Social Responsibilities issued by the State-owned Assets Supervision and AdministrationCommission of the State Council，the General Framework of Guidelines on Corporate Sustainability Reporting forChinese Enterprises (CASS-ESG 6.0) issued by the China Enterprise Reform and Development Society and the CSRCloud Research Institute, the Guidelines No.2 for Self-regulation of Listed Companies—Normative Operations on theChiNext Listed Companies and the Guidelines No.17 for Self-regulation of Listed Companies—Sustainability Reports(Trial) issued by the Shenzhen Stock Exchange, as well as “1+N” Social Responsibility Indicator Management Manualof China Resources Group. Meanwhile, in the Report, we take into full consideration the expectations of stakeholdersand incorporate our specific ESG practices.

Preparation ProcessThe report was prepared through a series of steps, including peer benchmarking, questionnaire surveys, informationcollection, information verification, report drafting, management review and approval, Board deliberation, and publicdisclosure, in order to ensure the completeness, authenticity, and balance of the information presented.

Data StatementThe data used in this report is derived from the Company’s operational raw data, annual financial data, internalstatistical reports, third-party evaluations and interviews, and other relevant sources. Unless otherwise specified, thefinancial data contained in this report are denominated in RMB. In the event of any discrepancy between this reportand the financial report, the financial report shall prevail.Quality Assurance

The Company undertakes that this report contains no false records or misleading statements, and assumes respon-sibility for the authenticity, accuracy, and completeness of its contents.

Access to the Report

This report is published in both printed and electronic forms. The electronic version is available for download andreading on the Company’s official website (https://www.crcchem.com/). To reduce the environmental impact ofprinting, we encourage readers to access and read the electronic version whenever possible.

Contact InformationOffice Address: Floors 11–12 and 14, Building 3, Linghang Tower, Xinbei District, Changzhou, Jiangsu ProvincePostal Code: 213000Tel: 0519-85177777

About This Report

The year 2025 marked a pivotal juncture for concluding the 14thFive-Year Plan and laying the groundwork for the 15th Five-YearPlan. By focusing on green and low-carbon development,technological innovation, and responsible governance as our keydrivers, we made a breakthrough against headwinds andmaintained steady progress. Through concrete actions, we haveembodied the true essence of sustainable development andcontinued to drive high-quality corporate growth.Pressing ahead under pressure and delivering a new chapterin transformation and development.Amid the profound adjustmentperiod following the concentrated release of production capacity inthe polyester bottle chip industry, the Company sought opportunitiesin the face of challenges and opened new horizons amidchanging circumstances. In the third quarter, it successfullyreturned to profitability on a single-quarter basis, while for thefull year, net profit attributable to shareholders of the parentcompany recorded a substantial year-on-year reduction inlosses. Operating quality improved steadily, and solid businessperformance provided strong evidence of the effectiveness ofthe Company’s strategic transformation.Forging the soul through Party building and inspiring astronger commitment to action and responsibility.Weremained committed to the deep integration of Party leadershipwith corporate governance, giving full play to the role of Partyorganizations and Party members, and embedding Partybuilding throughout all aspects of the Company’s development.Through a series of Party building themed initiatives such as“Strengthening Reform and Advancing Toward Targets,” weinspired employees’ spirit of perseverance and fostered a practical,responsible working style. Leveraging initiatives such as “Discus-sions on the Development of Chemical Materials” and “I DoPractical Things for the People,” we encouraged employees tovoice their views openly, responded effectively to their reasonableconcerns, and brought together a powerful synergy of sharedpurpose, commitment, and accountability.Empowering development through talent and gathering newmomentum for co-creation and shared success.We havealways regarded talent as the foremost resource for corporatedevelopment, and coordinated efforts to strengthen leadershipteams at all levels and build a strong backbone of professionalpersonnel. We continued to improve talent development andpromotion pathways, refined the cultivation system for skilledtalent pipelines, and further optimized incentive and restraintmechanisms. We also focused on deepening collaborationamong industry, academia, research, and application, workingwith universities and research institutes to enhance collaborativeinnovation and joint talent development, thereby creating acooperative ecosystem built on complementary strengths. In addition,we carried out targeted initiatives such as consumption-basedassistance for rural revitalization and industrial supportprograms, giving back to society and fulfilling our responsibilitiesthrough concrete actions.Breaking new ground through reform and unleashing freshvitality for innovation-driven development.Guided by the

principle of “dual cores and one driving force,” we advancedthe implementation of the “Six Refinements strategy” , continuouslystrengthening the Company’s core advantages in cost control,product innovation, and customer service. We furtherimproved and optimized our innovation system, reinforced thealignment between R&D and the market, and enhanced theefficiency of innovation commercialization. We also steadilyadvanced the deepening reform and enhancement initiativeas well as the benchmarking initiative against world-classmanagement practices. By leveraging the demonstrativeeffect of the “Double Hundred Action”, we continuouslyimproved our governance structure, talent mechanisms, andincentive approaches, thereby fully unleashing organizationalvitality and creative potential.Achieving product breakthroughs and shaping new advantagesfor industrial upgrading.We remained committed to usingproduct breakthroughs to lead a new journey of sustainabledevelopment. In the field of rPET, we successfully developed aseries of products containing 25% ~ 50% recycled bottle flakes,becoming the first enterprise in China to achieve large-scaleproduction of chemical “bottle-to-bottle” recycling technology.Our PETG products continued to consolidate their leadingposition in the domestic cosmetics packaging market, whileactively expanding into emerging sectors such as 3D printing.Cooperation with key customers continued to deepen, marketshare increased steadily, and the product structure was furtherinnovated and optimized.Laying a green foundation and painting a new picture ofecological harmony.Closely aligned with the national dualcarbon goals, we fully implemented our carbon peaking actionplan and carbon emissions management requirements, andfurther advanced the “Eight Actions for Carbon Peaking.” Weactively introduced new energy-saving and carbon-reductiontechnologies, equipment, and processes, driving the continuousdecline of energy consumption and carbon emissions. We alsodeepened the development of our environmental managementsystem, thoroughly implemented the philosophy of greendevelopment, and integrated ecological and environmentalprotection requirements throughout all areas and processes ofproduction and operation. At the same time, we continued toadvance green manufacturing. The Changzhou Base was recognizedas a “Jiangsu Provincial Green Factory,” and the Zhuhai Baseinitiated its application for designation as a municipal-levelgreen factory.Looking ahead to the 15th Five-Year Plan period, we willremain focused on the goal of becoming an enterprise special-izing in internationally competitive new chemical materials,and committed to pursuing higher-end, smarter, and moreeco-friendly development. We will lead industrial upgradingthrough technological innovation, reshape our competitiveadvantages through green and low-carbon development,demonstrate greater achievements in fostering a newdevelopment paradigm, and take more solid and forceful stepson the new journey of serving national strategies and empow-ering industrial upgrading.

Message from the Chairman

｜ Message from the Chairman ｜｜ Message from the Chairman ｜

ChairmanYan Xianjun

China Resources ChemicalInnovative Materials Co., Ltd.

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Corporate Values

IntegrityPerformance-drivenPeo-ple-oriented Win-win cooperation

Corporate Vision

To become a chemical new materi-als enterprise that is trusted bycustomers, innovation-leading, andinternationally competitive

Corporate OrganizationalClimateSincerity Unity Openness ProgressivenessCorporate Mission

Creating Better Lives throughChemical Materials

China Resources Chemical Innovative Materials Co., Ltd.

｜ About China Resources Chemical Innovative Materials ｜｜ About China Resources Chemical Innovative Materials ｜

About China Resources ChemicalInnovative Materials

Company Profile

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China Resources Chemical Innovative Materials Co., Ltd. is a first-level business unit within the technology andemerging industries segment of China Resources Group and serves as the Group’s core platform for the develop-ment of its new materials business. The Company is principally engaged in the research and development,production, and sales of bottle-grade PET chips and organic polymer new materials. It operates production basesin Changzhou and Zhuhai, with an annual production capacity of

2.1 million tonnes of PET and 50,000

tonnes of PETG. The Company has received numerous honors, including “the Second Prize of the National Awardfor Scientific and Technological Progress”, the title of “National Civilized Unit”, and “the Second Prize for NationalEnterprise Management Modernization Innovation Achievements”.The Company’s products are marketed worldwide and are widely used in beverages, edible oil, alcoholic beveragepackaging, medical blood collection tubes, films, and sheets. It serves many well-known domestic and internation-al customers, including Coca-Cola, Evian, Nongfu Spring, Wahaha, C’estbon, Dingjin, and Wuliangye. Its “Hualei”brand bottle-grade PET chips are widely recognized in the industry as a reputable food-grade polyester chipbrand. By leveraging technological innovation to advance the circular economy, the Company has achievedproduction of recyclable PET bottle flakes at a relatively high recycled content ratio and has obtained Coca-Cola’sglobal green and low-carbon certification, becoming the first enterprise in China to realize “bottle-to-bottle”technology.Upholding the value philosophy of “Harnessing the Power of Technology to Shape a Better Life,” the Companyremains committed to its “2+N” strategy, continuously strengthening its core functions and core competitiveness,actively fostering new quality productive forces, and striving to build strategic capabilities of national significance.With a firm commitment to better serving everyday life, the Company is dedicated to becoming an internationallycompetitive chemical new materials enterprise in the polymer sector that is technologically advanced and trustedby customers.

Office

HR & Party Affairs Department

Strategic Development Department

Technology Center

Operation Management Department

Procurement Management Department

Marketing Management Department

Engineering and Equipment DepartmentEnvironment, Health, and Safety Department

Finance Department

Intelligence and Digitalization Department

Legal Compliance and Audit DepartmentDiscipline Inspection Commission Office

Polyester BusinessChangzhou BaseZhuhai BaseZhuHai Factory

PETG Business

｜ Our Sustainability Journey ｜｜ Our Sustainability Journey ｜

Our SustainabilityJourney

Strengthening Sustainability Governance

Enhancing Sustainability Capabilities

Materiality AnalysisStakeholder Communication

Strengthening Sustainability Governance

Governance Strategy

Organizational Structure

Enhancing Sustainability Capabilities

Authoritative Recognition

Training and Capacity Building

The Company regards the development of its sustainability capabilities as a key priority. Closely aligned with regula-tory requirements, mainstream disclosure guidelines, and industry standards, and drawing on advanced practicesfrom industry peers, the Company regularly publishes its annual sustainability report, actively improves relevantinternal mechanisms, and delivers ESG-focused training to enhance ESG ratings, so as to continuously strengthenthe awareness of and capacity for sustainable development.

On February 28, 2025, the Company organized a trainingsession on dual-carbon policies and carbon verification,inviting external experts from IPE to provide in-depthexplanations on key topics including climate policytrends, carbon emissions accounting, emissions reduc-tion target setting, and information disclosure.

The Company has formulated such policies as theMeasures for the Administration of External Dona-tions, the Measures for the Administration of SocialResponsibility Projects, and the Working Rules of theBoard Strategy and Sustainability Committee, incor-porating ESG-related matters into its existingmanagement system to promote the active fulfillmentof social responsibilities, standardize the sustainabilityprocess, and comprehensively enhance its capabilityto practice sustainable development.During the reporting period, the Company revisedthe Working Rules of the Board Strategy andSustainability Committee, further strengthening theoverall guidance of its long-term developmentstrategy and ESG work, improving the effectivenessof sustainability governance, and supporting theCompany in identifying operational risks andadvancing high-quality development.

Board of Directors

Makes decisions on the Company’s ESG developmentstrategy, direction, and major matters

Strategy and Sustainability Committee

Studies and makes recommendations on the Company’slong-term development strategy, major investmentdecisions, and sustainability-related matters; reviews theCompany’s sustainability-related reports; identifies risksin the Company’s operations and proposes improvementrecommendations

Office, functional departments,and business departments

As the lead department for ESG-related work, the Officeintegrates the Company’s ESG strategy into its operationand management and coordinates the implementation ofvarious ESG initiatives; functional departments andbusiness departments, in accordance with their ESGresponsibilities, coordinate the collection, review, andsubmission of data on major topics within their respec-tive areas of responsibility

In August 2025, according to the Wind ESG Ratings, theCompany’s rating was upgraded from A to AA, rankingfourth in the basic chemicals industry.

In September 2025, the Company received a Five-Star ExcellenceRating and was included in two authoritative lists: the Top100 ESG-listed Companies in the Yangtze River Delta andthe Top 100 ESG-listed Central SOE Pioneers in China.

In November 2025, the Company was selected for theTop 100 of the Third “ESG Golden Bull Awards”organized by China Securities Journal.

In December 2025, the Company was honored with the2025 ESG Whale Bull Award – ESG Pioneer Enterprise.

SustainabilityGovernance

Green andLow-CarbonEnvironmentalStewardshipSustainableProductInnovation

EmployeeWell-being andDevelopment

Digital and IntelligentEmpowerment of the

Industrial Chain

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makingLevelManagementLevel

ExecutionLevel

Five Strategic Themesof the SustainabilityStrategy Framework

Training on Dual-Carbon Policies and Carbon Verification

“Five-Star Excellence Rating”

｜ Our Sustainability Journey ｜｜ Our Sustainability Journey ｜

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The Company adheres to the Social Responsibility 14th Five Year Plan of China Resources Group, aiming to becomea reliable, capable, and responsible enterprise. We integrate sustainability into our strategic planning, enhance oursustainability strategy framework, and define five key strategic themes. Meanwhile, we are committed to embeddingthe sustainability concept throughout our operation and growth processes.

Wind ESG Rating: AA

“Top 100 in the ESG Golden Bull Awards”“ESG Whale Bull Award – ESG Pioneer Enterprise”

Identifying Issues by Benchmarking Standards

Materiality AnalysisThe Company conducted a comprehensive assessment of macro policy directions and industry development trends, takinginto account its own strategic planning and the core concerns of stakeholders, benchmarking against domestic andinternational ESG standards, and engaging external experts to identify, assess, and report on material topics.

The Company attaches great importance to communication and interaction with its stakeholders, and has establishedlong-term, stable, well-regulated, and orderly channels for communication and oversight. It actively promotes its sustain-ability philosophy and communicates the achievements of its social responsibility initiatives.

With reference to domestic and international standards, including the GRI Standards, the General Framework of Guidelineson Corporate Sustainability Reporting for Chinese Enterprises (CASS-ESG 6.0), the Guidelines No.2 for Self-regulation ofListed Companies—Normative Operations on the ChiNext Listed Companies and the Guidelines No.17 for Self-regulation ofListed Companies—Sustainability Reports (Trial) and in close alignment with macro policy directions and industry trendssuch as China’s dual-carbon strategy and the cultivation of new quality productive forces, the Company identified materialtopics that have significant impacts on both its own development and its stakeholders, based on the actual circumstancesof its business in the R&D, production, and sales of polyester materials and new materials.

Stakeholder Communication

Social

Environment

Governance

MaterialityMatrix

1. Climate Change Response

2. Pollutant Emissions and Waste Management

3. Energy Management

4. R&D and Innovation in Green and Low-Carbon Products

5. Environmental Compliance Management

6. Ecosystem and Biodiversity Protection

7. Resource Utilization and Circular Economy

8. Supporting Rural Revitalization

9. Chemical Safety

10. Employee Rights and Benefits

11. Occupational Health and Safety

12. Employee Development and Training

13. Sustainable Supply Chain Management

14. Product and Service Safety and Governance

15. Customer Service and Satisfaction

16. Data Security and Privacy Protection

17. Technological Innovation

18. Social Contribution

19. Upholding the Leadership of Party Building

20.Stakeholder Communication

21. Risk and Compliance Management

22. Optimizing Corporate Governance

23. Deepening SOE Reform

24. Anti-unfair Competition

25. Anti-commercial Bribery and Anti-corruption

Impact on China Resources Chemical Innovative Materials’ Financial Performance

EnvironmentSocial

Governance

Technological InnovationChemical SafetyResource Utilization and Circular EconomyAnti-Bribery and Anti-CorruptionEnergy ManagementOccupational Health and SafetyUpholding Party Building LeadershipSustainable Supply Chain ManagementEmployee Development and Training

Environmental Compliance Management

Anti-Unfair CompetitionData Security and Customer Privacy Protection

Optimizing Corporate Governance

Customer Service and SatisfactionClimate Change Response

Product and Service Safety and Quality

Employee Rights and BenefitsDeepening State-Owned Enterprise Reform

Stakeholder CommunicationSocial ContributionEcosystem and Biodiversity ProtectionSupporting Rural Revitalization

Pollutant Emissions and Waste Management

Risk and Compliance Management

Research, Development and Innovationof Green and Low-Carbon Products

Communication and Response Mechanisms

Governmentand RegulatoryAuthoritiesShareholdersand InvestorsEmployeesCustomersSuppliers andBusinessPartnersEnvironmentCommunitiesand the Public

Expectations and ConcernsStakeholders

Assessing stakeholder interests and expectations

In strict adherence to the principle of double materiality, the Company conducted stakeholder surveys and interviews fromtwo dimensions: the financial materiality of topics to the Company, and their impact materiality on the economy, society,and the environment. The survey covered key stakeholder groups, including shareholders and investors, customers,employees, suppliers and business partners, regulatory authorities, and communities, with a view to gathering stakeholderexpectations and continuously updating and refining the list of material topics.

Assessing, Prioritizing, and Determining Key Topics

Using a combination of quantitative questionnaire analysis and qualitative assessment, the Company carried out materialityevaluations of various topics. Based on the strategic judgment of internal management and the professional opinions ofexternal experts, the Company determined the priority of each topic, developed a materiality matrix, and focused in thisreport on responding to the core issues of greatest concern to stakeholders.Materiality Matrix

Impact on the Environment, Society and Corporate Governance

｜ Our Sustainability Journey ｜｜ Our Sustainability Journey ｜

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Compliance with laws and regulationsTax payment in accordance with the lawSupport for local developmentCommitment to environmental protection

Compliance with laws and regulationsProactive tax paymentInformation reportingAcceptance of supervision and inspectionInvestment returnsImproved information disclosureEnhanced profitabilityStronger core competitiveness

Strengthening internal control systemsRegular report disclosureInvestor research and communicationPerformance briefingsCompensation and benefitsCareer development opportunitiesRights and interests protectionHealth and safety

Employee forumsCareer development and trainingRights protection mechanismsWorkplace safety management

Honoring contractsMaintaining good faithEqual cooperationMutual benefit

Performance of contracts in accordance with the lawPublic disclosure of tender informationSupplier communication and cooperationStrategic partnershipsEnergy conservation and emissions reductionEcological protectionRational resource utilization

Development of environmentally friendly productsConstruction of green factoriesIncreased environmental investmentPromotion of green development conceptsSupport for social developmentParticipation in public welfare initiatives

Promotion of local employmentVolunteer service activitiesIndustrial assistance

High-quality productsExcellent services

Customer visits and exchangesSatisfaction surveysContinuous improvement of productService quality

Green CycleInfinite Innovation

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｜ Green Cycle, Infinite Innovation ｜｜ Green Cycle, Infinite Innovation ｜

China Resources Chemical Materials has consistently regarded theefficient use of resources and the development of a circular economyas core strategic priorities, while fostering new quality productive forcesthrough technological innovation.In 2024, the Company achieved an industrialization breakthrough in itschemical “bottle-to-bottle” rPET technology, becoming the firstenterprise in China to establish a chemical recycling process from “usedbottles to new bottles.” In 2025, the Company completed a strategicleap from a “technology breakthrough pioneer” to a “definer of circulareconomy standards.”

Breaking Through via Circularity:

Navigating Industry Cycles with ResilienceSynergizing Digital & Green Transitions:

Leading Industry Upgrades through Benchmarking

Crude Oil Refining

Chemical DepolymerizationrPET ResinrPET Bottles

PET ResinPET Products

Post-Consumer PET CollectionWashing & CrushingRecycled PET Flakes

Breaking Through via Circularity:

Navigating Industry Cycles withResilience

CR CHem Chemical Recycling

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｜ Green Cycle, Infinite Innovation ｜｜ Green Cycle, Infinite Innovation ｜

Breakthroughs in rPET TechnologyAgainst the backdrop of plastic recycling and regeneration becoming a key issue inpromoting a green recovery of the economy, the Company has driven the transfor-mation and upgrading of the circular economy through technological innovation,achieving a leap in its semi-chemical “bottle-to-bottle” rPET technology from indus-trialization breakthrough to standards leadership.

