LET THE WORLD FEEL THE POWER OF CARBON FIBER
Contents
Chairman's Statement05About us07
Introduction03
Sustainable DevelopmentColumn
Sustainable Development Strategy112024 Sustainable DevelopmentManagement Performance
Sustainability ManagementFramework
Honors and Awards inSustainability
Analysis and Evaluation ofSustainable DevelopmentMateriality Issues
Governance19Deepening ComprehensiveCorporate Governance
Environment31Accelerating the Transition toLow-Carbon Production
Continuing to PromoteEnvironmentally FriendlyProduction
Accelerating the Construction ofa Circular System
Driving Green and LightweightDevelopment
Proactively Addressing ClimateChange
Social53Strictly Ensuring Product Quality55Commitment to TechnologicalInnovation
Implementing Intrinsic Safety68Fully Safeguarding EmployeeRights
Comprehensively PromotingTalent Development
Deepening CorporateResponsibility Operations
Dedicated to Creating SocialValue
Sustainable developmentKPIs
Environmental KPIs97Social KPIs99
Perspective103
Appendix105
Index table of indicators105Feedback111
0102
Steadfastly Advancing IntelligentDevelopment
Continuing to Plough ThroughIntegrity Building
Smooth Communication withStakeholders
Introduction
The report describes the performance of Zhongfu Shenying Carbon Fiber Co.,Ltd. (hereinafter “Zhongfu Shenying”,“the Company” “Headquarters”or "We") in environmental, social and governance (ESG) and social responsibilityfulfilment in 2024, to facilitate communication with stakeholders and respond to their demands. The Board of Directorsof Zhongfu Shenying is fully responsible for the Company's sustainable development, and the report has beenreviewed and approved by the Board of Directors.
Reporting periodUnless otherwise specified, this report covers the period from 1 January 2024 to 31 December 2024 (hereinafter "theReporting Period" or "this year").Reporting scope
The entity of this report is of Zhongfu Shenying Carbon Fiber Co.,Ltd. The report mainly covers ESG performancerelated to the Company's core business, as well as related policies and management during the Reporting Period.Reporting cycleThe Environmental, Social and Governance (ESG) Report of Zhongfu Shenying Carbon Fiber Co.,Ltd.. is published on anannual basis.Preparation basis
This report is prepared in accordance with the Shanghai Stock Exchange Guidelines No. 14 for Self-disciplineRegulation of Listed Companies -Sustainability Report (Trial)
and the SASAC's Study on ESG Special ReportCompilation for Listed Companies Controlled by Central Enterprises. It also refers to the Sustainability ReportingStandards (2022) released by the Global Reporting Initiative (GRI), the Guidance on Social Responsibility by theInternational Organisation for Standardisation (ISO 26000: 2010), the National Standard GB/T36000 Guidance on SocialResponsibility, and the United Nations' Sustainable Development Goals (SDGs). The results of the materialityassessment conducted in accordance with the reporting principles in the above guidance and standards are alsoconsidered as the basis for information disclosure. This report is published in both Chinese and English. In case of anyinconsistency between the two versions, the Chinese version shall prevail.
Information description
The historical information quoted in this report is final statistics. In case of any inconsistency between the financialinformation and the annual report, the annual report shall prevail. Unless otherwise specified, the financial figures inthis report are denominated in RMB.Terms and definitions
During the Reporting Period, the following terms shall have the definitions stated below, unless otherwise indicated:
Report access
The download links for the electronic version are listed below：
Shanghai Stock Exchange：www.sse.com.cnZhongfu Shenying Carbon Fiber Co., Ltd. Official Website：https://www.zfsycf.com.cn/#/
Feedback
The Company attaches great importance to the suggestions or opinions put forward by various stakeholders, if youhave any suggestions or comments on the Company's ESG related work, please contact the Company through thefollowing:
Zhongfu Shenying Carbon Fiber Co.,LtdAddress: No.1-6 Jinqiao Road, Dapu Industrial Zone, Economic Development Zone, Lianyungang City, Jiangsu ProvinceEmail address：stock@zfsycf.com.cnOfficial Website：www.zfsycf.com.cnThe questionnaire for feedback is attached in this report on page 111, we welcome you to fill in the questionnaire andsend it to our email address.
1. During the year, the Company actively responded to the latest ESG information disclosure requirements of the Shanghai Stock Exchange and will
continue to improve the quality of information disclosure as required.0304
"China"The People's Republic of China"CNMB"China National Building Material Group Company Limited."Shenying Dapu"Zhongfu Shenying Carbon Fiber Company Limited Dapu Branch"Shenying Xining"Zhongfu Shenying Carbon Fiber Xining Company Limited."Shenying Shanghai"Zhongfu Shenying (Shanghai) Technology Company Limited."Shenying Lianyungang"Zhongfu Shenying Carbon Fiber Lianyungang Company Limited.
中复神鹰
Caring for the Blue Planet, Practicing Green and Low-Carbon Harmony Between Humans and NatureIn 2024, we firmly grasped the waves of digitalization, intelligence, and green technology revolutions, accelerating theapplication of carbon fiber in new energy fields such as wind, solar, and hydrogen. Our carbon fiber products havebeen successfully applied to the world's longest 147-meter offshore wind turbine blades and 131-meter onshore windturbine blades, adding a touch of green technology to the majestic landscapes and beautiful coastlines of ourhomeland. We have fully utilized green energy, answering the "must-answer question" of energy conservation andcarbon reduction. The proportion of new energy in our electricity consumption exceeded 70%, with a 4% reduction incomprehensive energy consumption per unit of main products and a 4.4% decrease in carbon dioxide emissionintensity. At Shenying Xining, hazardous waste generation per unit of product decreased by 21%. We focused on sourcereduction, recycling, and end-of-pipe treatment, actively building a new industrial ecosystem of "industrial chainrecycling + resource recycling," with every step reflecting our firm commitment to low-carbon environmentalprotection.
Caring for the Nation's Great Causes, Highlighting the "Name Card" of a Strong Technology Nation throughHigh-Level Innovation
Carbon fiber is a typical representative of the material revolution. China National Building Materials Group, with thenation's great causes at heart, is dedicated to creating "national materials," promoting the industrialization of carbonfiber and forming a tiered composite material industrial system to help build a "strong material nation." With Shenyingspreading its wings, we keep in mind the "four orientations," fully driving high-level technological self-reliance and self-strengthening, and accelerating the implementation of China National Building Materials' composite materialindustrial layout. We were honored to be listed on the "2024 Patent-Intensive Products" list, achieving full-seriescoverage of T700-T1100 and M30-60 high-performance carbon fibers along the eastern coast, and a leap fromthousand-ton to ten-thousand-ton production capacity of "black gold" on the snowy plateau. We globally launched theM50X high-strength, high-modulus carbon fiber product, setting new performance benchmarks for the next generationof carbon fibers. We overcame technical challenges such as ultra-high-temperature graphitization and N-atomdirectional removal, achieving batch production capabilities for M65J and M55J high-modulus carbon fibers. T700-level products were applied to the world's largest solid-fuel rocket, " Gravity-1".
Dedicated to Excellence, Enhancing Life Experiences Through Lean Manufacturing
In 2024, we adhered to expanding increments, optimizing stock, managing variables, and strengthening quality,striving to build a high ground for high-quality development, achieving a 40% increase in production efficiency and afurther 1.35 percentage point improvement in customer satisfaction. With "Eagle inside," our products weresuccessfully applied to the world's first commercial carbon fiber subway train, the Carbon Star Express, and carbon-ceramic products were used in high-end mass-produced best-selling models by leading automakers. We activelyplanned for the low-altitude economy, assisting XPeng Huitian's "X3 Land Aircraft Carrier" in its global debut at the 15thChina International Aviation and Aerospace Exhibition. Beyond eVTOL, our products were also applied in the 3Cconsumer electronics field, including foldable smartphones and laptops, making positive contributions to lightweight,miniaturization, and flexibility. Assisting people in their pursuit of a better life has always been our unwavering belief.
Open, Inclusive, and Striving, Supporting Employees' Dreams Through Growth Ladders
In 2024, the people of Shenying walked through the seasons together, experiencing both storms and rainbows, withcountless moments captured in this extraordinary year. We firmly rooted our "strong foundation and soul," using partybuilding to guide corporate governance, improving modern corporate governance mechanisms, adhering tosustainable development concepts, and establishing a Strategic Investment and ESG Committee, actively exploring theunity of economic, environmental, and social responsibilities. We adhered to a people-oriented approach, with womenaccounting for 44% of the board of directors. Researchers drove high-level technological self-reliance and self-strengthening, with the Shenying Xining "China Strength" core technology research youth collective winning the ChinaYouth May Fourth Medal, and Chen Qiufei's team receiving the "China Youth Science and Technology Award." Weupheld social responsibility, with the sales team leveraging professional expertise and sincere service to successfullyopen new markets and ensure all suppliers signed anti-corruption cooperation agreements. Employees on theproduction line strictly controlled every production process to ensure stable and reliable product quality. We led theestablishment of the Jiangsu Province Carbon Fiber Industry Model Worker (Craftsman) Innovation Studio Alliance,with Shenying Xining winning the Qinghai Province Model Worker Collective and the Qinghai Plateau "Worker Pioneer"titles. Guided by the philosophy of "moving forward together, creating the future," we organized 1,711 training sessionsthroughout the year, totaling around 55,000 participants. We conducted the "Shenying Education Assistance Program"for four consecutive years, organizing the "Children Building Technology Dreams" resource utilization day openactivities, inviting university students and social groups to visit the Zhongfu Shenying high-end production base, andestablishing a carbon fiber postdoctoral research workstation on the snowy plateau of Qinghai.We extend our sincere gratitude to all colleagues and their families who have walked alongside the Company, as wellas friends from all walks of life who have consistently supported the development of Zhongfu Shenying. In the newyear, we will steadfastly adhere to the strategic positioning of "green, high-end,international, and large-scale" remaincustomer-centric, and drive forward with technological innovation and precise management. We will continue toundertake major frontier technology research tasks, excellence performance quality improvement activities, and cost-saving plans, building a world-class carbon fiber enterprise with outstanding performance, refined management, top-tier environmental standards, renowned branding, advanced simplicity, and safety and stability.Let the World Feel the Power of Carbon Fiber!
Zhongfu Shenying Party Secretary and Chairman Zhang Jian
0506
Chairman's StatementEmbrace Renewal, March Towardthe Bright FutureThe stars do not forsake those who chase their dreams, andrivers favor those who row with determination. The year 2024 isone filled with both challenges and opportunities, as well as ayear of continued in-depth development in the field of carbonfiber. Facing a complex and ever-changing market environment,the people of Shenying have pursued their dreams of the vastcosmos with unwavering focus, bold innovation, courage to takeon challenges, and a spirit of teamwork, injecting powerfulmomentum into the Company's growth.
About Us
Brief introductionZhongfu Shenying Carbon Fiber Co., Ltd. ( hereinafter referred to as Zhongfu Shenying or Company ) is a national high-tech enterprise integrating the R&D, production and sales of carbon fiber and composites. With two production baseslocated at Lianyungang and Xining and one R&D base in Shanghai, the production capacity of Zhongfu Shenying ranksfirst in China. The Company was successfully listed at the Shanghai Stock Exchange on April 6th, 2022 (Stock ShortName: Zhongfu Shenying, Stock Code: 688295).The Company has always adhered to the core values of "Innovation, Integration, Strive and Responsibility" and thecorporate mission of "Let the world feel the power of carbon fiber", with the vision of building a world-class carbonfiber enterprise with global competitiveness. In the future, the Company will focus on the research and development ofthe new generation of high-performance carbon fiber with high-strength and high-modulus, accelerate theconstruction of aviation-level prepreg projects to extend the industrial chain, and pay more attention to the automatedand digital production equipment to further improvement of production efficiency and expansion of the large-scaleproduction, achieving energy-saving and green sustainable development to enhance core competitiveness.Currently, the Company's products cover various types of carbon fiber varieties, including high-strength, high-strengthmedium modulus, and high-strength high modulus types. They are widely used in high-end and green areas such asaerospace, carbon/carbon composites, pressure vessels, wind turbine blades, and new energy vehicles, as well asinfrastructure and daily life areas such as rail transit, architectural bridges, sports and leisure, and electronic 3C. Thishas greatly promoted the development breadth of the domestic carbon fiber composite materials industry.Zhongfu Shenying has fully mastered the independent production capacity of 10,000 tons of high-performance carbonfibers throughout the entire process. It has taken the lead in achieving breakthroughs in key technologies andindependent production of core equipment for dry-jet wet spinning in China, steadily upgrading its products, andsystematically mastering the comprehensive production of 48K large tows, T800 prepregs, and T1100 grade carbonfiber products. In January 2018, Zhongfu Shenying was awarded the First Prize for National Scientific andTechnological Progress in 2017 as the primary completing unit. At the end of 2021, the Company's Xining 10,000-toncarbon fiber project was selected as one of the top ten megaprojects of centrally-administered state-ownedenterprises. In 2024, the Company was honored with the "Top 50 New Quality Productivity Companies at the 18thChina Listed Companies Value Awards" and received an A-grade evaluation for its information disclosure work from theShanghai Stock Exchange.
Enterprise visionWe are committed to building aworld-class carbon fiber with global
competitiveness.
Let the world feel the power of
carbon fiber.Enterprise missionCore valueStrategic positioning
Uphold our original aspirations and craftsmanship to pursue
excellence in quality.Lead advancements in science and technology andcourageously undertake national responsibilities.
Operating Mission
Corporate culture
0708
Innovation, Integration,Strive and Responsibility
Green, High-end,International, Large-scale
Sustainable DevelopmentColumn
2024 is a crucial year for achieving the objectives of the "14th Five-Year Plan"and a key stage for Shenying to deepen the implementation of its "green,high-end, international, and large-scale" strategy. We are striving to breakthrough challenges, focusing intensively on organizational resilience, productinnovation, market expansion, and risk management. By continuouslyenhancing the overall operational efficiency of the enterprise, we arecommitted to building sustainable competitive advantages, stabilizing thecore of our business, and advancing the localization of carbon fiber. We areaccelerating the construction of an innovation-driven, green, low-carbon, andhigh-efficiency carbon fiber industrial system.
2024 Sustainable DevelopmentManagement PerformanceSustainability ManagementFramework
Sustainable Development Strategy
Honors and Awards in SustainabilityAnalysis and Evaluation ofSustainable Development MaterialityIssues
0910
Sustainable Development ColumnGovernanceEnvironmentSocial
Sustainable Development Strategy
Zhongfu Shenying continues to drive the green and high-quality development of the Company. Centered on itsoverarching strategic positioning of "green, high-end, international, and large-scale," the Company has establishedthree guiding principles: advancing product and market high-end development through conceptual innovation,enhancing production capacity and talent team scalability through management innovation, and accelerating greenproduction and operations through technological innovation. This has formed a sustainable development strategicsystem characterized by "one core and five pillars." This year, the Company vigorously promoted the implementationand practical application of Zhongfu Shenying's sustainable development strategy, effectively advancing its high-quality development.
Five Pillars
1112
One Core
With technological innovation as the core, market demand as the guide, andquality upgrade as the goal, we will strengthen the presence of green attributesin products along the development of the value chain and strive to promotehigh-quality and low-carbon development in society.
Sustainable Development ColumnGovernanceEnvironmentSocial
Governance Fostering Sustainable OperationsThe Company will continuously fortify our responsible corporate image by enhancing the capacity andawareness of our partners in sustainable development and promoting coordinated development in itsoperational areas, laying a solid foundation for the Company's sustainable development.
Technology Promoting Green Production
The Company will improve resource utilization efficiency and reduce pollutant emission levels throughtechnological upgrades. Besides, the Company will adjust its energy structure utilizing clean energytechnologies to implement clean production and reduce the carbon footprint of our products, demonstratingcorporate responsibility in supporting the national "Carbon Peaking and Carbon Neutrality" strategy andresponding to global climate change.
Innovation Driving Circular Economy
Fully integrating the idea of circular economy, the Company will accelerate the improvement of resourcerecycling efficiency and cascade utilization of energy, aiming to build "zero-emission" factories to boost thedevelopment of circular economy in the industry, thereby enabling green and high-quality development.
Talents Building Excellent Teams
The Company will safeguard employees' rights and interests, ensure their health and safety, and provide themwith a reassuring work environment to enhance their sense of happiness and belonging. The Company hasdesigned career paths that meet employees' needs and promote employee care to attract, cultivate, andretain high-quality employees.
Quality Penetrating High-End Markets
Combining market development needs, the Company has been building a solid research and developmentfoundation to pursue high-quality products and services. Additionally, the Company actively respond toconcerns about the Company's sustainable development performance in domestic and overseas markets toexplore new high-end markets.
Sustainable DevelopmentStrategy Pillar
Core Initiatives2024 Key Performance and Highlights
Alignment with UN Sustainable
Development Goals (SDGs)
Technology Promoting Green
Production
In line with the group's strategy, the Company formulated the "Carbon Peak and CarbonNeutrality Work Implementation Plan" and established carbon reduction targets, fully drivingthe transformation of low-carbon production technologies to reduce energy consumption;continuously increasing the proportion of clean energy usage such as wind, solar, andhydropower; practicing natural ecological protection, strictly implementing environmentalmanagement, and improving environmental protection levels in production operationsthrough process improvements.
?Environmental protection investment reached 27.34 million yuan;?The proportion of wind, solar, and hydropower consumption at the Xining facility
reached 70%;?Shenying Dapu’s total exhaust emissions (VOCs) decreased by 21.10%
compared to 2023, with total exhaust emissions (VOCs) per unit product reduced
by 4.30%;?Shenying Xining advanced waste reduction, achieving a 25.90% year-on-year
decrease in hazardous waste generation, a 15.60% year-on-year decrease in
general industrial solid waste generation, a 20.79% reduction in hazardous waste
per unit product, and a 9.78% reduction in solid waste per unit product.
Innovation Driving Circular
Economy
The Company continues to advance the "dual-cycle" development model of "industrial chainrecycling + resource recycling," efficiently promoting the tiered utilization of energy and waterresources, and enhancing the efficiency of waste resource utilization; empowering thelightweight and high-efficiency development of downstream products, accelerating theapplication of carbon fiber in multiple fields and scenarios; actively researching high-qualityand efficient recycling system technologies to promote circular development.
?Shenying Dapu collaborated with qualified third parties for waste recycling, with
nearly 15% of waste used for biomass power generation;?Through independent equipment upgrades, waste heat recovery utilization
exceeded 70%, reducing greenhouse gas emissions by approximately 50,000 tons
of CO
annually;?Supplied over 8,000 tons of carbon fiber materials to the new energy, public
transportation, and low-altitude aviation industries throughout the year.
Quality Penetrating High-End
Markets
Upholding the "zero-defect" quality management philosophy, the Company continues toexplore a quality management system with Zhongfu Shenying's unique characteristics,comprehensively improving employee quality awareness; building high-quality R&D teams,pursuing the parallel development of technical depth and breadth, and continuously drivingthe high-end application of products; practicing responsible marketing, fully buildingmutually beneficial and trustworthy partnerships, and collaborating with partners to create asustainable operating environment.
?Conducted 105 quality-related training sessions throughout the year, with a totalparticipation of 4,027 person-times;?Filed 1 international patent application through the PCT system, with 269 new
patents accepted and 107 patents authorized for the year;?Achieved the management goal of maintaining customer satisfaction at or above
95 points for two consecutive years.
Talents Building Excellent
Teams
Adhering to a "people-oriented" approach, the Company fosters a fair, just, diverse, andinclusive work environment, comprehensively promoting talent development; empoweringintrinsic safety through technological applications, continuously deepening the constructionof the safety production management system, and insisting on managing and preventingproduction safety from the source; effectively safeguarding employee rights and benefits,continuously enhancing employee happiness and sense of belonging.
?Annual safety production investment reached 17.97 million yuan, a decrease
compared to 2023;?A total of 45,675 person-times participated in safety training throughout the year;?Training hours per capita reached 110.20 hours.
