2023 SUSTAINABILITY REPORT
Addressing Climate ChangePollution Control and Ecosystem ProtectionResource Utilization and Circular Economy
Environmental
Governance for SustainableDevelopmentPrevention of Commercial Bribery andUnfair Competition
Governance
Innovation-Driven, Suppliers, andCustomersRural Revitalization and Public ServicePeople
Social
Preparation of Report
About XTC
Message from theChairman
Reference GuidelinesReporting ScopeReport DataExternal AssuranceReport Availability and FeedbackExplanatory Note
Message from the Chairman
Our BusinessOur Contribution to SDGs2023 Economic, Enviromental and Social In?uence2023 Honors and Awards
Appendix
Data OverviewGRI Standards IndexISDS IndexSASB IndexIndicators Reference for ESG Report ofListed Chinese Central State-OwnedEnterprisesVeri?cation Statement ofGreenhouse Gases EmissionsIndependent Limited Assurance Report
Preparation of Report
This is the 2023 Sustainability Report ("this report") released by Xiamen Tungsten Co., Ltd.(Hereinafter referred to as "XTC" or "We"). This report aims to provide stakeholders with anof overview our management efforts in environmental, social, and governance aspects in2023, as well as the initiatives and achievements made towards advancing the United NationsSustainable Development Goals.
The reporting period is between January1, 2023, and December 31, 2023, andsome parts of the report may be beyondthe aforementioned scope. Unlessotherwise specified, the environmentaldata disclosed in this report covers ourmain manufacturing enterprises, andthe economic and social data coversthe enterprises within the scope of ourconsolidation.
This report is prepared in accordance with the "GlobalReporting Initiative Standards" (GRI Standards) and"Sustainability Accounting Standards Board Standards"(SASB Standards). Additionally, it incorporatesthe "Guidelines No. 1 for Self-regulation of ListedCompanies on the Shanghai Stock Exchange - StandardOperation", "Guidelines No. 14 for Self-regulation ofListed Companies on the Shanghai Stock Exchange -Sustainability Report (Trial) ", SASAC Research Center’s"Indicators Reference Systems for ESG Reports of ListedChinese Central State-Owned Enterprises," IFRS S1General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures developed by the InternationalSustainability Standards Board (ISSB), and the UnitedNations Sustainable Development Goals (SDGs).
The financial data in this report isextracted from Annual Report FY2023 ofXTC audited by Grant Thornton China CPALLP. The greenhouse gas emission data isobtained from the "2023 Greenhouse GasVerification Statement of Xiamen TungstenCo., Ltd. " issued by Bureau VeritasCertification (Beijing) Co., Ltd and the"2023 Greenhouse Gas Verification Reportof XTC New Energy Materials (Xiamen)Co., Ltd.” issued by Societe Generale deSurveillance S.A.. Other data is sourcedfrom our internal systems or manuallycompiled.
RSM China CPA LLP independently guarantees the environmental, social and corporate governance performance key indicatorsin this report, and the external assurance,working scope, methodology of work andconclusion of assurance are set out in theAppendix.
Report DataExternal AssuranceReport Availability and FeedbackReporting ScopeReference Guidelines
The report is released once a year in electronicformat in both Simplified Chinese and Englishversions. In case of any inconsistency betweenthe Chinese and English versions, the Chineseversion shall prevail. The electronic version of thereport can be accessed and downloaded from ourofficial website (www.cxtc.com) and ShanghaiStock Exchange website (www.sse.com.cn). In theprocess of preparing the report, we have takeninto account the reading requirements of differentstakeholders, to the extent possible, and madethe report as concise, clear and easy to read aspossible. Due to practical constraints, aspects ofthis report may not be entirely satisfactory. Yourcomments and suggestions are welcome and westrive to address your concerns in an effort tocontinually improve moving forward.
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Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixReference Guidelines Reporting Scope Report Data External Assurance Report Availability and Feedback Explanatory Note
XWXN (Xiamen)XTC New Energy Materials (Xiamen) Co., Ltd.XWXN (Sanming)XTC New Energy Materials (Sanming) Co., Ltd.
XWXN (Ningde)XTC New Energy Materials (Ningde) Co., Ltd.XWXN (Yaan)XTC New Energy Materials (Yaan) Co., Ltd.Chengdu Hongbo MolybdenumChengdu Hongbo Molybdenum Co., Ltd.Chengdu Hongbo IndustrialChengdu Hongbo Industrial Co., Ltd.Tianjin SofToolSofTool Manufacturing Co., Ltd.Basic Electronic MaterialsFujian Basic Electronic Materials Co., Ltd.Bobai JudianBobai Judian Mining Co., Ltd.RMAPResponsible Minerals Assurance Process
LECD
L (Likelihood, the probability of an accident),E (Exposure, the frequency of exposure to a hazardousenvironment),C (Consequence, the potential consequences of an accident).Three factors are given di?erent scores. The sum of these threescores is then multiplied to D (Danger) to evaluate the level of riskassociated with working conditions.
XTC, WeXiamen Tungsten Co., Ltd.XTC Haicang BranchXiamen Tungsten Co., Ltd. Haicang Branch
Xiamen JialuXiamen Tungsten (H.C) Co., Ltd.Malipo Haiyu TungstenMalipo Haiyu Tungsten (H.C) Co., Ltd.
Luoyang YuluLuoyang Yulu Tungsten Mining Co., Ltd.Ninghua XingluokengNinghua Xingluokeng Tungsten Mining Co., Ltd.Duchang JindingJiangxi Duchang Jinding Tungsten Co., Ltd.Xiamen HongluXiamen Honglu Tungsten & Molybdenum Industry Co., Ltd.Xiamen Golden EgretXiamen Golden Egret Special Alloy Co., Ltd.Haicang Golden EgretXiamen Golden Egret Cemented Carbides Co., Ltd.Longyan Rare-earthLongyan Rare-earth Development Co., Ltd.Golden Dragon Rare-earthFujian Changting Golden Dragon Rare-earth Co., Ltd.
GANPOWERGanzhou Highpower Technology Co., Ltd.
Explanatory Note
AbbreviationAbbreviationFull NameFull Name
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Reference Guidelines Reporting Scope Report Data External Assurance Report Availability and Feedback Explanatory Note
Message from the Chairman
In 2023, a year of turbulent changes, the global economy struggled forward, geopolitical tensionsescalated, and the increasingly extreme and frequent adverse weather triggered by climate changeunderscored a new turning point in world a?airs. Confronted with multiple challenges and opportunities,all members of XTC remained true to our original aspiration and founding mission, steadfastly focusingon our core business. We kept concentrating on the three core areas of tungsten and molybdenum, newenergy materials, and rare earths, vigorously advancing innovations in technological and management.We persisted in the path of sustainable development, embraced the concept of green growth, andmarched towards our strategic objectives, vision and mission.In the past year, we pursued innovation as the driving force, propelled reforms in institutionalmechanisms, management models, and technological research and development, thus comprehensivelyshaping a new landscape for enterprise development. During this period, we remained focused onachieving our interim goal of ‘strengthening improvements, yielding tangible results’, promotedour International Advanced Manufacturing (IAM) management model, profoundly implemented theIntegrated Product Development (IPD) innovative operational system, enhancing the adaptability of theIPD system to our business, and fully facilitating the construction and enhancement of manufacturing andinnovation capabilities. We achieved an increase in the comprehensive strength and core competitivenessof the enterprise, resulting in growth in economic bene?ts. Over the past year, we realized a consolidatedoperating income of CNY 39.398 billion and a net pro?t attributable to shareholders of CNY 1.602 billion,making XTC a place for shareholder to invest in.In the past year, we endeavored to implement responsible supply chain management, collaborated withpartners to foster a dynamic industry ecosystem, and constructed a resilient, responsible, and sustainablesupply chain to forge world-class products and services. Throughout this period, we continued toprioritize our three core businesses: tungsten and molybdenum, rare earths, and new energy materials.We strengthened our control over the raw material supply chain, rigorously managed product quality, andutilized advanced lean manufacturing practices and market-oriented product innovation to deliver high-quality, stable, and sustainable products to our global customers, thus contributing to the advancementof the manufacturing and new energy industries. Over the past year, we achieved signi?cant milestonesin research and development. Our independently developed high-strength tungsten wire for photovoltaicwas successfully mass-produced, exceeding a scale of 7.6 million kilometers, leading to a notable increase
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Message from the Chairman
in the e?ciency of silicon wafer processing and a reduction in energy consumption, therebye?ectively supporting the enhancement of quality and e?ciency in the photovoltaic industry.XTC's development of gear milling tools has successfully overcome the challenges in gearprocessing for domestic tools, signi?cantly reducing the production time of wind turbinegear rings and lowering tool costs. This advancement ensures the seamless operation ofthe supply chain in the wind power industry. The titanium alloy milling tools has achievedmajor breakthroughs in tool substrates, coatings, and surface edge treatments. The useof aluminum alloy tools in the milling of motor shaft grooves for new energy applicationsdramatically increases the lifespan. This guarantees e?cient and high-quality processing ofcore components in the aerospace, aviation, and new energy vehicle industries, achievingcost reduction and e?ciency enhancement to provide users with satisfactory service, makingXTC a place for customer to ?nd solutions.In the past year, we have been cultivating people-oriented culture and fostering mutualgrowth with our employees, which in turns providing talent momentum for enterprisegrowth. We emphasized the protection of every employee's rights and interests, upheldequal and compliant employment practices, listened to employees' voices, and strived toprovide a diverse, healthy, safe, and inclusive work environment, along with competitivecompensation and diversi?ed welfare bene?ts. We were attentive to each employee'sgrowth and development, orienting towards value creation and leveraging a goal-oriented performance culture to drive organizational optimization and enhance individuale?ectiveness. We re?ned talent mechanisms and talent pool construction, and establishedclear and open career development pathways for employees to unlock their potential andvitality. Moreover, we built a sound system of long-term incentives and constraints for sharedbene?ts and risk sharing, fostering a strong bond between employees and the organization
for mutual development and shared achievements, making XTC a place for employee torealize personal value.In the past year, we gained deep insights into the challenges and opportunities presented byenergy transition, explored innovations in green manufacturing and the low-carbon sector,and worked hard to establish new models of green production with signi?cant potential foradoption, ?rmly proceeded along the path of green development. Throughout this period, weadhered to the national carbon peaking and carbon neutrality goals, setting our targets forcarbon peaking by 2030 and achieving carbon neutrality by 2050. We conducted greenhousegas inventories and partial product carbon footprint assessments, formulated emissionreduction plans, and promoted energy conservation and emission reduction through greenproduct and technology innovation, digitization, and automation management. Additionally,we introduced non-emission energy sources such as photovoltaic and nuclear power tofacilitate energy structure transformation, and implemented initiatives like energy-savingrenovations of process equipment, focusing on improving energy conservation and emissionreduction to achieve carbon peaking and carbon neutrality goals and contribute to ?ndglobal climate change solutions. We are dedicated to minimizing the adverse impacts ofour business activities on climate change, water resources, land, and biodiversity throughtechnological and management innovations. While pursuing our own environmentallyfriendly development, we also addressed the demands and expectations of stakeholders insurrounding areas. Through diversi?ed communication mechanisms, active participationin local community activities, and interactive exchanges, we promptly understood ande?ectively addressed stakeholders' feedback and suggestions. Moreover, we continuouslyinvested in supporting community development in environmental protection, education,and economic aspects through means such as philanthropic donations and infrastructure
construction, aiming to reinforce the well-being enjoyed equally by every local resident,making XTC a place for society to bene?t from.The establishment of a robust and e?ective corporate governance system is the cornerstoneof achieving high-quality and sustainable development for enterprises. We implementeda comprehensive governance mechanism for sustainable development, continuouslyre?ning sustainable development policies and systems. We enhanced the e?ectiveness andthe level of ESG governance through the formulation of annual performance targets andindicators for various ESG issues, as well as tracking and evaluating completion status. Weestablished a comprehensive risk management system to bolster the company's overall riskmanagement and control capabilities. Additionally, we incorporated scenario modeling toidentify and assess sustainability risks and opportunities, thereby enhancing our strategicresilience amidst sustainability risks. In light of the evolving global landscape and changingcorporate dynamics, we commit to relentless diligence and proactive advancement. We willuphold a strategy of sustainable development, drive corporate transformation and growththrough innovation, accelerate the enhancement of our core competitiveness and globalimpact, and collaborate with stakeholders to collectively foster global economic, social, andenvironmental sustainability. Together, we will create a harmonious ecosystem and pursuehuman well-being.
Chairman of XTC
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Message from the Chairman
Tungsten concentrateMolybdenum concentrate | associatedRare earth ore
About XTC
We focus on three core businesses: tungsten and molybdenum, new energy materials, and rare earth.Through continuous technological and managerial innovation, we have built a complete front-endtungsten mine selection, mid-end tungsten and molybdenum smelting and production of tungstenand molybdenum powders, high-end deep processing applications such as hard alloys, tungsten andmolybdenum wire and cutting tools, and recycling of the entire industry chain, with many technologiesleading internationally. We have established a complete new energy material product line to support3C consumer electronics, new energy vehicles, and energy storage to create more possibilities andprovide advanced material solutions for achieving carbon neutrality. We have also established acomplete industry chain from rare earth mining, smelting, and separation to rare earth deep processingproducts, setting a model of rare earth development mode driven by deep processing to promoteindustrial development.
We aim to make XTC a place for employee to realize personal value,a place for customer to find solutions, a place for shareholder toinvest in, and also a place for society to benefit from.
To build XTC into a platform for talent gathering, technologyinnovation, and industrial development.
Pay attention to details, strive for progressive technology, advancesteadily, endeavor to enhance the markt share, and focus on long-term interests.
Our Mission
Our Vision
Our Business
Policy
Intelligent Mine
Advanced Materials
Deep Processing
Product Applications
循环再生利用
Our Business
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Our Business Our Contribution to SDGs 2023 Economic, Enviromental and Social Influence 2023 Honors and Awards
Ammonium Para-tungstate|APTTungsten powderMolybdenum powderRare earth oxideRare earth metalsLithium-ion cathode material precursorLithium-ion cathode materialNdFeB magnets
Tungsten and molybdenum wirematerialsHard alloyCutting toolsRock drilling engineeringtoolMagnetic materials|Components
New energy vehiclesAerospaceGeneral machineryPhotovoltaic powergenerationIndustrial motors
Recycling
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We actively respond to the national dual carbon strategy by organizingcarbonassessments, producing green products, researching and developing innovativetechnologies, implementing energy-saving technological upgrades, electrificationtransformations, increasing the proportion of clean energy usage, and offsettingemissions through carbon trading measures to continuously reduce emissions of carbondioxide and other greenhouse gases to achieve sustainable development.We strengthen the protection and management of water resources by innovating intechnology and equipment to achieve the recycling of water resources, improve waterresource utilization efficiency, minimize external water intake, and reduce emissions intothe external environment as much as possible.We strive to practice green production methods by increasing environmental protection
investment during production and operation, introducing clean production technologies,controlling the generation of pollutants from the source, and implementing a seriesof measures to reduce pollutant emissions, thereby reducing the negative impact ofproduction and operation on the environment.We attach importance to the protection of biodiversity, adhering to the concept of
"developing with protection, protecting in development," and simultaneously conductingecological restoration during business development. Greening is conducted in areasaffected by business activities to reduce the impact of business activities on theenvironment, thereby creating a suitable ecological environment for local biodiversityprotection.We emphasize resource recycling and utilization by implementing measures such as
secondary resource recycling and the recycling of auxiliary materials to reduce resourceconsumption and achieve efficient resource recycling, further promoting the developmentof the circular economy.
We lead with a theme of independent innovation, guided by market demand, andsupported by adequate research and development investment and a three-dimensionalresearch and development framework. We continuously deepen Integrated ProductDevelopment (IPD) and International Advanced Manufacturing (IAM), promote closecollaboration among production, learning, research, and application, and strengthenthe training of technical talents, constantly enhance the company's research anddevelopment innovation capabilities, and strive to create a platform for technologicalinnovation.We actively practice and advocate responsible sourcing principles, integrate sustainabledevelopment concepts into supply chain management, strictly implement the company'sESG-related requirements throughout the entire supply chain life cycle management,and actively engage in supplier communication and training. We adhere to and promoteresponsible sourcing policies for minerals from conflict-affected and high-risk areas,effectively prevent potential negative impacts and risks in the supply chain, andcollaborate with partners to build a green, low-carbon, and sustainable supply chain.We consistently view product quality as the lifeline of enterprise development andguarantee product quality and provide satisfactory services for customers as thefoundation of enterprise survival. Through a sound product management and customerservice system, we provide high-quality, responsible products and services, and strive tobuild a customer-focused sustainable product system.We continuously improve the information security management system, standardizeinformation security management work, effectively safeguard information security, andprotect the privacy of employees, customers, and other stakeholders.Actively participate in domestic and international forums related to responsible supply chainsto support the sustainable development of the industry.
As responsible corporate citizens, we use the United Nations' 17 Sustainable Development Goals (SDGs) outlined in the2030 Agenda for Sustainable Development as our action guide. We are committed to making our due contribution toalleviating global climate change, achieving national dual carbon goal, and enhancing the well-being of all humanity.
Environmental
Social
Our Contribution to SDGs
实践SDGs实践SDGs
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Governance
We continuously improve the top-down, clearly defined ESG governance structure,constantly optimize policies on sustainable development issue management accordingto business development needs, and strictly require all companies and employees withinthe scope of consolidation to comply with the global code of conduct specified in the ESGpolicy statement.
We establish a sound and comprehensive risk management system, continuously
optimize risk management and internal control systems and processes, construct asound verification and supervision mechanism, continuously strengthen and improve thecompany's risk control system, and effectively prevent various major risks in companyoperations.We adhere to the principles of compliance, integrity, and fairness, always take high
standards of business ethics as the basic principles and behavioral norms for businessoperations, and maintain a zero-tolerance attitude towards all forms of corruption andbribery.We respect intellectual property rights protection, conduct intellectual property
management and protection from aspects including patent ownership, applications,utilization, and rewards, continuously promote the cultural construction of intellectualproperty , and enhance employees' awareness of intellectual property protection.
Adhere to the principles of compliance, integrity, and transparency, comply with relevant
laws and regulations, follow internal control processes to identify, assess, and manage taxrisks, and fulfill tax obligations in accordance with the law.We provide diverse and accessible channels for stakeholders to lodge complaints and
reports, encourage stakeholders to make suggestions to the company on matters such asbusiness ethics, human rights protection, and environmental protection. We take a seriesof measures to protect the legitimate rights and interests of complainants.
实践SDGs实践SDGs
We commit to complying with international norms such as the “International Covenant
on Civil and Political Rights”, “the United Nations Guiding Principles on Business andHuman Rights”, and “the International Labor Organization Conventions”, to upholdhuman rights and protect labor rights, and create a harmonious, diverse, inclusive,equitable, and just working environment for employees.We improve the talent training system, build a fair competition platform, provide rich
and diverse training opportunities, establish clear career development channels, providecompetitive salary and benefits, improve the incentive mechanism for scientific researchachievements, and build and cultivate a high-level talent team.We adhere to the occupational health and safety management concept of "safety first,
people-oriented, main responsibility, and localized management." We establish asound safety production management system guided by annual occupational healthand safety production management objectives, and strive to provide a safe and healthyworking environment and conditions for employees, suppliers, contractors, and otherstakeholders.
We respect the rights, cultural customs, and lifestyles of indigenous people,
safeguard the personal and collective rights and interests of local residents, establishdiversified communication and feedback mechanisms, actively engage in communitycommunication and interaction, prioritize local procurement and local hiring, promotinglocal employment, and stimulating local economic development.
We actively participate in public welfare and volunteering, contribute to local
development in various aspects such as rural revitalization, education, culture,infrastructure, and people's livelihood, and build a good environment for harmonybetween enterprises and government , and harmony between enterprises and residents
Social
2023 Economic, Enviromental and Social Influence
Total environmental protectioninvestment16,617Ten-thousand RMBGHG emissions674,990
tCO
eGHG emissions intensity1,713tCO
e/ hundred-millionRMB of operatingrevenueEnergy consumption intensity
tons of coal equivalent/hundred-million RMB ofoperating revenueWater consumption intensity5,489m?/hundred-million RMB ofoperating revenue
Including：
·Total tax payment
141,322
Ten-thousand RMB·Employee compensation
272,637
Ten-thousand RMB·Dividends paid to shareholders 85,918
Ten-thousand RMB·Interests paid to creditors:
45,095 Ten-thousand RMB·Social donations 674
Ten-thousand RMB
Social ImpactEnvironmental Impact
Total social contributions545,646Ten-thousand RMB
Social contributions per share
3.85
Ten-thousand RMB
Work-Related Fatalities
persons
Total safety input
14,556
Ten-thousand RMB
Number of employees
17,549
Ten-thousand RMB
Research and developmentinput160,857Ten-thousand RMB
Volunteer service hours1,618hoursSafety Training Attendee69,037Attendees
Total Assets
3,927,252
thousand RMBOperating revenue3,939,791thousand RMBNet pro?t attributable toshareholders of the parentcompany
160,170thousand RMB
Economic Impact
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Our Business Our Contribution to SDGs 2023 Economic, Enviromental and Social Influence 2023 Honors and Awards
2023 Honors and Awards
XTC311th on Fortune China 500XTC267th on Fortune China 500 (Listed Companies)XTC"2023 Top 500 Enterprises of China" jointly awarded by China Enterprise Confederation and China Entrepreneur AssociationXTC86th on "2023 China Top 100 Leading Enterprises in Strategic Emerging Industries" jointly awarded by China Enterprise Confederation and China Entrepreneur AssociationXTC“2023 Best Practices for Corporate Governance” awarded by CAPCOXTC"Benchmark Enterprise" for 2023 Integrated Development Program of New Generation Information Technology and Manufacturing in Fujian ProvinceXTC7th in Fujian's first Top 100 Brand Value ListXTC"Benchmarking Enterprise with System Management Improvement" awarded by Fujian Provincial SASACGolden Dragon Rare-earth2023 Smart Manufacturing Demonstration FactoryGolden Dragon Rare-earthIncluded in the “Establish a world-class, specialized, high-end and innovation-driven demonstration enterprise”Ninghua Xingluokeng"Benchmark Enterprise" of the Integration Development Project of New Generation Information Technology and Manufacturing Industry in Fujian Province in 2023
XWXN73th in the "2023 Global Top 500 Rankings of New Energy Enterprises " awarded by China Energy News and China Institute of Energy Economics ResearchXWXN"2023 Most Valuable Listed Company on the Science and Technology Innovation Board" awarded by Shanghai Securities News and Financial News and "Science and Technology Innovation Board Daily"XWXN"Benchmark Enterprise" of the Integration Development Project of New Generation Information Technology and Manufacturing Industry in Fujian Province in 2023.
Honors and AwardsAwards Recipients
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Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
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Environmental
Addressing Climate ChangePollution Control and Ecosystem ProtectionResource Utilization and Circular Economy
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
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Establish strategic objectives of carbon peaking and net zero emissions for the group: Commit to managingScope 1 and Scope 2 GHG emissions, aiming to reach carbon peaking by 2030 and achieve net zero emissionsby 2050.
Obtain PAS2060 certification: Commit to achieving ne zero for Scope 1 and Scope 2 emissions inorganizational operations from January 1, 2023, to December 31, 2050, in accordance with PAS2060standards.
Continuously increase the proportion of clean energy usage.
Gradually phase out high-energy-consuming equipment and improve energy efficiency.
Complete the annual GHG inventory and verification for subordinate production-oriented enterprises inoperation.
We are committed to becoming a respected world-classenterprise, profoundly aware that protecting the Earth, a commonheritage of humanity, and ensuring that everyone equally enjoysthe bene?ts brought by technological advancement, are essentialfor the sustainable development of the company. Throughout ourdevelopment, we have always adhered to the concept of "makingXTC a place for society to benefit from," strictly complying withrelevant laws, regulations, and policies related to environmentalprotection in the countries and regions where we operate. Werelease a public "Environmental Protection Statement," pledging
to strengthen safety and green production, prioritize pollutionprevention and control, enhance ecological protection, andcontinuously reinforce the management of our business activitiesunder the guidance and supervision of the EnvironmentalProtection Committee. We create green production models withpotential for promotion and strive to reduce the negative impactof our operations on climate change, water resources, and land.Currently, 22 of our subordinate enterprises have obtained ISO14001 environmental management system certi?cation, covering61% of the production-oriented enterprises under the company.
Addressing Climate Change
2023 GHG Emission Management Goals
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Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
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We focus on three core businesses: tungsten and molybdenum, newenergy materials, and rare earths. Adhering to the corporate policy of"advance steadily, endeavor to enhance the market share, and focus onlong-term interests," we drive our growth with technological, managerial,and institutional innovations. We strengthen our position through therapid development of hard alloy and tool businesses, expand our presenceby deep processing of our three major businesses and developingapplication products, enhance our competitiveness through technologicalinnovation to increase sales revenue and profit contribution of newproducts, and ensure our stability through institutional construction andcorporate culture development. We strive to build XTC into "A platformfor talent gathering, technology innovation, and industrial development"through institutional and mechanistic innovation.
Strategy
We commit to achieving net zerofor Scope 1 and Scope 2 emissionsin organizational operations fromJanuary 1, 2023, to December 31,2050, in accordance with PAS2060standards, and to reaching carbonpeaking by 2030 and achieving netzero emissions by 2050.
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
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Management Initiatives for Carbon Emission ReductionClimate change poses a serious threat to the global economy, society, and environment, presenting a common challenge forhumanity. From January 1, 2023, to December 31, 2050, our Scope 1 and Scope 2 GHG emissions will achieve net zero emissions inaccordance with PAS2060 standards. We plan to achieve corporate net zero goal through a series of emission reduction initiatives,and contribute to the global temperature control objectives under the Paris Agreement.
Gradually phase out high-energy-consuming equipment during the production process, improve energy e?ciency, reducethe consumption of electricity and other fossil fuels, and decrease emissions resulting from fossil fuel consumption.
Actively invest in or purchase low-carbon and clean energy sources such as photovoltaic power, wind power, and nuclearpower. Increase the proportion of green electricity usage through national green power trading platforms.
Since there are process emissions sources in the production process of some of our products (e.g., lithium batteries) thatcannot realize net zero emissions through green electricity, net zero emissions can be achieved through carbon tradingmethods such as purchasing a small amount of carbon credits or o?sets.
Progressively electrify production equipment, replace coal-?red boilers and natural gas boilers with electric boilers, switchgasoline and diesel vehicles to electric vehicles, and utilize green electricity. This can signi?cantly reduce GHG emissionsfrom such fossil fuels. Alternatively, utilize biofuels instead of fossil fuels, such as using biomass pellets and biodiesel asboiler fuels.
Advance Energy E?ciency for High-Energy-Consuming Equipment
Increase the Proportion of Clean Energy Usage
O?set through Carbon Trading
Promote Electri?cation Transformation
Carbon Emission Management PlanWe are dedicated to managing Scope 1 and Scope 2 GHG emissions, setting GHG reduction targets with the 2022 GHG emissions asthe baseline, and establishing the following carbon emission reduction objectives：
Reach emission peak by 2030Utilize 100% green electricity and offset the
remaining carbon emissions through carbon sinksto achieve net zero emissions by 2050.
CarbonPeakingPhase
2023-2030
2031-2050
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Physical Risk Assessment
Physical Risk Assessment
CurrentStatus
20302050Asia: Typhoon may bring strong winds, heavy rain, storm surges, and ?ooding, causing seriousdamage to the buildings, equipment, and inventory of businesses. Flooding can also lead tourban infrastructure destruction and impact human well-being and health, particularly incoastal cities and residential areas.Europe: Coastal and inland ?ooding pose risks to residents, economies, and infrastructure.Asia: Loss of key species and ecological habitat types may occur, a?ecting ecosystem functionssuch as soil fertility, water circulation, and climate regulation.Europe: Potential destruction of marine and terrestrial ecosystems.Asia: Reduced coastal ?sheries resources, decreased precipitation, and increased temperatures insome areas may result from rising sea levels. Ocean warming, acidi?cation, and rising sea levelsmay lead to more frequent and widespread coral bleaching and subsequent coral mortality.Europe: Risks to coastal economies and infrastructure.
Asia: May encounter risks to food and water security.Europe: May encounter water scarcity across multiple interrelated sectors. Crop production lossesdue to the combination of heat and drought conditions and crop production losses causedby extreme weather.Asia: Likely to experience destruction of houses, buildings, and infrastructure, resulting in casualtiesand property damage. Landslides may lead to the interruption of roads, railways, and othertransportation routes, a?ecting normal transportation operations.Europe: May face collapses, landslides, mudslides, debris ?ows, and other hazards a?ecting people'slives and work safety.
Asia: Potential extreme temperature increases, changes in rainfall frequency, and droughts, posing risksto food and water security.Europe: Potential temperature rises and extreme heat, causing stress and fatalities on humans.
Extreme Low ImpactLow ImpactMedium ImpactHigh ImpactHigh Impact
SSP5-8.5SSP5-8.5SSP1-1.9SSP1-1.9In response to the long-term and severe challenges posed by climate change tohuman society, we integrate sustainability risk management into our corporaterisk management system. Drawing upon scenario models proposed by theIntergovernmental Panel on Climate Change (IPCC), we identify and assess thephysical risks the company faces in the near, medium, and long term. Additionally,we reference scenario models from the International Energy Agency (IEA) to identifyand assess the transition risks and opportunities the company may encounter in theshort, medium, and long term. Based on these analyses, we formulate correspondingrisk response measures and strategies for adaptation, continually enhancing thecompany's strategic resilience to sustainability risks and driving the company'ssustainable development forward.
Sustainability Risk Management
Physical Risks
① The very low emissions scenario SSP1-1.9: Assuming that global greenhouse gas emissions peak
around 2030 and then gradually decline, ultimately achieving net-zero emissions around 2050.
② The very high GHG emissions scenario SSP5-8.5: Global greenhouse gas emissions are projected to
continue increasing through the end of the 21st century. Compared to 1850–1900, global surfacetemperature averaged over 2081–2100 is very likely to be higher by 3.3°C to 5.7°C.
Based on the formulated strategic goals of sustainable development and businessdevelopment plans, we have selected the very low emissions scenario (SSP1-1.9) andthe very high GHG emissions (SSP5-8.5) to conduct near-term, medium-term, andlong-term assessments of physical risks and climate disaster risks to the company'sbusiness development.
①
②
Floods andTyphoons
ExtremeWeather
Drought
Landslides
Sea Level Rise
Loss ofBiodiversityand HabitatDisplacement
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
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Physical Risks
ImpactPeriod
ResponsesPhysical Risk Management
Asia: May encounter risks to food and water security.Europe: May encounter water scarcity across multiple interrelated sectors. Crop production lossesdue to the combination of heat and drought conditions and crop production losses caused byextreme weather.
Continuously optimize production processes to reduce water usage, and reuse treated wastewater in production processes toincrease wastewater recycling rates.Regularly assess water resource risks, avoid conducting project construction or acquisitions in water resource protection areas,establish cooperation with governments and communities, participate in water resource protection and management e?orts, andjointly promote the sustainable use of water resources.Organize regular training for employees on water resource protection to enhance water conservation awareness.Asia: Likely to experience destruction of houses, buildings, and infrastructure, resulting in casualtiesand property damage. Landslides may lead to the interruption of roads, railways, and othertransportation routes, a?ecting normal transportation operations.Europe: May face collapses, landslides, mudslides, debris ?ows, and other hazards a?ecting people'slives and work safety.
Strengthen vegetation protection and restoration e?orts, enhance soil stability, and reduce the occurrence of landslides throughmeasures such as a?orestation, windbreak, and sand ?xation.Establish landslide warning systems using remote sensing technology, meteorological data, and other means to provide earlywarnings of landslide risks.
Asia: Typhoon may bring strong winds, heavy rain, storm surges, and ?ooding, causing serious damageto the buildings, equipment, and inventory of businesses. Flooding can also lead to urbaninfrastructure destruction and impact human well-being and health, particularly in coastal citiesand residential areas.Europe: Coastal and inland ?ooding pose risks to residents, economies, and infrastructure.
Monitor and promptly release typhoon warning information, adjust production schedules reasonably, and stock up on necessaryproduction materials and raw materials in advance to cope with supply chain disruptions, reducing the impact of typhoons onnormal production operations.Reinforce buildings, warehouses, and other facilities, and timely transfer vulnerable inventory items before the arrival of typhoonsor heavy rainfall.Standardize the company's emergency management, enhance internal management systems such as the "Emergency ResponsePlan for Sudden Environmental Incidents," and regularly organize emergency drills for typhoon and ?ood prevention.
Near term,medium term,and long termFloods andTyphoons
Drought
Landslides
Asia: Loss of key species and ecological habitat types may occur, a?ecting ecosystem functions such assoil fertility, water circulation, and climate regulation.Europe: Potential destruction of marine and terrestrial ecosystems.
Avoid business development in natural reserves, ecologically sensitive, and fragile areas, and conduct environmental impactassessments before investing in new projects.Implement ecological restoration measures such as afforestation and land reclamation in areas affected by mining activities tominimize the impact on local ecosystems.Regularly monitor the biodiversity status of operational facilities and surrounding areas, conduct biodiversity assessments, andimplement corresponding measures to address potential ecological risks.Medium termand long termLoss ofBiodiversityand HabitatDisplacement
Asia: Potential extreme temperature increases, changes in rainfall frequency, and droughts, posingrisks to food and water security.Europe: Potential temperature rises and extreme heat, causing stress and fatalities on humans.
Schedule employees' working hours reasonably to avoid outdoor work or heavy physical labor during the hottest periods.Manage the temperature in production workshops and storage facilities, ensuring that goods are stored in suitable environments byinstalling shading facilities, using insulation materials, and setting up ventilation equipment.Optimize o?ce environment design, utilize natural ventilation and shading measures to reduce air conditioning load.ExtremeWeather
Near term,medium term,and long term
Near term,medium term,and long term
Asia: Reduced coastal fisheries resources, decreased precipitation, and increased temperatures insome areas may result from rising sea levels. Ocean warming, acidi?cation, and rising sea levelsmay lead to more frequent and widespread coral bleaching and subsequent coral mortality.Europe: Risks to coastal economies and infrastructure.
Carefully evaluate new investments or construction in low-lying areas or regions vulnerable to sea-level rise, relocate or rebuildassets prone to impact, or implement appropriate protection measures to mitigate the e?ects of sea-level rise.Establish a diversi?ed supply chain to reduce the supply chain risks associated with sea-level rise.Sea Level Rise
Medium termand long term
Medium termand long term
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
Transition Risks
③ Net Zero Emissions by 2050 (NZE) Scenario: Global energy-related carbon emissions reach net zero by 2050, limiting the rise in global temperatures to
1.5 °C.
④ The Stated Policies Scenario (STEPS): Considers only specific policies already enacted or announced by governments, annual carbon emissions from
energy and industrial processes will increase from 34 gigatonnes in 2020 to 36 gigatonnes in 2030, remaining at roughly the same level until 2050.If emissions continue along this trajectory and non-energy-related greenhouse gas emissions follow a similar trend, the temperature will rise byapproximately 2.7°C by 2100 (with a 50% probability). By 2050, the share of renewable energy in global electricity generation will be close to 55%.Between 2020 and 2050, global coal consumption is projected to decrease by 15%, while oil consumption is expected to increase by 15%, and naturalgas consumption is anticipated to increase by nearly 50%.
The International Energy Agency (IEA) conducted in-depthanalyses of various aspects of the global energy system tounderstand how structural changes in the economy and energyusage are altering the ways the world meets growing energydemands, and compiled and published the World Energy Outlook(WEO). In the transition to a low-carbon economy, the scenariosconstructed by the IEA are widely applied and extensively
discussed. We selected the Net Zero Emissions (NZE) and StatedPolicies Scenario (STEPS) under the IEA’s ?ve scenario modelsto conduct short-term, medium-term, and long-term risk andopportunity assessments of our business development andformulated response strategies to enhance strategic resilienceand achieve sustainable development.
③
④
Iterationof industrytechnology
Maintain an integrated industrial chain layout, ?exibly adjust product combinations
based on changes in technology, capacity, market dynamics, and customerpreferences along the industrial chain, and focus more on high-value-added businessareas.Build upon the adjustment of past product structures, further clarify the division of
product and market responsibilities among each production base. Promote productupgrades, transformation, and structural adjustments at each base.
Pressure
from GHG
emission-
relatedpolicies andregulations
Actively react to the national carbon peaking and net zero emissions policy, formulate
corporate net zero goal, and commit to achieving net zero emissions for Scope 1 andScope 2 GHG emissions in accordance with the PAS2060 standard.Achieve net zero goal through a series of emission reduction measures, includingenergy-saving and emission reduction of high-energy-consuming equipment,promoting electri?cation transformation, increasing the proportion of clean energyusage, and o?setting emissions through carbon trading.
Safety ofraw material
supply
and price?uctuations
Advance the construction and development of mines, and security of rare earth raw
material supply.Strengthen the control system for raw material supply chain, promote supply chain
risk management, and improve risk response measures.To enhance metal resource recycling capabilities, further expand domestic and
international supply channels, improve resource recovery technology, expand
recycling ?elds and channels, and build an industrial ecological chain.
Shifts inmarketpreferences
Delve deeply into the three core areas of tungsten and molybdenum, new energy
materials, and rare earths, and emphasize on industrial innovation and development.
Oriented by market demand, and with sufficient research and development
investment and a comprehensive R&D framework as guarantees to strengthen key
core technology breakthroughs to meet the market demand for higher performance,
safety, and more energy-e?cient products.Increase energy utilization e?ciency and reduce product carbon emissions through
measures such as refined energy management, the introduction of non-emission
energy, and the application of energy-saving and emission reduction technologies.
2023年公司GHG排放量
Near term,medium term,and long term
Near term,medium term,and long term
Near term,medium term,and long term
Near term,medium term,and long term
Physical Risks
Impact Period
Responses
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
We conduct organizational carbon inventories in accordance withthe ISO 14064-1:2018 standard, using operational control-basedapproaches to inventory activities and facilities of our companyand our operated production enterprises both domestically andinternationally. The operational boundary includes direct GHGemissions (Scope 1), indirect GHG emissions (Scope 2), and partialindirect GHG emissions (Scope 3).According to ISO 14064-1:2018, there are three conventionalmethods for carbon inventories, which are categorized ascalculation, measurement, and a combination of measurementand calculation. Since we currently do not have directmeasurement instruments, we primarily utilize the calculationmethod. The calculation of GHG emissions from various sourcesmainly involves multiplying activity data by emission factors,
including emission coe?cients and mass balances. Emissions ofvarious greenhouse gases are converted into consistent weightand volume units based on their sources. Different emissionsources follow calculation methods outlined in the "2006 IPCCGuidelines for National Greenhouse Gas Inventories," as well asthe "General rules for calculation of the comprehensive energyconsumption (GB/T2589-2020)" and the 2022 average carbonemission factors for China's regional power grids released by theMinistry of Ecology and Environment (with foreign enterprisesusing local grid factors). After selecting emission factors, thecalculated values are then converted to CO
e (carbon dioxideequivalent) based on the global warming potential (GWP) ofvarious greenhouse gases, with units expressed in tons per year.GWP used in the calculation process are sourced from the IPCC's2021 AR6 report.
GHG Emissions Management
Operational Boundary
GHG Types
The operational boundary for our 2023 GHG inventory includesthe Scope 1: Direct emissions; Scope 2: Indirect emissions frompurchased energy (location-based), indirect emissions frompurchased energy (market-based); Scope 3: Indirect emissionsfrom transportation.During the reporting period, our subsidiary XWXN independentlyconducted GHG inventories. The operational boundary for its2023 GHG inventory includes Scope 1: Direct emissions; Scope2: Indirect emissions from purchased energy; Scope 3: Indirectemissions from transportation, indirect emissions from the use ofproducts and services.
The GHG emissions accounting scope includes seven types of greenhouse gases: carbon dioxide (CO
), methane (CH
), nitrous oxide (N
O),hydro?uorocarbons (HFCs), per?uorocarbons (PFCs), sulfur hexa?uoride (SF
), and nitrogen tri?uoride (NF
).
GHG Sources(other indirect greenhousegas emissions - Scope 3)
GHG TypesReasons for Exclusion
Exclusion Items
Other indirect greenhouse gas emissions (Scope 3) excluding emissions from transportation refer to emissions generated from activitiesnot directly owned or controlled by the company. These emissions originate from sources owned or controlled by other companies.Due to the inability to control the activities and greenhouse gas emissions associated with these sources, they are not included in theaccounting. Below are the identi?ed sources of Scope 3 emissions and the reasons for their exclusion.
⑤
Indirect GHG emissions fromorganization's products
CO
/CH
/N
CO
/CH
/N
CO
/CH
/N
Indirect GHG emissions associated withthe use of organization's products
Key data is incomplete, making itdi?cult to quantify the generated CO
eKey data is incomplete, making itdi?cult to quantify the generated CO
eKey data is incomplete, making itdi?cult to quantify the generated CO
eIndirect GHG emissions from othersources
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixAddressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
GHG EmissionsDuring the reporting period, the total GHG emissions from Scope 1 and Scope 2 sources amounted to 674,989.82 tCO
e. The main sourceof GHG emissions was the indirect emissions from Scope 2 purchased energy sources, accounting for 82.36% of the total emissions. Dueto increased production capacity, our consumption of natural gas, lique?ed petroleum gas, diesel, and coal all increased compared to2022, resulting in a 26,676.4 tCO
e increase in Scope 1 emissions compared to 2022. Additionally, there was an increase in emissions fromelectricity consumption, leading to 89,349.46 tCO
e increase in Scope 2 emissions compared to 2022. Overall, the total GHG emissionsincreased by 116,025.86 tCO
e compared to 2022, primarily due to the increase of our production output and the inclusion of Jinglu NewEnergy, Guangdong Youlu Tools, and Golden Egret Hard Alloy (Thailand) into the scope of greenhouse gas inventory.2023 GHG Emissions
Scope1 GHG EmissionsScope2 GHG Emissions
800,000.00700,000.00600,000.00500,000.00400,000.00300,000.00
,
000.00
100,000.00
202120222023
506,048.41
569,746.33
558,963.96
63,697.9292,374.09
466,589.87
555,939.33
119,050.492023119,050.49555,939.33 674,989.821,426,485.461,713.26202292,374.09466,589.87558,963.96/1,159.13202163,697.92506,048.41569,746.33/1,788.72
Year
Scope 1 GHGEmissions（tCO
e/year）
Scope 2 GHGEmissions（tCO
e/year）
Scope1& 2 GHGEmissions（tCO
e/year）
Scope3 GHG
Emissions（tCO
e/year）
Intensity of emissionsper hundred-millionRMB of output（tCO
e/hundred-million RMB）
82.36%
17.64%
Scope1（tCO
e/year）Scope2（tCO
e/year） Emission Intensity
（tCO
e/hundred-million RMB）Note: Scope 2 above represents indirect greenhouse gas emissions from purchased energy (market-based).
GHG Emissions
GHG Emissions
2,000.001,600.001,400.001,200.001,000.00
800.00
600.00
400.00
200.00
1,788.721,713.26674,989.821,159.13
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
We have established annual energy targets and indicators, linking them to the performance of the company's general manager andrelevant management personnel. Through the implementation of responsibility management, we decompose the target indicators tovarious departments and production processes, monitor progress on a monthly basis, analyze the reasons for any unmet targets, andpropose management plans and improvement measures. We continuously follow up until the targets are achieved. Our main production-oriented enterprises have formulated the "Energy Management System," continuously promoting technological innovation, optimizingequipment and processes, and striving to achieve energy conservation and transformation goals. During the reporting period, wecontinued to improve our energy management system, with 15 a?liated enterprises obtaining ISO50001 energy management systemcerti?cation, covering 42% of our production enterprises.2023 Energy Structure
2023 Energy Consumption Structure Energy Consumption
Energy Type2023年2022年
2023ComprehensiveEnergyconsumption(metric tons of coalequivalent)
2022ComprehensiveEnergyconsumption(metric tons of coalequivalent)
2023Proportionof energyconsumptionElectricity（kWh）1,631,612,744.271,306,800,564.19200,525.21160,605.7974.88Steam（t）282,283.46327,082.9029,262.6333,906.7210.93Natural Gas（m3）21,329,644.7313,788,147.9628,368.4318,338.2410.59Diesel（L）3,764,841.673,611,015.084,717.754,524.981.77Coal（t）6,453.555,752.664,609.774,109.131.72Gasoline（L）254,199.65256,157.90273.04275.140.10Liquefied Petroleum
Gas（kg）
17,999.5416,780.0030.8628.770.01
74.88%
10.93%
10.59%
1.77%
1.72%
0.10%
0.01%
1.37%
0.50%
4.96%
Proportion of Types of Electricity in 2023
50.35%42.82%
火电核电光伏电风电水电
2023 Green electricityratio 49.65%
49.65%
ElectricitySteamNatural GasCoalGasolineDieselLiquefied Petroleum Gas（kg）
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixAddressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
Action to Reduce GHG Emissions
Given the complexities of gear machining such as intricate motion trajectories, tool overlap design, and high precision toolassembly requirements, the cutting tools have long been dominated by imported products from Europe and the UnitedStates, which come with high prices. Through in-depth research on the characteristics and requirements of gear machining,we have developed high-performance, high-e?ciency gear milling tools. Our developed gear milling tools were subjected topromotional tests in the processing of 20M wind turbine gear rings at the user end. By combining actual working conditionsand the design features of the tools, reasonable cutting parameters were set. As a result, the processing e?ciency increasedby 50% compared to imported brands, while maintaining similar processing lifespans, earning high recognition from users.The successful development of our gear milling tools signi?cantly shortens the production time and reduces the tooling costsfor downstream manufacturing companies, helping users achieve energy savings and e?ciency improvements. This ensuresthe high-quality and high-e?ciency processing of core components in the wind power industry, safeguarding the supplychain of the wind power industry and e?ectively supporting the implementation of national policies on "carbon peaking" and"net zero."
新能源领域切削工具
We independently develop and produce the ALgroove + GN* series aluminum alloy turning tools,D966 series aluminum alloy special processing drills,UA100 series aluminum alloy universal processingend mills, and PCD aluminum alloy precisionprocessing milling cutters. In the user-end newenergy motor shaft slot milling process, the servicelife of the slot milling cutter has been increasedby 133%, achieving cost reduction and efficiencyimprovement. The successful development ofaluminum alloy machining tools provides assurancefor the e?cient and high-quality processing of corecomponents of new energy vehicles, contributing tothe development of the new energy industry.