Breakthroughs in Industrialization and CertificationSince 2017, the Company has been deeply engaged in the R&D of food-graderecycled rPET polyester products, and has gradually developed chemical recy-cling bottle-to-bottle rPET technologies with recycled PET content levels of 10%,25%, and 35%–50%, respectively. In 2024, the Company achieved mass produc-tion of 25% rPET and exported it to countries participating in the Belt and RoadInitiative, becoming the first domestic enterprise to obtain Coca-Cola certifica-tion for a chemical recycling route for food-grade rPET polyester, reaching aleading level in China and an advanced level internationally.During the reporting period, the Company’s sales volume of 25% rPETfood-grade recycled polyester reached from 16,000 to34,000 tonnes,

representing a year-on-year increase of113%.

Over the course of the year, approximately8,600 tonnes of recycled waste

PET flakes were used, equivalent to the recycling and reuse of about

million discarded plastic bottles, reducing carbon emissions by approximately

25,000 tonnes.

Commercial Distribution & Consumption

Standards Leadership andIndustry Advancement

The Company has actively participated in theformulation and revision of national and indus-try standards, contributing to the high-qualitydevelopment of the industry. During thereporting period, the China Chemical FibersAssociation released the Association Standardfor Recycled Polyethylene Terephthalate (rPET)Resin for Bottles, which was led and developedby the Company.

Energy-savingPerformance

Annual net power generation of 3,102.4 MWh

Annual net power generation of

1,943.0 MWh

Annual net power generation of

177.1 MWh

Expanding PETG Application ScenariosThe Company achieved a technological breakthrough, successfully developing a preparation technology for environ-mentally friendly copolyester materials, thereby filling the domestic gap in this area. Positioning its products in thedaily chemical packaging materials market, the Company successfully secured international brand customers andhas become a key supplier of domestic copolyester materials for the daily chemical packaging sector.During the reporting period, the Company actively expanded into emerging application fields such as 3D printing,medical care, home appliances, and films. Among them, sales in the 3D printing application area grew by 270%year-on-year. By developing tailored products for these applications, the Company enhanced product-processcompatibility and customer service, further increasing its market share.

The Changzhou Base constructed a distributed photovoltaicpower station by utilizing the rooftops of buildings within theplant area, covering approximately 79,800 square meters, with aninstalled capacity of 10.75 MW. The project passed acceptance inMarch 2025. After being put into operation, it is expected togenerate approximately 10.5 million kWh of electricity annually,save about 3,045 tonnes of standard coal per year, and reducecarbon dioxide emissions by approximately 7,490 tonnes annually.As of the end of the reporting period, the project had generateda cumulative net output of

11.5216 million kWh, equivalent

to1,416 tonnes of standard coal.

Deepening Green Manufacturing

The Company steadily advanced the Eight Actions for Carbon Peaking, while promoting new technologies, equip-ment, and processes for energy conservation and carbon reduction. Energy-saving transformation projects, includingnatural gas differential pressure power generation, power generation from surplus esterification steam, and distrib-uted photovoltaic systems, were implemented in a steady and orderly manner.

Refining Best Practices

The Company has systematically distilled its integrated practical experience in “5G + Industrial Internet + green andlow-carbon development + ESG governance” into a replicable and scalable methodology for industry transformation.From Changzhou to Zhuhai, the China Resources model is being replicated; from “green factory” to “green brand,”the Company’s influence continues to expand.The Company has consistently aligned itself with regionaldevelopment and, by practicing ESG principles to highstandards, has continued to deepen its efforts in greenproduction, social responsibility, and sound governance. Indoing so, it has injected strong momentum into its ownhigh-quality development and demonstrated the proactivecommitment of a central state-owned enterprise.

Establishing a 5G Smart FactoryThe Company launched the development of a “5G + IndustrialInternet” initiative, taking the lead at its Changzhou Base in

exploring the integrated application of 5G technology in produc-tion and operations.In September 2025, the Changzhou Base was included in the 2025National 5G Factory Directory issued by the Ministry of Industry andInformation Technology, becoming a benchmark for digital transfor-mation in the chemical industry. In partnership with China Mobile,the factory achieved full 5G network coverage across the entireplant area, with an overall coverage rate of

99.96%.

Deepening New Materials R&D

Focusing on core directions in the field of new materials, the Company continued to make sustained efforts in keytechnologies such as high-temperature-resistant copolyesters, recycled polyester, titanium-based catalysts, differen-tiated nylon, and high-barrier materials. Multiple R&D achievements were successfully industrialized, and annualsales revenue from differentiated polyester products exceeded RMB80 million.Expanding Differentiated Nylon Products.The Company, together with China Resources Double-Crane Pharma-

ceutical Co., Ltd., launched the Collaborative Innovation Project for the Bio-based Pentamethylenediamine–Nylon 46Industrial Chain. Using bio-based 1,4-butanediamine, independently developed by the China ResourcesDouble-Crane Synthetic Biology Research Institute, as a key raw material, the project has been included in the firstbatch of landmark biomanufacturing products released by the Ministry of Industry and Information Technology ofChina, and is dedicated to advancing the industrialization of high-performance Nylon 46.

Synergizing Digital & Green Transitions:

Leading Industry Upgrades through Benchmarking

Waste HeatPowerGenerationProject

Natural GasDifferential Pressure

Power Generation

Project

PhotovoltaicPowerGeneration

Project

｜ Green Cycle, Infinite Innovation ｜｜ Green Cycle, Infinite Innovation ｜

The ecological environment is an important cornerstone of corporatesustainable development. China Resources Chemical Innovative Materialsintegrates environmental responsibility throughout the entire processof its operations and development, adheres to the philosophy ofgreen and low-carbon development, and proactively fulfills its missionof ecological protection and environmental governance. Focusing onkey areas such as energy conservation and emissions reduction,efficient resource utilization, and pollution prevention and control, theCompany adopts pragmatic measures to reduce its environmentalimpact, safeguards the ecological environment through responsibleenvironmental practices, and steadily advances green, high-qualitydevelopment.

Both the completion rate for comprehensive energy consumption perRMB 10,000 of output value and the completion rate for carbon dioxideemissions per RMB 10,000 of output value exceeded target levels.Total greenhouse gas emissions (Scope 1 + Scope 2 + Scope 3):

3,816,581.54 tonnes of CO? equivalent.

Investment in energy conservation and environmental protectionreached RMB 9.9 million.Comprehensive waste utilization rate: 95.88%.

UN SDGs

Key Indicators

Pursuing GreenDevelopment for a SharedEcological Future

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｜ Pursuing Green Development for a Shared Ecological Future ｜｜ Pursuing Green Development for a Shared Ecological Future ｜

Adhering to the principle of conservation first and carbon reduction at sourceprioritize energy conservation, optimize the energy structure, steadily reduce carbonemissions through cleaner production, and earnestly fulfill social responsibilities.

Adhering to technology leadership and a goal-oriented approachstrengthen technological innovation, promote green technologies featuring low-carbon,zero-carbon, and negative-carbon characteristics, advance the transformation of highenergy-consuming businesses, and define development tasks with clear objectives.

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By 2025, the Company aims to make positive progressin the R&D, promotion, and application of green andlow-carbon technologies, reduce comprehensiveenergy consumption per RMB 10,000 of output value by10% compared with 2020, and reduce carbon dioxideemissions per RMB 10,000 of output value by 5%compared with 2020.

By 2030, the Company aims to achieve significantresults in its comprehensive green and low-carbontransformation, bring the energy efficiency of its PETbusiness close to the advanced level of world-classenterprises, and reach its peak carbon emissions by2028.

Actively responding to the national dual-carbon strategy and the requirements for green development, the Company hasfocused on addressing key pain points in the polyester industry, including resource waste and low recycling rates, and hasestablished a long-term mechanism for green and high-quality development. The Company successfully overcame keytechnical bottlenecks in chemical recycling-based food-grade rPET polyester, developed its proprietary chemical recyclingprocess, took the lead in achieving industrialization, and expanded into overseas markets, with product sales continuing torise. During the reporting period, the project had recycled and reused 12,003 tonnes of recovered PET flakes, enabling thehigh-value reuse of approximately 670 million waste plastic bottles and reducing carbon emissions by 35,962 tonnes.

Dual-CarbonTargets

“

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“

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Innovation Empowering Carbon Reduction

Adhering to coordinated planning and synergistic development

enhance overall coordination, improve supporting mechanisms, integrate green andlow-carbon development throughout all aspects of operations, and improve botheconomic and social benefits.

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Eight Priority TasksAddressing the Challenges of Climate ChangeGuided by the “Dual Carbon” StrategyThe Company firmly implements the major national strategic objectives of carbon peaking and carbon neutrality, activelyadvances the coordinated formulation of climate action policies and strategies, has developed the Carbon Peaking Action Plan, andsteadily carries out various carbon reduction initiatives, making every effort to promote green, low-carbon, and high-qualitydevelopment.The Company has always attached great importance to ecological and environmental protection, and conducts regular monitor-ing of key pollutant emissions as well as energy-saving and carbon-reduction efforts. The Company’s two major productionbases in Changzhou and Zhuhai collect monthly data on pollutant emissions, water consumption, electricity consumption, andnatural gas consumption, and compile them into the Summary Statistical Report on Energy Conservation and Emissions Reduc-tion Monitoring. Through detailed analysis of year-on-year and month-on-month changes in the data, and timely investigationof fluctuations exceeding 5%, the Company ensures that energy conservation, carbon reduction, and environmental manage-ment measures are effectively implemented.The Company has also advanced innovative digital applications by establishing an integrated digital EHS management platform.It has identified 15 core control indicators and designed eight major functional modules, covering scenarios such as hazardousoperations and closed-loop rectification of hidden risks. Supported by data visualization and intelligent early-warning functions,the platform enables dynamic analysis of key indicators, full-process monitoring of special operations, and automatic alerts forpermits and licenses, thereby establishing a full-chain EHS management mechanism and comprehensively enhancing manage-ment effectiveness and control efficiency.

The reporting period marked the concluding year of the Company’s first dual-carbon target phase. The Company exceeded itsfirst-stage targets, with the completion rate for comprehensive energy consumption per RMB 10,000 of output value reaching

106.19%, and the completion rate for carbon dioxide emissions per RMB 10,000 of output value reaching 126.3%. Various carbon

reduction, green, and low-carbon development measures were effectively implemented and delivered tangible results.

Improving the Management FrameworkThe Company has established a Leading Group for Carbon Peaking and Carbon Neutrality, and designated the principal personin charge of each subordinate enterprise as the primary person responsible for dual-carbon efforts, while members of themanagement team work in coordination to ensure effective implementation. At the same time, dual-carbon initiatives have beenincorporated into the key agenda of executive education and training, continuously enhancing management’s capability to fulfillits responsibilities in advancing green and low-carbon development and providing a solid organizational foundation for theCompany’s low-carbon transformation.

Basic Principles

Green and Low-Carbon Transformation

Establish a plastics recycling system;develop and promote recycled andlightweight PET products; develop newproducts to reduce energy consumption andcarbon emissions.

Energy and Resource Conservation andCarbon Reduction InitiativeImprove energy conservation management;implement key energy-saving and carbon-reductionprojects; establish an internal resource recyclingand reuse system; and promote the coordinat-ed development of the social green circulareconomy.

Green and Low-Carbon TechnologicalInnovation

Build a green and low-carbon technologyinnovation platform; strengthen innovationcapabilities and talent cultivation in green andlow-carbon development; and advance theapplication of key green and low-carbontechnologies.

Cultivation of Carbon Neutrality-orientedNew Business

Seize development opportunities arising from thenational dual-carbon goals; introduce advanceddomestic and international low-carbon, zero-car-bon, and negative-carbon technologies; createlow-carbon and zero-carbon zones; and participatein the development of demonstration projects forlow-carbon and zero-carbon industrial parks.

Leveraging Green Finance to Support CoreBusiness

Utilize green financial products and services toprovide financial support for the Company’sgreen and low-carbon transformation.

Carbon Emissions Management CapabilityEnhancement

Improve carbon emissions data managementcapabilities; and enhance the professionalcompetence of carbon emissions managementpersonnel.

Company-wide Green and Low-CarbonParticipation

Give full play to the guiding role of green andlow-carbon production and consumption;advocate green and low-carbon working andliving styles; and strengthen publicity andeducation on green and low-carbon develop-ment.

Comprehensive Green and Low-CarbonCooperation

Strengthen cooperation with customers andsuppliers in the R&D and application oflow-carbon technologies.

｜ Pursuing Green Development for a Shared Ecological Future ｜｜ Pursuing Green Development for a Shared Ecological Future ｜

Climate Risk IdentificationIdentifying Risks and Opportunities

The Company closely follows the prevailing trend of low-carbon development, optimizes the layout of its green business portfolio,and proactively identifies climate change-related risks and opportunities.Climate RiskType

RiskCategory

Risk Description

TimeHorizon

FinancialImpact

Measures

PhysicalRisks

TransitionRisks

Acute

Policy andLegal Risks

ChronicShort-term

IncreasedOperatingCostsRisks such as rising tempera-tures may lead to increasedenergy consumption, highercooling-related energy use andequipment wear, and may alsoaffect employee safety at work.

In response to the hot and humidclimate conditions in South China, theCompany has replaced existing equipmentwith energy-efficient cooling systems toreduce energy consumption;Adjusted employees’ working hours toprevent heat-related incidents;And established a monitoring andintelligent early-warning mechanism forfacility operating conditions throughdigital technologies, thereby optimizingthe efficiency of operations and mainte-nance management.

Short-term

IncreasedOperatingCosts

Risks such as typhoons maycause damage to buildings andequipment, result in casualtiesand major property losses, leadto production disruptions, andgenerate costs associated withidle equipment, delayed orderdelivery, and contractual compen-sation, thereby affecting theCompany’s market reputation andweakening its competitiveness.

In view of the high incidence of typhoonsin coastal areas, the Company hasestablished dedicated emergency responseplans, regularly conducted typhoon andflood prevention drills, relocatedresources to safe areas, and promptlyevacuated personnel to safeguardoperational continuity;It has also optimized drainage systemsin advance and reinforced protectivefacilities and equipment.

Short-term

IncreasedOperatingCosts

Unstable raw material supply mayaffect the Company’s normalproduction planning, potentiallyresulting in production disruptionsor reduced output and increasingproduction costs, as the Companymay need to procure raw materialsat higher prices or seek alterna-tive suppliers, which may in turnaffect product quality and stability;Delays in fulfilling customer ordersmay also damage the Company’sreputation and could lead tocustomer loss.

Establish stable transportation channelsfor bulk raw materials;Strengthen supply chain risk manage-ment and establish a risk early-warn-ing mechanism;And build close cooperative relationshipswith logistics service providers to jointlyrespond to emergencies.Environmental protection require-ments under laws and regulationsare becoming increasingly stringent,making corporate compliancemore challenging.

Long-term

IncreasedManagementCosts

Continuously monitor relevant laws andregulations, make timely adjustments,and carry out rectification of non-compli-ant projects.

Technology

The development of green andlow-carbon technologies may renderexisting technologies obsolete.

Medium-term

Impairmentof FixedAssets

Apply green and low-carbon technologiesand equipment, and upgrade outdatedequipment.

Market

The market increasingly demandsproducts that are green, low-car-bon,andenvironmentally friendly.

Long-term

Decline inRevenue

Develop green products aligned withenvironmental trends through innovationand upgrading.

Reputation

Environmental complianceviola-tions or the absence of greenproducts, coupled with growingsocietal attention to corporateinformation disclosure, mayundermine trust in the Companyif disclosures are incomplete.

Medium-term

IncreasedManagementCosts

Proactively and comprehensively discloserelevant information, and strengthencommunication with stakeholders.

Green ProductMarket

Demand for bio-based materials continues torise, helping the Company expand into newmarkets, increase market share, and growrevenue;The circular economy is also driving thedevelopment of recycled materials, creatingnew profit growth points and enhancingeconomic performance and sustainabilitycapabilities.

Formulate an innovation-driven developmentstrategy, develop bio-based materials anddeepen efforts in recycled materials, optimizeprocesses, expand channels, and comprehen-sively enhance core market competitiveness;Leverage locational advantages to expandPETG applications in emerging fields such asdaily chemical packaging and 3D printing.

Technological

Innovation

By leveraging its industrial strengths, theCompany can deepen the R&D and applica-tion of low-carbon processes, reduce carbonemissions in production, improve energyefficiency, control costs, and strengthencompetitiveness;At the same time, it can expand the boundariesof its new materials business, promote diversi-fied development, and further enhance marketposition and risk resilience.

Formulate a technological innovation strategy,increase investment in low-carbon and energystorage R&D, deepen industry-academia-research collaboration, improve incentivemechanisms, and strengthen sustainableinnovation capabilities;Advance energy-saving and carbon-reductionprojects to continuously reduce productionenergy consumption.

PolicySupport

Supportive policies for green industries canreduce the cost of green transformation andaccelerate the pace of transition;Opportunities arising from participation inthe carbon market can increase the value ofcarbon assets and encourage greater emissionsreduction efforts;Policy guidance can also optimize the competi-tive landscape of the industry, helping improvecost efficiency and sustainable competitive-ness.

Incorporate energy conservation, green andlow-carbon development, and carbon peakingand carbon neutrality efforts into the 15thFive-Year strategic plan, and formulate andimplement a task list for green development;improve management systems for energyconservation, carbon reduction, and ecologicaland environmental protection, and strictlyimplement special inspection and rectificationplans;Establish a policy research team to keepabreast of policy developments and activelyapply for fiscal subsidies, tax incentives, andspecial R&D funding; Strengthen carbon assetmanagement, establish a carbon emissionsmonitoring and management system, optimizethe carbon emissions structure, and activelyparticipate in carbon market trading.

Cooperation

andDevelopment

Deepening industry-academia-research collabo-ration can enhance the Company’s techno-logical innovation capabilities and promotegreen development through external researchresources;Green supply chain cooperation can improvethe resilience and green competitiveness ofthe entire supply chain;Collaboration across the industrial chain andlinkage with global customers can acceleratetechnological breakthroughs and globalexpansion.

Deepen industrial chain collaboration andindustry-academia-research cooperation, expandhigh-quality domestic and overseas partner-ships, and focus on the development ofhigh-end and green materials;Promote the development of a green supplychain, and work with suppliers and customersto formulate green supply chain standards andnorms; Actively participate in industry associationactivities and achieve high-quality developmentthrough open cooperation.

Climate Opportunity Identification

Opportunity TypeOpportunity DescriptionResponse Measures

｜ Pursuing Green Development for a Shared Ecological Future ｜｜ Pursuing Green Development for a Shared Ecological Future ｜

Greenhouse Gas ManagementThe Company has actively carried out greenhouse gas emissions management. With the support of tools such asthe Carbon Explorer Platform, it records and verifies its greenhouse gas emissions, strictly controls both the totalvolume and intensity of greenhouse gas emissions, and has established a standardized and normalized mechanismfor greenhouse gas accounting and disclosure. In accordance with the requirements of ISO 14064, the Companyvoluntarily conducts an annual carbon inventory and prepares a carbon inventory report to ensure the accuracy andreliability of carbon emissions data, while providing assistance and guidance to various departments in carrying outcarbon reduction and greenhouse gas inventory work.During the reporting period, the Company completed its greenhouse gas emissions accounting and disclosed therelevant data on the Institute of Public &Environmental Affairs (IPE) platform, thereby ensuring transparency andopenness and demonstrating the Company’s commitment and actions.

The Company consistently adheres to green and low-carbon development, and regards energy management andrational planning as important components of sustainable development. To this end, it has formulated the Measuresfor the Supervision and Administration of Energy Conservation and Carbon Emissions. In daily operations, the Com-pany places emphasis on energy conservation and the scientific use of energy, and effectively reduces energyconsumption through measures such as optimizing energy utilization methods, advancing energy-saving retrofits,and improving energy efficiency.

On February 6, 2025, the Company organized a trainingsession on EHS quantification and the consolidation of datarelated to energy conservation, environmental protection,and carbon reduction. Relevant persons in charge from theEHS Department, designated coordinators for quantitativerating across business units, and personnel from thecarbon management function line participated in thetraining both on-site and online.

Training on EHS Quantification and Energy Conservation,Environmental Protection, and Carbon Reduction Data

Carbon Management Dashboard

Statistics on Greenhouse Gas Emissions for the Past Three Years

Note 1: Scope 1 greenhouse gas emissions mainly include greenhouse gas emissions from the Company’s consumption of natural gas,gasoline for vehicles, diesel for forklifts, refrigerants, septic tanks, and production processes.Note 2: Scope 2 greenhouse gas emissions mainly refer to greenhouse gas emissions resulting from the Company’s purchased electricity.Note 3: Scope 3 greenhouse gas emissions mainly include greenhouse gas emissions arising from purchased goods and services,energy-related activities not included in Scope 1 and Scope 2, upstream transportation, waste treatment, employee commuting, anddownstream transportation.Note 4: In order to improve the accuracy and completeness of greenhouse gas emissions data, the Company updated the emissionaccounting parameters and accounting boundaries for certain Scope 3 categories. Therefore, the data for the year of 2025 are not fullycomparable with those of 2024.