Governance FosteringSustainable Operations
Promote the modernization of governance systems and capabilities, systematically advanceinstitutional and mechanism innovation; optimize the governance structure of the board ofdirectors and supervisory board, focusing on diversity in gender and professionalbackgrounds to enhance decision-making inclusiveness; emphasize a culture of integrity andanti-corruption, establish a long-term mechanism for integrity risk prevention, and cultivate afoundation of clean and ethical performance to ensure efficient Company operations.
?The proportion of female directors reached approximately 44%, an increase of
20% compared to 2023;?The Company conducted 16 integrity-themed training sessions across all levels;?100% of suppliers signed anti-corruption cooperation agreements.
2024 Sustainable Development Management Performance
1314
Sustainable Development ColumnGovernanceEnvironmentSocial
Sustainability Management FrameworkZhongfu Shenying actively undertakes corporate social responsibility and places high importance on the synergisticdevelopment of economic and social benefits. To further advance the implementation of the Company's sustainabledevelopment strategy and align with the national strategic deployment of green and high-quality development, theCompany has established a top-down ESG governance structure comprising the board of directors, the Strategy andESG Committee, and the ESG Working Group. The Company continues to strengthen the service and support for theperformance of directors, supervisors, and senior management, actively organizing board members to participate inESG and sustainable development-themed training, including climate change-related topics, and promptly ensuringthat the board completes corresponding performance training, injecting new momentum into the Company'ssustainable development management.The Company has deepened its ESG management philosophy, continuously strengthening the governance layer'scapabilities in managing and making decisions on ESG-related matters. In the new board of directors, the chairman ofZhongfu Shenying possesses extensive management experience
in areas such as corporate social responsibility,production safety, and technological innovation, all of which are crucial for sustainable development. This provideshigh-level leadership and a solid foundation for integrating ESG with Zhongfu Shenying's business operations, therebyfully constructing a sustainable enterprise. This year, Company directors (including non-executive directors),supervisors, and senior executives participated in risk-related training organized by institutions such as the ShanghaiStock Exchange, the Jiangsu Securities Regulatory Bureau, and the Jiangsu Listed Companies Association. Theseincluded initial training for directors, supervisors, and senior executives, follow-up training for independent directors,compliance training for financial directors, mergers and acquisitions training, and a series of training sessions on high-quality development and regulatory work for listed companies, totaling over 100 hours.
The Board of Directors
The Board of Directors serves as the highest governing authorityresponsible for ESG affairs, and assumes responsibilities of leadershipand supervision covering the Company's overall ESG objectives,strategies, risks and policies, including climate change related matters.
The Strategy and ESG
Committee
The Strategic and ESG Committee is tasked with formulating ESGobjectives and strategies, assessing and identifying ESG risks, anddriving the establishment of appropriate and effective ESG riskmanagement and internal control systems.
The ESG Working Group
The ESG Work Group is responsible for the implementation andadvancement of specific ESG matters within the Company. This includescompiling annual ESG reports, executing ESG strategies, and organizingESG-related communication and training activities.
Honors and Awards in Sustainability
1516
2024 Top 50 New QualityProductivity Companies in
China Highest
A-Grade Evaluation(Excellent) for InformationDisclosure Work by theShanghai Stock Exchange
The 10th IALTA (China)Automotive LightweightingGreen Technology InnovationAward for the Year 2024
IALTA Green DemonstrationBase for Advanced CompositeMaterials in AutomotiveLightweighting Applications
Champion Enterprise inManufacturing Excellence
Outstanding InnovativeProduct at the 20th "CCE-
JEC" Innovation Product
Awards
Sustainable Development ColumnGovernanceEnvironmentSocial
2. FordetailsregardingtheresumeoftheChairmanofZhongfuShenying,pleaserefertotheZhongfu Shenying’s2025AnnualReport.
Analysis and Evaluation of SustainableDevelopment Materiality Issues
To fully understand the key concerns of various stakeholders regarding Zhongfu Shenying's sustainable development,the Company systematically conducted the identification and materiality analysis of sustainability-related issues.
This year, through internal surveys, external expert discussions, and other processes, the Company assessed andconfirmed that the ranking of material issues showed no significant changes compared to 2023. The board of directorsand the management team reviewed and approved the results of the materiality analysis and provided ESGmanagement recommendations based on the Company's operational conditions.
the Company has identified17 material sustainability issues
including6 environmental topics9 social topics
2 governance and compliance topicsBased on the Company's operational context and the key sustainability focus areas of the industry
Social issuesCommunitycontribution07Sustainablesupplychain08Employeecare09Providingqualityservices10Innovativeresearchanddevelopment
Safeguardingemployeerightsandinterests
Pursuingproductquality13Employeehealthandsafety14SupportforEmployeeDevelopment15
Governance andcompliance issues
Corporategovernance16Businessethicsandcompliance
Wastemanagement01Respondingtoclimatechange
Waterresourcesmanagement
Promotingcirculareconomy
Reducingpollutantemissions
Efficientenergyutilization
Environmental issues
1718
Materiality to the CompanyLow
High
High
Materiality to stakeholders
Sustainable Development ColumnGovernanceEnvironmentSocial
Governance
BusinessethicsandcomplianceCorporategovernance
Responding to material issues
Deepening ComprehensiveCorporate Governance
1920
Continuing to Plough ThroughIntegrity BuildingSmooth Communication withStakeholders
Pillar of sustainable development strategy
Management FosteringSustainable Operations
Sustainable Development ColumnGovernanceEnvironmentSocial
Deepening Comprehensive CorporateGovernance
Party Building as the Guiding ForceZhongfu Shenying adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a NewEra, thoroughly implementing the spirit of the Third Plenary Session of the 20th CPC Central Committee, shaping a newstyle of Party building, and enhancing the quality and efficiency of standardized grassroots Party construction.Simultaneously, the Company actively explores methods and pathways for the deep integration of Party building andbusiness operations, creating a "1+N" Party building brand matrix, continuously promoting the deep integration ofParty building and business operations, and achieving high-quality development of the enterprise under the leadershipof high-quality Party building, forging "national materials" for the new era.This year, Zhongfu Shenying Xining Company's "Developing New Productive Force Through the 'Party Building + NewDevelopment Concepts' Model Tailored to Local Conditions" was recognized as an outstanding case in national Partybuilding innovation. This marks the second consecutive year of national honors, following the selection of ZhongfuShenying's "Five-Colored Shenying" Party building brand as an outstanding national enterprise Party building brand in2023.Shenying Xining's "Party Building + New Development Concepts" Model
"Party Building + Technological
Innovation"Achieving Technological Self-
Reliance and Strength
Through the integrated development model of "Party Building + Technological Innovation," the Companyhas embedded independent innovation in core carbon fiber technology into the development of new qualityproductivity, fostering the source of original technological breakthroughs."Party Building + Coordinated
Planning"Ensuring Industrial Autonomy and
Control
Using the "Party Building + Coordinated Planning" model, the Company balances high-quality developmentwith high-level security, focusing on preventing and mitigating major risks. Corporate culture is cultivated asan intrinsic support for coordinated development, aligning production relations with productive forces toenhance the Company's risk resilience and market competitiveness."Party Building + Green and Low-
Carbon"Accelerating Green Transformation
and Development
Adhering to the "Party Building + Green and Low-Carbon" model, the Company empowers greentechnological innovation with digital technologies, enabling real-time monitoring and management ofenergy consumption in production, manufacturing, and recycling processes. This systematically improvesenergy and resource utilization efficiency, driving green and low-carbon transformation to support high-quality development."Party Building + Open Integration"Enhancing Resource Allocation
Capabilities
Thoroughly implementing General Secretary Xi Jinping's important discourse on talent work and adhering tothe principle of Party management of talent, the Company explores a more autonomous, collaborative, andopen system for talent "introduction and utilization" through the "Party Building + Open Integration" model.A fair competition mechanism is established across all stages of talent development, including"introduction, utilization, motivation, and evaluation.""Party Building + SharedResponsibility and Benefits"
Stimulating the Vitality ofProduction Factors
Through the "Party Building + Shared Responsibility and Benefits" model, the Company continuouslystrengthens income distribution incentives, fully unleashing the innovative and creative vitality of talent.This creates a cooperative model where the Company and employees "share responsibilities during thedevelopment process and share the benefits of development outcomes."
Guiding Scientific Governance Through Party BuildingThe Company focuses on deepening reforms by integrating Party building deeply into its main work lines andproduction and operational development. In 2024, to further standardize the Party committee's research procedures,the Company held 30 Party committee meetings, reviewing and determining 424 items; established a "Party buildingco-construction" mechanism, with subordinate Party branches conducting 4 joint themed Party Day activities withuniversities, downstream industry chain enterprises, and relevant government departments. Additionally, theCompany collected over 100 suggestions and opinions from Party members and the public on energy conservation,quality improvement, efficiency enhancement, and technological breakthroughs, and recognized 12 "role modelsaround us," achieving record-high product quality indicators and historically low production costs.
Zhongfu Shenying Holds Commemoration of the 103rd Anniversary of the CPC Founding, "Two Excellencesand One Advanced" Awards, and Party Discipline Learning and Warning Education Conference
Case
To celebrate the 103rd anniversary of the founding of the Communist Party of China, promote
the great spirit of Party building, and further consolidate and expand the achievements of
thematic education and Party discipline learning, in June 2024, Zhongfu Shenying held the
"Two Excellences and One Advanced" Awards and Party Discipline Learning and Warning
Education Conference. The conference commended and encouraged outstanding Party
members and excellent Party affairs workers. The meeting was conducted via video conference,
with the main venue in Lianyungang and branch venues in Xining and Shanghai. Nearly 200
participants attended, including members of the Company's Party committee, leaders of
affiliated enterprises, award recipients, all Party members, activist representatives, and youth
league representatives.
Guiding Cultural Development Through Party BuildingThe Company comprehensively implements the spirit of the 20th National Congress of the CPC and the Third PlenarySession of the 20th CPC Central Committee, organizing diverse Party member cultural activities such as the "StrivingForward, Braving the Tide" calligraphy and painting exhibition, outdoor quality development activities for the "MayFourth" Youth Day, and launching the "Party Discipline Education" column for thematic training. Advanced models arehighlighted, and multiple channels, including the Company website, official WeChat account, "Smart Party Building"platform, and internal publications, are utilized for promotion, creating a positive online and offline resonance. Thisyear, Party and Youth League branches at all levels organized over 60 Party-building activities.
Celebrating New China, Striving for a New Era—Building Materials Cultural Tour at Zhongfu ShenyingXining Company
Case
To thoroughly study and promote the spirit of the Third Plenary Session of the 20th CPC
Central Committee, celebrate the 75th anniversary of the founding of New China, and
strengthen corporate culture, in September 2024, the China National Building Materials
Group's cultural tour visited Zhongfu Shenying Carbon Fiber Co., Ltd.'s Xining Company,
the world's highest-altitude and largest single-site high-performance carbon fiber
production base. The tour brought a spectacular cultural feast to all employees of Xining
Company. Employees of Zhongfu Shenying Xining also showcased lively ethnic dances,
demonstrating mutual respect and inclusivity among ethnic groups, embracing each other
like pomegranate seeds, and uniting heart-to-heart and hand-in-hand to fulfill the mission
of "Materials Create a Better World."2122
Sustainable Development ColumnGovernanceEnvironmentSocial
Guiding Green Development Through Party BuildingIn order to accelerate the Company's green and low-carbon transformation, Shenying Xining has set up aparty member technology research group, relying on theadvantages of clean energy on the Tibetan Plateau, andsystematically carried out the improvement ofequipment and facilities, index testing and other work toachieve an annual water saving of 870,000 tonnes, whichguarantees the large-scale production of high-performance carbon fiber while reducing the intensity ofwater consumption, and helps the Company's greendevelopment.
Governance System
Zhongfu Shenying strictly adheres to laws and regulations such as the Company Law of the People's Republic of China,the Securities Law of the People's Republic of China, and the Corporate Governance Guidelines for Listed Companies,and has established a robust governance structure comprising the shareholders' meeting, board of directors, board ofsupervisors, and management team, known as the "Three Committees and One Layer.”
By refining the authority andresponsibility lists of the three committees and standardizing the corporate governance system and operationalmechanisms, the Company has effectively enhanced governance efficiency, laying a solid foundation for high-qualityand sustainable development. The board of directors has established four specialized committees: the Strategy andESG Committee, the Audit Committee, the Nomination Committee, and the Compensation and Evaluation Committee,which assist the board in fulfilling its functions in strategic development, auditing, nominations, and compensationand evaluation, respectively, ensuring efficient operation across all business areas.This year, the Company introduced an Independent Directors' Special Committee within the "Three Committees andOne Layer" governance framework and formulated the Zhongfu Shenying Carbon Fiber Co., Ltd. IndependentDirectors' Work System and the Zhongfu Shenying Carbon Fiber Co., Ltd. Independent Directors' Special CommitteeWork Guidelines. These measures further standardize and improve the independent directors' work system, enhancetheir performance capabilities and independence, and effectively leverage their role in corporate governance.
General Meeting of Shareholders: In 2024, the Company held 2 General Meetings ofShareholders, and 13 motions were considered and passed.General Meetingof Shareholders
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Board ofDirectors
SupervisoryBoard
SeniorManagement
3. Please refer to Zhongfu Shenying's official website for detailed governance system: https://www.zfsycf.com.cn/#/manager
Sustainable Development ColumnGovernanceEnvironmentSocial
Board of Directors: 9 directors, of which 4 were female, accounting for approximately
44%6 non-independent directors and 3 independent directors, a total of 5 board meetings wereheld
41 motions were reviewed and passed, and 0 cases of rejected motions.Supervisory Board:
3 supervisors, of which 2 are female, with a total of 4 supervisory board
meetings held and 17 motions reviewed and passed.
Senior Management:
7 key senior management members, of whom 2 are women.
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Sustainable Development ColumnGovernanceEnvironmentSocial
Risk Management
Zhongfu Shenying comprehensively implements national policies and guidelines, continuously improves theCompliance Management System, and streamlines compliance management processes. The Company clearlydesignates the legal department as the lead, with various business departments collaborating to complete dailycompliance management tasks. To further enhance the compliance management system, this year, the Companyestablished the Internal Audit and Compliance Department, rigorously carrying out audit compliance, legalcompliance, and review compliance work.The Company conducts annual specialized audits and specific area audits for all departments and affiliatedenterprises. Issues identified during audits are promptly communicated to the respective department heads, who arerequired to complete rectifications and submit rectification reports within the stipulated time. By conducting full-levelinternal control supervision audits, the Company promotes the "abolition, revision, and establishment" of systems,standardizes the execution of internal control systems, strengthens internal control supervision and inspection, andfosters the Company's healthy and sustainable development. Additionally, the Company undergoes annual internalcontrol supervision and evaluation audits conducted by an external independent third-party organization.Sound risk management mechanismThe Company has set up a 'three lines of defence' risk management mechanism, with the first line of defenceconsisting of each department (including business personnel and the person in charge), the second line of defence isthe legal department, and the third line of defence consisting of the Internal Audit and Compliance Department andthe Supervision and Discipline Comprehensive Office. During the year, the Company formulated qualitative andquantitative risk rating standards, classifying risks into high, medium and low according to the likelihood ofoccurrence, degree of impact and amount of loss, and built a risk classification management system accordingly,requiring relevant departments to fill in a risk classification management form and propose risk response measures.Enhancing risk compliance awarenessIn order to further enhance its risk management capability, Zhongfu Shenying actively carried out risk compliancetraining of various types and dimensions covering all levels of employees. During the year, the Company activelyparticipated in risk compliance training organised by third parties such as China National Building Material Group, witha total of more than 30 management-level relevant personnel attending, and organised internal legal compliancecapacity building training activities.
Continuing to Plough Through Integrity BuildingZhongfu Shenying continued to deeply integrate the construction of a clean culture in the new era into the corporategovernance system, systematically promote the basic project of 'not daring to corrupt, not being able to corrupt andnot wanting to corrupt', and comprehensively enhance the awareness of employees at all levels of anti-corruption andprevention of change through the construction of the mode of 'system improvement + culture construction'. In 2024,the Company did not have any corruption incidents related to embezzlement and bribery, and will maintain clean andhonest operation.
Deepen institutional constructionThe Company strictly enforced institutional norms and strengthened the application of the results of supervision andinspection. During the year under review, the Company further improved the 'Measures for Handling EmployeeDisciplinary Violations' and other institutional provisions, established the 'Provisions on the Registration andManagement of Gifts and Premiums' and the 'Notice on the Reporting of Wedding, Funeral and Celebration Matters byLeading Cadres of the Company', and further perfected the management of gifts, premiums and the reporting ofmarriage, funeral and celebration matters by leading cadres. In addition, the Company has refined the list of dutiesperformed by discipline inspection members, improved the 'Assessment Measures for Heads of Discipline InspectionInstitutions and Members of Discipline Inspection Institutions of Enterprises Attached to the Company', and assessedthe performance of heads of discipline inspection institutions and members of discipline inspection institutions ofenterprises attached to the Company at the end of each year.
Strengthening Supervision and OperationThe Company has continued to operate the 'big supervision' system, through the formation of the 'big supervision'system talent pool, strengthening the supervision synergy, exploring risk warning measures, and continuouslyimproving the supervision coordination mechanism, and continuously amplifying the supervision effectiveness.
Big Supervision'system talent pool
The formation of a largesupervision system talent pool,and constantly broaden thesupervision channels, extend
the supervision of thetentacles to ensure that theycan quickly respond to andparticipate in the supervisionand inspection work, this year,
departments at all levels, atotal of 48 professionals into
the talent pool.
Risk warning
Explore the establishment ofrisk warning mechanism,supervision and inspectionprocess found in the systemdeficiencies, managementloopholes or weaknesses inthe work, the establishment ofintegrity risk reminder sheet,timely notification, reminder,
and urge to continuouslyenhance the awareness of
integrity risk prevention.
Joint audit, finance and legal personnelhave carried out 6 special supervision andinspection of key links in the areas ofprocurement and bidding, travelreimbursement, official receptionreimbursement, vehicle management anduse, and issued 3 supervision and inspectionrecommendations; and carried out 1 specialresearch on integrity risks of the enterprises,to promote the formation of a synergy ofsupervision and enhance the quality ofsupervision and management.
Joint Supervision
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Sustainable Development ColumnGovernanceEnvironmentSocial
Key Performance in Integrity Risk Management
Sustained Rectification of the "Four Malpractices"Carried out4 internal self-inspections and routine supervision on the implementation of the Central Eight Provisions.
Strengthening Accountability
Signed 36 copies of the "Responsibility Statement for Party Conduct and Clean Government Construction"with various departments and affiliated enterprises.Enhancing Supervision of Cadres
Strengthened supervision of leadersand leadership team, conducted57 instances of in-depth talks24 person per capita
Undertook pre-appointment
integrity talks for cadres to
Signed 218 copies of the"Integrity CommitmentStatement" with middle managersand key position personnel
Conducting Integrity Education
Organized 12sessions of the "Monthly IntegrityDiscussion at Office Meetings"
Conducted
sessions of integrity employmenttraining for new employees at alllevelsCompiled4 sessions of the
"Micro Classroom on Disciplineand Law"
Organized
sessions of warningeducation
at all levels to achieve100% coverage ofwarning education
with a total of 96participants
Smooth reporting channels
The Company continues to improve the supervision and protection network, open mailboxes, telephone and otherchannels for reporting letters and visits, clear acceptance of the scope of letters and visits, strict protection of thelegitimate rights and interests of whistleblowers and privacy; in the public bidding, selection of cadres, the person incharge of the enterprise to perform the duties of the treatment of the inspection, inspection, etc. work procedures inthe notice announcement, conscientious acceptance of public supervision, to achieve the supervision of the 'zero-distance, full coverage 'to create a good environment for clean and upright officers and entrepreneurs.