We deeply understand the challenges and opportunities brought about by energy transition, actively explore innovations in greenmanufacturing and low-carbon sectors, and strive to create new models of green production with signi?cant promotion potential. Weare committed to advancing energy conservation and emission reduction by promoting innovation in green products and technologies,implementing energy-saving measures for high-energy-consuming equipment, promoting electrification upgrades, increasing theproportion of clean energy usage, o?setting emissions through carbon trading. Our focus is on advancing energy e?ciency, reducingcarbon emissions, and ensuring the achievement of carbon peaking and net zero emissions goals, contributing to global climate changesolutions. Green Product and R&D and Innovation in TechnologyThrough R&D and innovation investment, we proactively develop products in the ?eld of new energy, including cutting tools, photovoltaictungsten wires, rare earth permanent magnet materials, and new energy materials, which meet the development needs of "peak carbonemissions and reach net zero emissions", thereby contributing to achieve the national carbon peaking and net zero emissions goals.
Highlight |
Aluminum Alloy Machining Tools
Highlight |
Gear Milling Tools
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixAddressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
Driven by "carbon peaking" and "net zero" policies, the global photovoltaic installed capacity is rapidly increasing, and diamond wirecutting has become the mainstream cutting method for solar cell silicon wafers. Traditional carbon steel wires (diamond wires) haveshown insigni?cant overall strength improvement with the re?nement of speci?cations, while tungsten wire can serve as an upgradedalternative product to carbon steel wire due to its high strength and toughness. As the world's largest tungsten wire production enterprise,we have independently developed and produced photovoltaic high-strength tungsten wire products with advanced technologicalexpertise. These products feature ?ne wire diameter, wear resistance, and high strength.
√Tungsten wire with a ?ne diameter results in smaller cutting saw seams and less silicon material loss during slicing, allowing for more
ingots per unit volume of silicon material and thus saving raw materials.
√High-strength tungsten wire enables fast cutting speeds and low breakage rates,
greatly improving the e?ciency of silicon wafer production.The used Tungsten wire can be recycled, promoting the effective utilization ofresources and facilitating the sustainable development of the industry chain. Duringthe reporting period, the photovoltaic high-strength tungsten wire achieved aproduction scale of over 7.60 million kilometers, contributing to the improvement ofsilicon wafer processing e?ciency and the quality and e?ciency enhancement of thephotovoltaic industry.
Photovoltaic High-Strength Tungsten Wire
In the era of net zero, benefiting from the comprehensiverelease of demand in fields such as new energy vehicles, windpower, and variable frequency air conditioning, the demandfor rare earth permanent magnets (neodymium iron boron) hassigni?cantly increased, boosting the usage of rare earths. Amongthe downstream demand structure of rare earths, the usage ofpermanent magnet materials is overwhelmingly leading. Sinteredneodymium iron boron permanent magnet materials, with theirhigh magnetic performance, excellent mechanical properties,stable thermal performance, and chemical properties, havebeen widely used in various ?elds such as new energy vehicles,wind power generation, servo motors, and variable frequency airconditioning. As a leading enterprise that has already formed acomplete rare earth industry chain for production and processing,we vigorously develop and produce high-performance rare earthpermanent magnet materials, which are used in core componentsof new energy vehicle drive motors, permanent magnet directdrive and semi-direct drive wind turbine generators in the windpower sector, and core materials for compressors in the variablefrequency air conditioning sector.In the production process, we primarily use materials such asneodymium metal, praseodymium-neodymium metal, boroniron, and pure iron, and employ advanced domestic andinternational production equipment and technology to ensurethe outstanding quality of our products. The performance of thesintered neodymium-iron-boron permanent magnet materials weproduce meets the requirements of the "Technical Speci?cationfor Green Design Product Evaluation - Sintered neodymiumiron boron permanent magnets": the industrial water reuse ratereaches as high as 99.4%, far exceeding the standard requirementof 95%; the comprehensive energy consumption per unit product(neodymium-iron-boron rapid solidification thin strip alloy)is 0.112 tons of coal equivalent/ton, lower than the specifiedstandard value of 0.12 tons of coal equivalent/ton; the actual
emission concentration of particulate matter is 27.9 mg/m?, lowerthan the speci?ed standard value of 100 mg/m?; and the disposalrates for hazardous waste and neodymium-iron-boron waste bothreach 100%. Additionally, we have conducted in-depth analysesof the potential environmental impacts of the product at di?erentstages of its lifecycle and proposed improvement measures,including reducing the use of non-renewable rare earth resourcesin raw materials, developing magnetic materials with high rareearth abundance, increasing the use of pipeline recycling devicesto reduce particulate emissions, and reducing comprehensiveenergy consumption through process improvements. Theseefforts further reduce production costs, mitigate negativeimpacts on the environment and climate change, and achieve aharmonious symbiosis of economic and environmental bene?ts.
Rare Earth Permanent Magnet Materials
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
During the reporting period, our third-generation hydrogen storage alloy materials for vehicle use werestably supplied to internationally renowned automotive companies for hybrid power new models.
The solid-liquid mixing technology of lithium iron phosphate has been validated through customer projects and iscurrently undergoing stable batch implementation. The liquid-phase method is used for the process developmentof lithium iron manganese phosphate. By optimizing the elemental composition and enhancing doping and coatingtechnologies, the material's capacity and kinetic performance have been significantly improved, expanding theapplication areas of battery cells.
Green, safe, and recyclable new energy sources are becoming the core driving force of the carbon-neutral era. We promote energyrevolution through material innovation, providing advanced material solutions to achieve net zero. Since 2004, when we begandeveloping cathode materials, we have continuously invested in their research and development. We have successfully overcome severalkey core technologies in the ?eld of 3C lithium batteries and power lithium battery cathode materials. We have introduced high-voltagelithium cobaltate, high-rate Ni3 series, high-voltage monocrystalline Ni5 series, high-voltage monocrystalline Ni6 series, Ni8 series,and Ni9 series NCM ternary materials and other high-end products. Collaborating with multiple domestic battery customers, we havedeveloped various generations of new lithium batteries, facilitating the development in the ?elds of 3C electronics, vehicle power, andenergy storage, which has ushered in a new era of development for China's new energy materials.
New Energy Materials
Our newly developed Ni6 series 4.45V high-voltage ternary material has further reduced nickel content while ensuringperformance, resulting in an improved cost-e?ectiveness. The product has been ?nalized and is currently undergoing trialproduction. A new Ni6 series 4.4V high-voltage ternary material developed for hybrid and extended-range applicationscombines high energy density with high power performance and has been certified by customers. Batch supply of Ni3series ultra-high-power ternary material has commenced to overseas customers. Samples of Ni8 series high-safety ternarymaterial exhibit excellent performance, meeting customer requirements, and are currently undergoing production lineampli?cation veri?cation. Ni9 series ultra-high-nickel ternary material has successfully obtained certi?cation from overseasautomotive manufacturers. The Ni6 series high-voltage ternary product developed for the drone ?eld has completed massproduction transfer and is continuously supplied in batches. Our next-generation product under development utilizes anew external surface re?nement technology, signi?cantly improving material interface stability. Key parameters such asgravimetric capacity, high-temperature cycling performance, and storage performance of the product have been improved.It has already passed customer trials and is expected to be applied to low-altitude ?ight battery terminals in 2024.
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Phosphate Materials
Hydrogen Energy Materials
Ternary Materials
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixAddressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
Implement Energy-saving and Emission ReductionMeasures for High-energy-consuming EquipmentIn the production process, we gradually phase out high-energy-consuming equipment, improveenergy efficiency, reduce the consumption of electricity and other fossil fuels, and minimize emissionsresulting from fossil fuel consumption.In the mining phase:
We rely on technological innovation to build a digitalized,technologically advanced, and automated mining managementsystem, aiming to promote the construction of smart mines.Through our independently developed comprehensive energyconsumption accounting system, we precisely manage energy
consumption to ensure effective monitoring and optimizationof energy use in all processes. Meanwhile, we actively introduceadvanced technology and equipment to continuously improvethe comprehensive utilization of energy resources, achieving thegoal of energy conservation and emission reduction.
At the green mine in Ninghua Xingluokeng, we have formulated the "Carbon Emission Reduction and Carbon Asset Management
Regulations" and the "Energy Metering Management System," established an energy metering management working group, and setenergy metering work targets to ensure the reduction of energy consumption. We are gradually phasing out outdated motors, replacingthem with permanent magnet motors to continuously improve motor e?ciency. By constructing high-pressure roller mills, we crush moreand grind less ore to reduce production energy consumption.At the green mines of Duchang, we have established a leadership group for clean production audits and an energy management team.We have also entrusted a third-party to regularly track and promote clean production audits. Additionally, we have commissioned thepower company to participate in direct electricity trading on behalf of us to further optimize the allocation of electric power resources.Adhering to the development concept of energy conservation, emission reduction, and resource recycling, we have incorporated thesmart mine construction plan into the annual production and operation plan of the enterprise. We continuously optimize informationsystems such as the automated mining system, automatic acid addition system, intelligent weighing system, automated monitoringand alarm system for explosives depot, automated system for medium and ?ne crushing cone crushers, ?otation column liquid levelcontrol system, tungsten-molybdenum automatic packaging machine, resource reserve management system, and online environmentalmonitoring system for the mining area. We actively promote strategies such as mechanization to reduce labor and automation tostrengthen the mechanization of mining and the automation of beneficiation processes. We continuously improve the intelligentmanagement level of mine operation, striving to achieve the goal of sustainable development with low consumption, low emissions, andhigh e?ciency.
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
We have established an energy management system and continuously promote energy conservation and emissionreduction through technological innovation, process technology transformation, equipment upgrades, and capacitybuilding in energy management.
在钨冶炼生产基地，我们通过工艺技术及设备改进，有效减少钨冶炼环节中的温室气体排放：
√ We have innovatively retro?tted the evaporation pots in the factory to be energy-e?cient. By preheating the liquid
material using evaporated condensate water and operating the evaporation pots under high vacuum and low steampressure conditions, we have achieved a steam saving of 1.2 tons per product ton. Calculated for an annual productionof 3,200 tons of APT, this retro?t can save approximately 3,840 tons of steam per year, resulting in a reduction of 2,545tons of CO
e emissions.
At the rare earth smelting, separation, and material production base in Changting, we adhere to the carbon reduction policy of
"endogenous power, self-reliance; energy conservation, consumption reduction, carbon reduction, and efficiency enhancement;seizing opportunities, leading the industry." We have established a Carbon Emission Management Committee and strictlyimplement internal regulations such as the "Energy Operation Management Regulations" and the "Carbon Emission ManagementManual" to standardize energy use and carbon emission management. By continuously optimizing product structures andproduction processes, replacing traditional gas boilers with more environmentally friendly energy alternatives, we aim to reducecarbon emissions during the production process.
Energy Targets and Achievements of Golden Dragon Rare-earth in 2023
Calculated for an annualproduction of
1,440tons of APT from the #1 and #2lanthanum oxygen furnacesretro?t can save approximately197,280kWh of electricity/yearreduced
tons of CO
e emissions
No.IndicatorsUnit2023 Target2023 Actual
Completion
Status
Electricity Consumption perUnit in the Extraction Process
kWh/t1,687.0821,598.047Completed
Water Consumption per Unit inthe Extraction Process
m?/t45.95442.967Completed
Electricity Consumption perUnit in Wastewater Treatment
kWh/t292.749178.963Completed
Natural Gas Consumption per
Unit for the Hot Water Boiler
m?/t46.68040.333Completed
Argon Consumption per Unit inthe Smelting Process
m?/t154.620153.970Completed
Electricity Consumption perUnit in the Reduction Process
kWh/t13,960.74213,897.571Completed
√ We optimized the process of the ammonia dissolution pots,
reducing the distance of the steam pipeline for tungsten-molybdenum separation and lowering the steam pipeline's processlosses. This optimization saves 0.4328 tons of steam per productton. Calculated for an annual production of 8,400 tons of APT, thisoptimization can save approximately 3,595 tons of steam per year,resulting in a reduction of 2,850 tons of CO
e emissions.
√ We conducted energy-saving retrofits on the insulation systems
of the #1 and #2 lanthanum oxygen furnaces. By replacing oldmaterials with new furnace bricks and insulation cotton, weimproved the overall insulation e?ect of the furnace body, leadingto a decrease in electricity consumption per product ton. Thisretro?t achieved a reduction of 137 kWh per product ton. Calculatedfor an annual production of 1,440 tons of APT from the #1 and #2lanthanum oxygen furnaces, this retrofit can save approximately197,280 kWh of electricity per year, resulting in a reduction of 98tons of CO
e emissions.
In the Advanced Materials Production Stage:
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
| 2023 Sustainability Report
During the reporting period, we actively promoted various energy-saving renovation projectsat the rare earth smelting, separation, and material production base in Changting. Each year,we can save 837,729 kWh of electricity consumption, reducing greenhouse gas emissions byapproximately 477.76 tCO
e.
√ Completed energy-saving renovation of 37 single-chamber sintering furnace mechanical
pumps for magnetic materials, saving approximately 207,835 kWh of electricityconsumption annually, with a direct electricity cost savings of 135.10 thousand RMB anda reduction in greenhouse gas emissions of approximately 118.53 tCO
e.
√ Optimized the carbonate calcination and positive pressure processes, eliminated
sintering diffusion pumps, improved the temperature uniformity of the M furnace,shortened the overall process cycle, increased current efficiency by 3%, increasedproduction capacity by 10%, and achieved a reduction in unit metal electricityconsumption by 300 kWh per ton.
√ Renovated a 10kV high-voltage line extending over tens of kilometers, solving issues
such as overloading, unstable power supply, frequent tripping, and severe pressuredrop. After the renovation, the single-line loss decreased, with an annual benefit of up to
1.1 million RMB, significantly improving power supply stability and efficiency.
√ Implemented valve control measures by adjusting the opening of equipment valves
reasonably and setting corresponding standard water consumption for equipment.The water consumption of circulating water decreased by 151.7 m?/h, saving electricityconsumption of 280,203 kWh annually, with pump group electricity cost savings of182,100 RMB per year and a reduction in greenhouse gas emissions of approximately
159.80 tCO
e.
√ Renovated the heating system of the furnace chamber for five single-chamber furnaces
for magnetic materials and improved its insulation performance, directly reducingheating electricity consumption by 13.6% to 20%.
√ Upgraded the 12 vacuum pump motors of the metal reduction furnace with permanent
magnet frequency conversion technology, saving 96,096 kWh of electricity consumptionannually and reducing greenhouse gas emissions by approximately 54.80 tCO
e.
At the battery material production base, we encourage each production base to optimize production processes and carry outenergy-saving renovations of production equipment in accordance with the actual business operations. Each base strives to catchup and surpass others, actively promoting energy-saving and consumption-reduction efforts. We require each production workshopto monitor project progress monthly, achieve refined energy management, and ensure effective achievement of annual energy-saving goals.
√ We extensively promote the use of energy-saving lighting fixtures in office areas, workshops, public areas, and other areas.
√ We conduct energy consumption investigations on workshop appliances, compile a list of high-energy-consuming appliances,
and selectively replace them to reduce energy consumption.
√ We actively promote energy-saving renovation projects such as steam recovery from ammonia towers and waste heat recovery
from sintering furnaces to further improve energy utilization efficiency and achieve green and sustainable development.At the battery material production base in Xiamen, we have established clear energy-saving targets. Using a baseline of 10,708kWh per ton of product in 2020, we have set the following short-term goal: to reduce electricity consumption to 10,200 kWh perton of product by 2023, and the long-term goal: to reduce electricity consumption to 10,000 kWh per ton of product by 2025.Additionally, we have implemented the following energy-saving measures, resulting in a total electricity saving of 1,429,504 kWhand a reduction in greenhouse gas emissions of approximately 814.82 tCO
e.Introduced stone grinding equipment to replace the original mechanical grinding equipment, converted the line speed ofmechanical grinding disc into the rotation speed of stone grinding disc, and determined the optimal process through DOEexperiments to meet production requirements, resulting in an annual electricity saving of 838,200 kWh.Replaced the air blast drying box with a continuous oven, resulting in an annual electricity saving of 544,000 kWh.
√ Changed the aging tank in the precursor workshop to stirring with permanent magnet motors, resulting in an annual electricity
saving of 47,304 kWh.
√ Required the scheduling department to arrange production schedules reasonably, concentrated production, and scheduled
processes with lower output for night production to stagger electricity usage.
save
837,729kWhof electricity consumption peryearreduce GHG emissions byapproximately
477.76
tCO
e
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At the battery material production base in Ningde, we are actively promoting energy-saving technological transformation measures. In total, we can save 1,448.5 tons ofstandard coal and reduce greenhouse gas emissions by approximately 3,824.04 tCO
e.
√ In the workshop, we use LED lighting and intelligent emergency lighting, equipped
with automatic switches and other smart control systems, saving energy andreducing maintenance costs. This results in an annual saving of 84.87 tons ofstandard coal.
√ We have conducted energy-saving transformations on the compressed air system,
developing a compressed air linkage control system to reduce manual judgmentof equipment start and stop. This system also increases the loading rate ofscrew compressors and reduces the venting rate of small compressors. After thetransformation, gas quality meets usage requirements, and gas consumption perunit decreases from 0.136 kWh/m? to 0.108 kWh/m?, a 20% reduction, saving 738 tonsof standard coal annually.
√ The workshop's air supply fans have been redesigned, with an automatic control
logic model developed for their operation. The fans are linked with associated rollerfurnaces, and the number of fans opened corresponds to the temperature measuredby associated temperature and humidity sensors. The exhaust fan quantity isadjusted based on on-site pressure di?erence. After the transformation, 194.34 tonsof standard coal are saved annually.
√ We utilize waste heat recovery from the air compressor to heat hot water, reducing
the energy consumption of the dehumidification system. This is expected to save
111.44 tons of standard coal per year.
√ We improve the primary and secondary powder production processes, reducing
the compressed air usage in the powder production process, saving 310.07 tons ofstandard coal annually.
√ While ensuring product quality, we reasonably reduce the mixing time of the process,
lowering energy consumption by 8%, and saving 9.78 tons of standard coal annually.
We strictly adhere to energy-related laws and regulations and have formulated systems such as the "Energy Management System,""Energy Management Manual," and "Energy Audit Management Regulations" in accordance with the requirements of ISO50001 EnergyManagement System to standardize the energy management work. Leveraging lean production as a cornerstone, we consolidatemanufacturing fundamentals and enhance the level of manufacturing for scaled products through automation and digitization,continuously improving production e?ciency and energy usage e?ciency, and advancing the construction of the International AdvancedManufacturing Management System (IAM). Currently, the main tungsten production bases, including XTC Haicang Branch, Xiamen Jialu,Jiujiang Golden Egret, Xiamen Golden Egret, Xiamen Honglu and Luoyang Golden Egret have all passed the ISO50001 Energy ManagementSystem certi?cation. During the reporting period, we conducted a new round of clean production audit projects and invited third-partycompanies to train all members of the audit team, continuously improving the level of clean production.
In the deep processing stage:
reduce GHG emissions byapproximately
3,824.04tCO
e
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In the Cutting Tools Division, we implement a three-tier management mechanism of "company-department-team," ensuring the conceptof energy conservation and emission reduction is implemented from top to bottom. This ensures that energy management is integratedinto various aspects of enterprise production and operation. Through the production energy information statistical reporting system,we conduct monthly analysis of energy consumption to provide reliable data support for achieving energy conservation and emissionreduction goals.
Development of powder pressing and sintering technology forcarbides
262.48
Reduction in unit energy consumption of cobalt powder in the four-pipe furnace
17.10
Conversion of the oil-heating spray tower into an electric heatingtower
64.00
Increase of the loading capacity of the road milling teeth furnaceand the change of 8-stack sintering to 9-stack sintering for the roadmilling teeth.
41.63
Use of natural daylight in the sintering hall tour passage in daytimeto reduce lighting fixtures use, and utilization of the large space toreduce the use of exhaust fans
77.98
Optimizing workshop layout to reduce the electricity consumption ofcentralized oil supply equipment.
244.32
Phasing-out inefficient motors and vigorously promoting the use ofhigh-efficiency permanent magnet synchronous motor products.
76.17
Total783.68
During the reporting period, our Cutting Tools Division carried out the following energy-saving andemission reduction projects for high-energy-consuming equipment:
Projects
2023 Energy-saving and emission reduction projects for high-energy-consuming equipment
Annual EmissionReduction（tCO
e）Xiamen Golden Egret Energy Management Structure
Companyenergy management team
DepartmentalEnergy Management Team
Team LeaderManufacturingDepartment Head
MembersEquipmentDepartmentEnergyManagementSpecialist
Team MemberProduction andManagementDepartment Head
MembersFinanceDepartmentCost Accountant
MembersManufacturingDepartmentEnergyManagementTeam Leader
Team MemberProductionStatistician
MembersOperationsManagementDepartmentOperationsManagement Specialist
Manufacturing Department Energy
Management Team Leader
Deputy Team LeaderEnergy Management Officer
Team leader
Vice General Manager
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Promotion on Electrification Transformation
We are gradually advancing towards the electrification transformation of ourproduction equipment, replacing coal-fired boilers and natural gas boilers withelectric boilers, and replacing gasoline and diesel vehicles with electric ones, whileusing green electricity. This can signi?cantly reduce the GHG emissions associatedwith fossil fuels. Additionally, we are utilizing biofuels to replace fossil fuels, suchas using biomass pellets and biodiesel as boiler fuels.At our Ninghua Xingluokeng site, we are gradually phasing out diesel vehicles andswitching to new energy vehicles for transporting mining waste rock, signi?cantlyreducing energy consumption during the transportation of ore. During thereporting period, at Ninghua Xingluokeng mine, we replaced four diesel vehicleswith new energy vehicles, resulting in 1,211.66 tons of annual diesel usage and areduction of 271.76 tons compared to 2021, with a total GHG emissions reductionof 272.58 tCO
e.
At the rare earth smelting, separation, and materialproduction base in Changting, we actively promote theuse of electric vehicles, encouraging employees andpartners to adopt more environmentally friendly meansof transportation, thereby reducing carbon emissionsgenerated during the use of gasoline and diesel.
类别202120222023
The volume savedcompared to 2021
Number of diesel vehicles282521/Total fuel consumption（t）1,483.421,276.481,211.66271.76Number of new energy vehicles71115/Total electricity consumption（kWh）188,120974,3601,373,800-1,185,680GHG emissions - fuel consumption（tCO
e）5,181.214,459.284,232.84948.37GHG emissions - electricity consumption
（tCO
e）
107.28555.68783.07-675.79Total GHG emission reduction（tCO
e）272.58
The emission reduction achieved by replacing diesel vehicles with new energy vehicles in Ninghua Xingluokeng in 2023In the Tungsten Molybdenum Wire Division, we e?ectively reduce energy consumption in the processing of tungsten-molybdenum wirethrough process technology and equipment improvements:
Speeding up production in the drawing process to reduce idle time during shift changes, implementing equipment TPM to reduce timewaste, and trialing and promoting the consolidation of small turns and seven-mode positions to increase equipment efficiency andindividual productivity per unit time.Implementing sequential start-up of drawing equipment, reforming furnace insulation structures to reduce surface heat dissipation,ensuring that the furnace shell surface temperature is below 50°C, resulting in an annual energy savings of approximately 470 tons ofstandard coal.Optimizing the medium-frequency furnace process, reducing the cooling hydrogen flow rate, and increasing the loading capacity,resulting in an annual energy savings of approximately 252 tons of standard coal.Upgrading the insulation of the small rolling mill furnace, adding an additional furnace, extending the life of accessories, reducingequipment failures, resulting in an annual energy savings of approximately 64 tons of standard coal.Adding an ultrasonic cleaning machine, regularly cleaning the drawing machine ?re trough, increasing the drawing speed, and reducingnatural gas consumption, resulting in an annual energy savings of approximately 837 tons of standard coal.
1,211.66
tons in annual diesel usage
271.76
tons
comparedto 2021，wereduce by
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Increase the Proportion of Clean Energy Usage
We actively invest in or purchase low-carbon clean energy such as photovoltaic power, wind power, and nuclear power. Through thenational green electricity trading platform, we continuously increase the proportion of green electricity usage.At our rare earth smelting, separation, and material production base in Changting, we adhere to the development concept of clean
energy and have introduced nuclear power as the primary source of electricity for production. In 2023, we purchased approximately200 million kW·h electricity from the Fujian Provincial Power Trading Platform for our rare earth smelting, separation, and materialproduction base in Changting. Additionally, we actively promoted the construction of photovoltaic power generation projects. In2023, we completed the grid connection of a 12,000-square-meter parking lot photovoltaic system in the Gongmao New Town factoryarea, signi?cantly reducing greenhouse gas emissions generated by electricity consumption. As of now, the total area of photovoltaicpanels at our rare earth smelting, separation, and material production base in Changting has expanded to 41,977 square meters, witha decentralized photovoltaic installed capacity of 3.584 MW. During the reporting period, our photovoltaic power generation reached3,632,777.97 kWh, resulting in a reduction of approximately 2,071.78 tons of CO2 emissions. Additionally, the proportion of non-emissionelectricity has increased to over 90%.
2023 Electricity composition ratio at the Changting RareEarth Smelting and Separation Material Production Base
火电核电风电光伏电
82.29%
12.74%
3.04%
1.93%
photovoltaic power generation reached3,632,777.97
kWh
photovoltaic panels area expanded to41,977
square meters
reduced approximately2,071.78 tons of CO
emissions
Addressing Climate Change Pollution Control and Ecosystem Protection Resource Utilization and Circular Economy
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At our battery material production base, we
actively introduced the use of clean energy sourcessuch as solar, wind, and nuclear power. Through theconstruction of rooftop photovoltaic systems, directpurchase of green electricity, and other measures,we promoted the transformation of energy structureand reduced greenhouse gas emissions. During thereporting period, the proportion of clean energysources including solar, wind, and nuclear powerused at our battery material production basereached 88.39%.
In the Cutting Tools Business Unit, we are constructingdistributed solar photovoltaic power generation,actively promoting the use of renewable energy,reducing greenhouse gas emissions, and alleviatingglobal climate change issues. At Jiujian Golden Egret,we have newly built a distributed photovoltaic powergeneration project with a roof area of approximately50,000 square meters, with a designed capacity of
5.1MW. After the project is completed, we are expected
to generate an annual electricity output of around 5million kWh, reducing greenhouse gas emissions byapproximately 2,850 tCO
e per year.
2023 Electricity Consumption at the Battery MaterialProduction Base
Nuclear Power543,235,909.99Photovoltaic Power452,074.50Wind Power56,969,657.07Hydropower22,394,980.00Thermal Power81,831,990.14Total Consumption704,884,611.70
CategoryConsumption（kWh）
3.18%
0.06%
Electricity composition by type at the batterymaterials production base in 2023
77.07%
8.08%
11.61%
核电光伏电风电水电火电
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Due to the emissions generated during the production process of products (such aslithium batteries, etc.), which cannot realize net zero emissions through green energymethods, we will achieve net zero through carbon o?setting, such as purchasing a smallamount of carbon credits or engaging in carbon trading.
Offset through Carbon Trading
Participating in carbon sink trading combines a company's carbonemissions with carbon credits trading to effectively offset carbonemissions and reduce their negative impact on the environment. In2023, our battery material production base in Sanming participated inVCS carbon sink trading and purchased carbon credits generated fromthe Hunan Dongping 72MW hydropower project to offset the carbonemissions from the production base.
At the rare earth smelting, separation, and materials production base inChangting, we actively procure green electricity and purchase carbono?sets to neutralize the remaining carbon emissions, helping to achievenet zero goals.
Our battery materials production base implements the "The14th Five-Year Plan for Green Industrial Development" and the"Implementation Plan for Carbon Peaking in the Industrial Sector",continuously improving the green manufacturing managementsystem. The battery materials production base in Sanming passedthe PAS2060:2014 certification in 2022 and became a net zeroemissions factory.
Carbon Offset Certificate三明电池材料生产基地达成碳中和宣告核证声明
Highlight |
Highlight |
Highlight |
Purchasing Carbon Sink
Net Zero Emissions Factory
Participation in VCS Carbon Sink Trading
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Pollution Control and Ecosystem ProtectionOur environmental management policy revolvesaround "legality and compliance, pollution prevention,consumption reduction and waste reduction, andcontinuous improvement". We adhere to the principleof "compliance with regulations as the bottom line,continuous efforts in reducing consumption and waste,and comprehensive improvement activities". We haveestablished a sound environmental management system,set environmental management objectives, and delegatedthem to each subsidiary. We require each subsidiary toconduct environmental impact assessments, apply forpollution discharge permits, and complete environmentalprotection acceptance inspections in accordance with lawsand regulations. We standardize the management of waterresource protection, emissions of waste gases, wastewater,and solid waste, and utilize the PDCA management systemto continuously improve environmental managementperformance. During the reporting period, JiujingGolden Egret was awarded the title of National GreenDemonstration Factory, Hongbo Industrial and BasicElectronic Materials were awarded the title of Fujian GreenFactory. In addition, XTC Haicang Branch, Golden DragonRare-earth, XWXN(Xiamen), XWXN (Sanming), XWXN(Ningde), and GANPOWER are all national-level greenfactories. We own a total of 9 green factories.
XTC Environmental Protection Management Framework
Legal compliance, pollution prevention, consumption reduction, waste reduction, continuous improvementCompliant discharge as the baseline, continuously carry out activities for reducing consumption and waste to improve overall operationsGoals aligned with XTCEnvironmental Impact AssessmentPrevention and Operation ofWastewater PollutionContinuous PersonnelImprovementFive Improvement
Four Operations
Three PermitOne Goal, Two Systems
Management PrinciplesManagement Policy
Energy Conservation andConsumption Reduction
Pollution Reduction andEmission ReductionIdentify environmental factors, achieve pollution prevention, and implement the PDCA management system cycle
Pollution Prevention SystemEnvironmental Performance
Assessment System
Prevention and Operation of Air
Pollution
Prevention and Operation of PlantBoundary Noise Pollution
Solid Waste Pollution Prevention and
Operation
Sound Operational SystemApplication for Pollutant Discharge Permit
Robust Emergency SystemEnvironmental completion acceptance
Break Down
Realization
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| 2023 Sustainability Report
Water ConsumptionDuring the reporting period, our water consumption was 2,162,530.69 cubic meters, a decrease of 552,324.87 cubic meterscompared to 2022. The water consumption intensity was 5,488.95 cubic meters per 100 million RMB of revenue, a decrease of
140.96 cubic meters per 100 million RMB of revenue compared to 2022.
Water ConservationWe attach great importance to water resources management and strictly adhere to the requirements of relevant laws andregulations such as the Environmental Protection Law of the People’s Republic of China, the Water Law of the People's Republicof China, and the Water Pollution Prevention and Control Law of the People's Republic of China. In accordance with therequirements of the Environmental Protection Declaration, we have formulated corresponding regulations and systems such asthe Environmental Protection Management System, Environmental Protection Basic Norms, and Water Resources ManagementDeclaration to strengthen the protection and management of water resources in our business operations. Through technologicalinnovation and equipment upgrading, we achieve the recycling of water resources, minimize external water intake, and reduceemissions to the external environment, thereby minimizing the negative impact on local water resources.
Water Consumption
Water Consumption(m
)耗水密度（立方米/亿元营收）
4,000,000.003,500,000.003,000,000.002,500,000.002,000,000.001,000,000.00500,000.00
0.00
14,000.0012,000.0010,000.008,000.006,000.004,000.002,000.00
0.00
2021 2022 2023
2023 Management Objectives for Pollution Control and Ecosystem Protection
To continuously improve the construction of the environmental management system. Twenty-two affiliatedenterprises need to obtain ISO14001 environmental management system certification, covering 61% of the company.
To continuously improve the construction of the energy management system. Fifteen affiliated enterprises need toobtain ISO50001 energy management system certification, covering 42% of the company.30 environmental violations throughout the year4Gradually increase the proportion of recycled water
Comprehensively strengthen soil pollution risk management and control work, gradually reducing the potentialimpact of business operations on the soil environment.
All affiliated enterprises need to achieve standard emissions and disposal of exhaust gases, wastewater, and wastethroughout the year, with the recycling rates of wastewater and waste gradually increasing
To establish a sound tailings pond management mechanism and collaborate to promote biodiversity conservationand green development, all affiliated enterprises need to accumulate a revegetation covering of at least 88,278 squaremeters.
5,488.952,162,530.692,714,855.565,629.91
3,717,815.3611,672.09
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| 2023 Sustainability Report
At the mining site in Ninghua Xingluokeng, we achieved 100% water recycling for bene?ciation production byconstructing front-end water recycling systems, tailings pond water recycling systems, seepage interception pondwater recycling systems, and wastewater discharge treatment systems.
√ The front-end water recycling system mainly consists of one 53-meter diameter thickener and two 30-meter
diameter thickeners. The clarified overflow water is collected and then pumped to a 2,000 cubic meterfront-end water tank for recycling.
√ The tailings pond water recycling system treats tailings wastewater through coagulation, neutralization,
self-puri?cation, aeration, adsorption, and precipitation before it ?ows back to the bene?ciation plant forreuse via siphon pipes.
√ The seepage interception pond water recycling system collects seepage water from the early-stage dam,
surface seepage, and runo? water in a 12,000 cubic meter interception pond. After being pumped to thehigh-level water tank of the tailings pond, the water ?ows back to the bene?ciation plant for recycling.
√ The wastewater discharge treatment system is a sewage treatment facility built with an investment of
over 5.3 million RMB, based on the principle of caring for, cherishing, and protecting water. It treats excesswater from the tailings pond due to rainfall to meet surface water Class III standards before discharging itexternally, ful?lling our responsibility to preserve the pristine environment of Ninghua.In addition, we have collaborated closely with the Ninghua County government and participated in the RiverOverseer System, becoming a corporate river overseer. We have implemented the "Enterprise River OverseerInspection System" to regulate the inspection work of corporate river chiefs according to requirements, e?ectivelyfulfilling corporate river chief responsibilities, strengthening river protection and management, and promptlyidentifying, addressing, and resolving water pollution issues. We conduct weekly inspections of the rivers,increasing inspection frequency in sections with more problems. Simultaneously, we maintain a "River OverseerLog," which records inspections covering various aspects such as the presence of garbage in the river, obstaclesin the river, violations on the riverbank, abnormal water conditions, damage to aquatic ecosystems, compliancewith signage regulations, and any other issues a?ecting water safety, aquatic ecology, and water environment,ensuring the e?ective protection of local water resources.
Water Resource Protection MeasuresIn the mining extraction phase:
water recycling forbeneficiation production100%
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In Duchang, the water recycling rate in our mines exceeds 90%, and we have achieved 100%recovery and utilization of mine water. We have established a comprehensive wastewatermanagement system and sewage treatment system, and implemented integrated utilization ofproduction and domestic wastewater:
In residential areas, we have installed underground drainage ditches. Domestic sewage ?ows into
the drainage ditches and then enters the domestic sewage pool. After harmless treatmentin the underground treatment facility, we enter the tailings system for recycling. Most of thetailings pond wastewater enters the bene?ciation plant's high-level water tank through thereturn water system and is eventually reused as production water. The wastewater, afteraeration and sedimentation, undergoes COD degradation and pH neutralization beforemeeting discharge standards. The entire process achieves a wastewater recycling rate of over90%.To address water inflow during mining, we have implemented deep mining technology for oreresources and formulated the "Mine Water Inflow Management System," achieving 100%recovery and utilization of mine water.
In the mining activities at Longyan Rare-earth Mine, our wastewater recycling rate exceeds 100%, achieving zero discharge ofwastewater. The external sources of water for rare earth mining activities mainly consist of two parts: one part comes from surroundingrivers, and the other part comes from groundwater and natural water, serving as drinking water for on-site personnel. We attach greatimportance to water resource protection, adhering to the "Water Environment Tracking and Monitoring Plan for the Overlying Rare EarthResources Recovery Project in Hetian Jinjiang Industrial Park, Changting County, Fujian Province," to monitor potential environmentalpollution risks arising from rare earth mining processes. We have obtained a "Water Taking Permit" issued by the water authorities andmanaged water intake according to the scale speci?ed in the "Water Taking Report."We adhere to the " Water Environment Tracking and Monitoring Plan for the Overlying Rare Earth Resources Recovery Project in HetianJinjiang Industrial Park, Changting County, Fujian Province" for environmental pollution monitoring. We have signed a water supplycontract with Changting County Taihangshan Water Supply Co., Ltd., to ensure that the water supply meets the contractual requirements.Currently, the water supply within the base remains stable. To maintain a consistent water supply, we regularly visit or contact the watersupply company by phone to understand the reservoir capacity and the operation status of water supply equipment, and assess theimpact of water resources on the company's production.Regarding the tailings water treatment in the mine, we have jointly developed a new technology for rare earth tailings water ammonianitrogen microbiological treatment with Fujian Normal University. This technology cultivates photoautotrophic microorganisms, which?x carbon dioxide from the air as a carbon source and absorb a large amount of ammonia nitrogen using sunlight as an energy sourceto synthesize organic carbon sources and biomass for the growth of nitrifying and denitrifying microorganisms to remove ammonianitrogen. After treatment with this technology, the concentration of ammonia nitrogen in the rare earth tailings water can be reduced to15mg/L as stipulated in the "Pollutant Discharge Standards for Rare Earth Industry," meeting the discharge standards and forming normalinflow and outflow water. The rare earth tailings water ammonia nitrogen microbiological treatment technology is one of the moste?cient technologies for treating ammonia nitrogen wastewater from ion-type rare earth mines in the southern region. Based on this,we have developed a comprehensive solution from high-concentration wastewater from closed mines to achieving ammonia nitrogenstandards in mountain bodies and small watersheds, overcoming signi?cant technical challenges in rare earth mining.
Water Inlet
PrimarySedimentationTank
SecondarySedimentation Tank
Primary MicrobialTreatment Pond
Secondary MicrobialTreatment PondMicrobial Treatment Process
Emission OutletMicro Filtration
Tertiary MicrobialTreatment Pond
water recycling ratein mines exceeds90%recovery andutilization rate ofmine water
100%
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| 2023 Sustainability Report
At the tungsten smelting production base, we collaborated with Central South University to develop and industrialize the innovative"Sulfur-Phosphorus Mixed Acid System Tungsten Green Smelting Technology," achieving near-zero discharge of wastewater. Thistechnology has been included in the "Action Plan for Promoting Clean Production Technologies in Key Industries for Water PollutionPrevention and Control," jointly issued by the Ministry of Industry and Information Technology and the Ministry of Ecology andEnvironment.At the tungsten smelting production base in Wenshan Prefecture, Yunnan Province, we actively explored ammonia nitrogen managementby introducing advanced stripping and ammonia removal technology. We replaced the existing blow-o? tower with advanced strippingtowers to improve the e?ciency of ammonia removal from the intermediate materials containing ammonia. This allowed for the recyclingand reuse of ammonia water, effectively improving the internal environment of the workshop and reducing the ammonia nitrogencontent in wastewater discharge.
At the Haicang tungsten smelting production base, we established a water-saving leadership group and designated water-savingmanagement positions. We developed a series of institutional documents, including the "Simultaneous Three and In-place FourManagement System," "Water-saving Work Meeting System," "Responsibility System for Water-saving Managers," and "Water-savingManagement System and Reward and Punishment Measures." Through continuous technological innovation, strengthened managementof wastewater discharge, and advocacy for water-saving concepts, we ensured the comprehensive implementation of water resourceprotection measures.
In the ion exchange operation, through technological breakthroughs and process improvements, the adsorptionprocess has transitioned from low-concentration adsorption to high-concentration adsorption. With the processimprovements, the water consumption per ton of ammonium paratungstate (APT) has decreased from 70 tonsto 30 tons, resulting in water savings of 40 tons per ton of product, approximately 200,000 tons of water savedannually.
Technical Innovation
We fully utilize the OA platform, WeChat public account platform, bulletin boards, and other platforms for waterconservation publicity and education, continuously enhancing employees' awareness of water conservation.Prominently display water conservation signage at water use points in the factory area to remind employeesto conserve water and create a water-saving atmosphere. In addition, conduct themed education activitiessuch as "Water Conservation" during monthly factory meetings and biannual meetings themed "AccompanyingWater Conservation". Distribute promotional materials on the theme of water conservation to employeesduring World Water Day, and regularly promote the concept of water conservation to employees.
As a municipal-level key soil monitoring enterprise, we carry out annual self-monitoring of soil and groundwater,hazard investigation, and risk prevention work according to requirements. With the assistance of third parties,we develop self-monitoring plans for soil and groundwater, conduct hazard investigations, and formulate "Soiland Groundwater Self-Monitoring Plans" and "Soil and Groundwater Hazard Investigation Reports", all of whichhave passed expert review.
在先进材料生产环节：
Water Conservation Philosophy
Monitoring and Testing
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At the Rare Earth Smelting, Separation, and Materials Production Base in Changting, we have established a water-saving management
leadership group and working group and formulated multiple water-saving management systems, implementing a four-levelmanagement system of company, department, workshop, and team to strengthen water-saving management. Meanwhile, we conductmonthly statistical analysis of water usage by each department, conducts at least one weekly supervision and inspection of waterfacilities, identify and rectify abnormal water usage, promptly detect and resolve potential problems and waste, and achieve the rationaluse of water resources.
For electroplating wastewater, we have introduced an advanced wastewater treatment system, which includes severalsubsystems such as organic wastewater treatment system, comprehensive wastewater treatment and recycling system,nickel-containing wastewater online recovery system, RO concentrate treatment system, and the broken circuit systemfor copper smelting wastewater. These subsystems work together to effectively remove organic substances fromwastewater, ensure compliance with discharge standards, reduce environmental impact, and achieve wastewaterrecycling, thus improving water resource utilization efficiency.During the reporting period, at our rare earth smelting and material production base in Changting, we compared the waterconsumption of major products such as rare earth oxides, magnetic materials, and rare earth metals with the unit product waterconsumption in 2022: In 2023, the unit product water consumption for rare earth oxides decreased to 0.03661 tons of standard coalper ton of product, a decrease of 0.6959% year-on-year; the unit product water consumption for magnetic materials was 0.01343tons of standard coal per ton of product, a decrease of 0.9657% year-on-year; the unit product water consumption for rare earthmetals sharply decreased to 0.00452 tons of standard coal per ton of product, with a significant reduction of 6.8110%.
Wastewater Treatment System
We have implemented an e?cient recycling water system at our rare earthsmelting and material production base in Changting. This system is mainlyresponsible for providing circulating cooling water to 45 pieces of equipmentused in magnet production processes. The system consists of 6 cold waterpumps with capacities of 55KW and 370m?/h, 6 hot water pumps withcapacities of 37KW and 320m?/h, 6 cooling fans with capacities of 7.5KW, coldand hot water tanks, overflow devices, and an automatic control system.During operation, the cold water pumps supply cooling water to eachwater-using equipment based on the set pressure. The water, heated by theequipment, ?ows back to the hot water tank and is then pumped by the hotwater pumps to the spray tower for cooling treatment before returning tothe cold water tank for recycling. Additionally, the number of cooling fansactivated is automatically calculated by the PLC control module based ontemperature sensor signals inside the cold water tank to achieve energy-saving effects. This system saves approximately 16,052,390 m? of waterannually. Currently, all equipment cooling water is recycled water, with awater recycling rate of about 98%.
The recycling water system
save approximately
16,052,390
m? water annuallywater recycling rate of about98%
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At the battery material production base, we have continuously standardized sewage treatment to achieve compliant discharge. We haveformulated regulations on resource and energy conservation to regulate water management. Through water-saving publicity, monitoringwater usage, and comparing with historical data, we ensure water conservation. We have also formulated regulations on wastewatermanagement and rainwater management to strengthen wastewater management, prevent water pollution, protect and improve theenvironment, and ensure the e?ective utilization of water resources.The main pollutants in the wastewater emitted during the battery material production process include chemical oxygen demand(COD), ammonia nitrogen, total cobalt, total nickel, total manganese, etc. We treat the wastewater by conveying it to the factory sewagetreatment station and using methods such as neutralization and coagulation sedimentation. Finally, the wastewater is discharged intothe sewage treatment plant. We have set up two sets of sewage treatment systems to correspond to the treatment of cobalt trioxideproduction wastewater and precursor production wastewater for ternary materials. The workshop wastewater ?rst undergoes gas-liquidseparation in the ammonia removal tower, and after the ammonia gas is vaporized and removed, it is recycled to form ammonia waterfor reuse. The bottom liquid from the tower is treated through equipment such as pressure ?ltration and ?ltration, and ?nally, after pHadjustment by the acid-base regulation system, it is discharged up to standard. Additionally, we utilize a puri?ed reverse osmosis systemto treat MVR evaporation condensate water. The rinsing and regenerative wastewater is reused after multi-bag ?ltration and then sent tothe distilled water tank for secondary use, with a recovery rate of over 90%.At the battery material production base in Xiamen, we have set clear water conservation goals based on actual production andoperation conditions. The near-term goal for 2023 is to reduce water consumption per unit product to 30 tons of water per ton of productfrom the 2022 baseline of 33.01 tons of water per ton of product, with the goal for 2025 being further reduced to 26 tons of water per ton ofproduct. The aim is to continuously improve water resource utilization e?ciency and achieve sustainable development.
At the battery material production base in Sanming, we have developed a water-saving checklist and continuously trackedimprovements. Facilities such as sinks and urinals in the factory area are equipped with inductive switches to effectively avoidunnecessary water waste. We conduct monthly water consumption statistics and analyze any anomalies to ensure timely detection andresolution of potential water waste issues. Additionally, we pay attention to detecting leaks in factory pipelines, regularly inspecting andidentifying leakage points in the factory area to take corrective measures promptly and ensure the rational use of water resources.
Reused WaterProcess FlowDiagram
Coagulation
Tank
IntermediateTankRecoveryPool(Former)
Flo䦃ulation
Tank
Sedimentation TankConcentrate Tank(Former)Filter press(Former)
Multi-media?lter(Former)Disfectiondevice
PACPAM
At the battery material production base in Sanming, we have been continuously improving the process ?ow for wastewaterreuse, comprehensively utilizing production wastewater to e?ectively conserve water resources. After the implementationof this process ?ow, it is estimated that the use of tap water can be reduced by 40 tons per day, and wastewater dischargecan be reduced by 40 tons per day.
