读取中,请稍候

00-00 00:00:00
--.--
0.00 (0.000%)
昨收盘:0.000今开盘:0.000最高价:0.000最低价:0.000
成交额:0成交量:0买入价:0.000卖出价:0.000
市盈率:0.000收益率:0.00052周最高:0.00052周最低:0.000
金三江:2024年度环境、社会及管治(ESG)报告(英文版) 下载公告
公告日期:2025-03-31

Jinsanjiang (Zhaoqing)Silicon Material Co., Ltd

2024

Environmental, Social and

Governance Report

Stock Code:301059

Contents

About the ReportMessage from the ChairmanAbout JSJSpecial TopicAppendix

Refining Governance,Crafting a New Visionof GrowthImproving CorporateGovernanceImplementation of SustainableDevelopmentStrict Control of ComplianceRiskUpholding BusinessEthicsProtection of InformationSecurity

02030405

Empowerment throughDigital Intelligence,Innovation Leading aNew Future

Customer-CentricServiceDeepening R&DInnovationLeading IntelligentManufacturingEnsuring SafeProductionCrafting Excellencein Quality

Reciprocal Benefit andShared Prosperity,Creating a Better NewLife Together

Responsible SupplyChainAchieve CommonDevelopment

Care for Employees,Cohesion of NewTalentsProtect the Rights and Interestsof EmployeesCreate a GrowthPlatformEnhance HumanitarianCareGuarding Health andSafety

Green development,Shoulder the NewMission

Implementing GreenOperationsBuilding GreenFactoriesAdherence to GreenDevelopment

About the Report

IntroductionJinsanjiang (Zhaoqing) Silicon Material Co., Ltd. (hereinafter referred to as "JSJ", "the Company,"or "We") is pleased to release the 2024 Environmental, Social and Governance (ESG) Report("the report"), aiming to provide stakeholders with information on JSJ's practices andperformance in ESG aspects.

Basis of Preparation

The report draws on the GRI Sustainability Reporting Standards (GRI Standards) of the GlobalSustainability Standards Board, and the United Nations Sustainable Development Goals (UNSDGs). At the same time, it is compiled in accordance with three guidelines of the ShenzhenStock Exchange (SZSE), i.e. the Shenzhen Stock Exchange Social Responsibility Instructions toListed Companies, the Rules Governing the Listing of Shares on the ChiNext Market ofShenzhen Stock Exchange, and the Shenzhen Stock Exchange Guideline No.2 onSelf-Regulation of Listed Companies on the ChiNext Board.

Reporting PeriodThe report covers the period from January 1, 2024, to December 31, 2024. Toenhance comparability of the report and provide forward-looking information,the reporting period of some content is moderately extended.

Information SourceThe statistics and cases in the report are mainly derived from the Company’s official documents,statistical reports, and relevant public documents. The Company undertakes that there is no falserecord or misleading statement in the report, and bears responsibility for the truthfulness, accuracy,and completeness of its content. This report was considered and adopted by the Board of Directors on03/28/2025.

Access to the ReportThe report can be viewed and downloaded on the official website of SZSE (www.szse.cn), theCompany's website (https://www.gz-silica.com),and CNINFO (http://www.cninfo.com.cn).For further inquiries or any questions or suggestions regarding the report, please contact the Companyvia email at ir@jsjgcl.com.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAbout the Report

Message from the Chairman

Strengthening Foundations and Optimizing ESGGovernanceOptimizing ESG governance is the cornerstone of high?qualitydevelopment. In 2024, we have established a dedicated ESGCommittee under the Board, building an integratedgovernance framework that encompasses strategic decision?making, execution and supervision, and risk prevention.Simultaneously, we continuously improved our riskmanagement systems, reinforced internal audits and oversight,and actively conducted compliance training to safeguard ourdevelopment. In our interactions with the capital markets, westrictly adhere to information disclosure standards and haveestablished a transparent operational model.Sticking to Digital Transformation to Ignite InnovationInnovation is the primary driver of high?quality development. In2024, we deepened our commitment to the principle of“digitizing all business processes and transforming data intoactionable insights” by launching three core projects—theTraditional Systems Optimization Project, the IntelligentPlatform Construction Project, and the Digital TalentCultivation Project—thereby significantly enhancing the digitalcapabilities of our production, R&D, sales, and operations. Inproduction, our MES system has enabled lean manufacturingto reduce resource waste; in R&D, our PLM system hasempowered our research efforts and boosted productdevelopment efficiency; in sales, our CRM system hasoptimized service delivery to elevate customer satisfaction;and in operations, our OA and SAP systems have streamlinedwork processes.