Build a firm line of defence of integrityThe Company layers of compaction of the main responsibility, and make every effort to promote the construction ofclean party and anti-corruption work, to strengthen the ‘key minority’
supervision, and solidly carry out the partydiscipline learning and education. Through organizing warning education conferences, collective integrity talks, andintegrity training sessions for cadres, the Company guides all employees to enhance their awareness of discipline, trulyunderstand laws and regulations, foster a sense of reverence and caution, and uphold moral boundaries. Thisapproach strengthens their commitment to integrity and self-discipline, building a solid ideological defense againstcorruption.
Letter-or-visittelephone：+86-0518-86070006
Complaint E-mail：jdzjzhs@zfsycf.com.cn
Integrity Warning Education Activity
4. Key Minority: refers to the key factors that drive development and, although small in number, lead the greatest strengths and forces for development.
Main communication methods and channelsStakeholderSmooth Communication with Stakeholders
Honors and awards: SSE information rating 'A' in 2024.
Main shareholders
General Meetings, press releases/announcements,Annual/Interim Results Conferences, Analyst Conferences,
roadshows, Company introduction days
Potential investors andfinancial institutions
Investor conferences, press releases/announcements,Annual/Interim Results Conferences, roadshows, Company
introduction days
Government andregulatory bodies
Telephone/ e-mail, government and regulatory meetings and
trainings, local government and corporate projectcooperation, regular corporate reporting
Employees
Corporate platforms, suggestion boxes and labor unionchannels, team building activities, employee satisfaction
surveys, workers' congress
Customers
Meetings and conferences, customer service hotline,customer satisfaction surveys, official account, social media
Partners
Work inspections and monitoring, supplier/contractorconferences, telephone/e-mail, meetings and conferences,
supplier evaluations
Diversified activities, smooth investor communication channelsCaseIn 2024, the Company organised a number of characteristic anti-roadshow communication activities in Shanghaiduring large-scale industry exhibitions. The chairman and general manager of the Company attended in-depthexchanges with a number of investment institutions and research analysts on the status quo of the carbon fiberindustry, technology research and development and its downstream application development, etc., whichguided the investors to deeply understand the Company's development strategy and operation situation, andconveyed the industry prospect and investment value to the market, thus promoting effective closed-loopcommunication and market feedback mechanism. Promote the effective closed loop of investmentcommunication and market feedback mechanism.
Investor Relations Seminar
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Zhongfu Shenying actively establishes diversified communication channels, making full use of 'traditional media +Internet', and takes the lead in organising a number of performance briefing sessions, special investor relations forumsand investor relations research activities. While maintaining high-frequency exchanges, in-depth communications andmulti-angle analyses, the Company maintains open and transparent information on platforms such as SSE e-Interactive, investor relations mailboxes and investor relations phone lines through the trinity of 'reading, expressingand communicating' to achieve efficient dissemination of information and accurate delivery, so as to join hands withits partners to jointly achieve sustainable development. together with our partners to achieve sustainabledevelopment.
Sustainable Development ColumnGovernanceEnvironmentSocial
Environment
Responding to material issues
ReducingpollutantemissionsEfficientenergyutilization
Wastemanagement
Respondingtoclimatechange
PromotingcirculareconomyWaterresourcesmanagement
Continuing to PromoteEnvironmentally Friendly ProductionAccelerating the Construction of aCircular System
Accelerating the Transition to Low-Carbon Production
Driving Green and LightweightDevelopmentProactively Addressing ClimateChange
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Pillars of sustainable development strategyTechnology Promoting GreenProduction
Innovation Driving CircularEconomy
Sustainable Development ColumnGovernanceEnvironmentSocial
Zhongfu Shenying integrates green development into the core strategy of the Company, and continues to promote theimplementation of the Carbon Peak Achievement and Carbon Neutral Work Implementation Programme with theprinciples of 'low-carbon leadership and technology-driven' and the path of 'circular economy and greenempowerment'. Focusing on the optimisation of industrial structure layout, green and low-carbon energytransformation, resource conservation and efficient utilisation and other aspects of the progress of work, the Companyset 'dual-carbon' targets in line with the development of enterprises, and set up energy-saving special teams, theimplementation of the energy performance appraisal system, to help achieve the goals. 2024, the Company completedthe established goals and set the 'dual-carbon' targets for 2025. In 2024, the Company achieved its target and set a'dual carbon' target for 2025 to consolidate the results of related work.
Zhongfu Shenying's 2024 "DualCarbon" Goals Completion
Status
Zhongfu Shenying's 2025 "dual-carbon" goals
Comprehensive energyconsumption per unit of
carbon fiber(ton/ton of carbon fiber)
reduced by 4%
Achieved
CO? emissions per unit
product(ton CO? equivalent/ton ofcarbon fiber)Achieved
Zhongfu Shenying's key energy-saving and carbon reduction performance
Key energy-saving and carbon reduction performance: Comprehensive energy-saving retrofitting has beencarried out. Through the upgrade of energy-saving process technologies and the recycling of energy for savings,
Compared with 2023:
The comprehensive energyconsumption per unit of product is
8.32 tons of standard coal per
ton of carbon fiber
the annual energy consumption hasbeen effectively reduced by
15,000 tons of standard coal
which can reduce greenhouse gas emissions byapproximately
39,000 tons of CO? equivalent
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The carbon dioxide emission per unit of carbon fiber in 2025 will decreaseby 6% compared to 2024.
The comprehensive energy consumption per unit of carbon fiber in 2025 willdecrease by 5% compared to 2024.
The specific electricity consumptionof the product has decreased by
2%
reduced by 4.4%Goal: 3%(2024 vs. 2023)
Goal: 3%
(2024 vs. 2023)
The specific steam consumptionhas decreased by8%
The greenhouse gas emissionper unit of product is
29.85 tons of CO?
equivalent per ton of carbon fiber
换成最新的全景图
航拍
Sustainable Development ColumnGovernanceEnvironmentSocial
Accelerating the Transition to Low-CarbonProductionZhongfu Shenying adheres to the principle of technology-driven low-carbon production. By optimizing productionprocesses, upgrading high-efficiency production equipment, and implementing intelligent energy managementplatforms, the Company is accelerating the optimization of its energy structure and reducing carbon emissions fromproduction operations. In 2024, the Company's main production base has obtained ISO 50001 Energy ManagementSystem certification.
Promoting Energy Conservation and EmissionReduction MeasuresThe Company is committed to efficient energy use and reducing energy consumption as the core of its energy-savingand carbon-reduction initiatives, accelerating the replacement and upgrading of green and low-carbon productionequipment. At the same time, the Company emphasizes and continuously conducts daily energy-saving training for allemployees, deepening their awareness of energy conservation and enhancing the efficiency of the green and low-carbon transition. This year, Zhongfu Shenying has implemented the following measures to promote energyconservation and emission reduction:
Replacing Coal-Fired Boilers with Natural Gas Boilers to ReduceEnergy Consumption and Carbon EmissionsThis year, the company has transitioned to using natural gas boilers in its production processes,achieving a significant enhancement in boiler thermal efficiency. This advancement has led to a
22.2% reduction in the comprehensive energy consumption per ton of steam. Moreover, when
compared to traditional coal-based methods, and taking into account both thermal efficiency andcarbon emission factors, the carbon dioxide emissions per ton of steam have been approximatelyhalved with the use of natural gas, showcasing a 50% decrease relative to coal.For measures related to energy recycling, please refer to the "Energy Cascade Utilization" section.
5. Big horse pulling a small cart refers to the power or capacity of power equipment (e.g. motor, boiler, engine, etc.) is much larger than the actual demand
Promoting Intelligent Energy ManagementThe Company is comprehensively advancing the construction of an intelligent energy management system, vigorouslypromoting the application of online energy monitoring platforms and Energy Management Systems (EMS). By utilizingsensors to collect real-time energy consumption data from production lines and dynamically adjusting the operatingmodes of production equipment through intelligent management systems, the Company has achieved refined energymanagement. This year, the Company deployed temperature sensors in carbonization furnaces, combined withalgorithms to dynamically adjust heating curves, reducing process deviations and ensuring the stability of thecarbonization process, thereby further enhancing energy use efficiency.Zhongfu Shenying's Xining facility has established a new three-dimensional integrated warehouse, introducingautomated equipment such as robotic arms and conveyor vehicles to replace manual operations. The use of electroniclabels and automated warehousing systems enables real-time tracking of raw material and finished product inventory,significantly improving storage turnover efficiency and data accuracy, while effectively enhancing resource utilization.
Accelerating the Green Energy TransitionThis year, the Company has accelerated the adoption of clean energy and the transition to green electricity. Leveragingthe geographical advantages of its operational locations, the Company has collaborated with nearby power stations toprioritize the procurement and use of clean energy. Additionally, the Company actively participates in carbon marketmechanisms to expedite the comprehensive green transformation of its energy sources. This year, the Company's totalannual consumption of renewable energy, including wind, solar, and hydropower, reached 321.80 million kilowatt-hours, with the purchase of "certified and integrated" green electricity amounting to 53.74 million kilowatt-hours.Furthermore, upon the completion of Zhongfu Shenying's Lianyungang 30,000-ton high-performance carbon fiberproduction base, the facility will actively utilize steam generated from nearby clean energy sources and offshorephotovoltaic power, among other clean energy solutions, to comprehensively expand the coverage of clean energy useand effectively reduce carbon emissions from production operations.Adopting low-temperatureoperation processes,achieving a reduction insteam consumption byapproximately 15%;
Optimizing the operational load ofproduction, lighting, air conditioning, andother equipment to avoid the "big horsepulling a small cart”
phenomenon,
effectively reducing energy waste;
Collaborating with externalorganizations to carry out
electricity-savingrenovations, improvingenergy use efficiency.
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Sustainable Development ColumnGovernanceEnvironmentSocial
Implementing Comprehensive Green Office PracticesThis year, the Company has implemented comprehensive water and energy-saving activities in office operations andstrive to achieve paperless office operations goal, actively practicing the concept of green office:
Energy-Saving Measures?Revised theAir Conditioning Management System, requiring summer air conditioning temperatures to be setbetween 20-26°C and winter temperatures between 18-22°C. Energy-efficient lighting has been installed, andmotion-sensor/voice-activated lights are used in office buildings. Employees are encouraged to turn off lightsduring lunch breaks, and regular inspections are conducted to ensure lights and air conditioning are turnedoff when not in use.?Implemented stricter management of official vehicles to reduce fuel consumption and optimized shuttle bus
routes by canceling unused stops, improving transportation efficiency, and reducing empty vehicle runs.?Replaced kitchen utensils with energy-efficient ones, utilized variable frequency and timed controls for
kitchen air conditioning and ventilation systems, and strictly enforced the policy of "lights off when leaving
and power off after work."
Water-Saving Measures?Conducted regular maintenance of water and electrical equipment in office buildings to avoid resource waste.
Paperless Office Practices?Adopted digital office solutions, transitioning processes such as form applications and official seal usage toonline approvals. The double-sided printing policy was strictly enforced, saving approximately 20,000 sheetsof paper annually and reducing the printing of paper materials by about 1,500 copies.?Organized multiple paperless office training sessions to enhance employees' environmental awareness andtechnical application capabilities.
Continuing to Promote EnvironmentallyFriendly ProductionZhongfu Shenying has always adhered to the principle that "lucid waters and lush mountains are invaluable assets,"integrating ecological and environmental protection into every aspect of its production and operations tocomprehensively advance clean production. The Company actively optimizes its environmental management system,vigorously promotes green and efficient production processes, and adopts low-emission, environmentally friendlyproduction equipment to further reduce its environmental impact. This year, Zhongfu Shenying was awarded theLianyungang Enterprise Environmental Protection Quality Award.
Improving Environmental ManagementZhongfu Shenying continues to strengthen its environmental governance system, strictly complying with local lawsand regulations. Through institutionalized management, the Company has solidified the foundation of itsenvironmental protection efforts. It has established internal management systems such as theEcological andEnvironmental Protection Responsibility Systemand theEnergy Conservation and Ecological EnvironmentalProtection Supervision and Management Measuresto standardize the environmental management processes of itsdaily operations. This year, all of the Company's production bases have obtained ISO 14001 EnvironmentalManagement System certification.Optimizing the Environmental Management Structure
To efficiently advance environmental management, the Company has adjusted its environmental managementstructure this year. Under the Company headquarters, an Environmental Protection Leadership Group has beenestablished to coordinate safety and environmental protection management. A management system has been builtwith headquarters control as the core, guided by the Digital Information Department, and with subsidiaries andworkshops assuming primary responsibilities.Environmental ProtectionLeadership GroupComposed of the general manager asthe director, deputy general managersas deputy directors, and heads ofsubsidiaries, departments, and mid-level managers from headquarters,responsible for overseeing theCompany's environmental protection
work.
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Digital Information Department(Safety and Environmental Protection
Department) at Headquarters
Under the guidance of theEnvironmental Protection Leadership
Group, responsible for formulatingenvironmental management policies
and objectives.
Subsidiaries and WorkshopsResponsible for implementingecological and environmentalprotection measures in productionaccording to established policies.
Sustainable Development ColumnGovernanceEnvironmentSocial
Refining Environmental Management Systems
To further implement environmental management, Zhongfu Shenying revised theEcological and EnvironmentalProtection Management Manual (Interim)this year, clarifying the scope of institutional processes and managementresponsibilities as follows:
Updating and Integrating Existing Environmental Systems
Conducted in-depth revisions to 16 core systems, including the Environmental Protection ResponsibilitySystem, Emission Permit Management, Environmental Emergency Management, and Hazardous WasteManagement, optimizing management processes.Adding New Environmental Management Systems
Introduced systems for environmental safety hazard inspections, environmental information disclosure,pollution source monitoring, Leak Detection and Repair (LDAR) management, and clean production,enhancing refined management of volatile organic compounds (VOCs) emissions, wastewater reuse, andsolid waste reduction.Clarifying Responsibilities
Detailed the responsibilities of workshops for managing "three wastes" treatment facilities and solid wastestorage; clarified the division of responsibilities for waste gas, wastewater treatment, and emergencyresponse; and standardized the entire process of hazardous waste classification, temporary storage, anddisposal to ensure the efficient operation of the environmental management system.Zhongfu Shenying's Xining branch revised theZhongfu Shenying Carbon Fiber Xining Co., Ltd. Ecological andEnvironmental Protection Responsibility Systemand theZhongfu Shenying Carbon Fiber Xining Co., Ltd.Environmental Protection Management System Compilation, further clarifying and detailing the environmentalresponsibilities of positions and the management requirements for production process emissions, strictly implementthe responsibility for ecological and environmental protection, achieving more efficient environmental management.
Implementing Environmental Performance EvaluationThe Company systematically promotes the implementation of environmental indicators and goals by incorporatingenergy conservation, emission reduction, and other environmental metrics into the annual performance evaluations ofmanagement. Leaders at all levels are required to sign theEnergy Conservation and Environmental Protection TargetResponsibility Agreement, clarifying their environmental responsibilities and performance evaluation criteria. This hasestablished a management mechanism where environmental responsibilities are progressively enforced andevaluations are stringent, effectively enhancing management's awareness of environmental protection.Real-Time Environmental Monitoring
The Company actively encourages its subsidiaries to fully identify and proactively prevent environmental risks. Itrequires the formulation of self-monitoring plans for the environment and regularly collaborates with externalprofessional organizations to conduct environmental monitoring. This ensures real-time tracking of emission data andeffectively controls compliance risks related to emissions. This year, the Company's monitoring results have all metnational standards, and it has fully achieved its annual environmental protection goals.
Ensuring Emergency SafetyThe Company continues to adhere to management systems such as theZhongfu Shenying Carbon Fiber Co., Ltd.Emergency Environmental Incident Management Measuresand theZhongfu Shenying Carbon Fiber Co., Ltd.Emergency Environmental Incident Response Plan Management Measures. It has also revised theZhongfu ShenyingCarbon Fiber Xining Co., Ltd. Emergency Environmental Incident Response Planto improve emergency responsemeasures for natural disasters. Additionally, the Company has installed lightning protection and flood controlemergency response equipment in workplaces. This year, the Company organized both comprehensive andspecialized emergency drills to enhance its ability to respond to environmental emergencies and improve emergencyrisk management capabilities.
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Sustainable Development ColumnGovernanceEnvironmentSocial
Continuing to Promote Clean ProductionZhongfu Shenying is continuously improving its pollutant management measures, intensifying efforts to treat wastegas, waste materials, and wastewater, and steadily advancing the application of diversified emission reductionmeasures. In 2024, Zhongfu Shenying successfully achieved its annual pollutant emission targets and has set goals for2025 based on actual conditions. Details are as follows:
| Pollutant | 2024 Target | Progress | 2025 Target |
Waste Gas
3% reduction in emissions compared to 2023Achieved2% reduction in emission intensity per unit product
Waste GasWasteMaterials
100% compliance rate for general solid wasteand hazardous waste disposal
Achieved100% compliance rate for general solid waste and
hazardous waste disposal
| Waste Materials |
| Wastewater |
3% reduction in emissions compared to 2023Achieved3% reduction in emission intensity per unit productWaste Gas ManagementThe Company maintains high standards and strict requirements for waste gas emission management, vigorouslypromoting the upgrading and replacement of waste gas treatment facilities to enhance the efficiency of waste gascollection and treatment. This ensures effective implementation of full-process waste gas management.
21.10% compared to 2023
This year, the Company's total wastegas emissions (VOCS) decreased by
4.30%
and the waste gas emission (VOCs)intensity per unit product wasreduced by
Application of Diversified Exhaust Emission Reduction MeasuresCollection and Treatment of Unorganised ExhaustGases?Implement the project of collecting unorganised
waste gas in the polymerisation workshop,adopting the process of 'pre-treatment + alkalinewashing + acid washing + water washing' to realisethe organised emission of waste gas.?Plastic roller blinds are installed in the raw silkworkshop to reduce the confined space, improvethe efficiency of exhaust gas collection, andprevent and control the spread of odour.
Application of electrostatic oil removal technology
?Normal temperature electrostatic degreasing technology isintroduced into the drying waste gas treatment in the raw silkworkshop, which effectively removes the odour of silicone oiland ensures that the discharge meets the standard throughmulti-stage purification such as pre-treatment filtration,spraying, and rapid cooling tower.?In the carbonisation workshop, the combination process of
'circulating water cooling + high-energy electromagneticionisation + deep purification and whitening' is adopted toprovide in-depth treatment of the exhaust gas, remove theodour and achieve colourless gas emission.Optimisation of equipment and storage tanks
?Modify the waste water storage tank of the originalsilk workshop, and change the underground low-level tank into an above-ground horizontal tank,so as to reduce the failure rate of pumps and theescape of disorganised waste gas, and reduce therisk of soil and groundwater pollution.
Combined deep purification process
?In the waste gas treatment of carbonisation workshop,combining the front-end processes such as rapid cooling tower,oxidation tower and absorption tower, we have added thetechnology of 'high-energy electromagnetic ionisation + deeppurification and whitening', which further reduces the odourand improves the cleanliness of the emission.
Waste Management
The Company adheres to the principles of "safety, compliance, and reduction," strictly complying with national laws,regulations, and local requirements. It has established a comprehensive management system covering wasteclassification, temporary storage, and transfer, focusing on system construction, process control, employee training,and technological upgrades to achieve refined management of the entire waste lifecycle and ensure 100% compliancewith disposal standards. Specifically for hazardous waste, each of the Company's production bases has establishedindependent hazardous waste storage points and containers. Leveraging digital information technology, the Companycollects real-time data on the types and weights of waste, ensuring that waste information is manageable, visible, andcontrollable. Additionally, the Company collaborates with qualified third parties to ensure compliant disposal of waste,achieving "zero external discharge" of hazardous waste.This year, Zhongfu Shenying's Xining facility advanced waste reduction by strengthening waste storage management.As a result,
Wastewater Management
The Company strictly adheres to national laws, regulations, and local wastewater discharge standards, continuouslystrengthening wastewater discharge control. Multiple measures are employed to ensure compliant wastewatertreatment and reduce wastewater emissions.