Year

Scope 1 GreenhouseGas Emissions (tonnes)

Scope 2 GreenhouseGas Emissions (tonnes)

Scope 3 GreenhouseGas Emissions (tonnes)

328,982.45311,728.67286,275.04

128,889.96121,059.1898,329.60

671,341.28764,092.773,431,976.90202320242025

Carbon Footprint Certificate for Polyester Chips Products

Advancing Circular Resource Utilization

Managing Energy and Resources

Energy Use Requirements

New Energy Development and Utilization

Strengthen full-process energy management, adhering to principles of rational energy utilization and conser-vation priority.Formulate and implement energy-saving work plans and technical measures.Strictly control energy consumption and losses, and eliminate wasteful practices.Continuously optimize the industrial structure, product mix, and energy consumption structure.Steadily reduce energy consumption per unit of output value and per unit of product, and resolutely phaseout outdated production capacity.

All business units shall actively promote the development and utilization of renewable energy and non-fos-sil energy, steadily increase the share of electricity consumption from new energy sources, accelerate theestablishment of a clean, low-carbon, safe, and efficient energy system, and continuously advance thetransformation of the energy structure toward greater cleanliness and lower carbon intensity.

｜ Pursuing Green Development for a Shared Ecological Future ｜｜ Pursuing Green Development for a Shared Ecological Future ｜

The Company has formulated annual assessment targets for energy conservation and ecological and environmental protec-tion, and has incorporated such assessments into its daily management practices in order to enhance its overall environmentalmanagement capabilities.

During the reporting period, the Company participated in the formulation of the national standard Norm of Energy Consump-tion per Unit Product of Chemical Fiber (GB/T 36889-2025), promoting improvements in industry energy efficiency andlow-carbon transformation at the level of technical standards.

29 CR CHEM-MAT｜2025 Sustainability ReportCR CHEM-MAT｜2025 Sustainability Report 30

Energy Consumption Analysis

Enterprises at all levels shall establish and improve mechanisms for energy consumption statistics and analysis of energyutilization, regularly conduct energy use monitoring and analytical assessments, promptly investigate the causes of abnormalenergy consumption, implement corrective measures, and continuously enhance the level of refined energy management.

Indicator TypeIndicatorUnit2025 Target Requirement2025 Completion Rate

EnergyConsumptionIndicators

EmissionsIndicators

Comprehensive energy consump-tion per RMB 10,000 of outputvalue (comparable price basis)Comprehensive energy consump-tion per RMB 10,000 of valueadded (comparable price basis)Comprehensive energy consump-tion per tonne of chemical product

Nitrogen oxides (NOx) emissionsCarbon dioxide emissions intensity(comparable price basis)

tonnestonnes of CO?/ RMB 10,000

tonnes of standard coal/ RMB 10,000tonnes of standard coal/ RMB 10,000tonnes of standard coal/ tonne

Decrease by no less than 10%Decrease by no less than 8%Decrease by no less than 5%Decrease by no less than 50%Decrease by no less than 5%

106.75%

126.30%

106.19%

-94.25%

103.61%

Energy Management System Certification

Certificate of Zhuhai Base

Energy Management System Certification

Certificate of Changzhou Base

Participated in the formulation of the nationalstandard Norm of Energy Consumption per UnitProduct of Chemical Fiber (GB/T 36889-2025)

Protecting Water Resources

The Company attaches great importance to the conservation and protection of water resources, and regards waterresource management as an important component of green development. Adhering to the principles of water conservationfirst and efficient utilization, the Company strengthens full-process control over water use, promotes water-savingmeasures, and improves water use efficiency, thereby protecting water resources through practical actions and fulfilling itsresponsibility for green and sustainable development.During the reporting period, the Company’s freshwater consumption totaled

1.2805 million tonnes, with water

consumption intensity of

0.98 tonnes per RMB 10,000 of output value.

｜ Pursuing Green Development for a Shared Ecological Future ｜｜ Pursuing Green Development for a Shared Ecological Future ｜

Conserving Energy and Resources

The Company continues to advance efforts in energy and resource conservation, constantly optimizing its energy structure,implementing energy-saving management and benchmarking requirements, accelerating the retrofitting of energy-efficientequipment and process optimization, and phasing out outdated production capacity. At the same time, it strengthens therefined management of energy and resources, promotes water conservation, material saving, and resource recycling andreuse, improves utilization efficiency, and is committed to building a resource-efficient and environmentally friendly enterprise.

Developing Circular EconomyThe Company adheres to the principles of reduction, reuse, and resource recovery in developing the circular economy, andfocuses on advancing waste recycling, energy reuse, and resource circular utilization throughout the entire production andoperational process.

Energy Conservation, Consumption Reduction, Efficiency Enhancement, and Intensive Resource Utilization

Cleaner Production and E?cient UtilizationChangzhou BaseBiogas generated by the wastewater treatment station is utilizedat the 600,000-tonne heat transfer medium station. By leveragingthe calorific value of biogas to reduce natural gas consumption,the biogas reuse project entered trial operation on April 29,achieving average daily savings of1,100 cubic meters of

natural gas, annual cost savings of RMB

1.48 million, and an

annual reduction of approximately828 tonnes of carbondioxide emissions.

The Company has incorporated energy conservation, green and low-carbon development, and the dual-carbon goalsinto its 15th Five-Year strategic plan, formulated a task list for green development, and advanced its implementation,while continuously improving the utilization of renewable energy. In parallel, the Company Department has furtherimproved management systems for energy conservation, carbon reduction, and ecological and environmental protection,and organized all units to carry out special inspections and rectification initiatives, thereby systematically enhancing theCompany’s ecological and environmental management capabilities.

Waste Recycling and Reuse at Zhuhai BaseThe Zhuhai Base has actively promoted waste recycling andreuse. For the 600,000-tonne and 500,000-tonne units, itimplemented a discharge waste recycling project, under whichdischarged melt is crushed and then fed back into the slurrytank for recycled slurry preparation. At the same time, whileensuring product quality, the Base has expanded the recyclingof various types of waste, including hot well residues and filterresidues, thereby achieving resource circular utilization. Duringthe reporting period, the two units collectively recycled

149.36 tonnes of waste, reducing carbon dioxide

emissions by approximately

342.28 tonnes.

｜ Pursuing Green Development for a Shared Ecological Future ｜｜ Pursuing Green Development for a Shared Ecological Future ｜

Phase II Waste Heat Power Generation Project at ZhuhaiBase Connected to the GridThe generator unit of the Phase II Waste Heat Power Generation Project atthe Zhuhai Base was successfully connected to the grid on its first attemptand began stable power generation, marking the project’s formal readinessfor operation. The project focuses on the intensive utilization of tail gasfrom the process towers of the Phase III polyester unit. With an installedcapacity of 2 MW, the unit is capable of generating up to 1,550 kWh of netelectricity per hour under rated operating conditions, and its annual netpower generation is expected to reach 12.4 million kWh, equivalent to anannual reduction of1,525 tonnes of standard coal consumption andapproximately7,560 tonnes of carbon dioxide emissions. After being

put into operation, the project will significantly reduce the proportion ofexternally purchased electricity used at the Zhuhai Base, optimize theenergy structure, effectively lower product energy consumption, andcontribute to cost reduction, efficiency improvement, and business growth.

The Company has improved its environmental management system and formulated relevant policies, including theMeasures for the Supervision and Administration of Energy Conservation and Ecological and Environmental Protec-tion. Based on their actual circumstances, subordinate units have further refined supporting management systems,actively pursued environmental management system certification, and effectively strengthened primary responsibilityfor ecological and environmental protection.During the reporting period, the Company’s cumulative investment in energy conservation and environmentalprotection reached RMB

9.9008 million, including RMB 1.0225 million in emissions reduction investment

and RMB

8.8783 million in other environmental protection investment. The Company did not experience any

major environmental incidents, nor was it subject to any administrative penalties by ecological and environmentalauthorities or held criminally liable for environmental incidents.

Strengthening Environmental andEcological Foundation

Enhancing Compliance Management

Environmental Management SystemCertification Certificate of Zhuhai Base

Environmental Management SystemCertification Certificate of Changzhou Base

Protecting Biodiversity

Biodiversity is the foundation for human survival and development, and also a prerequisite for corporate sustainable develop-ment. The Company deeply fulfills its social responsibilities, follows relevant national policies and ecological principles, andintegrates biodiversity protection throughout its strategy, production, and supply chain processes.No.Protection MeasureSpecific Content

Strengthening the strategic foundationand improving institutional safeguards

Incorporate green and low-carbon development into the Company’s strategicplanning, establish and improve management systems for ecological andenvironmental protection, strictly implement national and local environmentallaws and regulations, formulate and implement the Special Inspection andRectification Work Plan for Enhancing Ecological and Environmental Protection,and regularly conduct compliance reviews and internal inspections.

Carry out ecological restoration in light of the ecological characteristics ofoperational areas, optimize green spaces within plant areas, and plant nativespecies; strictly prohibit non-compliant operations and avoid disturbing rarespecies and their habitats.Focusing on ecological restoration andsafeguarding habitat integrity

Promote green and low-carbon operations, ensure that treatment facilities forthe “three wastes” meet discharge standards, and optimize water resourceutilization; standardize raw material procurement and give priority to environ-mentally friendly and sustainable raw materials.Strengthening operational control andreducing ecological impact

Strengthen communication and cooperation with external professional institutions,and advance technological research and practical exploration in relevant fields;extend environmental management requirements throughout the upstream anddownstream industrial chain to promote coordinated green development.Deepening collaborative governance andbuilding a joint protection mechanism

Popularize knowledge of biodiversity protection through various means,including internal training and external public welfare outreach, so as to raiseawareness among employees, partners, and the public.Enhancing public awareness andfostering a shared commitment toprotection

Strengthen the management and disclosure of monitoring data to ensure thatdata are authentic, accurate, and traceable; establish a database to trackbiodiversity changes; and regularly analyze and assess data to optimize protec-tion measures.Establishing a monitoring system andcontinuously improving performance

China Resources Group Professional Qualification Certificate in Ecological and Environmental Protection

Conducting Environmental Protection TrainingPromoting Environmental Protection Concepts. The Company has strengthened the promotion of green and environ-mental protection concepts by organizing employees’ environmental learning through centralized training sessions, presenta-tions at meetings, and other forms of communication. The Company organized 55 employees to participate in the 2025China Resources Group Professional Training and Qualification Certification in Ecological and Environmental Protection. DuringNational Ecology Day, the Company’s various bases jointly carried out14 systematic environmental protection trainingsessions, covering175 participant attendances.

｜ Pursuing Green Development for a Shared Ecological Future ｜｜ Pursuing Green Development for a Shared Ecological Future ｜Organizing a World Water Day Themed Awareness Campaign

During the 33rd World Water Day and the 38th China Water Week, the Company, together with the Changzhou BinjiangEconomic Development Zone Chemical Industry Bureau, Changzhou and Everbright Changgaoxin Environmental Energy(Changzhou), organized a themed awareness campaign entitled “Water Conservation Challenge: Piecing Together a GreenDream.” Going forward, the Company will continue to explore new approaches to water use and water conservation,deepen new mechanisms for technological and management-based water saving, and promote the transformation ofwater-saving efforts from public advocacy to company-wide practice.

Deepening Green Office PracticesThe Company actively promotes the concept ofgreen office practices, advocating for low-carbon,resource-saving, and environmentally efficient officemodels. In daily operations, it strictly implementswater and electricity conservation, promotes apaperless approach, reduces the use of disposableitems, and standardizes waste sorting and recycling.

The Company strictly complies with laws and regulations including the Atmospheric Pollution Prevention and Control Law of thePeople's Republic of Chinaand the Emission Standard of Air Pollutants for Boilers, and has formulated relevant policies such as the Administrative Provisions onWaste Gas Emissions and the Management System for VOCs Pollution Prevention and Control. By carrying out routine leak detectionand repair (LDAR) and continuously optimizing cleaner production processes and technologies, the Company effectively reduces thevolume of atmospheric pollutant emissions and leakages at the source.

Strictly Controlling the Discharge of the ThreeWastes and Reducing Pollution

Controlling Waste Gas Emissions

The Company has established and continuously improved its wastewater treatment management system, and has formulated andstrictly implemented dedicated policies such as the Management System Documents for Wastewater Treatment Stations and theAdministrative Provisions on Excessive Wastewater Discharge.

During the reporting period, all wastewater pollutants discharged by the Company complied with applicable standards. Wastewaterdischarge volume at each base showed structural changes in light of production load, project construction, and process optimization. At theZhuhai Base, wastewater discharge decreased by

9.63% year on year as a result of shutdowns for maintenance, strict water use

control, and recycling efforts. At the Changzhou Base, however, changes in reclaimed water reuse and process adjustments led to an overallincrease in the Company’s wastewater discharge volume. In response, the Company has strengthened targeted water use control andreclaimed water reuse measures, and is striving to achieve a year-on-year decline in wastewater discharge in the following year.

Controlling Wastewater Emissions

During the reporting period, the Company’s SO? emissions decreased by 39.08% year on year, while total NOx emissions decreasedby

30.62% year on year. In addition to the impact of output decline caused by shutdowns for inspection and maintenance, the reduc-

tions were mainly attributable to low-NOx retrofits, as well as strengthened pollutant treatment and control measures.

IndicatorUnit202320242025SO? emissionsNOx emissions

tonnestonnes

2.06

93.22

1.74

79.52

1.06

55.17

The Company has strengthened full-lifecycle management of solid waste and hazardous waste, strictly adhering to the principles ofreduction, resource recovery, and harmless treatment. It has formulated policies such as the Administrative Provisions on HazardousWaste and the Administrative Provisions on General Waste, improved its management plans for solid and hazardous waste, standard-ized the construction and temporary storage of hazardous waste warehouses, and entrusted compliant professional entities with disposal.

During the reporting period, the Company’s total waste generation decreased by?.??%year on year. Among this, general solidwaste decreased by?.??%year on year, recyclable and hazardous waste decreased by?.??%and??.??%respec-tively year on year. The comprehensive utilization rate of waste increased from 91.03% in 2024 to??.??%in 2025.

Controlling Wastewater Emissions

IndicatorUnit20242025Decrease

Total waste generatedTotal recyclable wasteTotal general solid wasteTotal hazardous waste

tonnestonnestonnestonnes

3,585.963,264.223,464.96

3,231.893,098.623,123.14

108.75

9.87%

5.07%

9.87%

10.12%

IndicatorUnit202320242025

Wastewater discharge

volume

10,000 tonnes45.2843.9344.57

Employees, customers, partners, and communities constitute the corefoundation of corporate sustainable development. China ResourcesChemical Innovative Materials integrates social responsibility through-out the entire course of its operations, adheres to a people-orientedphilosophy and win-win cooperation, and focuses on employeewell-being, customer value, supply chain responsibility, and commu-nity harmony. Through pragmatic measures, the Company enhancessocial well-being, builds synergy for development, and promotescoordinated progress and mutual benefit between the enterprise andsociety.

Employee Training Investment RMB 1.432 millionWork Safety Investment RMB 1.35 millionPET Customer Satisfaction 96.60%PETG Customer Satisfaction 94.83%Rural Revitalization Investment RMB 421,400UN SDGs

Key Indicators

Acting for Good,Building a HarmoniousSociety

｜ Acting for Good, Building a Harmonious Society ｜｜ Acting for Good, Building a Harmonious Society ｜

｜ Acting for Good, Building a Harmonious Society ｜｜ Acting for Good, Building a Harmonious Society ｜Empowering Employee Well-being and DevelopmentOptimizing Compensation and BenefitsThe Company consistently upholds a people-oriented development philosophy and regards employees as its most valuableasset. The Company strictly comply with the labor laws and regulations of the places where we operate, continuouslyoptimize our compensation and performance management mechanisms, standardize working hour and leave management,strengthen supervision over labor employment, and effectively safeguard employees’ lawful rights and interests. By buildinga human resources management system that is well-regulated, fair, transparent, and orderly, we foster a positive environ-ment that respects, develops, and empowers people, thereby achieving resonance between employee growth and theCompany’s development.

Optimizing the compensation and performance management system. Centering on the three pillars of “improvingmechanisms, optimizing structure, and strengthening incentives,” the Company has systematically advanced the upgradingof its compensation and performance management system, continuously enhancing the standardization of compensationmanagement and the effectiveness of incentives.

Safeguarding employees’ rights to working hours and leave. The Company has always regarded its employess as itsmost valuable asset, strictly complies with all applicable labor laws and regulations in the locations where it operates, andis committed to fostering a compliant, fair, and healthy work environment. Through scientific shift management and flexibleworking mechanisms, the Company reasonably controls employee working hours, prohibits overtime work in violation ofregulations, and ensures that employees have adequate rest time. In terms of leave entitlements, the Company fullyguarantees statutory holidays, paid annual leave, sick leave, maternity leave, and other types of leave, encouraging employ-ees to balance family and personal development alongside their work. The Company firmly believes that respectingemployees’ right to rest and leave is the cornerstone of enhancing employee well-being, stimulating organizational innova-tion, and achieving sustainable corporate development.During the reporting period, employees took an average of

16.3 days of paid annual leave.

Standardizing the management of labor service providers. The Company has formulated the Measures for the Admin-istration of Labor Employment, standardizing the management of labor service suppliers throughout the entire processfrom access and engagement to supervision. Each subsidiary has established an annual assessment and elimination mechanism,with a particular focus on evaluating workplace safety, labor contracts, wage payment, social insurance, and personnelqualifications. Labor service providers that fail the assessment or cause safety incidents due to inadequate managementwill categorically not have their contracts renewed, thereby ensuring that labor employment is compliant, safe, and controllable.

Ensuring Equal Employment OpportunitiesThe Company strictly adheres to national laws and regulations such as the Labor Law of the People’ Republic of China, theLabor Contract Law of the People's Republic of China, the Employment Promotion Law of the People's Republic of China,and the Law on the Protection of Minors of the People's Republic of China, while also aligning with international humanrights standards and relevant local regulations and policies. It continuously standardizes labor management. By establishingpolicies such as the Recruitment Management Measures and the Labor Contract Management Measures, the Companyintegrates the principles of equality and non-discrimination into every stage of employment, resolutely preventing illegalpractices such as child labor and forced labor, and effectively safeguarding the legitimate rights and interests of workers.As of the end of the reporting period, the Company employed1,079 full-time employees, with 36 new hires, including6 fresh graduates. The labor contract signing rate and social insurance coverage rate both reached 100%, and there were

no instances of child labor, forced labor, or other violations.

Showcasing DiversityThe Company adheres to the principle of equal employment and strictly prohibits discrimination based on race, gender,age, disability, or other factors in recruitment, promotion, compensation, and other processes. It fully complies with relevantlocal laws and regulations and actively promotes the career development of female employees, supports employment forindividuals with disabilities, and fosters a fair and just working environment. The Company firmly believes that a diverseworkforce is a key source of innovation and sustainable development.

Upgrading theCompensation andPerformanceManagement

System

Building mechanismsconsolidating the management foundation andsystematically establishing the groundwork forcompensation and performance managementEstablished a total payroll budget manage-ment system, upgrading it from a costmanagement tool to a strategic lever;Successfully launched the compensationmanagement system and Data Collection 2.0,realizing process standardization anddata-driven decision-making;

Strengthening incentives

stimulating organizational vitality andcomprehensively reinforcing a long- andshort-term integrated incentive system

Strictly implemented the tenure systemand contractual management for themanagerial level, realizing that “positionscan be promoted or demoted, and incomecan increase or decrease”;Performance contracts were extended to allemployees to ensure that strategicobjectives are cascaded at every level;Continued to advance equity incentives,completed the previous grant andrepurchase, and drafted a new round ofincentive plan.

Optimizing the structure

improving precise alignment and deeply optimizing the compensation and performance structure

Conducted comprehensive research and dual benchmarking of “performance-compensation”, and designed and implemented a compensation structureplan centered on “performance alignment and precise incentives”;At the same time, revised the performance management measures for all employees, forming a value closed loop of “target-execution-evaluation-feed-back-development”;

aged 51 and aboveaged 41 to 50aged 31 to 40aged 30 and below

??%??%

??%

??%

frontlineemployees

middle managementemployeessenior management employeesmaleemployees

femaleemployees

??%

??%

795 male employees

female employees

465with a bachelor's degree orabove,

with a college diploma,

with a technical secondaryschool education or below.