Committed to Green Transition to Fulfill the DualCarbon MissionEnvironmental protection is a key objective of high?qualitydevelopment. In terms of energy conservation and emissionsreduction, we have actively installed distributed photovoltaicsystems and optimized our power resource allocation. In cleanproduction, we have continuously upgraded our wastewatertreatment systems, implemented stringent emissionsmonitoring, and developed recycling processes for wasteresidue to reduce discharges. To address climate change, wehave conducted comprehensive risk and opportunityassessments and formulated strategies to enhance our climateresilience. Additionally, we are actively developing greenfactories—embedding eco?friendly practices throughoutproduction and downstream transportation—to maximizeenvironmental benefits.Embracing a People-Oriented Approach to UniteTalent for GrowthOur employees are our most valuable strategic asset. Adheringto a people?first principle, we continually optimize ourcomprehensive talent management system—from recruitmentand selection through development to retention—andcontinuously strengthen our talent capabilities. To foster aninclusive and equitable work environment, we have madediversity and equality an integral part of our corporate culture,providing a platform for employees of all nationalities, ages,and genders to showcase their talents. In addition, we haveestablished a robust incentive system and a generous benefits

package to share the rewards of our growth with our workforce.Moreover, we have developed a wide array of training programsdesigned to help employees realize their full potential and achievepersonal growth.Putting Responsibility First to Build a Harmonious FuturePromoting a culture of responsibility is essential for building aharmonious future. At JSJ, we prioritize the development of oursuppliers. In 2024, we optimized our supplier management systemby integrating sustainability requirements into our procurementprocesses. We conduct comprehensive evaluations of key factors—including product quality, environmental compliance, and deliverycapabilities—and perform regular on?site audits at supplierfacilities to help enhance their sustainability practices. At the sametime, we actively engage in public welfare initiatives, giving back tosociety through tangible actions and contributing to theharmonious development of our community.Reflecting on 2024, JSJ has fortified its development foundationthrough robust ESG governance. Looking ahead to 2025, we willcontinue to deepen our dual?engine strategy—leveraging maturecorporate governance to build a sustainable organization andharnessing digital transformation to unlock our growth potential.JSJ remains committed to a green development path, continuouslydelivering high?quality products to our customers, inspiring positivesocietal momentum, and actively fulfilling our mission to drivesustainable social development.

Chairman

Zhao Guofa

2024 marked a year of rapid business growth and a significant move toward high?quality development for JSJ. We have consistently upheld a customer?oriented philosophy while steadily advancing its "globaldevelopment"strategy. At the same time, we have continuously strengthened our risk management and internal control systems to support our high?quality development objectives. Over 21 years of dedicated effort,we have refined our governance framework by comprehensively planning, implementing, supervising, and reviewing our ESG initiatives. This year, our achievements in the areas of Environment, Social, andGovernance (ESG) have been widely recognized, as evidenced by our receipt of the"2024 Light Industry Corporate Social Responsibility Rating: AAAA"and our ranking among the "Top 100 Innovative Enterprises (2ndEdition) 2024".

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTMessage from the Chairman

Jinsanjiang (Zhaoqing) Silicon Materials Co., Ltd., established in 2003, successfully went public in 2021 (stock code: 301059). It is a customer-centric and innovation-driven provider of functional silica solutions. Jinsanjiang is dedicated to "becoming a global leader in siliconmaterials," focusing on the research, development, production, and sales of precipitated silica.