25.90% year-on-year
hazardous wastegeneration decreased by
The Dapu facility has equipped itsworkshops with rainwater collection
facilities and emergency pools.
Establishing Rainwater
Collection Pools
The Xining facility conducted pipelinenetwork renovations and inspectionsto address rainwater leakage andpotential pollution sources, ensuringcompliant sewage discharge.
Pipeline NetworkRenovation and Inspection
The Xining facility utilized wastewaterammonia evaporation equipment toreduce ammonia nitrogen levels,followed by biochemical systemtreatment. Throughout the year,69,070 cubic meters of high ammonia
nitrogen wastewater were treated.
Ammonia NitrogenSpecial Treatment
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15.60%
general industrial solid wastegeneration decreased by
18%and the comprehensive recycling rateof general solid waste increased by
20.79%
Furthermore, hazardous waste generationper unit product decreased by
9.78%
and solid waste generation per unitproduct decreased by
24.54% year-on-year
This year, wastewater discharge at ZhongfuShenying Dapu facility decreased by
34.97%
while at the Xining facility,it decreased by
Sustainable Development ColumnGovernanceEnvironmentSocial
Accelerating the Construction of a CircularSystem
Zhongfu Shenying is vigorously advancing the circular use of natural resources through technological innovation andpractical applications in four key areas: energy cascade utilization, water resource recycling, waste resource utilization,and resource recovery. The Company actively promotes measures such as waste heat recovery and reclaimed waterreuse to maximize resource efficiency and reduce the consumption of natural resources.Energy cascade utilizationThe Company continuously promotes energy recycling technologies within its production processes to achieveefficient energy utilization. This year, the Company has actively implemented measures to recover waste heat andsteam during production stages. It utilizes externally purchased steam and the waste heat generated from high-temperature flue gases during the carbonization process, classifying them based on pressure and temperature. Theseresources are effectively allocated according to production needs: high-temperature heat is prioritized for productionprocesses, while low-temperature heat is used for preheating materials and raising ambient temperatures. Thisapproach ensures "high-quality use for high-demand purposes and low-quality use for low-demand purposes,"transforming external energy input from "linear consumption" to "circular utilization." This reduces external energydependency and indirectly lowers greenhouse gas emissions. Additionally, the integration of intelligent technologiesfurther enhances the efficiency of energy cascade utilization. During the year, the Company achieved a waste heatrecovery utilisation rate of 70% through the application of its own upgraded equipment, which reduced greenhousegas emissions by approximately 50,000 tonnes of carbon dioxide emissions equivalent for the year.
Comprehen-sive utilizati-on of waste
The gradedutilizationof energy
Constructing the product recycling systemFacilitating high-quality recycling of carbon fiber products
Contributing to green andlightweight development
Empowering low-carbon solutions forcarbon fiber applications
Promoting the circularutilization of natural resources
Developingcomprehensiveutilization ofproduction resourcesfor carbon fiber
Zhongfu Shenying “double recycling” development model
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The Company actively promotes flue gaswaste heat recovery technology by installingmulti-stage heat exchangers inside boilers tocollect high-temperature waste heat forsupplying condensers and preheating boilerwater. It employs an intelligent controlsystem to dynamically adjust the load ofrecovery equipment, maximizing theefficiency of waste heat recovery andenhancing the cascade utilization of energy.
Additionally, the Company implements flashsteam recovery technology for raw silkproduction, capturing flash steam generatedfrom high-temperature cylinder condensate.
This initiative saves over 19,000
47,000tons of CO? equivalentand reduces greenhouse gas emissionsby approximatelytons of standard coal annually
2,800 tons of CO? equivalent
and reduces greenhouse gas emissions byapproximately1,100 tons of standard coal annuallyThis saves 1 ton of steam per hour, equivalent to
Sustainable Development ColumnGovernanceEnvironmentSocial
Waste Resource UtilizationThe Company emphasizes strengthening the resourceutilization of waste and actively collaborates withqualified third-party waste treatment entities to recycleand reuse waste suitable for biomass power generation.Together, we strive to promote the development of acircular economy in society.
of waste used for biomass powergeneration through partnerships,implementing the concept of wasteresource utilization.
In 2024, Shenying Dapu recycled nearly
Resource Recycling and Utilization
10% year-on-year
By employing these systems, the Company purifiesand reuses DMSO, reducing the consumption of DMSOmaterials per unit product by over
Driving Green and LightweightDevelopmentZhongfu Shenying continues to deepen the low-carbon transformation of its value chain, providing high-quality carbonfiber materials to enhance energy efficiency in downstream industries. Leveraging its excellent properties of highstrength, low density, and high-temperature resistance, the Company's products are widely used in aerospace,automotive, rail transportation, and construction and bridge sectors. These applications significantly reduce theweight of downstream products, effectively lower energy consumption during usage, extend product lifespan, andstrengthen the circular economy attributes of the products. Simultaneously, the Company continues to supply high-performance, high-quality carbon fiber products to industries such as new energy, public transportation, and low-altitude aviation, providing core raw materials to customers across multiple sectors and supporting the vigorousdevelopment of green industries.
The Company's high-strength, medium-modulus carbon fiber products have beeneffectively utilized in rail transportation, reducing train weight by 10%-25% and loweringenergy consumption by 15% for the same distance traveled.
RailTransportation
The Company's high-strength, medium-modulus carbon fiber products have beensuccessfully applied in the automotive sector, reducing the weight of certain componentsby approximately 30%-60%, improving fuel efficiency by about 20%-50%, and decreasingfuel consumption by 1.8-7.2 liters per 100 kilometers.
Automotive
Industry
The Company's high-strength, medium-modulus carbon fiber products have beenimplemented in cable-stayed bridges. Compared to traditional steel materials, carbonfiber's lightweight, high stiffness, low creep, and corrosion-resistant characteristics canextend the lifespan of bridge construction projects by 30 years.
ConstructionApplications
This year, the Company has supplied over 8,000 tons of carbon fiber materials to the newenergy, public transportation, and low-altitude aviation industry, comprehensivelyempowering the rapid development of the sector.New Energy
SectorZhongfu Shenying Contributes to the Creation of the World's Longest Onshore Wind Turbine BladeCaseIn January 2024, the world's longest 131-meter onshore wind turbineblade was successfully manufactured and rolled out in China. The corematerial of this blade is derived from Zhongfu Shenying's dry-jet wet-spun 48K high-performance carbon fiber. Leveraging the properties ofcarbon fiber, the product extends the length of the blade, increasing theswept area of the wind turbine. This enhancement significantly booststhe power generation capacity of a single unit and reduces the numberof turbines required for the same energy output, effectively improvingthe efficiency of wind power generation.
Recycling of water resources
Aiming for "zero discharge" and "full recycling" of industrial wastewater, the company vigorously promotes wastewaterrecycling in production. It collects high - quality condensate from carbonization workshop equipment like dryers andboilers, recovering 15 tons per hour to cut water waste. A multi - stage circulation water - making process boostsmembrane separation efficiency and uses the separated water for firefighting, dust control, and irrigation, maximizingreuse. This year, the company increased investment in reclaimed water projects to enhance the wastewater recyclingsystem's efficiency, achieving:
1,451,500 tonnes
the water reuse is increased to
700,000 tonnes
the amount of fresh water withdrawn is reduced by
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The Company enhances the circular utilization ofproduction resources and focuses on technologicalimprovements to boost recycling efficiency. Throughindependent research and development, the Companyhas designed a multi-level, high-airflow dimethylsulfoxide (DMSO) recovery system, achieving completerecovery of high-concentration DMSO non-condensablegases. Additionally, the Company has conducted multi-level technological research and application, utilizinghigh-temperature steam extraction processes to fullyrecover DMSO from waste slurry.
Sustainable Development ColumnGovernanceEnvironmentSocial
15%
Zhongfu Shenying Contributes to the Launch of the World's First Commercial CarbonFiber Metro TrainCase
In June 2024, the world's first commercially operatedcarbon fiber metro train, the "CETROVO 1.0 CarbonStar Express," was officially unveiled in Qingdao.Utilizing Zhongfu Shenying's T700-grade high-performance domestically produced carbon fiber,the train successfully incorporates composite load-bearing components—carbon fiber metro bogies.Compared to traditional metal components, thisinnovation achieves a 50% weight reduction,enabling the metro train to increase its speed by 55%and reduce operational energy consumption by 7%.Each train can reduce carbon dioxide emissions byapproximately 130 tons annually, equivalent toafforesting 101 acres of land.
Zhongfu Shenying Supports the World's First Flight of a New Energy Flying CarCaseIn November 2024, the 15th China International Aviation and Aerospace Exhibition officially commenced inZhuhai, Guangdong. Leveraging its lightweight, high-strength, and temperature-resistant dry-jet wet-spun carbonfiber, Zhongfu Shenying successfully contributed to the world's first flight of a flying car. The use of lightweightand high-strength carbon fiber materials in key components such as the fuselage, wings, and seats not onlysignificantly enhances the performance of the eVTOL (electric Vertical Take-off and Landing aircraft) but alsoeffectively improves its flight efficiency.
Proactively Addressing Climate ChangeZhongfu Shenying deeply recognizes the impact of climate change on the sustainable development of enterprises andplaces high importance on the risks and opportunities it presents to daily operations. Drawing on theTask Force onClimate-related Financial Disclosures (TCFD), the Company integrates key factors such as market dynamics, industrycharacteristics, and its sustainable development strategic planning to further identify and analyze the impact ofclimate change. It has systematically outlined major risks, opportunities, and corresponding mitigation measures.
GovernanceTo better address the challenges posed by climate change, the Company has embedded climate changeconsiderations into its sustainable development governance framework (see the "Sustainable DevelopmentGovernance Framework" section of this report). This ensures the effective implementation of climate strategies,reduces the impact of climate risks on operations, and identifies climate-related opportunities. By leveraging thetrends of clean energy transition and low-carbon development, the Company supports its own green growth and thatof society as a whole.
Strategy
Based on its operational realities and future climate change trends, the Company analyzes the potential short-,medium-, and long-term impacts of climate risks and opportunities on its development strategy and business model. Itactively optimizes its risk management system and action plans to achieve systematic management of climate-relatedrisks and opportunities.According to the analysis, the Company primarily faces transition risks related to policies and regulations, technology,and market/reputation. While these may have some impact in the medium to long term, the Company is mitigatingthese risks by increasing the use of clean energy in production, developing integrated offshore wind and solar powerprojects, and optimizing high-energy-consuming equipment (see the "Accelerating Low-Carbon Transition" section).Additionally, it actively monitors policy trends related to low-carbon transition, resulting in a relatively low impact fromtransition risks.Regarding physical climate risks, the Company has identified acute and chronic risks such as increased extremeweather events and rising sea levels in the medium to long term. However, considering its operational locations,continuous improvement of risk monitoring systems, and robust emergency response measures (see the "RiskManagement" and "Enhancing Environmental Management" sections), the overall level of physical climate risksremains low.The table below details the climate risks identified by the Company based on its business characteristics.
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Sustainable Development ColumnGovernanceEnvironmentSocial
Identify climate risksTransition risks
Risk description and potential impactTimeframeResponse measuresPolicy and legalAs the nation actively advances its "DualCarbon" goals, regions across the countryhave introduced new carbon reductionpolicies, imposing stricter decarbonizationrequirements on high-emission economicactivities, which may increase the Company'scompliance costs.With the steady growth of ZhongfuShenying's business and its gradualexpansion into overseas markets, theintroduction and guidance of the UnitedNations' Paris Agreement have promptedcountries and regions worldwide toimplement more stringent carbon emissionpolicies (such as the European Union'sCarbon Border Adjustment Mechanism). Thiscould lead to higher operational compliancecosts for the Company.
Medium, long-term
Proactively monitor industry and regionallow-carbon policy changes, and based onthe Company's sustainable developmentstrategy, continuously increase theproportion of clean energy such asphotovoltaic and wind power. Graduallyimplement product carbon footprintcertification, adhere to the principles ofthe circular economy, and accelerate thegreen and low-carbon transformation ofthe Company's operations and products.
TechnologyAgainst the backdrop of the nation's ongoing
optimization of energy consumption
structures, the Company needs to accelerate
the iteration of low-carbon process
technologies, thereby increasing the
economic costs associated with research and
technological substitution.
Short,medium term
Enhance the efficiency of cleantechnology research and transformation,encouraging all production bases toactively adopt new technologies andmethods for energy conservation andcarbon reduction, striving to achievesynergistic development of low-carbontransformation and cost efficiency.Market/reputation
Downstream customers and value chain
partners are increasingly prioritizing the low-
carbon attributes of products and services,
placing higher demands on Zhongfu
Shenying's products. If the Company fails to
swiftly adapt to market changes and meet
market expectations, it may face barriers to
developing new markets.
Short,medium, longterm
Proactively identify the low-carbonrequirements for carbon fiber products indomestic and international markets, andcarry out work to reduce the carbonfootprint of products in a step-by-stepmanner.Actively communicate with partners,promoting the advantages of products infacilitating low-carbon development, andconducting low-carbon-relatedcertification for products to enhancemarket recognition.Implement the sustainable developmentstrategy, improve ESG and othersustainable development informationdisclosure, and elevate the Company'ssustainable development image.
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Physical risks
Risk description and potential impactTimeframeResponse measuresImmediateClimate change has led to an increasedfrequency of extreme weather events such asfloods and typhoons, which may result inpower outages, water shortages, anddamage to transportation infrastructure.These disruptions can affect the Company'snormal operations and cause economiclosses.
Short,medium, longterm
Establish a supply chain protectionmechanism and conduct emergency drillsfor natural disasters based on the climaticcharacteristics of the operationallocations to ensure sufficient emergencysupplies.Upgrade production and operationalequipment to be more resilient to climate-related challenges, enhancing the abilityto withstand natural disasters.
Long-termClimate change is causing a continuous rise
in global temperatures, potentially leading to
chronic risks such as rising sea levels,
changes in water resource distribution, and
increased occurrences of extreme heat.
These factors may have long-term impacts
on the Company's operations, including the
need for relocation of operational sites,
increased demand for cooling equipment,
and higher frequency of equipment
maintenance. Such scenarios could
significantly increase the Company's
operational costs.
Medium, longterm
Sustainable Development ColumnGovernanceEnvironmentSocial
MarketMedium,
Long-term
To achieve low-carbon development goals, countries and regionsworldwide are strongly supporting the application of carbon fibermaterials in industries such as aerospace, wind turbine blades, andautomotive manufacturing. Zhongfu Shenying has established a "high-end" strategic positioning, actively responding to the demand for thegreen and environmentally friendly attributes of carbon fiber materialsacross industries. The Company is seizing new market opportunities andcreating new growth points for its business.
Energy SourcesShort,
Medium,Long-term
Zhongfu Shenying continues to increase the proportion of clean energyuse, with wind, solar, and hydropower accounting for 70% of its energymix. The Shenying Lianyungang facility will utilize offshore photovoltaicand steam generated from clean energy as energy sources, effectivelyaddressing the rising compliance costs due to carbon reduction policiesand preparing for future participation in the carbon market, unlockingnew commercial opportunities.
Risk Management
Zhongfu Shenying remains vigilant about the impact of climate-related risks on its operations and activelyidentifies, analyzes, and assesses these risks and opportunities. During the risk identification process, theCompany engages in extensive communication with various stakeholders to thoroughly understandpotential risk types. It conducts detailed analyses of the impacts of key risks identified through theseinteractions, ensuring comprehensive identification of climate change-related risks. For more detailedinformation on risk management, please refer to the section "Deepening Comprehensive CorporateGovernance – Risk Management."Metrics and Targets
Zhongfu Shenying recognizes that reducing its own carbon emissions is an effective way to manageclimate-related risks. The Company has developed a detailed energy conservation and emission reductionplan and regularly reviews its progress. For more information on Zhongfu Shenying's climate-relatedenergy conservation and carbon reduction targets, please refer to the section "Environment: ZhongfuShenying's 2025 'Dual Carbon Goals'."
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Seizing Climate OpportunitiesZhongfu Shenying consistently promotes the innovative application of carbon fiber materials, focusing on providinghigh-quality carbon fiber products to emerging green and low-carbon industries such as low-altitude aviation, publictransportation, new energy vehicles, wind turbine blades, and energy storage. This ensures precise alignment with theevolving low-carbon development needs of value chain partners. By capitalizing on new market opportunities for low-carbon development, the Company is building a green technology ecosystem, driving green technology upgradesacross the industrial and value chains, and injecting strong momentum into the green transformation and sustainabledevelopment of society as a whole.The table below details the climate opportunities identified by the Company based on its business characteristics.
OpportunityDescription andPotential ImpactTimeframeResponse MeasuresProducts andServices
Short,Medium,Long-term
Zhongfu Shenying is committed to assisting the value chain in achievinggreen and low-carbon development. The Company is significantlyincreasing the proportion of green and clean energy use, graduallyoptimizing production processes, and striving to create green and low-carbon products. By proactively addressing low-carbon developmentneeds, Zhongfu Shenying provides greener and lighter solutions fordownstream customers and supplies high-quality carbon fiber forindustries such as wind power, photovoltaics, and energy storage,supporting the high-quality development of the new energy sector.
Sustainable Development ColumnGovernanceEnvironmentSocial
Social
Responding to material issues
InnovativeresearchanddevelopmentPursuingproductquality
EmployeecareEmployeehealthandsafety
Sustainable
supplychain
Providingquality
services
Commitment to Technological InnovationImplementing Intrinsic Safety
Strictly Ensuring Product Quality
Fully Safeguarding Employee RightsComprehensively Promoting TalentDevelopmentDeepening Corporate ResponsibilityOperationsDedicated to Creating Social Value
Safeguardingemployeerightsandinterests
Community
contributionSupportforEmployeeDevelopment
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Steadfastly Advancing IntelligentDevelopment
Pillars of sustainable development strategyTalents BuildingExcellent Teams
Quality PenetratingHigh-End Markets
Sustainable Development ColumnGovernanceEnvironmentSocial
Strictly Ensuring Product QualityZhongfu Shenying consistently adheres to the "zero-defect" quality management philosophy, viewing product qualityassurance and enhancement as the cornerstone of the Company's high-quality development. Centered on theprinciple of "The systematisation of the quality management system and the quality-oriented systematisation of
management," and guided by the excellence performance management model, the Company continuously explores
and optimizes a quality management system with Zhongfu Shenying's unique characteristics. In 2024, all majorproduction bases of the Company have obtained ISO9001 Quality Management System certification, and no productrecalls due to safety or quality issues occurred.
Strengthening Quality Management Capabilities
Zhongfu Shenying continuously strengthens its quality management capabilities by improving the qualitymanagement system, enhancing raw material management, tightening production process controls, introducing newtechnologies and materials, establishing a quality auditor system, and actively listening to customer feedback. Basedon the management requirements and actual operations of the quality management system, the Company clearlydelineates the functions of various departments and designates specialists to supervise and inspect the system'simplementation. Through a combination of "positive promotion + reverse inspection," potential weaknesses in systemmanagement and operational issues are promptly identified. The Company conducts thorough reviews andrectifications of identified problems, continuously tracks the effectiveness of these rectifications, and ensures theeffective operation of the quality management system.
Zhongfu Shenying's Comprehensive Quality Management Process
Evaluate whether the product process design is scientifically sound to avoid defects orshortcomings in the product design that could lead to issues during actual use.Product DesignPhase
Assess the quality management capabilities of raw material suppliers and conduct qualitysampling and traceability management of raw materials to ensure they meet productrequirements.
Raw MaterialSupply Phase
Regularly assess the stability of the production line and process control to ensure that thequality management system is effectively implemented, fully identify the potential impactof errors on product quality, analyse the failure rate and improve the production processin a timely manner, strengthen the quality inspection, and improve product quality fromthe source.
ProductionPhase
Upgrade packaging materials by replacing PE shrink film with POF shrink film to enhanceproduct bundling and prevent damage during unpacking.