1,079with labor contracts

temporary or other types

of workers

production personnel,

sales personnel,

technicalpersonnel,

finance personnel,

administrative personnel.

aged 51 and above,

aged 41 to 50,

aged 31 to40,

aged 30 and below

frontline employees,

middle management employees,

senior management employees

??%

??%

?%

technical secondary school education or belowbachelor'sdegree or above

collegediploma

labor contractsother

productionpersonnel

salespersonnel

technicalpersonnelfinancepersonnel

administrativepersonnel

??%??%

??%

??%

??%

??%?%

?%??%

??%

During the reporting period, the Company’s employee turnover rate was 4.7%, significantly lower than the industry average, indicatingthat the workforce remained generally stable.Emphasizing Talent DevelopmentThe Company adheres to the strategy of strengthening the enterprise through talent development and continuously improves its talentmanagement system under the guidance of the “Six Refinements Strategy”. By formulating the Position Management Measures, theCompany has continued to optimize management mechanisms covering such areas as compensation, talent planning, and training anddevelopment. It has also established multiple career pathways for both professional specialization and generalist development, therebymotivating employees to pursue self-improvement and promoting the shared growth of both the organization and individuals, therebyachieving the vision of “refined minds, remarkable grains”.The Company focuses on the core talent groups of the “3+1” support team, specifically targeting key groups such as Party members,directly managed cadres, and key talents. It has innovatively developed a tiered and categorized training system that is guided by Partybuilding, empowered by business needs, fosters talent development at multiple levels, and emphasizes practical experience. Through adual-track program design that combines precise empowerment by tier and category with comprehensive training for specialization andversatility, the Company ensures a two-way linkage between strategic needs and employee growth. At the beginning of the year, theCompany formulated and implemented the 2025 Education and Training Plan, which systematically outlines learning paths for differentbusiness lines and talent groups.

39 CR CHEM-MAT｜2025 Sustainability ReportCR CHEM-MAT｜2025 Sustainability Report 40

｜ Acting for Good, Building a Harmonious Society ｜｜ Acting for Good, Building a Harmonious Society ｜

aged 51 and aboveaged 41 to 50aged 31 to 40aged 30 and below

（人）

Employee Turnover by GenderEmployee Turnover by Age Group

Building a Tiered and Categorized Training System

Talent Pipeline Development Project. In line with the concepts of agility in organization and talent rejuvenation, the Company focuseson reviewing and organizing the “talent pool”, designing talent growth pathways. Through training sessions such as “Leading Talent,”“Skilled Talent,” and “Outstanding Talent”, the Company implements targeted training projects in a tiered and categorized manner. A totalof8 training projects were completed throughout the year, covering 209 participant attendances.

Functional Support Projects. Aligned with the Company’s strategic objectives, the Company continues to advance benchmarking improve-ments and organizes action learning initiatives. A total of36 training projects were completed throughout the year, covering 2,411 partici-pant attendances.

Promoting Key Talent Development Projects

During the reporting period, the Company’s total investment in employee training amounted to RMB 1.432 million, with 63 trainingsessions conducted. The training coverage rate reached100%, and a total of 1,079 employees participated in the training.

Target Audience

Group Executive Training

Party buildingspecial programsParty building and YouthLeague affairs sequence

Special program on thespirit of the “TwoSessions” and the spirit ofthe Eight-Point Decision

Training program forsecretaries of grassrootsParty organizations

“3+1” branch talent team development programBusiness ManagementSequence - M

Technology R&D

Sequence - R

ProfessionalSequence - P

SkillsSequence - S

Leading Talent Program -development for Companydirectly managed cadres

Training Program forNewly Appointed DirectlyManaged Cadres -bridging competencygaps for new positions

Joint Training Program

Group talentdevelopment programs

China Resources Chemical Materials talent development programsCR Groupdirectly managedcadres

Training for DeputyManagers Directly Managed

by the GroupGroup YoungTalent Program

China Resources Way

Training ProgramBusiness unitdirectly managedcadres

Business unitmiddle-levelcadres (manager

level)Business unitkey employeesBusiness unitgeneralemployees

Elite Talent Program(Chemical MaterialsOutstanding Young Talent

Class) - reservedevelopment forCompany directlymanaged cadres

Outstanding TalentProgram - development

of the Company’sscientific and

technological talent

Empowerment trainingfor frontline team leaders

Empowerment programfor Youth League cadresYoung Marxists Training

ProgramEmpowerment programfor Party affairs workersStudy of Party discipline

and Party regulations

Vocational skill level

evaluationDevelopment of newly

hired employeesTraining and certification

for assessors ofvocational skill evaluation

Training Program for “Six

Refinements Strategy”Talent Development

Program forOrganizational Work

ProfessionalsIndustrial Digitalization

Training ProgramInnovation Lecture Hall -fostering the Company’s

innovation culture

Empowerment Trainingfor Middle-level Cadres -

bridging competencygaps for current positions

TalentPipelineDevelopmentProject

Organizational Work Line Training ProjectPrecision R&DRefined Procurement

Lean ProductionPrecision MarketingSmart InvestmentEnergized and Enthusiastic

Leading Talent Program:

Leadership Empowerment Project

Skilled Talent Program:

Young Cadre Training Class (Fourth Session)

Outstanding Talent Program:

Technology Talent Training Class (Third Session)

“Future Stars” Campus Recruitment New Employee

Training Program

｜ Acting for Good, Building a Harmonious Society ｜｜ Acting for Good, Building a Harmonious Society ｜Strengthening Talent Team Development

Advancing Organizational

Transformation

Optimizing PersonnelStructure

Strengthening the

Talent Pipeline

The Company achieve substantialincrease in labor productivitythrough promoting a

1.5-level

organizational reshaping andoptimizing the “three clarifica-

tions” plan.

The Company has reduced thenumber of directly managedcadres and promoted competitiverecruitment for key positions. Thenumber of cadre positions hasbeen streamlined from 60 to39,

and341 key core positions have

undergone competitive recruit-ment.

The Company has established atraining system for scientific talent,Hong Kong talent, and postgraduatetalent in engineering, and hasimproved its tiered and categorizedtraining mechanism. Over thecourse of the year, the Companyrecruited24 scientific talents, 3high-level talents, and recognized

core talents.

Innovating Talent Recruitment ChannelsThe Company actively expands recruitment channels and continuously enriches recruitment resources and channels to provide strongsupport for attracting highly skilled and scarce talent.

Improving the Incentive SystemThe Company is simultaneously building a diversified talent incentive mechanism, enhancing compensation and performance policies, andproviding institutional guarantees for retaining internal core talents and attracting high-end external talents. This approach continuouslystrengthens the stability and competitiveness of the talent pool.

Safeguarding Occupational HealthThe Company places a high priority on the physical and mental well-being of itsemployees and strictly implements national policies and directives, including theOpinions of the State Council on Implementing the Healthy China Action and theNational Plan for Prevention and Control of Occupational Diseases (2021-2025). TheCompany continuously improves its occupational health management system. It hasestablished occupational health management regulations and health records foremployees, refining the institutional framework and continuously optimizing theworking environment.For employees in special jobs, the Company provides necessary personal protectiveequipment (PPE) and installs protective facilities such as dust collectors at work sitesto prevent occupational diseases. It strengthens the identification, control, and supervi-sion of occupational health risks. Additionally, the Company regularly organizesoccupational health checkups for employees, conducts ongoing occupational healtheducation and awareness training, and continually enhances employee health aware-ness and participation, ensuring the protection of employees' occupational health rights.

Occupational Disease Prevention and Control.

The Company strictly adheres to the Law of thePeople's Republic of China on the Prevention andControl of Occupational Diseases and other relevantlaws and regulations. It has established a compre-hensive occupational disease prevention and controlmanagement system, developed the OccupationalDisease Hazard Incident Handling and ReportingSystem and the Emergency Rescue Plan forOccupational Disease Hazard Incidents, and contin-uously improves its mechanisms for preventing andmanaging occupational health risks and emergen-cies. The EHS Committee oversees and coordinatesthe efforts, with the EHS Department taking the leadand collaborating with production departments andthe Comprehensive Management Department,ensuring a clear division of responsibilities and aneffective occupational disease prevention andcontrol organizational structure.

Health Management for Special Positions. For

positions involving the use of radiation sources andother special jobs, the Company has established aradiation safety management system and anemergency response plan, specifying responsiblemanagers and emergency organizational structures.The Company strictly enforces requirements such ascertified personnel, personal dose monitoring,radiation monitoring of work areas, and healthrecord management, and regularly commissionsthird-party organizations to conduct testing andevaluations. These measures ensure that theradiation workplace and personnel dose monitoringresults meet the required standards.

Supporting Employee Growth

The Company has optimized four career streams: management, R&D, professional, and technical streams, fully opening up careerdevelopment pathways for employees and expanding diverse promotion opportunities, further boosting employees’ enthusiasm forinnovation and entrepreneurship.

ManagementSequence

R&DSequence

Professional

Sequence

SkillsSequenceChairman/General Manager

Deputy General ManagerDepartment General Manager/ General ManagerDepartment DeputyGeneral Manager/ Deputy General ManagerDepartment Senior ManagerDepartment Manager

Chief TechnicianSpecial TechnicianSenior Technician

TechnicianSenior WorkerIntermediate WorkerJunior Worker

Apprentice

Chief Scientist (Group-levelScientific and Technological Talent)

Chief Scientist (Company-levelScientific and Technological Talent)

R&D DirectorR&D Senior Manager

R&D ManagerSenior Research Fellow

Research FellowAssistant Research Fellow

Senior Professional Director / Senior Business

Director / Chief EngineerProfessional Director / Business Director /

Technical DirectorSenior Professional Manager / Senior Business

Manager / Senior EngineerProfessional Manager / Business Manager /

Principal EngineerSenior Supervisor / Senior Engineer

Supervisor / EngineerSpecialist / Assistant Engineer

Assistant Specialist

Safeguarding Health and Safety

The Company continues to deepen the EHS Strategy, deeply implementing the EHS Responsibility Management Measures, and continu-ously improving safety production management, emergency management systems, and occupational health management. Throughenhanced training, awareness campaigns, and safety drills, the Company has built an EHS training system that covers all employees, withtiered and categorized training. Special training is conducted in key areas such as energy and carbon management, chemical processsafety, environmental monitoring, occupational health, and accident prevention, aiming to comprehensively enhance employees’ EHSawareness and professional capabilities, ensure the effective implementation of systems, and foster a safe and healthy working environ-ment. This effort helps to lay a solid talent foundation for the Company’s green and low-carbon development.

During the reporting period, the employee occupational health checkup ratereached100%, and no occupational disease cases were identified.

Training and Drills Mechanism

Implementation Measures

Emergency Knowledge TrainingRegular DrillsAwareness EducationMaterial Support

Implementation MeasuresEmployees are trained in first aid skills such ascardiopulmonary resuscitation (CPR) and bandaging.Organize emergency rescue drills.Conduct regular occupational health training.Ensure the availability of sufficient rescuematerials and equipment.

Personal Monitoring Report

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Strengthening the Safety Defense Line

The Company adheres to the management philosophy of “Safety First, Prevention First, Comprehensive Management”. With thesupport of the Occupational Health and Safety Management System Certification, the Company has established a safety produc-tion management system that covers the entire process of bottle-grade polyester chips and PETG specialty polyester R&D andproduction.

During the reporting period, the Company continued to strengthen safety production management. A total of48,680 hoursof safety training were conducted throughout the year, with safety production investments amounting to RMB 1.35 million.Enhancing Emergency Response Capabilities

Strengthen Emergency Drills to Enhance Response Capabilities. To improve safety and emergency management standardsand enhance emergency response capabilities, the company regularly organizes emergency drills for unexpected environmentalincidents. These drills focus on strengthening the ability to handle sudden situations. A total of 52 drills were conducted through-out the year, with 729 participants, covering various safety scenarios. This has effectively improved the contingency planningsystem and enhanced employees' emergency response skills.

Practical DrillsFire Drill

To effectively improve the emergency response capabilities forhigh-temperature EG leakage accidents, on July 21, 2025, theChangzhou base conducted a drill on the on-site disposal planfor high-temperature EG leakage. The drill was carried out in atense and orderly manner, with clear division of labor among theteams and excellent coordination, achieving the expectedobjectives.

To improve the handling capabilities for hazardous chemicalleakage, ensure the personal safety of employees during produc-tion, and reduce accident losses, on May 30, 2025, the companyconducted a phenol-tetrachloroethane leakage drill. The partici-pants responded to the emergency promptly and effectively,achieving the set objectives.

On April 27, 2025, the company organized a practical drill withthe theme of "Material Package Collapse and Human Crushing,"aimed at testing the feasibility of the emergency plan throughreal-life scenarios and training the emergency rescue team'spractical capabilities.

On August 21, 2025, the company conducted a photovoltaic firedrill. A simulated fire point was set up in the inverter room, andthe inspection personnel promptly detected the fire and immedi-ately activated the emergency plan. Throughout the drill, allteams coordinated effectively, which successfully tested thescientific and operational feasibility of the emergency plan.

On November 27, 2025, the company invited the Xinbei DistrictFire Brigade of Changzhou City to conduct comprehensive fireemergency training.On March 14, 2025, the Changzhou base organized an emergen-cy drill for a high-temperature EG leakage accident, with 20participants, including process team members and departmentmanagers. By regularly conducting emergency drills, the companytests employees' emergency response capabilities in a practical,real-world context, promotes the construction of the emergencymanagement system, strengthens the emergency responsecoordination mechanism, and reinforces the ecological andenvironmental protection defense.

Occupational Health and Safety Management System Certification Certificate of Zhuhai

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Optimize material allocation to strengthen emergencysupport. All grassroots enterprises of the company have compre-hensively carried out emergency material inspections and invento-ries, systematically assessing the status of emergency personnel,technology, materials, and equipment. Resources have beenoptimized, and an emergency response system with both regularand emergency capabilities has been established. Grassroots enter-prises have promptly replaced near-expiry materials, ensuring thatthe existing emergency supplies are intact, sufficient, and withintheir validity period.

Strictly Control Chemical Risks

The Company strictly complies with the Law of the People’s Republic of China on Work Safety, the Regulations on the SafetyManagement of Hazardous Chemicals, the Regulations on the Administration of Precursor Chemicals, and the Measures for thePublic Security Administration of Explosive-Prone Hazardous Chemicals. During the reporting period, the Company issued theProvisions on the Safety Management of Hazardous Chemicals in the Technology Center to further standardize the safety manage-ment of hazardous chemicals in research and development and analytical testing, and to ensure safe use and disposal.The Company attaches great importance to personnel safety and emergency response capability building in chemical operations,integrates Environment, Health and Safety (EHS) management requirements throughout the entire chemical use process, imple-ments full-chain safety management for hazardous chemicals under the “one matter, one chain” approach, and strengthens tieredcontrol of major hazard sources and accountability assignment. Each base completed hazard identification and rectification andachieved dynamic risk control, with a 100% rectification rate for hazardous chemical hazards throughout the year. In responseto emergencies such as chemical burns, the Company regularly organized special emergency drills, simulating key proceduresincluding on-site cordoning, personnel evacuation, emergency flushing, casualty rescue, information reporting, and medicaltransfer after an accident, in order to test the operability of emergency response plans and the efficiency of on-site coordination.Managementmodule

Management focusTraining andeducationCollectionmanagementUse control

Storagerequirements

Waste

disposalEmergency

disposal

Personnel handling hazardous chemicals must receive specialized training and be familiar with the hazard-ous characteristics of hazardous chemicals, fire emergency response, occupational protection, and leakprevention and response. Safety engineers shall organize at least one annual training session on hazardouschemicals expertise.Designated personnel shall be responsible for requisition and collection, and a requisition register shall beestablished. Precursor chemicals and explosive precursor chemicals shall be collected by two persons inquantities limited to the amount required for the same day’s experiment, and any remainder shall bereturned on the same day. Chemicals may be released from storage only when accompanied by an MSDSand complete labeling (“one document, one label”).A usage register shall be established to record information such as time of use, chemical name, quantityused, and remaining quantity. Precursor chemicals and explosive precursor chemicals shall be handled by atleast two persons during use, with one person operating and the other providing supervision.Chemicals shall be stored by category and kept away from heat sources, ignition sources, and powersources. Chemicals with incompatible properties or requiring different firefighting methods shall not bestored together. Flammable and explosive chemicals shall be stored in explosion-proof cabinets, andcorrosive chemicals shall be stored in corrosion-resistant cabinets.The hazardous waste management process shall be implemented in compliance with applicable regulationsand standards.Emergency response plans shall be formulated, emergency rescue personnel and equipment shall be provid-ed, and drills shall be organized regularly. In the event of an accident, the emergency response plan shall beactivated immediately and reported to the Company’s security department.

Through these drills, the Company further strengthened employees’ understanding of the hazardous characteristics of chemicalsand emergency response procedures, enhanced the self-rescue and mutual rescue capabilities as well as emergency responsecapacity of personnel in relevant positions, continuously improved the allocation of emergency supplies and on-site responsemechanisms, and ensured that risks can be quickly and effectively controlled in emergency situations, thereby minimizing theimpact of chemical accidents on employee health and production operations.

Hazardous chemical burn drill site in May 2025Hazardous chemical burn drill site in November 2025

Promoting Democratic communicationThe Company adheres to a democratic management system for factory affairs disclosure under the unified leadership of Partyorganizations, administrative operation, disciplinary inspection and supervision, day-to-day responsibility of labor unions, and broademployee participation, continuously deepens democratic management, advances factory affairs disclosure, and effectivelysafeguards employees’ rights to know, participate, express, and supervise.Improve institutional safeguards. The Company has formulated the Staff Representative Congress System (ImplementationRules), clearly defining key matters such as the composition, powers, and rules of procedure of the Staff Representative Congress,effectively incorporating democratic management into the Company’s internal control management system and ensuring thatdemocratic management is rule-based and standardized in operation.Deepen factory affairs disclosure. Upholding the principle of openness and transparency, the Company discloses matters ofbroad employee concern, including production and operation conditions, financial status, personnel appointments and removals,as well as other hot, focal, and sensitive issues, through various channels such as the Company’s internal EIP system and bulletinboards. By adopting both prior disclosure and post-event disclosure, the Company proactively accepts employee supervision andenhances management transparency.

Strengthen labor union organizations. During the reporting period, the construction of labor union organizations at all levels ofthe Company progressed steadily.

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Delivering Employee Care

The Company attaches great importance to employee care and support, and continues to improve assistance mechanisms foremployees in need and health support systems, effectively enhancing employees’ sense of fulfillment and well-being.

Targeted support for employees in need. Throughout the reporting period, the Company implemented multifacetedemployee assistance programs, extending aid to 42 employees facing financial difficulties with total disbursements of RMB77,000. The Company conducted home visits to 2 households of needy employees and provided specialized care to 16

ill employees. Through these concrete support measures, the Company effectively alleviated practical hardships for employees

and their families while delivering organizational warmth and care.

On November 13, 2025, ChangzhouBase held the first trade unionCongress and workers' Congress,deliberated and adopted relevantdocuments, and elected the tradeunion committee, the fund reviewcommittee, the labor mediationcommittee and the women workers'committee to lay a solid foundationfor the standardization ofgrass-roots trade unions.

On December 8, 2025, Zhuhai Baseheld the third Plenary meeting ofthe third trade union memberCongress to further strengthen theparticipation of workers and theprotection of their rights andinterests.

On December 24, 2025, the companyheld the fourth member Congress ofthe trade union to elect a new tradeunion team. Yan Xianjun, Secretary ofthe Party Committee and chairman ofthe board of directors of the company,put forward the requirements of "thesame direction of strategy, the samefrequency of reform, the same heartof workers and the same creation ofbrands".

The Company cares for employees in need and delivers the warmth of the organization through in-person support.

"Discover Changzhou 2025 City

Orienteering Challenge"

"Discover Changzhou 2025 CityOrienteering Challenge"

Women's Day "Graceful Women, JoyfulTogetherness" Team Building Event

Women’s Day MovieScreening Activity

Women's Day Wellness

Initiative

Women’s Day Miniature Landscape

Making Activity

Enrich cultural life. The Company attaches importance to employees’ physical and mental well-being and cultural development.During International Women’s Day, it organized a series of care initiatives, including miniature landscape making, health care activi-ties, movie viewing, and the fun event themed “Showcasing Women’s Charm, Sharing Happiness Together”, creating a positiveatmosphere of caring for and respecting employees. On November 15, 2025, the Company organized employees to participate inthe “Discover Changzhou · 2025 Urban Orienteering Challenge”, enhancing employee cohesion and showcasing a positive andprogressive spirit through teamwork and sports competition.