About JSJ

Company Profile

Research and Innovation

Jinsanjiang places great importance on product innovation, research, and development, as well as the optimization of process technology. Through continuous investment and innovation, it has established a research and development team consisting of doctors, masters, andtechnical experts. The company has set up a 4700㎡ high-standard research and development center equipped with a series of advanced R&D equipment, ensuring its technical leadership in the industry. The company has been honored with titles such as "Provincial EnterpriseTechnology Center," "Guangdong Functional Silica Engineering Technology Research Center," "Guangdong Demonstration Enterprise for the Promotion and Application of Innovative Methods," and "National Specialized and New 'Little Giant' Enterprise."Lean ProductionJinsanjiang has two major production bases, one of which is the intelligent factory (Factory Two), covering an area of 68,000㎡. It was completed in 2022 and officially put into production in 2023. The intelligent factory (Factory Two) is designed according to the standards ofinformatization, intelligence, digitalization, and greenification. It has established an intelligent production line with a DCS (distributed control system) as the brain, high-precision instruments as the senses, high-performance production equipment as the main body, and a digitalsystem as the core. At the same time, the company is equipped with green facilities such as distributed photovoltaics, online wastewater and exhaust gas detection, zero solid waste emissions, steam and gas recovery, and drying waste heat recovery, embracing sustainabledevelopment. In 2024, the company was awarded the title of "National Green Factory."Global SalesThe company continues to develop domestic and overseas customers, creating value for the world with high-quality products. Domestically, the company will deepen strategic partnerships with core customers, raising the level of cooperation to new heights. Overseas, afterestablishing subsidiaries in Hong Kong, China, the United States, Poland, and Mexico, the company has set up an overseas team responsible for overseas market development. In 2024, the company accelerated the construction of its overseas supply chain, formulated overseasdelivery solutions, and improved its ability to serve global customers.Over the past twenty-one years, the company has focused on the silica business, adhering to the strategy of "global development" and "high-quality development" to create a healthy corporate ecosystem. In the future, the company will continue to provide customized siliconmaterials to customers in industries such as toothpaste, food and pharmaceuticals, silicone rubber, antistatic agents, and storage batteries, offering silica solutions that exceed expectations and create value for customers.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAbout JSJ

Development History JSJ was established in 2003, and after 21 years of development, has become a global leader in the supply of precipitated silica. It was officially listed on the ChiNext board of the Shenzhen Stock Exchange on September 12,2021.

2003

Company established

2004

First production line completed

2007First ISO9001 quality management systemcertification;successfully developed and put into productioncolored friction particles

2010

First ISO14001 environmental managementsystem certification

2012

First "Guangdong Province Clean ProductionEnterprise Certification"

2013

First "National High-techEnterprise Certification"

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTDevelopment History

2014

Awarded "Guangdong FunctionalSilica Engineering TechnologyResearch Center"

2016First intellectual property managementsystem certification2017

Automation upgrade of the second linein Factory One completed2018

First Kosher Jewish certification,EU REACH certification

2019

Successful corporate share reform, first awarded"Guangdong Province Intellectual PropertyDemonstration Enterprise" and "National IntellectualProperty Advantage Enterprise"

2020

First natural certification

2021First ISO 22000 food safetymanagement system certification

2023

Intelligent Factory (Factory Two) officially put intoproduction; obtained ISO 50001 energymanagement system certification; received thelaboratory accreditation certificate from the ChinaNational Accreditation Service for ConformityAssessment (CNAS certification); titled "GuangdongProvincial Model and Craftsman Talent Innovation Studio"

2022

Intelligent Factory (Factory Two) completed;awarded "The 23rd China Patent Excellence Award"and "Provincial Enterprise Technology Center," withmultiple products recognized as "2021 GuangdongFamous and Excellent High-tech Products"

2024

Awarded National Specialized and New "Little Giant" Enterprise, National Green Factory, and Guangdong Provincial Green Factory

ESG Performance and Honors

Economic

Operating revenue

385.5495 million yuan

Total assets

730.85 million yuan

Total profit

60.5893 million yuan

Environmental

The intensity of hazardous waste dischargehas decreased compared to 202320%

The intensity of water resource use has decreasedcompared to 202312%

Social

Social

R&D Investmentamount

17.8169million yuan

Total R&Dpersonnel50 Persons

Accumulatedpatent authorizations134 Items

Accumulatedintellectual property rights150 ItemsThe business scope covered by thecompany's ISO 9001 quality management system certification

100%

Employees participatingin the safety training.