ProductPackaging
Phase
Strengthen the management of product storage environments to prevent quality issuescaused by moisture, heat, or contamination. Introduced a random sampling mechanismfor stored products, allowing timely detection of abnormalities and implementation ofcorrective measures to improve the qualification rate of outgoing products.
ProductStorage Phase
Optimize logistics and transportation plans to avoid damage or deterioration duringtransit, ensuring the safety and integrity of products.
ProductTransportation
Phase
Established a dedicated customer service team, introduced Product Delivery Managers,adopted diversified communication channels, and strengthened cross-departmentalcollaboration through a series of integrated measures to promptly address customerfeedback and enhance operational efficiency.After-SalesPhase
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Combine automated testing equipment with manual re-inspection to conduct weeklyquality routine checks. Quality inspection weekly reports are issued, and solutions arepromptly communicated with relevant departments to improve product testing efficiency.
Product TestingPhase
Sustainable Development ColumnGovernanceEnvironmentSocial
We also place great emphasis on potential health and safety risks during product usage. We regularly conduct healthand safety risk assessments from three perspectives: product safety, user operation risks, and environmentaladaptability. This ensures that our products do not pose any harm to customer health and effectively safeguards theirwell-being and safety.
Zhongfu Shenying Product Health and Safety Risk Assessment
Product Safety
Assessment
Conduct safety tests onproducts to ensure theycomply with relevant safetystandards and regulations,preventing any adversehealth impacts on usersduring product usage.
User Operation RiskAssessmentAnalyze potential improperoperations or misuse by usersduring product usage. Based onthese findings, we prepare productusage instructions and providesafety warnings to guide users incorrect product usage, avoidingpotential safety issues.
Environmental Adaptability
AssessmentEvaluate the adaptability andstability of products underdifferent environmentalconditions to ensure theyfunction properly in variousscenarios, thereby preventingpotential health and safetyhazards.
Cultivating a Culture of Quality ImprovementZhongfu Shenying focuses on enhancing product quality by fostering a culture that prioritizes accident prevention andquality improvement. The Company continuously strengthens the quality awareness of all employees and encouragesthem to proactively engage in quality improvement activities. This year, the Company further refined the QualityAccountability and Incentive System, detailing the classification of quality incidents and the accountability process,and introduced special rewards for quality improvement initiatives. This ensures clarity in quality managementresponsibilities, fair rewards and penalties, and a well-documented foundation for actions.We fully leverage the roles of quality auditors in the Company's quality management system, including supervision,advisory, communication, interface, and leadership. The Company has formulated and issued the Internal AuditorManagement Measures, implementing a registration, evaluation, and tiered management mechanism for qualityauditors. This ensures the effective operation and continuous improvement of the Company's quality managementsystem.
Internal Quality Auditor Enhancement ProgramCaseTo improve the comprehensive capabilities of internal quality auditors, theCompany established a Quality Auditor Enhancement Program. Throughknowledge sharing, interactive discussions, and practical case studies, theprogram helps quality auditors master more practical quality managementtechniques and methods, continuously enhancing their qualitymanagement and auditing skills. In 2024, the Company organized 11training sessions for the Quality Auditor Enhancement Program, with 123participants successfully completing the training.
This year, the Company launched a "Quality Month" eventwith the theme "Cultivating a Quality Culture, BuildingQuality Trust." The event focused on six key modules: qualitycompetitions to showcase skills, risk identification toeliminate hazards, quality improvement for breakthroughs,quality training for growth, quality audits for enhancement,and quality culture to foster awareness. These initiativesaimed to comprehensively elevate the quality managementawareness and capabilities of all employees.
The Company conducted a total of 105quality-related training sessions across all levels,involving4,027 participants.
Quality Competition to Showcase StrengthOrganized an online knowledge competition for allemployees to enhance quality awareness, with 2,826participants. Conducted the "Courage to Innovate,Forever Craftsmanship" selection activity, recognizing8 employees with outstanding contributions, highprofessional standards, and strong innovationcapabilities, setting benchmarks and promoting thespirit of craftsmanship.
Quality Knowledge Competition
Quality Training for Growth
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Organized 105 specialized training sessions onsystem knowledge, QC case analysis, and job skills forquality management personnel, process technicians,and frontline workshop employees, achieving 4,027qualified training participants. This initiative furtherstrengthened quality responsibility and enhancedoverall quality awareness. Shenying Xining conducted38 specialized training sessions, with 2,226 qualifiedparticipants.
Quality Knowledge CompetitionQuality Audits for ImprovementGuided by the goal of management enhancement, aseries of quality audit activities were organized,including internal audits, cross-audits, and supplieraudits. These activities systematically andindependently inspected and evaluated the qualitysystem, solidifying the foundation of qualitymanagement and safeguarding product quality.
Quality Audit
Cultivating a Quality CultureLaunched quality essay and micro-video collectionactivities, rooted in full employee participation, toimplement the quality culture of "Building Dreamswith Originality, Pursuing Excellence withCraftsmanship." This initiative continuouslycommunicates Zhongfu Shenying's qualitymanagement philosophy.
Quality Essay Competition
Sustainable Development ColumnGovernanceEnvironmentSocial
Strengthening Quality Testing CapabilitiesThis year, the Company's testing center successfully passed the CNAS system re-evaluation and expanded the testingitems and methods for polyacrylonitrile-based carbon fibers, achieving a recognized capability scope of 23 items.Additionally, the Company innovated and improved 9 testing methods, enhancing testing efficiency and accuracywhile effectively reducing testing costs, providing solid support for ensuring product quality. In 2024, the Company'stesting center achieved a 100% accuracy rate and a 100% timeliness rate for test results.
Commitment to Technological InnovationZhongfu Shenying is steadfast in driving sustainable enterprise development through technological innovation,shouldering the national responsibility in the field of new materials. Rooted in independent innovation, the Companyaligns with international advanced carbon fiber manufacturing technologies and standards, continuously promotingthe diversification and high-end application of its products. Faced with industry "bottleneck“
technical challenges,the Company has leveraged its four core technology systems to drive independent innovation, advancing the evolutionof carbon fiber industry through four generations of technology. It has achieved breakthroughs in core technologiesand equipment, including ultra-large-capacity polymerization, high-speed dry-jet wet spinning, rapid homogeneouspre-oxidation and carbonization, fiber surface treatment, and refined process control. These efforts have acceleratedthe efficiency of core technology breakthroughs and the transformation of achievements, continuously enhancingproduct competitiveness. Additionally, the Company has strengthened intellectual property management, elevated thelevel of technological innovation, and promoted high-quality industry development with an open and equitablescientific research spirit.
6. Refers to being restricted in key technologies or resources and not being able to control them independently, thus affecting the development of the
whole project or industry.
High-capacity polymerizationand homogenization raw liquidpreparation technologyLarge-capacity homogeneous highefficiency oxygen carbonizationpreparation technology
High-strength/medium-moduluscarbon fiber precursor dry-jet wet spinningkey technology10,000-ton full-process high performancecarbon fiber independent productiontechnology
"Four Core"TechnologySystem
Enhancing Innovation and R&D Capabilities
Zhongfu Shenying implements innovation management regulations such as the "Work Plan for Further EnhancingEnterprise Technological Innovation Capabilities" and strictly adheres to a series of rules and systems, including the"Research Project Management Measures," to continuously improve R&D efficiency and the transformation rate ofinnovative achievements. The Company adheres to the core principle of integrating "R&D, production, and market,"building a R&D system centered on "discovering clues and creating value." It continuously optimizes the three-linemanagement model of "project-based R&D activities, performance-based achievement evaluation, and systematicproduct development," achieving a virtuous cycle of technology flow and value flow, and facilitating the efficienttransformation of technological innovation into new productive forces.To further strengthen innovation and R&D capabilities, the Company has implemented various technical personnelgrouping systems, including technician grouping, team leader, project leader, product leader, market leader, anddepartmental military orders, to stimulate the innovation vitality and collaborative efficiency of R&D teams.Additionally, the Company actively improves the professional title evaluation and appointment system, opens andbroadens promotion channels for technical positions, and continuously refines the distribution mechanism. Itestablishes a scientific research performance evaluation system centered on positive incentives to enhance theenthusiasm of researchers.
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Risk Identification to Eliminate HazardsCarried out quality risk identification andinvestigation activities, pinpointing 14 high-risk keyprocesses and formulating corresponding measures.Standardized product realization processmanagement and strengthened production processstability.
Quality Risk Identification
Quality Improvement for BreakthroughsEstablished a Company-wide quality managementplatform and launched the "Challenge Board"initiative to address key and challenging aspects ofquality improvement. Encouraged employees toactively contribute ideas for quality enhancement,further solidifying and advancing qualityimprovement efforts.
Encouraging Employee Suggestions
2.55%
This year, the proportion of R&D investment in the Company's operating income has increased by
percentage points.
Sustainable Development ColumnGovernanceEnvironmentSocial
Zhongfu Shenying 2024 Scientific Research Work MeetingCase
Zhongfu Shenying convened the 2024 Annual ScientificResearch Work Meeting. The meeting began with anoverview of the Company's patents and R&Dachievements for the year, systematically analyzing thecurrent state of technological innovation, discussingexisting technical development needs, and outliningthe direction for the 2025 scientific research efforts. Theconference further clarified the strategic plan for theCompany's technological development, driving theupgrade and breakthrough of core technologies, andlaying a solid foundation for the high-qualityadvancement of the Company's scientific researchinitiatives.At the same time, the Company continues to advance the construction of a full-process R&D platform, establishing a"technology R&D - engineering testing - industrialization verification - applied research" R&D platform. It has developeda collaborative R&D model across Lianyungang, Xining, and Shanghai, while refining the analysis and evaluation systemto effectively ensure the smooth progress of R&D efforts.
Strengthening Intellectual Property ProtectionZhongfu Shenying upholds the protection of intellectual property (IP) as a core element in encouraging employeeinnovation and ensuring fair competition. This year, the Company strictly adhered to the national "EnterpriseIntellectual Property Management Standards" and engaged professional institutions to optimize its internalregulations, including the "Patent and Thesis Management Measures," "Intellectual Property Management System,"and "Technical Secrets Protection Management Measures." This effort further refined the IP management system,establishing a comprehensive, end-to-end IP protection framework.To ensure the efficient transformation and full protection of the Company's technological innovations, we establishedan IP management working group. This group is responsible for formulating the Company's IP strategic plans, makingdecisions on major IP matters, guiding the direction of IP work, and driving the high-quality development of IPinitiatives, thereby safeguarding the Company's innovative achievements from infringement.We rigorously manage the IP transformation process, continuously monitor IP infringement risks, and place specialemphasis on overseas IP risk prevention and control. By engaging professional third-party agencies, we strengthen themonitoring of product infringement activities to avoid violating others' IP rights. Additionally, the Company regularlyconducts IP training for personnel mastering key core technologies, fostering a positive atmosphere for IP protection.
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In 2024, Zhongfu Shenying successfully achieved the following key R&D milestones and expanded the application ofcarbon fiber across multiple fields:
Global Breakthrough: Developed the world's first industrialized high-strength, high-modulus SYM50X carbon
fiber and high-strength, high-modulus M46X-grade carbon fiber.
√√√√√2024 Scientific Research Work Meeting
Zhongfu Shenying's Xining Company Approved as National Postdoctoral Research StationCase
In August 2024, Zhongfu Shenying's Xining Company was approved as a national postdoctoral research station.This approval marks a new milestone in the construction of the Company's technological innovation platform,signifying its enhanced capabilities in fostering the deep integration of industry, academia, and research. It holdssignificant importance for attracting and cultivating high-level scientific research talent, improving technologicalinnovation capabilities, and promoting the transformation and application of scientific and technologicalachievements.
Technical Maturity Certification: Successfully passed the carbon fiber technical maturity evaluation by theChina Chemical Fiber Association, achievingLevel 8 maturity for M40-grade carbon fiber technology and Level7 maturity for M40J-grade carbon fiber technology. Notably, SYM40 was applied in the electronics 3C field.Aerospace Advancements: Completed the development of dry-jet wet spinning engineering preparation
technology for M55J-grade and M60J-grade high-modulus products, and conducted application verificationon structural components such as satellites. Additionally, initiated verification of high-temperature toughenedepoxy resin prepreg and became an emergency alternative material evaluation supplier for domestic largeaircraft.Construction and New Energy Applications: Successfully applied dry-jet wet spun T700-48K large-tow carbon
fiber in bridge cable stays, the world's longest 131-meter onshore wind turbine blades, and the world'slongest 147-meter offshore wind turbine blades.High-End Sports and Leisure: Successfully utilized T1100-grade and M40X-grade carbon fiber in premiumsports and leisure products.
Zhongfu Shenying Intellectual Property TrainingCase
In April 2024, Zhongfu Shenying organized a patent training session,with simultaneous sessions held at its Xining and Shanghai branches.The event covered all R&D personnel from the headquarters and itsaffiliated companies. The training provided a comprehensiveexplanation of the fundamental concepts of intellectual property,basic knowledge of patents, the patent application process, and theCompany's patent management system. This initiative aimed toenhance the understanding and application of patent knowledgeamong R&D staff, safeguard the transformation of technologicalinnovation achievements, and strengthen the protection ofintellectual property. It also contributed to the high-qualityenhancement of the Company's core competitiveness.
Zhongfu Shenying's first intellectual propertytraining session
Sustainable Development ColumnGovernanceEnvironmentSocial
This year, we continued to strengthen our global intellectual property layout:
?Filed 1 international patent application through the PCT (Patent Cooperation Treaty), bringing the total number ofPCT patents applied by the Company to 6 (with 4 already entering the European application phase).?The Company's patent "Method for Preparing Low-Ash Polyacrylonitrile-Based Carbon Fiber" was awarded theSilver Prize at the 25th China Patent Awards by the National Intellectual Property Administration.?Actively pursued patent pre-examination or priority examination to expedite the patent review process andaccelerate patent authorization.
Zhongfu Shenying's Core R&D Performance in 2024
Total PatentApplications
including inventionpatents
utility modelpatents
designpatent
Newly AcceptedPatents
Includinginvention patents
AuthorizedPatents
includinginvention patents
CumulativeAuthorized Patents
comprising inventionpatents
utility modelpatents
designpatentby End of 2024
Promoting Industry Collaborative Development
As a leader in the carbon fiber industry, Zhongfu Shenying remains committed to driving the high-quality developmentof the sector. The Company continues to enhance communication and collaboration with research institutions,effectively integrating industry, academia, and research to accelerate the transformation of scientific and technologicalachievements. Actively partnering with leading enterprises in fields such as pressure vessels and carbon/carboncomposites, Zhongfu Shenying has signed strategic agreements with key clients to leverage their respective strengths,strengthen resource integration, and jointly advance the rapid development of the carbon fiber industry and thelocalization substitution process.
Promoting Industry ExchangeThe Company is committed to fostering a collaborative ecosystem within the industry. This year, Zhongfu Shenyingactively participated in industry exhibitions, promoted industry exchange, and worked with partners to drive industrydevelopment.
In March 2024, Zhongfu Shenying showcased its flagship products, includingSYT49S-24K and SYT50S-36K, as well as the world's first dry-jet wet spun 48Klarge-tow carbon fiber series at JEC World in Paris. The exhibition highlightedthe Company's advanced carbon fiber technologies and high-end products toa global audience.
JEC World 2024
In March 2024, Zhongfu Shenying made its second consecutive appearance atthe Shenzhen CCE, displaying its “Black Gold” series, SYM40X, SYT70, andother high-performance products. The SYT49S series remained a highlight,while new products such as 48K, 36K, and Y603 (T800-grade) prepregattracted significant attention, demonstrating the Company's applicationadvantages in aviation, new energy, and sports industries.
Shenzhen International Composites Industry Technology Exhibition (Shenzhen CCE)
In June 2024, Zhongfu Shenying participated in the SAMPE China 2024 AnnualConference and the 19th International Advanced Composites Exhibition,showcasing its SYT70, SYT45S-48K, and SYT49S series. The event highlightedthe Company's latest innovations in carbon fiber, helping to expand itsdomestic and international markets and explore new business opportunities.
SAMPE China 2024 Annual Conference
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Sustainable Development ColumnGovernanceEnvironmentSocial
In September 2024, at the Shanghai CCE, the largest andmost influential composites exhibition in the Asia-Pacificregion, Zhongfu Shenying displayed its full range ofproducts, including general-purpose, high-end, andflagship models. The Company also globally launchedthree new products: the world's first industrialized high-strength, high-modulus carbon fiber SYM50X-12K, andhigh-interface performance dry-jet wet spun high-modulus carbon fibers SYM55J-6K and SYM60J-6K.Additionally, Zhongfu Shenying's SYT45-3K carbon fiberwon the CCE-JEC Innovation Product Award, furtherdemonstrating the Company's innovation capabilities.
Shanghai International Composites Industry Technology Exhibition (Shanghai CCE)
In November 2024, the 15th China International Aviation& Aerospace Exhibition opened in Zhuhai. ZhongfuShenying showcased its key carbon fiber and compositeproducts, including the new M50X, M55J, and M60J-grade technologies. The Company gained significantattention for being the first in China to achieve T1100-grade mass production. Its T700 and T800-grade prepregproducts, matched with self-developed resin systems,also attracted numerous inquiries, highlighting ZhongfuShenying's strong contribution to the aerospaceindustry.
15th China International Aviation & Aerospace Exhibition (“Zhuhai Airshow”)
Strengthen enterprise-university collaborationGuided by the philosophy of "Advancing Together, Creating the Future" in university-enterprise collaboration, theCompany strategically focuses on integrating industry, academia, and research, actively expanding cooperation andexchange with universities. By deeply exploring talent cultivation and broadly extending scientific innovation, theCompany is dedicated to building a mutually beneficial ecosystem for university-enterprise partnerships. We invitefaculty and students to visit our exhibition halls and production workshops, helping them gain a thoroughunderstanding of the carbon fiber production process. Through engaging with our team, we aim to attract moreoutstanding talents to the carbon fiber industry, injecting continuous vitality into its long-term development.
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University-Enterprise Collaboration to Cultivate Emerging Industry TalentCase
This year, the Company partnered with NorthwesternPolytechnical University (NPU) to organize a visit for a 6-member doctoral team from NPU. The team toured theCompany's exhibition hall and production lines, followedby a discussion session focused on the university andenterprise profiles, talent cultivation, and talent needs.This initiative not only strengthened the connectionbetween the Company and academic institutions butalso provided students with a more intuitive and in-depthunderstanding of the industry. It facilitated the sharing ofhigh-quality resources and complementary strengthsbetween the university and the enterprise, laying a solidfoundation for mutual collaboration and win-winoutcomes.
promote industry co-creation
Shenyang Shanghai Product Exhibition Hall
Sustainable Development ColumnGovernanceEnvironmentSocial
Steadfastly Advancing IntelligentDevelopmentZhongfu Shenying adheres to the philosophy of "driving business with data and enhancing efficiency with intelligence"in its informatization development. The Company has established an informatization leadership group with theGeneral Manager as the primary responsible person, supported by an informatization working group led bymanagement to promote the Company's informatization strategy and cybersecurity initiatives. Focusing oninnovation-driven development, the Company prioritizes three key areas: safety management, procurement costcontrol, and information security. It comprehensively advances refined operations and digital transformation tosupport efficient and high-quality development. This year, the Company experienced no negative incidents related toinformation security breaches.
Intelligent Safety Management SystemEstablished an intelligent safety management and "Five-in-One" platform, deeply integratingcutting-edge technologies such as video AI and high-precision facial recognition. The platformcombines core functions including safe office operations, education and training, dual preventionmechanisms, hazard monitoring and risk control, and precise personnel positioning. This achievesintelligent, efficient, and comprehensive safety management, building a digital defense line forenterprise production safety (see the "Implementing Intrinsic Safety" section of this report fordetails).
SafetyManagement
Intelligent Procurement Management Platform
Utilized an online platform to integrate high-quality supplier resources and optimize procurementprocesses. Through automated procurement, data analysis, and forecasting, the platformeffectively reduces procurement costs, enhances procurement efficiency, and supports optimalresource allocation for the enterprise.