Production Wastewater
Compressed Air
Manual ValveSwitchingManual ValveSwitching
Original SystemTreatmentPumpPump
PumpProduction Use
Pump(Former)
Manual DischargeMaterial recoveryCentralizedTreatmentManual Discharge
StandardizedExternalTransportationand DisposalSewagePipelines
MaterialPipelines
Compressed AirPipelines
Disinfectionpipelines
Return WaterPipelines
Pump
Highlight |
Wastewater Reuse and Retrofit Project
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We strictly adhere to relevant laws and regulations, implement the concept of water conservation, strengthen water management, anduse and protect water resources reasonably. Guided by the "Environmental Protection Declaration," each production base has formulatedcorresponding "Basic Environmental Protection Norms" and "Wastewater Management Systems," stipulating that the wastewaterdischarged from production must be e?ectively treated and meet the standard for discharge. Di?erent types of wastewater are subject todi?erent speci?cations for discharge treatment according to their characteristics.Internal water usage targets are established during the production process. Each workshop and department devises monthly internalplans for new water usage based on the actual demand for water intake. After verification, these water usage targets are furtherdecomposed and managed.In terms of production water usage, recycling is fully considered, such as establishing water recycling tanks to avoid direct discharge ofusable "secondary water."Emphasis is placed on water conservation e?orts. Any damaged or leaking pipelines and faucets are promptly reported to the relevantdepartments for repairs to eliminate any instances of leakage.For communal area water usage, the "Management System for Energy Saving and Consumption Reduction in Public Areas" has beenformulated, with relevant departments conducting regular inspections to e?ectively implement water conservation measures.E?orts are actively made to cultivate employees' awareness of water conservation. Water-saving education is carried out through pre-shiftand post-shift meetings, safety awareness days, and dissemination via WeChat platforms to encourage employees to develop good habitsof water conservation.The carbide pump room and sintering pump room of the Cutting Tools Division utilize plate heat exchangers for internal circulationwater systems. The plate heat exchangers signi?cantly reduce the amount of cooling water used, thereby conserving water resources.Additionally, the circulating water cooling method employs deionized water or distilled water, preventing scale formation in theequipment's water circuit, thus prolonging equipment lifespan and enhancing equipment stability.
In the Tungsten-Molybdenum Wire Materials Division, water resources are recycled through the reuse of gravity melting cooling waterand comprehensive cooling water in the production process, greatly reducing water consumption intensity. Regarding the dischargeof cleaning water in the white wire workshop, discussions were held among relevant personnel to explore the feasibility of water reuse.Consequently, a 200-ton/day reclaimed water system was constructed in the white wire workshop, achieving a reuse rate of over 80%.
In GANPOWER, due to the abundant water resources in the region, we adapt to local conditions by collecting rainwater for reuse inproduction, striving to achieve water conservation goals.
In the deep processing phase:
In the secondary resource utilization phase:
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Waste Gas Emissions ManagemenAtmospheric quality is crucial to safeguarding the environment of the surrounding communities where we operate.We prioritize waste gas emissions management as a key environmental governance task in our business operations.We strictly abide by relevant laws and regulations such as the "Law of the People's Republic of China on thePrevention and Control of Atmospheric Pollution" and local policies, and ensure that the concentration and totalamount of atmospheric pollutants emitted comply with national and local emission standards in the areas wherewe operate.
The emissions of air pollutants from key environmental monitoring units of the company in 2023
Xiamen Tungsten Co.,Ltd. Haicang Branch
Particulate matter8.325666mg/m?Xiamen Atmospheric Pollutant Emission Control Standard (DB35/323-2018)0.621257.13
Organizedemission aftermeeting thestandards
Workshop roof exhaust stack, ball millroof exhaust stack, southwest exhauststack of the technical center
None
Ammonia12.445mg/m?Emission Standard of Odor Pollutants (GB 14554-93)1.46812768.904Cobalt and itscompounds
0.000277mg/m?Emission Standard of Pollutants for Inorganic Chemical Industry (GB 31573-2015)0.000002/
Chengdu Dingtai NewMaterial Co., Ltd.
Nitrogen oxides/
Comprehensive Emission Standards for Air Pollutants (GB16297-1996)、Emission Standard of Pollutants for Inorganic Chemical Industry (GB 31573-2015)
0.063/
Organizedemission aftermeeting thestandards
Workshop 1, Workshop 2, Workshop 3,Workshop 4, Boiler room in the factoryareaSulfur dioxide3mg/m?0.12/Particulate Matter4.5mg/m?0.19/Molybdenum0.0152mg/m?0.002059/Ammonia0.0311kg/hEmission Standard of Odor Pollutants (GB 14554-93)2.25/
Pollutants Emissions ControlWe rely on the XTC National-level Technology Center to promote the establishment of environmentalmonitoring systems in eligible subsidiary enterprises. These systems conduct real-time online monitoring ofenvironmental indicators such as air quality, water quality, and noise within the plant area. Additionally, wehire third-party testing agencies to conduct periodic inspections on all subsidiary enterprises, ensuring thatthey adhere to standard emissions.
Exhaust Emissions
During the reporting period, all subsidiaries of our company achieved standard discharge of exhaust emissions.
Enterprise Name
Main Pollutantsand Characteristic
Pollutants
Emission ConcentrationName of Implemented Pollutant Emission Standard
Total AnnualEmissions (tons)
ApprovedEmission Volumeof PollutantDischarge Permit(tons/year)
EmissionMethod
NumberofDischargeOutlets
Distribution of Discharge Outlets
ExcessiveEmission
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Chengdu HongboIndustrial Co., Ltd.
Nitrogen oxides5mg/m?
Comprehensive Emission Standards for Air Pollutants (GB16297-1996)Table 2: Secondary Standards for Maximum Permissible Emission Concentration andMaximum Permissible Emission Rate
0.0072/
Organized emissionafter meeting thestandards
Four-furnace emission port, vacuumquenching furnace emission port
None
Particulate matter24.3mg/m?
Emission standard of air pollutants for industrial kiln and furnace （GB9078-1996） Table2: Emission Limits for Other Furnaces and Kilns
1.164/
Ammonia0.013kg/hEmission Standard of Odor Pollutants (GB 14554-93) Table 2: Standards0.114/Fujian ChangtingGolden Dragon Rare-earth Co., Ltd.( Plantof New IndustrialDistrict)
Nitrogen oxides2.94mg/m?Emission standard of pollutants for electroplating （GB 21900-2008） Table 5: Standards2.29612514.45
Organized emissionafter meeting thestandards
One emission port for hot water boiler,one emission port for steam boiler,three emission ports for precipitation,one emission port for hydrochloric acidtank, two emission ports for extraction,one emission port for acid dissolution,five emission ports for magnet, and twoemission ports for smelting
Sulfur dioxide3.377321mg/m?
Emission standard of air pollutants for boiler （GB13271-2014） Table 2: Emission Limitsfor Gas Boilers
0.1424246.59
Particulate matter2.6mg/m?
Emission Standards for Pollutants in the Rare Earth Industry （GB26451-2011） Table 5:
Emission Limits
0.064875/
Non-methane
hydrocarbons
9.163348mg/m?
Emission standards of volatile organic compounds for industrial enterprises （DB35/1782-2018）Table 1: Emission Limits for Other Industries
0.505667/
Fujian ChangtingGolden Dragon Rare-earth Co., Ltd(Plant ofRare Earth IndustrialPark)
Nitrogen oxides2.94mg/m?Emission standard of pollutants for electroplating （GB 21900-2008） Table 5: Standards2.2961255.77
Organized emissionafter meeting thestandards
Three emission ports for electrolysis, twoemission ports for spraying, one emissionport for plating and electrophoresis,three emission ports for phosphating,two emission ports for electrolysis, oneemission port for galvanizing, and oneemission port for shot blasting
Sulfuric acid mist0.3538mg/m?Emission standard of pollutants for electroplating （GB 21900-2008） Table 5: Standards0.836592/
Particulate matter2.6mg/m?
Emission Standards for Pollutants in the Rare Earth Industry （GB26451-2011） Table 5:
Emission Limits
0.064875/
Volatile organic
compounds (VOCs)
1.593mg/m?
Emission standards of volatile organic compounds for industrial enterprises （DB35/1782-2018）Table 1: Emission Limits for Other Industries
0.446015/
Fujian Xinlu TungstenIndustry Co., Ltd.
Particulate matter12.96mg/m?
Comprehensive Emission Standards for Air Pollutants (GB16297-1996)Table 2: Secondary Standards
0.10550.948
Organized emissionafter meeting thestandards
Dust removal exhaust duct for alloy,exhaust duct for APT waste gas, exhaustduct for leaching alkali spray, exhaust ductfor tungstic acid drying, and exhaust ductfor tungstic acid waste gas
Non-methane
hydrocarbons
82.55mg/m?
Emission standards of volatile organic compounds for industrial enterprises （DB35/1782-2018） Table 1
0.627/
Ganzhou HighpowerTechnology Co., Ltd.
Nitrogen oxides98mg/m?Comprehensive Emission Standards for Air Pollutants (GB16297-1996) Table 2: LimitValues;Standard for pollution control on hazardous waste incineration ( GB 18484-2020) Table 3:
Limit Values;Emission standard of air pollutants for industrial kiln and furnace (GB 9078-1996) Table 2and Table 4: Secondary Standard Limits;（GB13271-2014）Emission standard of air pollutants for boiler （GB13271-2014） Table 2: Limit Values
0.1371/
Organized emissionafter meeting thestandards
Exhaust outlet for natural gas boiler,exhaust outlet for crushing and sorting,exhaust outlet for roasting furnace, andexhaust outlet for leaching
Sulfur dioxide24mg/m?0.1705/
Particulate matter10mg/m?0.7556/
Nickel and its
compounds
0.00045mg/m?0.00000785/
Enterprise Name
Main Pollutantsand Characteristic
Pollutants
EmissionConcentration
Name of Implemented Pollutant Emission Standard
Total AnnualEmissions (tons)
ApprovedEmissionVolume ofPollutantDischargePermit (tons/
year)
Emission Method
NumberofDischargeOutlets
Distribution of Discharge Outlets
ExcessiveEmission
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Jiangxi Duchang JindingTungsten Co., Ltd.
Nitrogen oxides59.756963mg/m?
Emission standard of air pollutants for boiler （GB13271-2014）
0.817989/
Organized emissionafter meeting thestandards
1Internal areas of the factory premises
None
Sulfur dioxide6.028852mg/m?0.082526/Luoyang Yulu TungstenMining Co., Ltd.
Nitrogen oxides11.38mg/m?
Local Standard for Boiler Atmospheric Pollutant Emission in Henan Province(DB41/2089-2021)
0.5261.972
Organized emissionafter meeting thestandards
2Boiler room roofSulfur dioxide0.35mg/m?0.0140.394
Particulate matter0.21mg/m?0.0080.197Malipo Haiyu Tungsten(H.C) Co., Ltd.
Nitrogen oxides167.08mg/m?
Emission standard of air pollutants for boiler （GB13271-2014） Table 1: StandardLimits
7.485411.6275
Organized emissionafter meeting thestandards
2East side of the factory areaSulfur dioxide41.028mg/m?1.90799.302
Particulate matter48.856mg/m?2.22452.326Xiamen Tungsten (H.C) Co.,Ltd.
Nitrogen oxides65.3mg/m?
Xiamen Atmospheric Pollutant Emission Control Standard (DB35/323-2018)
3.081/
Organized emissionafter meeting thestandards
Ammonia emission outlet, exhaust outlet 1,exhaust outlet 2, and exhaust stack 4#
Sulfur dioxide4mg/m?0.117/
Particulate matter3.87mg/m?0.15584.37XTC New Energy Materials(Xiamen) Co., Ltd. (HaicangBase)
Particulate matter5.766mg/m?Xiamen Atmospheric Pollutant Emission Control Standard (DB35/323-2018)2.5823.14996
Organized emissionafter meeting thestandards
Roof of the workshop building within thefactory area
Ammonia6.8265mg/m?Emission Standard of Odor Pollutants (GB 14554-93)1.23217.56
Nickel and its
compounds
0.084mg/m?Comprehensive Emission Standards for Air Pollutants (GB16297-1996)0.00871.51
Cobalt and its
compounds
0.031mg/m?Emission Standard of Pollutants for Inorganic Chemical Industry (GB 31573-2015)0.01341.08
Manganese and its
compounds
0.044mg/m?Integrate emission standards of air pollutants （DB31/933-2015）0.00450.55Xiamen Golden Egret Spe-cial Alloy Co., Ltd. (TonganPlant)
Particulate matter10mg/m?
Xiamen Atmospheric Pollutant Emission Control Standard (DB35/323-2018)
5.6952/
Organized emissionafter meeting thestandards
Six dust emission outlets, one organicwaste gas emission outlet, and onehydrogen chloride emission outletNon-methanehydrocarbons
0.24mg/m?0.01008/Hydrochloric acid0.45mg/m?0.0840/Chengdu LianhongMolybdenum Industry Co.,Ltd.
Particulate matter4.14mg/m?
Comprehensive Emission Standards for Air Pollutants (GB16297-1996)
0.5509/
Organized emissionafter meeting thestandards
6Surrounding the factory buildingNitrogen oxides13.66mg/m?0.0546/Hydrochloric acid1.06mg/m?0.0162/
Enterprise Name
Main Pollutantsand Characteristic
Pollutants
EmissionConcentration
Name of Implemented Pollutant Emission Standard
Total AnnualEmissions (tons)
ApprovedEmissionVolume ofPollutantDischargePermit (tons/year)
Emission Method
NumberofDischargeOutlets
Distribution of Discharge Outlets
ExcessiveEmission
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Emission Management Measures
The primary exhaust emissions generatedduring mining activities are dust andnitrogen oxides. We strictly comply withrelevant laws and regulations such asthe "Environmental Protection Law ofthe People's Republic of China" andindustry regulatory standards such asthe "Comprehensive Emission Standardsfor Air Pollutants" (GB16297-1996). OurMining Business Unit has developedinternal rules and regulations such as the"Environmental Protection ManagementSystem" and the "EnvironmentalProtection Assessment ManagementSystem." We continue to increaseinvestment in environmental protection,introduce clean production technologyand efficient waste gas treatmenttechnology, vigorously promote cleanproduction, and reduce the impact ofmining activities on the atmosphericenvironment.
Continuous equipment retro?ts are carried out to reduce waste gasemissions. In Duchang, we replace the traditional coal-?red boilerswith gas boilers, use clean energy natural gas instead of coal whichis more polluting to the environment, and commission professionaltesting institutions to test boiler emissions every quarter to reduceNOX emissions. In Luoyang, we implemented the coal to gas project,the average NOX emission concentration was 44mg/m3 before therenovation, and upgraded the low-NOX burner, the average NOXemission concentration was 28mg/m3 after the upgrade, the NOXemission concentration decreased by 36% before and after theupgrade, and the particulate matter, SO2 and NOX all achieved ultra-low emission standards.
Automatic monitoring and electronic display equipment for air pollutants areset up in the mining area to monitor air pollutants in real time. Every quarter,quali?ed third parties are commissioned to test the main sources of airpollutants to ensure compliance with emission standards.Establishment of environmentalmonitoring mechanism
Equipment retrofit
Dust removal systems are installed at locations prone to dust generation, such as thedischarge points of crushers, vibrating screens, and belt conveyors. In addition, dustsuppression equipment is installed in the crusher's crushing chamber and at the belt'sdischarge opening. The dust control e?ciency of the mineral processing process is over99%. In our Luoyang mineral processing plant, each workshop is equipped with e?cientwet dust collectors, and the drying workshop adopts high-voltage electrostatic wetdust removal technology. The dust removal e?ciency of mineral processing and dryingprocesses can reach over 99%.
Dedicated sprinkler devices and vehicle water sprinkling dust prevention facilitiesare set up on both sides of the road, e?ectively reducing dust generation duringtransportation. The plant area is equipped with an induction-type automatic carwashing platform, and dust reduction is e?ectively carried out on the transportationroad working surface through spray cannons and water trucks. Fog cannons areinstalled at the raw ore storage yard and the raw ore bin discharge ports, supplementedby spray dust suppression measures. Sealed vehicles are used for outbound producttransportation, e?ectively avoiding dust generation along the route and achievingexcellent dust removal results.
The mine adopts advanced mining blasting technology, which signi?cantly reducesvibration, noise, and dust generated during blasting. The down-the-hole drill rigs used inthe mine come with dust collection facilities, e?ectively capturing dust generated duringoperations and reducing dust emissions at the source. Additionally, mobile spray facilitiesand intelligent dust suppression monitoring equipment are installed during blasting andmining operations to minimize dust impact as much as possible.MiningMineral
processing
Transportation
In the mining phase:
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在先进材料生产环节：
Our tungsten smelting production base has formulated "Implementation Rules for Waste GasEmission Management" to standardize our waste gas emission management work. For di?erenttypes of waste gas, corresponding emission limits are formulated regarding relevant industrystandards:
√ Industrial waste gas emissions follow the "Emission Standard of Pollutants for
Inorganic Chemical Industry" (GB 31573-2015), "Emission Standard of Odor Pollutants" (GB14554-93), "Pollution Control Standard for Hazardous Waste Incineration" (GB18484-2020), and"Xiamen City Atmospheric Pollutant Emission Standard" (DB35 323-2018);
√ Transportation waste gas emissions follow the "Emission Limits and Measurement
Methods for Pollutants from Light-Duty Vehicles (China Phase VI)" (GB18352.6—2016) standard;
√ Domestic waste gas (canteen fume) emissions follow the "Emission Standard for
Fume from the Catering Industry" (GB 18483-2001) standard.We monitor waste gas emission indicators monthly, hire professional third-party institutionsto conduct waste gas emission testing and link waste gas testing results with the responsiblepersons of relevant departments and departmental performance.
Our rare earth smelting, separation, and material production base has formulated the"Environmental Protection Management Regulations" to strictly regulate the management ofexhaust emissions. The exhaust gases generated during the rare earth smelting, separation,and material production process mainly include particulate matter, sulfur dioxide, nitrogenoxides, sulfuric acid mist, and non-methane hydrocarbons. The Safety and EnvironmentalProtection Department is responsible for the supervision and management of atmosphericemissions. In accordance with relevant laws and policies, we have developed a self-monitoringplan for enterprise atmospheric emissions and regularly commissioned third-party professionalinstitutions to conduct monitoring of atmospheric pollutant emissions to ensure that the
In the advanced material production process:
concentration and total emissions of atmospheric pollutants comply withnational and local emission requirements. For units and personnel who fail toful?ll their responsibilities or make mistakes in ful?lling their responsibilities,we will conduct assessments based on the contents of the "EnvironmentalResponsibility Bond" and the "Implementation Rules for Safety andEnvironmental Management Assessment." If accidents resulting in casualtiesoccur, corresponding responsibilities will be pursued in accordance with thelaw. In 2020, Our rare earth smelting, separation, and material productionbase purchased a 5-year sulfur dioxide emission quota from Fusheng RecycledPaper Factory, Cangshan District, Fuzhou City and Evonik Wellink Silica(Nanping ) Co., Ltd., with transaction quantities of 1.3756 tons/year and 0.2444tons/year respectively. We also purchased a 5-year nitrogen oxide emissionquota from Xiamen Hongyishun Environmental Protection Technology Co.,Ltd., with a transaction quantity of 5.94 tons/year.For the production processes and devices that generate exhaust gaspollutants, we have established e?cient gas collection systems and selectedappropriate puri?cation treatment devices. All exhaust gases generated byour company must be treated by exhaust gas treatment facilities to meetstandards before being discharged. According to the di?erent types of exhaustgas pollutants, we have speci?c requirements for the height of exhaust stacksand maintain appropriate distances from surrounding buildings to reduce theimpact on the surrounding environment. In the plant of new industrial districtin this base, we have installed multiple sets of exhaust gas treatment facilities,including acid solution exhaust gas treatment facilities, extraction exhaust gastreatment facilities, hydrochloric acid tank exhaust gas treatment facilities,precipitation exhaust gas treatment facilities, magnet exhaust gas treatmentfacilities, and shot blasting exhaust gas treatment facilities. We use advancedtechnology combinations such as water spray + alkali spray + electrostaticdedusting, organic absorption + alkali spray + UV photolysis + activatedcarbon adsorption, alkali spray, oil mist ?lter + water spray + dry ?ltration,and water spray to treat substances such as hydrogen chloride, chlorine,particulate matter, and non-methane hydrocarbons in the exhaust gas beforedischarging them through the exhaust stack. During the reporting period, ourrare earth smelting, separation, and material production base achieved thegoal of 100% standard emission of exhaust gases.
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Our battery materials production base is committed to continuously reducing waste gas emissions during production. We haveformulated internal regulations and systems such as the "Environmental Protection Management System" and "Waste Gas ManagementRegulations", adhering to reducing emissions and implementing waste gas emission control from the source. We continue to promoteand optimize the application of real-time monitoring systems for exhaust gases to ensure that e?ective treatment and control measurescan be implemented promptly upon detection of harmful gases, thereby avoiding atmospheric pollution.The waste gas pollutants generated during the battery materials production process mainly include particulate matter, ammonia,nickel and its compounds, cobalt and its compounds, manganese and its compounds, and others. We combined the emission limits of"GB16297-1996 Comprehensive Emission Standard for Atmospheric Pollutants", "GB31573-2015 Emission Standard for Pollutants fromInorganic Chemical Industry", and "DB35/323-2018 Xiamen Atmospheric Pollutant Emission Control Standard" to formulate our internalwaste gas emission indicators. We have taken the following measures to manage waste gas emissions to ensure compliance with thestandards:
IWhen purchasing new equipment and conducting technological upgrades, we prioritize the use of equipment andprocesses with high resource utilization rates and low pollutant emissions.IIncrease the capacity to recover unorganized ammonia in the workshop operating environment and strengthen theammonia treatment capacity in the workshop. Add an ammonia spray absorption tower in the precursor workshop toreduce ammonia emissions.IImprove the ?ltering facilities at the exhaust ports to ensure that all production emissions pass through them, thereby
achieving emissions that comply with standards.IThe canteen is equipped with an oil fume puri?cation device, and during the daily operation of the canteen, the oilfume puri?cation device must be turned on simultaneously. Regular cleaning and maintenance of the puri?cationdevice are conducted to prevent blockage or oil leakage. The waste oil generated during the purification processshould be directed into a grease trap and external discharge is prohibited.
Prevention of harmful gasesISuppliers and other relevant parties must ensure the quality of the chemicals they provide. Upon receipt of chemicals,responsible personnel should carefully inspect and accept them, and take measures to store and protect themproperly to prevent chemical leaks and the generation of toxic and harmful gases.IDuring the use of volatile chemicals, the packaging (or container) of the chemicals should be checked for integrity.Measures such as keeping volatile gas, oil, and paint storage areas away from light, maintaining low temperatures(room temperature), and ensuring ventilation should be implemented. In case of spills, leaks, or volatile chemicals, the"Emergency Preparedness and Response Management Procedures" should be followed to prevent large amounts ofchemical gases from being released, causing harm to human health and environmental pollution.IBurning of garbage, waste, and other refuse is strictly prohibited both within and outside the company premises.
Real-time online monitoring
Standardized emission standards
Install particulate matter online monitoring facilities at all particulate matter waste gas emission points for real-timemonitoring of particulate matter concentration changes.Install ammonia online monitoring devices in the factory boundary, sewage treatment stations, around MVR, and insidesome workshops.
IThe environmental regulations require that particulate matter emission concentration does not exceed 30mg/m3.However, our internal management sets a higher standard for exhaust gas emissions, requiring that they do not exceed15mg/m3.
Additional treatment facilities
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We strictly abide by laws and regulations such as the "Law ofthe Peoples Republic of China on the Prevention and Control ofAtmospheric Pollution" and relevant policies in the areas where ourbusiness is located. Each production base has formulated internalregulations and systems such as the "Three Wastes ManagementSystem", "Hazardous Waste Chemicals Management System","Environmental Protection Management System", "The Measures for theManagement of Wastewater, Waste Gas, and Noise", and "Regulationson Air Pollution Management" according to the requirements of our"Basic Environmental Protection Regulations" and in conjunction withtheir actual situation, ensuring that waste gas emissions meet theenvironmental standards of the areas where our business is located. Wecontinue to increase investment in environmental protection, promotethe application of real-time waste gas monitoring equipment, andadvance clean production to reduce the negative impact of productionand operation activities on the environment:
The emissions from the production and operation of the Alloy andCutting Tools Division mainly include particulate matter, non-methanehydrocarbons, ammonia, hydrogen chloride, etc. We implement a seriesof measures to reduce emissions of air pollutants as much as possible.Every quarter, we commission qualified third-party organizationsto conduct exhaust gas testing to ensure compliance with emissionstandards.Measures for Reducing Air Pollutants:
√ For particulate matter, cyclone dust removal and bag type dust
removal are used.
√ For non-methane hydrocarbons, adsorption-desorption catalytic
combustion equipment is used.
√ for hydrogen chloride, alkali spray tower is used for neutralization.
√ For the small amount of dust generated during the production process, which has recycling value, we use
a specialized closed multi-stage collection system to e?ectively eliminate unorganized dust emissions.
√ For the ammonia-containing waste gas generated in the APT calcination section, we use our patented
technology to convert it into nitrogen and water through decomposition and combustion treatment.
√ For the organic waste gas generated in the sintering process, we treat it to meet standards through
adsorption concentration + catalytic combustion.
√ For the degreasing and vacuum sintering waste gas, we use an advanced sintering machine system
imported from abroad, which comes with a paraffin condensation recovery system. The waste gas isdischarged after condensation recovery + rooftop axial ?ow fan exhaust.
√ For the tail gas from methanol production, it is discharged along with the ?ue gas from the thermal oil
furnace after combustion.
√ For the waste gas generated from the natural gas combustion in the thermal oil furnace, it is discharged
through a 15-meter-high exhaust pipe.For canteen fume, it is treated to meet standards before being discharged by the fume puri?cation facility, andoil mist is treated by an oil mist separator and not discharged externally.
In 2023, the RTP Manufacturing Department of XiamenGolden Egret Jimei Factory added two sets of waterspray towers to reduce the emission of alcohol fumes.Additionally, all short exhaust stacks in the factoryarea were appropriately regulated to ensure standardemission of exhaust gases.
In the deep processing:
合金及切削工具事业部集美厂区
Highlight |
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Highlight |The waste gases emitted during the production and operation of the Tungsten and Molybdenum Wire Materials Division mainly includeammonia, hydrochloric acid, dust, sulfur dioxide, and hydrogen ?uoride. We collect and recycle the ammonia gas generated during theproduction process, converting it into ammonia water for external sales. We use bag ?lter dust collectors to collect metal dust such astungsten oxide and molybdenum oxide, thereby reducing the emission of air pollutants. Additionally, we conduct annual exhaust gastesting through quali?ed third-party organizations to ensure compliance with emission standards.
达标排放
气液分离尾气
冷凝水
氨气
循环泵气液分离
五级膜吸收四级膜吸收三级膜吸收二级膜吸收
一级膜吸收除尘冷却吸收剂
We introduce waste gases from the production process into absorption components for ammonia absorption. The absorber isa ?ber microporous membrane, with waste gas and absorbent on opposite sides of the membrane. Ammonia gas permeatesthrough the membrane pores and is absorbed by the absorbent on the other side into the liquid phase. This process selectivelyabsorbs ammonia and other gases from industrial waste gases, producing a certain purity of commercial ammonia solution.This process has the following advantages: the absorption component selectively absorbs ammonia and other gases fromwaste gases. Ammonia gas dissolves in circulating water to produce a certain concentration of ammonia solution after passingthrough the component, achieving the purpose of ammonia recovery and utilization. After the ammonia-containing waste gasis absorbed by the system, it can meet the national emission standards, and the exhaust gas can be directly discharged withoutfurther treatment. Ammonia gas enters the circulating water through the membrane component to form ammonia solution. Bycontrolling the process parameters, the concentration of ammonia solution can meet the standard of commercial ammoniasolution, which can be sold or used for self-use, saving processing costs and realizing the resource utilization of ammonia gas inindustrial waste gases, turning waste into treasure. Currently, this process can absorb 187.52 kg of ammonia per day, producing750 kg of ammonia solution (ammonia solution concentration ≥25%).
We use a combustible gas detector and a mixing boxto ensure uniform mixing of the flue gas. The mixedgas then enters the electromagnetic decolorizer afterpassing through two-stage cooling and scrubbingtowers for purification before discharge. Theelectromagnetic decolorizer controls the intensity anddensity of the electromagnetic field by adjusting theelectromagnetic energy to a?ect the mist capture andwater retention properties. It achieves a mist capturerate of over 97%. The electromagnetic decolorizercan remove dust and solid particles from the fluegas, as well as water and aerosols, meeting dustemission standards and recovering water resourcesfor recycling.
Electromagnetic decolonization to remove waste gas
Highlight |
Ammonia Recovery Process
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Enterprise Name
Main Pollutantsand CharacteristicPollutants
EmissionConcentration
Name of Implemented Pollutant Emission Standard
Total AnnualEmissions (tons)
Approved EmissionVolume of PollutantDischarge Permit
(tons/year)
Emission
Method
Number ofDischargeOutlets
Distribution of Discharge
Outlets
ExcessiveEmission
Wastewater Discharge Management
The wastewater pollutant discharge for key environmental monitoring units of the company in 2023
Xiamen Tungsten Co., Ltd. HaicangBranch
Chemical OxygenDemand
110.00mg/L
Integrated Wastewater Discharge Standards (GB8978-1996)
63.463809468.39
Emission afterreaching thestandard
The southwest side waste watertotal discharge outlet of thefactory area
NoneAmmonia Nitrogen18.13mg/L9.78202442.155Total Lead0.036875mg/L0.0264940.9368Total Arsenic0.142333mg/L0.1136570.4684Total Mercury0.000129mg/L0.0000930.0469Total Nickel0.148333mg/L0.1149610.9368Total Chromium0.03mg/L0.02319/Total Cadmium0.003mg/L0.006237/Total Cobalt0.384583mg/LIntegrated Wastewater Discharge Standard (DB31/199-2018)0.306598/Total Nitrogen23.5mg/L
Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015)
15.05595465.575
Chengdu Hongbo Industrial Co., Ltd
Chemical OxygenDemand
90mg/L
Integrated Wastewater Discharge Standards (GB8978-1996) Table 4: Tier 3Standards
10.9356/
Emission afterreaching thestandard
Factory South Discharge Outlet,Factory North Discharge Outlet
NoneAmmonia Nitrogen16.2mg/L
Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) Table 1: Class B Standard Values
1.968/
Total Nitrogen46.4mg/L5.6376/
Fujian Changting Golden DragonRare-earth Co., Ltd. (Plant of NewIndustrial District))
Chemical OxygenDemand
5.667mg/L
Emission Standards for Pollutants in the Rare Earth Industry （GB26451-2011）Table 2: Direct Discharge;Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) Table 1: Class A Standard Values
2.35299711.043
Emission afterreaching thestandard
Main wastewater dischargeoutlet and domestic sewagedischarge outlet in the factoryarea
NoneAmmonia Nitrogen0.753mg/L0.3128784.02Total Nitrogen1.54208mg/L0.640345/Total Phosphorus0.03406mg/L0.014144/Total Zinc0.05mg/L 0.020762/Total Lead0.00159mg/L0.0002640.0017
Wastewater DischargeOur wastewater primarily originates from production process wastewater, domestic sewage, andworkshop cleaning wastewater. The pollutants in the wastewater mainly include Chemical OxygenDemand (COD), Ammonia Nitrogen, Total Nitrogen, Total Phosphorus, etc. During the reporting period,all subsidiaries of our company achieved standard discharge of wastewater.We have formulated and strictly implemented the "Environmental Protection Management System,""Pollutant Emission Management Regulations," "Wastewater Management Regulations," "RainwaterManagement Regulations," and other related regulations for wastewater discharge. These regulationsstandardize the requirements for wastewater treatment and discharge, ensuring that wastewater isdischarged in compliance with standards.
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Enterprise Name
Main Pollutantsand Characteristic
Pollutants
EmissionConcentration
Name of Implemented Pollutant Emission Standard
Total AnnualEmissions (tons)
Approved EmissionVolume of Pollutant
Discharge Permit(tons/year)
EmissionMethod
Number ofDischarge
Outlets
Distribution of Discharge
Outlets
ExcessiveEmission
Fujian Changting Golden DragonRare-earth Co., Ltd(Plant of Rare Earth Industrial Park)
Chemical OxygenDemand
5.667mg/L
Emission Standards for Pollutants in the Rare Earth Industry （GB26451-2011）Table 2: Direct Discharge;Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) Table 1: Class A Standard Values
2.35299711.18
Emission afterreaching thestandard
Main wastewater dischargeoutlet and domestic sewagedischarge outlet in the factoryarea
NoneTotal Nitrogen1.54208mg/L0.640345/Total Nickel0.012mg/L
Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) Table 1: Class A Standard Values (Domestic Sewage)
0.0000280.00112
Total Copper0.022mg/L
Emission standard of pollutants for electroplating （GB 21900-2008） Table 2:
Standards
0.0013390.01184
Ammonia Nitrogen0.753mg/L
Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) Table 1: Class A Standard Values (Domestic Sewage)
0.3128781.048
Total Zinc0.05mg/L0.0207620.0216Total Phosphorus0.03406mg/L0.014144/
Fujian Xinlu Tungsten Industry Co.,Ltd.
Chemical OxygenDemand
34.9374mg/L
Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015) Table 1: Class B Standard Values
2.55174.51
Emission afterreaching thestandard
Wastewater main dischargeoutlet on the northeast side ofthe factory area
NoneAmmonia Nitrogen0.2373mg/L0.01490.601Total Lead0.3503mg/L
Integrated Wastewater Discharge Standards (GB8978-1996) Table 1: Standards
0.03020.0502
Total Arsenic0.0048mg/L0.00030.0314Total Chromium0.0625mg/L0.00480.0314Total Cadmium0.0422mg/L0.00330.0062Total Cobalt0.01mg/L
Emission Standard of Pollutants for Inorganic Chemical Industry (GB 31573-2015) Table 1
0.0007/
Ganzhou Highpower TechnologyCo., Ltd.
Chemical OxygenDemand
6.147mg/l
Integrated Wastewater Discharge Standards (GB8978-1996) Table 4: Tier 3Standard Limits
0.05141.977
Emission afterreaching thestandard
Northeast corner of the factoryarea
NoneAmmonia Nitrogen0.181mg/L0.00320.036Total Nickel0.01mg/L0.000061/Total Cobalt0.28mg/L0.00164/
Jiangxi Duchang Jinding TungstenCo., Ltd.
Chemical OxygenDemand
34.799053mg/L
Integrated Wastewater Discharge Standards (GB8978-1996) Table 4: StandardUpgrade from Level 1
30.023100.48
Emission afterreaching thestandard
1North side of the factory areaNoneAmmonia Nitrogen0.156128mg/L0.13475.98Total Phosphorus0.327879mg/L
Integrated Wastewater Discharge Standards (GB8978-1996) Table 4: Level 1Standard
0.2828790.598
Total Nitrogen1.782392mg/L
Wastewater discharge standard of Poyang Lake eco-economic district inJiangxi Province (DB 36/ 852—2015) Upgrade
1.53776514.35
Total Lead0.000591mg/L
Integrated Wastewater Discharge Standards (GB8978-1996) Table 1
0.000511.2
Total Arsenic0.333646mg/L0.2878540.6Total Mercury0.000668mg/L0.0005760.06Total Cadmium0.005049mg/L0.0043560.12
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Enterprise Name
Main Pollutantsand Characteristic
Pollutants
EmissionConcentration
Name of Implemented Pollutant Emission Standard
Total AnnualEmissions (tons)
Approved EmissionVolume of Pollutant
Discharge Permit
(tons/year)
Emission
Method
Number
ofDischargeOutlets
Distribution of Discharge
Outlets
ExcessiveEmission
Malipo Haiyu Tungsten (H.C) Co.,Ltd.
Chemical OxygenDemand
25.333mg/L
Emission Standard of Pollutants for Inorganic Chemical Industry (GB 31573-2015) Table 1
1.09392.274
Emission afterreaching thestandard
1West side of the factory areaNoneAmmonia Nitrogen1.345mg/L0.05740.455Total Lead0.002555mg/L0.000104/Total Arsenic0.00055mg/L0.000023/Total Cadmium0.013675mg/L0.000552/Total Nitrogen9.184mg/L0.385825/Ninghua Xingluokeng TungstenMining Co., Ltd
Chemical OxygenDemand
24.913861mg/L
Integrated Wastewater Discharge Standards (GB8978-1996)
2.6128/
Emission afterreaching thestandard
Discharge outlet for domesticsewage, discharge outlet fortailings pond during the rainyseason, 2 discharge outlets forsedimentation tanks, dischargeoutlet for leaching water fromwaste rock area
NoneAmmonia Nitrogen0.323572mg/L0.0339/Total Arsenic0.001626mg/L0.0001/Total Cadmium0.000813mg/L0.000043/Total Molybdenum0.272958mg/L0.028/
Xiamen Tungsten (H.C) Co., Ltd
Chemical OxygenDemand
57.19mg/L
Integrated Wastewater Discharge Standards (GB8978-1996)
7.80412.9
Emission afterreaching thestandard
Main sewage discharge outlet inthe factory area
NoneAmmonia Nitrogen7.37mg/L1.93322.3Total Lead0.0069mg/L0.0005820.148Total Arsenic0.11mg/L0.0090640.01Total Nitrogen23.4mg/L
Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015)
2.0486610.326
XTC New Energy Materials (Xiamen)Co., Ltd. (Haicang Base)
Chemical OxygenDemand
42.250000mg/L
Discharge standard of water pollutants for Xiamen (DB35/322-2018)
5.971445.9557
Emission afterreaching thestandard
Discharge outlet on thenorthwest side of the factoryarea
NoneAmmonia Nitrogen4.853mg/L1.79326.1274Total Nickel0.101mg/L0.03740.0383Total Manganese0.076mg/L0.02821.5319Total Cobalt0.199mg/L0.0734/Xiamen Golden Egret Special AlloyCo., Ltd. (Tongan Plant)
Chemical OxygenDemand
12mg/L
Discharge standard of water pollutants for Xiamen (DB35/322-2018)
//
Emission afterreaching thestandard
Factory production wastewaterand domestic sewage dischargeoutlet
NoneAmmonia Nitrogen0.043mg/L0.003/Chengdu Lianhong MolybdenumIndustry Co., Ltd.
Chemical OxygenDemand
32.25mg/LIntegrated Wastewater Discharge Standards (GB8978-1996)0.242290 /Emission afterreaching thestandard
1South outlet of the factoryNoneAmmonia Nitrogen0.681mg/L
Wastewater quality standards for discharge to municipal sewers (GB/T31962-2015)
0.005116 /
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At the Haicang tungsten smelting and production base, we have formulated "Implementation Rules for Wastewater Discharge
Management" in accordance with the " Law of the People's Republic of China on the Prevention and Control of Water Pollution","Integrated Wastewater Discharge Standards" (GB8978-1996), and "Wastewater quality standards for discharge to municipal sewers" (GB/T31962-2015), to implement water pollution prevention and control measures and standardize wastewater discharge management toensure compliance with regulations.
√ We require all manufacturing departments to treat wastewater generated during production processes and surface cleaning before it
can be discharged into the company's wastewater treatment center.
√ Wastewater containing oil from equipment cleaning and site cleaning must be collected, pretreated for oil removal, and then
processed in the wastewater treatment center, and must not be discharged at will or cause soil contaminated.
√ Wastewater from control rooms and laboratories should be treated in the wastewater treatment center, and if it contains hazardous
waste, it should be managed as hazardous waste and not discharged externally.
√ Domestic wastewater should be treated in three-stage septic tanks before being discharged. Rainwater during the initial stage should
be collected in rainwater collection tanks before being processed and discharged in the wastewater treatment center.We conduct monthly inspections of wastewater discharge indicators and engage professional third-party organizations for testing.During the reporting period, the wastewater from the tungsten smelting production base met the discharge standards.
In the rare earth mining operations in Longyan, we implement a zero-discharge policy for wastewater by treating domestic wastewater
and wastewater generated during mining processes together for recycling. We achieve this by establishing water treatment facilities andemploying a three-stage treatment process: chemical dosing at the front end, microbial degradation in the middle, and anti-seepagemeasures at the back end. Additionally, we use vegetation such as water plants for wastewater treatment. The treated wastewater meetssurface water quality standards for Class III water bodies.
Emission Management Measures
In Ninghua Xingluokeng, we have established an "Environmental Protection Management System" with clear provisions for wastewatermonitoring and treatment to ensure compliance with discharge standards:
√ All production wastewater is recycled for reuse.
√ During the rainy season, tailings pond wastewater is treated to meet Class III surface water standards before discharge.
√ All discharge outlets generating wastewater during industrial production and daily activities must undergo monitoring. Parameters
monitored include ?ow rate, pH, COD (Chemical Oxygen Demand), and suspended solids. The monitoring frequency for allwastewater discharge points should not be less than three times per month, and for discharge points included in environmentalassessments, it should not be less than ten times per month.
√ In the event of pollution incidents caused by wastewater, prompt investigation and monitoring should be conducted, and an
investigation and monitoring report should be submitted.Professional third-party inspections of wastewater discharge are conducted monthly.In Duchang, we have established the "Basic Norms for Environmental Protection," which clearly stipulate that wastewater dischargedfrom production processes must be e?ectively treated to meet discharge standards:
√ We conduct monthly online monitoring at the main wastewater discharge points, where parameters such as pH value, Chemical
Oxygen Demand, Ammonia Nitrogen, and ?ow rate are monitored. Additionally, quali?ed units are commissioned to test harmful
factors in the total wastewater discharge and leachate from the disposal site to ensure compliance with standards.
√ Key areas prone to rainwater and sewage mixing within the plant and damaged sections of sewage diversion structures are being
renovated to achieve sewage diversion.
√ We have installed drainage ditches in the plant area, mining areas, tailings ponds, and disposal sites. Furthermore, we have
implemented measures such as dams, sedimentation tanks, and back?ushing facilities at the disposal site, with all leachate being
pumped back to elevated water tanks for reuse in production.
In the Advanced Materials Production Stage:
In the mining phase:
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During the reporting period, thewastewater from the batterymaterial production base met thestandard for discharge. In 2020,our battery production base inXiamen Haijing purchased a 5-yeardischarge permit from the XiamenPollution Rights Trading Center,including 3.587 tons/year of CODand 0.3587 tons/year of ammonianitrogen, at a transaction price of10,000 RMB/ton·year for COD and10,000 RMB/ton·year for ammonianitrogen, with a total transactionprice of 197,285 RMB.
In the Cutting Tools Division, we direct the domestic wastewater from o?ces and workshops into septic tanks, which are regularlycleaned. After passing through the septic tanks, the domestic wastewater is discharged into the sewage treatment plant, where it istreated along with industrial wastewater before being discharged in compliance with standards. The wastewater from canteen washingis treated through an oil-water separator to remove solids and oil before being discharged into the city's sewage network. Productionwastewater from cleaning and coating processes is treated at the sewage treatment plant before being discharged into the city's sewagenetwork. Additionally, for cooling water from equipment such as reduction furnaces and carbon tube furnaces, we periodically dischargea portion of the cooling water to maintain the balance of salt content in the circulating water. This discharged water is considered ashot polluted water (i.e., water with a temperature higher than normal water) and does not contain wastewater pollutants, so it can bedischarged directly into the stormwater drainage network.In 2021, Haicang Golden Egret purchased a 5-year pollution discharge permit from the Xiamen Pollution Rights Center, with a chemicaloxygen demand of 0.0743 tons/year and ammonia nitrogen of 0.0075 tons/year.
In Deep Processing Stage:
Wastewater Treatment Process
WastewaterRegulationTank/Pool
Heat Exchanger
Slurry Agitation Tank
Ni/Co Hydroxide
Water FiltrationpH Adjustment SystemPlate and FrameFilter Press
Standard WaterDischarge
E?uent AmmoniaNitrogen ≤15mg/L
Steam Over 4 kg
Integrated Absorption-Condensation AmmoniaRecovery UnitAmmonia Stripping Tower
NaOH
At our rare earth smelting, separation, and material production base in Changting, we have established the "Environmental Protection
Management Regulations" to regulate wastewater discharge management. We have also set a target for a 60% water reuse rate. Since2020, we have purchased the Chemical Oxygen Demand (COD) emission rights for a period of 5 years from Fuzhou Jiuding New EraTechnology Co., Ltd..and Fujian Sanming Steel (GROUP) Sanming Chemical Industrial Co., Ltd., with transaction quantities of 0.1862 tons/year and 0.2014 tons/year, respectively.
\
At our battery material production base, we have developed a series of environmental indicators for wastewater based on standards suchas "Discharge standard of water pollutants for Xiamen" (DB35/322-2018) and "Integrated Wastewater Discharge Standards" (GB8978-1996). We require our company's testing center to conduct weekly monitoring of pH, ammonia nitrogen, heavy metals (nickel, cobalt,manganese, etc.) in wastewater discharge. We have established a water quality online monitoring system that complies with nationalstandards and has been accepted by government departments to monitor the real-time levels of ammonia nitrogen and ChemicalOxygen Demand (COD) in wastewater discharge. Additionally, we hire quali?ed environmental monitoring agencies annually to conductenvironmental monitoring of the company's wastewater discharge.Our battery material production base has installed two wastewater treatment systems, each dedicated to treating wastewater fromthe production of cobalt trioxide and precursor for ternary materials, respectively. The two wastewater treatment systems have similarprocesses, with treatment capacities of 1,000m3/d and 850m3/d, respectively. The workshop wastewater enters the distillation tower via aheat exchanger from the regulating tank to increase the temperature. Within the distillation tower, gas-liquid separation is completed, andthe ammonia gas is recovered to form ammonia water. The bottom liquid from the tower undergoes ?ltration through plate and frame?lters, precise ?lters, and other equipment. Finally, after pH adjustment through an acid-base regulation system, the wastewater meetsthe discharge standards.
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The waste disposal of our environmentally regulated key units in 2023
Waste ManagementWe adhere to the "Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Solid Waste,""General Industrial Solid Waste Storage and Disposal Site Pollution Control Standards," "Hazardous Waste Storage Pollution ControlStandards," and other relevant laws and regulations. Our aim is to reduce the generation of various types of waste, enhance thereuse of waste, and minimize the adverse impact on the environment and personnel during the storage and handling of hazardouswaste.
Xiamen Tungsten Co., Ltd. (Haicang
Subsidiary)
Waste includes 5,851.52 tons of smelting slag and 57.7742 tons of hazardous waste.Smelting slag is entrusted to third parties for comprehensive utilization, and hazardouswaste is handled by quali?ed entities.Chengdu Dingtai New Material Co., Ltd.
In 2023, a total of 0.3 tons of hazardous waste was transferred; 80.599 tons of generalindustrial waste were produced.Chengdu Hongbo Industrial Co., Ltd.