Advancing Customer Value Co-creationEnsuring quality and safetyImproving the quality management systemThe Company is committed to establishing and continuously enhancing its product quality management system. Throughend-to-end, systematic institutional development and process optimization, it has laid a solid foundation for delivering exceptionalproduct quality.During the report period, the Company has formulated the 2025 Quality Objectives and Management Plan.The Company passed the ISO 9001 recertification audit and expanded the scope of quality management system certification toinclude the Zhuhai base’s 500,000-ton PET business and 50,000-ton PETG new materials business. It also tracked updates tonational standards for bottle-grade PET and formulated, updated, and improved PET product quality standards. The Companyexercised strict control over product quality and engaged authoritative third-party testing institutions to conduct annual inspec-tions, confirming that its products complied with national standards and related requirements of U.S. FDA . By setting qualificationrate targets for various raw materials, auxiliary materials, and packaging materials, the Company strictly controlled quality risks atthe source, ensured production stability and product reliability, and enhanced customer satisfaction.

During the reporting period, the coverage rate of the Company’s ISO 9001 quality management system certification reached100%, and no major liability accidents related to product and service safety or quality occurred.

Zhuhai Base Quality ManagementSystem Certi?cate

Changzhou Base Quality Management

System Certi?cate

Standardizing Product Identification ManagementThe Company formulated the Product Identification and Traceability Control Procedure, setting out specific requirements forproduct identification to ensure that information such as product composition, specifications and models, and production batchesis accurately labeled, thereby facilitating quality traceability and customer identification.During the reporting period, the Company did not record any violations related to product and service information labeling.

Optimizing system management and preventing and mitigating risks. In response to the increase in complaints related tosea freight packaging, the Changzhou base carried out a special improvement initiative, developed quality supervision and inspec-tion checklists for sea freight packaging and tank trucks, and refined the management requirements for in-vehicle samples; theZhuhai base organized comprehensive inspection and rectification measures to address impurity risks during the sea freightpackaging process.Advancing improvement projects and enhancing quality competitiveness. The Changzhou base tackled and resolved theissue of negative deviation in truck scale measurements and optimized the daily maintenance process; it also promptly identifiedand addressed the hidden risk of holes in the connecting fabric bag between the pelletizer drying box and the vibrating screen. Inmid-to-late September 2025, the Changzhou and Zhuhai bases organized lean improvement project evaluations, with each baseselecting two high-quality projects.Carrying out internal and external exchanges and expanding industry influence. The Company strengthened its work onthe value assignment of national standard samples for bottle-grade polyester chips at Yizheng Chemical Fiber; the Changzhou basealso carried out special quality communication activities for outsourced personnel in response to quality-related issues.Organizing knowledge competitions and consolidating the quality foundation. The Company actively organized all employ-ees to participate in the National Total Quality Management Knowledge Competition for Enterprise Employees, achieving a partici-pation rate of 84.67% and an average score of 96.44.

49 CR CHEM-MAT｜2025 Sustainability ReportCR CHEM-MAT｜2025 Sustainability Report 50

｜ Acting for Good, Building a Harmonious Society ｜｜ Acting for Good, Building a Harmonious Society ｜

Strengthening communication and training to enhance quality awareness. The Company gave full play to the role of various

media platforms, including newspapers, websites, social media, mobile platforms, and screens, and carried out quality communica-tion through DCS screens, elevator advertisements, and display boards in canteens and workshops. It also systematically organizedtraining on quality knowledge and skills. At the Changzhou base, the Company conducted special study sessions on the Outlinefor Building a Quality Nation and specialized training on PET export tank truck control and product quality standards, while theZhuhai base organized quality awareness training under the theme of “Product Quality Is No Small Matter.”Organizing skills competitions to strengthen professionalcapabilities. During the reporting period, the Changzhou base

held the “Runxincai” Craftsman Cup Chemical Inspector Opera-tional Skills Competition and the Electromechanical and Instru-ment Maintenance Skills Competition.

Building a Solid Foundation of Quality Development

The Company thoroughly implemented the Outline for Building a Quality Nation and the arrangements for Quality Month activities,adhered to quality improvement as the core, full participation as the foundation, and improvement and innovation as the drivingforce, and systematically advanced key tasks such as cultivating quality awareness, strengthening skills training, optimizing andimproving systems, and implementing improvement projects, thereby continuously consolidating the foundation for quality devel-opment and providing strong support for the Company’s high-quality development.

The 4th “Runxincai” Craftsman Cup Chemical Inspector Operational SkillsCompetition at China Resources Chemical Materials Changzhou Base

Optimizing Customer Service

Improving the customer complaint handling mechanism. The Company formulated the Customer Complaint Handling Proce-

dure, clearly defining the customer complaint handling process and related responsibilities to ensure that customer feedback isaddressed effectively and promptly. The handling process covers six stages, namely acceptance and registration, cause analysis,classified handling, final disposition, customer response, and corrective and preventive actions, thereby achieving closed-loopmanagement of complaint handling.

Establishing a product recall mechanism. The Company formulated the Product Recall Control Procedure, clearly defining thetriggering conditions, organizational process, and handling measures for product recalls. When a product is found to have qualitydefects or safety hazards, the recall procedure is initiated, including product recall proposal, establishment of a recall team, prepa-ration of a recall plan, launch of the recall, handling of recalled products, corrective actions and improvements, and recallreporting.During the reporting period, the Company did not experience any product recall incidents.

Deepening customer satisfaction management. Upholding the principle that quality is the core competitiveness for an enter-

prise’s survival and development in the market environment, the Company remains committed to providing customers withhigh-quality services in a dedicated and responsible manner, and organizes customer satisfaction surveys to continuously improvecustomer service standards.During the reporting period, the Company received a total of 4 complaints related to products and services, all of which wereresponded to and handled in accordance with relevant requirements, resulting in a 100% complaint handling rate. Among them,customer satisfaction reached 96.60% for PET and 94.83% for PETG.Carrying out compliant and honest marketing. The Company strictly complies with laws and regulations such as the Law ofthe People’s Republic of China on the Protection of Consumer Rights and Interests and the Advertising Law of the People’s Repub-lic of China, and ensures compliance by improving institutional frameworks and standardizing business processes. In businessactivities such as contract signing and product promotion, the Company strictly abides by all applicable laws, regulations, andinternal rules, provides customers with objective and truthful information, rejects false publicity, and avoids exaggeration, riskconcealment, and excessive marketing, thereby fulfilling its responsibilities to customers.During the reporting period, the Company did not record any violations related to marketing communication.

Innovating Green Transportation Models

The Company has innovated its transportation models. During the reporting period, sea freight packaging transportation accountedfor one-third of the Company’s total annual deliveries, representing a year-on-year increase of 26.5%.Sea freight packaging delivery covers the entire process, including preliminary planning and container loading, logistics vesselschedule tracking, in-transit change monitoring, and receipt coordination with terminal plants. In response to contingencies suchas port congestion and container rollovers, vessel suspension, and shipping delays caused by weather conditions, the Companyhas established a sound emergency response system and prepared multiple contingency measures in advance. To meet customers’needs for frequent production plan adjustments due to peak and off-peak seasons, the Company rapidly assessed all availableoptions and made prompt decisions to adopt more cost-effective and flexible solutions, which were widely recognized by custom-ers.Terminal transport vehicles for sea freight packaging deliveries comply with China VI fuel standards or new energy standards,enabling a green, low-carbon, and environmentally friendly transportation model. This approach not only provides customers withefficient and safe transportation services, but also enhances customer trust, creates value for customers, and helps protect theblue planet. The model has effectively prevented disruptions to customers’ production lines and ensured the stable supply of down-stream beverages.During the reporting period, the Company received the “Core Supply Strategic Partner Award” from COFCO Coca-Cola Bever-ages (Hebei) Co., Ltd.

Customized Supply Chain SolutionsAs a supplier to Tricon, a core strategic partner in the export market, the Company focuses on its key needs for raw material stabili-ty, timely delivery, and cost competitiveness. Through regular senior management engagement, periodic visits, and in-depthmeetings, the Company accurately identifies the personalized standards of end customers in areas such as intrinsic viscosity,transparency, and environmental certification for bottle-grade polyester chips, ensuring a high degree of alignment betweenproduct supply and end-market demand.The Company conducts in-depth analysis of trade policies in target end markets and accurately captures key rules such asanti-dumping duty rates and tariff preference terms, thereby providing customers with tailored integrated supply chain solutions.It has innovatively adopted a flexible trading model combining annual long-term contracts with batch performance under spotorders, effectively helping customers hedge against raw material price fluctuations and strengthen their cost advantages. Inparallel, the Company provides professional technical guidance throughout the entire process to ensure the stable operation ofend customers’ production processes and support improvements in production efficiency and product quality.51 CR CHEM-MAT｜2025 Sustainability ReportCR CHEM-MAT｜2025 Sustainability Report 52

｜ Acting for Good, Building a Harmonious Society ｜｜ Acting for Good, Building a Harmonious Society ｜

Providing Green Solutions

By empowering customer growth through professional services and reinforcing the foundation of cooperation through deep collab-oration, the Company continues to strengthen partnership stickiness, effectively helps customers enhance their competitiveness inend markets, and drives the steady growth of order volume and market share for both parties, thereby achieving mutual successin corporate development and customer value enhancement.

Visit and exchange with Tricon, the core strategic partner for exportBuilding a Responsible Supply Chain NetworkImproving Supply Chain ManagementThe Company has established and implemented the Supplier Management Measures and continues to improve its suppliermanagement system. By identifying and controlling supplier performance risks and applying classified and tiered management, theCompany promotes the development of a stable, transparent, and sustainable supply chain system.Adhering to transparent procurement. The Company follows the principles of fairness, openness, and impartiality in transac-tions, signs the Sunshine Declaration with its partners, keeps reporting and supervision channels open, strengthens joint integritybuilding, and works together to prevent commercial bribery and improper conduct.Advancing a green supply chain. The Company has formulated the Work Plan for Green Supplier Evaluation to systematicallyadvance the implementation of green supplier evaluation. By specifying environmental protection requirements in contracts,conducting regular on-site environmental reviews, and encouraging suppliers to obtain environmental product certifications, theCompany guides and promotes suppliers to improve their environmental management capabilities and works with partners toadvance the green and low-carbon transition.

Improving procurement governance mechanisms. The Company continues to improve its procurement management system,enhance the efficiency of procurement processes, and strengthen compliance awareness and the execution of institutional requirements.

Improving procurementmanagement system

Building a standardized and transpar-ent procurement system

Revising and Issuing ProcurementManagement Regulations; IntroducingProcurement Committee Rules andProcurement Management Manual;Establishing Special List ManagementMechanism.

Strengthening Compliance Awarenessand Policy Implementation

Organizing Annual Bidding andProcurement Training, SpecializedOperation Training, and Online PolicyTraining.

Enhancing Digitalization andTransparency

Launching Bulk Materials TradingPlatform; Promoting SRM SystemManagement; Applying for E-Procure-ment CA Accounts; Advancing DigitalProcurement Process for Miscella-neous Materials.

Enhancing ProcurementProcess E?ciency

Conducting ProcurementTraining Programs

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Supplier Management Standard Process

Entry Verification

ProcurementCommitteeReviewQualified Supplier

List

System SupplierDatabase

Supplier Exit

RegistrationApplication

CommercialReview

AdmissionReviewTechnicalReview

Trial Process

Routine Procurement

ApplicationRegular Supplier

EvaluationSupplier Rectification

Exceptional Evaluation

The Company attaches great importance to supply chainsecurity and resilience, and integrates supply chain riskmanagement throughout the entire process of supplieradmission, evaluation, cooperation performance, perfor-mance assessment, and exit management, while continu-ously improving its supplier management system. Adheringto the management principles of openness and transparen-cy, fair competition, honesty, and good faith, the Companystrengthens the prevention and control of compliance,quality, delivery, and EHS risks in the supply chain throughclassified and tiered management, dynamic evaluationmechanisms, and blacklist control measures, therebybuilding a stable, reliable, green, and sustainable supplychain ecosystem and ensuring the stable operation ofproduction and business activities.During the reporting period, the Company organized a totalof 58 hours of ESG training for suppliers, covering 196participant attendances.

Strengthening Risk Management

Control linksRisk points/Key Focus AreasMain measures

Output results/management tools

Non-compliant Supplier Qualifica-tions, Insufficient PerformanceCapacity, Potential Quality andEHS Risks.

Supplier Admission ReviewRecords, Supplier Database,Qualification Archives.Establishing Supplier Admission Mecha-nism；Strictly reviewing supplier qualifications,capabilities, and credit information;conducting multi-dimensional assessmentsof key suppliers to ensure reliable sourcesand qualified quality.

SupplierAdmission

Key Supplier Disruption Risks,Unstable Supply Chain Structure,Dispersed Control Resources.

Classification and Grading List,Qualified Supplier Register.Implementing Supplier Classification andGrading ManagementManaging suppliers by importance level(CategoriesA/B/C/D);implementingfocusedcontrol for core suppliers and differentiat-ed management for general suppliers.

Supplier Classificationand GradingManagement

Delivery Delays, Quality Abnormali-ties, Insufficient Service Capability,Unstable Performance.

Supplier Assessment ScoreSheets, Performance Monitor-ing Records.Establishing Dynamic Assessment Mecha-nismEvaluating suppliers from dimensions ofquality, commerce, and on-site management;regularly reviewing contract performance.

Supplier PerformanceAssessment

Supplier Risks Not Timely Identified,Declining Partnership Quality, Non-trans-parent Performance.

Annual Supplier EvaluationResults, Qualified/BlacklistRegister.Implementing Supplier Evaluation Manage-mentClassifying suppliers as Excellent, Good, ToBe Rectified, or Unqualified based on annualcomprehensive assessment scores; updatingqualified supplier list and cooperation strategiesaccordingly.Supplier EvaluationManagement

Inefficient Long-term Partnerships,Persistent Non-compliant Suppliers,Risk Transmission to Production.

Supplier Exit Records, ExitedSupplier List.Establishing Supplier Exit MechanismDefining clear exit standards and procedures;implementing exit management for unquali-fied, poorly managed, or seriously non-com-pliant suppliers to reduce systematic supplychain risks.Supplier ExitMechanism

Bid Rigging, False Documentation,Major Contract Breaches, Safety andEnvironmental Incidents, IntegrityRisks.

Blacklist Supplier Database,Banning Mechanism, Non-com-pliance Disposal Records.Strengthening Supplier Blacklist ManagementEstablishing supplier blacklist system; banningseriously non-compliant suppliers; blacklist-ed suppliers ineligible for cooperation within5 years; identifying and controlling risks ofaffiliated companies.Supplier BlacklistManagement

Commercial Bribery, Unfair Competi-tion, Non-compliant Transaction Risks.

Integrity Agreements, ReportingChannels, SupervisionMechanism.Promoting Integrity and Compliance PartnershipAdhering to principles of fairness, impartiali-ty, and transparency; strengthening procure-ment process supervision; reinforcingintegrity partnership through agreementconstraints and reporting mechanisms.

Integrity andCompliancePartnership

Information Gaps Leading to Untrace-able Risks, Inability to Review SupplierHistorical Performance.

Supplier Archives Database,Risk Record Ledger, Informa-tion Traceability System.Enhancing Supplier Records and Informa-tion ManagementEstablishing supplier records managementsystem covering admission documents,assessment records, evaluation results, andrectification status; achieving full life cycletraceability management.

Supplier Recordsand InformationManagement

Insufficient Collaboration and Coordina-tion, Information Asymmetry, LowSupply Chain Efficiency.

Supplier Mutual Visit Records,Satisfaction Surveys, Collabora-tive Improvement Mechanism.Improving Supply Chain Communication andCollaborationOptimizing supplier communication mecha-nisms; gathering opinions and suggestionsthrough regular mutual visits and satisfactionsurveys; enhancing cooperation efficiencyand stability.

Supply ChainCommunication andCollaboration

Inadequate Problem Rectification,Recurring Risks.

Rectification Closed-loop Records,Grade Adjustment Mechanism.Driving Risk Rectification and OptimizationImplementing rectification tracking forsuppliers to be improved; taking measuresof downgrade, suspension, or eliminationfor suppliers with inadequate rectification.

Risk Rectificationand Optimization

｜ Acting for Good, Building a Harmonious Society ｜｜ Acting for Good, Building a Harmonious Society ｜Deepening Harmonious Community Development

Deepening strategic cooperationThe Company proactively engages with external stakeholders including local governments, industry partners, universities, andresearch institutions, and continues to deepen government–enterprise collaboration, industry–academia–research integration, andindustrial chain cooperation to jointly promote technological progress and high-quality industry development. While activelyintegrating into local economic development, the Company fully leverages both internal and external resource advantages toachieve mutual benefit and win-win outcomes, and continues to contribute the strength of China Resources Chemical Materials toregional economic and social development and the green transformation of the industry.

Promoting industry development

The Company continues to deepen exchanges and cooperation with new materials enterprises, while strengthening systematicresearch and forward-looking planning across the new materials industry chain. Leveraging the diverse application-scenarioresources of China Resources Group, it works in close coordination with CRB, CR Double-Crane, CR Pharmaceutical Business,NIGALE and CR Beverage to further identify high-quality new materials project opportunities and promote industrial synergy andvalue co-creation.

Deepening university–enterprise cooperation and jointlypursue innovation-driven development

Company leadership led delegations to China Plastics ProcessingIndustry Association, Jiangnan University, Hunan University ofTechnology, and other higher education institutions for discus-sion and exchange, with a view to advancing university–enter-prise cooperation and joint R&D. The parties jointly explored theapplications and development trends of packaging materials inthe food, pharmaceutical, and cosmetics industries, while activelyseeking potential collaboration opportunities in the packagingmaterials field.

Leveraging association resources to enhance industryinfluence

The Company actively integrates into the industry ecosystem bybecoming a member of the China Pharmaceutical PackagingAssociation, participating deeply in the formulation of industrystandards and policy discussions, and closely following developmenttrends in the pharmaceutical packaging sector. At the same time,the Company was recognized as one of the “Top 100 PackagingEnterprises” by the China Packaging Federation, demonstratingits overall strength and brand position in the packaging industryand continuously enhancing its industry influence and voice.

On April 15, 2025, the 37th China International Exhibition on Plastics and Rubber Industries (CHINAPLAS 2025) opened at ShenzhenWorld Exhibition & Convention Center (Bao’an). As a leading enterprise in the polyester materials sector, China Resources ChemicalMaterials participated in the exhibition with its core products, showcasing innovative achievements under the theme of “Harnessingthe Power of Technology to Shape a Better Life.”

Participated in the 37th International Exhibition on Plastics andRubber Industries and deepened customer collaboration

On July 14, 2025, China Resources Chemical Materials, together with China Resources Pharmaceutical, participated in the 12thWorld Congress of Chemical Engineering (WCCE12 & APCChE2025). Under the theme of “Biochemical Technology for a HealthierFuture,” the two companies showcased the innovative applications of core products such as differentiated PET and PETG in thefields of medical devices and medical packaging. They also further deepened integrated cooperation between the chemical andpharmaceutical industries, jointly advancing the development of high-purity, high-performance polyester materials and contributing“China Resources strength” to the coordinated development of the global chemical and pharmaceutical industries.

Participated in the 12th World Congress of Chemical Engineering anddeepened industrial collaboration

The Company actively participates in professionalexchange activities such as international plasticsand rubber industry exhibitions, the Nylon IndustryDevelopment Summit Forum, and the SpecialEngineering Plastics Industry Summit, whilestrengthening communication and interaction withprofessional institutions in fields including nylon,film materials, semiconductor materials, andpharmaceutical materials. By continuously trackingindustry development trends and cutting-edge technological directions, the Company lays a solid foundation for extending theindustrial chain and advancing a diversified business layout.

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｜ Acting for Good, Building a Harmonious Society ｜｜ Acting for Good, Building a Harmonious Society ｜

From November 5 to 10, 2025, China Resources Chemical Materials participated in the 8th China International Import Expo, whereit signed procurement agreements with three internationally renowned chemical companies to ensure the stable supply of key rawmaterials and strengthen industrial chain collaboration. Meanwhile, at the “Buyer’s Corridor,” the Company showcased its R&Dachievements in advanced polymer materials, as well as its achievements in green and low-carbon innovation, through a combina-tion of physical exhibits and graphic displays, attracting many international partners to stop by and engage in discussion.