374 Persons

The rate of occupationalhealth check-ups100%The number of safetytraining sessions13 Times

The number of safetyproduction accidents

0 Number

The signing rate oflabor contracts

100%

The number of deaths due towork-related accidents0 Person

The coverage rate ofsocial insurance100%

The staff trainingcoverage rate100%

The total training hoursfor employees4,003 Hours

The cumulative amount of donationsover the past three years46,200 YuanThe training hours for employeeshave increased compared to 2023

19.35%

Publish paper through industry-university-research cooperation1 Item

Industry-academia-researchcooperation patents2 ItemsTake the lead in drafting theformulation of silica-related standards2 Items

Honors and Awards

Governance

Totalannouncements91 Times

Regularreports4 Times

Interimannouncements87 Times

The proportion of female memberson the board of directors

16.7%

Honor Wall (partial honors)

National Intellectual PropertySuperior EnterpriseGuangdong ProvinceGreen FactoryGuangdong ProvinceClean Production EnterpriseCouncil Member Unit of the 3rdGuangdong Province CleanProduction AssociationZhaoqing City Top 50 Enterprisesin Science and Technology Innovation for 2023

Zhaoqing High-Tech IndustrialZone Quality Award

"Outstanding Member Unit" ofthe Guangdong Province CleanProduction Association in 2024

"High-Purity Nanoscale Silicon DioxidePreparation Technology" Scientific andTechnological Achievement Certificate

Guangdong Province DemonstrationEnterprise for the Promotion andApplication of Innovative MethodsAdvanced Unit in the Industry'sHigh-Quality Development

Selected as a "Leader" in China's LightIndustry Digital TransformationCase for 2024

"Ray of Hope" Top 100Innovative Enterprises

High-TechEnterprise

Innovative Small andMedium-Sized Enterprise

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTESG Performance and Honors

Refining Governance,Crafting a New Vision of Growth

We continuously strengthen corporate governance systems, enhance riskresilience, and establish a robust ESG governance framework. Upholding highstandards of business ethics, we prioritize data security and privacy protectionto create long-term value for all stakeholders.

Our goal is to achieve green and low-carbon operations, actively addressclimate change, and integrate environmental protection principles into productdevelopment, creating ecological benefits across our value chain.Green development, Shoulderthe New Mission

We value every employee, adhere to equal employment practices, and protectlabour rights while enhancing employee welfare. Through continuous trainingand development programs, we foster shared growth and unlock potential.

We focus on sustainable supply chain operations, practice responsibleprocurement, and mitigate risks. We actively contribute to industry developmentand engage in social welfare initiatives, fulfilling our corporate socialresponsibility (CSR) commitments.

Sustainable Development Goals (SDGs) Response

Corresponding ChapterUN SDGsUN SDGs Response

Empowerment through DigitalIntelligence, Innovation Leading aNew Future

Care for Employees, Cohesionof New Talents

Reciprocal Benefit and SharedProsperity, Creating a Better NewLife Together

We prioritize customer relationship management, deepen R&D innovation, andpursue digital and intelligent transformation to deliver high-quality products.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTSustainable Development Goals (SDGs) Response

In 2024, Jinsanjiang upgraded its cultural philosophy of "customer-centric, innovation-driven, long-term hard work,and self-criticism" and launched the "Corporate Culture Handbook" (hereinafter referred to as the "CultureHandbook") for the first time. The "Culture Handbook" elaborates on "What is the company? What is it not? Whatdoes it do? What does it not do?" through the sections of Concept, Management, and Employees. It strengthens thecompany's core values and provides a standard for employee behavior.

Become a global leader insilicon materials

2024 marked the beginning year for Jinsanjiang to fully implement corporate culture, as well as a crucial year for the company to step into high-quality development.The company uses the "Corporate Culture Handbook" as a vehicle to refine its corporate values, interprets the corporate culture with vivid cases, strengthens theemployees' sense of identity and belonging, and lays the foundation for the efficient operation of the company.

Refreshing Cultural Genetics to Drive Organizational Evolution

Consolidating the Cultural Core, Unleashing Organizational Vitality

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

Our Vision

New employees are the freshblood of the company, andonboarding training is the firststep for employees to get intouch with the corporateculture. The companyintroduces its history, corevalues, mission, and vision tothe employees through thecultural training for new hires.

Corporate culture training

Create a prominent culturalpromotion area within thecompany's office space, such ascultural walls and bulletin boards,to display the company's corevalues, mission and vision, teamspirit, and stories of outstandingemployees. To enhance thepromotional effect, the companyencourages employees to activelycontribute, such as sharing theirunderstanding of the companyculture and stories ofimplementation.