Waste includes general industrial waste such as waste furnace bricks and scrap iron,totaling 86.44 tons; the total amount of hazardous waste transferred for disposal was 33.647tons.Fujian Changting Golden Dragon Rare-earth Co., Ltd. (Plant of New Industrial
District)
Waste includes 128.91 tons of acid leaching slag and 3,435.4 tons of neutralization slag, witha hazardous waste generation of 419.58 tons. Acid leaching slag and neutralization slag areentrusted to third-party quali?ed entities for disposal, and hazardous waste is handled byquali?ed units.Fujian Changting Golden Dragon Rare-earth Co., Ltd. (Rare Earth Industrial Park
Factory)
The generation of neutralization slag was 25.883 tons, and hazardous waste was 307.78tons, all entrusted to quali?ed entities for disposal.Fujian Xinlu Tungsten Industry Co., Ltd.
Waste includes 34,866.692 tons of general solid waste and 7.8945 tons of hazardouswaste. Both smelting slag and other general solid waste are entrusted to third parties forprocessing, and hazardous waste is handled by quali?ed units.
Waste Disposal
Ganzhou Highpower Technology Co., Ltd.Waste includes 28.98 tons of hazardous waste, all disposed of by quali?ed third parties.Jiangxi Duchang Jinding Tungsten Co., Ltd.
Waste includes 3,380,666.543 tons of slag, including 1,737,660.196 tons of waste rockand 1,643,006.348 tons of tailings; 50.62 tons of industrial waste; the total amount ofhazardous waste transferred for disposal was 26.868 tons. The annual recycled amountof slag used for manufactured sand was 539,437.7066 tons.Malipo Haiyu Tungsten (H.C) Co., Ltd.
Waste includes 15,063.64 tons of smelting slag, 13,087.22 tons of lime slag, and 2,770.34tons of coal slag; the total amount of hazardous waste transferred for disposal was 0.64tons. Industrial waste recycling was 8.748 tons, external transport of industrial waste was
14.7 tons, totaling 30,944.648 tons. Tungsten slag, lime slag, and coal slag are processed
by third-party companies, and hazardous waste is handled by quali?ed units.Ninghua Xingluokeng Tungsten Mining Co.,
Ltd.
Waste includes 6,907,600 tons of waste rock, 1,707,292.7399 tons of tailings, totaling
8,614,892.7399 tons of slag; the total amount of hazardous waste transferred for disposal
was 2.7 tons. The total amount of slag recycled in 2023 was 1,162,063.2245 tons.Xiamen Tungsten (H.C) Co., Ltd.
Waste includes general industrial solid waste and hazardous waste; general industrial
solid waste consists of smelting slag, totaling 761.23 tons; the total amount of hazardous
waste transferred for disposal was 22.8999 tons. General industrial solid waste is
entrusted to third parties for comprehensive utilization, and hazardous waste is handled
by quali?ed entities.XTC New Energy Materials (Xiamen) Co., Ltd.
(Haicang Base)
Waste includes industrial waste such as used crucibles and ton bags, totaling 1,764.9870
tons; the total amount of hazardous waste transferred for disposal was 19.5907 tons.
General industrial waste is recycled by third parties, and hazardous waste is handled by
quali?ed units.Xiamen Golden Egret Special Alloy Co., Ltd.
(Tongan Factory)
General industrial solid waste such as waste wood and scrap iron (SW99) was disposed
of at 98.81 tons, and hazardous waste at 70.285 tons, all handled by quali?ed entities.Chengdu Hongbo Molybdenum Co., Ltd.Hazardous waste disposed of amounted to 129.79 tons, all handled by quali?ed entities.
Company NameCompany Performance
Company NameCompany Performance
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We comply with the laws, regulations, and policies related to general waste discharge in the countries and regions where we operate,take measures to reduce the amount of general waste generated during production activities, and strengthen the reuse of general wasteto lessen its environmental impact.
The general waste generated by mining activities mainly includes tailings and waste rock. Through technological innovation, wecontinually enhance the recycling of waste to reduce its environmental impact.For general wastes like tailings, we have established a manufactured sand workshop at the end of the ore dressing process, where coarse-grained tail sand is screened and sold as manufactured sand, with the remaining tail sand stored in the tailings dam. We continuallyimprove waste rock separation recovery technology and waste enrichment technology in the ore processing system. During the oredressing plant screening process, waste enrichment is carried out, and the discarded waste rock is sold as building aggregate. Theremainder is stored at the waste dump, reducing the emission of waste rock and improving the comprehensive utilization rate of mineralresources. Other general wastes, such as domestic garbage, are handled by third-party professional disposal units.
General Waste
We follow the "Environmental Protection Law of the People’s Republic of China," "Law of the People's Republic of China on Preventionand Control of Environmental Pollution by Solid Waste," and other laws and regulations to formulate general waste managementmeasures, focusing on reducing and resourcefully managing general waste.At the rare earth smelting and separation, and materials production base, we require departments to sort and place production workshopwaste into designated bins or locations. For recyclable waste, it is recycled promptly. The Environmental and Safety ManagementDepartment is responsible for supervising the management of all waste disposal sites, urging departments to sort and store wasteproperly and handle domestic waste regularly. Each month, the classi?cation and storage status of each solid waste storage point areinspected. The domestic waste generated by base operations is processed by sanitation companies, and valuable solid waste such as irondrums and scrap iron is auctioned o?. Low-value materials such as cardboard boxes and wooden boxes are used to o?set transportationcosts and are recycled by waste transport personnel.At the battery materials production base, the general waste generated during production operations primarily consists of industrialwaste, including spent crucibles, used ton bags, paper, and pallets. We undertake the following management measures to reduce generalwaste discharge:
√ Maintain a management ledger to accurately record the type, quantity, ?ow, storage, use, and disposal of general waste, ensuring
that general waste is traceable and searchable.
√ Entrust professional third parties to transport, utilize, and dispose of general waste, with contracts legally signed that specify
pollution control requirements.
√ Maintain general waste storage facilities within the plant area, adopting measures to prevent dispersion, loss, and leakage, or other
measures to prevent environmental pollution.
In the Advanced Materials Production Stage:
In the mining phase:
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We have established various systems such as the "Hazardous Waste Environmental Management System," "Hazardous WasteManagement System," "Hazardous Waste Storage Site Management Regulations," "Hazardous Waste Warehouse Management System,"and "Hazardous Waste Pollution Prevention Responsibility System." These systems manage hazardous waste according to the principlesof "reduction, resource recovery, and harmlessness." The company has set up a dedicated hazardous waste warehouse managed byappointed personnel and ultimately disposes of the waste through a quali?ed third-party agency.
Hazardous Waste Management
We comply with the laws, regulations, and policies related to hazardous waste discharge in the countries and regions where we
operate, take measures to reduce the generation of hazardous waste in production activities, and mitigate the adverse impacts on theenvironment and personnel during the storage and processing of hazardous waste.
We have established the "Hazardous Waste Management Methods" inaccordance with the "Environmental Protection Law of the People’sRepublic of China," the "Law of the People's Republic of China onPrevention and Control of Environmental Pollution by Solid Waste," andthe "Directory of National Hazardous Wastes," to manage hazardous waste.During the tungsten smelting process, the hazardous waste generatedmainly includes waste resin, waste mineral oil, wastewater sludge, paintwaste, chemical reagent bottles, waste acid, waste alkali, etc. We striveto minimize the generation of hazardous waste and have established ahazardous waste management ledger. The Environmental and SafetyManagement Department reports monthly on the generation time, type,quantity, and disposal of hazardous waste to enhance its management.Apart from comprehensively recycling waste acids, waste alkalis, andcobalt-nickel-containing wastewater sludge, other types of hazardouswaste are temporarily stored in the hazardous waste warehouse at theproduction base and are eventually handled by a quali?ed third-partyorganization.At the rare earth smelting and separation and materials productionbase, we strictly implement internal rules such as the "EnvironmentalProtection Management Regulations" and "Hazardous Waste ManagementRegulations." We lawfully and compliantly dispose of hazardous waste,establish a hazardous waste pollution prevention leadership team, andoversee waste discharge management. During the reporting period,the rare earth smelting and separation and materials production baseactively organized standardized training on hazardous waste to enhanceemployees' awareness of environmental protection. The construction ofhazardous waste storage facilities in the rare earth park was completedand put into standardized use, ensuring safe storage and handling ofhazardous waste. We also completed the reduction work for extractingorganic solvents, e?ectively reducing the negative environmental impact.
We follow national standards such as "Standard for pollution control on the non-hazardous industrial solid waste storage and land?ll,"and production bases have accordingly established "Waste Management Methods," "Waste Management Systems," and "Solid WasteDisposal Management Regulations." According to the principles of "reduction, resource utilization, and harmlessness," we manage ourgeneral waste to ensure compliance with relevant laws and regulations.The general solid waste generated during the deep processing stage mainly includes dust collected by dust removal devices, dustcollected by sedimentation tanks, non-conforming products, waste graphite products, and domestic waste. We recycle dust collected bydust removal devices, dust collected by sedimentation tanks, non-conforming products, para?n recovered during the sintering process,waste blanks, and residues back into production; waste graphite products are directly recycled by the manufacturer; grinding wastematerials are sold to tungsten smelting plants for recycling; and domestic waste is handled by the sanitation department.
In the Advanced Materials Production Stage:
In the mining phase:
In Deep Processing Stage:
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We follow national standards such as the "Hazardous WasteStorage Pollution Control Standards," and production bases haveaccordingly developed "Hazardous Solid Waste ManagementSystem," "Hazardous Waste Management System," and "HazardousWaste Chemicals Management System," managing the company'shazardous waste according to the principles of "reduction, resourcerecovery, and harmlessness," ensuring compliance with relevantlaws and regulations. The hazardous waste generated during thedeep processing stage mainly includes waste mineral oil, wasteorganic solvents, etc., all of which are uniformly disposed of by aquali?ed third-party organization.
At the battery materials production base, we have developed and implemented internalmanagement systems such as the "Hazardous Waste Management System," "HazardousWaste Management Implementation Rules," and "Company Hazardous Waste and WasteClassi?cation and Disposal Management Detailed Rules" to strengthen waste management.The company includes hazardous waste management in the performance assessmentsof relevant managers and departments, with the Safety and Environmental ProtectionManagement Department responsible for conducting assessments.The hazardous waste generated during production operations at the battery materialsproduction base mainly includes waste activated carbon, waste mineral oil, waste organicsolvents, paint sludge, and laboratory waste. We have developed systems such as the"Hazardous Waste Management Implementation Rules," regularly updating the hazardouswaste list. We maintain a hazardous waste storage warehouse, collecting and storinghazardous waste by category, with isolation facilities and measures to prevent wind, sun,rain, seepage, and ?re within the storage site. Cameras are installed inside the hazardouswaste warehouse for real-time monitoring to ensure safe and reliable storage of hazardouswaste. Regular hazardous waste management training is organized. The Safety andEnvironmental Protection Department, as the supervisory management department forhazardous waste, is responsible for regularly entrusting the disposal of hazardous waste to aquali?ed third-party professional organization. Additionally, the management of hazardouswaste is included in the performance assessments of relevant managers and departments,executed by the Safety and Environmental Protection Management Department.Hazardous Waste Reduction Measures at the Battery Materials Production Base:
√ Use clean energy and materials to reduce the production of harmful substances.
√ Adopt advanced industry production equipment to reduce energy consumption and
hazardous waste generation, such as using stainless steel equipment to reduce theamount of maintenance paint used and increasing the recycling times of equipmentlubricating oil to reduce the per product consumption of mineral oil.
In Deep Processing Stage:
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Tailings Dam ManagementA tailings dam is a high potential energy hazard formed by the accumulation of tailings. A breach of a tailings dam can have catastrophicconsequences for the communities, environment, infrastructure, and economy of the area. We fully recognize the importance of tailingsdam management. In accordance with laws and regulations such as the "People's Republic of China Environmental Protection Law,""Safety Technical Regulations for Tailings Dams," "Safety Standardization Guidelines for Metal and Non-Metal Mines," and "SafetyStandardization Implementation Guide for Tailings Dams," we have established internal management systems such as the "Tailings DamSafety Management System," "Ninghua Xingluokeng Tungsten Mine Co., Ltd. Safety Standardization Tailings Dam System ManagementManual," "Tailings Dam Environmental Management System," and "Jiangxi Duchang Jinding Tungsten Co., Ltd. Hushan Tailings Dam WorkSafety Accident Emergency Plan." These systems cover the entire lifecycle of the tailings dam, including design, construction, operation,maintenance, monitoring, and management post-closure, setting detailed normative requirements to prevent and minimize risks to thesurrounding communities and environment as much as possible. Our mine in Duchang has received the "Work Safety StandardizationCerti?cate - Tailings Dam" issued by the Jiangxi Provincial Work Safety Committee.
Intelligent Management
We have established a comprehensive, e?cient, sensitive, andreliable work safety network monitoring system that utilizesadvanced network technology, measurement and controltechnology, and modern communication technology for onlinesurveillance, monitoring, and equipment status checks of thetailings dam. The tailings dam safety automation monitoringsystem consists of an on-site monitoring and early warningsystem and a subsequent data analysis, publication, and sharingsystem. Through the intelligent monitoring system, we achieveonline monitoring of the tailings dam's initial dam surfacedisplacement, internal vertical displacement, saturation line,water level in the dam, dry beach, rainfall, pH, water quality, andimages of the dam area.Hazard IdentificationIn response to potential safety hazards at the tailings dam,we conduct daily inspections and observations, ?ood safetychecks, dam safety checks, and area safety checks; personnel areassigned to 24-hour shifts to inspect and record daily; workshopsconduct weekly safety inspections of the dam area, ?ood controlstructures, online monitoring systems, emergency supplies, andcommunications; monthly safety and environmental hazardinspections are organized at the departmental and companylevels for the tailings dam; and special inspections are organizedbefore the ?ood season with leadership on 24-hour duty to ensureprompt and e?ective issue resolution. For identi?ed issues,corrective and preventive measures are promptly proposed andimplemented to ensure the safe operation of the tailings dam.
Emergency ManagementWe have established a comprehensive emergency managementmechanism, improved special emergency plans for dam breachesand other accidents, environmental emergency plans, and on-sitehandling schemes. Site-speci?c emergency drills are conductedas per regulations, followed by evaluations, summaries, andcontinuous improvements, integrating emergency managementinto the annual key tasks with implemented assessments.Closure ManagementFor tailings dams that are approaching closure, we will carryout closure remediation design according to relevant laws andregulations and the requirements of the closure safety evaluationreport, ensuring that the ?ood control capacity and stability ofthe tailings dam meet national legal and regulatory requirementsand maintain long-term safety and stability post-closure.For the currently closed Qipanshan tailings dam, it is includedin our ?ood prevention inspections and company-level monthlysafety inspections, with ongoing stability dynamic monitoringand dynamic tracking of the restoration e?ects on key miningplatforms, mine slopes, and tailings dams, ensuring long-termsafety and stability after closure. For the Wangtongkeng tailingsdam at the Xingluokeng Tungsten Mine, which is approachingthe designed total dam height, the company has commissioneda quali?ed entity to carry out the closure design and will strictlycomply with national regulations and design requirements,ensuring proper closure construction and acceptance work.
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Biodiversity ConservationWe consistently prioritize biodiversity conservation as a crucial component of our environmental management, strictly adhere to lawsand regulations such as the "Regulations of the People’s Republic of China on Nature Reserves," "Forest Law of the People’s Republicof China," "Regulations on the Protection of Basic Farmland," " Wildlife Protection Law of the People’s Republic of China," "Regulationsof the People’s Republic of China on the Protection of Wild Plants," and the "Kunming-Montreal Global Biodiversity Framework."Embracing the philosophy of "developing within protection and protecting through development," we integrate ecological restorationinto our business development processes. We undertake greening e?orts in areas impacted by mining activities to reduce soil erosion anddust emissions, thereby minimizing the impact of mining activities on the surrounding environment and creating a suitable ecologicalenvironment for local biodiversity conservation. Our tungsten mines in Ninghua Xingluokeng and Duchang have been included in thenational list of green mines.
At Ninghua Xingluokeng, we rationally exploit mineral
resources based on the "Ninghua Xingluokeng TungstenMine Co., Ltd. Xingluokeng Tungsten Mine GeologicalEnvironment Protection and Ecological RehabilitationRestoration Plan Revision" prepared by a third party,aiming for harmonious co-development between themine and the local ecological environment. We divide thegeological environment rehabilitation work of the mineinto three phases according to the mining developmentand utilization plan and actual operating conditions:
the current status management period, concurrentproduction and management period, and the mineclosure management period, orderly advancing theimplementation of each phase’s work.Current State Management Phase: The main objective is to address the existinggeological and environmental issues in miningareas by implementing measuresto protect the geological and environmental aspects during miningconstruction activities,focusing on the areas a?ected by current miningactivities. The measures include ?atting the steep slopes and reducing theloadin open-pit mining areas, improving drainage systems in waste soil disposalareas, planting trees and grass on both sides ofthe main haul roads for wasterock transportation, and setting up safety warning signs and fences along ruralroads within thesoil disposal site area.Integrated Production and Management Phase: The approach of concurrentproduction and remediation is adopted for miningoperations, with phased andtimed restoration and remediation projects based on the actual progress ofmining.Completedrestoration and remediation projects are monitored.maintained, and managed. Real-time improvements are made basedon theactual mining conditions to protect the geological environment and preventand control geological hazards during themining process. Slope collapses andlandslides that may occur are remediated concurrently with production toreduce soilerosion, ensuring harmonious development of mining productionand envronmental protection.
Mine Closure and Restoration Phase: Within one year after the expiration of themining license, comprehensive and thoroughmeasures should be taken toremediate and restore the geological environment of the closed mine. The aim isto signi?cantlyimprove and reconstruct the geological environment of the entiremining area, addressing the environmental issues caused bymining activities.
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For areas prone to soil erosion such as open pits, spoil areas, and tailings dams, we implement multiple protective measuresincluding enhanced greening, setting up runoff interception facilities, and implementing sedimentation treatments. We also adopta multi-tiered waste disposal approach to minimize the operating surface and maximize the re-greening area, creating a greenoperation process of "topsoil storage—waste rock compaction—topsoil coverage—land leveling—re-vegetation and reclamation,"ensuring the maximum protection of the ecological environment while mining.In 2023, we actively advanced ecological restoration efforts at Ninghua Xingluokeng, completing approximately 88,278.6㎡ of re-greening, including about 57,000㎡ in the spoil area, 17,000㎡ in the mining area, and 14,278.6㎡ in the tailings dam.
about 88,278.6
㎡of re-greeningabout57,000
㎡of re-greening in the spoil areaabout17,000
㎡of re-greening in the mining areaabout 14,278.6
㎡of re-greening in the tailings dam
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√ Through the tailings dam safety automated monitoring system, we conduct online monitoring of the initial dam’s surface
displacement, internal displacement (vertical), saturation line, water level of the tailings dam, dry beach, rainfall, pH, water quality, andimages of the dam area, providing scienti?c data for the safe management and decision-making regarding the tailings dam.In the development of the Longyan rare earth mine, we formulate and strictly follow related systems such as the "Ecological Restorationand Governance Plan" and a "Land Reclamation Plan," and establish a dedicated ecological restoration management fund to speci?callysupport environmental conservation e?orts. Before mining, we conduct a comprehensive environmental assessment and implement the"Environmental Protection Plan for the Recovery Project of Overlying Rare Earth Resources in Hetian Jinjiang Industrial Park, ChangtingCounty, Fujian Province," ensuring coordinated development of project construction and environmental protection. Moreover, wecontinue to strengthen the environmental management of the leaching project, striving to minimize the impact of mine construction andproduction activities on the surrounding environment, achieving a harmonious coexistence between mine development and ecologicalprotection.We utilize an optimized "in-situ leaching process" for rare earth mining, relying on in-house developed 3D geological visualization softwareto prepare mining design schemes. In the mining area, we drill injection holes and collection channels/diversion holes at speci?c intervals,applying precise leaching techniques to inject accurate doses of leaching agents. The leaching agent undergoes ion exchange reactionswith rare earth ions to form rare earth mother liquor, which under the in?uence of gravity, percolates and collects at a collection pool atthe base of the hill. After rare earth extraction from the mother liquor in the collection pool, the resultant clear liquid is reconstituted intoa leaching solution and pumped back to the mine for recycling. This mining method improves the recovery rate of rare earth resourcesand does not require mountain excavation, avoiding damage to the mine's surface vegetation and the original topsoil of the rare earthmine, with no external discharge throughout the process.In Duchang, from the initial stages of mine construction, we adopted integrated mining techniques of stripping, spoil disposal, andre-greening, adhering to the step-by-step re-greening concept of "mining alongside re-greening." We implement restoration andmanagement measures tailored to the local conditions for the spoil area, open pits, mine-speci?c roads, mining industrial sites, andHushan Tailings Dam, and carry out re-greening management for the already closed Qipanshan Tailings Dam according to environmentalrestoration requirements, achieving a 100% greening rate of the mine and signi?cant ecological restoration e?ects.We actively implement mine environmental management and monitoring measures to minimize the potential impact of businessoperations on the ecological environment:
√ We establish and implement an environmental monitoring mechanism to dynamically monitor surface deformation and
geological hazards in areas such as tailings dams, spoil areas, and mining areas, ensuring timely detection and response to potentialenvironmental risks. For the already closed Qipanshan Tailings Dam, we enhance its stability dynamic monitoring, include it in our ?oodprevention inspections and company-level monthly safety inspections, and dynamically track the restoration and management e?ects onkey mining platforms, mine slopes, and tailings dams.
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We have implemented waste disposal projects at Ninghua Xingluokeng, discarding ores that do not meet the grade requirements to
reduce energy consumption during the ore dressing process. The discarded ore, after crushing, is sold as construction material. Sandthat does not meet production standards is also sold as construction sand, achieving resource recycling while signi?cantly enhancingthe company’s economic bene?ts. During the reporting period, we invested in building feldspar and quartz recovery projects, which notonly improve resource recovery rates but also help extend the lifespan of tailings dams and reduce their operational costs.We are actively advancing a comprehensive utilization project of mineral resources in our Duchang mine, which includes key
components such as the separation and recovery of ore-containing waste rock and enrichment through the waste disposal system inthe crushing plant. The project is constructed in two phases; the ?rst phase is the waste enrichment engineering in the crushing system,processing 1.31 million tons/year and producing 450,000 tons/year of construction aggregate; the second phase is the ore-containingwaste rock separation and recovery engineering, processing 1.65 million tons/year of waste rock and producing 670,000 tons/year ofconstruction aggregate. Once implemented, the project is expected to increase the annual output of tungsten metal by 400 tons andmolybdenum metal by 80 tons, signi?cantly enhancing the comprehensive recovery e?ciency of valuable elements in mineral resourcesand achieving resource recycling.
Resource Utilizationand Circular Economy
We have developed a comprehensive industrial chainthat encompasses the entire spectrum from front-end tungsten mining operations, mid-end tungstenand molybdenum smelting and powder production,to back-end high-value deep processing applicationssuch as hard alloys, tungsten and molybdenum wireproducts, cutting tools, and mining engineering tools.We have further optimized the ore dressing processin our existing mines by adding waste disposal andnon-metallic mineral sorting processes, reducingore dressing consumption, and enhancing the levelof comprehensive resource utilization. By improvingmine efficiency and promoting green development,we vigorously advance resource recycling andutilization, fully leveraging the advantages ofhydrometallurgical technology in tungsten, rareearth, and battery materials sectors, enhancingresource recycling, and supporting the developmentof the circular economy.
Actively carry out waste disposal projects to enhanceresource recycling and reduce tailings emissions.Gradually increase the proportion of recycled materials
used in the production process.Improve the recycling rate of packaging materials.
2023 Resource Recycling Management Goals
In the mining phase:
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also conserving raw materials and reducing pollution issues associated with raw material production, thereby increasing materialutilization.
√ For general industrial solid waste such as iron-containing impurities, waste ?lter cloths, and cleaned ton bags, they are collected
and handed over to a material company for recycling, with transfers occurring 1-3 times per month. It has been calculated that eachton bag can be reused ?ve times, with ton bags used in the process being recycled 30 times and those used in iron calcination beingrecycled 10 times.
√ Collaborate with a third-party company to launch a leased pallet project, where plastic pallets are recycled, cleaned, and reused,
achieving circular use along the entire supply chain.
In the Cutting Tools Division, we have implemented the following measures to achieve resource recycling:
√ Recycle waste kraft paper, waste woven bags, waste plastic bags, scrap iron, waste wood, and waste foam
padding to utilize resources e?ectively.
√ Replace foam ?lling in wooden boxes with in?atable gourds for packaging.
√ Promote the use of automatic packaging boxes, e?ectively reducing the use of packaging materials.
√ Collect tungsten-containing dust (mud) from dust collectors and sedimentation tanks, non-conforming
products, waste blanks, and remnants for reuse in production.
√ Waste graphite products are directly recycled by the manufacturer.
√ Grinding waste is sold to tungsten smelting plants for recycling processing.
At the Haicang tungsten smelting production base, based on the characteristics of materials at di?erent stages, we have developed astaged separation technology and pioneered a high-energy, high-rate precipitation technology for secondary tungstate salts, achievinge?cient recovery of molybdenum resources co-produced in tungsten hydrometallurgy. From January to September 2023, the Haicangbase recovered 150 tons of molybdenum metal, contributing a pro?t of 65 million RMB.At the Changting rare earth smelting, separation, and materials production base, we have implemented the following measures to achieveresource recycling:
√ Invested in constructing a project for recycling 15,000 tons of rare earth waste per year (Phase I) to enhance resource recovery
efficiency.
√ Directly recycle and reuse materials such as wind turbine gaskets and Mont pads, and replace traditional injection-molded
turnover boxes and tube packaging materials with recycled packaging, significantly reducing resource consumption whilegreatly enhancing resource utilization efficiency.
√ Convert the processing of rare earth permanent magnetic material solid waste into by-products compliant with "Recyclable
manufacturing scraps of neodymium iron boron" GB/T 23588-2020 standard (including dry powder, magnetic sludge, and chunkmaterials) for sale, no longer managing it as solid waste. With this initiative, against the backdrop of the company's annualproduction of nearly 7,600 tons of magnetic materials, we expect to reduce solid waste production by about 4,600 tons per year,with magnetic sludge production decreasing by about 1,927 tons and achieving a recycling rate of about 25.36%.At the battery material production base, we have implemented the following measures to achieve resource recycling:
√ Gradually increase the proportion of recycled materials in the raw materials for lithium cobaltate products during production. During
the reporting period, recycled materials accounted for about 10% of raw materials. We have set management targets for the contentof recycled materials used in production, align with sustainable development needs.
√ Recycle defective products produced during the precursor production process, extracting relevant reusable metal resources and
processing them into primary raw materials.Install dust collectors in workshops to collect material dust and reuse it.
√ At the Ningde production base, we process the iron waste generated during the production of ternary materials through a wet
iron removal process to eliminate magnetic impurities, and then through three cycles of sintering and mixing, the iron waste is
recycled and used to produce di?erent types of products. The recycling of iron waste solves the solid waste disposal issue while
In the Advanced Materials Production Stage:
In Deep Processing Stage:
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We have long been committed to the research and development of recycling technologies for regenerated tungsten raw materials andhigh-value metals such as cobalt, nickel, and rare earths. We have independently developed globally leading low-energy, low-emissiongreen clean recycling technologies for tungsten, short process and low-energy recycling technologies for waste batteries, and wastewaterzero discharge technologies. We have established three major recycling bases in South Korea, Xiamen, and Longyan and has introducedthe world's leading automated production lines to recycle precious metal resources such as tungsten, cobalt, nickel, and rare earths. Thispromotes the rational use of primary mineral resources and drives the high-quality, sustainable development of the tungsten, new energy,and rare earth industries.In the cascading utilization stage, through processes such as recycling of used battery packs, full pack charge-discharge testing andevaluation, and classi?cation of new energy battery packs, depending on the quality of the battery packs, they are utilized in energystorage products, backup power products, low-speed vehicle products, solar street lights, and other power products.In the resource regeneration stage, we possess a comprehensive production line for disassembling, discharging, pyrolyzing, crushingand separating, leaching, extracting and separating, and evaporating and crystallizing used power batteries, with an annual processingcapacity of 10,000 tons of used batteries, battery waste, cathode and anode waste, and nickel-cobalt waste.
GANPOWER recycles wastewater throughan MVR system and produces salt products,achieving resource recycling of productionwastewater. Additionally, GANPOWERemphasizes the recycling of packagingmaterials, actively practicing the conceptof the circular economy by recycling plasticpallets, ton bags, ton barrels, and bypackaging and selling aluminum foil to reducematerial usage.
Resource RecyclingHighlight |
Highlight |
In the production of pure tungsten powder through hydrogen reduction of tungstencompounds, a large amount of pure hydrogen is required for the reduction reactionat temperatures above 800°C. To fully utilize hydrogen energy and reduce severeenergy waste, Xiamen Penglu recycles excess hydrogen, which contains trace waterand is at temperatures below 200°C after the reaction. The hydrogen consumedduring the reduction process is supplemented by decanting bottled hydrogen.
Hydrogen Recycling
HydrogenPurification UnitReduction Furnace
Leaching SeparationSystem
Roots BlowerBuffer Tank
Buffer TankHydrogen Filling AfterPressure Reduction
氢气
In the Secondary Resource Utilization Stage:
Recycling of used battery
Developing products
for cascaded
utilization
Pre-treatment + wetprocessing regeneration
Battery-grade cobaltnickel salt products
Battery packBattery cellPositive electrode
materialPrecursor
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Social
Innovation-Driven, Suppliers, and CustomersRural Revitalization and Public ServicePeople
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixInnovation-Driven, Suppliers, and Customers Rural Revitalization and Public Service People
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At XTC, we adhere to the development policy of " advance steadily,endeavor to enhance the market share, and focus on long-term interests."We actively align ourselves with national strategies and market demands,ensuring su?cient R&D investment and a comprehensive R&D framework.Together with industry partners, we strive to build a responsible supplychain, providing top-notch products and services to global customers.Guided by business growth and value creation, we establish a fair andimpartial talent evaluation system, aiming to make XTC a platform fortalent aggregation. We are committed to the common development of thecommunity, giving back to society in various ways. We are committed tobecoming a respected world-class enterprise that enables employee torealize personal value, a place for customer to find solutions, a place forshareholder to invest in, and also a place for society to bene?t from.
Innovation-Driven, Suppliers,and Customers
Reach 100% completion rate of key R&D projects at the enterprise level and internalcommissioned R&D projects
File over 200 new patent applications throughout the year
Continuously improve supply chain management systems, strengthening ESG assessments ofsuppliers
Continuously conduct mineral due diligence to ensure there are no responsible mineral risksin the supply chain
0 information security breaches or infringement of customer privacy incidents throughout theyear
0 violations related to health and safety impacts of products and services
Innovation-Driven, Suppliers, and Customers Performance Targets in 2023
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Innovation-Driven
Innovation-driven development is the core strategy of XTC in enhancing our advantages, creatingglobal in?uence, and competitiveness in the process of achieving sustainable development. We takeindependent innovation as the theme, market demand as the technological orientation, and ensuresu?cient R&D investment and a comprehensive R&D framework as the guarantee. By doing so, weaim to build a world-class benchmark enterprise, committed to transforming into a platform fortalent aggregation, technological innovation, and industrial development.Innovation System of Research and
DevelopmentWe take the XTC Research Center as the core, with various subsidiary-level and division-levelresearch institutes as important components. Actively aligning with national strategies and marketdemands, we form close alliances with industry-leading enterprises, research institutes, andmajor universities. We establish joint laboratories and off-campus training bases, promote closecollaboration in "production, study, research, and application," and take the lead in undertaking keynational research and development projects, national science and technology major projects, andtechnology innovation guidance projects, among others.We have set up China National R&D Center for Tungsten Technology, National and Local UnionR&D Center for High-end Energy Storage Material, and the Fujian Province Rare Earth Materials andApplications Engineering Research Center. By steadily advancing integrated product development(IPD) and international advanced manufacturing (IAM) system construction, we fully leverage therole of these three centers. Mainly focusing on research and development innovation in areas suchas hard alloys, refractory metals, optoelectronic crystalline materials, and Permanent magneticmaterials and their applications, we continuously enhance R&D innovation capabilities, providingstrong technical support for business development and industrial chain layout. Integrated Product Development
To build a market-oriented continuous product innovation capability, create an e?cient product
management team that satisfies customers, and establish a world-leading cutting-edgecore technology platform, we implement Integrated Product Development (IPD). Throughcontinuous innovation and upgrades in research and development processes, organizationalstructure, talent pool, and performance tools, we construct four major process systems:
demand management, planning management, technology development, and productdevelopment. We establish the overall R&D concept of "using funds as incentives and projectsas carriers" to achieve scienti?c and e?cient forward-looking R&D, transitioning from past"following" to present "keeping pace," and ultimately achieving "leading."The IPD system construction covers all divisions and subsidiaries engaged in R&D activities,achieving a combination of industry, academia, research, and application, and promotingcollaborative technological breakthroughs. During the reporting period, we continuouslydeepened the implementation of the IPD system, conducted IPD maturity assessments for 30implementing units, formulated improvement plans for the next year, and tracked progresscontinuously. Simultaneously, we compiled an "Case Collection for IPD Improvement Plan"to promote excellent practices within the group, launched a research project managementsystem, and comprehensively promoted it in the technical research center, effectivelyenhancing the quality and e?ciency of R&D project management. International Advanced Manufacturing
We are steadily advancing the International Advanced Manufacturing (IAM) project,committed to building a manufacturing system characterized by "scientific management,systematic approach; high-end products, stability; strong profitability, sustainability". Inthe five major professional areas of production process, production equipment, qualitymanagement, lean production site, and safety and environmental health, we focus on leanproduction and Six Sigma as the main means to comprehensively promote manufacturingcapacity building. During the reporting period, at the division level, standardized and leanimprovement projects were implemented to continuously improve manufacturing businessindicators and capabilities such as PQCD（Productive-Quality-Cost-Delivery）.At the company headquarter level, documents such as the "XTC IAM System Planning Guide"and the "XTC IAM Automation Implementation Guide" were prepared, and annual IAMplanning and review work were organized to provide guidance for various manufacturingunits to implement and promote IAM-related work.
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the technical management team in terms of management ideology, outcome standards, and delivery actions.To solidify the foundation of technical talent cultivation, we have constructed a technical talent cultivation capability packageand improved the mechanism and echelon construction of technical sequence talent. During the reporting period, for differentlevels of technical positions, we developed 35 capability packages for learning key tasks and further refined the technical sequenceeducation and training outline based on this. Additionally, we actively organized technical talent training. In 2023, we organizeda total of 5 sessions of training for IPD advocates and practitioners, training a total of 232 people. We also organized 3 sessionsof training for intermediate and junior research project managers, training a total of 123 certified research project managers.Furthermore, we organized training for outstanding product managers, with 9 pilot teams participating. Research and Development Innovation Incentives
To encourage research and development innovation and promote the continuous improvement of research and developmentinnovation capabilities, we have established a sound innovation incentive mechanism. We have formulated and continuouslyrefined the "Management Measures for Technological Innovation Awards", which include two types of technological innovationawards: scientific and technological innovation achievement awards and outstanding scientific and technological talentawards. These awards are granted to corresponding research and development personnel based on factors such as the degreeof technological innovation and economic benefits, following the evaluation process. Additionally, we have improved the "NewProduct Management Measures", which encouraged the transformation of research results. Upon successful transformation,up to 10% of the net income per year within three years will be allocated as innovation rewards for teams or individuals. Theimplementation of multi-faceted incentive measures has fully mobilized the initiative and creativity of technical personnel,providing continuous internal impetus for the development of research and development work.
Cooperative Research and Development Projects
We continue to advance in-depth cooperation with overseas research institutions and domestic superior research institutes,strengthening joint efforts in basic research, frontier technologies, and other areas. At the same time, we have deepenedcooperation with higher education institutions such as Xiamen University, Fuzhou University, Wuhan University of Technology,Beijing University of Technology, Guangdong University of Technology, Huaqiao University, and Xiamen University. During thereporting period, we conducted a total of 17 ongoing cross-sectional projects.
Technology Talent Cultivation
We place great importance on the cultivation of technical talent, continuously building a high-quality and high-level technicalworkforce. In terms of the technical research and development team, we leverage the advantages of a matrix organizationalstructure, using research institutes as platforms, and focus on cultivating the basic skills and abilities of research and developmentpersonnel. Using projects as carriers, we inspire innovation and breakthroughs among research and development personnel byfocusing on task objectives. As for the technical management team, we adhere to the positioning of the group and maintain a globalperspective. We train and develop management personnel with a problem-oriented approach, further enhancing the consistency of
"Development of Simulation Technology for Pressing and Sintering Process of Cutting Inserts"Highlight|
We collaborated with Huaqiao University on the project "Development of Simulation Technology for Pressing and SinteringProcess of Cutting Inserts", aiming to address the issue of size accuracy control of hard alloy indexable inserts:
√
We designed a simulation process model for insert pressing, studied the dynamic changes of powder in the mold cavity,and analyzed the in?uence of parameters such as structure, material, and process on alloy deformation.
√ Flow Field Control Technology for Rapid Cooling Sintering Process Based on Finite Element Simulation: We
designed a simulation model for the sintering process of hard alloy inserts, analyzed the distribution of flowfields during the cooling process, and dynamically analyzed the evolution process of the atmosphere field andtemperature field during insert sintering.This collaborative research and development project ultimately achieved the control e?ect of high positioning accuracy forhard alloy index-able inserts, e?ectively improving the cutting stability of hard alloy index-able insert products.
Innovation-Driven, Suppliers, and Customers Rural Revitalization and Public Service People
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Research and Development Innovation Achievements
TechnicalHonors
Patents
R&D InputScience and Technology
Professionals
Scientific Research
Platform
168 technical honorsat all levels
1,698 authorizedpatentsAnnual investmentaccounts for 4.08% ofthe revenue2，000 science andtechnology personnel
16 national-levelplatforms
2023 R&D input 1,608,570.8 thousand RMB
We established and obtained approval for 7 research platforms, including2 national-level research platforms (Postdoctoral Research Workstations),2 provincial-level research platforms (the Postdoctoral InnovationPractice Base, and the Rare Earth, Optoelectronic, and Crystal MaterialCollaborative Innovation Platform of Fuzhou-Xiamen-Quanzhou NationalIndependent Innovation Demonstration Zone), and 3 municipal-levelresearch platforms (Xiamen Tungsten Material Research and ApplicationInnovation Consortium, 2 Xiamen Enterprise Technology Centers). As ofthe end of this reporting period, we had a total of 55 research platforms,including 16 national-level platforms, 16 provincial-level platforms, 20municipal-level platforms, and 3 district-level platforms.During the reporting period, we undertook a total of 61 national-leveland internal key research and development projects within the group.Among them, we undertook a total of 34 projects, including major projectsfrom the Ministry of Industry and Information Technology, national keyresearch and development projects, provincial "Leading in the 'Battle?eld'by Announcing" projects, and major municipal science and technologyprojects. Additionally, we undertook 27 major projects at the group level. Usand our subsidiaries were honored with a total of 15 national-level scienceand technology awards, including 1 at the national level, 7 at the provincialand ministerial level, and 7 at the municipal level. They were also honoredwith 26 awards and qualifications such as the creation of world-classdemonstration enterprises with specialized and sophisticated "little giant"firms, national intellectual property superiority enterprise, and scienceand technology-oriented small and medium-sized enterprises. During thisperiod, we applied for 427 new patents, including 261invention patents, 146utility model patents, and 20 design patents. Additionally, 337 new patentswere granted, including 176 invention patents, 138 utility model patents,and 23 design patents. We also filed 65 new trademark applications, with28 trademarks registered. Furthermore, 9 new copyright registrations wereobtained. There were no incidents of litigation related to infringement ofothers' intellectual property rights. As of the end of the reporting period,we held a total of 1,698 patents, including 843 invention patents, 755 utilitymodel patents, and 100 design patents. They also held 688 registeredtrademarks and 118 copyright registrations.
National Enterprise Technology Center National Tungsten Materials Engineering Research CenterNational and Local Joint Engineering Research Center for High-end Energy Storage Materials 2 National Technology Innovation Demonstration Enterprise 5 Postdoctoral Research Workstations 2 National CNAS Laboratories National Specialized Innovation Space for Rare Metal Application International Cooperation and Exchange Base National Torch Xiamen Tungsten Materials Featured Industry Base
4 experts with special allowances from the State Council 12 professional level chief engineers 15 talents at the provincial and ministerial level355 individuals with doctoral degrees and 20 individuals with master's degrees
1,473 national patents 225 international patents 843 invention patents 755 utility model patents 100 design patents
17 national-level science and technology honors84 provincial and ministerial-level science and technology honors 67 municipal-level science and technology honors
Science andTechnologyOutput
ScientificResearchSupport andInvestment
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"The Doping Method of Powder for Magnetic Control Coils"Project
24th China Patent Excellence Award"The Key Technology and Industrialization of High-Performance Hard Alloy Top Hammer for Super-hard MaterialSynthesis" Project
2023 First Prize Henan Province Machinery Industry Science and
Technology Award"Research and Industrialization of Diamond Coated Tools forMachining Carbon Fiber Reinforced Composites" Project
2021 Second Prize for Scientific and Technological Progress in
Fujian Province"The Key Preparation Technology and Application of High-Performance Tungsten-Molybdenum Products" Project
2022 Second Prize for Scientific and Technological Progress in
Fujian Province"Research and Industrialization of Key Technologies forPurification of 5N Grade Ultra-High Purity Lutetium Oxide"Project
2021 Third Prize for Scientific and Technological Progress in
Fujian Province"Key Technologies and Applications for Efficient and ReliableOperation of New Type Electric Vehicle Drive Motor Systems"Project
2021 Third Prize for Scientific and Technological Progress in
Fujian Province"Key Technologies and Applications of MicrobialPhotosynthetic Purification for Eutrophication Sewage" Project
2021 Third Prize for Scientific and Technological Progress in
Fujian Province"Development and Industrialization of High-StrengthToughness Cutting Tools for Precision Machining of AerospaceLight Alloy Components" Project
2022 Third Prize for Scientific and Technological Progress in
Fujian Province
Awards for Research Achievements in 2023
ProjectsProjectsAwardsAwards
"Development of Manufacturing Technology for ComplexStructural Components for High-Temperature End of Heavy-Duty Gas Turbines" Project
2022 First Prize for Scientific and Technological Progress inXiamen City"Development and Industrialization of Ultra-Precision OpticalMolds using Non-Bonded Phase Tungsten Carbide Hard Alloys"Collaborative Project
2023 First Prize for Scientific and Technological Progress inXiamen City" Key Technologies and Industrialization of ManufacturingHigh-Strength Silver Alloy Wire for Electrical DischargeMachining" Collaborative Project
2023 First Prize for Scientific and Technological Progress inXiamen City" A Multicomponent Composite Oxide Material and itsIndustrial Preparation Method" Project
The 9th Xiamen City Patent First Prize"Key Preparation Technology and Application of High-Performance Functional Tungsten-Molybdenum Products"Project
2022 Second Prize for Scientific and Technological Progress in
Xiamen City"Development and Industrialization of Rare Earth PermanentMagnetic Materials for Ultra-Efficient Variable Frequency AirConditioners" Project
2022 Second Prize for Scientific and Technological Progress in
Xiamen City"A Particle Size Gradient Cemented Carbide Prepared by LiquidPhase Infiltration and its Preparation Method" Project
The 9th Xiamen City Patent Third Prize
Innovation-Driven, Suppliers, and Customers Rural Revitalization and Public Service People
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We advocate and practice responsible sourcing principles,integrating the concept of sustainable development intosupply chain management. We have formulated andcontinuously improved the Supplier Code of Conduct, whichincludes requirements for suppliers in areas such as humanrights protection, business ethics, environmental protection,occupational health and safety, etc. We incorporate ESG-
related requirements into contracts or commitmentstatements signed with suppliers. Each affiliated enterpriseconducts targeted supplier lifecycle management, includingscreening, admission, supervision, evaluation, and withdrawal,according to its business reality and risk assessment, andresponsibly carries out procurement activities. Supplier Admission
We include corporate reputation, product quality, supply capacity, and service quality in the supplier admission criteria and requiresuppliers to provide corresponding qualification certificates. We convey our supplier management philosophy through signingcommitment letters and notification letters, requiring them to meet compliance requirements in areas such as business ethics,environmental protection, occupational safety and health, quality, and labor rights.At the tungsten smelting production base,we require suppliers to sign a "Integrity Agreement" and distribute an "Notification
Letter on Environmental and Occupational Health and Safety to Related Parties "before formally commencing procurementtransactions, ensuring that suppliers comply with the requirements of environmental protection, occupational health and safetysystems, and corresponding laws and regulations.At the tungsten and molybdenum wire production base, we pay attention to supplier's operational compliance,qualification certification, and business ethics through the completion of the "Supplier Basic Qualification CommitmentForm." Suppliers meeting the initial requirements must sign and commit to adhere to the terms of the "Integrity Pledge" and"Confidentiality Agreement" before establishing a cooperative relationship.At the cutting tool production base,we set up scoring indicators for supplier admission in areas such as quality management
systems, corporate social responsibility, design and development, supplier development and management, material control,production control, Measurement System Analysis (MSA), sales and customer service, safety/information/intellectual propertyrights, and hazardous substance process management. We require suppliers to provide verification materials such as energymanagement systems, product environmental protection, and energy-saving label and certificates and undergo necessary on-siteverification and sample testing for demand or technical aspects.