ProcurementCost Control
Intelligent Information Security TechnologyIntroduced advanced cybersecurity technologies and equipment to construct a comprehensivenetwork security management system. This effectively defends against external cyberattacks,ensuring the stable operation of the enterprise's information systems.
InformationSecurity
Implementing Intrinsic SafetyZhongfu Shenying consistently upholds the safety production philosophy of "embedding safety in the heart" andadheres to the safety production policy of “safety first, prevention led”, and comprehensive management." With thegoals of "no responsibility accidents causing minor injuries or above throughout the year" and "zero fatalities," theCompany has fostered a unified safety culture across all levels, ensuring that "everyone emphasizes safety in everythingthey do." Zhongfu Shenying continues to drive improvements in safety governance at all levels, implementing intrinsicsafety to safeguard the Company's stable, orderly, and high-quality development.The Company leverages technology as a guide andmanagement enhancement as a tool, relying on theapplication of digital and intelligent productionfacilities and management systems, combined withcontinuously refined safety management systems, tosteadily enhance intrinsic safety capacity building.
In 2024, the Company invested
17.97 million yuan
in safety production
Empowering Intrinsic Safety with Technology
Zhongfu Shenying is committed to building an intrinsically safe enterprise, continuously improving employee safetyskills and enhancing the Company's safety production conditions. The Company conducts comprehensive intrinsicsafety improvements across equipment and facilities, personnel conditions, management processes, and operationalenvironments.This year, the Company established a smart safety information platform and fully integrated the "Five-in-One" anddual-system digital safety management platforms, achieving digital management of all safety production elements.Guided by the principles of "automation, intelligence, and informatization," the Company accelerated themodernization of management processes and the standardization of operational procedures, promoting quality andefficiency in safety management and effectively enhancing intrinsic safety levels.
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Zhongfu Shenying Invites External Third Party to Conduct Training onInformation System Protection Products
To further enhance the Company's cybersecurity management capabilities, Zhongfu Shenying actively organizedcybersecurity training. This year, the Company invited an external institution to provide on-site training on informationsystem protection products.
Sustainable Development ColumnGovernanceEnvironmentSocial
Building an Intelligent Safety Production Management System
We prevent personnel from entering hazardous areas by using electronicfences and intelligent alarm systems. During collaborative operations, thesystem manages personnel positioning to avoid mechanical injuries causedby misalignment. At the same time, the system automatically recordsemployee violations and notifies supervisors via SMS or app messages,enabling real-time automatic alerts for violations.
New Video AI Alarm System
Video AI Alarm System
Comprehensively integrate and improve the “Chemical Informationization -Dual Mechanism Edition” safety management platform:
Major hazardmonitoring
Implement video surveillance and monitoring and early warning of key indicators (suchas temperature, pressure, and liquid level in tank areas) for major hazards.
Full-processautomation
retrofit
Adopt full automation for chemical processes to avoid safety injuries caused by on-sitepersonnel operations. An independent safety instrumented system (SIS) from theproduction system is used to provide emergency shutdown or venting in the event ofpotential safety risks.Automatedrobotic arms
Use automated robotic arms in packaging workshops to reduce the risk of safetyinjuries to personnel during the packaging process.
Improved workingenvironment
Install toxic and combustible gas detection and alarm systems linked with on-site fansand emergency shutdown systems to ensure employee safety.
Facial recognition
access control
Implement a “one-face-pass” access control system to monitor the entry and exittimes and frequencies of employees registered in the system. Capture real-time imagesof unfamiliar individuals not registered in the system and issue alerts to ensureeffective control of personnel access.
Related partymanagement
Through the “Related Party Management” module of the platform, unify themanagement of enterprise qualifications and personnel information for both fixed andtemporary external contracting units. Effectively monitor the work conditions ofexternal personnel, issue alerts for non-compliant enterprises and individuals, and takemeasures such as information updates or removal from the site to ensure thestandardization and safety of external contracting unit management.
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We implemented hierarchical and classified management of hazardousoperations in line with the national "Safety Specifications for SpecialOperations in Hazardous Chemical Enterprises" (GB 30871-2022). It ensuresthat the next step in the approval process cannot proceed until the previousstep is completed, including personnel information, risk identification, andon-site measures, with photos uploaded to the platform. This prevents safetyincidents caused by inadequate implementation of on-site measures.
New Hazardous Work Approval System
Work Approval System
Hazard Monitoring Platform
Sustainable Development ColumnGovernanceEnvironmentSocial
Empowering Intrinsic Safety through ManagementThe Company strictly adheres to laws and regulations such as the "Work Safety Law of the People's Republic of China"and the "Occupational Disease Prevention and Control Law of the People's Republic of China." It has establishedmanagement measures, including the "Work Safety Management Manual" and the "Occupational Health ManagementSystem," to define health and safety management processes at all levels, providing employees with comprehensiveoccupational health and safety protections. This year, Shenying Xining revised 58 safety-specific management systemsand 19 process and equipment-specific management systems based on actual production and operational conditions,continuously improving the Company's work safety management framework.To strengthen the foundation of work safety and fundamentally eliminate potential hazards, the Company developedthe "Three-Year Action Plan for Fundamental Work Safety Improvement (2024–2026)" and a task list. It also established"Five Strengthening Measures“
to ensure the effective implementation of work safety tasks, accelerate theenhancement of intrinsic safety levels, and prevent various production safety incidents.Three-Year Action Plan for Fundamental Improvement in Work Safety (2024–2026)
Work ObjectivesMain Tasks
In 2024, the Company established and achieved the following health and safety goals. In 2025, we will continueto strive to achieve the following health and safety goals:
100% completion rate for the rectification of major hidden dangers
Safety Production Management SystemZhongfu Shenying has established a top-down health and safety management structure, including the Board ofDirectors, the Headquarters Safety Production Management Committee, and the Subsidiary Safety ProductionManagement Committees. A Safety Director has been appointed at the headquarters to oversee the Company's healthand safety matters. We emphasize the safety management principles of "horizontal coverage, vertical depth" and "oneposition, one responsibility," clearly defining safety management responsibilities at all levels, continuously clarifyingsafety management processes, and facilitating communication channels between different levels to lay a solidfoundation for the orderly implementation of safety work. By the end of 2024, all production bases of the Companyhave obtained ISO 45001 Occupational Health Management System certification.
Board of DirectorsAs the highest governing body for safety-related matters, the Board of Directors is responsible for overseeing theCompany's safety production management.
Headquarters Safety Production Management CommitteeThe SPMC serves as the leadership and decision-making body for the Company's safety management, with theGeneral Manager as its highest authority. It formulates and promotes the effective implementation of safetymanagement policies, organizes and deploys safety production management tasks, and is responsible for theexecution and supervision of the Company's safety management and performance.
Subsidiary Safety Production Management CommitteesThese committees are responsible for carrying out the safety management tasks delegated by the headquarters.They are established within each subsidiary and include subcommittees for special operations, fire safetymanagement, and equipment management. The General Manager of each subsidiary serves as the primaryresponsible person, overseeing daily safety production matters, monitoring, identifying, and managing healthand safety risks, ensuring the effective implementation of various safety management measures, and regularlyreporting to the headquarters.
7. “Five Enhancements”: Enhancing organizational leadership, enhancing coordinated advancement, enhancing supervision and service, enhancing
exemplary guidance, and enhancing assessment and accountability.7172
fatalities in work safety accidents forwhich the Company is responsible
work safety responsibility accidentsresulting in minor injuries or above
0.05%
The work safety accident rate willnot exceed
new cases of occupational diseases
fire, explosion, or acute poisoning accidents in production and operationsites or construction sites for which the Company is responsible
Deepen the effectiveness of the special action for worksafety rectification and improvement.Strengthen the concept of coordinating developmentwith work safety.Improve the work safety responsibility system and themechanism for preventing and controlling safety risks.Enhance the level of inherent safety and the skills andqualities of personnel.Perfect the risk monitoring and early warning system aswell as the basic support and guarantee system.Transform the safety governance model for hazardouschemicals towards pre-incident prevention.
Special treatment of hazardous chemicals andother key high-risk areasMajor accident hidden danger investigationand rectification projectConstruction of intelligent production safetymanagement systemSpecial rectification of special workAccident Alert Education and QualityImprovement of Employees
Sustainable Development ColumnGovernanceEnvironmentSocial
Safety Production Risk Prevention and ControlZhongfu Shenying is committed to managing and preventing production safety risks from the source, emphasizing theprinciple that "safety must be managed in all industries, all operations, and all production and business activities."Guided by the principle of "continuous improvement and optimal operation," the Company has established andimplemented the "Three Lists and One Linkage "
mechanism.We continuously deepen the safety risk management principles of "full participation, full-process control, and full-direction coverage," formulatingthe Zhongfu Shenying Dual Prevention Mechanism Digital Application EnhancementImplementation Plan. This plan enforces the dual prevention systems of "risk hierarchical control" and "hidden hazardinvestigation and management." After risk identification, we establish safety production risk ledgers and hidden hazardinvestigation forms, employing risk prevention, risk control, and hazard investigation to avoid accidents and achievesystematic management of health and safety risks.This year, we adopted a multi-department collaboration mechanism to conduct safety hazard investigations andengaged external experts to enhance our hazard investigation capabilities. The Company requires all employees tofully understand the risk points of their positions and perform daily inspections according to plan, ensuringcomprehensive coverage of both professional content and specific locations.
In 2024, Shenying Dapu conducted a systematic evaluation of the equipment in the acrylonitrile tank area and invitedthird-party professional institutions to inspect the pipelines. Old equipment in the tank area was replaced with newer,safer alternatives. Shenying Xining conducted a major hazard source assessment for the acrylonitrile tank area andfiled it with government authorities, further strengthening on-site safety management to ensure employee safety.The Company has formulated the Safety Production Assessment and Reward-Punishment System, incorporatinghealth and safety indicators such as the number of minor injury and above safety responsibility accidents and thework-related injury rate into employee performance evaluations. These indicators are updated annually based onsafety risk identification results. In the event of a safety production accident, the Company will impose disciplinary andfinancial penalties on responsible parties according to the severity of the accident. For major safety productionaccidents, we implement a "one-vote veto" system, leading to the dismissal of responsible personnel.In terms of accident investigation and remediation, the Company has established the Production Safety AccidentManagement System, which sets stricter standards than national regulations. This system clearly defines accidentinvestigation procedures and remediation measures. In the event of an accident, the Company will immediatelyactivate the emergency response mechanism, initiate rescue operations at the first opportunity, and promptly reportthe incident to the local government and higher-level Company authorities.Additionally, the Company forms accident investigation teams to conduct a comprehensive analysis of the causes ofaccidents following the "Four No Letting Go” principle. Based on the investigation results, responsible parties aredealt with seriously. After the investigation, the Company organizes accident warning education for all employees toensure relevant personnel receive adequate training and education. Furthermore, the Company develops detailedrectification measures based on the causes of the accident and ensures their effective implementation to preventsimilar incidents from recurring.
Zhongfu Shenying Work Safety Bulletin BoardOn-site Safety Hazard Investigation
8."Three Lists and One Linkage": This refers to the implementation of the "Three Lists"—Risk List, Control List, and Responsibility List—while linking safety
risk management with employee performance evaluations.
Ensuring the Safety of Outsourced EmployeesZhongfu Shenying applies the same occupational health and safety management standards to outsourced employeesas to Company employees. The Company has established internal systems such as theContractor Safety ManagementSystem and the Contractor Safety Responsibility Management Measures. Before outsourced employees enter the site,safety education and training are conducted, and safety risks and countermeasures are communicated to ensure theyfully understand the risks.We strictly control the occupational health and safety management capabilities of contractors. Before signingcontracts, we review the contractor's qualifications and personnel credentials (e.g., special operation certificates) andsign safety management agreements with them. Contractors are required to purchase health and safety insurance fortheir employees to ensure their safety. Additionally, we conduct annual safety reviews of contractors and implement ablacklist system, disqualifying contractors with multiple violations or fraudulent credentials from future cooperation.Occupational Disease Detection and PreventionZhongfu Shenying places great emphasis on occupational disease prevention and is committed to providingemployees with a healthy and safe working environment. In accordance with theWorkplace Occupational HealthManagement Regulationsand other relevant systems, the Company has formulated an occupational diseaseprevention plan and control implementation plan. Annually, we conduct hazard factor testing for all job positions andprovide pre-employment, on-the-job, and post-employment occupational health check-ups for all employees. If anemployee is found unfit for a specific position after the check-up, they are reassigned or not hired. Additionally, weequip all employees with qualified personal protective equipment and monitor its proper use to safeguard their healthand safety.
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In 2024
the Company organized nearlyspecialized safety inspections
4,257identified overhidden hazards
9,704supplemented and refinedrisk factors
completed oversafety improvement projects99%achieving a hidden hazardrectification rate of over
Sustainable Development ColumnGovernanceEnvironmentSocial
Comprehensive Emergency Rescue DrillCultural Empowerment for Intrinsic Safety
Zhongfu Shenying places great emphasis on and meticulously deploys the construction and promotion of safetyculture. The Company actively conducts various safety culture exchange and training activities to continuouslyenhance employees' safety awareness.Emergency Drills for Unexpected IncidentsTo effectively respond to sudden safety accidents, the Company has continued to improve its emergency responsemeasures for natural disasters this year. TheProduction Safety Accident Emergency Planhas been revised, detailingkey aspects such as disaster warning, emergency response, personnel evacuation, and resource allocation. TheCompany has refined the emergency management mechanism characterized by "unified command, hierarchicalmanagement, clear responsibilities, resource sharing, and quick response." The Emergency Management Office isresponsible for overall coordination, while the emergency command organization handles specific incident responses,continuously improving the Company's emergency rescue command capabilities and overall response effectiveness.Additionally, Shenying Xining formulated and issued theSpecial Emergency Plan for Mechanical Injury Accidents,procured emergency rescue equipment, and established emergency material storage points in key areas. Regulartraining on the use of emergency equipment is provided to ensure all employees are proficient in operating emergencytools, enabling swift and effective actions in emergencies.This year, the Company actively conducted various types of emergency drills at all levels, with a total safetyinvestment of892,100 yuan, including:
7576
4 timesComprehensiveemergency drills
183 participantsinvolving
63 timesSpecial planemergency drills
678 participantsinvolving a total of
213 timesOn-site emergencyresponse plan drills
1,462 participantsinvolving a total of
Sustainable Development ColumnGovernanceEnvironmentSocial
Deepening Safety Awareness Training and PromotionTo comprehensively enhance employees' safety awareness, the Company, in accordance with internal systems such astheTraining Management Systemand theSafety Production Manual, has leveraged digital systems to conduct varioustypes and forms of safety awareness training in an orderly manner. In 2024, the Company provided safety training to45,675 participants. During the Safety Production Month, the Company organized the "First Responsible Person TalksSafety" themed training and assessed the training outcomes of all mid-level and above cadres, achieving a 100% passrate.
"First Responsible Person Talks Safety" Themed Training
In 2024, the Company conducted six specialized safety training sessions on confined space operations, hydrogenperoxide/ammonia usage, and other topics, covering 10,311 participants. Shenying Xining organized 16 batches ofsafety training for new employees, involving 449 participants, with corresponding assessments conducted. Those whodid not pass the assessment were not hired by the Company.
Safetytraining
Throughout the year, a total of1,103 safety education
training sessions were conducted, involving45,675 participants
The content covered multi-level safety training, including new employee onboarding training,factory-level training, certification training for special operations personnel, and internal trainingfor safety management personnel. The themes encompassed four major areas: production safety,occupational health, fire safety, and environmental protection.
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中复神鹰开展安全月知识竞赛Zhongfu Shenying Holds Safety Month Knowledge Competition
Zhongfu Shenying's 2024 Safety Month Knowledge Competition
achieving a coverage rate of 100%
Shenying Dapu Conducts Special Training on Injury Prevention and First Aid Knowledge
Shenying Dapu Conducts Special Training on Injury Prevention and First Aid KnowledgeCaseIn 2024, Shenying Dapu organized and conducted special training on injury prevention and first aid knowledge, invitingexternal experts to provide on-site guidance. A total of 35 participants, including workshop team leaders and safetymanagement personnel from various departments, attended the training. Through hands-on demonstrations, thetraining effectively enhanced employees' safety awareness and self-protection capabilities.
Sustainable Development ColumnGovernanceEnvironmentSocial
Fully Safeguarding Employee RightsZhongfu Shenying adheres to the core development philosophy of "people-oriented" and is committed to creating afair, just, diverse, and inclusive working environment. We continuously improve the employee rights protection system,enhance communication channels, and strengthen talent team building and development, laying a solid talentfoundation for the Company's sustainable development.Zhongfu Shenying strictly complies with laws and regulations such as theLabor Law of the People's Republic of Chinaand the Labor Contract Law of the People's Republic of China. This year, the Company revised seven internal systems,including the Employment Management System, further clarifying regulations on employee recruitment andtermination, talent cultivation and development, performance evaluation, and compensation, promoting the scientificand standardized management of employment practices.
Implementing Employee Rights
Recruitment and TerminationIn accordance with relevant laws and regulations, the Company has formulated and implemented internal systemssuch as theZhongfu Shenying Carbon Fiber Co., Ltd. Employee Handbook(hereinafter referred to as the "EmployeeHandbook"). These systems emphasize the prohibition of discrimination based on gender, ethnicity, religious beliefs,age, or region during recruitment, promotion, development, benefits distribution, and termination of labor contracts,ensuring fair and just treatment of every employee and safeguarding their rights.The Company strictly prohibits the recruitment of child labor and forced labor. In line with laws such as theLaw of thePeople's Republic of China on the Protection of Minors and the Regulations on the Prohibition of Child Labor, theEmployee Handbook explicitly states that child labor must not be employed. Additionally, the Company requires newemployees to submit authentic and valid documents, including identification, before onboarding to prevent the hiringof child labor at the source. The Company signs labor contracts with employees based on the principles of equality andvoluntariness, ensuring all employees are voluntarily employed. The Company also strictly monitors third-partyemployment, imposing severe penalties for illegal hiring practices to eliminate any instances of child labor or forcedlabor. During the reporting period, no cases of child labor or forced labor occurred.
Compensation and PerformanceBased on internal systems such as theZhongfu Shenying Carbon Fiber Co., Ltd. Compensation Plan, theExecutiveCompensation Management Measures, and theTotal Wage Management Measures, the Company has established anemployee hierarchy system, emphasizing the integration of the compensation system with performance evaluationresults. This year, the Company formulatedthe Management Member Tenure and Contractual Management Measuresand the Management Member Performance Evaluation Measures, and revised theMid-Level Cadre PerformanceEvaluation and Compensation Management Measuresto further motivate management personnel and enhance teamcollaboration and operational efficiency. Linking Sustainable Development Performance to Executive CompensationThe Company links sustainable development performance to the General Manager's compensation, signing the2024Annual Business Performance Responsibility Agreement for the Management Layer and General Manager. Quantitativeand qualitative performance goals related to environmental, social, and governance (ESG) aspects, includingtechnological innovation, carbon reduction, safety, environmental protection, and product quality assurance, are setand evaluated at year-end, with the results impacting compensation.Fair and Transparent PromotionsThe Company continuously improves the internal hierarchy management system, further clarifying the conditions forpromotion, demotion, and exit at each level. To ensure fair and transparent promotions, the Company adopts acompetitive recruitment system, publicly announcing vacant positions and allowing eligible employees to apply. Incases of unfair practices, employees can report to relevant departments to ensure their rights are legally andreasonably protected.Promoting Diversity and EqualityThe Company continues to build a diverse and equal healthy workplace environment, improving equal employmentpolicies to ensure fairness in recruitment, employment, promotion, and compensation. The Company values andprotects the rights of female employees, empowering female talent and encouraging them to enhance leadership skillsand assume management roles.