Participated in the 8th China International Import Expo andsigned multiple procurement agreements

Contributing to rural revitalization

The Company actively responds to the national strategy for rural revitalization, proactively integrates into the Group’s rural revital-ization framework, and continues to deepen designated assistance and cooperative development efforts to support improvementsin rural infrastructure and industrial development.Supporting the development of Hope Towns. During the reporting period, the Company continued to assign young keyemployees to Yimeng China Resources Hope Town to participate in township construction, thereby contributing the strength ofChina Resources Chemical Materials to rural revitalization and common prosperity.Deepening consumption-based assistance initiatives. The Company actively participated in the 2025 “Central SOEs SpringFestival Consumption Assistance Campaign,” purchasing RMB 102,200 worth of agricultural support products, including RMB44,600 of agricultural products from Guangchang County, Fuzhou City, Jiangxi Province, a county assisted by China ResourcesGroup. It also participated in the joint consumption assistance initiative “Pooling Strength to Enrich the People and Boost Agricul-ture” organized by China Resources Group, China National Nuclear Corporation, and COMAC. During the fourth “Central SOEs SpringFestival Consumption Assistance Campaign,” the Company made cumulative purchases of RMB 319,200, including RMB 129,000of products from Haiyuan County, Ningxia, a county assisted by China Resources Group, and RMB 190,200 of agricultural productsfrom Pingshan County, Shijiazhuang City, Hebei Province, a county assisted by other central enterprises and national ministries.

Carrying out industrial assistance cooperation. Since 2021, the Company has provided industrial assistance to GuangchangCounty Changsheng New Materials Co., Ltd. in Fuzhou City, Jiangxi Province, supporting the company’s development through rawmaterial supply assurance, technical support, and joint Party-building initiatives.During the reporting period, the Company helped Guangchang County Changsheng New Materials Co., Ltd. reduce raw materialprocurement costs by approximately RMB 120,000.

Fulfilling social responsibilities

The Company consistently upholds a social responsibility philosophy of “people-oriented development and acting for the greatergood,” closely linking corporate development with social well-being. It actively engages in public welfare and charitable initiatives,giving back to society, serving communities, and caring for employees through concrete actions. From red education to urbanculture, and from voluntary blood donation to education assistance, the Company measures responsibility through action andconveys warmth through dedication, striving to become a corporate citizen with compassion, accountability, and a strong sense ofsocial commitment, while joining hands with all sectors of society to build a better future.

Public Welfare Education Support to Deliver WarmthThe “A Marathon for a Bag of Milk” charity event

In May 2025, the Company organized a team of 56employees to participate in Changzhou’s 12th “AMarathon for a Bag of Milk” charity event. Despitetemperatures reaching 32°C, they completed a26-kilometer walking challenge to raise funds for milkdonations to children in need. Since 2020, theCompany has participated in this event for six consec-utive years, and in 2025 it was awarded the honoraryplaque of “Caring Organization.”

Red Education for Soul-building and EmpowermentCarrying Forward the Spirit of Resistance and Strengthening the Enterprisein Service of the NationIn August 2025, the Changzhou Base organized 80 Party members, officials, andfrontline employees over three consecutive days to watch the film Dead to Rights.Through the film, they revisited the history of the 1937 Nanjing Massacre, drew inspira-tion from the fighting spirit of the forebears, and transformed their patriotism andaspiration to build a strong nation into concrete actions to advance the Company’sreform and development.Remembering History, Strengthening Conviction, Carrying Forward theLegacy, and Courageously Shouldering ResponsibilityIn September 2025, the Company organized more than 90 employees at its ChangzhouBase to watch the film Evil Unbound, in order to further study and implement theguiding principles of President Xi Jinping’s speech at the conference commemoratingthe 80th anniversary of the victory of the Chinese People’s War of Resistance AgainstJapanese Aggression and the World Anti-Fascist War, draw lessons from history, andfoster a deep sense of patriotism and devotion to the nation.

Voluntary Blood Donation to Safeguard Life

Charity Blood Donation Activity in Changzhou

In March 2025, the Company organized employees to visit the Changzhou Central BloodStation to participate in the public welfare blood donation campaign themed “DonateBlood in Youth, Volunteer for the Future.” Party members took the lead and employeesresponded actively, taking practical action to help sustain lives.“Little Green Orange” Volunteer Blood Donation Campaign

In September 2025, the Company organized 48 “Little Green Orange” volunteers toparticipate in a public welfare blood donation campaign.Voluntary Blood Donation Activity at the Zhuhai BaseIn September 2025, the Zhuhai Base organized eight employees to participate in thethird voluntary blood donation campaign of China Resources Group, themed “DonateBlood in Youth, Volunteer for the Future,” helping carry life forward with their blooddonation.

｜ Pursuing Thriving Governance, Advancing Together toward a Sustainable Future ｜｜ Pursuing Thriving Governance, Advancing Together toward a Sustainable Future ｜

China Resources Chemical Materials consistently upholds high-qualitydevelopment as its strategic guiding principle, systematically advanc-ing key tasks including standardized governance, deepened reform,core business enhancement, and technological innovation. By contin-uously optimizing its governance structure and efficient operatingmechanisms, the Company steadily strengthens its risk preventionand control capabilities and decision-making standards, comprehen-sively enhances its corporate governance capacity and modernizationof governance, and lays a solid foundation for its sound and sustain-able development.

Held 4 shareholders’ meetingsHeld 9 Board meetingsOverall completion rate of state-owned enterprise reform tasks: 100%Zero incidents of commercial bribery and corruptionFull employee coverage of anti-corruption trainingUN SDGs

Key Indicators

Pursuing Thriving Governance,Advancing Together toward aSustainable Future

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Optimizing the structure of the Board of Directors and its specialized committees.

The Company strictly complies with laws, regulations, and regulatory requirements relating to information disclosure, and adheresto the principles of truthfulness, accuracy, completeness, timeliness, and fairness. It coordinates the preparation and disclosure ofperiodic reports, ad hoc announcements, and other documents, and fully and promptly discloses its operating conditions andprogress on major matters to investors, thereby effectively safeguarding the right of all stakeholders to be informed.

Standardizing the management of inside information.

Standardizing corporate governance

Strengthening investor relations

Number of MeetingsMatters ConsideredGovernance Body

Party Committee

Considered and reviewed 389 matters of various types, including 36major operational and management matters subject to prior review

2 meetings of the Strategy and Sustainability Committee, 2 meetingsConsidered 14 resolution itemsConsidered 21 resolution itemsConsidered 46 resolution itemsConsidered 114 agenda itemsConsidered 64 agenda items

Chairman’s Special MeetingGeneral Manager’s Office MeetingBoard of SupervisorsShareholders’ MeetingBoard Specialized Committees

Board of Directors

The Company regularly monitors and analyzes changes in its shareholder base and responds promptly to investor inquiries. In????, it provided responses to a total of ??? investor questions on the Shenzhen Stock Exchange’s Interactive Easy platform. Thereplies were targeted and professional, e?ectively addressing investor concerns relating to business operations, ?nancialperformance, and other relevant matters. The Company also introduced more diverse forms of investor engagement by invitinginvestors and industry analysts to participate in interviews and site visits, and by conducting interactive exchanges through bothonline and o?ine channels. In addition, it held the ???? Annual Results Brie?ng to communicate clearly to the market theCompany’s performance highlights, industry insights, and strategic plans, thereby strengthening investor con?dence.Investor Relationship (IR) Management

The Company maintains regular communication with industry analysts to share updates on its business operations and industrydevelopments, helping analysts gain an accurate understanding of the Company’s development trajectory and promotingdeeper research and understanding of the Company in the capital market. Through ?nancial public relations introductions,performance brie?ngs, and active reception of research visits, the Company continues to expand its network of new securities?rms and analysts, while continuously improving and enriching its chemical industry analyst contact directory.Analyst Relationship (AR) Management

Adhering to the principles of proactive communication and active relationship maintenance, the Company maintains soundcooperative relationships in its daily operations with government authorities, the Jiangsu Bureau of the China SecuritiesRegulatory Commission, the Shenzhen Stock Exchange, China Securities Depository and Clearing Corporation Limited, listedcompany associations, the media, and other listed companies, thereby creating a favorable external environment for its businessoperations and development. At the same time, it e?ciently prepares and submits various reports and documents required byregulatory authorities and intermediary institutions, ensuring smooth coordination with external organizations.Regulator Relationship(RR) Management

｜ Pursuing Thriving Governance, Advancing Together toward a Sustainable Future ｜｜ Pursuing Thriving Governance, Advancing Together toward a Sustainable Future ｜

Enhancing the effectiveness ofcorporate governance

The Company continues to improve its modern corporate governance system and advance the deep integration of Party leader-ship with corporate governance. It has further strengthened its governance structure composed of the shareholders’ meeting,the Board of Directors, the Board of Supervisors, and senior management, while continuously optimizing the division of powersand responsibilities among governance bodies to ensure aligned authority and accountability, coordinated operation, and effi-cient functioning.With its Articles of Association as the foundation, governance rules as the key, and internal policies as the basis, the Companycontinues to enhance its governance system, regularly conducts evaluations of Board operations, and improves the standardiza-tion and effectiveness of Board performance. At the same time, it actively participates in the development of the CR Group’sdirector talent pool, standardizes director appointment procedures, strengthens support for director performance, and continu-ously improves governance effectiveness.During the reporting period, the operation of the Company’s governance bodies was as follows:

During the reporting period, the Company’s Board of Directors includedthreeindependent directors, accounting for one-third ofthe Board, in compliance with the relevant requirements of the Company Law of the People’s Republic of China and the Code ofCorporate Governance for Listed Companies. The Board members possess professional backgrounds in accounting, finance,economics, chemical engineering, and other fields, as well as extensive industry experience, providing strong support for theCompany’s strategic decision-making and sound operations.The Board has established four specialized committees: the Audit Committee, the Strategy and Sustainability Committee, the Nomi-nation Committee, and the Remuneration and Appraisal Committee. These committees have clearly defined responsibilities andoperate in a standardized manner. Among them, the Audit Committee and the Remuneration and Appraisal Committee arecomposed primarily of external directors, effectively strengthening the independence and professionalism of oversight and enhanc-ing the standard of corporate governance and the quality of decision-making.The Company has established a management mechanism for insiders, standardized the process for external information reporting,and strengthened public opinion monitoring and risk control to promptly grasp market feedback and industry trends, therebycontinuously fostering a transparent and prudent image in the capital market.During the reporting period, the Company released a total of

disclosure documents; successfully received one on-site visitand survey by regulatory authorities; actively participated in four online and offline professional training and exchange activitiesorganized by regulatory authorities and relevant platforms; completed more than

feedback submissions on survey question-naires and special tasks assigned by regulatory authorities; disclosed records of five investor communication activities; and estab-lished communication channels with a cumulative total of

securities firms, investment institutions, and other stakeholders,while also creating a chemical industry analyst contact directory covering a total of

contacts.

Strengthening information disclosure

In accordance with relevant laws and regulations, the Company has formulated the Investor Relations Management Policy andimproved its “4R” relationship management system covering investors, media, analysts, and regulators. During the reporting period,the Company regularly carried out activities such as results briefings, investor reception days, institutional research visits, andconference calls through a combination of online and offline channels, while also actively participating in regional collectiveinvestor reception events and large-scale investment strategy conferences. The Company has established a dedicated investorhotline and relies on the Shenzhen Stock Exchange’s Interactive Easy platform to respond promptly to investor concerns, therebyeffectively safeguarding the legitimate rights and interests of investors.

Deepening investor communication

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The Company’s Party Committee adheres to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its guidingprinciple, thoroughly implements the overall requirements for Party building in the new era, and closely aligns its efforts with the “Six Refine-ments Strategy” and key tasks. Centered on the main line of “precise theoretical guidance, education-based team strengthening,spirit-centered cultural cultivation, and practice-based effectiveness testing”, it has established an ideological and political work systemthat promotes the effective implementation of Party building at the grassroots level and its deep integration into frontline business opera-tions.Explore the establishment of a “thematic research + action learning” working mechanism, under which members of the Party committeeleadership team take the lead in carrying out targeted research at the grassroots level to advance strategy implementation. In 2025, sixresearch projects covering key areas such as cost reduction and efficiency improvement, technological innovation, organizational restructur-ing, safety, and environmental protection were promoted and implemented. The“Chemical Materials Development Forum” was carriedout to build a mechanism of“discussion – collection – transformation – incentive”, fostering a strong atmosphere for lean improvement.The“Six Refinements” Management Lecture Series was launched to enhance the capability and initiative for strategic execution through

lectures, case analysis, interactive discussions, and simulation exercises.

Consolidating the foundations at the primary level and strengthen the role ofgrassroots Party organizations as strongholds for action

In step with business development, the setup of grassroots Party organizations is dynamically optimized, leadership teams are carefullyselected and strengthened, and full coverage of Party organizations and Party work is achieved. The requirements of “dual cultivation andone delivery” are implemented, strict quality control is maintained in Party member development, and capacity-building training is carriedout for Party branch secretaries and Party affairs personnel. Full implementation of the systems for the “Three Meetings and One Class,”themed Party Day activities, and organizational life meetings is ensured, while closed-loop management of organizational activities through“planning–filing–documentation” is promoted to enhance the standardization and effectiveness of grassroots work.

Strengthening the integration of Party building with business operations to supportproduction and operational performance

Party branch secretaries take the lead in tackling key challenges through the implementation of the “Secretary Project.” The annual Party-buildingresponsibility agreement sets out tailored targets, and Party branch secretaries give full play to the “lead goose effect” by taking the lead in addressingdifficult issues that constrain development. Party members are encouraged to strive for excellence through the establishment of a “post-area-team”excellence framework, including Party member demonstration posts, Party member responsibility areas, and Party member vanguard teams. TheParty-building themed campaign of “Strengthening Reform and Achieving Targets” is carried out in depth, with specific tasks further refined andbroken down, supported by a performance tracking and effectiveness evaluation mechanism featuring monthly follow-up and quarterly reporting. Witha focus on cultivating a team of Party affairs personnel who “understand Party building, understand business, and understand management; canspeak, can write, and can deliver; and demonstrate strong political competence, professional capability, and work discipline,” efforts are being madeto explore and establish a “Five-Type Secretary” development framework featuring leadership-oriented, problem-solving, service-oriented, innova-tion-driven, and integrity-focused secretaries.

Strengthening benchmark leadership and stimulating the momentum for strivingfor excellenceThe Company deepens the education and management of Party members and gives full play to their vanguard and exemplary role. It carries out the“Firm in Original Aspiration, Advancing with Run Material” political birthday activities for Party members, using the “Five Initiatives” to awaken theiroriginal aspiration for joining the Party and strengthen Party consciousness; organizes the “Party Emblem Shines, Posts Shine” activity for Partymembers to display their identity, inspiring their awareness to take the lead and set an example; launches the “Pioneers Taking the Lead, Tackling

Challenges on the Front Line” commitment-fulfillment activities, encouraging Party members to charge ahead, conduct research, and take action onthe front line; and conducts the “Run Material Pioneers Leading the Way and Making Contributions” campaign for Party members to strive forexcellence, selecting model Communist Party members on a quarterly basis, identifying advanced Party member role models across different periodsand levels, commending and publicizing them, and promoting Party members to play a demonstrative and leading role in production and businessoperations, thereby making their vanguard and exemplary role concrete and visible.

Building Party-building brands and creating distinctive identities

The Company’s Party Committee has established the core Party-building brand “RUN CAI”, exploring the implementation of the “Five Leadership”initiatives of banner leadership, fortress leadership, leading by example, pioneer leadership, and development leadership. Highlighting the characteris-tics of each base, the Changzhou base has created the sub-brand “RUN YOU CAI”, while the Zhuhai base has established the sub-brand “RUN XINGCAI”. At the same time, by promoting coordination among mass organizations, the Company has also developed the labor union brand “RUN JIANGCAI” and the youth league brand “RUN QING CAI”, forming a “1+N” Party, labor union, and youth league brand system that resonates together andworks in synergy.

Ensuring full and rigorous Party self-governance

Reinvigorated and united for breakthroughs

the “Chemical MaterialsDevelopment Forum”

Cost-E?ciency Pioneer Team

the Lean Production

Exchange Seminar

o?ine interactive discussion

the themed Party Day activity on “EnhancingCon?dentiality Awareness and StrengtheningInformation Security Safeguards”

the meeting for collective interviews with

prospective Party members

the themed Party Day activity on “Protecting theYangtze River Environment and Building a Better

Home Together”

commend Advanced Primary-Level Party

Organizations

the July ? Themed Party Day Activity

the seminar on the special initiative to strengthen

the inheritance of red genes

Lead Geese Take Charge at the Forefront

“1+N”Party

｜ Pursuing Thriving Governance, Advancing Together toward a Sustainable Future ｜｜ Pursuing Thriving Governance, Advancing Together toward a Sustainable Future ｜

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Strengthening organizational support.

Following organizational restructuring, the Company continued to optimize the composition of the “Reform Deepening and Enhancement InitiativeLeading Group” and the “Promotion Working Group”, covering 12 departments, business units, and affiliated institutions. Functional lines coordinateand collaborate to ensure that reform responsibilities are implemented at every level.

Compliance complaint and whistleblowing handling mechanismThe Company has established a standardized, transparent, and confidential mechanism for handling compliance complaints and whistleblowing,forming a seven-step closed-loop management process of “centralized acceptance, classified preliminary verification, joint investigation, timelyfeedback, rectification supervision, standardized filing, and continuous improvement”. The mechanism is coordinated and managed by the Legal andCompliance Department and strictly implements a five-working-day time limit for acceptance. The Company’s supervisory department is specificallyresponsible for handling such matters and establishes dedicated working groups. Through nine detailed procedures including analysis and assess-ment, classified handling, coordinated investigation, and follow-up on effectiveness, the Company ensures that every report receives a response andevery issue is properly addressed, while maintaining strict confidentiality throughout the process and preventing retaliation, thereby promoting contin-uous improvement in institutional optimization and risk prevention and control.

Advancing reform implementation.

In December 2025, the Company convened a special meeting on the “Double Hundred Action” and the Reform Deepening and Enhancement Initiative,conveying the spirit of higher-level meetings, publicizing the assessment and diagnostic evaluation report, and focusing on optimizing assessmentindicators to enhance the effectiveness of reforms.

Leveraging demonstration effects.The Company achieved an “Excellent” rating in the Double Hundred assessment for both 2022 and 2023. It actively leveraged the demonstration andleading role of the Double Hundred Special Project, using the reform deepening and enhancement initiative as a key driver to improve the qualityand efficiency of business development, and contributing the experience of Chemical Materials to the reform of state-owned enterprises in theindustry through benchmark practices.Completing reform tasks.

Building a value creation and strategic management system and comprehensivelypromoting benchmarking against world-class management

The Company’s reform work ledger focuses on

major reform themes, comprising a total of

reform tasks. It undertakes80%of thetasks in the Group’s reform ledger and has added20%self-selected tasks, achieving an overall completion rate of100%.

Implementing the requirements of the State-owned Assets Supervision and Administration Commission of the State Council andadvancing the reform deepening and enhancement initiative.

The Company continues to deepen its benchmarking initiative against world-class management standards, focusing on coordinatedadvancement along two main lines: value creation and operational excellence.In terms of value creation, the Company further optimized its value creation indicator system and established a quarterly trackingmechanism to ensure dynamic control of indicators. At the same time, it aligned the analytical outcomes of the indicator systemwith the preliminary research for the 15th Five-Year Plan strategy, providing support for development over the next five years. TheCompany convened multiple working group meetings to continuously refine working approaches and formulated a value creationtask list, clearly defining the responsible units and expected outcomes for each indicator. In addition, through internal and externalbenchmarking research, it studied and drew on the experiences of advanced enterprises to promote continuous managementimprovement.In terms of operational excellence and digital develop-ment, the Company initially established an operationalexcellence indicator system and accelerated the devel-opment of an integrated digital platform. The platformwas officially launched in September 2025, covering fivekey areas: procurement, marketing, production, opera-tions, and finance. Cross-departmental data sharingefficiency increased by80%, and

data analysisindicators were integrated, with more than82%ofcore indicators automatically collected and analyzed.Management can monitor operational dynamics throughdata dashboards, providing data support for strategicdecision-making and shortening the decision responsecycle by40%.

Deepening State-Owned Enterprise Reform

Strengthening Integrity Safeguards

The Company strictly complies with laws and regulations on anti-commercial bribery, strictly prohibits any form of bribery, corrup-tion, and improper transfer of benefits, and requires all employees and partners to jointly uphold an honest and clean businessenvironment. To effectively prevent and combat corruption, the Company has established a rigorous integrity risk prevention andcontrol mechanism. Through annual risk assessments and quarterly monitoring, it continuously evaluates the risks of commercialbribery and corruption, and requires employees and key partners to sign the Integrity and Compliance Commitment Letter tostrengthen awareness of integrity in professional conduct.