Responsible Sourcing
XTC
"2023 Top 500 Enterprises of China" jointly awarded by China EnterpriseConfederation and China Entrepreneur Association
National"2023 China Top 100 Leading Enterprises in Strategic Emerging Industries" jointlyawarded by China Enterprise Confederation and China Entrepreneur Association
NationalFujian Provincial "Benchmark Enterprise" for 2023 New Generation of IntegratedDevelopment Program of Information Technology and Manufacturing”
ProvincialXWXN
National Intellectual Property Superiority EnterpriseNationalFujian Provincial "Benchmark Enterprise" for 2023 New Generation of IntegratedDevelopment Program of Information Technology and Manufacturing
ProvincialGolden DragonRare-earth
2023 Demonstration Factory of Smart ManufacturingNationalEstablish a world-class, specialized, high-end and innovation-drivendemonstration enterprise
NationalNational Intellectual Property Superiority EnterpriseNationalChangting Zorr
National Specialized and Sophisticated "Little Giant" FirmNationalProvincial Specialized and Sophisticated "Little Giant" FirmProvincialXiamen GoldenEgret
National Intellectual Property Superiority EnterpriseNationalJiujiang GoldenEgret
National Specialized and Sophisticated "Little Giant" FirmNationalLuoyang GoldenEgret
National Specialized and Sophisticated "Little Giant" FirmNationalBasic ElectronicMaterials
Technology-oriented Small and Medium-sized EnterprisesNationalNinghuaXingluokeng
Fujian Provincial "Benchmark Enterprise" for 2023 New Generation of Integrated
Development Program of Information Technology and Manufacturing
Provincial
The Main R&D Innovation Honors and Quali?cations in 2023AccreditedEntity
Honor/Accreditation TitleLevel
Innovation-Driven, Suppliers, and Customers Rural Revitalization and Public Service People
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At the rare earth smelting, separation, and materials production base in Changting,we prioritize selecting environmentallyfriendly suppliers who can provide eco-friendly products and services, practice energy conservation and emission reduction, andpromote resource recycling. We advocate for suppliers to use clean energy and recycle packaging materials and waste materialsto reduce pollution and negative environmental impact. Suppliers are required to sign a Supplier Agreement upon admission,committing to not using harmful substances, not using conflict minerals (where applicable), ensuring supply chain security, fulfillingsocial responsibilities, respecting the freedom of association and collective bargaining rights of employees, protecting employeeprivacy, eliminating child labor, forced labor, corporal punishment, and discrimination in employment, ensuring minimum wagesand reasonable working hours, providing safe and hygienic working conditions, and related training.At the battery materials production base,we conduct comprehensive evaluations of suppliers through sample testing, materialline veri?cation, audits for screening and admission, and on-site veri?cation procedures before cooperation. All new suppliers whoobtain quali?cation for admission are required to commit to responsible mineral behavior, sign documents such as the Business EthicsAgreement, Supplier Integrity Commitment, and Quality Assurance Agreement. We pay attention to the supplier's system constructionof ISO45001, ISO14001, ISO9001, IAFT16949, as well as ROHs, HF, SVHC environmental substance certification, and CNAS, CMAcerti?cation. Supplier Evaluation
We have established a supplier evaluation mechanism covering social, environmental, and safety dimensions, and conductedregular performance assessments to objectively and quantitatively evaluate suppliers. Based on the comprehensive ratings ofsuppliers, we classify them into different tiers, eliminate poor-performing suppliers, and generate an annual comprehensiveassessment and list of qualified suppliers. In assessing the quality of supplier's products and service capabilities, we pay attentionto the environmental and social impact of supplier's products and services, such as energy efficiency and the use of recycledmaterials.At the tungsten smelting production base, we conduct comprehensive evaluations of suppliers based on dimensions such asqualification rate of incoming material, management systems, delivery capability, pricing level, information provision, after-salesservice, environmental management systems, R&D capabilities, and overall corporate management. Suppliers are classified andmanaged in three categories: strategic, important, and general, according to their performance levels.At the tungsten and molybdenum wire production base, we formulate a Supplier Performance Evaluation Form and rate
suppliers on quality, delivery, cost, and service performance on a monthly or quarterly basis. We record performance trends, providefeedback on performance results, and offer guidance to suppliers through formal email, analyzing reasons for performance anddevising corrective measures and objectives. If supplier's corrective actions are inadequate, punitive measures such as downgradingratings or reducing purchases are implemented.
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Supplier Communication
We have established a regular and diversified supplier communication mechanism to foster long-term and stable cooperationwith suppliers. This is achieved through methods such as on-site visits, email correspondence, industry seminars, and field audits.Additionally, we provide necessary support for supplier development and improvement. For instance, when issues are identifiedduring audits or collaboration, we offer improvement suggestions and guidance to assist suppliers in enhancing their performance.
Supplier Training
We proactively conduct training on topics related to supplier social responsibility and green supply chain. We promote theconcept of building a sustainable, resilient, and responsible supply chain within the company. We encourage suppliers to join us inaddressing climate change, product quality and safety, environmental protection and sustainability, occupational health and safety,and human rights protection. Together, we aim to create a more competitive and resilient supply chain, effectively mitigating risksto sustainable supply chain development.
Our battery material production base establishes supplier profiles based on supplier selection and evaluation results,and implements a multidimensional evaluation and tracking mechanism. This includes assessing supplier's corporatemanagement overview, the e?ectiveness, compliance, and sustainability of quality management, environmental-friendlyproduction and sustainable development practices, as well as the completeness of after-sales services. Furthermore,suppliers are required to provide supply chain maps to trace the origin of each batch of materials.During the reporting period, we further improved the digitalization of the entire sourcing process:
√ We piloted the online MRO system for Industrial Goods and established a service-oriented procurement management system to
enhance supply chain risk monitoring and management.
√ We comprehensively promoted the Supplier Relationship Management system (SRM) to achieve end-to-end online management of
procurement and supplier lifecycle management. This not only enhances overall procurement e?ciency but also provides supportfor more accurate market analysis and supplier evaluation.
At the cutting tool production base, we utilize information-based supply management methods to ensure standardizedprocurement processes and achieve dynamic management of suppliers throughout the entire process. Suppliers are required toconduct self-assessments on sustainable development-related indicators such as environmental protection, occupational healthand safety, labor rights, and human rights protection, and undergo on-site inspections.At the rare earth smelting, separation, and material production base,our supplier audits align with standards such
as ISO9000, IATF16949, ISO27001, and SA8000. Audit types include system audits, process audits, product audits, and regularperformance assessments. We annually develop audit plans and send Supplier On-Site Audit Forms to suppliers for self-assessment,followed by on-site audits focusing on dimensions including hazardous material management, social responsibility, green supplychain establishment, and information security.At the battery material production base, we categorize suppliers based on the purpose and impact of raw materials, specifyingperformance evaluation indicators for different categories. We employ multi-dimensional evaluation and tracking mechanisms tosupervise and manage suppliers, focusing on performance in areas such as operational management level, product quality, after-sales service, environmental friendliness, and social responsibility. We conduct regular evaluations and assessments on supplierbehavior, including dimensions such as quality, delivery, price, service, and corporate growth, and perform annual qualified supplierreviews and monthly performance tracking through questionnaire surveys, on-site audits, and feedback from third-party.
Supplier Pro?le and Traceability ManagementHighlight|
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Responsible Mineral ManagementWe fully acknowledge the potential significant negative impacts associated with engaging in mineral extraction, trading, processing,and exporting activities in conflict-affected and high-risk areas. As responsible corporate citizens, we are committed to upholdinghuman rights and refraining from contributing to conflicts. We explicitly oppose any activities or behaviors that could fund orexacerbate conflicts. We adhere to and promote guidelines such as the United Nations Guiding Principles on Business and HumanRights, China's Guidelines for Social Responsibility in Outbound Mining Investments, Chinese Due Diligence Guidelines for MineralSupply Chain, and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, aiming to build responsible, resilient, and sustainable critical mineral supply chains. We incorporate responsibleprocurement policies for minerals from conflict-affected and high-risk areas into our company's Business Code of Conduct andSupplier Code of Conduct. We require suppliers to adhere to these principles and refrain from using minerals from conflict areas orany resources associated with illegal extraction, transportation, or trade.
In the tungsten smelting production process,we adhereto our commitment to responsible mineral policies andcontinually improve our responsible mineral managementsystem. To improve responsible supply chain managementfor our tungsten products, we have appointed representativesresponsible for supply chain responsibility management. Theyare specifically tasked with ensuring that every stage, fromsupplier screening, raw material procurement, logistics andwarehousing, to production and delivery, complies with therequirements of supply chain responsibility management. Weconduct due diligence management system training annuallyfor key personnel in all relevant departments, as required bythe due diligence plan. Additional training will be conductedas needed if there are updates to the plan.Following the requirements of the OECD Due DiligenceGuidance for Responsible Supply Chains of Minerals fromConflict-Affected and High-Risk Areas, we have developedthe Supply Chain Responsibility Management System andregularly communicate responsible mineral and supply chain-related policies to upstream suppliers. We incorporate duediligence requirements into legally binding agreements.Suppliers potentially involved in conflict minerals must signa Responsible Supply Chain Commitment before establishingformal cooperation upon qualifying for admission. We conductannual assessments of major suppliers, incorporating duediligence requirements as part of the discussions, to preventthe use of conflict minerals that directly or indirectly financearmed groups or benefit them, or are involved in other serioushuman rights abuses in high-risk and conflict-affected areas.In the battery materials production process,we activelyrespond to the commitments of the joint working group
of Responsible Business Alliance (RBA) and the Globale-Sustainability Initiative (GeSI) to improve conditions in theelectronics supply chain and prevent mining activities that maycontribute to conflicts. We have established the "ManagementRegulations on Responsible Mineral Supply Chain DueDiligence" to regulate the management of raw material ofmineral resources that we may use, identify, prevent, andmitigate significant risks such as those that may contributeto conflicts or serious human rights violations. Theserequirements are communicated to our suppliers to promotesimultaneous implementation. In contracts for cobalt andlithium materials, we have added clauses that strictly prohibitsuppliers from purchasing from companies in the supply chainthat use hand-dug mines or employ child labor in the origincountries. Additionally, suppliers are required to provide a"Pre-Audit Checklist for Responsible Mineral Risk Assessment,"which is regularly promoted to upstream suppliers, prohibitingthe purchase of conflict minerals from conflict-affected orarmed conflict-affected areas. During the reporting period,we revised the "Management Regulations on ResponsibleMineral Supply Chain Due Diligence" to further clarify internaland external management requirements and standards,enhance the our internal awareness of mineral supply chainrisks, strengthen the control and traceability of responsibleminerals, standardize the sourcing of our raw materials,satisfy external stakeholders' expectations for responsiblemineral management, respond to government regulatoryrequirements, and promote the orderly, responsible, andsustainable development of the supply chain.During the reporting period, our tungsten smelting andproduction bases has passed the Responsible MineralsInitiative (RMI) organization's Responsible Minerals AssuranceProcess (RMAP) audit.
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Responsible Minerals Due DiligenceWe profoundly recognize that the origin of minerals can provide important indicators ofwhether there may be risks of con?ict, serious human rights abuses, or severe negligence inthe extraction, trade, and use of mineral resources. We refer to the step-by-step frameworksof the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals fromCon?ict-A?ected and High-Risk Areas and the Chinese Due Diligence Guidelines for MineralSupply Chain to conduct supply chain due diligence.We disseminate and communicate our responsible mineral supply chain due diligencepolicy to suppliers, requiring them to jointly practice responsible mineral supply chaindue diligence. In the process of entering the qualified supplier list, they are required tounderstand the relevant policies, sign corresponding commitments, and commit to ande?ectively ful?ll the contents.To better receive complaints and suggestions from stakeholders regarding mining, trading,processing, export, and responsible minerals, we have established a dedicated appealsmechanism to protect the identity information of appellants. Upon receiving a complaint,we will initiate a series of processes for identi?cation, investigation, and correction, and willcontinue to monitor performance improvement.In the tungsten smelting production process,we have developed a tungsten supply
chain due diligence procedure and prepared relevant documents such as the " AssessmentManual for Responsible Minerals Assurance Process," "Due Diligence Questionnaire and SiteInvestigation Report," and "Process for Identifying Con?ict-A?ected and High-Risk Areas" toassess whether the supply chain contains con?ict-a?ected and high-risk areas (CAHRAs) asde?ned by the OECD guidelines and suitable for RMAP standard requirements, and de?nethe risks and types of risks involved in the procurement source countries. Once high-riskfactors are identified, we will conduct enhanced due diligence, participate in upstreamveri?cation mechanisms recognized by the RMI, and work with suppliers, customers, andother stakeholders to discuss plans and measures to mitigate and manage risks, andtrack performance improvement. If the supplier's performance does not improve withina reasonable time frame or if risks are not mitigated or eliminated, we will initiate a riskalert and suspension mechanism to temporarily suspend or terminate cooperation withupstream suppliers. We compile an "Annual Report on Responsible Mineral Supply ChainDue Diligence Management" every 12 months and disclose it to the public.
In the production process of battery materials, we conduct qualification reviews
for all suppliers of materials containing lithium, nickel, cobalt metals, and theircorresponding supply chains, including extraction, supply, procurement, orprocessing, and conduct qualification audits for potential suppliers through theResponsible Cobalt Initiative (RCI) focusing on environmental compliance and ethicalcompliance, tracing the supply process and the origin of mineral resources (transportroutes and mining sites) to ensure that cobalt raw material suppliers do not engagein human rights abuses such as employing child labor or maintaining poor workingconditions. During the reporting period, our battery material production base issueda responsible mineral supply chain declaration to collaborating suppliers andreceived confirmation receipts from suppliers, achieving a completion rate of 100%,with no responsible mineral supply chain risks occurring.Utilize Know Your Supplier (KYS) questionnaires to collect supplier information, rawmaterial information, and responsible management information through cobaltsourcing investigations, direct supplier communication, and querying publiclyavailable information of suppliers.Qualified suppliers are required to establish a supply chain map, regularlyundergo due diligence management and risk assessment, and periodically reportinvestigation results to our management team.In cases of potential risks, we engage in discussions with relevant suppliers,implement risk mitigation measures, and track progress in mitigation. Ifperformance does not improve within a reasonable timeframe or if risks are notmitigated or eliminated, we initiate a risk alert and suspension mechanism totemporarily suspend or terminate cooperation with upstream suppliers.Furthermore, we encourage and supervise suppliers to establish equivalentmanagement mechanisms and motivate partners to actively participate in third-party audits.
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Responsible Products and ServicesWe focus on three core businesses: tungsten and molybdenum, new energy materials, and rare earths. We provide high-quality, stable-performance products to global customers, which are widely used in industries and sectors such as new energy, aerospace, machineryprocessing, energy-heavy industry, consumer electronics, pharmaceuticals, and petrochemicals, supporting the vigorous development ofthe manufacturing and new energy industries. We always regard product quality as the lifeline of enterprise development, guaranteeingproduct quality and providing satisfactory services to customers as the fundamental principle of our business. We strive to builda sustainable product system centered around customer satisfaction. Some of our key products have passed the ISO 9001 qualitymanagement system certi?cation and are well-known at home and abroad for their excellent quality and premium service. Several of ourproducts, including "Jinlu Brand Tungsten Alloy," "Honglu" brand tungsten and molybdenum wires, and various tungsten oxide products,have been recognized as national key new products and Fujian provincial famous products.
G-PAK 2023 New Product: 'Silver Sparrow' Series Titanium Alloy Milling Cutters
Titanium alloy, characterized by high strength, low density, and corrosion resistance, is widely utilized in aerospace,energy, medical, and other ?elds. In the aviation sector, titanium alloy structural components are primarily employedin critical areas such as aircraft fuselages and wings, serving as the "essential framework" of the aviation industry. Withthe rapid development of the industry, the pursuit of efficiency, economy, and intelligence has become a significanttrend in the processing of titanium alloy structural components. Titanium alloy materials have a low elastic modulus,high processing temperatures, severe tool adhesion, poor rigidity during part processing, and a large amount of materialremoval, making them typical di?cult-to-process components. Our Cutting Tools Division, leveraging years of productdevelopment and component solution experience, combined with the demands of market users, optimized processsolutions and developed high-quality cutting tools. At the 2023 G-PAK new product launch event, we unveiled theTitanium Alloy Structural Component Solution, which possesses excellent performance in efficient and high-qualitytitanium alloy processing. It provides users with solid support for e?cient titanium alloy processing, empowering themto go higher and farther. Product Quality Management
We inject the pursuit of quality into every production process,strictly adhere to national laws and regulations such as the Lawof the People's Republic of China on Product Quality, formulatestrict product quality standards, and continuously improve thequality management system. We implement full-process qualitycontrol from product research and development, suppliermanagement, incoming materials, manufacturing, to product andservice delivery. Centered around the product's entire lifecycle,we adhere to lean production management and intelligent, greenmanufacturing models, establishing comprehensive qualitycontrol and risk prevention mechanisms and continuouslyoptimizing them to meet the requirements of global customers.Guided by market demand, we actively research and developnew products, and continuously enhance the company's productcompetitiveness. We promote the International AdvancedManufacturing (IAM) project, with the guiding principles of"Customer-centric, goal-driven, self-critical, people-oriented,and continuous improvement," striving to build a manufacturing
system that is "Scientific management with structuredapproach; upscale products with stability; strong profitabilitywith sustainability." we promote the comprehensive building ofmanufacturing capability, mainly through lean production andSix Sigma, in the five major professional areas of productiontechnology, production equipment, quality management, leanproduction sites, and safety, health, and environment. During thereporting period, we continued to deepen the promotion of theInternational Advanced Manufacturing (IAM) 2.0 stage, formulatedannual key promotion work plans for IAM, conducted internalauditor training for the IAM evaluation system, and regularlyheld "XTC Tech Talks" brand series activities for the entire group.These activities include the "Engineering Center TechnicalSharing Summit" and "Expert Lectures" focusing on basic andcommon technical sharing, as well as the "Quality Managementand Testing Technology Exchange Summit" primarily focusingon quality and testing technology exchanges. Additionally, thesecond Quality Forum, themed "Setting the Standard, Craftingthe Future," was convened to explore high-quality managementunder the development of new quality productivity, steadilyadvancing towards the goal of "XTC Manufacturing, InternationallyAdvanced".
Titanium Alloy Structural Component SolutionHighlight|
Innovation-Driven, Suppliers, and Customers Rural Revitalization and Public Service People
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Material Safety ManagementWe strengthen the monitoring of raw material quality and refine producttesting methods to ensure that purchased materials meet the company'sinternal standards and the requirements of relevant laws and regulationsregarding product quality, safety standards, and environmental protection.We strictly avoid the use of low-quality or harmful substances, opt forenvironmentally friendly materials and production processes given equalcircumstances, ensure production process stability, reduce the occurrencerate of product quality issues and safety risks, and continuously improveproduct quality and safety standards. While strengthening managementin our own production processes to ensure compliance with domestic andinternational environmental laws, regulations, and industry standards, wealso require suppliers to comply with relevant laws and regulations and ourrequirements for the control of harmful substances. We review supplier-provided raw material testing reports or require suppliers to accept third-party sampling inspections commissioned by us, continuously reinforcingthe management of product raw materials.
At the rare earth smelting, separation, and material production
base in Changting, we have established a testing center. The
scope of product testing ranges from rare earth ore and front-end
primary products to downstream products in the industrial chain.
The testing technologies involved include chemical composition
analysis, magnetic property analysis, mechanical property
analysis, thermal property analysis, powder property analysis,
environmental reliability analysis, microscopic analysis, and non-
destructive analysis. In 2015, we obtained accreditation from the
China National Accreditation Service for Conformity Assessment
(CNAS) and strictly adhere to the requirements of the ISO/IEC
17025 international laboratory management system for conducting
testing activities.
Highlight
Innovation-Driven, Suppliers, and Customers Rural Revitalization and Public Service People
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We consistently uphold the corporate mission of "Provide aplace for customer to ?nd solutions " and practice the concept of"customer-centric," to e?ectively safeguard customer rights. Ourcompany and a?liated enterprises, in line with companies’ owncharacteristics, have established a sound customer managementsystem with standardized customer service mechanisms formanaging customer information, maintaining relationships,managing assets, providing after-sales services, and conductingcustomer satisfaction surveys. We aim to provide timely, e?ective,and high-quality services to customers, ensuring their rights andenhancing their satisfaction with our products and services.Taking the management practices of the Magnetic MaterialsDivision as an example, we have revised the "Customer ComplaintManagement Measures," clarifying clauses for protectingcustomer privacy to ensure that customer-provided drawings,technical data, and other intellectual property are not disclosedto third parties without customer consent. We actively collectcustomer feedback and commit to responding to customerissues within 2 hours, continuously improving service quality. Weorganize and plan customer technical exchange meetings to gaininsights into customer needs, address customer inquiries, andeffectively increase customer satisfaction. During the reportingperiod, the Magnetic Materials Division conducted satisfactionsurveys for 84 customer groups in four product areas: automotive,home appliances, motors, and wind power. The overall customersatisfaction score averaged 97.88 points, showing a steadyimprovement.Taking the management practices of the Cutting Tools Divisionas an example, we stick to the implementation of the "CustomerManagement Measures," strategically allocate corporateresources and investment priorities based on customer
on bugsell and counterfeits and maintaining market order and company reputation.We regularly conduct customer satisfaction surveys to understand evaluations of products, services, and customer activities, and promptly adjustcustomer service de?ciencies based on feedback results. During the reporting period, Xiamen Golden Egret, an a?liated company, conductedcustomer satisfaction surveys around product quality, product pricing, delivery status, customer service, and promotional activities. A total of 69questionnaires were collected (including 58 from domestic customers and 11 from overseas customers), with an overall customer satisfactionscore of 4.6 (out of 5). We conducted customer satisfaction analysis based on survey results and promptly implemented improvement measuresaccording to customer feedback and suggestions to enhance customer satisfaction and loyalty. Additionally, we provided sales support, marketpromotion support, dealer business development plans, growth incentive plans, terminal support plans, and employee growth plans for dealersto help them grow and improve their product marketing and technical service levels accordingly.
Training for Dealerssegmentation, thus enhancing customer service efficiency andquality through targeted and di?erentiated services. We adhereto standardized sales management systems, and regularly revisethe "Dealer Management System" based on market feedback andbusiness needs. We utilize CRM customer management systemsto classify and dynamically manage customer information. Inour daily work, we encourage dealers to focus on end-users,develop new benchmarks, and promote new products. We setcorresponding incentive policies to enhance dealer’s marketorder maintenance and proactive market information collection.we strictly control product distribution channels, cracking down
Customer Rights Protection
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Information Security and Privacy Protection
We comply with relevant laws and regulations such as the Information Security Law of the People's Republic of China, the DataSecurity Law of the People's Republic of China, and the Personal Information Protection Law of the People's Republic of China,continuously improve our information security management system, and formulate and implement internal managementregulations such as the "Group Information Security Management Measures," "Group Information System ManagementRegulations," "Group Information System Data Management Measures," and "Group Information System Development andOperation Maintenance Management Measures" to standardize the information security management work of our headquartersand affiliated enterprises, effectively safeguard information security, and protect the privacy of employees, customers, and otherstakeholders.Based on the segmentation of information security management sectors, we have established clear hierarchical managementstructures and responsibilities. In terms of information security management and information system management, our executiveteam serves as the highest decision-making body, with the IT center responsible for guiding and supervising information securitymanagement work and information system construction. Affiliated enterprises are responsible for the daily work of informationsecurity management and the implementation and operation management of information systems within their respective
organizations. Regarding data management, the headquarters has set up an operations and collaboration team responsible forthe operation, maintenance, and audit of basic data of information systems, while various business departments and affiliatedenterprises establish dedicated personnel for data audit according to their actual situations. To ensure the effective implementationof information security work, we link information system downtime events triggered by information security causes to theperformance of relevant personnel. For example, events such as system failures in key systems exceeding 4 hours during officehours, continuous downtime exceeding 24 hours in other periods, and failures in services of the three major basic systems (ERP, OA,E-HR) are counted, aiming to enhance the awareness of information security among relevant personnel and improve the company'sinformation security capabilities.We conduct regular internal control evaluations of the operation and effectiveness of information systems and commission externalprofessional institutions to conduct internal control audits. Additionally, we strengthen information security management, preventinformation security risks, and safeguard data information security by deploying network firewalls, vulnerability scanning systems,and other security protection devices in data centers or through a series of technical security measures. During the reporting period,we optimized and rectified the network architecture of the data center, divided it into multiple security zones, managed productionenvironments, testing environments, and operations and maintenance networks separately, and added east-west firewalls toenhance internal security within the data center. During the reporting period, we did not experience any information securityincidents or events involving infringement of customer privacy.
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XTCThe Nonferrous Metals Society of ChinaMember UnitXTCNational Nonferrous Metals Standardization CommitteeMember UnitXiamen Honglu
National Nonferrous Metals Standardization TechnicalCommittee
Member UnitXiamen Golden EgretChina Metal Cutting Tool Engineering AssociationVice Chairman UnitXiamen Golden EgretTool Branch of China Machine Tool & Tool Builders’ AssociationExecutive Director UnitXiamen Golden Egret
National Technical Committee for Standardization of CuttingTool
Member UnitChengdu HongboMolybdenum
Molybdenum Branch of China Nonferrous Metals IndustryAssociation
Vice President UnitChengdu HongboIndustrial
China Electronics Materials IndustryExecutive Director UnitChengdu HongboIndustrial
Chinese Association of Vacuum Electronic IndustryExecutive Director UnitTianjin SofToolChina Metal Cutting Tool Engineering AssociationDirector UnitTianjin SofToolTool Branch of China Machine Tool & Tool Builders’ AssociationMember UnitXWXNChina Industrial Association of Power SourcesDirector UnitXWXNCobalt Branch of China Nonferrous Metals Industry AssociationDirector Unit
Supporting High-Quality Industry DevelopmentXTC leverages its resource advantages, actively participates in the formulation of national and industry-related standards, and collaborateswith upstream and downstream enterprises to promote high-quality development within the industry. During the reporting period, weand our subsidiaries joined a total of 89 associations, mainly including:
XTCInternational Tungsten Industry Association
Member Unit, Member of TechnicalCommittee of Tungsten ConsortiumXTCTungsten Industry—Conflict Mineral CouncilDirector UnitXTCChina Tungsten Industry AssociationVice President UnitXTCAssociation of China Rare Earth IndustryVice President UnitXTCChina Mining AssociationExecutive Director UnitXTCChina Nonferrous Metals Industry AssociationDirector UnitXTC
Strategic Alliance for Technological Innovation of China'sRenewable Resources Industry
Director UnitXTC
Strategic Alliance for Technological Innovation of China'sNonferrous Metals Industry
Director UnitXTC
Strategic Alliance for Technological Innovation ofCompulsory Resource Recycling Industry of ChinaResources Recycling Association
Board of SupervisorsXTCThe Chinese Society of Rare EarthsUnit in Charge of the Board of Directors
EnterprisePositionParticipated Association
EnterprisePositionParticipated Association
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XTC'sCEO, Wu Gaochao, participated in the interview
Signing for Industrial Chain Synergy Interaction
We were invited to participate in the 2023 China Tungsten Industry Equipment & Instrument Forum by the China TungstenIndustry Association, with China tungsten Online (XIAMEN) MANU.& Sales Corp. participating as co-organizer. Togetherwith tungsten mining, smelting, hard alloy, materials, and other industry chain and supporting suppliers, we explored andanalyzed the industry, shared experiences, and negotiated cooperation.
We participated as a co-organizer in the 2023 China Hard Alloy and Tool Industry Forum (Diamond Forum) and ChinaTungsten Industry Development Summit jointly hosted by the China Tungsten Industry Association, Zhuzhou CityGovernment, and Central South University. The forum aimed to implement the "China Tungsten Industry DevelopmentPlan (2021-2025)" and provided a platform for government, industry, academia, research, and application exchanges. OurChairman, Huang Changgeng, attended the forum, where he discussed the current status and future development prospectsof the industry with industry partners, engaged in technical exchanges and discussions, promoted the construction of theecological system of the hard alloy and tool industry, and advanced the high-quality development of the Chinese hard alloyindustry. This endeavor aimed to enhance China's self-su?ciency capability in high-end products of hard alloys.
We participated as a co-organizer inthe 2023 China Tungsten IndustryForum and Hard Alloy MarketApplication Seminar, hosted by theChina Nonferrous Metals IndustryAssociation- Information Center.Our CEO, Wu Gaochao, attended theopening ceremony and delivered aspeech. Facing supply-side reforms andindustrial upgrades, he expressed thehope of collaborating with colleaguesto promote the advanced developmentof the industry's foundation andmodernization of the industry chain.This aimed to contribute XTC's strengthto the advancement of China's tungstenindustry under new circumstances.
CEO Wu Gaochao, delivered a speech at the opening ceremony of the 2023China Tungsten Industry Forum and Hard Alloy Market Application Seminar
2023 China Hard Alloy and Tool Industry Forum and China Tungsten Industry Development Summit
2023 China Tungsten Industry Forum and Hard Alloy Market Application Seminar
2023 China Tungsten Industry Equipment & Instrument Forum(CTIEF)Highlight|Highlight|
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Subsidiary Xiamen Golden Egret actively participated in variousinternational exhibitions in 2023, including the China InternationalMachine Tool Show, EMO Hannover 2023, the MECT NagoyaExhibition in Japan, the METALEX Exhibition in Thailand, and theDMP Greater Bay Area Industrial Expo. These exhibitions provided
platforms for Xiamen Golden Egret to showcase its breakthroughsand innovations in alloy material products and industry-specificcomponent solutions to attendees. This participation contributed tothe innovation and development of the industry.
Subsidiary XWXN, as a member of RCI, was invited to participate in the 2023 Sustainable Mineral SupplyChain International Forum, hosted by the China Chamber of Commerce of Metals, Minerals & ChemicalsImporters & Exporters (CCCMC) and organized by RCI. The forum, themed "Enhancing Mining Governance,Building Supply Chain Partnerships, and Driving New Energy Transformation," provided a platform forcommunication and exchange among international organizations, government departments, industryassociations, regulatory agencies, industry leaders, and authoritative experts. Participants jointlyexplored the establishment of upstream and downstream partnerships and collaborative mechanismsinvolving multiple stakeholders. They also signed the " Initiative on the joint action of promoting High-Quality Development of Critical Mineral Supply Chains," issued by CCCMC, to promote the sustainabledevelopment of mineral supply chains.
Subsidiary XWXN participated in the "2023 Annual Conference of the Hydrogen Storage MaterialsBranch of the Association of China Rare Earth Industry and Industry Technology Development Seminar" organized by the Hydrogen Storage Materials Branch of the Association Of China Rare Earth Industry.The event was themed "Integrating Hydrogen Storage Production, Academia, Research, and Application,Prospecting Hydrogen Energy to Aid Dual Carbon Goals." This meeting strengthened the closeconnections between domestic research institutes, universities, and XWXN. It accelerated the gatheringof high-end talents in the materials industry, promoted technological innovation and breakthroughs, andinjected new vitality into China's energy new materials industry.
Attending Alloy Materials at International ExhibitionsHighlight|
2023 International Forum on Sustainable Mineral Supply ChainsHighlight|
2023 Annual Conference of the Hydrogen Storage Materials Branch of
the Association Of China Rare Earth Industry and Industry Technology
Development SeminarHighlight|
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Rural Revitalization and Public Service
Adherence to the principle of Free, Prior, and Informed Consent (FPIC), with 100% of operational sites havingcommunity participation, impact assessments and development plans for community.
The annual local employee hiring ratio should not be less than 60%.
Engage in philanthropic donations and volunteer activities to promote local community development ineducation, culture, infrastructure, rural revitalization, and people's livelihoods. Total volunteer service hoursexceed 1,500 hours.
2023 Management Objectives
Harmonious Engagement in CommunityWe understand that building harmonious relationships with the regions in which we operate is of great importance to thesustainable development of our business. We actively listen to the voices of stakeholders in the surrounding areas, give back tothe communities in various forms, support and contribute to the construction and development of communities in the areas ofenvironment, education and economy, and are committed to contributing to the achievement of the United Nations SustainableDevelopment Goal 11 (SDGs). We have established the "Code of Business Conduct," wherein we have made declarations andcommitments regarding respecting the human rights of indigenous peoples, community development, community involvement,and communication. We respect the rights, cultural customs, and ways of life of local indigenous peoples, actively safeguarding thepersonal and collective rights and interests of local residents. We maintain communication with stakeholders in the areas wherewe operate, engaging deeply in community communication and interaction. We listen to the expectations and demands of thecommunity, endeavoring to minimize the negative impacts of our business activities on the local area. We actively promote theestablishment of open, honest, and mutually beneficial relationships with the communities where we operate.
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Business Distribution Map
Tungsten and MolybdenumRare EarthsNew EnergyOthers
BrazilThailand
Xiamen
JapanKoreaGermany
Urumqi
Xinjiang
ChengduYa'an
Kunming
QiannanFuquan
Changsha
Jiujiang
GanzhouLongyan
XiamenNingdeZhangzhouSanming
YulinGuangzhou
Shenzhen
Taiwan, ChinaHong Kong, China
Wenshan
Tianjin
Luoyang
Sichuan
Yunnan
Guizhou
Guangxi
Hunan
Jiangxi
FujianGuangdong
Henan
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Community Communication MechanismWe operate production bases for our three core businesses—tungsten and molybdenum, rare earths and new energy materials—invarious locations including Xiamen, Longyan, Sanming, Ningde, Luoyang, Jiujiang, Chengdu, Ganzhou, Tianjin, Ya'an, Thailand, aswell as trade companies in regions such as Hong Kong, Taiwan, Germany, Japan, and Brazil. We actively establish good relationshipswith the governments and communities in the above-mentioned business operation areas, strive to reduce the negative impactof our business activities on the areas where we operate, and provide assistance to the communities in any way we can, and arecommitted to making full use of our resources in the process of business development to promote local employment and regionaleconomic development.Our operations have dedicated departments responsible for community communication at each site, establishing transparentand comprehensive communication and feedback mechanisms with local governments, communities, and indigenous residents.During the planning phase of projects, we conduct social baseline surveys to gather and understand background information aboutthe community's political, geographical, historical, cultural customs, and population. We actively engage in extensive exchangeswith stakeholders in the surrounding areas, involving deep participation in community communication and interaction, listening
Community Impact Assessment
We fully respect the principle of Free, Prior and Informed Consent (FPIC) and actively conduct community impact assessments.During the project development process, we timely and appropriately disclose various enterprise information related to thecommunity, thoroughly explore the potential social impacts and risks, including environmental, health, safety, and local residents'rights and interests, and identify the affected community groups. We then develop corresponding mitigation or responsemeasures.We adhere to the principle of fairness and trust and maintain continuous dialogue with local communities and indigenous peoples.This ensures timely collection, documentation, and resolution of the opinions and demands of community stakeholders. We integratethese opinions and demands into our business review and decision-making processes, comprehensively evaluate the social impactassessment results, and formulate targeted long-term risk mitigation plans. We strive to minimize involuntary resettlement, physicalrelocation, and land acquisition issues caused by project construction to the greatest extent possible. In cases where project investmentand construction involve the resettlement of local community residents, we negotiate and reach consensus with the affectedcommunity on protective or relocation agreements. We compensate the a?ected communities and individuals for their asset lossesbased on full reset costs and actively create employment opportunities for local migrants a?ected by the project. We make every e?ortto minimize the negative impact of our project investment and construction on the local community
to the community's expectations and demands. We fully integrate feedback and demands from all parties into the decision-makingprocess of projects and community plans, striving to minimize the negative impacts of business operations on the local area. Takingour mining activities as an example, we proactively and transparently communicate with the surrounding communities on issuessuch as potential noise, waste management, water resource protection, and transportation that may arise from mining activities.We engage in dialogues with neighboring communities to promptly understand the impacts on the surrounding areas, activelycommunicate, and reasonably address the core demands of the villagers. We also develop corresponding long-term developmentplans in response to community concerns.We have established a robust appeals mechanism, providing smooth and effective social appeal channels for all communitystakeholders affected throughout the project's entire process. We encourage all parties to appeal regarding the scale, extent ofimpact, and satisfaction with the project, actively respond to community appeal demands, handle appeals appropriately, andensure confidentiality in accordance with our confidentiality policy. Additionally, we require all project units to regularly reviewthe progress of community communication, comprehensively evaluate the effectiveness of the community appeals mechanism,improve the effectiveness and professionalism of the appeals mechanism based on the handling of community appeals, andpromptly update stakeholders on the improvement of the appeals mechanism. This aims to foster the formation of an efficienttwo-way communication and feedback mechanism, achieving mutual benefit and harmonious development.
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Xiamen Honglu conducted the "Enjoying theTechnology, Setting Free the Innocence " scienceand technology festival volunteer service activity,organizing employees to visit the Jimei SpecialEducation School to provide learning and livingsupplies and rehabilitation equipment for specialstudents. Additionally, they prepared a science andtechnology festival gift package for each student,enriching and enlivening the cultural life of specialchildren through participation, experience, andcompetition.
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Public Welfare Investment for Rural RevitalizationWe actively respond to the national rural revitalization strategy, fully utilize our own resources to create more job opportunities in the areaswhere we operate. Additionally, we continuously invest in local education, culture, and infrastructure through philanthropic donationsand volunteer activities, thereby enhancing the well-being of the local community. During the reporting period, our total social donationamounted to 6,742.20 thousand RMB, with 1,019 participants engaging in volunteer services, accumulating a total volunteer service timeof 1,618 hours
Join Hands for Children
Care for "Children of the Stars"
XWXN (Xiamen) initiated the "Red Action: Love is NotAlone" volunteer public welfare activity, showing carefor special groups such as children with autism. Theydonated children's intellectual toys and books toXiamen Haicang Chenxin School.
Charitable Funding for Education
Xiamen Golden Egret donated 550,000 RMBworth of supplies to Xihongtang Primary Schooland Binxin Kindergarten in Tong'an District,and donated 105,000 RMB in scholarships to theCentral South University Education Foundation.
Malipo Haiyu Tungsten visited Panlong Primary Schoolin Malizhen to conduct a "Children's Day" charity event,donating school bags, stationery, and graduationyearbooks to the students. They also donated a watertower to the school to alleviate water resource shortages.Additionally, they provided ?nancial aid to outstandingbut impoverished students at the Second Middle Schoolof Malipo County, helping underprivileged studentscomplete their education successfully.
Golden Dragon Rare-earth andLuoyang Yulu donated 160,300 RMBto support education and assistanceprograms, promoting the developmentof local cultural initiatives.
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Ninghua Xingluokeng donated nap beds toHucun Central School, paid for the purchase ofdesks and chairs for Ninghua County SecondExperimental Primary School, and providedscholarships to local students from TsinghuaUniversity.
Duchang Jinding conducted the "Golden AutumnScholarship" campaign, donating school bags,stationery, and other learning materials to ruralprimary schools, and providing financial aid forcollege tuition fees for students in Tutang Town,ensuring material support and logistical supportfor rural students' education.
Contribution to Rural Revitalization
In 2023, Ninghua Xingluokeng Rural Revitalization Project invested a total of 1.30 million RMB to support localinfrastructure construction, assist in environmental improvement in the surrounding areas, promote continuousoptimization of the living environment, and enhance the well-being of residents. This initiative aims to facilitate ruraldevelopment in various aspects including social and living conditions.In 2023, Duchang Jinding Rural Revitalization Project invested a total of 750,000 RMB, including a donation of sandand gravel materials worth 75,000 RMB, to support the construction of rural infrastructure in surrounding villages andtowns. Additionally, ?tness equipment was donated to local villagers, demonstrating care for their health.In 2023, Rural Revitalization Project of Bobai Judian had a total investment of 40,000 RMB.
XWXN (Xiamen) donated 30,000 RMB to the Residents' Committee of Haicang Community, Qingjiao Village, and QunyaoVillage in Haicang Street, Xiamen. They also partnered with the Haicang Community of Haicang Street, Xiamen, toorganize the "Love Overflowing Haicang River, Childlike Hearts towards the Party" summer camp, caring for 48 left-behind children from 48 families.
In December 2023, a magnitude 6.2 earthquake struck Jishishan County, Linxia Prefecture, Gansu Province,resulting in significant casualties and property damage. XWXN (Xiamen), Xiamen Honglu, and Xiamen Golden Egretpromptly responded by collectively donating 600,000 RMB to the earthquake-stricken area in Gansu, to supportearthquake relief efforts and post-disaster reconstruction work.
During the holiday season, XWXN (Xiamen) organized employees to participate in charitable activities aimed atcaring for vulnerable groups, in collaboration with the Fujian Ningde Environment and Ecology Bureau. They visitedLutian Village in Chixi Town to carry out community-building activities, providing essential supplies such as rice,flour, and cooking oil to 15 elderly individuals, people with disabilities, and party members who have served in theparty for over 50 years.Xiamen Honglu actively implemented the "Neighborhood" party building model and conducted two "WarmNeighbors Bring Paired Support" activities. They visited and extended condolences to needy families in HujingCommunity, Qiaoying Street, Jimei District, Xiamen City, bringing essential supplies and holiday blessings.
Charity in Action
In 2023, Malipo Haiyu Tungsten donated 30,000 RMB to Panlong Village in Malipo County, Malipo Town, for roadhardening improvements; and donated 20,000 RMB to Tongchang Village in Yangwan Township, Malipo County, tosupport the construction of the Party and Mass Service Center's meeting room.In 2023, Luoyang Yulu donated a total of 550,000 RMB to the Charity Federation of Luanchuan County, the People'sGovernment of Chitudian Town, and the Villagers Committee of Maquan Village in Chitudian Town to support localdevelopment.
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Rural Infrastructure DevelopmentHighlight|
Disaster ReliefHighlight|
Care for Vulnerable GroupsHighlight|
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People
Revise the "Business Code of Conduct", continuously improve policies on human rights protection andequal employment, and prevent related human rights risks.
No penalties incurred for violations of labor laws or suspicions of employment discrimination throughoutthe year.
No penalties received for violations of labor laws and regulations or employment discriminationthroughout the year.
To provide an average of no less than 10 hours of training per employee throughout the year, covering100% of the company's employees.5Annual rate of work-related injuries lower than 0.3‰.6Zero fatalities among employees due to work-related accidents throughout the year.7Zero fatalities among subcontracted workers due to work-related accidents throughout the year.
Zero instances of major safety hazards identified during provincial or national safety inspections thatresult in suspension for rectification, penalties for responsible persons, or inclusion in the "blacklist" ofpoor safety production records.
Zero occurrences of major safety accidents, major mechanical equipment accidents, and major fireaccidents throughout the year.
2023 Employee Management Goals
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Human Rights ProtectionWe respect the contents of human rights protection in the "International Bill of Rights", the "United Nations Guiding Principleson Business and Human Rights", and the "ILO Declaration on Fundamental Principles and Rights at Work". We strictly adhere tothe "Labour Law of the People's Republic of China", the "Labor Contract Law of the People's Republic of China", and the laws andregulations of the locations where our business operates, placing high importance on the protection of every employee's humanrights. During the reporting period, we did not encounter any violations related to employing child labor or forced labor, nor did weexperience workplace harassment, abuse, discrimination, violent conflicts, or forced labor. Equal Employment
We are committed to equal employment, ensuring that the treatment of our staff in terms of hiring, training, promotion, salary,benefits, and other aspects will not differ due to race, religion, age, nationality, gender, marital status, pregnancy, disability, orother factors. Our entities have established systems such as the "Human Rights Protection Standards" and the "Social ResponsibilityManagement Handbook" according to their actual conditions, clearly establish a zero-tolerance principle against discrimination andother illegal employment practices, committed to ensuring fair and compliant recruitment procedures, supporting diverse employeedevelopment, ensuring equal pay for equal work, eliminating all kinds of illegal employment practices, and protecting the legitimaterights and interests of employees.
At our rare earth smelting, separation, and materials production base in Changting,we continuously improve ourhuman rights system and implement human rights protection measures to actively safeguard employee rights.
√ We adhere to implementing the "Employee Protection Code" and the "Anti-Discrimination Control Management
Regulations", actively carry out human rights-related training, ensure the non-discrimination policy iscommunicated to all managers, and establish related performance evaluations to monitor implementation.
√ We continuously carry out evaluations of social responsibility factors related to human rights protection, identify
human rights-related risks, systematically optimize internal human rights management measures, and have passedthe SA8000 Social Responsibility Management System Certification.
√ We organize anti-discrimination audits quarterly, which covers but not limited to recruitment website postings,
hiring, training, internal promotions, and benefits, ensuring all employees do not face discrimination at the hiringstage or during their employment.Additionally, we have taken multiple measures to reduce the burden of childbearing on employees and balance theircareer development with family care-giving responsibilities.
√ We established the "Pregnant Women and New Mothers' Job Risk Assessment Management Regulations", legally
provide special protection for female employees, and assign suitable job positions for pregnant women.
√ We built an "After-School Growth Center" offering regular custodial services, hiring professional teachers from
outside to take care of employees' children and provide tutoring during the employees' working hours.
√ We constructed a "Mommy's Room", providing a private and comfortable space for breastfeeding female
employees, equipped with chairs, water dispensers, and other necessary facilities for use by the employees.
Employee Compositionby Gender
ManagementComposition by GenderEmployee Composition
by Age
MaleFemale
Male（Mid-level and above, including senior management） Female（Mid-level and above, including senior management）Belowe 3030-50Over 50
27.65%
7.43%
64.92%
26.82%
73.18%
16.92%
83.08%
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Anti-Violence and Forced LaborWe pledge not to support or use any form of bonded or contract labor, corporal punishment, imprisonment, violence, bullying,intimidation, abuse, or any form of forced labor. We only employ security personnel for the normal protection of our property and thesafety of employees, not for supervising forced labor.
At our battery materials production base, we have formulated "Security Management Regulations" to set standardrequirements for security management work to maintain a positive work atmosphere.
At our tungsten smelting production base in Chengdu,we developed "Anti-Violence, Anti-Discrimination, Anti-SexualHarassment, and Drug Prohibition Management Measures" and invited external lecturers to conduct training on "workplaceviolence, discrimination, sexual harassment, and drug use."
“妈妈小屋”
Anti-Harassment
We promise to prohibit threatening employees or subjecting them to harsh or inhumane treatment, including but not limited toverbal abuse and harassment, whether publicly or privately, psychological harassment, mental and physical oppression, and sexualharassment. We maintain a zero-tolerance attitude towards any form of harassment or abuse, requiring all employees to complywith anti-harassment and abuse policy provisions and take all practicable measures to prevent harassment or abusive behavior inproduction areas or other situations.If employees experience harassment or abuse, they can report to their immediate supervisor or complain to representatives of therelevant department. If the complaint involves the direct supervisor, it should be reported directly to higher management or theresponsible party. Upon receiving such complaints, we will conduct investigations based on principles of fairness and justice, gatherevidence from relevant individuals, and maintain strict confidentiality. If the investigation proves the complaint to be true, we willtake appropriate disciplinary actions based on the severity of the case.
Opposition to Child LaborWe value the protection of minors' rights and strictly implement the "Provisions on the Prohibition of Using Child Labor" issued by theState Council and relevant laws and regulations, establishing "Child Labor and Minor Workers Management Regulations", "Child LaborRemediation Management Regulations", "Protection Standards for Child Labor, Minor Workers, and Female Workers", and committing toprohibiting the employment of child labor, generally not employing underage workers.We establish and implement procedures and systems to avoid child labor, rigorously checking the identity documents of job applicantsto confirm their age and other information is genuine before hiring. The HR department conducts regular inspections to prevent theemployment of child labor due to oversight, clari?es speci?c measures for child labor remediation management, and strictly prohibits theirresponsible dismissal of child labor.