The percentage offemale employeesin the Companyreaches
41.3%
The percentage offemale employees inmanagement reaches
28%
This year
7980
Sustainable Development ColumnGovernanceEnvironmentSocial
The percentage ofminorityemployees
7.5%
Open Communication Channels
The Company has established open communication channels for employees, fully respecting their rights toinformation, participation, expression, and supervision. We have implemented a democratic management systemcentered on the Workers' Congress, widely collecting employee proposals during the congress, understandingreasonable suggestions, promptly proposing improvement measures, and monitoring their effectiveness.We advocate for a transparent communication mechanism, encouraging sincere and friendly communication amongemployees and between different levels of management, fostering a harmonious and collaborative work environment.This year, we conducted a comprehensive employee satisfaction survey, collecting feedback through questionnairesand interviews to better understand employee needs.Employee Care and Support
Zhongfu Shenying is committed to growing together with its employees, continuously practicing the value of"employees first," and prioritizing their physical and mental health. We strive to build a warm and responsibleemployer brand, providing various benefits to employees and their families, and fostering a caring corporateatmosphere.
We organize annual health check-ups for all employees, helping them understand theirphysical condition comprehensively. We also offer critical illness insurance and employeemutual aid insurance to provide effective protection.Employee
Health
We conduct special support initiatives, such as birthday, maternity, retirement, andbereavement support, benefiting 3,372 employees throughout the year. We also carry out"warmth delivery" assistance programs, supporting 34 employees in need. This year, wedonate 43,400 yuan for this program.EmployeeSupport
We provide scholarships to 13 employees' children admitted to universities and assist 10children of employees in financial need through the "Golden Autumn Assistance" programto apply for financial aid.EmployeeChildren'sEducationAssistance
In 2024, the Company organized a series of diverse and engaging employee activities, continuously enhancingemployees' happiness and sense of belonging, and strengthening team cohesion.
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Zhongfu Shenying's Third Employee Sports Conference
Uniting Hearts, Showcasing Vitality, Winning the Future | Zhongfu Shenying's Third Employee SportsConference Concludes SuccessfullyCaseTo enrich the cultural life of employees and encourage active participation in fitness activities, the Companysuccessfully held its third Employee Sports Meet this year. Nearly 800 participants formed 14 teams to compete invarious events, helping employees unwind from their busy work schedules, enhance their physical fitness, andstrengthen the cohesion and unity of the entire Company.
Summer Cooling Relief: Preventing Heatstroke and Ensuring Well-being
Summer "Cooling Relief" | Zhongfu Shenying's Workshop Employee Care ActivityCaseThis year, facing the ongoing challenges of high temperatures, Zhongfu Shenying launched the "Cooling Relief"initiative to ensure effective heatstroke prevention and cooling measures. We equipped workshops with air-conditioned rest areas, placed ice blocks for cooling in non-air-conditioned zones, arranged for the canteen to preparemung bean soup daily, and provided unlimited salted soda water. These thoughtful measures ensured the health andwell-being of our employees.
Sustainable Development ColumnGovernanceEnvironmentSocial
The Company is committed to providing employees with diverse and high-quality welfare benefits. In terms of familywelfare, we offer paid maternity leave, parental leave, only-child nursing leave, and family visit leave. Additionally, wehave established nursing rooms to provide female employees with a safe, comfortable, and private environment forbreastfeeding and rest.
Safeguarding Employee Family Welfare
Maternity LeaveFemale employees areentitled to one hour ofpaid maternity leave perday during thebreastfeeding period.
Parental Leave
Employees can enjoy 10days of paid parentalleave per year until theirchild reaches the age ofthree.
Nursing LeaveEmployees who are onlychildren are entitled to 5days of paid nursingleave per year when theirparents, aged 60 orabove, are hospitalizeddue to illness.
Family Visit LeaveEmployees who do notlive with their parentsand cannot reuniteduring public holidaysmay be grantedapproximately 20 days offamily visit leave, withround-trip travelexpenses reimbursed bythe Company.
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The Company also focuses on enhancing welfare for female employees, continuously organizingteam-building activities and holding forums to listen to their voices. We provide female employeeswith top-tier insurance and maternity insurance, and offer specialized health check-ups toconsistently support their physical and mental well-being.
Zhongfu Shenying's International Women's Day Series of Activities Successfully HeldCaseTo enrich the daily work and life of female employees, Zhongfu Shenying headquarters organized a variety of activitiesfor International Women's Day this year, including film screenings on legal education, professional photo shoots, andfun sports events. Shenying Xining and Shenying Shanghai respectively organized floral arrangement activities and aseries of handicraft activities themed "Polishing Sand into Pearls, Refining Craftsmanship." Additionally, on the day ofthe festival, the Company distributed holiday benefits to all female employees, extending sincere holiday greetings andexpressing gratitude for their dedication and professionalism in their daily work.
Workshop Female Employee Appreciation and Forum
Warmth to the Frontline: Workshop Female Employee Appreciation and ForumCaseTo effectively fulfill the role of the labor union in leading,connecting, and serving employees, the Company's vice-chairman of the labor union visited production lines thisyear, engaging in forums with female employees invarious workshops and extending holiday greetings andheartfelt wishes. During the meetings, the vice-chairmanhad warm conversations with frontline female employees,understanding their work and life situations. Heacknowledged their dual responsibilities in balancingfamily and work, reflecting the responsibility andcommitment of women in the new era, and encouragedthem to continue carrying forward the fine tradition ofwomen excelling in their roles, making contributions intheir positions.
Shenying Xining and Shenying Shanghai Organize International Women's Day Series of Activities
Sustainable Development ColumnGovernanceEnvironmentSocial
Comprehensively Promoting TalentDevelopmentZhongfu Shenying places high importance on the personal growth and career development of its employees, strivingto build a diverse and dynamic talent pool. The Company is committed to creating a multifaceted, equitable, andhealthy professional development environment for its employees. We provide comprehensive talent developmentpathways, a robust talent cultivation system, and mechanisms to enhance employees' professional capabilities in allaspects. This supports employees in realizing their personal value and aligns with the "Talent Strengthens theEnterprise" strategy.
Perfecting the Talent Cultivation System
The Company steadily promotes the construction of the "Four Hearts" talent cultivation system, adhering to theprinciples of prioritizing technological research and development and determining outcomes based on efficiency. Weemphasize the cultivation of professional skills and innovative capabilities among talents. Actively implementingmedium- and long-term incentive programs, we have established an enterprise annuity plan that covers all levels of theCompany, fully unleashing employees' potential and creativity.
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The Second Science and Technology Awards Conference of Zhongfu Shenying
The Second Science and Technology Awards Conference of Zhongfu ShenyingCase
On February 19, 2024, Zhongfu Shenying held the Second Science and Technology Awards Conference to honorcollectives and individuals who have made significant contributions to technological innovation and scientificadvancement. The conference aimed to thoroughly implement the innovation-driven development strategy and fostera work environment that respects labor, knowledge, talent, and creativity. A total of 36 projects were awarded,including 9 Science and Technology Progress Awards, 19 Technological Innovation Awards, 2 Patent Awards, 5Technical Report Awards, and 1 Excellent Project Management Award. The awards recognized 198 individuals, furthermotivating the enthusiasm and creativity of scientific and technological workers, and promoting the Company'sscientific and technological progress and innovative development.
Strengthening the Culture of Innovation toMake Talents Feel “Belonging”Developing a series of talent cultivationplans, we actively deploy initiatives to buildan innovative culture, systems, and talentteams. We have established a science andtechnology awards conference system toencourage employees at all levels topioneer innovation and strive to be rolemodels.
Solidifying R&D Foundations to Make
Talents Feel “Confidence”
We are actively constructing high-level,high-performance talent and carbon fiber
R&D platforms, including national high-
tech enterprises, postdoctoral research
stations, provincial carbon fiberengineering technology researchcenters, and provincial carbon fiber
engineering centersReforming Talent Cultivation Mechanismsto Make Talents Feel “Expectation”Focusing on top-level architecture, salaryand benefits, achievement rewards, and lifesecurity, we ensure the treatment ofresearchers and establish project-basedpersonalized cultivation plans.
Creating a Positive Research Atmosphere
to Make Talents Feel “Assurance”
We have established a results-orientedevaluation mechanism and an innovation-centered error-tolerance mechanism,dedicated to fostering a researchenvironment that encourages bold
thinking and action.
The "Four Hearts"Talent Cultivation
System
Sustainable Development ColumnGovernanceEnvironmentSocial
To enhance the Company's talent development environment and improve employees'professional competence, the Company has established a "Internal Trainer System" covering alllevels of employees based on the "Internal Trainer Management Guidelines." We have formed aninternal trainer team and strengthened its management to standardize the training process.In line with the Company's strategic needs and business characteristics, we providecomprehensive training for internal trainers, including courses on training system promotion,training process standardization, and training material compilation and submission. This providesstrong support for the smooth implementation of the Company's training programs. In 2024, weorganized an internal trainer evaluation meeting and selected 10 trainers to be awarded instructorcertificates.InternalTrainerCultivationSystem
To strengthen the Company's production management talent reserve, the Company hasestablished a two-tiered linkage cultivation management mechanism based on the "ProductionManagement Trainee Recruitment and Cultivation Plan." This mechanism involves workshopsupervisors overseeing and guiding the execution of the plan, helping the Company achieve high-quality talent team development. In 2024, 37 employees participated in the cultivation plan,achieving dual improvements in practical experience and professional capabilities.New TalentCultivationPlan
To strengthen the effectiveness of talent cultivation, the Company has enhanced the statisticalcapabilities of employee training records based on the "Employee Training Record Book." Thisenables effective management and evaluation of employee training progress and outcomes,efficient identification of training needs, and continuous optimization of training plans, ensuringthe scientific, rational, standardized, and effective management of Company training.EnhancingEffectivenessEvaluation
Core Training Performance
Safety Production Training
With a total of1,711 training sessions
Establishing a Talent Reserve SystemThe Company is committed to building a diversified talent reserve system. We continuously refine the cultivationmechanism for young cadres and collaborate with industry forces to foster innovative craftsmen, therebystrengthening the Company's high-quality talent pool and comprehensively enhancing its innovation level and marketcompetitiveness.
Strengthening the Reserve of Young Cadres
The Company continues to reinforce the construction
of young talent teams, injecting new vitality into itsdevelopment. We have established a targeted reservecadre system for young talents, standardizing theselection and appointment process for young reservecadres. A comprehensive reserve cadre cultivationplan has also been implemented. By the end of 2024,young cadres born in the 1980s and 1990s accountedfor nearly 90% of the total cadres selected and
appointed across all levels.
Vigorously Cultivating Innovative Talents
The Company places high importance on thecultivation of innovative talents. This year, wespearheaded the establishment of the JiangsuProvince Carbon Fiber Industry Model Worker(Craftsman) Innovation Studio Alliance, contributing tothe industry's efforts to nurture more innovativecraftsmen. Additionally, we actively carried out talentproject applications, organizing 23 talent applicationprojects this year, with 32 individuals successfully
approved.
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Sustainable Development ColumnGovernanceEnvironmentSocial
This year, the Company training sessions on topics such as job skills, quality systems, safety production,
and regulations
With a cumulative attendance of55,575 participants
Strengthening the Talent Cultivation MechanismTo continuously improve the talent cultivation mechanism, the Company has revised the "Training ManagementSystem" in line with industry development trends and its own business needs. Adopting a classified and hierarchicaltraining approach, we are constantly deepening and expanding the scope and depth of talent development.Additionally, within the framework of the "Annual Training Plan," we have defined annual training objectives, rationallyplanned and managed training resources, and continuously enhanced the effectiveness of training and the conversionrate of learning outcomes.
The Official Inauguration of the Jiangsu Province Carbon Fiber Industry Model Worker (Craftsman)Innovation Studio AllianceCaseIn December 2024, the Model Worker (Craftsman) Innovation Studio Alliance of the Carbon Fiber Industry in JiangsuProvince (hereinafter referred to as the "Alliance") was officially inaugurated in Nanjing. The Alliance aims to thoroughlystudy and implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, earnestly carry out the"Opinions on Deepening the Reform of Industrial Worker Team Construction" issued by the CPC Central Committee andthe State Council, vigorously promote the spirit of model workers, labor, and artisans, and unite and lead modelworkers and advanced practitioners in the carbon fiber industry to play a demonstrative and leading role. Focusing onareas such as new product development, industrial upgrading, and application improvement, the Alliance seeks tofurther enhance the technological innovation capabilities and development levels of the carbon fiber industry.
Inauguration Ceremony of the Jiangsu Province Carbon Fiber Industry Model Worker (Craftsman) Innovation Studio Alliance
Zhongfu Shenying Organizes Grassroots Employees to Apply for Scientific andTechnological Innovation AchievementsCaseIn 2024, the Company organized grassroots employees to apply for 21 provincial and municipal "Five Small"innovation projects. Among them, 6 projects participated in the selection of outstanding projects in the JiangsuProvince Employees' "Five Small" Activities, and 3 won first and second prizes in the Xining City "Five Small"Innovation Achievement Competition. Additionally, the Company assisted grassroots employees in applying for21 municipal scientific and technological innovation achievement awards for 2023, of which 6 were honored withthe titles of "Outstanding Innovation Achievements in Employee Innovation Activities" and "Advanced EmployeeOperation Methods" this year.
Awards from the "Five Small" Innovation Achievement Competition
8788
Sustainable Development ColumnGovernanceEnvironmentSocial
Deepening Corporate ResponsibilityOperations
Zhongfu Shenying adheres to the principles of integrity, fairness, and transparency, respects andsafeguards the legitimate rights and interests of partners, and strives to build mutually beneficial andtrustworthy cooperative relationships. Together with our partners, we are committed to creating asustainable operating environment. This year, 100% of the Company’s suppliers signed anti-corruptioncooperation agreement.
Implementing Green Procurement
Supplier ESG Audits
?Entry Stage:
A multi-department supplier evaluation team is established to review and conduct on-site audits of suppliers'environmental management, occupational health and safety management, and other ESG-related practices.Relevant documents such as the "Supplier Survey Form" and "Supplier Risk Assessment Form" are created.Only qualified suppliers are included in the list of approved suppliers.
?Routine Audits:
Methods such as document reviews and on-site inspections are used to conduct annual audits, routine spotchecks, and usage-phase inspections of suppliers, ensuring continuous control over their ESG performance.
?Performance Evaluation:
An annual performance evaluation is conducted for all suppliers, including ESG-related performanceassessments. Suppliers with unsatisfactory evaluations are disqualified, and the list of approved suppliers isrevised based on the results, achieving dynamic supplier management.
Enhancing Supplier ESG Awareness?Advocate green procurement and give preference to suppliers with low-carbon and environmentally friendlyproduction processes under the same conditions, so as to effectively promote the low-carbon development ofthe supply chain.
?Long-term suppliers are required to sign compliance agreements and other compliance agreements,
requiring both parties to jointly comply with national laws and regulations and relevant internal managementregulations, so as to ensure that the cooperation between the two parties is honest and transparent.
Implementing Responsible MarketingZhongfu Shenying upholds a customer-centric service philosophy, continuously improving service quality and activelyresponding to customer needs. The Company focuses on building a comprehensive and systematic service network,enhancing brand marketing capabilities through regular customer visits, invitations to renowned domestic andinternational exhibitions, and the distribution of internal publications. This year, the Company revised its customermanagement system to standardize daily sales processes and improve service communication efficiency.
Expanding High-End MarketsThis year, the Company deepened the application of carbon fiber in high-end manufacturing and clean energy sectors.Based on high-quality products and efficient R&D, we steadily advanced in domestic and international markets, furthersolidifying the foundation of our "high-end" strategy.Established a carbon fiber photovoltaic application technology research group to further develop and verify thefeasibility of carbon fiber applications in more areas.Accelerated the expansion of overseas applications in pressure vessels, wind power, and sports sectors,conducting visits to key overseas clients and taking solid steps toward global expansion.Actively responded to the latest demands in the electronics 3C and new energy vehicle sectors, engaging in in-depthcommunication with customers to broaden carbon fiber application scenarios.
9192
Sustainable Development ColumnGovernanceEnvironmentSocial
Customer Complaint Management
The Company actively responds to customer complaints and consistently adheres to the "Delivery and Service ControlProcedures," ensuring that customer complaints are handled by designated departments, following standardizedprocesses, and employing efficient resolution methods. The Company requires that complaints be acknowledgedwithin 24 hours and resolved within 48 hours, ensuring prompt attention to customer feedback.
Customer Complaint Handling Process at Zhongfu Shenying
?Established a dedicated customer service team and provided professional training to improvecommunication skills, problem-solving abilities, and emotional management, thereby enhancing thecapacity to handle customer complaints.?Added after-sales service representatives and product delivery managers to provide one-on-one follow-
up throughout the "pre-sale, during-sale, and post-sale" stages, ensuring real-time tracking and timelyfeedback on customer needs.
?Expanded communication channels, including phone, WeChat, and email, to offer customers multiple
ways to communicate.
?Implemented a digital system to record and track complaints, improving transparency in the complaint
handling process.?Adopted cross-departmental collaboration to identify and resolve recurring issues, increasingprocessing efficiency.
?Using scientific analysis to find the root of problems, improve product quality step by step, and boost
customer satisfaction.?Strengthened customer privacy protection measures, strictly adhering to privacy policies and requiring
all employees to sign confidentiality agreements to ensure customer information is safeguarded,
maintaining customer trust.
This year, to further optimize customer complaint management, the Company implemented a series ofmeasures to enhance complaint handling efficiency:
Customer Satisfaction SurveysThe Company continuously implements the "Customer Satisfaction Measurement Control Procedures," regularlyconducting satisfaction surveys covering product performance, service quality, and delivery timeliness to effectivelygather feedback on the Company's products and services. Based on the survey results, the Company generatessatisfaction reports, formulates targeted improvement plans, and monitors the effectiveness of these measures,ensuring a closed-loop management system for service enhancement.This year, the Company set and achieved a management goal of maintaining an average satisfactionscore of no less than 95 for two consecutive years.
Hotline
0518-86070008
sales@zfsy.com.cnWebsitewww.zfsycf.com.cn
Customer
After-SalesSpecialistCommunication &Needs Identification
Feedback torelevantdepartments
Sales Dept.Technical Dept.Production Dept.Quality Control Dept.
After - sales
solutionSolutionImplementation
Follow-up Visit
Generate After-Service Report
9394
Sustainable Development ColumnGovernanceEnvironmentSocial
Dedicated to Creating Social ValueZhongfu Shenying actively fulfills its social responsibilities, consistently focusing on the well-being of the communitieswhere it operates. Leveraging its business and resource advantages, the Company continues to support ruralrevitalization and public welfare initiatives, contributing to social progress, enhancing people's livelihoods, andrealizing the vision of "a better life for the people."
Demonstrations of Responsibility
Continuous Four-Year "Shenying Scholarship" ProgramIn October 2024, the Youth League Committee of Zhongfu Shenying's Xining branch
9596
12,000 RMBin scholarshipsproviding a total of6 impoverished students from Houyao Village,Handong Township, Huangzhong Districtassisted
Celebrating New China, Inspiring Young Minds" Youth Science Open Day Event
Celebrating New China, Inspiring Young Minds | Zhongfu Shenying Hosts "Resource Efficiency Day" Open EventCaseIn August 2024, Zhongfu Shenying hosted the fifth "Resource Efficiency Day" open event under the China NationalBuilding Materials Group, themed "Celebrating New China, Inspiring Young Minds." The event invited over 100 childrenand family members of employees to immerse themselves in the Company's environment, embarking on a warm andengaging "Shenying Walk." Participants visited the corporate exhibition hall to learn about the history and applicationsof carbon fiber, gaining insight into Zhongfu Shenying's commitment to national responsibility, overcoming globalcarbon fiber challenges, and realizing the dream of "Made in China" carbon fiber. Additionally, children participated incarbon fiber tensile experiments, deepening their understanding of its exceptional properties and sparking theirinterest in scientific knowledge.