Upholding Business Compliance Principles

Seven-Step Closed-Loop Management Process

Centralized IntakeTriage & Preliminary ReviewJoint InvestigationTimely FeedbackRemediation Tracking

PhaseCore Content

StepCore Content

Dedicated email submission; 5-day acknowledgmentInitial verification for case meritLegal & Compliance-led, cross-functional if neededResults reported to complainant post-investigationCorrective plans with monitored implementation

Nine-Step Detailed Handling Procedure

Complaint ReceiptAnalysis & AssessmentCategorized ProcessingInvestigationDecision FormulationRectification Tracking

Confidential DocumentationFull confidentiality; case files archived

Case FilingContinuous Enhancement

/Establish handling task forceBased on jurisdiction, nature, severity, verification feasibilityPreliminary verification by investigation teamApproval and execution per procedureTimely response to complainant with ongoing communicationDevelop and implement corrective planFull confidentiality; standardized archivingAnalysis and systemic improvement

Result Feedback

Continuous ImprovementTrend analysis for systemic risk prevention

｜ Pursuing Thriving Governance, Advancing Together toward a Sustainable Future ｜｜ Pursuing Thriving Governance, Advancing Together toward a Sustainable Future ｜

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Improving the institutional system and preventing related risksThe Company implements the China Resources Group Measures for Anti-Monopoly and Anti-Unfair Competition Management and the Code ofConduct for Employee Compliance, clearly prohibiting illegal acts such as price manipulation, bid rigging, infringement of trade secrets, and exchangeof sensitive information. In investment and merger and acquisition activities, the Company strictly complies with merger control filing requirementsand strictly prohibits “gun-jumping” transactions prior to approval. At the same time, by formulating systems such as the Measures for Trade NameManagement and the Measures for Trade Secret Management, the Company strengthens the protection of its intangible assets and prevents unfaircompetition from harming the Company’s interests.

Strengthening the foundation of compliance managementIn light of its business characteristics, the Company formulated and issued the Detailed Rules for Compliance Management and the Detailed Rulesfor Overseas Anti-Commercial Bribery Compliance Management, further improving the compliance management framework, strengthening anti-com-mercial bribery risk prevention and control in overseas business, and providing clear institutional guidance for the integrity and compliant operationof overseas business.

Improving business management systemsThe Company has established a hierarchical and categorized institutional management system to ensure that all business management activities aregoverned by clear rules and well-founded procedures.

Strengthening compliance to reinforce the defense line.

The Company adheres to the concept of “compliance by all employees” and promotes the transformation of compliance awareness into “consciousbehavior” through multi-level and diversified training and communication.During the reporting period, the Company achieved full compliance education coverage for personnel in key positions in areas such as anti-commer-cial bribery and fair competition.

Strictly protecting the information security of whistleblowers

The Company attaches great importance to the protection of whistleblowers, establishes and improves whistleblower protection mechanisms, andensures smooth reporting channels through letters, visits, phone calls, and online platforms to promptly accept reports and accusations. It strictlyimplements confidentiality requirements, manages whistleblower information and report contents as confidential documents, and strictly prohibits anyform of retaliation, ensuring that whistleblowers are not subjected to unfair treatment as a result of their reporting.

During the reporting period, the Company did not experience any incidents of unfair competition.

The Company strictly complies with laws and regulations such as the Anti-Monopoly Law of the People’s Republic of China andthe Anti-Unfair Competition Law of the People’s Republic of China, firmly prohibits monopolistic conduct and unfair competition,and is committed to maintaining a fair and equitable market competition environment.

Emaillianjie@crcchem.com

Tel0519-85778288

Safeguarding Fair Competition

The Company has established a compliance management system centered on “Party Committee leadership, Board supervision, management account-ability, departmental coordination, and full employee participation”, deeply integrating compliance requirements into key business processes such asprocurement, sales, and investment, and promoting the transformation of compliance management toward ex ante prevention and whole-process control.Improving the Compliance System

InitiativeContent & Results

“Three Lists” Management MechanismEnhancing Code of Business Conduct SignaturesImproving Fair Competition ComplianceEnd-to-End Compliance Policy NetworkStrengthening Compliance Data Reporting

Tiered & Categorized Policy Framework

Established “Level-1 Policies—Level-2 Measures—Level-3 Rules” architecture forsystematic compliance managementImplemented routine signing mechanism ensuring full coverage; strengthenedemployee compliance awarenessEnhanced identification, assessment, and control of fair competition risksGradually built comprehensive compliance system covering domestic and internationaloperations across all processes

Mapped 45 compliance obligations and 10 focus areas; developed obligation list,risk list, and review list for standardized compliance processes

Achieved standardized and routine compliance information reporting

The Company organized members of the Party Committee leadership team and directlymanaged cadres to complete the SASAC online integrity education training program,with an average of 20.5 training hours per person, and arranged for them to visit theJiangyin Anti-Corruption and Integrity Warning Education Center to receive work-stylewarning education, thereby enhancing their awareness of voluntarily acceptingsupervision and exercising power in a standardized manner.The Company developed courses such as Fastening the First Button of Life andIntegrity Creates Value, Compliance Safeguards Development, and delivered sixintegrity training sessions and seminars to various categories of employees. It alsoorganized and conducted integrity talks for 78 newly appointed cadres, fostering anatmosphere of care and support for young cadres.

The Company strengthened warning education and case-based analysis, organized 21special warning education meetings across all units and conducted self-examinationsagainst identified issues, and developed warning education materials such as InsatiableGreed Harms Both the Public Interest and Oneself and Stay Away from Greed, UpholdIntegrity and Self-Discipline, and Advance Steadily through Coordinated Fulfillment ofthe Four Responsibilities.The Company issued the Plan for Building the Integrity Culture System and organized itsfirst Integrity Culture Activity Month. It promoted integrity education to penetrate frontlineoperations and key areas, and extended it to employees’ “circles of life” and suppliers. TheCompany organized all employees to sign the Integrity Practice Handbook, clearly settingout the behavioral norms of the “Seven Dos and Seven Don’ts”, and distributed Letters toFamilies on Integrity to leading cadres and personnel in key positions. It also organized itsfirst supplier integrity communication session.

Level-1Policies

Level-3

RulesLevel-2Measures

Frame core business management behaviors withprinciples; serve as top-level design foundation

Detail operational and procedural workflows forimplementation; guarantee on-ground executionDefine management requirements and basicprocedures for specific business matters;ensure executability

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67 CR CHEM-MAT｜2025 Sustainability ReportCR CHEM-MAT｜2025 Sustainability Report 68

The Company attaches great importance to information security and data protection, and integrates cybersecurity, data security, andbusiness continuity management throughout the entire process of digital operations. By improving institutional systems, strengtheningtechnical protection, enhancing risk monitoring and emergency response, and supporting these efforts with company-wide training andcommunication, the Company continuously enhances its information security prevention and control capabilities, fully safeguards the stableoperation of its production and business systems, and protects the information security of customers and partners.

Ensuring Information Security

The Company strictly implemented the relevant policy requirements set out in the Opinions of the Central Committee of the CommunistParty of China and the State Council on Promoting the Development and Growth of the Private Economy, the Opinions on Resolving theIssue of Overdue Payments Owed to Enterprises, and the Special Action Plan for Clearing Overdue Payments Owed to Enterprises,standardized payment practices, and made full and timely payments to small and medium-sized enterprises. During the reporting period,no overdue payments occurred.

Standardizing Payment Practices

Training Data

Average training hoursper employeeBoard members inspecialized training

Compliance officerscertified

Employees receivinganti-corruption training

Management personnel inspecialized training

Average training hoursper board member

1，079

hours

hours

The Company has continuously improved its comprehensive risk management system, established a closed-loop management mechanismof “identification–assessment–monitoring–warning–response–review”, and embedded risk management throughout the entire process ofstrategic planning, annual business planning, and major decision-making. During the reporting period, focusing on key areas such as marketfluctuations, fund security, environmental emissions, hedging, and supply chain stability, the Company established a risk monitoring indica-tor system combining quantitative and qualitative indicators, implemented a quarterly dynamic monitoring mechanism, and promoted theshift of risk management from ex post response to ex ante prevention.The Company organizes major risk assessments every year, adopting a combination of a “bottom-up, layered and graded” approach anda “top-down approach from the shareholder perspective” to systematically review risk matters, update the risk database, identifymajor and important risks, and formulate special control measures for key risks. Through risk indicator warnings, reporting through the riskinformation system, and a closed-loop rectification mechanism, the Company continuously improves the accuracy of risk identification andthe timeliness of response, providing strong support for the Company’s business decision-making.

Comprehensive Risk Prevention and ControlBuilding Barriers Against Operational Risks

Risk Prevention and Control Organizational Structure

The Company convened a warning education meetingThe Company carried out integrity-themed training

Themed warning education activity on “Deepening the Study andEducation of the Spirit of the Central Eight-Point Rules andForging a Strong Work Style among Party Members and Cadres”

2025 Conference on Improving Party Conduct,Upholding Integrity, Combating Corruption, and

Advancing “Comprehensive Oversight” Work

First Line

Second Line

Third Line

All departments, business units, and directly affiliated institutions

Compliance and Risk Control Team, Legal Compliance and AuditDepartment

Conduct risk prevention and control; specifically address major risks inproduction safety and environmental protectionOrganize, coordinate, and promote implementation of risk control work;report progress and issues to the Law-based Enterprise Management,Risk Control and Compliance Management Committee

Audit & Supervision Team, Legal Compliance and Audit Department

Organize, coordinate, and promote implementation of risk control work;report progress and issues to the Law-based Enterprise Management,Risk Control and Compliance Management CommitteeConduct gap analysis and quality assurance on risk control work

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2025

The Company has established a major operational risk indicator system and formulated 57 quantitative and qualitative early warning indica-tors covering key areas such as environmental emissions, fund security, and hedging, enabling real-time risk monitoring and thresh-old-based early warning. It has also established a quarterly dynamic risk monitoring mechanism to update risk status on an ongoing basisand ensure the timely reporting of risk information.During the reporting period, the Company identified and assessed a total of 832risks, updated

categories in its risk database, andformulated monitoring indicators and control measures for

major and important risks, continuously enhancing its capabilities in riskanticipation and forward-looking management.

Strengthening Comprehensive Risk Management

The Company takes institutional development as the foundation and process control as the key lever, continuously optimizing its operationalmanagement system and promoting standardized institutional implementation and regulated business management. Focusing on key areassuch as procurement, sales, investment, funds, contracts, and asset management, the Company has established a hierarchical institutionalsystem and approval mechanisms for key control points, strengthened prior review and process supervision, and ensured that all businessactivities are carried out in accordance with laws and regulations.

Strengthening Operational Management

Strengthening industrial risk management

The Company actively integrates into coordinated industrial chaindevelopment and explores new models for combining industry andfinance by deepening cooperation with financial institutions andindustry partners, injecting new momentum into high-quality industrydevelopment. In March 2025, the Company was recognized as acooperative partner of the Zhengzhou Commodity Exchange’sindustry-finance integration base. In May of the same year, the Zheng-zhou Commodity Exchange organized several futures companies andfutures risk management subsidiaries to conduct a special researchvisit to the Company. The parties held discussions on key topicsincluding the development of polyester futures products, the currentstate of the bottle-grade PET chip industry, the use of futuresinstruments by upstream and downstream players across the industrialchain, and industrial risk management, with a view to promoting therole of futures instruments in serving the real economy and helpingenterprises enhance their capabilities in cost control and marketresponse.

Strengthening operational safeguards

In key business areas, the Company has strengthened supplier admission review and contract review mechanisms, promoted the integration ofcompliance checklists into business processes, improved customer credit management and payment collection tracking mechanisms, and reinforcedfund risk prevention and control. Through internal audits and special inspections, it has promoted the closed-loop rectification of identified issues. Atthe same time, the Company continues to give full play to the supervisory functions of the Board of Directors and its specialized committees,strengthens the review of major matters and risk control, and has formed an operational management framework that combines institutionalsafeguards, process control, and coordinated supervision.

Standardizing tax managementThe Company continues to improve its tax management system, consolidate its management foundation, strengthen risk prevention and control,standardize business guidelines, and respond systematically to inspections, effectively reducing tax risks and costs and providing strong support forthe Company’s business operations and development.

Improving due diligenceThe Company refined its due diligence management system andestablished an internally and externally coordinated due diligencemechanism to conduct comprehensive investigations into strategy,finance, legal affairs, EHS, and other aspects, thereby comprehen-sively assessing corporate value and risks.

Strengthening the taxmanagement foundation

Strengthening taxrisk management

Providing standardized guidance

for major business activities

Systematically carrying outresponses to major tax risks

In line with the overall requirements of “centralized coordination, professional guidance, dynamic tracking,regular communication, and closed-loop management,” the Company has established a full-process closed-looptax risk management mechanism covering receipt, analysis, response, and feedback. It has also developed athree-in-one tax risk management model that integrates routine basic tax assessments, internal risk evaluation,and responses to major tax risks. Issues identified through inspections are deeply incorporated into the annualreview of basic tax assessments and internal risk evaluation, enabling effective linkage among risk identification,assessment, and rectification. By leveraging the coordinating and professional oversight role of dedicated taskforces and adhering to the deep integration of business, finance, and tax functions, the Company effectivelyreduces both tax risks and tax costs.Provide guidance for the Company’s downsizing initiatives and the establishment of new entities.Key measures included offering full-process guidance on liquidation procedures to ensureefficient tax clearance, as well as participating deeply in and guiding the optimization analysis offunctions at the Company’s production bases and headquarters.

Provide guidance for the Company’s downsizing initiatives and the establishment of new entities.Key measures included offering full-process guidance on liquidation procedures to ensureefficient tax clearance, as well as participating deeply in and guiding the optimization analysis offunctions at the Company’s production bases and headquarters.

Updated the Guidelines for the Super Deduction of R&D Expenses; strengthened the tax-relatedcontrol checklist at the source of business operations in conjunction with the tax manual; andissued the Tax Control Checklist for the Full Business Lifecycle. The Company also optimized itstax burden analysis reporting system, including improving the profit analysis structure, systemati-cally reviewing tax adjustment items, strengthening the management of deferred tax assets andliabilities, implementing new tax policies, and refining response mechanisms.

Updated the Guidelines for the Super Deduction of R&D Expenses; strengthened the tax-relatedcontrol checklist at the source of business operations in conjunction with the tax manual; andissued the Tax Control Checklist for the Full Business Lifecycle. The Company also optimized itstax burden analysis reporting system, including improving the profit analysis structure, systemati-cally reviewing tax adjustment items, strengthening the management of deferred tax assets andliabilities, implementing new tax policies, and refining response mechanisms.

Updated the tax risk inventory and analytical models; carried out tax risk assessments andfollow-up reviews of the basic tax evaluation; strengthened tax credit rating management andachieved significant improvement. During the reporting year, six domestic companies participat-ed in the taxpayer credit rating evaluation, of which four were rated Grade A and two were ratedGrade B. Grade A taxpayers accounted for 67%, representing an increase of two Grade A taxpay-ers compared with the same period last year.

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The R&D organizational system was continuously improved

The Company completed the optimization of the Technology Center’s organizational structure, established four major functionalsegments—science and innovation operations, R&D support, product R&D, and analysis and testing—and implemented a matrix manage-ment model. The original eight functions were integrated and streamlined into five, with non-core functions such as process and productquality improvement and R&D platform management being separated out. This further sharpened the focus on the two core businesses ofnew product development and analysis and testing, broke down platform barriers, strengthened product orientation, and enhanced internalR&D service awareness.

Planning strategic objectives for technological innovationCentered on the strategic plan of “foundation businesses + new materials businesses”, and guided by the strategic positioning of“practicing green upgrading, driving innovative development, and becoming the leading provider of the most competitive material solutionsin the industry”, the Company will strengthen and optimize its polyester materials business and focus on the “four orientations” in thedevelopment of high-end new materials.

Improving the Institutional Management System

The Company formulated and issued the Detailed Rules for the Implementation of R&D Investment Statistics and the Measures for theManagement of Technological Innovation, revised the Measures for the Management of R&D Projects, introduced the “green channel” andthe “open competition mechanism to select the best candidates”, and initially established a whole-process management system coveringtechnological innovation planning, project operation, platform development, and commercialization of achievements. At the same time, itcompleted the review and implementation of the Technology Center’s organizational structure and the “three determinations” plan forstaffing.Upgrading and Optimizing the R&D Information SystemPhase II of the PMS was officially launched in January 2025, achieving a vertical extension from basic R&D process management to the fullchain of “technology development–pilot-scale validation–commercialization of achievements”. Core functions such as strategic emergingproduct management, pilot production management, task cost accumulation, and technical package archiving were added, and systemtesting and functional optimization for both mobile and desktop terminals were completed.

Building the R&D management platformPhase II of the PMS realized the transformation from online process management to data value realization, and strengthened the capabilityto evaluate the input-output efficiency of R&D investment through the cost accumulation function. The Company also carried out systemmaintenance as needed, completed data verification and retesting for the strategic emerging products and project management modules,and organized a communication meeting on issues arising from the use of Phase II to ensure stable operation.

The Company continuously advanced the digitalization of R&D management. Through information system upgrades, integration of testingresources, and full-process digital management of chemicals, it improved the operational efficiency of technological innovation and therefinement level of management.

Strengthening Technology Innovation LeadershipStrengthening Operational Management

Key FocusRecyclable, high-barrier, high-clarity differentiated polyester materials

FrontierR&D

Bio-based materials and high-performance fiber sectorsInnovationModel

External collaboration + internal R&D synergy; accelerate R&D and commercialization

of high-potential new materials; serve national strategic needs through key technology

breakthroughs

MarketExpansion

Enter non-bottle fiber market; explore medical applications

Advancing Digital and Intelligent Transformation

Technology Center

Analysis andTesting Group

Product R&D Group

Science and Innovation

Operations Group

R&D Support Group

Expert Committee

TechnologyInnovation Management

R&D EHSManagementR&D PlatformManagementIndustry Research andMarket DevelopmentProduction ofDifferentiated Products

New ProductDevelopmentProcess and ProductQuality Improvement

IntellectualProperty Management

CoreFunctions

CoreFunctionsScience and InnovationManagementIntellectual Property

Management

Analysis and TestingScience and Innovation

OperationsNew ProductDevelopment

Bridge technology R&D and industrializationtransformation

Task Cost Aggregation

Technical Package Archiving

Strategic New Product Management

Strengthen full lifecycle control ofstrategic new products

Achieve precise R&D investment accounting

and output evaluation

Pilot Trial Production Management

Standardize technical achievementdocumentation and knowledge management

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CoreFunctions

CoreFunctions

75 CR CHEM-MAT｜2025 Sustainability Report

Achieving integrated detection dataThe Company completed the consolidated management of analysis and testing personnel at the Technology Center and the Changzhoubase, and actively advanced physical integration. Daily production services and R&D testing services were differentiated by servicerecipients. Key testing personnel from the base participated in the work of the Technology Center’s testing platform, some equipment wasshared, common reagents were procured jointly, and internal management was integrated and operated steadily.

Optimizing project management mechanisms

Established a precise R&D closed loop of “market-project-production-market”, formed a coordination mechanism among R&D, production,sales, and other departments, and institutionalized it through a series of interdepartmental coordination meetings; established a dynamicledger for projects under research and a weekly meeting mechanism to continuously track project progress.

Upholding research integrityThe Company regards integrity as the foundation of scientific research and strictly adheres to the bottom line of scientific ethics. Beforethe launch of any R&D project, a letter of commitment to integrity must be signed, and the entire process is digitally managed through theR&D information management platform to ensure that experimental data are true and accurate and fully traceable throughout the process.Strengthening EHS control

The Company has established a pre-assessment mechanism for EHS in R&D projects to systematically identify environmental, health, andsafety risks and ensure that R&D activities comply with environmental protection regulations. During the reporting period, the Companycontinuously strengthened the EHS training system and further enhanced researchers’ awareness of safety protection and emergencyresponse capabilities.

Improving the Sci-Tech Innovation Management SystemThe Company optimized its sci-tech innovation management system by actively adopting the Group's technological innovation systems. Itcompleted the revision of the R&D Project Management Measures, clarifying the "green channel" for R&D projects and the operationalmechanism of the project leader accountability system.

Advancing the digitalization of chemical managementThe Company built a material management platform and deeply integrated it with the laboratory management platform, fully covering theentire process of chemical information, including basic information, storage, use, encryption, and disposal. It also formulated the Provisionson R&D Material Management of the Technology Center, clarifying requirements for the use, management, and confidentiality of R&Dmaterials, establishing concurrent material management roles, and enabling real-time data monitoring and intelligent early warning.

During the reporting period, the Company was granted 5 patents and filed 11 patent applications, of which 100% were invention patentapplications.The Company continuously optimized its technology innovation operation and management mechanisms, strengthened whole-life-cycleproject management, promoted the release of pilot-scale production capacity and the development of the testing service platform, andsupported the Company’s high-quality development.