At our cutting tools production base in Xiamen, we emphasize human rights protectionpolicies and behavioral taboos in new employee training, eliminating discrimination andviolence, and prohibiting child labor or involuntary labor.
Training on Human Right
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We respect and protect the various democratic rightsgranted to employees by the constitution and laws,and legally establish trade union organizations. Thetrade union represents employees in signing the"Collective Contract", "Enterprise Wage CollectiveContract", and "Special Collective Contract for theProtection of Women Workers' Rights", agreeingon matters related to salary levels, wage payment,safety production, occupational health protectionfor female workers, and vacation benefits. Throughestablishing trade union committees, signingcollective contracts, organizing worker representativemeetings and seminars, individual exchanges, andpublicly soliciting employee opinions, we continue tostrengthen employee communication and establishopen, unobstructed, and convenient channels forcomplaints, supporting stakeholders includingemployees in reporting suspected violations of humanrights protection and other types of non-compliantbehavior to us. We promise to make e?orts to resolverelated issues, o?er the highest degree of protection forcomplainants, allow anonymous complaints, establishprotection mechanisms, and prevent retaliation againstcomplainants.
Worker Representative Meetings
At our cutting tools production base in Xiamen,weestablished the Harmonious Labor RelationsCommittee and Haicang Cemented CarbideHarmonious Employee Relations Group, regularlyholding employee seminars to ensure that employees'legal rights are fully respected and protected.
At our rare earth smelting, separation, and material production base in Changting，we organize employee seminars periodically to discuss employment treatment issuesrelated to vacations, benefits, and other interests of employees.At our battery materials production base，we organize team leader seminars to fullyunderstand the demands and opinions of front-line production staff.
Employee Seminars at Xiamen Golden Egret
Employee Communication
Harmonious Labor Relations Committee/Harmonious Employee Relations GroupHighlight|
Employee SeminarsHighlight|
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Occupational Health andSafety Management Framework
Occupational Health and Safety Management FrameworkWe have established a comprehensive occupational health and safety management institution to effectively control occupationalhealth and safety risks in production and operations. The Work Safety Committee is our work safety supervision and managementinstitution, chaired by our chairman, with senior management forming a leadership team responsible for work safety inspections,supervising work safety implementation, and formulating work safety management systems and emergency plans. Additionally, weselect internal and external experts to form a safety supervision training team, responsible for implementing, reviewing our worksafety standards, and providing advice and suggestions for our work safety management. Under the leadership of the headquarters'Work Safety Committee, each subsidiary company has established its own safety committee and is supervised by the headquarters'Work Safety Committee.
We incorporate the performance of occupational health and safety management into the annual key performance indicators ofour senior management and relevant position heads, linking it to their performance compensation. Employees of us must sign the"Occupational Health, Safety, Environmental Protection, and Fire Safety Responsibility Agreement" according to the specific jobcontent of their positions, clarifying responsibility subjects, areas, objectives, protective measures, and assessment methods. Eachyear, our headquarters and subsidiary enterprises' work safety management departments develop and update outcome-based andprocess-based occupational health and safety management indicators, with department heads and direct supervisors responsiblefor implementation. We track monthly work safety performance or achievements of each unit, compare and analyze their worksafety target achievement, and provide improvement suggestions. During the reporting period, we signed 17,549 "OccupationalHealth, Safety, Environmental Protection, and Fire Safety Responsibility Agreements," covering 100% of employees.
Trade Union
Leadership Team
Safety Supervision and Training Group
Safety Committees of Subsidiary CompaniesSafety Committee LeadershipGroups of Subsidiary Companies
Trade Union ofSubsidiary Companies
Safety Committee Leadership GroupWork Safety Committee
Occupational Health and Safety Management System
We consistently adhere to the work safety management guidelines of "prevention first, comprehensive management, and civilizedproduction," ?rmly establish the concept of safe development, strengthen the awareness of work safety responsibility. We implementlaws and regulations such as the "People's Republic of China on Work Safety," "Fire Protection Law pf the People's Republic of China,""Regulations on Work Safety License," "Regulations on Safety Supervision over Coal Mines," "Regulations on Safety Management ofHazardous Chemicals," "People's Republic of China Occupational Disease Prevention and Treatment Law," and "Regulations on Work-related Injury Insurance." We continue to re?ne our work safety management system guided by the "Basic Norms for Work Safety" and"Group Work Safety Supervision and Management Regulations" to ensure that work safety activities are conducted in accordance withthe law. Each subsidiary company within our corporation, in accordance with their own business realities, develops and improves theirrespective management systems related to occupational health and safety.
Management Systems related to Occupational Health and SafetyGroup Work Safety Supervision and Management RegulationsBasic Norms for Work Safety
Work Safety Responsibility System》Work Safety Assessment Regulations Safety Objectives and Targets Management SystemFire Safety Management SystemWork Safety Education, Training, and Assessment SystemWork Safety Investment Guarantee System
Hazard Management SystemHazard Identification and Management SystemHigh-altitude Operation Safety Management SystemConfined Space Operation Safety Management SystemHazardous Chemicals Management SystemHazardous Operations Management Regulations
Work Safety Management Departmentof Subsidiary Companies
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At our tungsten smelting production base inGanzhou，we established a trade union memberevaluation system, organizing a written democraticevaluation once a year, covering propagandaeducation, rights protection, contact with themasses, assistance for difficulties, and good deeds.Suggestions collected from employees will serve as areference for the new term of the trade union's work.In 2023, the democratic evaluation satisfaction ratereached 96.7%.
At our cutting tools production base in Xiamen，we have regulations for employee working hours, prohibitingdepartmental non-compliance assessments or overtime labor. Employees are encouraged to report to the tradeunion or initiate complaints or reports through complaint hotlines or email if they encounter such situations.Complaint channels are publicly announced to all employees.At our battery materials production base，we formulated the "Employee Complaint Management Regulations",allowing employees who believe they have received unreasonable, unfair treatment, or have experiencedgender discrimination, disability discrimination, ethnic discrimination, sexual harassment, or privacy invasionto file complaints through written materials, text messages, emails, and suggestion boxes to their supervisors,the trade union, HR department, and the general manager. Relevant departments investigate and providefeedback within a specified time, effectively protecting employees' interests.
At our tungsten smelting production base in Longyan，we carry out "Technical Improvement and Rationalization
Suggestion" activities, encouraging employees to actively offer ideas and suggestions. If suggestions areadopted, appropriate rewards will be given.
（补充图片）
At our battery materials production base，we established an "EmployeeRationalization Suggestion" online feedback collection channel, providingemployees with a convenient platform for offering suggestions. In 2023,a total of 7,795 employee rationalization suggestions were collected andsolutions implemented.
7,795 employee suggestionswere collected with solutionsprovided7,795
96.7
%
Employee Suggestion CollectionHighlight|
Conducting Democratic EvaluationsHighlight|
Employee Complaint ManagementHighlight|
the democratic evaluationsatisfaction rate reached 96.7%
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Employee DevelopmentWe strive to make XTC a platform for talent aggregation, providing ouremployees with a fair competition platform, diverse training opportunities,and clear career development paths to enhance talent competitivenessin the rapidly changing market environment. We carry out targeted talentechelon training, develop a leadership competency model and supportingmanagement systems, actively introduce and cultivate core talents, andprovide talent assurance for the high-quality development of the enterprise. Career DevelopmentWe have established a comprehensive performance management andpromotion mechanism. Guided by our human resource policies, eachsubsidiary sets differentiated employee promotion channels accordingto their actual situations. We create a fair, just, and open competitionmechanism within us to fully mobilize the initiative and enthusiasm ofall employees, achieving an organic integration of personal growth andsustainable development of us.During the reporting period, based on annual strategic goals andcombined with a points system, we further perfected learningmaps and related educational training outlines for each sequence,formulated a first echelon construction plan for headquarters-directmanagement cadres, selected outstanding talents from subsidiarycompanies, designed personal development plans, and carried outtargeted training. On the other hand, we issued group cadre echelonconstruction operation guidelines, encouraging subsidiary companiesto follow policy guidance, combine their own situations, furthersupplement and perfect the human resource management systemand cadre echelon construction system plans, set diversified careerdevelopment channels suitable for their own business, and ensure thehigh match and stability of the employee team.
At our tungsten smelting production base in Ganzhou，we formulated
the "Job Qualification Management Regulations", setting three careerdevelopment sequences: management, technical, and professional. Basedon needs, job sequences were subdivided into sub-sequences. During thereporting period, we conducted a comprehensive job qualification gradeevaluation covering the above three sequences. Eligible employees couldapply, and higher-grade employees, besides submitting materials for review,also participated in an on-site defense. Finally, job qualification grades,positions, and salaries were adjusted according to the evaluation results.
At our cutting tools production base in Xiamen， in line with leanproduction requirements, we established a team leader promotionmanagement mechanism. Employees need to meet requirements inoperational skills, group star levels, lean skills, performance outcomes, andcorporate values to obtain job qualifications. During the reporting period,we organized graded review assessments and selected the first batch ofexcellent first and second-level team leaders
Grade Evaluation for Job Quali?cationHighlight|
Team Leader Promotion ReviewHighlight|
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To select and train senior management reservetalents who align with corporate culture andpossess general manager competencies, weinternally selected 43 "high education, highperformance, high IQ, high EQ" talents to jointhe 2023 "Young Talent Program". The projectrevolves around the six core functions of ageneral manager: "setting strategy, budgeting,asking about performance, leading teams,building mechanisms, controlling risks",conducting mid-year training assessments, andimplementing year-end elimination assessments,with unqualified participants exiting the trainingprogram.high IQ
high
4Htalents
"Young Talent Program" Talent Training ProjectHighlight|
Employee TrainingWe encourage employees to continuously learn and develop themselves throughout their careers, fully unleash their potential, andenhance the professional skills and comprehensive qualities needed. We have developed the "Training Management Guiding Principles"and perfected the talent training system, providing various training resources to help employees grow steadily. Our talent training systemrelies on the support of "XTC Academy" and "Xiaoming Learning". Through "XTC Academy", we offer specialized training, enablingemployees of all ranks to obtain suitable learning opportunities and quality resources to continuously improve their professionalcapabilities; through "Xiaoming Learning", we conduct online training covering all employees.Our training operation system is composed of learning maps/credit systems, training outlines, course systems, and group trainingmanagement guidelines, divided into regular talent training projects and group key talent training projects. Regular talent training projectsinclude new employee induction training and in-service employee capability enhancement projects, while group key talent trainingprojects include talent echelon training and annual strategic talent training projects.
higheducationhigh EQ
performance
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For every new graduate joining us, we assign a senior predecessor as a mentor, responsible for one-on-one pre-job training and cultivation. Through systematic and diversified training, we establish a learning and exchangeplatform to help new employees quickly grasp relevant theoretical and practical knowledge, broaden theirhorizons, and improve execution and management skills.
College-Enterprise CooperationBased on the principle of "social participation in education and education serves society," we actively engage in university-enterprisecooperation with Xiamen University, Northeastern University, Wuhan University of Technology, Central South University, University ofScience and Technology Beijing, and Beijing University of Technology, among others. This collaboration aims to foster close cooperationin "production, study, research, and application," including the construction of internship bases, cultivation of industrial talents,establishment of awards and scholarships, and sponsorship of relevant competitions.We signed a master's degree graduate education cooperation agreement with the School of Electrical Engineering and Automation atXiamen University of Technology, jointly establishing a "Master's Degree Graduate School-Enterprise Joint Training Working Group."Under the guidance of the joint training steering committee, we define training objectives, devise in-school and enterprise trainingplans, implement the training process, ensure the quality of training, and establish a mechanism for regular consultation meetings. Thisapproach innovates the talent cultivation model for professional master's degree graduate education.
Our agreement with Jiangxi University of Science and Technologyinvolves setting up engineering projects and research topics forcollaboration in areas such as tungsten mining and selection, platformconstruction, patent applications, and talent cultivation. During thereporting period, our strategic rare metal mineral resources greendevelopment and utilization key laboratory (in preparation) and thetungsten resources efficient development and application technologyMinistry of Education Engineering Research Center were successfullyinaugurated at the Xingluokeng Tungsten mining research base.In collaboration with Fuzhou University, we established a studentsocial practice base and set up a "Rare Earth Advanced MaterialsProfessional Degree Master's Corporate Class" to cultivate talentsin rare earth advanced materials. During the reporting period, apractice team of 21 people led by Niu Qiuyue, the Secretary of theYouth League Committee of the School of Materials Science andEngineering at Fuzhou University, visited our us for an exchange visit.
Xiamen Honglu "Senior Leading" Training ClassHighlight|
Jiangxi University of Science and Technology Signing Ceremony
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At our rare earth smelting, separation, and material production base in Changting，we cooperate with Longyan Technician
College, Minxi Vocational and Technical College, Changting Vocational College, Hunan Non-ferrous Metals Vocational & TechnicalCollege, and Jiangxi New Energy Technology Institute to offer joint education programs. We adopt a "custom class" and "dualsystem" vocational education model, send teachers for instruction and practical training, organize site visits, and build an "reservepool" of outstanding graduates. During the reporting period, we added new partners including Northeastern University, FujianUniversity of Technology, and Fuzhou University.
√ We signed a cooperation agreement with the School of Materials Science and Engineering at Northeastern University to
establish a teaching practice base, held a school-enterprise cooperative practice education base unveiling ceremony,appointed corporate internship mentors and part-time professional master's mentors, and were recognized as an excellentpractice teaching base by Northeastern University for 2023.√We signed a school-enterprise cooperation agreement with the School of Materials Science and Engineering at Fuzhou University andheld an internship and training base and branch co-establishment unveiling ceremony.√We signed a school-enterprise cooperation framework agreement with Fujian University of Technology to jointly establish an"Outstanding Engineers College."At our cutting tools production base in Xiamen，we actively engage in joint exchange activities with Xiamen University, Universityof Science and Technology Beijing, Huaqiao University, and Chengdu Aeronautic Polytechnic, expanding the channels for university-enterprise cooperation dialogue.
School-enterprise cooperation - Beijing University of Science andTechnology exchanges with Xiamen Golden Egret
In 2023, we attended spring job fairs for the class of 2023 at Central South University, Northeastern University,Jiangxi University of Science and Technology, etc. We held "High-Level Talent Exchanges" for the class of2024 graduates, providing potential top talents with the opportunity to learn about our corporate culture,development prospects, and talent policies. This attracted excellent students whose values align with ours tojoin us, continuously enhancing our core competitiveness.
Campus Recruitment of GraduatesHighlight|
√ In collaboration with the School of Mechanical
Engineering and Automation at Fuzhou University, weestablished the Fuzhou University Mechanical-XiamenJinlu Advanced Processing Joint Innovation PracticeBase. A special showcase was set up in the MechanicalSchool to help mechanical engineering students learnabout our products, creating a model university-enterprise cooperation base.
√ As the hosting enterprise for the 20th simulated
recruitment competition at Xiamen University, weparticipated in and supported the entire event,offering employment guidance to students.
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360-DegreeAssessment
BalancedScorecard
Differentiating group level, subsidiary level, and product division level objectives basedon business characteristics and establishing a five-dimensional goal system.
Conducting annual competency evaluations for management team members, withtraining and self-improvement plans developed based on assessment results.
Breaking down company and product division indicators into departmental andpositional goals for monthly or quarterly assessments as needed; project performanceindicators are broken down into monthly goals for continuous tracking.ObjectiveManagement:
We encourage employees to fully utilize their strengths, driving innovation and leading valuecreation. By corporatizing emerging or incremental businesses, we establish a long-termincentive and constraint mechanism of shared interests and risks, allowing outstanding and coreemployees to hold shares. This approach motivates core talents, cultivates high-level talents withstrong independent innovation capabilities, and provides robust talent support for achieving ourstrategic development goals.During the reporting period, we implemented the third phase of the employee stock ownershipplan, with 57 employees participating, holding a total of 542,300 shares. Among these, sharesheld by ordinary employees outside our directors and senior management accounted forapproximately 80% of the total shares for this plan.
√ The first unlocking period of the 2020 Restricted Stock Incentive Plan's grant conditions
was met, and relevant procedures were carried out for incentive recipients to lift the salesrestriction.
√ Subsidiaries Golden Dragon Rare-Earth and Xiamen Honglu implemented mixed-ownership
enterprise employee stock ownership through capital increase and share expansion,with Xiamen Honglu's employee stock ownership plan successfully implementing its firstdividend distribution.
Equity
Incentive
Xiamen Honglu Employee Stock Ownership
Contract Signing Ceremony
542,300
80%
Compensation and Performance
We have established systems such as the "Total Wage Management System," "List of Special Matters of Total Wage and ManagementMeasures for Individual Personnel," "Regulations on Rewards for Receiving National Policy Bonuses," and "Guidance on Annual SalaryImplementation Plan for Product Division Management Teams," among others. These systems ensure that employee compensationis aligned with their job performance and competitive with industry standards, reflecting their value contribution and marketcompetitiveness. Our salary structure combines wages, performance bonuses, allowances (subsidies), special awards, and overtimepay, ensuring that employees receive labor compensation that is in compliance with government minimum wage standards. Salaries arepaid monthly on time, with overtime wages calculated and paid according to the law. Our compensation system, built on the 3P theory(Position, Ability, Performance), primarily focuses on position skill wages, supplemented by piecework and market negotiation systems,standardizing compensation items and standards to ensure internal fairness.Our performance management is carried out through various assessment methods, continually improving the reward mechanism forscienti?c research achievements, increasing technical incentives, and fostering ongoing performance communication and coaching. Thisapproach stimulates employee innovation and enthusiasm, e?ectively attracting and retaining talent:
57 employees joined theshareholding plan
holding 542,300 sharesapproximately 80% held byordinary employees
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Employee Benefits
In addition to legally mandated contributions to medical insurance, social security, housing provident fund, and ensuring statutoryholidays, we offer corporate annuities, accident insurance, birthday coupons, and various consolation benefits.
"XTC Featured Canteen" provides employees with high-quality, nutritious,diverse, and convenient dining options, continuously innovating the diningstyle and enriching the employees' taste experience. We continuously optimizethe dining environment and strictly control food safety and environmentalhygiene to ensure a healthy diet for employees.Depending on location and conditions, we and our subsidiaries providehousing support.In Xiamen, we o?er multiple sta? dormitories, providing public rental housing
for eligible employees.In Jiujiang city, we provide free housing for outstanding employees and core
sta?, and free single apartments for new graduates.In Changting, Longyan, we have established "Non-local Talent Welfare
Assurance Management Regulations," prioritizing sta? dormitory arrangements
and providing low-interest housing loans for key talents.We offer a hardship assistance plan for employees in need, providingscholarships for their outstanding children to help them achieve their collegedreams.
Employee Dormitory
Assurance
Hardship Assistance Plan
"XTC Featured
Canteen"
Objectives/IndicatorsCompletion Status
Occupational Health and Safety
At XTC, we always adhere to the philosophy of "safety first, people-oriented,accountability, and local management." We establish and perfect a work safetymanagement system guided by annual occupational health and safety managementtargets, committed to providing a safe and healthy work environment and conditionsfor employees, suppliers, contractors, and other stakeholders. Up to now, 17 of ourenterprises have passed the ISO45001 Occupational Health and Safety ManagementSystem certification, covering 47% of the main production enterprises under thecompany. In addition, we refer to the "Guideline of China occupational safety andhealth management system" (GB/T 33000—2016) and continuously promote thestandardization and informatization of work safety management, constantly improvingour occupational health and safety management level. In this reporting period, wehave had 6 enterprises pass the secondary work safety standardization certi?cation, 19enterprises pass the tertiary work safety standardization certi?cation, and 22 enterpriseshave launched the work safety management informatization system.
Annual work-related injury rate below 0.3‰CompletedZero fatalities among employeesCompletedNumber of incidents involving major accident hazards identified during provincial ornational safety inspections that result in public notices, production halts, penaltiesfor responsible persons, or inclusion in the work safety adverse record "blacklist" is 0
CompletedNumber of major safety accidents, major mechanical equipment accidents, andmajor fire accidents is 0
Completed
2023 Occupational Health and Safety Management Objectives/Indicators
enterprises pass the tertiary worksafety standardization certi?cationenterprises pass the ISO 45001Occupational Health and SafetyManagement System certi?cation
enterprises pass the secondary worksafety standardization certi?cation
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Occupational Health and Safety Risk ManagementAt XTC, we firmly implement the "Group Work Safety Supervision and Management Regulations," utilizing methods such as JobHazard Analysis (JHA) and Safety Check list (SCL) to identify risk nodes and potential hazards in the production process, andperforming risk assessments through the Operation Safety Hazard Assessment Method (LEC). After identifying the types and levels
管理方针
XTC Group Safety ManagementZero Loss Safety Incidents and Property LossHazard Identi?cation
Risk Grading Control
Risk Assessment
Hazard Identi?cation
Risk Level Classi?cation
Hazard Grading andClassi?cation
Typical Control Measures
Graded Hazard Management
OperationalActivities orEquipment and Facilities
Laws and Regulations
Technical Speci?cations
Engineering Technical MeasuresManagement MeasuresTraining and EducationPersonal ProtectionEmergency ResponseJob Hazard Analysis (JHA)Safety Checklist Analysis (SCL)Job Condition Hazard Assessment
Method (LEC)
Company LevelProfessional LevelWorkshop LevelTeam LevelPosition Level
Establish Inventory and Database Safety Risk Inventory and Database + Hazard Identi?cation and Management Ledger or DatabaseDevelop System Plans Major Safety Risk Control Measures + Safety Risk Grading Control System + Hazard Identi?cation and Management System + Major Hazard Management Implementation Plan Risk Noti?cation and Risk Mapping Major Safety Risk Notice Board + Job Safety Risk Noti?cation Cards + Enterprise Safety Risk Four-Color Distribution Map + Enterprise Operational Safety Risk Comparison ChartEstablish Management System Safety Risk and Hazard Investigation Information Management System
ComprehensiveSpecializedSeasonalHolidayRoutine Inspection
General Hazards,Major HazardsOn-site Management,Basic Management
Major RiskSigni?cant RiskModerate Risk
Low Risk
Requirement: Recti?cation measures,responsibility, funding, deadlines, andcontingency plans “?ve in placeAcceptance: Establish a hazardidenti?cation and management ledger
Various Hazards
of occupational health and work safety risks, we actively carry out hidden danger inspections and management, and formulatean annual inspection plan. We establish and implement a dual prevention mechanism of "risk grading control and hidden dangerinspection and management," enhancing the management of all types of safety risks. Strict implementation of graded controlprocesses ensures effective safeguarding of work safety.XTC Group Risk Grading Control and Hazard Identi?cation and Management System Diagram
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During the reporting period, we actively implemented the following measuresto reduce occupational health and safety risks in production and businessactivities:
√ Introduce advanced technology and equipment to improve production
e?ciency and reduce the probability of safety accidents.
√ Prepare risk grading control and hidden danger inspection and management
system diagrams, identify and assess hazards in the production process, andtake concrete and e?ective measures to control them.
√ Thoroughly carry out special work to enhance safety on site, inspecting 2,045
speci?c hidden dangers, with 1,847 recti?ed, achieving a recti?cation rate of
90.3%. For unrecti?ed hidden dangers, we set closure deadlines and assign
personnel to follow up and supervise, ensuring that all hidden dangers arerecti?ed on time and with quality, achieving a 100% closure rate.
2,0451,847
90.3%
inspected 2,045 speci?chidden dangers1,847 were recti?edachieving a recti?cationrate of 90.3%
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Work Safety Inspections
To prevent and reduce work safety accidents, our headquarters' operations management center, together with work safety managementdepartments of subsidiary enterprises, conduct work safety inspections according to the annual inspection plan:
√ Each production base team conducts self-inspections on work safety weekly.
√ Work safety management departments regularly conduct comprehensive inspections, pre-holiday, seasonal, "Safety Month (Quarter)
Activity Checks," and other special inspections.
√ The headquarters operations management center periodically spot-checks the work safety situation of subsidiary enterprises and
conducts on-site inspections in cooperation with third-party professional organizations.For hidden dangers identified during inspections, we adhere to the "territorial management" principle, implement closed-loopmanagement, develop rectification measures and deadlines according to the severity of the dangers, and establish a hidden dangerinspection and management ledger to ensure timely and e?ective handling of hidden dangers. Additionally, we encourage employeesto take photos with mobile phones, cameras, etc., to timely record hidden dangers at the production site and upload them to theEnvironmental Health and Safety (EHS) management system, which promptly notifies responsible departments to ensure timelyrecti?cation of work safety hidden dangers, achieving convenience, e?ciency, and inclusiveness in work safety management, safeguardingour work safety.
Emergency Management DrillsWe follow the "Safety Accident Emergency Plan Management Measures" and "Safety Accident Emergency Regulations," have establishedthe "Group Work Safety Supervision and Management Regulations," "Management Measures for Special Emergency Plans for ExtremeWeather Events," and "Group Emergency Plan Management Guidelines," and in cooperation with professional third-party units, revisethe "Emergency Response Plan for Sudden Environmental Events," establishing a comprehensive emergency management system. Theheadquarters and subsidiary enterprises develop corresponding preventive measures, emergency plans, and processing procedures forvarious safety risks, ensuring a rapid and e?ective response in emergencies. Based on the content and requirements of related systems,regular environmental protection training and emergency drills are conducted for employees. Some subsidiary enterprises invite localenvironmental protection bureaus and other superior departments to participate in full-factory emergency drills for sudden environmentalevents, evaluating the e?ectiveness of the drills, aiming to achieve the goal of "everyone speaks safety, everyone knows emergency."During the reporting period, in conjunction with the Work Safety Month theme, we conducted special training on safety emergencymanagement. The goal was to enable employees to deeply learn and master the professional theories, tools, and methods related tosafety emergency management, emergency plan formulation, and emergency drills, effectively enhancing their safety awareness andemergency capabilities, thus laying a solid foundation for our work safety work. We and our subsidiaries organized 648 times emergencydrills, covering scenarios such as chemical leaks, fire emergencies, natural gas boiler gas leaks, flood and typhoon prevention, anti-terrorism, mine safety drills, and nighttime evacuation exercises.In the mining process，we established an environmental graded response mechanism based on the urgency of environmentalaccidents/events, the level of harm caused, the scope of impact, and we and employees to handle such situations. We actively conductenvironmental emergency drills and also carried out joint regional drills with neighboring enterprises to strengthen regional emergencycollaboration capabilities. Additionally, we have established a system of rewards and accountability for environmental emergency work,recognizing and rewarding groups and individuals who make outstanding contributions, and punishing delays, false reporting, or othernegligence and misconduct in emergency management according to our "Environmental Protection Management Regulations" andrelated provisions.
In the production of advanced materials process，we strictly adhere to the ISO14001 management system requirements, developing
an environmental risk and opportunity control chart, conducting environmental risk and hazard identi?cation, and deploying measuresto address potential risks and opportunities to minimize the potential impact of environmental risks. To address sudden environmentalevents, we have formulated corresponding environmental emergency plans and compiled emergency resource surveys and environmentalrisk assessments for operational sites.
In Ninghua Xingluokeng，we implement a strict safety inspection system: at least one company-level major safety
inspection monthly, department-level safety inspections monthly, workshop-level safety inspections weekly, team-levelpatrols daily, and position-speci?c safety inspections at the beginning and during each shift to ensure smooth safety shifttransitions. For identi?ed hidden dangers, those that can be immediately recti?ed must be corrected on the spot, and thosethat cannot be immediately corrected are ensured to have a closed-loop process according to the "three determinationsprinciple"; depending on the severity of the hidden danger and the responsible unit, the responsible unit is required toorganize an analysis of the fundamental causes of the hidden danger and take targeted measures to strengthen preventionmeasures, fundamentally eliminating the possibility of recurrent hidden dangers. Additionally, we regularly reportinspection and hidden danger management situations, organize learning sessions for workshops and teams to improvehidden danger inspection capabilities, and mobilize grassroots workshops and teams for comprehensive self-inspections toavoid overlooking similar hidden dangers. During the reporting period, Ninghua Xingluokeng identi?ed 80 hidden dangers,with a 100% on-time recti?cation completion rate.
Mining Work Safety InspectionHighlight|
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In the deep processing stage，we have formulated an "Emergency Plan for Sudden Environmental Events," implementing nationalenvironmental protection and safety laws and regulations to ensure that sudden environmental events can be controlled promptly,preventing their escalation. We effectively organize rescue operations, ensuring the safety of the surrounding environment and thepersonal and property safety of the surrounding community, and organizing employee training and drills on environmental protection toprepare for sudden events.
In Xiamen Honglu，we conducted emergency drills to enhance emergency response levels; further improvingand perfecting our emergency rescue system, effectively integrating various emergency resources, ensuringresponsibility implementation, strengthening team building, enriching emergency material supplies, andperfecting emergency information management. We conducted three emergency rescue equipment trainingsessions with a total of 140 participants, further enhancing the operational application level of the emergencyteam. We organized various departments to conduct tabletop and live-action drills involving 14 types in a total of19 sessions, comprehensively improving the departments' ability to handle various types of sudden events.
Tungsten and Molybdenum Wire Production Base Emergency Drill TrainingHighlight|
Innovation-Driven, Suppliers, and Customers Rural Revitalization and Public Service People
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Occupational Health and Safety TrainingWe place great importance on training our employees in occupational health and work safety. According to the "Group Work SafetySupervision and Management Regulations" and "Basic Work Safety Norms" and other systems, we continuously and thoroughlycarry out occupational health and work safety training and education activities to continuously improve employees' awareness ofwork safety and occupational health. During the reporting period, we formulated and completed the annual training plan, whichincluded courses on safety standardization, work safety responsibility system and safety management system training, emergencyresponse plan training for safety incidents, and environmental safety hazard identification, among others. Additionally, we alsoconduct contractor construction safety training for external associate units to enhance their on-site construction standardsand safety awareness. During the reporting period, we enhanced employees' safety awareness and operational skills throughspecial training in chemical management, electrical safety, working at heights, confined spaces, lockout tag-out, and emergencymanagement. During the reporting period, we organized work safety training involving 64,957 participants, covering 100% of ouremployees.
We launched the "XTC Safety Micro-Courses" project, developing and planning over 552 safety micro-courses, 442of which have been reviewed by experts and all uploaded to the Xiaoming Learning Platform for all employees. Byusing the Xiaoming Learning Platform's role-based learning and testing features, we established a safety micro-course credit conversion and training assessment mechanism, fully engaging employees in course development andlearning. During the reporting period, a total of 3,570 employees participated in the safety micro-course training.
64,957
100%
XTC Safety Micro-CoursesHighlight|
64,957 participants joined worksafety training
employee coverage rate 100%
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In Xiamen Honglu, we focused on the core concept of "full participation, top-level safety commitment,management-level safety empowerment, employee-led safety management, and stakeholder safety activities,"conducting distinctive activities such as "Let’s Chat" and "Safety Commitment Tree" to engage all employees andcultivate a culture of safety:
√ Conducted a painted helmet safety activity, invited 30 employees' children to paint safety helmets to
enhanced safety awareness through fun and education.
√ Organized a safety-themed flying chess activity, where all company employees formed 20 teams to learn safety
knowledge and skills in a relaxed and enjoyable atmosphere.
√ Initiated safety knowledge on construction sites, providing safety advice and warnings to contractors on-site
to ensure smooth progress in work safety.
√ Conducted a company-wide safety slogan collection event, with 201 participants contributing 448 slogans.
√ Organized an online safety knowledge competition, with 1,266 participants taking part, significantly enhancing
employees' safety awareness and knowledge level.
In Ninghua Xingluokeng, we formulated an annual safety education and training plan, signed by the generalmanager at the beginning of the year as a guiding document for all departments, with each department formulatingand implementing its safety education plan and compiling training materials for implementation in workshops andteams. In terms of regular safety education and training, we adopted various measures:
√ Monthly regular work safety meetings are held, where safety committee members and workshop managers
and above participate in safety training.
√ Utilize the 15 minutes of pre-shift meetings to study safety knowledge and policy documents, ingraining safety
awareness.
√ Regularly hold safety fun activities, allowing employees to deepen their understanding of safety in a relaxed
and enjoyable atmosphere.
√ Invite external units and experts for special safety education periodically, providing employees with more
comprehensive and professional safety guidance.During the reporting period, Ninghua Xingluokeng enhanced employees' safety awareness and operational skillsthrough special training in chemical management, electrical safety, working at heights, confined spaces,lockout tagout, and emergency management.
Supplier/Contractor Health and Safety ManagementWe continuously revise and improve the "Supplier Code of Conduct," setting clear requirements for suppliers/contractors regardingemergency preparedness and response, chemical management, infectious disease preparedness, and response measures. Westrictly standardize and strengthen safety management work to ensure timely identification and elimination of safety hazards.Additionally, we require suppliers/contractors to establish quantitative targets such as zero accidents and zero injuries,
continuously enhance occupational health and safety performance, and pay attention to the physical and psychological healthof their employees, actively creating a favorable occupational health and safety environment, and building a safe, healthy, andsustainable supply chain.
Mining Safety Education and TrainingHighlight|Tungsten and Molybdenum Wire Production Base Safety Education and TrainingHighlight|
Innovation-Driven, Suppliers, and Customers Rural Revitalization and Public Service People
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Occupational Health andSafety Incident Management
We consistently adhere to the "safety first, prevention-oriented"principle, and by establishing a comprehensive work safety incidentmanagement system, we effectively prevent and control incidentsto create a safe and healthy work environment for our employees.We require all employees to report any work safety incidentsimmediately, and we establish an investigation team to conduct acomprehensive inquiry into the causes of the incidents, analyze thecourse, reasons, and responsibilities of the incidents, and proposecorrective measures. Based on the severity and responsibility ofthe incident, we process the responsible personnel and properlyaccommodate the injured. Depending on the severity and damageof the incident, we promptly submit a work injury identificationapplication to the local Human Resources and Social SecurityBureau to ensure that the injured receive work injury insurancebenefits. We regularly assess the management of work safetyincidents, continuously improve incident management systems andprocesses, and enhance incident handling capabilities to ensure ourwork safety.During this reporting period, we and our subsidiaries recorded26 persons injured in occupational incidents, 26 occupationalincidents, and zero work-related deaths.
Occupational Health Management
At XTC, our business processes involve mining, production ofadvanced materials, and deep processing, where employeesface potential occupational health risks such as noise and dust.To effectively address these risks, we place great emphasis onoccupational health management and implement a comprehensiveoccupational health and safety strategy to minimize occupationalhealth risks, striving to provide all employees with a safe and healthyworking environment.
Occupational Disease PreventionWe strictly adhere to the 'Basic Norms for Safety Production',establish and improve a systematic health monitoring and preventionprocedure, actively identify, assess, and manage occupationalhealth hazards, standardize the investigation and handling processof occupational disease and hazard accidents, to prevent potentialaccidents and health injuries caused by work, providing employeeswith a safe and healthy working environment and conditions.
persons injured inoccupational incidentsoccupational incidents work-related deaths
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| 2023 Sustainability Report
Health Examinations
We continuously monitor employees' occupational health, conducting pre-employment, duringemployment, and post-employment health examinations for employees working in hazardousenvironments. We archive examination results and make necessary job adjustments based onemployees' health conditions.We hire qualified third-party professional institutions to regularly conduct comprehensiveoccupational health risk assessments for subsidiaries involved in mineral extraction andprocessing, checking production processes, equipment layout, sanitary conditions, occupationalhazard factors and their severity, occupational disease prevention and emergency rescuefacilities, employee occupational health monitoring, personal protective equipment used, andoccupational health management conditions, continuously improving based on inspectionresults.For departments and workplaces with occupational hazards, we post occupational hazardwarning signs at the entrance to inform individuals entering the area about the hazards; newemployees sign an occupational hazard noti?cation form to ensure they are fully aware of theoccupational disease risks and preventive requirements of their positions.
We strictly comply with national laws and regulations, equipping employees with quality andsuitable labor protection items as per the "Labor Protection Items Management Regulations," andpost corresponding signs in related areas to guide correct and standardized usage by employees.
We regularly conduct occupational health and safety training or lectures, encouraging employeesto develop good health concepts, promote knowledge about occupational hazard prevention andmeasures, and actively intervene in employees' occupational health.
Hazard Factor Analysisand Assessment
OccupationalHazard Warnings
Labor Protection
Occupational HealthEducation
Reduction ofHazard Sources
Emergency Medical Care
Occupational Disease Prevention
Psychological capital is the positive psychological resources possessed by individuals and is a key factor in enhancing employeeperformance, motivation, and overall job satisfaction. Since 2021, we have initiated a project to enhance the management ofpsychological capital e?cacy, piloting it in our subsidiary companies.Psychological Capital Efficacy Management
Enhancement Project Process of Psychological Capital E?cacy Management
Organizational Diagnosis toIdentify Psychological/NeedsCharacteristicsPsychological CapitalMeasurement Scale
Diagnosis ofPsychologicalCapital Issues
OrganizationalOptimization
CulturalIntegrationWe regularly organize "Talent Reviews," conduct in-depth thematic research and interviews, and continuously focus on employees'psychological and mental states. By analyzing and discussing improvement measures, we help employees enhance their ability toface stress and challenges, boost their confidence, ignite their career passion and vitality, and enhance organizational vitality andcompetitiveness.
We continuously undertake workplace equipment modifications and process optimizations,introduce advanced technologies, and improve working environments to reduce harmful factorsand potential risks.We establish and implement "Health Care Room Management Regulations" and "First AidManagement Regulations," set up health rooms, equip workplaces with medical kits andAutomated External De?brillators (AED), and regularly manage these provisions
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixInnovation-Driven, Suppliers, and Customers Rural Revitalization and Public Service People
| 2023 Sustainability Report
Cultural and Sports ActivitiesWe provide employees with facilities such as badminton courts, basketball courts,soccer ?elds, and gyms. Through organizing a variety of cultural and sports activities,we care for the physical and mental health of our employees.
Technical center basketball gameTechnical center tug of war contest
Mini Marathon RaceExciting moments on the field
Annual meetingThe InternationalWomen's Day activities
Governance
Governance for Sustainable DevelopmentPrevention of Commercial Bribery andUnfair Competition
Governance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
In the new era of corporate development, we deepen governance structure reforms, strengthen industrial foundation, fosterinnovation, continuously enhance our corporate strength, and boost our competitiveness. Professional and scientific corporategovernance is the cornerstone for achieving high-quality development. Adhering to the corporate principle of "advance steadily,endeavor to enhance the market share, and focus on long-term interests," we are driven by "technological innovation, managementinnovation, and institutional innovation", guided by the highest standards of business ethics, and supported by institutional andcultural construction to achieve steady operations.
Governance for Sustainable Development
Regularly disclose the annual sustainability report to explain the effectiveness of ESGgovernance to stakeholders.
Optimize and improve the governance structure and policies for sustainabledevelopment according to the actual operation and business development needs.Promote the construction of a comprehensive risk managementsystem and improve the risk list and risk map.
Key performance for the construction of the sustainable development governance system in 2023
No conflicts of interest occurred throughout the year.
|2023年度可持续发展报告
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
ESG Governance StructureTo enhance the governance mechanism for sustainable development and improve the management level of ESG issues, wecontinuously strengthen a top-down, clearly defined ESG governance framework. At the board level, we have established a Strategyand Sustainable Development Committee to assist the board in guiding and supervising ESG-related matters and reporting tothe board. At the operational management level, we have formed an ESG Working Leadership Group composed of companymanagement. At the execution level, we have established an ESG Working Office and ESG Working Special Teams responsible forimplementing daily management affairs related to ESG issues.
Board of Directors
Operational Leadership Level
Execution Level
Landing Practice Subjects
Board ofDirectorsAuditCommittee
Nomination andRemunerationEvaluationCommitteeStrategy andSustainableDevelopment
CommitteeResearch and proposerecommendations on ESG strategy,material issues, and ESG-related mattersMonitor and inspect the implementationand improvement of ESG workReview ESG-related reports
Review and establish ESG goals andstrategies based on signi?cant ESGissues and risks, formulate annualwork tasksReview ESG-related policies andmatters, and report to the Strategyand Sustainable DevelopmentCommitteeListen to and review the ESG workplans and outcome reports of ESGworking group and each subsidiarycompany
Collaborate with Each subsidiarycompany to jointly formulate,promote, and implement ESG goals,strategies, and policies, regularlymonitor and report on the executionof related tasksManage daily ESG information andcollect annual ESG information,assisting in compiling ESG reports
Implement ESG goals, strategies,and policies, and carrying out relatedwork
Director Chair (Leader of the
Leadership Team)
Strategic Development
Center
Executive Vice President
Board Secretary Office
Administrative VicePresident
Human ResourcesManagement Center
Secretary of the DisciplineInspection Commission
Discipline Inspection Office
ESG Strategy andInvestment
Board Secretary
Office
Environmental (Dual Carbon, Energy,Environmental Management)
Mining Business Unit
Legal Department
Social
President Assistant
Audit Department
GovernanceFinance VicePresident
Financial ManagementCenter
CEO
Operations Management
Center
ESG WorkingLeadership Group
ESG Working Office
Each subsidiary company
ESG WorkingSpecial Teams
Governance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
We adhere to the principles of sustainable development in our corporate operations and development. We comply with the lawsand regulations of the regions where we operate and continuously optimize policies regarding sustainable development issuesaccording to business needs. We declare our goal to become an ethical role model enterprise and establish relationships ofmutual trust and mutual benefit with shareholders, employees, business partners, and local indigenous communities and otherstakeholders. We strictly require all companies and employees within our scope of consolidation to comply with the global code ofconduct outlined in our ESG policy statement.
We strictly adhere to the provisions of the Company Lawof the People's Republic of China, the Securities Law of thePeople's Republic of China, and other laws and regulations,as well as the provisions of the Articles of Association. Wehave established a "shareholders' meeting, board of directors,and supervisory committee" governance structure withclear rights and responsibilities, scientific efficiency, andcoordinated operation. We systematically advance the workof the shareholders' meeting, the board of directors, andthe supervisory board, steadily improving the company'soperational performance and promoting sustainable,high-quality development. During the reporting period,we revised governance documents such as the Articlesof Association, Rules of Procedure for Board of DirectorsMeetings, Independent Director System, and working
rules of various special committees in accordance withrelevant laws and regulations, regulatory requirements,and corporate governance practices, providing institutionalsafeguards for the company's compliance, scientific, andefficient governance. We convened a total of 4 shareholders'meetings, reviewing 26 proposals; convened 13 board ofdirectors meetings, reviewing 95 proposals; independentdirectors expressed independent opinions 31 times on majormatters; convened 12 audit committee meetings, reviewing49 proposals; convened 6 nomination and remunerationevaluation committee meetings, reviewing 12 proposals;convened 6 strategy and sustainable development committeemeetings, reviewing 29 proposals; convened 7 supervisoryboard meetings, reviewing 31 proposals.
ESG Policies
Corporate Compliance Operations
ESG Policies
Code of Business ConductAnti-Corruption and Anti-Bribery Management Regulations
Supplier Code of ConductBasic Specifications for Safe ProductionBasic Norms of Environmental Protection
Environmental Protection Statement
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
Our company's board of directors strictly adheres to relevant regulations,regulatory requirements, and the company's "Rules of Procedure for Boardof Directors Meetings" to establish a sound decision-making mechanism,diligently fulfill their duties, and perform their responsibilities in accordancewith regulations. The board of directors has established specialized committeesincluding the Strategy and Sustainable Development Committee, the AuditCommittee, and the Nomination and Remuneration Evaluation Committee. Theproportion of independent directors in each specialized committee exceeds50%, and each committee is chaired by an independent director, providingprofessional advice for the board of directors' decision-making process. As of theend of this reporting period, our company's board of directors consists of eightdirectors, including three independent directors and three external directors.Independent directors leverage their professional expertise to rigorously fulfilltheir duties of professional guidance, review, and supervision in accordance with
relevant regulations and company rules and regulations, ensuring standardizedgovernance, orderly operations, and safeguarding the interests of shareholdersand the company. Members of our company's board of directors have diverseprofessional backgrounds in materials science, deep processing, engineeringmanagement, financial management, risk management, human resourcesmanagement, economics, accounting, law, and compliance management.The professionalism and diversity of the board of directors provide importantguarantees for the company's scientific decision-making and steady operation.Our company's senior management personnel have expertise in various fieldsincluding engineering, finance and accounting, and law. They possess extensiveexperience in operational management, financial management, risk control, andcompliance management. This group includes one female member, accountingfor 20% of the senior management team.
Diversity and ProfessionalismSelection and Appointment of Directors
and Senior ManagementAccording to the "Articles of Association" and the "Nomination and Remuneration EvaluationCommittee Work Rules of the Board of Directors," the Nomination and Remuneration EvaluationCommittee is responsible for carrying out the nomination and appointment procedures forcompany directors and senior management personnel. The committee, considering factors suchas diversity, independence, and professionalism, determines a preliminary list of candidatesfor directors and senior management personnel. After conducting a qualification review of thepreliminary candidates based on the conditions of their appointment, the committee then submitscandidate recommendations to the board of directors. Director candidates, upon approval by theboard of directors, are proposed in the form of a motion for voting by the shareholders' meeting,which ultimately elects the new board of directors. Senior management candidates, upon approvalby the board of directors, are appointed accordingly.
NameOccupationAge
IndustryExperience
Operations Management
Risk Managementand Compliance
FinancialAccounting
Strategy and SustainableDevelopment Committee
AuditCommittee
Nomination and RemunerationEvaluation CommitteeProfessional BackgroundBoard CommitteesAttendance（Boardmeetings and Boardcommittee meetings
Shares Held at theEnd of ReportingPeriod (Shares)Huang Changgeng (Male)Director Chair59100%200,000
Wang Dan (Female)Director42100%0SatoshiYoshida (Male)
Director(Resigned on November 27, 2023)59100%0Hou Xiaoliang (Male)Director58100%0Zhou Min (Male)Director60100%0Wu Gaochao (Male)Director and CEO57100%150,000Ye Xiaojie (Male)endent Director38100%0Cheng Wenwen (Male)endent Director60100%0Zhu Haomiao (Male)endent Director45100%0Zhong Kexiang (Male)Executive Vice President51/100,000Hong Chao'e (Male)Vice President57/100,000Zhong Bingxian (Male)Vice President and CFO48/100,000Zhou Yujun (Female)Board Secretary37/100,000
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
The Nomination and Remuneration Evaluation Committee, a subcommittee of the board of directors, is responsible for formulatingand reviewing the remuneration policies and schemes for company directors and senior management personnel. It is alsoresponsible for establishing assessment criteria for directors and senior management personnel and overseeing the assessmentprocess. According to the "Articles of Association" and the "Nomination and Remuneration Evaluation Committee Work Rules of theBoard of Directors," the remuneration schemes for company salaried directors and senior management personnel are proposed bythe Nomination and Remuneration Evaluation Committee, approved by the board of directors, and submitted to the shareholders'meeting for approval before implementation. External directors and supervisors receive allowances based on the standardsapproved by the shareholders' meeting. The remuneration for the chairman of the board and senior management personnel iscalculated based on the "Annual Salary System Implementation Plan" approved by the shareholders' meeting.