Shenying Xining Donates Aid Funds
Collective Fundraising for Jishishan Earthquake Relief
In April 2024, responding to the Xining General Trade Union's call for rural povertyalleviation, Shenying Xining donated poverty alleviation funds and medicines wortha total of 60,000 yuan to 85 households in Xiakuan Village, Duolin Town, DatongCounty, Xining.
Shenying Xining Boosts Rural RevitalizationCase
In December 2023, a 6.2 - magnitude earthquake struck Jishishan County, Linxia,Gansu Province, affecting Zhongchuan, Guanting and other townships in MinheCounty, Hai dong Prefecture, Qinghai Province and causing significant casualtiesand property damage. The Shenying Xining Company Trade Union called for activedonations from its employees, with 1,965 people participating and a total of 89,700yuan raised, demonstrating the cohesion and unity of the Company’s employees.
Shenying Xining Launches Fundraising CampaignCase
Sustainable Development ColumnGovernanceEnvironmentSocial
Sustainable development KPIs
IndicatorUnit20232024Energy
Comprehensive energy consumptiontce180,371.63163,336.09Comprehensive energy consumption perton of carbon fiber
tce/ton carbon fiber8.678.32Total direct energy consumption
tce2,589.082,045.55Total indirect energy consumption
tce177,782.55 161,290.54Include: Total purchased electricityconsumption
tce61,549.34 55,859.24Include: Total purchased heatconsumption
tce116,233.21 105,431.30Greenhouse GasTotal GHG emissions
ton of CO
e650,218586,016GHG Emission per ton of carbon fiberton of CO
e/ton carbon fiber31.2429.85Include: Direct GHG emissions(Scope1)
ton of CO
e4,64220,420Include: Indirect GHG emissions(Scope 2)ton of CO
e645,576565,596WasteHazardous waste generatedton1,941.161,504.98Hazardous waste generated per ton ofcarbon fiber
ton/ton carbon fiber0.090.08Non-hazardous waste generatedton2,741.902,720.92Non-hazardous waste generated per tonof carbon fiber
ton/ton carbon fiber0.13 0.14
Waste disposal
Industrializedtreatment
ton1,010.302,661.56Landfillton1,251.20
350.00
Incineration powergeneration
ton492.36
40.00
Incinerationwithout powergeneration
ton1,929.201,298.36
IndicatorUnit20232024Resources consumptionConsumption of non-renewable materials10,000 ton4.353.89Materials consumption per ton of carbonfiber
ton/ton carbon fiber2.091.98Total water discharge10,000 ton173.64118.21Total water withdrawal
10,000 ton313.71243.35Total water withdrawal per ton of carbonfiber
ton/ton carbon fiber150.72 123.96Recycled water consumption10,000 ton10,103.6610,248.81
Environmental protection investment
Environmental protection expenditure
10,000 RMB3,770.722,733.75
9 The coverage of the following KPIs is the same as that of the consolidated statements. In case of any discrepancies between the totalnumber and the sum of the data and ratios disclosed herein, it is due to rounding.10 Direct energy consumption mainly covers natural gas. The result is calculated in accordance with the General Rules for Calculationof the Comprehensive Energy Consumption (GB/T2589-2020).11 Indirect energy consumption covers purchased electricity and purchased heat. The result is calculated in accordance with theGeneral Rules for Calculation of the Comprehensive Energy Consumption (GB/T2589-2020).12 The calculation of GHG-related emissions has referred to the Notice on the Key Work Related to the Management of EnterpriseGreenhouse Gas Emission Reporting in 2022 ,the General Guideline of the Greenhouse Gas Emissions Accounting and Reporting forIndustrial Enterprises (GB/T32150-2015), as well as other national and international standards.13 This year, the Company has adjusted its energy consumption structure by increasing the proportion of natural gas usage. As aresult, the proportion of Scope 1 and Scope 2 greenhouse gas emissions has shifted accordingly.14 In response to external policies related to waste management, the Company has revised its methods for disposing of non-hazardous waste.15 All water acquired by the Company is from tap water that provided by the third-party Company, and there is no water acquired byhigh water pressure regions.16 Environmental protection expenditure includes the expenditures for environmental protection and ecological restoration.
Environmental KPIs
9798
Social KPIsIndicatorUnit20232024Employees
Total number of employeesPerson3,7192,955By gender
MalePerson2,1391,734FemalePerson1,5801,221By ethnicity
Han employeesPerson3,4142,735Minority employeesPerson305220
By position level
Senior employeesPerson
Include：FemalePerson
Middle-levelemployees
Person
7077Include：FemalePerson2022General employeesPerson3,6402,869Include：FemalePerson1,5581,197By age
Under 30 years oldPerson1,45592830-50 years oldPerson2,1691,944Over 50 years oldPerson9583Employees with STEM
relative workPerson325303Include: Female employees with STEMrelative work
Person
7376Total number of newly recruitedemployees
Person
1,082366Include：Total number of internallyrecruited employees
Person
143144Total number of internally recruitedemployees
%13.2239.34Employee turnover rate
%14.5214.26Employee training
Average training hours of employeeshours128.61
110.20
IndicatorUnit20232024
By gender
Malehours127.07
110.17
Femalehours130.73
110.22
By position level
Senior employeeshours38.89
103.11
Middle-levelemployees
hours128.62
116.45
General employeeshours
128.85
110.05
By age
Under 30 years old
hours
128.08
111.08
30-50 years old
hours
130.63
110.86
Over 50 years oldhours88.8284.48Number ofenvironmentaltraining sessionsand participants
Number of
environmental
training sessions
Case1012
Number of
environmental
training
participants
Person-time3,0781,103
Employee's rightNumber of employees joining staff union人3,7192,955Percentage of employees joining staffunion
%100100Percentage of employees signingcollective contracts
%100100Percentage of employees representedthrough the staff and workers' congress
%100100
Safety and health
Number of work-related fatalitiesPerson00Death rate per 1,000 employees‰00Number of deaths of contractors due towork
person00Number of lost workdays due tooccupational injuries
day00Lost time injury frequency rate (LTIFR) foremployee
day00Lost time injury frequency rate (LTIFR) forcontractor
day00Expenditure for production safety10,000 RMB1,981.511,797.0899100
IndicatorUnit20232024
17 STEM stands for Science, Technology, Engineering, and Mathematics.18 Employee turnover rate = number of employees turned over throughout the year / number of employees at the end of the period.19 Customer satisfaction refers to the score calculated through the results of the annual customer satisfaction survey.20First tier supplier is the supplier who take direct trading with the Company.21 Important supplier is the combination of category A and category B.101102
IndicatorUnit20232024
R&D
Number ofintellectualproperty
Patents applied forduring the year
piece
230269where patents forinventions
piece
123166Patents grantedduring the year
piece
95107where patents forinventions
piece
1712Cumulative validpatents
piece
212319where patents forinventions
piece
4759Cumulativesoftware copyrightsregistered
piece
Responsible operation
Proportion of customers participating insatisfaction surveys
%100100Average satisfied rate of customer
%9596.35Number of cases of employees violatingcorporate Code of Conduct (Includingcorruption or bribery, discrimination orharassment, customer privacy leaking,conflicts of interest, money laundering, orinsider trading)
case00
Number of sign ofintegrity agreement
Signed PartyConduct andIntegrity BuildingResponsibilityAgreements
number2436Signed Integrityand Self-disciplineCommitmentAgreements
number205218
Supplier management
First tire supplier with training happened
number165178Important first tier supplier with traininghappened
number1717Percentage of expenditure that tradingwith important first tier supplier to totalexpenditure with all suppliers
%27.5935.60
Important supplier non-
with training happened
number00Total number of important supplier in theyear
number5560Number of supplier that undertake deskand on-site assessment
number5563Number of supplier that engaged theCompany's capacity building programs
number88Ratio of important supplier to totalsuppliers that engaged the Company'scapacity building programs
%30.928.0Public welfare
Investment topublic welfare
10,000 RMB46.616.2
Educationalassistance
Number of needywho accept theassistance
Person-time1726Costs to needy whoaccept theassistance
10,000 RMB21.3Total number ofassistance toUniversity student
person2513Total amount ofscholarshipsdistributed in theyear
10,000 RMB101.3
Welfare event
Offeringcondolences toemployees in need
Person-time3434Costs to offeringcondolences toemployees in need
10,000 RMB4.674.34
Perspective
Looking to the future, Zhongfu Shenying will continue to deepen the implementation of the green andhigh-quality development concept, firmly anchor the strategic direction of "green, high-end, international,large-scale", and combine the core ideas of "innovation-driven breakthroughs, in-depth market demand,and quality lean management". It will deepen the enabling role of its products in the green transformationof the entire industrial chain, accelerate the construction of a low-carbon circular system for the carbonfiber industry, and comprehensively enhance the competitiveness of the enterprise in the global valuechain. With determination and unity, Zhongfu Shenying will strive to create green and high-quality carbonfibers, and contribute to the evolution of the global carbon fiber industry towards greater efficiency,cleanliness, and sustainability.
103104
AppendixIndex table ofindicators
Index of Reference of ESG Indicators System for ESG Reportsof Listed Companies Controlled by Central Enterprises
Disclosure
Chapter, page number orother descriptionsEnvironmentalPrimaryindicators
Secondaryindicators
Tertiary indicators (to be filled)
Resourceconsumption
Water
E1.1.1 Fresh water usageE1.1.2 Circulating water consumptionE1.1.3 Percentage of recycled water usageE1.1.4 Intensity of water consumption
Environment - Continuingto PromoteEnvironmentally FriendlyProduction;Index table ofindicators - EnvironmentalKPIs
Energy
E1.3.1 Fossil energy consumptionE1.3.2 Non-fossil energy consumptionE1.3.3 Proportion of non-fossil energy useE1.3.4 Total energy consumptionE1.3.5 Energy intensity
Index table of indicators -Environmental KPIs
Packagingmaterials
E1.4.2 Packaging material lightweight reduction
Environment -Accelerating the Transitionto Low-Carbon Production
Prevention andcontrol ofpollution
Wastewater
E2.1.1 Wastewater discharge complianceE2.1.2 Wastewater management and abatementmeasuresE2.1.3 Wastewater dischargeE2.1.4 Wastewater pollutant emissionsE2.1.5 Wastewater pollutant dischargeconcentration
Environment - Continuingto PromoteEnvironmentally FriendlyProduction;Index table ofindicators - EnvironmentalKPIs
Waste gas
E2.2.1 Waste gas emission complianceE2.2.2 Emissions of waste gas pollutantsE2.2.3 Waste gas pollutant emission
Solid waste
E2.3.1 Legal compliance for solid waste disposalE2.3.2 General industrial solid wastemanagementE2.3.3 General industrial solid waste disposalE2.3.4 Hazardous waste managementE2.3.5 Hazardous waste disposal volume
Disclosure
Chapter, page number orother descriptionsPrimaryindicators
Secondaryindicators
Tertiary indicators (to be filled)
Climate Change
GHG emissions
E3.1.1 Sources and types of greenhouse gasesE3.1.2 Greenhouse gas emissions managementE3.1.3 Scope I emissionsE3.1.4 Scope II emissionsE3.1.6 Greenhouse gas emission intensity
Environment - ProactivelyAddressing ClimateChange;Index table ofindicators - EnvironmentalKPIsEmissionreductionmanagement
E3.2.1 Greenhouse gas emission intensityE3.2.2 Greenhouse gas emission reductions
Environment -
Accelerating the Transitionto Low-Carbon Production;Index table of indicators -Environmental KPIs
Climate riskmanagement
E3.4.1 Climate risk management
Environment - Proactively
Addressing ClimateChange
Resource andenvironmentalmanagementsystems andmeasure
Low-carbondevelopmentgoal settingand strategicmeasures
E5.1.1 Low-carbon development goal-settingand strategic measures
Sustainable DevelopmentColumn - SustainableDevelopment Strategy;Environment -
Accelerating the Transitionto Low-Carbon Production
Resourcemanagementmeasures
E5.2.1 Water use managementE5.2.2 Material Use ManagementE5.2.3 Energy use and energyconservation management
Environment - Continuingto PromoteEnvironmentally FriendlyProduction; Environment -Accelerating the Transitionto Low-Carbon Production;Index table of indicators -Environmental KPIs
Green actionsand measures
E5.4.1 Cleaner productionE5.4.2 Green technologies and recyclingE5.4.4 Green office and operationsE5.4.5 Green procurement and green supplychain management
Environment -
Accelerating the Transitionto Low-Carbon Production;
Green/ low-carboncertifications
E5.5.1 Environmental management systemcertificationE5.5.2 Green low carbon enterprise certificationE5.5.3 Certification of green and low carbonproducts and services
Environment -Accelerating the Transitionto Low-Carbon ProductionGreen/ low-carboncertifications
E5.6.1 Emergency response plan forenvironmental emergencies
Environment - Continuingto PromoteEnvironmentally FriendlyProduction105106
Disclosure
Chapter, page number orother descriptions
SocialPrimaryindicators
Secondaryindicators
Tertiary indicators (to be filled)
Employees'rights andinterests
Recruitmentandemployment
S1.1.1 Corporate recruitment policy andimplementationS1.1.2 Employee structureS1.1.3 Avoidance of child or forced labor
Social-Fully SafeguardingEmployee RightsEmployeeremunerationand benefits
S1.2.1 Compensation philosophy and policyS1.2.2 Working hours and rest and vacationS1.2.3 Security of remuneration and benefitsS1.2.4 Democratic management of employees
Social-Fully SafeguardingEmployee Rights
Health andsafety
S1.3.1 Employee occupational health and safetymanagementS1.3.2 Employee safety risk prevention andcontrolS1.3.3 Responding to safety accidents andworkplace injuriesS1.3.4 Employee care and support
Social-ImplementingIntrinsic Safety ; Social-Fully SafeguardingEmployee Rights
Employeedevelopmentand training
S1.4.1 Employee incentive and promotion policyS1.4.2 Employee education and training
Social-ComprehensivelyPromoting TalentDevelopment
Employeesatisfaction
S1.5.1 Employee satisfaction surveyS1.5.3 Employee turnover
Social-Fully SafeguardingEmployee Rights; Indextable of indicators - SocialKPIs
Product andservicemanagement
Product safetyand quality
S2.1.1 Policies and measures for standardisedmanufacturing managementS2.1.2 Quality managementS2.1.4 Negative events for products or services
Social-Strictly EnsuringProduct QualityCustomerservice andrights
S2.2.1 Customer satisfactionS2.2.2 Customer complaints and responses
Social-DeepeningCorporate ResponsibilityOperations
Innovativedevelopment
S2.3.1 R&D and innovation management systemsS2.3.2 R&D investmentS2.3.3 Achievements in InnovationS2.3.4 Protection of intellectual property
Social-Commitment toTechnological Innovation
Disclosure
Chapter, page number orother descriptionsPrimaryindicators
Secondaryindicators
Tertiary indicators (to be filled)
Supply chainsafety andmanagement
Suppliermanagement
S3.1.1 Supplier selection and managementS3.1.2 Number and distribution of suppliers
Social-DeepeningCorporate ResponsibilityOperations;Index table ofindicators - Social KPIsSupply chainmanagement
S3.2.1 Policies and measures in supply chainmanagementS3.2.2 Supply chain security assurance andcontingency plansS3.2.3 Significant risks and impacts (supplychain)
Social-DeepeningCorporate ResponsibilityOperations
Contributionto society
Prosperity withthe community
S4.2.1 Policies and measures in local communitybuildingS4.2.2 Contribution and impact on localcommunities
Social-Dedicated toCreating Social ValueSocial welfareactivities
S4.3.1 Policies and measures to participate insocial welfare activitiesS4.3.2 Investment and performance in socialwelfare activitiesResponse tonationalstrategies
S4.4.1 Industrial transformationS4.4.2 Rural revitalisationand regionalcoordinated development
Social-Commitment toTechnological Innovation;Social-Dedicated toCreating Social Value
GovernancePrimaryindicators
Secondaryindicators
Tertiary indicators (to be filled)
Governancestrategy andorganisationalstructure
Governancestrategy andprocess
G1.1.1 Governance strategy formulationG1.1.2 Governance policy supervision processG1.1.3 Approval and review process ofgovernance policyG1.1.4 Party Building leads
Governance - DeepeningComprehensive CorporateGovernanceOrganisationalstructure andfunctions
G1.2.2 Organizational structure and functions ofthe Board of Directors, the Board of Supervisorsand the ManagementStandardisedgovernance
Internal controlG2.1.1 Internal auditIntegritybuilding
G2.2.1 Regulations and norms of integrityconstructionG2.2.2 Effectiveness of integrity constructionmeasures
107108
Disclosure
Chapter, page number orother descriptions
Primaryindicators
Secondaryindicators
Tertiary indicators (to be filled)
Investorrelationmanagementandshareholders’equity
Investorrelationmanagement
G3.1.1 Investor relations management strategyG3.1.2 Investor communication
Governance - SmoothCommunication withStakeholdersShareholders’equity
G3.2.1 Shareholders' Meeting (General Meeting)G3.2.2 Shareholder communicationG3.2.3 Shareholders' right to know andparticipate in decisionmakingTransparency inInformationdisclosure
Informationdisclosurepolicy
G4.1.2 Non-Financial information disclosure
Governance - DeepeningComprehensive CorporateGovernanceQuality ofinformationdisclosure
G4.2.1 Regular monitoring, auditing, andevaluation of all disclosed informationcompliance and risk management
Governance - DeepeningComprehensive CorporateGovernanceComplianceoperation andriskmanagement
Complianceoperation
G5.1.1 Compliance operation systemG5.1.2 Status of compliance systemdevelopmentComplianceoperation andriskmanagement
Complianceoperation
G5.1.3 Specific process of compliance review
Governance - DeepeningComprehensive CorporateGovernanceRiskmanagement
G5.2.1 Risk identification and early warningG5.2.2 Risk control and trackingG5.2.3 Risk reporting and management
GRI index
Table of contentsGRI indicators system
Sustainable DevelopmentColumn
Sustainable Development Strategy2-22Sustainability Performance Review in 2024Sustainability Management Framework2-14Honors and Awards in SustainabilityAnalysis and Evaluation of SustainableDevelopment Materiality Issues
2-1；2-29Governance
Deepening Comprehensive CorporateGovernance
2-9；2-10；2-11；2-12；2-13；2-
15；2-18；2-25；2-27；2-29；
204-103；205-2；205-3；206-103
308-103；308-1；308-2；413-103
| ； |
414-103；414-1；414-2；418-103
Environment
Accelerating the Transition to Low-CarbonProduction
302-103；302-4；305-103；305-5Continuing to Promote Clean Production
302-4；303-103；303-1；303-2；
305-103Accelerating the Construction of a CircularSystem
301-103；302-4；303-103；303-1
303-2；305-103Driving Green and Lightweight DevelopmentProactively Addressing Climate Change201-2；302-4
Social
Strictly Ensuring Product Quality416-103；416-1；413-103Commitment to Technological InnovationSteadfastly Advancing IntelligentDevelopmentImplementing Intrinsic Safety
2-25；402-104；403-1；403-2；
403-3；403-4；403-5；403-6；
403-7；403-8Fully Safeguarding Employee Rights
2-15；2-20；2-25；2-26；202-
103；206-103；401-103；402-
103；405-103；406-103；406-1；
407-103；408-103；409-103Comprehensively Promoting TalentDevelopment
404-103；404-2Deepening Corporate ResponsibilityOperations
2-15；2-25；204-103；308-103；
308-1；308-2；414-103；414-1；
414-2；418-103Dedicated to Creating Social Value413-103Sustainable developmentKPIs
Environmental KPIs
302-1；302-2；302-3；303-4；
303-5；305-1；305-2；305-4Social KPIs
2-7；2-8；401-1；401-2；403-9；
404-1
109110
Index table ofindicators
GRI Index
Table of contentsGRI indicators systemIntroduction/2-1；2-2；2-3；2-6Chairman statement2-22About us
Brief introduction2-6；203-103Corporate culture
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