The Company actively expanded internal and external innovation resources, deepened industry-university-research cooperation and internalGroup collaboration, and strengthened standards leadership and intellectual property deployment, providing comprehensive resourcesupport for technological innovation.

…

Building an Innovation Ecosystem

Strengthening standards leadership

Deepening industry-university-research cooperation

Advancing collaborative innovation within the Group

The Company, together with Sichuan University, jointly introduced seven engineering master’s anddoctoral candidates under a co-cultivation program, who entered the Company for practical training inNovember 2025 and signed tripartite agreements; it also signed the Changzhou Laboratory AllianceAgreement with the Yangtze River Delta Carbon Fiber and Composite Materials Technology InnovationCenter, and, as a participating entity, advanced the application for the National Carbon Fiber Innova-tion Center.

The Company worked with China Resources Breweries Co., Ltd to jointly promote the Green High-Bar-rier Beer Packaging Innovation Consortium project, developing lightweight, portable, and environmen-tally friendly plastic beer packaging materials with reduced emissions; it also organized three projects,namely PETG, nylon high-tenacity filament, and PA66 industrial filament chips, to participate in theapplication for exhibition projects of major scientific and technological achievements under ChinaResources Group’s 14th Five-Year Plan.

During the reporting period, the Company led the formulation of one group standard; cumulatively, ithas led or participated in the formulation of three national standards, eleven industry standards, andthree group standards, covering areas such as green design product evaluation and waste plasticbottle recycling and treatment.

Enhancing Science and Innovation Operations

Compliance with Research Ethics

Improving talent development mechanisms

The Company formulated the China Resources Chemical Materials Talent Recruitment Plan, clarifyingdemand in areas such as market technical support, polymer materials, polymerization processes,polymer material modification, engineering design, and scientific research project management.During the reporting period, the Company had 148 R&D personnel, accounting for 13.72% of its totalworkforce.

Strengthening intellectual property management

Strengthening intellectual property management. The Company formulated the Patent ManagementSystem and established a management framework covering the entire patent life cycle, standardizingpatent application, protection, utilization, and rights enforcement, stimulating employees’ enthusiasmfor innovation, and safeguarding the Company’s legitimate rights and interests.

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CR CHEM-MAT｜2025 Sustainability Report 76

｜ Future Prospects ｜｜ Future Prospects ｜

Future Prospects

2026 marks the opening year of the 15th Five-Year Plan period. Inthe face of new circumstances, new tasks, and new challenges, we willremain committed to high-quality development. We will firmly implementthe practical requirements of the “dual cores and one force” approach,continue advancing the “Six Refinements Strategy”, further deepen andsolidify the “Four Reshaping” initiatives, and systematically enhanceour core competitiveness. We will promote the development of smart,green, and service-oriented manufacturing, accelerating the transitiontoward innovation-driven, quality-oriented growth. Upholding the principleof alignment among strategy, organization, and culture, we will build amore scientific and efficient management system and foster an agile,high-performing organization.We will reshape the corporate spirit of passion, perseverance, andentrepreneurship, promote a culture that honors striving and dedication,and, with a practical, grounded, and truth-seeking work style, as well asa sense of urgency and commitment to seize every moment, focus onmaking our business segments more specialized and refined, strengthenthe market competitiveness of distinctive and innovative products, andsecure a strong start for the 15th Five-Year Plan period.

77 CR CHEM-MAT｜2025 Sustainability ReportCR CHEM-MAT｜2025 Sustainability Report 78

Index of IndicatorsFirst-level title

About This

ReportMessagefrom theChairmanAbout ChinaResources ChemicalInnovative Materials

OurSustainability

Journey

Green Cycle,

InfiniteInnovation

Pursing GreenDevelopment fora SharedEcological Future

-P?.?-?.?Article ?? (?)P?-P?-P?.?/P?Company ProfileP3.1, P3.3/P7Governance StructureP3.4/P7

Breaking Through viaCircularity: NavigatingIndustry Cycles withResilience

S2.1.3,E3.3.1Articles 20, 23 (2), 28 and 42 (4)Synergizing Digital & GreenTransitions: LeadingIndustry Upgrades throughBenchmarking

E3.1.5,G1.1.12Article 20

StrengtheningSustainabilityGovernance

G1.1.1-G1.1.2,G1.1.5-G1.1.7,G1.1.11, G1.2.3

Article 11 (1), Article 52EnhancingSustainabilityCapabilities

G1.1.3-G1.1.4,

G1.1.10

/

Materiality AnalysisG1.1.9/

StakeholderCommunication

G1.3.1-G1.3.2Article 53 (1) (2)

Cultural GuidanceP3.2/P8

P9

-P14

P15

-P20

Addressing theChallenges ofClimate Change

E1.1.1-E1.1.9,E1.1.12-E1.1.18

Articles 11 (2) (3) (4), 12 (1), 13,14 (1) (2), 15 (3), 24, 25, 26, 27,

51 and 52

P23

-P28

AdvancingCircular Resource

Utilization

E3.1.1-E3.1.5,E3.2.1-E3.2.2,E3.1.5,E3.3.2

-E3.3.6

Article 34, Article 35 (1) (2) (3),Article 36 (1) (2), Article 37 (1) (2) (3)

P28

-P31

StrengtheningEnvironmental andEcological Foundation

E.2.1.1,E2.3.2-E2.3.3Article 29P31-P33

P34

Strictly Controlling theDischarge of the ThreeWastes and Reducing

Pollution

E2.1.2,E2.2.1,E2.2.3,E2.

2.5-E2.2.6

Article 30 (1) (2) and Article

31 (1)

Acting for Good,

Building aHarmonious

Society

Pursuing Thriving

Governance,

AdvancingTogether toward

a Sustainable

Future

Future Prospects

Appendix

Empowering

EmployeeWell-being and

Development

S4.1.1,E4.1.3-S4.1.12,S4.2.

1-S4.2.6,S4.3.1-S4.3.6

Articles 49, 50 (1), (2) and

(3)

P37-P48

AdvancingCustomer Value

Co-creation

S3.3.1-S3.3.6Article 47 (1) (2) (3) (4)P48-P52

Building aResponsible Supply

Chain Network

S3.1.1-S3.1.4Article 44 and Article 45 (1)P52-P54

Deepening Harmoni-

ous Community

Development

S1.1.1-S1.1.3,S1.2.1-S1.2.2,

S1.2.6

Article 38, Article 39 (1) (2)

(3) and Article 40

P55-P58

Upholding Business

Compliance

Principles

S3.4.1,G2.1.1-G2.1.8，

G2.2.1-G2.2.3

Article 46, Article 48 (2),Article 54, Article 55 (1),

Article 56 (1) (2)

P66-P70

Building BarriersAgainst Operational

Risks

G1.2.2/P70-P72

Index ofindicators

A3Article 57P79-80

Key performanc

A2Article 57P81-P88FeedbackA6/P89-90

StrengtheningTechnology Innovation

Leadership

S2.1.1-S2.1.7,S2.1.9-S2.1.13,S3.4.1-S3.4.2

Articles 41, 42 (1) (2) (3) (4)

and 43 (1) (4)

P73-P76-A1/P77-78

Enhancing theeffectiveness ofcorporate governance

//P61-P65

Secondary title

the General Framework of Guide-lines on Corporate SustainabilityReporting for Chinese Enterprises

(CASS-ESG 6.0)

the Guidelines No.17 for Self-regula-

tion of Listed Companies—Sustainability Reports (Trial) Report

location

Report location

｜ Index of Indicators ｜｜ Index of Indicators ｜

IndicatorsDimension

Corporategovernance

UnitData for 2023Data for 2024Data for 2025Number of Disclosure Reports Issued

Number of board meetings HeldNumber of Board of Supervisors Meetings Held

Number of Strategy and Sustainability

Committee Meetings HeldNumber of Audit Committee Meetings HeldNumber of Nomination Committee Meetings Held

Number of Remuneration andAppraisal Committee Meetings HeldNumber of board membersDisclosure by gender

Male directorsFemale directorsIndependent directorDisclosure by type

Non-independentdirectorDuration of law and compliance training

Number of trainings on compliance

with laws and regulations

Number of Concluded Corruption CasesBrought by Regulatory Authorities againstthe Issuer or Its EmployeesAverage Hours of Anti-bribery and Anti-corrup-

tion Training Received by EmployeesProportion of employees receiving

anti-corruption trainingTotal number of management personnel who

have received anti-commercial bribery and

anti-corruption trainingNumber of directors trained in anti-corruption

Proportion of directors who have received

anti-corruption training

Number of Employees ReceivingAnti-bribery and Anti-corruption Training

reportsmeetingsmeetingsmeetingsmeetingsmeetingsmeetingsPersonsPersonsPersonsPersonsPersons

HoursPerson-times

Cases

HoursPersons

%PersonsPersons

%

4.50

1,809

-

22.22

1,682

55.56

1,079

22.22

Economicindicators

Total assetsOperating income

Total pro?tNet pro?treturn on equityReturn on total assets

Rate of value maintenance and apprecia

tion of state-owned assets

Asset-liability ratioTotal tax payment

52,385,479.84

0.30

8.46

104.95

1,722,498.46

48,136.0037,921.54

5.40

4.64

103.26

31.62

26,874.80

43,126,731.67

0.24

8.86

90.36

1,805,525.40

-61,743.67-57,438.60

-8.30-6.26

91.54

28.38

8,224.80

24,418,789.39

0.19

13.72

83.22

1,306,816.44

-11,490.36-8,616.94

-1.33-1.31

98.99

23.30

6,645.29

Corporate Governance

Average number of hours of training for directors who

received anti-corruption training

Number of Patents HeldNumber of Invention Patent Applications

Number of Invention Patents Granted

Number of Valid PatentsNumber of Copyrights HeldNumber of Registered Trademarks and

Word Marks HeldNumber of Software Copyrights HeldNumber of New Patent Applications Filed

During the YearNumber of New Copyright Applications Filed

During the Year

R&D InvestmentProportion of R & D investment in main

business incomeNumber of R&D PersonnelProportion of R & D personnel to the total

number of employees

Key Performance Indicators

｜ Key Performance Indicators ｜｜ Key Performance Indicators ｜

HoursItemsItemsItemsItemsItemsItemsItemsItemsItemsRMB

%Persons

%RMB 100 million

RMB 10,000RMB 10,000RMB 10,000

%

%

%

%RMB 10,000

IndicatorsDimensionUnitData for 2023Data for 2024Data for 2025

Employeeperformance

Employees

1,8091,413

1,809

1,794

1,633

1,6821,330

1,682

1,667

1,523

16.30

1,079

1,079

1,071

Production personnelSalespersonTechniciansFinancial personnelAdministrative staff

Amount Invested in AssistingEmployees in Financial DifficultyNumber of Households of Employees inFinancial Difficulty Visited and ComfortedAmount Invested in Visits and Comfort forEmployees in Financial DifficultyAmount invested in assistingsick employees

1,363

7.55

0.06

0.79

6.37

--1,8091,809

1,225

7.10

0.35

0.98

11.83

122.75

1,6821,682

7.70

0.08

0.77

4.70

143.20

1,079

MaleFemaleLabor contract systemLabor dispatch systemOther51 years and over

41 to 50 years31 to 40 years old30 years and belowEmployees working in mainland China

Employees working in Hong

Kong, Macao and TaiwanNumber of employees workingin other countries and regions

Number of LocalBachelor’s degree and above

Associate Degree

Secondary Technical School and BelowTotal number of grass-roots employees

Total number of employees at middle

management levelNumber of female employees at

middle management levelTotal number of seniormanagement employeesNumber of female employees at

senior management level

By gender

By type ofemployment

By age

By region

By academicqualifications

Total Number of Departed Employees

Staff turnover rateNumber of Departed Male EmployeesNumber of Departed Female Employees

Number of Departed Employees Aged

51 and AboveNumber of Departed Employees Aged 41–50Number of Departed Employees Aged 31–40

Number of Departed Employees Aged 30

and BelowNumber of Departed Employees Working in

Mainland ChinaNumber of Departed Employees Working in

Hong Kong, Macao, and TaiwanNumber of Departed Employees Working in

Other Countries and Regions

Labor contract systemLabor dispatch system

Other

By employee

category

By EmployeeProfessionalComposition

Category

Help employ-

ees indifficulty

Visit andconsole thefamilies ofemployees in

difficulty

Rescue sickemployees

By gender

By age

By region

By type ofemployment

Total investment in staff trainingNumber of employee trainings

Employee training coverageTotal number of employees receiving training

Total number of people receivingenvironmental protection training

｜ Key Performance Indicators ｜｜ Key Performance Indicators ｜

Labor contract signing rateSocial insurance coverageAverage Number of Paid Annual Leave Days per Employee

Health Check-up Coverage Rate

Total number of employees

%%Days

%PersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersons

Number of Newly Hired Fresh Graduates

Number of Employees in Financial Difficulty

Receiving Assistance

PersonsPersonsPersonsPersonsPersonsPersonsPersonsRMB 10,000HouseholdsRMB 10,000PersonsRMB 10,000Persons%PersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsRMB 10,000

Sessions

%PersonsPersons

Number of sick employees

receiving Assistance

Number of male employeesreceiving trainingNumber of female employeesreceiving trainingNumber of grass-root employees

receiving trainingNumber of middle management

employees receiving trainingNumber of senior management

staff receiving trainingTotal Employee Training HoursAverage Employee Training Hours

By gender

ByEmployeeType

PersonsPersonsPersonsPersonsPersonsHoursHoursHoursHoursHoursHoursHoursHours

TimesTimes

TimesTimesTimes

Persons

PersonsCases

RMB 100million

Person-times

%

%

%%

%

1,413

1,633

42,341

30,46711,87435,0215,2002,120-54,414

0.14

-

1,451

-

---

1,330

1,523

36,230.33

21.54

28,801.33

7,42928,154.504,215.533,860.30

47,945.60

0.09

--

38,001

35.20

27,9981,00327,1894,8555,957

48,680

0.01

Total Training Hours Received

by Male EmployeesTotal Training Hours Received

by female employeesotal Training Hours Received

by Grass-root EmployeesTotal Training Hours Receivedby Middle Management Employees

Total Training Hours Receivedby Senior Management EmployeesCoverage Rate of Work-related Injury Insurance

and Work Safety Liability Insurance

Safety training hoursSafety production inputInjury Rate per Million Working Hours

Number of Emergency Safety DrillsNumber of Participants in Emergency Safety Drills

Number of Work Safety Accidents

Number of Work-related Fatalities

Work-related Fatality RateWork-related Injury RateNumber of Lost Workdays Due to Work-related Injuries

Number of New Occupational Disease Cases

Occupational Disease Incidence RateNumber of Emergency Drills for Chemical Incidents

Frequency of Special Equipment InspectionsPass Rate of Special Equipment Inspections

By gender

ByEmployee

Type

Industry andCommunityRelationsPerformance

IndicatorsDimensionUnitData for 2023Data for 2024Data for 2025

Industry and Community Relations

SuppliersSuppliersSuppliers

SuppliersSuppliersSuppliersSuppliersSuppliersSuppliersSuppliersSuppliers

%%

%%%

HoursHours

Person-

timesPerson-

times

Persons

RMB

10,000

RMB

10,000

RMB

10,000

1,9711,942

0.36

0.04

743.50

-

43.18

32.39

-

0.37

0.05

1,449

748.50

28.17

11.86

6.86

0.39

0.05

42.14

42.14

Total number of suppliers (dealers)By regionPercentage of supplier code of conduct signedPercentage of suppliers with clauses that include

environmental and labor requirements

Number of Suppliers Subject to

Environmental Impact AssessmentNumber of Suppliers Subject to Social Impact Assessment

Number of Suppliers Identified as Having Actualand Potential Significant Negative Social ImpactsNumber of Suppliers Identified as Having Actualand Potential Significant Negative Environmental ImpactsNumber of Suppliers Terminated Due to Non-compliance

Number of Potential Suppliers Rejected Due

to Non-compliancTotal number of new suppliersNumber of local suppliers purchased

Supplier in Mainland ChinaHong Kong, Macao, Taiwan and

overseas suppliers

ByAssessment

Type

Percentage of New Suppliers Screened

Using Environmental CriteriaPercentage of suppliers screened

using social criteriaProportion of buyers trained in sustainable

procurement within the companySupplier ESG training person-timeDuration of supplier ESG trainingNumber of employees participating in voluntary activities

Duration of employee volunteer activitiesThe amount of charitable donationsInvestment of special funds for poverty alleviation

Number of New Jobs CreatedTotal investment amount of Rural Revitalization

｜ Key Performance Indicators ｜｜ Key Performance Indicators ｜

Productand service

perfor-

mance

CasesItems

%%%%

//

//

94.83

96.60

Number of Complaints Received Regarding

Products and ServicesNumber of Products RecalledBusiness scope covered by quality management

system certificationPETG Customer SatisfactionPET customer satisfactionCustomer complaint handling rate

Environ-mentalperfor-mance

Environmental

10,000 tonnes of

standard coalequivalent

10,000LiterskWhkWh%10,000 tonnes

Tonnes

0.08

0.10

21.28

0.12

1.09

13,84173,0005,694,558232,716,791

2.46

103.75

0.60

8,920.68

0.11

0.01

20.21

0.11

-0.6113,079.15

11,258,674228,678,176

4.92

128.50

0.71

8,884.06

0.10

0.02

18.60

0.14

-1.6112,087.88

19,429,831108,537,050

9.49

128.05

0.98

9,614.44

Total Environmental Protection Investment

Total Comprehensive Energy Consumption

Energy Consumption Intensity

Product Energy Savings

Natural Gas

DieselRenewable EnergyPurchased ElectricityProportion of Renewable Electricity in Total

Annual fresh water consumption

Water consumption intensityCirculating water consumption

｜ Key Performance Indicators ｜｜ Key Performance Indicators ｜

IndicatorsDimensionUnitData for 2023Data for 2024Data for 2025

IndicatorsDimensionUnitData for 2023Data for 2024Data for 2025

Products and Services

Investment in Energy-saving and Emission-reduction

Technological Upgrades

Tonnes of standardcoal equivalent / RMB

10,000

RMB 100 million

RMB 100 million

10,000 tonnes of

standard coal

equivalent

Tonnes/RMB 10,000

TonnesTonnesTonnesTonnes

TonnesTonnesTonnesTonnes

TonnesTonnesTonnes

10,000 tonnes10,000 tonnes

10,000 tonnes10,000 tonnes

Tonnes / RMB

100 millionTonnes of CO

equivalentTonnes of CO

equivalentTonnes of CO

equivalentTonnes of CO

equivalentTonnes of CO

equivalentTonnes of CO

equivalent

Tonnes of CO

equivalent / RMB 10,000

IncidentsTonnes

%kWhMg/m?

2.06

-0.13

93.22

17.41

45.28

7.35

30.16

2.28

4.70

-0.49

0.48

-0.294,545.074,697.01

27.27

119.81

328,982.45128,889.96671,341.28-52,905.0197,591.68457,872.41

0.66

1,153,660

4.45

1.74

0.32

79.52

13.70

43.93

1.35

31.45

-1.29

4.87

-0.17

0.36

0.12

3,264.223,464.96

19.19

311,728.67121,059.18764,092.77

17,253.787,830.78432,787.85

0.66

3,020,168

4.66

1.06

0.68

55.17

24.35

44.57

-0.64

30.46

0.99

4.73

0.14

0.32

0.04

3,098.623,123.14

23.62

108.75

286,275.0498,329.603,431,976.90

25,453.6322,729.58384,604.64

2.92

23,996,724

5.17

Sulfur dioxide emissionsSulfur dioxide emission reduction(over the previous year)Emission reduction of nitrogen oxides

(compared with the previous year)

Waste water dischargWastewater Discharge Reduction

(vs. previous year)Chemical Oxygen Demand EmissionsChemical Oxygen Demand Reduction

(vs. previous year)Ammonia Nitrogen EmissionsAmmonia Nitrogen Emissions Reduction

(vs. previous year)Waste Reduction (vs.previous year)

Total Recyclable WasteTotal General Solid WasteGeneral Solid Waste Intensity

Total Hazardous WasteScope 1 Greenhouse Gas EmissionsScope 2 Greenhouse Gas Emissions

Other Indirect (Scope 3)Greenhouse Gas EmissionsScope 1 Greenhouse Gas Emissions ReductionScope 2 Greenhouse Gas Emissions Reduction

Total Greenhouse Gas Emissions

from OperationsGreenhouse Gas Emissions IntensityNumber of Chemical Leakage Incidents

Total Chemical LeakageProduct Recycling Rate

Electricity SavedTotal non-methane hydrocarbon emissions

Waste Generated

NOx emissions

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