Enhancement of Performance CapabilityWe regularly organize directors, supervisors, and senior management personnel to participate in various training sessionsorganized by regulatory authorities, industry associations, and other entities. This aims to strengthen compliance awareness amongpersonnel, enhance the performance capability of directors, supervisors, and senior management, and improve the scientificgovernance level of the company. During the reporting period, our company's directors, supervisors, senior management personnel,and relevant department staff participated in a total of 29 training sessions organized by securities regulatory commission andsecurities regulatory bureaus, stock exchanges, and listed company associations. The training content covered the latest policiesand regulations, as well as sustainable development governance, among others.
According to our " Implementation Plan for Annual Salary Scheme," the annual salary of the chairman of the board and seniormanagement personnel consists of two parts: basic annual salary and performance-based annual salary. The performance-basedannual salary is tied to the company's economic performance and individual performance evaluations. Additionally, we haveimplemented a rollback mechanism wherein 30% of the after-tax full amount of the performance-based annual salary is reserved as arisk fund. This fund is disbursed after the term audit or departure audit. In the event of significant violations of operational regulationsduring the term, funds may be deducted or confiscated from the risk fund account to prevent relevant management risks.To motivate directors and senior management personnel and ensure the realization of the company's development strategy andbusiness objectives, we have implemented Restricted Stock Incentive Plans and Employee Stock Ownership Plans, establishing along-term incentive mechanism. As of the end of the reporting period, directors and senior management personnel directly hold750,000 shares of company stock in total, accounting for 0.05% of the total share capital of the company.
Clawback Mechanism
Equity Incentive Mechanism
Related-party Transaction
Remuneration of Director and Senior Management
Conflicts of InterestDirectors, supervisors, and senior management personnel of the company shall faithfully fulfill their duties in accordance with thecompany's internal rules and regulations. They shall not use their positions to seek commercial opportunities that rightfully belongto the company for themselves or others, engage in self-employment or operate businesses similar to the company's for others,and shall uphold the maximum interests of the company and all shareholders. To prevent and avoid adverse effects that conflicts ofinterest may bring to the company, directors, supervisors, and senior management personnel shall promptly and actively report tothe company any situations that may involve conflicts of interest, ensuring that their performance is not negatively affected by anyconflicts of interest.
To standardize the company's related-party transactions, enhance the independence and scientific nature of decision-making,and better protect the legitimate rights and interests of all shareholders, especially minority shareholders, we have formulated andcontinuously improved the "Related Party Transaction Decision-Making System" in accordance with relevant laws, regulations,and regulatory rules. This system clearly defines related parties and related-party transaction scope, decision-making proceduresfor related-party transactions, pricing principles and methods, avoidance mechanisms, information disclosure, and other matters.We strictly implement this system to ensure that related-party transactions are implemented in accordance with regulations aftereffective decision-making, guaranteeing fairness, impartiality, transparency, and equity in related-party transactions.
Governance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
We strictly adhere to relevant laws and regulations as well as the company's internal "Information Disclosure System" requirementsto conduct information disclosure work promptly, truthfully, accurately, completely, and fairly. We strive to ensure that all investorshave equal rights to access company information.
In accordance with relevant laws and regulations, regulatory requirements, and the company's "Shareholders' Meeting Rulesof Procedure," we standardize the procedures for convening, holding, and voting at shareholders' meetings. We clarify votingmechanisms such as separate voting and cumulative voting, and provide online voting channels for small and medium-sizedinvestors. We fully respect all shareholders' rights to information, participation, voting, and supervision on major company matters,effectively safeguarding the rights and interests of shareholders, especially small and medium-sized shareholders.
We have established the "Investor Relations ManagementSystem," which clearly defines the basic principles, responsibledepartments and their duties, work content, and methods ofinvestor relations management. We promote and implementinvestor relations management work accordingly. Additionally,we actively promote the application of an information systemfor investor relations management to achieve proactive andrefined investor relations management, continuously enhancingthe company's level of investor relations management.We continuously optimize and improve diverse communicationmechanisms with investors. Through various channels andcontact methods such as the company's website, new mediaplatforms, telephone, fax, email, stock exchange interactiveplatforms, etc., we engage in communication and exchangeswith investors through various forms such as shareholders'
meetings, performance briefings, corporate roadshows, analystconferences, investor visits and surveys, online Q&A sessions,etc.
√ Performance Briefings: We organize regular performance
exchange meetings and performance briefings acrossmultiple platforms, actively participate in collectiveperformance briefings organized by stock exchanges andindustry associations, expand investment exchanges, andpromptly respond to questions raised by investors. Weutilize visual financial reports on platforms such as theShanghai Stock Exchange Roadshow Center, innovativelyemploying AI digital avatars to vividly explain the company'sperformance and operating conditions for the first halfof 2023, making it easier for investors to understand thecompany's operational status and key financial data.
√ Shanghai Stock Exchange E-interactive Platform: Engaging in Q&A exchanges with investors on the Shanghai Stock Exchange
E-interactive Platform, we responded to a total of 150 investor questions during the reporting period, achieving a response rateof 100%.
√ Investor Visits and Research: During the reporting period, a total of 124 online and offline research activities were organized
for investors, and received over 1,000 participants joining the activities. Additionally, 8 company production line visits wereorganized, leading investors on-site visits and research.
√ Corporate Roadshows: A total of 22 one-on-one roadshows were conducted for institutional investors during the reporting
period.
Investor Relations Management
Protection of Shareholder Rights
Information Disclosure Management
Governance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
As a state-owned enterprise, we always adhere to theleadership of the Party building, consciously undertake themission and responsibility of state-owned enterprises in thenew era, firmly implement the Party and state policies, activelypromote the standardization of governance mechanisms,democratic decision-making mechanisms for major issues, andinnovation in Party organization reform, to achieve resonancebetween Party building and business operations.We adhere to the leadership role of the Party committeein providing direction, implement the decision-makingmechanism of the Party organization, improve the collectiveleadership mechanism, ensure the democracy, scientificity, andeffectiveness of major decisions, and continuously enhancethe level of corporate governance. During the reporting period,our company's Party committee conscientiously studied the"Major decision-making, Major personnel appointments anddismissals, Major project investment decisions, and Large FundUtilization" decision-making matters, held 19 Party committeemeetings, and discussed 377 matters related to companyreforms, major project investments, important personnelappointments, etc., ensuring that the company's operationsand business development are in line with the direction ofreform and development and strategic objectives, empoweringthe company for high-quality development.We focus on the main line of high-quality development ofthe enterprise, taking the opportunity to deeply carry out thetheme education on studying and implementing Xi JinpingThought on Socialism with Chinese Characteristics for a NewEra and to carry out the "Three Struggles" action of "deeplearning for excellence, daring to strive for leadership, and
practical efforts for effectiveness." We strive to promote thedeep integration of party building work with productionand operation, address key and difficult issues in enterprisedevelopment, and select a batch of projects as importantcarriers to promote the "Three Struggles" action. We conductregular research and continuous advancement to ensure thecompletion of projects on time and continuously enhancethe company's overall strength. For example, the thirdphase expansion project of Xiamen Honglu Tungsten Wirewith an annual production capacity of 60 billion meters offine tungsten wire has completed construction and startedproduction smoothly. The tungsten resource guarantee projectin the Dahutang North Area has officially started construction.International advanced manufacturing and comprehensive riskprevention and control management continue to deepen, andso on. We emphasize the role of party members as pioneers andmodels, establishing 42 party member task forces and pioneerteams to fully complete 118 urgent tasks such as key projectcapacity construction, improving product qualification rate,construction of key resource mines, key technology researchand development, and digital construction. We vigorouslypromote the integration of party building with production andoperation, and work together in the same direction.We promote the fine tradition of closely connecting with theworkers, urging leaders and cadres at all levels to activelyimplement assistance programs, and actively engage in"serving the people and addressing practical issues" activities.We steadily address 56 issues concerning grassroots workers'concerns and aspirations, continuously enhancing thehappiness and sense of belonging of the workers.
The Party Building
Risk ManagementWe deeply recognize that amidst complex and severe global economic fluctuations, political unrest, and climate change,establishing comprehensive and effective risk control measures, enhancing enterprise risk management capabilities, and fosteringresilience are crucial safeguards for achieving stability and long-term development. Based on our own operational managementmodel and business development reality, we have been continuously optimizing risk management and internal control systemsand processes, establishing a comprehensive risk management system, and enhancing supervision mechanisms to continuouslystrengthen and improve risk control system. This includes reinforcing comprehensive control measures covering the entire processof operations and business activities, from pre-event to during-event and post-event, to effectively prevent various major risks inoperations.During the reporting period, we have referred to the ISO 31000 risk management framework standard to promote the establishmentof a comprehensive risk management system. We have formulated the "Comprehensive Risk Management System" and the"Comprehensive Risk Management Operating Guidelines," gradually establishing and improving risk management mechanisms, andconstructing a risk map to ensure the effective execution of the risk management work. These efforts aim to enhance risk controlcapabilities, safeguard the realization of strategic objectives, and ensure the stable and healthy development of operations andmanagement.
Risk Management StructureTo effectively implement risk management responsibilities and standardize risk management work, we have established a clearlydefined risk management structure. We have incorporated risk management into the annual performance evaluation system,striving to integrate risk management into various aspects of operations. In cases where significant risks or crises occur due todecision-making errors, management negligence, improper behavior, or other reasons, leading to losses for us, correspondingresponsible parties will be held accountable according to internal regulations.
Governance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
Risk Management Process
We continuously improve the comprehensive risk management mechanism of the enterprise through a closed-loop managementprocess that includes continuous optimization of risk identification, risk analysis, risk response, risk tracking and reporting,supervision, and continuous improvement.Risk IdentificationThrough internal and external information collection, risk interviews, scenario analysis, case studies, and other methods, we identifyvarious categories of risks. By integrating these methods with business activities, we comprehensively identify risks, includingcompliance risks, financial risks, and strategic risks, etc. We construct a risk map and update the risk inventory timely based on therisk response situation and business environment prediction.
Control Layer
Management Layer
First Line of Defense: The Researchand Development Department,Procurement Department,Manufacturing Department, and SalesDepartment serve as responsibledepartments for risk management,responsible for risk management withintheir respective areas of responsibility.Second Line of Defense: Risk controlfunctional department (positions)and other functional departmentsprovide professional support to the riskresponsible department.Third Line of Defense: The risk controlsupervision department (position) isresponsible for auditing, inspecting,and supervising the evaluation of riskmanagement work.
Risk ManagementLeadership Team
Third Line of
Risk Management Leadership Team:
Serving as the highest decision-making body for risk management,it coordinates the constructionand effective implementation ofthe risk management system, andis responsible for ensuring theeffectiveness of risk management.
Executive Team Members
Risk Management Supervision
Department (Positions)
Party CommitteeTeam Members
Strategic Risks
External Environmental Risk, Industry Risk, Strategic Assessment Risk, Strategic Positioning Risketc.Corporate Governance RisksEquity Structure Risk, Internal Governance Risk, Risk of Controlling Subsidiaries etc.Financial Risks
Budget Risk, Funds Management Risk, Financial Revenue and Expenditure Risk, Tax ComplianceRisk etc.Operational Risks
Work Safety Risk, Environmental Protection Risk, Occupational Health Risk, Quality Defect Risk,Project Operation Risk etc.Human Resources Risks
Organizational Health Risk, Organizational Adaptability Risk, Inappropriate PerformanceManagement Risk, Compensation Management Risk etc.Administrative Risks
Document Management Risk, Seal Management Risk, Archives Management Risk, LogisticsManagement Risk etc.Data RisksData Security Risk, Facility Safety Risk, Information System Risk etc.Information Disclose RisksInformation Disclosure Risk, Insider Information Control Risk etc.Legal and Compliance Risks
Legal Dispute Risk, Contract Management Risk, Business Compliance Risk, Internal ControlDeficiency Risk etc.Business Ethics RisksFraud Risk, Corruption Risk, Bribery Risk etc.
Risk CategoryExamples of Risks Listed in InventorySecond Line of Defense
Risk Control FunctionalDepartment (Positions)Other FunctionalDepartments
First Line of DefenseR&DDepartment
ProcurementDepartment
Manufacturing
Department
SalesDepartment
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
Risk AnalysisBased on the identified risks, we conduct analysis and sorting considering factors such as likelihood of occurrence and impactseverity. We determine a core risk list, clarify the responsible parties for risk management, thus laying a solid foundation for riskresponse and monitoring.
Risk ResponseFor different risks, we develop response strategies that align with our risk preferences, tolerance levels, and are compatible withavailable risk management resources. These strategies may include risk avoidance, risk transfer, risk reduction, and risk acceptance.Taking the categories of legal and compliance risks, as well as human resources risks, identified as examples:
The headquarters functional departments andsubsidiary companies analyze and evaluate theidentified risks to determine the core risk list.
Our risk management leadership teamidentifies significant risks across the entiregroup, decides on major risk responseplans, and tracks and supervises theirimplementationRisk Analysis Matrix
Comprehensively analyze the likelihood and impact of various risks, and determine priority risks (C, D)through a risk analysis matrix.
The likelihood of riskoccurrence
Risk Impact Level
High
HighLowLow
A
B
C
D
RiskCategory
Secondary
Risks
Risk DescriptionResilience
Operational
Risk
The risk of keytalent attrition
As a national-level high-tech enterprise,the core professional talents are crucialdriving forces for our development. Withthe rapid growth in market demand andintensified industry competition, there isa rapid increase in demand for researchand technical talents within the industry.Talent acquisition is also becomingincreasingly fierce. We may face the riskof losing key technical personnel andprofessionals, which could have adverseeffects on the technological researchand innovation capabilities.
Tailored talent development, providingdiverse training opportunities, continuouslyrefining performance management andpersonnel promotion mechanisms, wecreate clear career development paths foremployees; we offer compensation packagesthat align with their value contributions andare competitive externally, establishing long-term incentive mechanisms that involvesharing benefits and risks; we grant incentivestock options to fully motivate key personnel,and attracting and retaining professionaltalents.
Operational
Risk
The risk of tradesecret
As a high-tech enterprise, we possessnumerous core technologies.Throughout the stages of researchand development, patent application,business collaborations, and dailyoperations, we may encounter risks ofcommercial secret leakage. This couldpotentially result in economic losses,damage to commercial reputation, anda decrease in market share, which isunfavorable for achieving our businessobjectives.
We establish and improve regulations relatedto the protection of trade secrets, establishconfidentiality mechanisms and incentivemechanisms, take corresponding measures toeffectively protect trade secrets, and imposeappropriate penalties on personnel whoviolate confidentiality obligations; we conductvarious forms of publicity and education toconvey relevant regulations and requirementsfor trade secret protection to employees,enhancing their awareness, compliance, andimplementation of trade secret protectionmeasures.
Governance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
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Risk ReportingEstablish a robust risk reporting procedure, continuously track changes in risks across all areas,monitor the implementation of risk response plans, and promptly summarize risk managementsituations, including: the subordinate companies shall, as required, report risk management in a timelymanner through regular reports, annual reports, special reports on major risks, risk event reports, etc.;when major risk events occur, the risk department responsible shall report to the risk managementleadership team immediately, and the risk management department shall organize relevantdepartments to carry out risk response and promptly report to the headquarters legal department andthe corresponding functional management departments, and evaluate the results of the risk events.Additionally, we enhance risk response capabilities and recovery capabilities by conducting riskemergency drills to check the effectiveness of risk emergency plans, and analyze and summarize theplans to improve risk response and restoration capabilities.Supervision and ImprovementWe regularly analyze and inspect the implementation and effectiveness of risk management work andcontinuously improve and enhance it. Risk-occurring departments should formulate risk responseplans and continuously track and monitor them, promptly analyze and summarize the effectiveness ofrisk event management, and apply them in future risk management work.
Risk and Compliance EducationWe attach great importance to the construction of corporate risk management culture, striving toestablish a solid foundation for steady and far-reaching development. We have built a "Group PolicyPortal" platform to real-time publish various risk management and internal control-related policydocuments that are newly added or revised. We conduct education and advocacy on risk managementand internal control policies for all employees to enhance their awareness of risk and compliance.
We continuously improve our internal control system in conjunction with the company's management model, continuously optimizeinternal control regulations and process construction, strengthen inspection and supervision mechanisms, and enhance internalcontrol to effectively prevent various major risks in the company's operations. We adhere to a strategic planning orientation, withannual business plans as our goals. Through "strategy + finance" dual control, we formulate, execute, monitor, and evaluate annualbudgets, forming an organic management cycle of strategic planning, comprehensive budget management, and comprehensiveperformance management. We achieve full coverage control over key aspects of the company's operations and business activities,ensuring pre-event, in-event, and post-event control coverage, tracking and preventing risks, and ensuring the company's stableoperation.
Internal Control Compliance
Governance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
Our company's board of directors has established an audit committee, responsible for overseeing and reviewing the internal controlsystem and its implementation. The audit department of the company is responsible for supervising, reviewing, and tracking theconstruction and implementation of internal control systems in the company and its subsidiaries. The audit department reports tothe audit committee regularly.
Internal Control System ConstructionBased on the overall framework of 29 subsystems of internal control, we guide each subsidiary to establish corresponding internalcontrol systems to enhance risk management capabilities:
√ For mining activities, we construct a key risk control-type internal control system focusing on 11 subsystems including
corporate governance, enterprise strategy, social responsibility, production and manufacturing, safety environment,engineering projects, information systems, and risk control.
√ For material preparation and processing activities, we construct a comprehensive internal control system covering all 29
subsystems including corporate governance, enterprise strategy, social responsibility, investment management, financialoperations, production and manufacturing, and risk control. We aim to classify and fully prevent risks involved in daily businessmanagement processes. Internal Control Supervision and Inspection
We continuously improve inspection and supervision mechanisms, strengthen internal supervision, and promptly discover defectsand issues in operational risks and internal control processes through methods such as internal control evaluation, internal controlaudit, special audit, and routine supervision inspections. We urge relevant units to implement rectification effectively to prevententerprise risks. Special Audits
√ Research and Development Management Special Audit: During the reporting period, special audits on research and
development management were conducted for 23 primary subsidiaries and 7 joint-stock companies to strengthen control overresearch and development funds and standardize processes such as project budgeting, project approval, and goal setting.
√ Procurement Management Special Audit: During the reporting period, procurement management special audits were conducted
for 6 subsidiaries focusing on supplier management, procurement prices, tendering management, procurement contracts,accounts payable, and prepaid management, to further improve equipment procurement budget control, procurement demand
management, and standardize inquiry and bidding processes.
√ Internal Management Special Audit: During the reporting period, internal management special audits were conducted for 1
subsidiary, covering internal control processes such as human resources management, monetary fund management, projectmanagement, sales and receivables management, and procurement and payment management.
√ Engineering Project Special Audit: During the reporting period, special audits were conducted for 1 engineering project and
full-process supervision checks were conducted for 8 key engineering projects to promote the improvement of subsidiary'sengineering management level.Internal Control Evaluation
During the reporting period, internal control inspections and evaluations were conducted for the company's headquarters and14 subsidiaries, promptly identifying deficiencies in internal control design and implementation, and implementing rectification,achieving further improvement in internal control level and effective risk control.
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
Stakeholders Communication
Our mission is encapsulated in "We aim to make XTC a place for employees to realize personal value, a place for customers tofind solutions, a place for shareholders to invest in, and also a place for society to benefit from." We prioritize the expectationsof stakeholders as a crucial factor in enhancing corporate governance. We establish diverse communication channels withstakeholders to regularly understand their suggestions and concerns.
Environmental ComplianceRisk ManagementOperation ComplianceHuman Rights Protection
Employees ConsultationEmployees Training & Activities
Employee ComplaintsEmployee Satisfaction Survey
Operation Compliance
Tax ComplianceComplaint Machanism andComplainant Protection
Customer Service and Complaints
On-site InterviewsCustomer Satisfaction Survey
Operation ComplianceEnvironmental ComplianceAnti-unfair CompetitionEqual Employment
Supplier ConferenceSupply Chain Management Platform
On-site Interviews
Operation ComplianceInnovative Research andDevelopmentEnvironmental ComplianceRisk Management
Listed XTC Information DisclosureShareholders' Meeting / Performance BriefingInvestor Hotline / Investor Interactive Platform
Investor Visits and ResearchRoadshow Event/Brokerage Strategy Meeting
Risk ManagementTax ComplianceAnti-Corruption
Listed XTC Information Disclosure
Project Cooperation
GHG EmissionsResource RecyclingOperation Compliance
Listed XTC Information DisclosureSocial Media CommunicationPublic Opinion Monitoring
Environmental ComplianceOperation Compliance
Tax Compliance
On-site InterviewsProject Cooperation
Meeting Training
Water Conservation andWastewater Management
Resource RecyclingGHG Emissions
On-site InterviewsPublic Welfare ServicePublic Opinion Monitoring
StakeholdersMaterial IssuesCommunication Methods
StakeholdersMaterial IssuesCommunication Methods
Employees
Customers
Suppliers
Investors
Banks
Media
Government andSupervision
NGOs
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
Importance analysis of issuesBased on the results of internal and external research and following the principleof dual importance, we conducted a comprehensive analysis and priorityranking of ESG issues from two dimensions: the importance of ESG issues tothe company's financial impact and their impact on stakeholders. This processresulted in the formation of a material issue matrix.
Environmental Compliance
Greenhouse Gas Emissions
Energy Management
Water Conservation andWastewater Management
Exhaust Air Management
Waste Management
Biodiversity Conservation
Resource Recycling
Tailings Management
Equal Employment
Human Rights Protection
Occupational Health andSafety
Training and Education
Compensation and Welfare
Employee Communication
Community Investment
Responsible Supply Chain
Customer Service
Operation Compliance
Risk Management
Anti-corruption
Anti-Unfair Competition
Innovative Research andDevelopment
Intellectual PropertyProtection
Information Security
Tax Compliance
Complainant Protection
Environmental
Social
Governance
Importance to stakeholdersLowHigh
LowHigh
Importance to XTC
1114
1921
2324
Material Issues AssessmentWe highly prioritize the identification and management of ESG issues. Basedon the company's development strategy and business characteristics, and inaccordance with the requirements of international sustainable developmentreporting frameworks and standards such as GRI (Global Reporting Initiative)and SASB (Sustainability Accounting Standards Board), we conduct materialissue assessment processes. Through processes such as issue list identification,internal and external research and evaluation, importance analysis, etc., wehave identified and confirmed the three most important material issues for thecompany in 2023 (Customer service, innovative research and development,intellectual property protection), and provide detailed explanations in thecorresponding sections of this report.Identification of ESG issuesBased on the material issue assessment results from 2022, and in alignmentwith our company's development plans and operational realities, we haveidentified and confirmed 27 ESG issues relevant to the company for 2023. Thisidentification process follows the requirements of frameworks and standardssuch as GRI and SASB, and benchmarks excellent ESG practices of domestic andinternational peers.Internal and external research and evaluationWe invited the company's management team and stakeholders to participate inthe material issue assessment by sending out separate ESG material issue surveyquestionnaires for 2023. Through internal and external research and evaluations,we aimed to understand the ESG issues of concern to each stakeholder group.
Review of Assessment ResultOur 2023 material issue assessment results have been reviewed bythe Board of Directors.
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
10 incidents of commercial bribery or corruption throughout the year20 litigation or significant administrative penalties on unfair competition or monopolistic behavior throughout the year30 administrative penalties on money laundering and insider trading throughout the year4Complete outreach of anti-corruption policies to 100% of company employees within the year50 litigation on infringement of intellectual property rights throughout the year60 tax compliance violations throughout the year
Prevention of Commercial Bribery andUnfair Competition
Anti-monopoly and Anti-unfair CompetitionWe adhere to the principles of compliance, integrity, and fairness, strictly comply with relevant domestic laws and regulations suchas the Anti-Unfair Competition Law of the People's Republic of China and the Anti-Monopoly Law of the People's Republic of China,as well as laws and regulations in the regions where we operate. We have formulated and continuously improved the "BusinessCode of Conduct", and have made corresponding normative requirements and statements regarding anti-monopoly and anti-unfaircompetition, advocating free and fair competition. We prohibit the use of unfair means to obtain business secrets of competitors,the fabrication and dissemination of false information, and any fraudulent behavior or other illegal means to disrupt marketorder. During the reporting period, we were not involved in any unfair competition or monopolistic behavior, and no litigation orsignificant administrative penalties occurred due to unfair competition or monopolistic behavior.
Anti-corruption and Anti-briberyWe consistently uphold high standards of business ethicsas the fundamental principles and behavioral norms in ourbusiness operations. We explicitly define the ethical standardsrequired for corporate behavior in the "Business Code ofConduct", maintaining a zero-tolerance stance towards allforms of corruption and bribery. We require all employees toadhere to the requirements of integrity and self-discipline,prohibiting the acceptance of bribes or the offering of bribes toothers, and forbidding the solicitation of any direct or indirectbenefits from any individual or organization. Exploitationof one's position for personal gain or misappropriation ofcompany property is strictly prohibited.We have established a four-tier disciplinary supervisionstructure comprising the XTC's Party Discipline InspectionCommittee (hereinafter referred to as "XTC DisciplinaryCommittee" or "Disciplinary Committee"), area-level disciplineinspection teams, company-level discipline inspection agency,and grassroots branch discipline inspection committees. Wehave creatively constructed a linkage mechanism betweenthe "office-team-enterprise" (namely, disciplinary inspectionoffice in headquarters, area-level discipline inspection teams,and discipline inspection cadre in subordinate companies),continuously improving a comprehensive supervision networkled by the XTC Disciplinary Committee and jointly operated bydisciplinary inspection office, audit department, and relevantpositions in various affiliated enterprises. We have establishedand improved mechanisms such as cross-inspection, workexchange, special supervision, and integrity risk preventionand control penetration testing, deepening the integrationof disciplinary inspection with corporate developmentsupervision system.
We have formulated the "Management Measures for LiabilityAccountability", establishing accountability procedures forviolations of integrity requirements from headquarter to allaffiliated enterprises. Detailed provisions have been madefor accountability situations regarding internal managementand risk control, labor discipline and behavioral norms,procurement and sales control, safety and environmentalprotection, and integrity self-discipline. Strict disciplinaryactions are taken against violations in accordance withregulations and rules. Depending on the relevant responsibleparties, we may take measures including but not limited tocriticism and education, warnings, suspension, job transfer,demotion, resignation requests, deduction or recovery ofperformance pay or term incentive income, and recovery ofmedium- to long-term incentive benefits.During the reporting period, XTC Disciplinary Committeeorganized the formulation of 28 disciplinary inspection andsupervision systems including the the 7 systems of "Anti-Corruption and Anti-Bribery Management Regulations ","Gifts and Hospitality Register and Management Measures","Integrity File Management Measures", "Integrity Educationand Propaganda Management Measures", "Quarterly ThemedIntegrity Risk Prevention and Control Penetration Testing WorkMeasures", "Integrity Risk Prevention and Control Manual",and "Discipline Inspection and Supervision Work Rules". It alsourged functional departments to formulate 25 managementsystems and revise 17 management systems in accordancewith our development and refined control requirements,further optimizing relevant management systems foroperational management to ensure compliance and stableoperations. No incidents of business ethics violations due tocorruption, bribery, or other misconduct occurred throughoutthe year.
Corporate Governance Key Objectives for 2023
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
To strengthen the control of integrity risks, the Disciplinary Committee took the lead in organizing the compilation of the "XTC IntegrityRisk Prevention and Control Manual" with the functional departments at headquarters and the important a?liated companies. Themanual comprehensively reviewed every business process, covering 19 modules including ?nancial budgeting, corporate governance,procurement management, sales management, production manufacturing, and operational management. It identi?ed key areas andcritical points of integrity risks within each module, formulated corresponding integrity risk prevention and control measures, andconducted periodic reviews and updates based on the actual operation.We adhere to the implementation of the integrity risk prevention and control audit management mechanism and ensure our e?ectiveexecution through daily inspections to prevent and avoid integrity risks. We continuously deepen the integrity risk prevention andcontrol audit management, strengthen control over the "major issues, major personnel appointments and dismissals, major projectarrangement, and decision for large fund utilization” through pre-supervision to prevent integrity risks. During the reporting period, thedisciplinary inspection team in 9 areas attended 370 important meetings like meeting associated with “major issues, major personnelappointments and dismissals, major project arrangement, and decision for large fund utilization”, generated 518 self-audit forms andidenti?ed 19 issues with all of which have been recti?ed. It promoted the the standardization and re?nement of supervision over decision-making authority and processes associated with the "Three major issues and One big decision," further enhancing the precision ande?ectiveness of supervision.The relevant functional departments of our company and the discipline inspection and supervision cadres ofeach a?liated enterprise incorporate the implementation of integrity risk prevention and control audit management mechanisms intotheir daily inspections to ensure the e?ective execution of the mechanism and prevent and avoid integrity risks.
Business Ethics Risk Management
Special Inspection
√ "1+X" special inspections: During the reporting period, a
total of 47 affiliated companies were organized for "1+X"special inspections, identifying 434 issues. Apart from 7outstanding issues currently under rectification, all otherissues have been rectified.
√ Important holiday inspections: During the reporting
period, focusing on important holidays such as New Year'sDay, Spring Festival, Labor’s Day, Dragon Boat Festival,Mid-Autumn Festival, and National Day, 6 inspections wereconducted, uncovering 9 issues, all of which have beenrectified.
√ Supervision of construction projects: During the reporting
period, 327 supervisory inspections were organized for46 construction projects whose budget exceed 10 millionRMB, identifying 11 issues with all of them have beenrectified.
√ Efficiency supervision in supplier selection and
engineering bidding process: 13 affiliated companies,which are newly established, relatively small in scale, ordistant, were selected for efficiency inspections in supplierselection and engineering tendering processes. A total of124 issues were identified and all have been rectified.
√ Special rectification of overseas projects: A special
rectification campaign targeting the "exploitation ofoverseas project commission intermediary fees for
personal gain" was conducted. A comprehensive investigation was carried out across all group companies, with no violationsfound. In conjunction with the overseas audit work of the headquarter audit department, on-site supervision of overseasprojects was conducted.Penetration testing
Disciplinary Committee formulated the "Quarterly Themed Integrity Risk Prevention and Control Penetration Testing Work Measures" andestablished a mechanism for integrity risk prevention and control penetration testing. Targeting weak links in business management andintegrity risk control points, area discipline inspection team leaders organized simulated tests and focused supervision inspections oncompanies within their respective areas on a quarterly basis. They also urged relevant units to improve and optimize systems, streamlinework?ow, and strengthen supervision and enforcement.During the reporting period, we organized a total of 53 a?liated companies to conduct "Quarterly Themed Integrity Risk Prevention andControl Penetration Testing". Focusing on key areas such as management of free samples, sales price management, customer-suppliedmaterial procurement and sales, and holiday gift procurement and distribution, we identi?ed 126 issues and recti?ed all of these issues.
Highlight
Supplier Business Ethics Management
We have formulated and publicly released the "Supplier Code of Conduct", requiring suppliers to adhere to the principles of honesty andintegrity, and refrain from engaging in any form of corruption, extortion, bribery, coercion, embezzlement, or other activities involvingimproper interests. Additionally, we have continuously strengthened the integrity management and advocacy for suppliers to furtherprevent integrity risks in the supply chain.
At the tungsten smelting production base and tungsten-molybdenum wire production base, we require newly onboardedsuppliers to sign a commitment to integrity to ensure their compliance with integrity requirements.Highlight
At the battery material production base, we require new suppliers to sign a "Business Ethics Initiative", and continuouslycommunicate integrity and self-discipline requirements to suppliers through means such as sending Sunshine HolidayNotice during important holidays.
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
Buiness Ethics Culture BuildingDisciplinary Committee has formulated the "Implementation Measures for Ethical Education in Employment" and the "ManagementMeasures for Ethical Education Propaganda," aiming to strengthen ethical education and promote the integration of ethical cultureat the grassroots level. This is achieved through regular ethical education, integrity talks for leaders, cultural promotion, trainingseminars, case warnings, and integrity conversations.
Regular Education and Promotion:
√ Creating integrity posters at important junctures and
sending reminders through the "Integrity WeChat" publicaccount to all employees.
√ Publishing two compilations of integrity cases and drafted
four cautionary stories to promote deep reflection andimprovement.Ethical Education for Leadership Appointments:
√ Conducting pre-employment integrity talks for seven newly
promoted leaders; conducting integrity and diligence talksfor 21 sessions involving 913 leaders, party members, andkey personnel in procurement, sales, etc.
√ Organizing quarterly work exchange meetings for district
discipline inspection teams and specialized trainingsessions for discipline inspection and supervision cadres
Anti-corruption Education Base Visit
Conducting the "Ethical Employment Education Promotion Month" themed "Clean and Responsible, Everyone's Duty":
√ Multi-platform ethical promotion: Displaying posters and banners across the group, updating display posters and columns in
subsidiary companies, and publishing related articles on WeChat.
√ Training activities: The affiliated enterprises fully utilized local red education resources, anti-corruption education bases, and
family culture education bases, organizing 26 on-site teaching activities with 741 participants. Through various methods suchas collective party classes and case study sessions, 33 collective integrity career party classes were conducted, involving 765leading cadres, party members, and key personnel.
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixGovernance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
√ Ethical entertainment activities: Conducting 12 optional activities in eight subsidiary companies, involving 575 employees,
including DIY, ethical word games, quizzes, and more.
√ Case warning education: Distributing internal supervision and disciplinary cases for learning, organizing 67 case study sessions
covering 1,169 key employees.
We respect intellectual property rights protection and haveestablished the " Patent Management Regulations" to clarifythe patent management process including patent ownership,application, utilization, and rewards. We also adhere toother internal management systems related to intellectualproperty such as the "Technology Innovation ManagementImplementation Rules" and " Business Secret ManagementSpecifications " to carry out intellectual property managementand protection work. During the reporting period, we issuedthe "Five-Year Development Outline for Intellectual Property(Trial)" and the intellectual property management model,providing guidance for us and our affiliated enterprises onintellectual property management from aspects such asoverall requirements, key tasks, and safeguard measures. Wealso published the "Guide for Cultivating High-Value Patents,"providing clear guidance and standards for cultivatinghigh-value patents for XTC and our affiliated enterprises.Furthermore, we have established a strict technical secrecymechanism, classifying technical secrets and strictly limiting
the scope of knowledge, storage, use permissions, andapproval procedures. Employees who timely report leakageincidents or take active remedial measures to avoid orreduce losses are rewarded accordingly. Employees whoviolate confidentiality regulations are punished, and legalresponsibilities are pursued according to the law.We actively promote the construction of intellectual propertyculture, led by our technical center and jointly with affiliatedenterprises, to create the "XTC Intellectual Property PromotionWeek." Through a series of activities such as IP torch relaylectures, knowledge quizzes, and skill competitions, westrengthen the publicity and education of intellectual propertyprotection, enhance the awareness of intellectual propertyprotection among all employees, and establish the conceptof intellectual property protection of "respecting knowledge,advocating innovation, integrity and law-abiding, and faircompetition."
Intellectual PropertyRights Protection
IP Torch Relay Series Lecture
Fun Activities for Integrity
Governance for Sustainable Development Prevention of Commercial Bribery and Unfair Competition
| 2023 Sustainability Report
In our tax management work, we always adhere to the principles of compliance, integrity and transparency, strictly abide byrelevant Chinese laws and regulations, as well as the regulations in the jurisdictions where our operations are located. Followinginternal control procedures, we identify, assess, and manage potential tax risks in operation, and take effective measures to preventand manage tax risks, fulfilling our tax obligations in accordance with the law.
√ Policy and Regulation Learning: In our daily operations, we continuously monitor and track updates and changes in tax laws
and policies, actively communicate and exchange with tax authorities in the jurisdictions where our affiliated companies arelocated, timely consult with tax authorities to understand the applicable tax laws and policies for business activities, as wellas the execution procedures of tax matters. We organize or participate in internal and external tax-related training sessionsirregularly to enhance the professional level of tax personnel.
√ Active Suggestions and Recommendations: We actively participate in research activities conducted by national, provincial,
and municipal tax authorities on promoting the high-quality development of large enterprises, implementing tax incentivesfor advanced manufacturing enterprises, optimizing export tax refund processes, etc. We provide suggestions andrecommendations on optimizing tax policies, implementing tax incentive measures, and managing tax costs, contributing ourcorporate wisdom.During the reporting period, we paid a total of 1,413,218.4 thousand RMB in taxes, and no tax-related violations occurred.
Tax Compliance Management
We encourage stakeholders to continuously monitor XTCand actively report any illegal, disciplinary, regulatory, orunethical behavior. We also encourage stakeholders toprovide suggestions regarding business ethics, human rightsprotection, environmental protection, occupational health andsafety, and other related matters.We provide diverse and accessible channels for stakeholdersto lodge complaints and reports. Adhering to the principlesof fairness and impartiality, we strictly follow the relevantprocedures for complaint reception, investigation, and
handling, and promptly provide feedback on investigationresults and corrective measures to the complainants. We haveestablished a mechanism to reward complaint reporting.Complainants whose reported issues are verified to be truewill be rewarded with corresponding monetary awards basedon the extent of direct economic losses recovered. Businesspartners who actively report and provide important clues willalso be rewarded with monetary awards based on the actualcircumstances.
Complaint Mechanism and Complainant Protection
Complaint Channels
Complainants can make anonymous or real-name complaints to report against individuals or entities suspected of violating theirofficial duties, committing crimes in office, or engaging in irregular business investments through the following channels:
Complaint hotline: 0592-3351752Complaint email: XWJJ@CXTC.COMMailing address: 21-22/F, Bldg A, Tefang Center, No.81,Zhanhong Road, Xiamen, China
In addition to the above public channels, we provide clear and direct complaint channels through our OA intranet and corporateWeChat for employees to lodge complaints and suggestions. Our subsidiaries also publicly disclose complaint channels via ourwebsite and intranet. We also set up clear and publicly accessible contact information for complaints or reports in the miningareas we operate in, periodically visiting and contacting residents in the mining areas to accept relevant complaints and activelyresponding to and addressing resident concerns.Protection for Complainants
We adhere to relevant laws and regulations as well as internal corporate guidelines such as the " Guidelines for the Disposal ofInvestigation and Supervision Problem Clues" and the "Code of Conduct for Disciplinary and Supervisory Cadres." In particular,we have formulated the " Whistleblower Protection and Incentive Measures " to safeguard the legitimate rights and interests ofcomplainants.Complainant Protection Measures:
√ Allowing anonymous complaints, strictly prohibiting any actions to obstruct or suppress complaints and reports made in
accordance with the law.
√ Strictly enforce confidentiality mechanisms, ensuring strict management of complaint materials and complainant information
obtained at various stages such as acceptance, registration, storage, and investigation.
√ Take serious actions against the leakage of complaint information or any retaliatory actions against complainants, and hold
those responsible accountable according to relevant regulations.
Data OverviewGRl Standards IndexISDS lndexSASB IndexIndicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprisesVeri?cation Statement of Greenhouse Gases EmissionsIndependent Limited Assurance Report
Appendix
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
2023 Sustainability Report
IndicatorUnit202120222023GHG
Scope 1 – Direct GHG
emissions
tCO
e
63,697.92 92,374.09119,050.49Scope 2 – Indirect GHG
emissions(Market based)
506,048.41466,589.87555,939.33Total GHG
emissions(Scope 1+Scope 2)
569,746.33 558,963.96674,989.82Scope 3:Other Indirect Emissions//1,426,485.46Total GHG
emissions intensity
tCO
e/Hun-dred-mil-lion RMB ofoperatingrevenue
1,788.72 1,159.131,713.26
Air PollutantsNOx emissions
Ton
15.19 15.5618.22SOx emissions 3.43 3.933.10PM emissions 81.76 34.82`29.06Non-methane hydrocarbonsemissions
//2.57Ammonia emissions// 6.15Cobalt and its compound emissions// 0.02Nickel and its compound emissions// 0.02Manganese and its compoundemissions
// 0.01Sulfuric acid mist emissions// 0.94
IndicatorUnit202120222023
Air Pollutants
Volatile organic compound emissions
Ton
// 0.45Hydrogen chloride emissions//2.51Wastewater and Related Pollutants
Wastewater discharges
㱮3,036,337.34 3,657,304.474,546,637.26Ammonia Nitrogen discharge
Ton
19.64 18.7619.22Chemical oxygen demand discharge 237.15 181.17229.10Total Nitrogen discharge// 25.06Total lead discharge// 0.06Total arsenic discharge// 0.41Total nickel discharge// 0.17Total chromium discharge// 0.03Total cadmium discharge// 0.01Total cobalt discharge// 0.45Total molybdenum discharge// 0.03Total zinc discharge// 0.05Total copper discharge// 0.01
Note1: The increase in the company's total greenhouse gas emissions compared to 2022 is mainly due to the increase in production of some productsduring the reporting period, as well as the inclusion of Xiamen Xtc New Energy Materials (H.c) Ltd., Guangdong Youlu Tools Co., Ltd., and Golden EgretCement Carbide(Thailand) Co. Ltd. in the scope of greenhouse gas inventory in 2023.Note2: The increase in the company's nitrogen oxide emissions compared to 2022 is primarily due to the increase in production of some products duringthe reporting period.
Note3: The increase in the company's total wastewater discharge compared to 2022 is mainly due to the increase in production of some products duringthe reporting period.Note4:The increase in the company's ammonia nitrogen emissions compared to 2022 is primarily due to the increase in production of some productsduring the reporting period.
Data Overview Environmental
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
2023 Sustainability Report
IndicatorUnit202120222023Wastewater and Related Pollutants
Total manganese discharge
Ton
// 0.29Total phosphorus discharge// 2.26Total iron discharge// 0.01
Hazardous Waste
Transfer and disposal volume ofhazardous waste
Ton/1,444.53 1,419.52General Waste
Industrial waste produced volume
Ton
// 259,938.47Household waste produced volume// 8,733.31Industrial waste recycled volume// 38,441.26Household waste recycled volume// 2,446.62
Tailings slag
Annual waste rock volume
Ton
// 8,645,260.20Annual tailings volume// 3,350,299.09Annual slag volume// 11,995,559.28Annual volume of recycled slag//1,701,500.93Tailings storage capacity// 45,034,672.11
IndicatorUnit202120222023
Energy
Electricity consumption
kWh
1,320,019,912.251,306,800,564.191,631,612,744.27Including: Green electricity consumption/637,424,211.20810,047,274.25Including: Nuclear electricityconsumption
//698,490,555.07Photovoltaic power consumption//8,165,697.49Wind power consumption//80,996,041.69Hydropower consumption//22,394,980.00Green electricity ratio%/48.7849.65Steam consumptionTon 278,905.08 327,082.90282,283.46Natural gas consumption
mt 9,850,320.79 13,788,147.9621,329,644.73Coal consumption
Ton
5,692.00 5,752.666,453.55Liquefied petroleum gas consumption/16.7818.00Gasoline consumption
Litre
324,453.44256,157.90254,199.65Diesel consumption1,534,911.053,611,015.083,764,841.67Energy consumption intensity
Tonnes ofstandard
coal/Hundred-million RMBof operatingrevenue
661.12459.93679.70Water ResourceWater withdrawal
m
6,754,152.706,372,160.03 6,709,167.95Water consumption 3,717,815.36 2,714,855.562,162,530.69Water consumption density
m
/Hundred-million RMBof operatingrevenue
11,672.09 5,629.915,488.95Packaging MaterialsPackaging materials consumption
Ton
// 21,601.33Material consumption for productionand recycling of products
// 2,410.99Note6: The increase in the company's natural gas consumption compared to 2022 is primarily due to the increase in production of some products duringthe reporting period, as well as the commissioning of XTC New Energy Materials (Yaan) Co., Ltd..Note5: The increase in the company's electricity consumption compared to 2022 is mainly due to the increase in production of some products duringthe reporting period, as well as the inclusion of Xiamen Xtc New Energy Materials (H.c) Ltd., Guangdong Youlu Tools Co., Ltd., and Golden Egret CementCarbide(Thailand) Co. Ltd. in the statistical scope.
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
2023 Sustainability Report
IndicatorUnit202120222023Total EmployeesTotal employees
Person
14,50815,912 17,549Including: Employees with signed employment contracts//16,971
Other workers
//578Employee Composition
By GenderMale
Person
10,679 11,702 12,842Female 3,829 4,2104,707By AgeUnder 30
Person
3,472 3,9664,85330 to 50 9,794 10,763 11,392Over 50 1,2421,1831,304By NationalityChina
Person
// 17,406Brazil// 12Germany//9
IndicatorUnit202120222023
By NationalityKorea
Person
// 1Japan// 5Thailand// 116By EducationDoctors
Person
48 45 53Masters 557 607761Bachelors2,922 3,3393,652Colleges1,829 2,0062,091Under-Colleges 9,152 9,915 10,992By ProfessionProduction employees
Person
10,351 11,350 12,691Sales employees 542 643680Technical employees1,499 1,7241,935Finance employees 246 263266Administrative employees1,870 1,9321,977Female production employees//3,230Female sales employees//231
Other workers include labor dispatch personnel, rehired retirees, interns, etc.
Employment
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
2023 Sustainability Report
IndicatorUnit202120222023By ProfessionFemale technical employees
Person
//287Female finance employees//166Female administrative employees//793Management Team CompositionManagement (Middle and upper, including seniormanagement)
Person
/690662Including: Senior management//5Female Management (Middle and upper, including seniormanagement)
78 122 112Including: Female senior management/171Proportion of female Management (Middle and upper,including senior management)
%
11.84 17.6816.92
Proportion of female senior management//20.00 Local Employment
Number of local employees hired within the provincePerson//12,506Proportion of local employees hired within the province%//71.26Number of female local employees hired within the provincePerson//3,342Proportion of female local employees hired within theprovince
%//71.00Number of local senior management hired within the provincePerson//4Proportion of local senior management hired within theprovince
%//80.00Number of female local senior management hired within theprovince
Person//1Proportion of female local senior management hired withinthe province
%//100.00
IndicatorUnit202120222023
Labor ContractsEmployment contract signing rate%//100.00 Employment of People with DisabilitiesNumber of employees with disabilitiesPerson/20 37Ratio of employees with disabilities%/0.130.21
Employee Turnover
Number of employees who signed contracts at the beginningof the year
Person
//15,494Total new recruiters in the year//6,324Total number of resignations//4,772Including: Number of resignations among male employees//3,767Including: Number of resignations among female employees//1,005Including: Number of resignations among Chinese nationals//4,698
Number of resignations among Thai nationals// 71Number of resignations among German nationals//2Number of resignations among Japanese nationals// 1Annual turnover rate//21.24 Employee Training
Total annual investment in employee training
Ten-thousandRMB
//1,161.49
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
2023 Sustainability Report
IndicatorUnit202120222023
R&D InputTotal investment in R&D
Ten-thousandRMB
127,575.35 172,893.94160,857.08
Intellectual Property
Number of new patent applications
Item
137 453427Number of new patent grants110 384 337Number of new copyright registrations//9Number of new trademark applications//65Number of new trademark registrations//28
Non-a?liated Suppliers (by Regional Distribution)
Number of non-affiliated suppliers fromMainland China
Unit
4,355 4,5764,678Number of non-affiliated suppliers fromother regions
172 179 162Total number of non-affiliated suppliers4,527 4,7554,840
Occupational Health & Safety Market
IndicatorUnit202120222023
Work Safety Input
Total annual investment in occupationalhealth and work safety
Ten-thousandRMB
/11,932.7210,283.30Safety TrainingTotal participants in safety trainingParticipant 62,289 49,75164,957Total participant time in safety trainingHour 117,019 112,195 112,341Number of safety emergency drillsTime/621 648Number of attendees for safetyemergency drills
Participant //27,232Number of safety trainingTime//2,406Number of safety online training sessionCourse//732Work Safety Accident
Number of extremely severe accident
Case
0 00Number of severe accident 0 00Number of major accident 0 00Work-related accident/1926
Occupational Health and Safety Performance
Occupational injuries
Person
/1926Occupational fatalities 0 00Occupational fatality rate%0.00 0.000.00Total lost time due to work-relatedinjuries
Day//4,984
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
2023 Sustainability Report
GRI StandardsDisclosuresLocationOmission
GRI 2:
General Disclosures2021
2-1 Organizational detailsAbout XTC2-2 Entities included in theorganization's sustainabilityrepoing
Preparation of Repo2-3 Reporting period,fre-quency and contact point
Preparation of Repo2-4 Restatements of informationNot covered in this repo
This repodoes not coverrestatementsof information2-5 External assurance
Preparation of Repo
Independent Limited Assurance
Repo2-6 Activities,value chain andother business relationships
About XTC
Message from the Chairman
Innovation-Driven,Suppliers,and
Customers2-7 Employees
Human Rights Protection
Data Oveiew2-8 Workers who are not em-ployees
Data Oveiew2-9 Governance structure andcomposition
ESG Governance Structure
Corporate Compliance Operations2-10 Nomination and selectionof the highest governance body
Corporate Compliance Operations
GRI Index General Disclosures
IndicatorUnit202120222023
Volunteer Service
Number of volunteer service participantsParticipant576 6961,019Number of volunteer service hoursHour2,7772,469 1,618
National Strategic Response
Industrial transformation
Ten-thousandRMB
//1,638.17Rural revitalization and regionalcooperative development
//221.44Belt and road initiative and overseasresponsibilities
//8,529.74Industry characteristics and other socialresponsibilities
//505.72DonationsTotal donations
Ten-thousandRMB
723.77823.36674.22
Social Contribution
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
GRI StandardsDisclosuresLocationOmission
GRI 2:
General Disclosures2021
2-11 Chair of the highest gover-nance body
Corporate Compliance Operations2-12 Role of the highest gov-ernance body in overseeing themanagement of impacts
ESG Governance Structure
Internal Control Compliance
2-13 Delegation of responsibilityfor managing impacts
GHG Emissions Management
Action to Reduce GHG Emissions
Water Conseation
Pollutants Emissions Control
Occupational Health and Safety
ESG Governance Structure
Risk Management
Internal Control Compliance2-14 Role of the highest gov-ernance body in sustainabilityrepoing
ESG Governance Structure
Stakeholders Communication2-15 Conicts of interestCorporate Compliance Operations2-16 Communication of criticalconcerns
Stakeholders Communication2-17 Collective knowledge of thehighest governance body
Corporate Compliance Operations2-18 Evaluation of the peor-mance of the highest governancebody
Not covered in this repo
Not yetevaluatedduring therepoingperiod
GRI StandardsDisclosuresLocationOmission
GRI 2:
General Disclosures2021
2-19 Remuneration policiesCorporate Compliance Operations2-20 Process to determine re-muneration
Corporate Compliance Operations2-21 Annual total compensationratio
Not covered in this repo
Not yetcalculatedduring therepoingperiod2-22 Statement on sustainabledevelopment strategy
Addressing Climate Change
2-23 Policy commitments
Addressing Climate Change
Pollution Control and Ecosystem
Protection
Resource Utilization and Circular
Economy
Responsible Sourcing
Responsible Mineral Management
Responsible Products and Seices
Human Rights Protection
Occupational Health and Safety
Harmonious Engagement in
Community
Prevention of Commercial Bribe
and Unfair Competition
2-24 Embedding policy commit-ments
Addressing Climate Change
Pollution Control and Ecosystem
Protection
Resource Utilization and Circular
Economy
Responsible Sourcing
Responsible Mineral Management
Responsible Products and Seices
Human Rights Protection
Occupational Health and Safety
Harmonious Engagement in
Community
Risk Management
Internal Control Compliance
Prevention of Commercial Bribe
and Unfair Competition
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
GRI StandardsDisclosuresLocationOmission
GRI 2:
General Disclosures2021
2-25 Processes to remediatenegative impacts
Addressing Climate ChangePollution Control and EcosystemProtectionResource Utilization and CircularEconomyResponsible SourcingResponsible Mineral ManagementResponsible Products and SeicesInformation Security and PrivacyProtectionHuman Rights ProtectionOccupational Health and SafetyHarmonious Engagement inCommunityRisk ManagementInternal Control CompliancePrevention of Commercial Bribeand Unfair Competition
2-26 Mechanisms for seekingadvice and raising concerns
Responsible SourcingResponsible Mineral ManagementResponsible Products and SeicesHuman Rights ProtectionEmployee CommunicationProtection of Shareholder RightsStakeholders CommunicationComplaint Mechanism andComplainant Protection
GRI StandardsDisclosuresLocationOmission
GRI 2:
General Disclosures2021
2-27 Compliance with laws andregulations
Addressing Climate ChangePollution Control and EcosystemProtectionResponsible Mineral ManagementResponsible Products and SeicesInformation Security and PrivacyProtectionHuman Rights ProtectionOccupational Health and SafetyCorporate Compliance OperationsProtection of Shareholder RightsRisk ManagementPrevention of Commercial Bribeand Unfair Competition2-28 Membership associations
Suppoing High-Quality IndustDevelopment2-29 Approach to stakeholderengagement
Stakeholders Communication2-30 Collective bargainingagreements
Employee Communication
Material topicsGRI StandardsDisclosuresLocationOmission
GRI 3: Material Top-ics 2021
3-1 Management of materialtopics
Material Issues AssessmentStakeholders Communication3-2 List of material topicsMaterial Issues Assessment
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
GRI StandardsDisclosuresLocationOmissionEconomic peormance
GRI 3: Material Top-
ics 2021
3-3 Management of materialtopics
Sustainability Risk ManagementESG Governance StructureCorporate Compliance OperationsRisk ManagementEmployee DevelopmentStakeholders Communication
GRI 201: Economic
Peormance 2016
201-1 Direct economic valuegenerated and distributed
2023 Economic, Enviromentaland Social Influence201-2 Financial implications andother risks and oppounitiesdue to climate change
Sustainability Risk ManagementRisk Management201-3 Dened benet planobligations and other retirementplans
Employee Development201-4 Financial assistance re-ceived from government
Not covered in this repo
Disclosed incompany's2023 AnnualReport
Market presenceGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Human Rights Protection
GRI 202: MarketPresence 2016
202-1 Ratios of standard entlevel wage by gender comparedto local minimum wage
Not covered in this repo
Not yetcalculatedduring therepoingperiod.202-2 Propoion of senior man-agement hired from the localcommunity
Data Oveiew
GRI StandardsDisclosuresLocationOmission
Indirect economic impactGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Public Welfare Investment for RuralRevitalizationGRI 203: IndirectEconomic Impacts2016
203-1 Infrastructure invest-ments and seices suppoed
Public Welfare Investment for RuralRevitalization203-2 Signicant indirect eco-nomic impacts
Public Welfare Investment for RuralRevitalizationProcurement practicesGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Responsible SourcingResponsible Mineral ManagementGRI 204: Procure-ment Practices 2016
204-1 Propoion of spendingon local suppliers
Not covered in this repo
Not yetcalculatedduring therepoingperiod.Anti-corruptionGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Anti-corruption and Anti-bribe
GRI 205: Anti-cor-
ruption 2016
205-1 Operations assessed forrisks related to corruption
Anti-corruption and Anti-bribe205-2 Communication andtraining about anti-corruptionpolicies and procedures
Anti-corruption and Anti-bribe205-3 Conrmed incidents ofcorruption and actions taken
Anti-corruption and Anti-bribe
Data Oveiew
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
GRI StandardsDisclosuresLocationOmissionAnti-competitive behavior
GRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Anti-monopoly and Anti-unfairCompetition
GRI 206: Anti-com-petitive Behavior
2016
206-1 Legal actions for an-ti-competitive behavior, an-ti-trust, and monopoly practices
Anti-monopoly and Anti-UnfairCompetitionData OveiewTax
GRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Tax Compliance Management
GRI 207: Tax 2019
207-1 Approach to taxTax Compliance Management207-2 Tax governance, control,and risk management
Tax Compliance Management207-3 Stakeholder engagementand management of concernsrelated to tax
Tax Compliance Management
Stakeholders Communication207-4 Count-by-count re-poing
Not covered in this repo
Data notavailableduring thisrepo period
Materials
GRI 3: Material Top-
ics 2021
3-3 Management of materialtopics
Pollutants Emissions Control
Resource Utilization and Circular
Economy
GRI 301: Materials
2016
301-1 Materials used by weightor volume
Resource Utilization and Circular
Economy
Data Oveiew301-2 Recycled input materialsused
Pollutants Emissions Control
Resource Utilization and Circular
Economy
Data Oveiew301-3 Reclaimed products andtheir packaging materials
Resource Utilization and Circular
Economy
Data Oveiew
GRI StandardsDisclosuresLocationOmission
Energy
GRI 3: Material Top-ics 2021
3-3 Management of materialtopics
GHG Emissions ManagementAction to Reduce GHG EmissionsResource Utilization and CircularEconomy
GRI 302: Energy
2016
302-1 Energy consumptionwithin the organization
GHG Emissions ManagementData Oveiew302-2 Energy consumption out-side of the organization
GHG Emissions ManagementData Oveiew302-3 Energy intensityData Oveiew302-4 Reduction of energy con-sumption
Action to Reduce GHG Emissions302-5 Reductions in energyrequirements of products andseices
Action to Reduce GHG EmissionsWater and euentsGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Water Conseation
Pollutants Emissions Control
GRI 303: Water andEuents 2018
303-1 Interactions with water asa shared resource
Water Conseation
Pollutants Emissions Control303-2 Management of waterdischarge-related impacts
Water Conseation
Pollutants Emissions Control303-3 Water withdrawal
Water Conseation
Data Oveiew
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
GRI StandardsDisclosuresLocationOmission
Water and euentsGRI 303: Water andEuents 2018
303-4 Water discharge
Water ConseationPollutants Emissions ControlData Oveiew303-5 Water consumption
Water ConseationData Oveiew
BiodiversityGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Pollution Control and EcosystemProtection
GRI 304: Biodiversity
2016
304-1 Operational sites owned,leased, managed in, or adjacentto, protected areas and areas ofhigh biodiversity value outsideprotected areas
Biodiversity Conseation
304-2 Signicant impacts ofactivities, products and seiceson biodiversity
Biodiversity Conseation304-3 Habitats protected orrestored
Biodiversity Conseation304-4 IUCN Red List species andnational conseation list specieswith habitats in areas aectedby operations
Not covered in this Repo
The company'soperationalarea and itssurroundingregions do notencompassaectedhabitats.
GRI StandardsDisclosuresLocationOmission
EmissionsGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
GHG Emissions ManagementAction to Reduce GHG Emissions
GRI 305: Emissions
2016
305-1 Direct (Scope 1) GHGemissions
GHG Emissions ManagementData Oveiew305-2 Energy indirect (Scope 2)GHG emissions
GHG Emissions ManagementData Oveiew305-3 Other indirect (Scope 3)GHG emissions
GHG Emissions ManagementData Oveiew305-4 GHG emissions intensity
GHG Emissions ManagementData Oveiew305-5 Reduction of GHG emis-sions
GHG Emissions ManagementAction to Reduce GHG Emissions
305-6 Emissions of ozone-de-pleting substances (ODS)
Not covered in this repo
Thecompany'soperationsdo notinvolverelevantemissions305-7 Nitrogen oxides (NOx),sulfur oxides (SOx), and othersignicant air emissions
Pollutants Emissions ControlData Oveiew
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
GRI StandardsDisclosuresLocationOmissionWaste
GRI 3: Material Top-ics 2021
306-1 Waste generation andsignicant waste-related im-pacts
Pollutants Emissions ControlResource Utilization and CircularEconomy306-2 Management of signi-cant waste-related impacts
Pollutants Emissions ControlResource Utilization and CircularEconomy306-3 Waste generated
Pollutants Emissions ControlResource Utilization and CircularEconomyData Oveiew306-4 Waste diveed from dis-posal
Pollutants Emissions ControlResource Utilization and CircularEconomyData Oveiew306-5 Waste directed to dispos-al
Pollutants Emissions ControlResource Utilization and CircularEconomyData Oveiew
Supplier environmental assessment
GRI 3: Material Top-
ics 2021
3-3 Management of materialtopics
Responsible SourcingResponsible Mineral Management
GRI 308: SupplierEnvironmental As-
sessment 2016
308-1 New suppliers that werescreened using environmentalcriteria
Responsible SourcingResponsible Mineral Management308-2 Negative environmentalimpacts in the supply chain andactions taken
Responsible SourcingResponsible Mineral Management
GRI StandardsDisclosuresLocationOmission
EmployeeGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Human Rights Protection
GRI 401: Employ-ment 2016
401-1 New employee hires andemployee turnover
Employee DevelopmentData Oveiew401-2 Benets provided to full-time employees that are notprovided to tempora or pa-time employees
Employee Development401-3 Parental leaveNot covered in this repo
Not yetcalculatedduring thisrepo periodLabor management relationsGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Human Rights ProtectionGRI 402: Labor/Man-agement Relations2016
402-1 Minimum notice periodsregarding operational changes
Not covered in this repoNot Applicable
Occupational Health and Safety
GRI 3: Material Top-
ics 2021
3-3 Management of materialtopics
Occupational Health and Safety
GRI 403: Occupa-tional Health and
Safety 2018
403-1 403-1 Occupationalhealth and safety managementsystem
Occupational Health and Safety403-2 Hazard identication, riskassessment, and incident inves-tigation
Pollutants Emissions Control
Occupational Health and Safety403-3 Occupational health ser-vices
Occupational Health and Safety
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
GRI StandardsDisclosuresLocationOmissionOccupational Health and Safety
GRI 403: Occupa-tional Health andSafety 2018
403-4 Worker paicipation,consultation, and communica-tion on occupational health andsafety
Occupational Health and Safety403-5 Worker training on oc-cupational health and safety
Occupational Health and Safety403-6 Promotion of workerhealth
Occupational Health and Safety403-7 Prevention and mitiga-tion of occupational health andsafety impacts directly linked bybusiness relationships
Occupational Health and Safety403-8 Workers covered by anoccupational health and safetymanagement system
Occupational Health and Safety403-9 Work-related injuries
Occupational Health and Safety
Data Oveiew403-10 Work-related ill healthOccupational Health and SafetyTraining and educationGRI 3: Material Top-
ics 2021
3-3 Management of materialtopics
Employee Development
Occupational Health and Safety
GRI 404: Trainingand Education 2016
404-1 Average hours of trainingper year per employee
Data Oveiew404-2 Programs for upgradingemployee skills and transitionassistance programs
Employee Development404-3 Percentage of employeesreceiving regular peormanceand career development reviews
Employee Development
GRI StandardsDisclosuresLocationOmission
GRI 404: Training and Education 2016
GRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Human Rights ProtectionResponsible SourcingResponsible Mineral ManagementGRI 405: Diversityand Equal Oppou-
nity 2016
405-1 Diversity of governancebodies and employees
Human Rights Protection405-2 Ratio of basic sala andremuneration of women to men
Not covered in this repo
Not yetcalculatedduring thisrepo periodNon-discriminationGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Human Rights ProtectionGRI 406: Non-dis-crimination 2016
406-1 Incidents of discrimina-tion and corrective actions taken
Human Rights ProtectionFreedom of association and collective bargainingGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Employee CommunicationGRI 407: Freedomof Association andCollective Bargaining
2016
407-1 Operations and suppliersin which the right to freedomof association and collectivebargaining may be at risk
Employee CommunicationChild laborGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Human Rights Protection
Responsible Sourcing
Responsible Mineral ManagementGRI 408: Child Labor
2016
408-1 Operations and suppliersat signicant risk for incidents ofchild labor
Human Rights Protection
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
GRI StandardsDisclosuresLocationOmission
Forced or compulso labor
GRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Human Rights ProtectionResponsible SourcingGRI 409: Forced orCompulso Labor
2016
409-1 Operations and sup-pliers at significant risk forincidents of forced or com-pulsory labor
Human Rights ProtectionSecurity practicesGRI 3: Material Top-
ics 2021
3-3 Management of materialtopics
Human Rights Protection
GRI 410: SecurityPractices 2016
410-1 Security personneltrained in human rights policiesor procedures
Human Rights ProtectionRight of indigenous peoples
GRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Harmonious Engagement in
CommunityGRI 411: Rights ofIndigenous Peoples
2016
411-1 Incidents of violationsinvolving rights of indigenouspeoples
Harmonious Engagement in
Community
GRI StandardsDisclosuresLocationOmission
Local communitiesGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Harmonious Engagement inCommunity
GRI 413: Local Com-munities 2016
413-1 Operations with localcommunity engagement, impactassessments, and developmentprograms
Harmonious Engagement inCommunity413-2 Operations with signi-cant actual and potential nega-tive impacts on local communi-ties
Harmonious Engagement inCommunitySupplier social assessmentGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Responsible SourcingResponsible Mineral ManagementGRI 414: SupplierSocial Assessment2016
414-1 New suppliers that werescreened using social criteria
Responsible SourcingResponsible Mineral Management414-2 Negative social impactsin the supply chain and actionstaken
Responsible SourcingResponsible Mineral ManagementPublic policyGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Not covered in this repoNot applicableGRI 415: Public Poli-cy 2016
415-1 Political contributionsNot covered in this repo
Not involvedin relevantmattersCustomer health and safetyGRI 3: Material Top-ics 2021
3-3 Management of materialtopics
Responsible Products and Seices
| 2023 Sustainability Report
Preparation of Report Message from the Chairman About XTC Environmental Social Governance Appendix
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
GRI StandardsDisclosuresLocationOmissionCustomer health and safetyGRI 416: CustomerHealth and Safety2016
416-1 Assessment of the healthand safety impacts of product andseice categories
Responsible Products and Seices416-2 Incidents of non-compli-ance concerning the health andsafety impacts of products andseices
Responsible Products and Seices
Marketing and labelingGRI 3: Material
Topics 2021
3-3 Management of materialtopics
Responsible Products and Seices
GRI 417: Market-ing and Labeling2016
417-1 Requirements forproduct and seice informa-tion and labeling
Responsible Products and Seices417-2 Incidents of non-com-pliance concerning productand seice information andlabeling
Responsible Products and Seices417-3 Incidents of non-com-pliance concerning market-ing communications
Responsible Products and SeicesCustomer privacyGRI 3: Material
Topics 2021
3-3 Management of materialtopics
Responsible Products and SeicesGRI 418: Customer
Privacy 2016
418-1 Substantiated com-plaints concerning breachesof customer privacy andlosses of customer data
Responsible Products and Seices
CoreElements
Disclosure Recommendations
DisclosurePlacement
Governance
a) The governance body(s) (which can include aboard, committee
or equivalent body charged with governance) or individual(s)responsible for oversight of sustainability-related risks andoppounities.
ESG GovernanceStructureRisk Managementb) Management’s role in the governance processes, controls andprocedures used to monitor, manage and oversee sustainability-related risks and oppounities.
ESG GovernanceStructureRisk Management
Strategy
a) The sustainability-related risks and oppounities that couldreasonably be expected to aect the entity’s prospects within thetime horizons—sho, medium or long term.
Sustainability RiskManagementb) The current and anticipated eects of sustainability-relatedrisks and oppounities on the entity’s business model and valuechain, and where in the entity’s business model and value chainsustainability-related risks and oppounities are concentrated.
Sustainability RiskManagement
c) How the entity has responded to, and plans to respond to,
sustainability-related risks and oppounities in its strategy anddecision-making, and the progress against plans the entity hasdisclosed in previous repoing periods, including quantitative andqualitative information, and trade-os between sustainability-related risks and oppounities that the entity considered.
Sustainability RiskManagement
d) The quantitative and qualitative eects of sustainability-related
risks and oppounities on the entity’s nancial position, nancialpeormance and cash ows for the repoing period, and thesustainability-related risks and oppounities identied for whichthere is a signicant risk of a material adjustment within the nextannual repoing period to the caring amounts of assets andliabilities repoed in the related nancial statements, and how theentity expects its nancial position, nancial peormance and cashows to change over the sho, medium and long term, given itsstrategy to manage sustainability-related risks and oppounities.
Not covered in therepo
ISDS Index
IFRS S1
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
CoreElements
Disclosure Recommendations
DisclosurePlacementStrategy
e)The resilience of the entity’s strategy and its businessmodel to those sustainability-related risks
Risk Management
RiskManagement
a)The processes and related policies the entity uses to identify,assess, prioritize and monitor sustainability-related risks,including information about: the inputs and parametersthe entity uses，whether and how the entity uses scenarioanalysis to inform its identication of sustainability-relatedrisks, whether and how the entity prioritizes sustainability-related risks, how the entity assesses the nature, likelihoodand magnitude of the eects of those risks.
Sustainability RiskManagementRisk Management
b)The processes the entity uses to identify, assess, prioritizeand monitor sustainability-related oppounities, including:
whether and how the entity uses scenario analysis to informits identication of sustainability-related oppounities.
Sustainability RiskManagementc)The extent to which, and how, the processes the entity usesto identify, assess, prioritize and monitor sustainability-related risks and oppounities are integrated into andinform the entity’s overall risk management process.
Sustainability RiskManagementRisk Management
Metrics andtargets
a)Metrics required by an applicable IFRS SustainabilityDisclosure Standard.
EnvironmentalSocialGovernanceb)Metrics the entity uses to measure and monitorsustainability-related risks or oppounities and itspeormance in relation to that sustainability-related risk oroppounity.
EnvironmentalSocialGovernancec)Any targets the entity has set it is required to meet by lawor regulation.
EnvironmentalSocialGovernance
CoreElements
Disclosure Recommendations
DisclosurePlacement
Governance
a) The governance body(s) (which can include a board, committee orequivalent body charged with governance) or individual(s) responsiblefor oversight of climate-related risks and oppounities.
ESG GovernanceStructureRisk Managementb) Management’s role in the governance processes, controls andprocedures used to monitor, manage and oversee climate-related risksand oppounities.
ESG GovernanceStructureRisk Management
IFRS S2
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
Strategy
a)The climate-related risks and opportunities that could reasonably beexpected to affect the entity’s prospects within time horizons—short,medium or long term, whether the entity considers the risk to be a climate-related physical risk or climate-related transition risk
Sustainability RiskManagement
b)The current and anticipated effects of climate-related risks andoppounities on the entity’s business model and value chain, and wherein the entity’s business model and value chain climate-related risks andoppounities are concentrated
Sustainability RiskManagementc)Information about how the entity has responded to, and plans to respondto, climate-related risks and oppounities in its strategy and decision-making, including how the entity sets targets, how the entity is resourcingand quantitative and qualitative information about the disclosed progressof plans.
Sustainability RiskManagementd)The quantitative and qualitative effects of those climate-related risksand oppounities on the entity’s nancial position, nancial peormanceand cash flows for the reporting period, the climate-related risks andoppounities identied in paragraph 16(a) for which there is a signicantrisk of a material adjustment within the next annual reporting periodto the caring amounts of assets and liabilities repoed in the relatedfinancial statements, and how the entity expects its financial position,nancial peormance and cash ows to change over the sho, mediumand long term, given its strategy to manage climate-related risks andoppounities.
Not covered in the repo
CoreElements
Disclosure Recommendations
DisclosurePlacement
Strategy
e)The processes and related policies the entity uses to identify, assess,prioritize and monitor climate-related risks, including information about:
the inputs and parameters the entity uses, whether and how the entityuses climate-related scenario analysis to inform its identification ofclimate-related risks, whether and how the entity prioritizes climate-related risks, how the entity assesses the nature, likelihood andmagnitude of the eects of those risks
Sustainability RiskManagement
Risk Management
a) The processes and related policies the entity uses to identify, assess,prioritize and monitor climate-related risks, including information about:
the inputs and parameters the entity uses, whether and how the entityuses climate-related scenario analysis to inform its identification ofclimate-related risks, whether and how the entity prioritizes climate-related risks, how the entity assesses the nature, likelihood andmagnitude of the eects of those risks
Sustainability RiskManagementRisk Management
b) The processes the entity uses to identify, assess, prioritize and monitor
climate-related opportunities, including information about whetherand how the entity uses climate-related scenario analysis to inform itsidentication of climate-related oppounities.
Sustainability RiskManagement
c) The extent to which, and how, the processes for identifying,
assessing, prioritizing and monitoring climate-related risks andopportunities are integrated into and inform the entity’s overall riskmanagement process.
Sustainability RiskManagementRisk Management
CoreElements
Disclosure Recommendations
DisclosurePlacement
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
SASB TopicsAccounting MetricsLocation
Greenhouse GasEmissions
EM-MM-110a.1:
Gross global Scope 1 emissions, percentagecovered under emissions-limiting regulations
GHG Emissions ManagementData OveiewEM-MM-110a.2:
Discussion of long-term and sho-termstrategy or plan to manage Scope 1emissions, emissions reduction targets,and an analysis of peormance againstthose targets
Addressing Climate Change
Air Quality
EM-MM-120a.1:
Air emissions of the following pollutants:
(1) CO, (2) NOx (excluding N?O), (3) SOx, (4)
paiculate matter (PM10), (5) mercu (Hg), (6)lead (Pb), and (7) volatile organic compounds(VOCs)
Pollutants Emissions ControlData Oveiew
Energy Management
EM-MM-130a.1:
(1) Total energy consumed, (2) percentage grid
electricity, (3) percentage renewable
GHG Emissions ManagementAction to Reduce GHG EmissionsData Oveiew
Water Management
EM-MM-140a.1:
(1) Total fresh water withdrawn, (2) total fresh
water consumed, percentage of each in regionswith High or Extremely High Baseline WaterStress
Water ConseationData OveiewEM-MM-140a.2:
Number of incidents of non-complianceassociated with water quality permits, standards,and regulations
Pollution Control and EcosystemProtectionSASB TopicsAccounting MetricsLocation
SASB Index
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
Waste & Hazardous
MaterialsManagement
EM-MM-150a.4:
Total weight of non-mineral waste generated
Pollutants Emissions ControlData OveiewEM-MM-150a.5:
Total weight of tailings produced
Pollutants Emissions ControlData OveiewEM-MM-150a.6:
Total weight of waste rock generated
Pollutants Emissions ControlData OveiewEM-MM-150a.7:
Total weight of hazardous waste generated
Pollutants Emissions ControlData OveiewEM-MM-150a.8:
Total weight of hazardous waste recycled
Not covered in this repoEM-MM-150a.9:
Number of signicant incidents associated withhazardous materials and waste management
Waste ManagementEM-MM-150a.10:
Description of waste and hazardous materialsmanagement policies and procedures for activeand inactive operations
Waste ManagementSASB TopicsAccounting MetricsLocation
Biodiversity Impacts
EM-MM-160a.1:
Description of environmental managementpolicies and practices for active sites
Environmental PeormanceBiodiversity ConseationEM-MM-160a.2:
Percentage of mine sites where acid rockdrainage is: (1) predicted to occur, (2) activelymitigated, and (3) under treatment or remediation
Not applicableEM-MM-160a.3:
Percentage of (1) proved and (2) probableresees in or near sites with protectedconseation status or endangered specieshabitat
Not applicable
Security, HumanRights & Rights ofIndigenousPeoples
EM-MM-210a.1:
Percentage of (1) proved and (2) probableresees in or near areas of conict
Not applicableEM-MM-210a.2:
Percentage of (1) proved and (2) probableresees in or near indigenous land
Not applicableEM-MM-210a.3:
Discussion of engagement processes and duediligence practices with respect to human rights,indigenous rights, and operation in areas ofconict
Responsible Mineral Management
Harmonious Engagement in
Community
Community Relations
EM-MM-210b.1:
Discussion of process to manage risks andoppounities associated with community rightsand interests
Responsible Mineral Management
Harmonious Engagement in
Community
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Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
SASB TopicsAccounting MetricsLocationCommunity Relations
EM-MM-210b.2:
Number and duration of non-technical delays
Not applicable
Labor Relations
EM-MM-310a.1:
Percentage of active workforce covered undercollective bargaining agreements, broken downby U.S. and foreign employees
Employee Communication
EM-MM-310a.2:
Number and duration of strikes and lockouts
Occupational Health and SafetyData Oveiew
Workforce Health &Safety
EM-MM-320a.1:
(1) MSHA all-incidence rate, (2) fatality rate, (3)
near miss frequency rate (NMFR) and (4) averagehours of health, safety, and emergency responsetraining for (a) full-time employees and (b) con-tract employees
Occupational Health and SafetyData Oveiew
PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
E.1 Re-sourceCon-sump-tion
E.1.1 WaterResource
E.1.1.1 Fresh-water consumptionData OveiewE.1.1.2 Circulating water consump-tion
Water ConseationData OveiewE.1.1.3 The propoion of circulat-ing water consumption
Water ConseationData OveiewE.1.1.4 Water resource consump-tion intensity
Water ConseationData Oveiew
E.1.2 Materials
E.1.2.1 Consumption of non-re-newable materials
Data OveiewE.1.2.2 Consumption of toxic andhazardous materials
Not yet available in this repoE.1.2.3 Material consumption in-tensity
Data Oveiew
E.1.3 Energy
E.1.3.1 Fossil energy consumption
GHG Emissions Management
Data OveiewE.1.3.2 Non-fossil energy con-sumption
GHG Emissions Management
Action to Reduce GHG Emissions
Data OveiewE.1.3.3 The propoion of non-fossilenergy consumption
GHG Emissions Management
Action to Reduce GHG Emissions
Data Oveiew
Indicators Reference for ESG Report of ListedChinese Central State-Owned Enterprises
Environmental
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
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PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
E.1 Re-sourceCon-sump-tion
E.1.3 Energy
E.1.3.4 The total energy consump-tion
GHG Emissions ManagementData OveiewE.1.3.5 The energy consumptionintensity
Data OveiewE.1.4 Packagingmaterials
E.1.4.1 The amount of packagingmaterials used
Resource Utilization and Circular
Economy
Data OveiewE.1.4.2 Light-weighting and reduc-tion of packaging materials
Resource Utilization and Circular
Economy
E.2 Pol-lutionpreven-tion andcontrol
E.2.1Waste-water
E.2.1.1 The compliance status ofwastewater discharge
Water Conseation
Pollutants Emissions ControlE.2.1.2 Wastewater managementand emission reduction measures
Water Conseation
Pollutants Emissions Control
Data OveiewE.2.1.3 Volume of wastewaterdischarge
Data OveiewE.2.1.4 The discharge volume ofwastewater pollutants
Pollutants Emissions Control
Data OveiewE.2.1.5 Concentration of pollut-ants discharged in wastewater
Pollutants Emissions Control
E.2.2 ExhaustAir
E.2.2.1 Compliance status of ex-haust gas emissions
Pollutants Emissions ControlE.2.2.2 Volume of air pollutantsemitted
Pollutants Emissions Control
Data OveiewE.2.2.3 Concentration of air pollut-ants emitted
Pollutants Emissions Control
PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
E.2 Pol-lutionpreven-tion andcontrol
E.2.3 SolidWaste
E.2.3.1 Compliance with legal reg-ulations on solid waste disposal
Pollutants Emissions ControlE.2.3.2 Management of generalindustrial solid waste
Pollutants Emissions ControlE.2.3.3 Disposal volume of generalindustrial solid waste
Pollutants Emissions Control
Data OveiewE.2.3.4 Management of hazardouswaste
Pollutants Emissions Control
Data OveiewE.2.3.5 Volume of hazardous wastedisposed
Pollutants Emissions Control
Data Oveiew
E.3 Climatechange
E.3.1 GHGEmissions
E.3.1.1 Sources and types of GHG GHG Emissions ManagementE.3.1.2 Management of GHGEmissions
Strategy
GHG Emissions Management
Action to Reduce GHG EmissionsE.3.1.3 Scope 1 emissions
GHG Emissions Management
Data OveiewE.3.1.4 Scope 2 emissions
GHG Emissions Management
Data OveiewE.3.1.5 Scope 3 emissions
GHG Emissions Management
Data OveiewE.3.1.6 GHG emission intensity
GHG Emissions Management
Data Oveiew
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
E.3 Climate
change
E.3.2 EmissionReductionManagement
E.3.2.1 Management of GHG emis-sion reduction
StrategyAction to Reduce GHG EmissionsE.3.2.2 GHG emission reductionAction to Reduce GHG Emissions
E.3.3 Environ-mental RightsTrading
E.3.3.1 Paicipation in the carbonemissions trading market
GHG Emissions ManagementAction to Reduce GHG EmissionsE.3.3.2 Paicipation in the energyrights, water rights, and pollutionrights trading markets
Pollutants Emissions ControlE.3.3.3 Paicipation in greenelectricity trading
Action to Reduce GHG EmissionsE.3.4 Cli-mate-relatedRisk Manage-ment
E.3.4.1 Climate-related Risk Man-agement
Sustainability Risk ManagementE.4 Biodi-
versity
E.4.1 Impactof production,seices, andproducts onbiodiversity
E.4.1.1 Impacts of production, ser-vices, and products on biodiversity
Biodiversity Conseation
E.5 Measuresfor resourceandenvironmentalmanagementsystems
E.5.1 SettingLow-CarbonDevelopmentGoals andStrategicMeasures
E.5.1.1 Setting low-carbon de-velopment goals and strategicmeasures
Addressing Climate Change
Pollution Control and Ecosystem
Protection
Resource Utilization and Circular
EconomyE.5.2 Re-source man-agementmeasures
E.5.2.1 Water resource manage-ment
Water Conseation
Pollutants Emissions Control
一级指标二级指标三级指标披露位置PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
E.5 Measuresfor resourceandenvironmentalmanagement
E.5.2 Re-source man-agementmeasures
E.5.2.2 Material utilization man-agement
Resource Utilization and CircularEconomyE.5.2.3 Energy utilization and en-ergy eciency management
GHG Emissions ManagementAction to Reduce GHG EmissionsE.5.3 Energy-saving andcarbonreductionmonitoring,statisticalrepoing, andassessmentsystem
E.5.3.1 Energy-saving and carbonreduction monitoring, statisticalrepoing, and assessment system
GHG Emissions ManagementAction to Reduce GHG Emissions
E.5.4 Greenenvironmentalactions andmeasures
E.5.4.1 Clean productionPollutants Emissions ControlE.5.4.2 Green technology upgrad-ing and recycling
Action to Reduce GHG EmissionsResource Utilization and CircularEconomyE.5.4.3 Green building renovationNot yet available in this repo .E.5.4.4 Green oce and opera-tions
Action to Reduce GHG EmissionsPollutants Emissions ControlResource Utilization and CircularEconomyE.5.4.5 Green procurement andgreen supply chain management
Responsible ProcurementResponsible Mineral ManagementE.5.4.6 Public activities for envi-ronmental protection
Not yet available in this repoE.5.5 GreenLow-CarbonCeication
E.5.5.1 Environmental manage-ment system ceication
Environmental peormance
Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
| 2023 Sustainability Report
PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
E.5 Measures
for resource
and
E.5.5 GreenLow-CarbonCeication
E.5.5.2 Green and Low-Car-bon Enterprise Certification
Pollution Control and EcosystemProtectionE.5.5.3 Green and low-carbonproduct and seice ceication
Action to Reduce GHG EmissionsResource Utilization and CircularEconomyE.5.6 Legalcompliance inenvironmentalmatters
E.5.6.1 Emergency response planfor environmental incidents
Pollutants Emissions ControlOccupational Health and SafetyE.5.6.2 Environmental violations
Pollution Control and EcosystemProtection
PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
S1 Employeerights
S1.1Employee recruit-ment and employment
S1.1.1Corporate recruitment policyand implementation
Human Rights ProtectionEmployee DevelopmentS1.1.2 Employee structure
Human Rights ProtectionEmployee DevelopmentS1.1.3 Avoiding child labor and forcedlabor
Human Rights ProtectionS1.2 Employee com-pensation and bene-ts
S1.2.1Compensation philosophy andpolicy
Human Rights Protection
Employee DevelopmentS1.2.2 Working hours and rest andleave
Employee Development
PrimaIndicators
SecondaIndicators
Teia IndicatorsLocationS1 Employeerights
S1.2 Employee com-pensation and bene-ts
S1.2.3 Compensation and benetsguarantee
Employee DevelopmentS1.2.4 Employee democratic manage-ment
Employee Development
S1 Employeerights
S1.3 Employee healthand safety
S1.3.1 Employee occupational healthand safety management
Occupational Health and
Safety
Data OveiewS1.3.2 Employee safety risk preven-tion
Occupational Health and
Safety
Data OveiewS1.3.3 Response to safety incidentsand work-related injuries
Occupational Health and
Safety
Data OveiewS1.3.4 Employee care and assistance
Occupational Health and
Safety
S1.4 Employee devel-opment and training
S1.4.1 Employee motivation and pro-motion policy
Employee DevelopmentS1.4.2 Employee education and train-ing
Employee DevelopmentS1.4.3 Employee career planning andjob change suppo
Employee Development
S1.5 Employee satis-faction
S1.5.1 Employee satisfaction sueyEmployee DevelopmentS1.5.2 Labor disputesEmployee DevelopmentS1.5.3 Employee turnover Data Oveiew
Social
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
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PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
S2 Productand seicemanagement
S2.1 Product safetyand quality
S2.1.1 Production standard manage-ment policies and measures
Responsible Products andSeicesS2.1.2 Quality management
Responsible Products andSeicesS2.1.3 Product recall and withdrawalNot covered in this repoS2.1.4 Negative incidents related toproducts or seices
Responsible Products andSeices
S2.2 Customer seiceand rights
S2.2.1 Customer satisfaction
Responsible Products andSeicesS2.2.2 Customer complaints and han-dling
Responsible Products andSeicesS2.2.3 Customer information andprivacy protection
Information Security andPrivacy Protection
S2.3 Innovationdevelopment
S2.3.1 R&D and innovation manage-ment system
Innovation-DrivenS2.3.2 R&D investmentInnovation-DrivenS2.3.3 Innovation achievementsInnovation-DrivenS2.3.4 Intellectual propey protection
Intellectual Propey Rights
Protection
Data OveiewS3 SupplyChain Safetyand Manage-ment
S3.1 Supplier Man-agemen
S3.1.1 Supplier selection and man-agement
Responsible SourcingS3.1.2 Number and distribution ofsuppliers
Data Oveiew
PrimaIndicators
SecondaIndicators
Teia IndicatorsLocationS3 SupplyChain Safetyand Manage-ment
S3.2 Supply ChainManagement
S3.2.1 Supply chain managementpolicies and measures
Innovation-Driven, Suppliers,and CustomersS3.2.2 Supply chain security assur-ance and emergency plan
Responsible MineralManagementS3.2.3 Major risks and impacts (supplychain)
Responsible MineralManagement
S4 Socialcontribution
S4.1 Tax paymentsituation
S4.1.1 Tax payment Tax Compliance ManagementS4.2 Communityco-building
S4.2.1 Policies and measures for
paicipating in local community con-
struction
Rural Revitalization and PublicSeice
S4.2.2 Contribution and impact on
the local community
Rural Revitalization and PublicSeice
S4.3 Social welfareactivities
S4.3.1 Policies and measures for par-
ticipating in social welfare activities
Rural Revitalization and PublicSeice
S4.3.2 Investment and eectiveness
in paicipating in social welfare ac-
tivities
Public Welfare Investment forRural RevitalizationData Oveiew
S4.3.3 Construction of an accessible
environment
Public Welfare Investment forRural Revitalization
S4.4 National strat-egy response
S4.4.1 Industrial transformation
Innovation-Driven, Suppliers,and CustomersRural Revitalization and PublicSeiceData Oveiew
S4.4.2 Rural revitalization and region-
al collaborative development
Public Welfare Investment forRural RevitalizationData Oveiew
S4.4.3 Belt and Road initiative and
overseas responsibility fulllment
Innovation-Driven, Suppliers,and CustomersData Oveiew
S4.4.4 Indust characteristics and
other social responsibility fulllment
Public Welfare Investment forRural RevitalizationData Oveiew
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PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
G1Governancestrategy andorganizationalstructure
G1.1 Governancestrategy and pro-cesses
G1.1.1 Governance strategy formulation
ESG Governance StructureESG PoliciesCorporate ComplianceOperationsProtection of ShareholderRightsG1.1.2 Governance strategy supeisionprocess
Risk ManagementInternal Control ComplianceStakeholders CommunicationG1.1.3 Governance strategy approval andreview process
ESG Governance StructureCorporate ComplianceOperationsG1.1.4 Leadership in Pay-building The Pay Building
G1.2 Organiza-tional structureand functions
G1.2.1 Ownership responsibilities
Corporate ComplianceOperationsRisk ManagementG1.2.2 Board of directors, board of su-peisors, and management structure andfunctions
ESG Governance StructureCorporate ComplianceOperationsG1.2.3 Appointment procedures and com-position of the board of directors, board ofsupeisors, and management
Corporate ComplianceOperations
G1.3 Compensa-tion management
G1.3.1 Compensation plan for directorsand supeisors
Corporate ComplianceOperationsG1.3.2 Transparency of the board's com-pensation
Corporate ComplianceOperationsG1.3.3 Reasonableness of managementcompensation
Corporate ComplianceOperationsGHG Emissions ManagementOccupational Health and Safety
PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
G2Standardizedgovernance
G2.1 Internalcontrol
G2.1.1 Internal auditInternal Control ComplianceG2.1.2 Internal control structure, mecha-nisms, and procedures
Internal Control ComplianceG2.2 Construc-tion
G2.2.1 Integrity construction systemsand standards
Anti-corruption and An-
ti-bribeG2.2.2 Eectiveness of integrity con-struction measures
Anti-corruption and An-
ti-bribeG2.3 Fair com-petition
G2.3.1 Fair competition system and stan-dards
Anti-monopoly and Anti-un-
fair CompetitionG2.3.2 Eectiveness of fair competitionmeasures
Anti-monopoly and Anti-
unfair Competition
Anti-corruption and Anti-
bribe
G3 Investorrelationsmanagementand share-holder rights
G3.1 Investorrelations manage-ment
G3.1.1 Investor relations managementstrategy
Protection of Shareholder
RightsG3.1.2 Investor communication
Protection of Shareholder
Rights
Stakeholders CommunicationG3.1.3 Construction of investor relationsmanagement depament
Protection of Shareholder
Rights
G3.2 Shareholderrights
G3.2.1 Shareholders’ (general) meeting
Corporate Compliance Opera-
tions
Protection of Shareholder
RightsG3.2.2 Shareholder communication
Corporate Compliance Opera-
tions
Protection of Shareholder
RightsG3.2.3 Shareholder's right to know andpaicipate in decision-making
Corporate Compliance Opera-
tions
Protection of Shareholder
Rights
Governance
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Preparation of Report Message from the Chairman About XTC Environmental Social Governance Appendix
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
PrimaIndicators
SecondaIndicators
Teia IndicatorsLocation
G3 Investorrelationsmanagementand share-holder rights
G3.3 Creditorrights
G3.3.1 Credit situationNot yet available in thisrepoG3.3.2 Bond market peormance Not yet available in thisrepo
G4 Informa-tion disclosuretransparency
G4.1 Informa-tion disclosuresystem
G4.1.1 Financial information disclosure
Protection of ShareholderRightsG4.1.2 Non-nancial information disclo-sure
Protection of ShareholderRightsG4.2 Qualityof informationdisclosure
G4.2.1Regular supeision, audit, andevaluation of all disclosed information
Not covered in the repo
G5Compliantoperation andrisk manage-ment
G5.1 Compliantoperation
G5.1.1 Compliant operation system
Risk ManagementInternal Control ComplianceG5.1.2 Construction of the compliancesystem
Risk ManagementInternal Control ComplianceG5.1.3 Specic compliance review proce-dures
Internal Control Compliance
G5.2 Risk man-agement
G5.2.1 Risk identication and early warn-ing
Sustainability Risk Manage-mentRisk ManagementInternal Control ComplianceG5.2.2 Risk control and tracking
Sustainability Risk Manage-mentRisk ManagementInternal Control ComplianceG5.2.3 Risk repoing and management
Sustainability Risk Manage-mentRisk Management
Greenhouse Gas Verification Report
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Preparation of Report Message from the Chairman About XTC Environmental Social Governance AppendixData Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
Greenhouse Gas Verification Report
2023 Sustainability Report
Preparation of Report Message from the Chairman About XTC Environmental Social Governance Appendix
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
Greenhouse Gas Verification Report
2023 Sustainability Report
Preparation of Report Message from the Chairman About XTC Environmental Social Governance Appendix
Data Overview GRl Standards Index ISDS lndex SASB Index Indicators Reference for ESG Reportsof Listed Chinese Central State-OwnedEnterprises Verification Statement of Greenhouse Gases Emissions Independent Limited Assurance Report
Xiamen Tungsten Co., Ltd.
Add: 21-22/F,Bldg A,Tefang Center,No.81,Zhanhong Road,Xiamen,ChinaTel: +86 592 3351797