Corporate culture promotion

The company regularlyorganizes various corporatecultural theme activities, suchas Spring Festival andMid-Autumn Festival events,integrating corporate cultureinto specific activities, so thatemployees can deeplyexperience and practice thecorporate culture.

Cultural theme activities

Our MissionOur ValueCustomized silicon materialsCreate value for customersRealize the dreams of employeesContribute to society

Customer-centricDriven by innovationLong-term hard workInsist on self-criticism

Cultural PhilosophyUpgrade

Cultural PracticeAchievements

The company is cultivating ateam of professional culturalambassadors, who serve as animportant force in promoting theimplementation of corporateculture. These culturalambassadors come from variousdepartments within thecompany, possessing rich workexperience and excellentcommunication skills.

Cultural Promotion Ambassador

Employees who demonstrateexcellence in practicingcorporate culture will be givencash rewards to encourage moreemployees to actively engage inthe corporate culture. Foremployees who are not doingwell in practicing the corporateculture, timely communicationand guidance will be provided tohelp them improve.

Cultural Practice Reward

The company pays attention tothe physical and mental healthof its employees, providingfacilities such as gyms andlounges to offer them a placeto relax. By creating a positiveand upward work environment,employees are encouraged topractice the corporate culturein a pleasant atmosphere.

Creation of cultural atmosphere

Value-based stories

In a certain year, the company onboarded a startup client. The client's business was in its initial stage withscattered production areas, low demand for silica, but a wide variety of product models, making deliverytimes and costs difficult to control. Faced with the dilemma of meeting customer needs and managingproduction costs, the company adhered to a customer-centric approach, investing additional resources todevelop a new logistics company, solving the delivery challenge for the client. The company fully supportedthe client's development, helping them overcome difficulties and achieve performance growth, which washighly recognized by the client. Currently, the company has become an important strategic partner of theclient, establishing a long-term cooperative relationship between the two parties.

Customer-centric

Over-investing in resources to address customer needs

Adhere toself-criticism

Optimization of management trainee training to assist in enterprise growthThe first talent cultivation program for management trainees at Jinsanjiang faced difficulties inimplementation. The company actively confronted its shortcomings and courageously engaged inself-criticism. The Human Resources Center took on the responsibility for the improvement and executiontracking of the management trainee program, ensuring that the first batch of trainees enhanced theirprofessional abilities through systematic training, fostering a positive interaction between personal growthand the company's development.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTSpecial Topic

To deepen the practice of the company's cultural values and implement them in the behavior of employees, thecompany launched a monthly "Outstanding Representatives Selection for the Practice of Cultural Values andBehavioral Performance" activity.CaseCeremony Honoring the Practice of Cultural Values

Cultural Values Practice

Conveying the essence of culture, stimulating new energy within organizations

Cultural heritageand development

Corporate culture serves as the "endogenous gravity" for a company's development and is the source that propelscontinuous progress within the enterprise. With the rapid development of the social economy and the constantchanges in the humanistic environment, the company's cultural philosophy is also keeping pace with the times,continuously enriching its connotations and extensions. In the process of cultural heritage and development. Thecompany adheres to the following principles.:

First, the company advocates green office practices internally, such as conserving energy,reducing paper waste, and promoting recyclable materials, to create an environmentallyfriendly atmosphere.Second, the company actively participates in public welfare activities, such as povertyalleviation, education, environmental protection, and other charitable initiatives. Thecompany plans to establish a volunteer team to organize employees to participate in publicwelfare activities, contributing to society.Third, the company focuses on sustainable development in its business operations, such asoptimizing supply chain management and promoting green production, to achieve a win-winsituation for both economic and environmental benefits.

As a part of society, it is the indispensable mission of a company to undertake socialresponsibilities and promote sustainable development.

"Customer-centricity" is the foundation of the company's development, and the companyhas embedded a customer-oriented culture into its corporate values.

The digital transformation of a company is not only a key to technological upgrade butalso an important means to enhance the vitality of corporate culture.

First, the company continuously improves its customer feedback mechanism by collectingcustomer opinions through various channels and dealing with them in a timely manner,applying customer needs to the improvement of products and services.Second, strengthen the training of sales center staff to enhance their service awareness andcapabilities. The training content includes communication skills, problem-solving abilities,and customer relationship management.Third, the company actively promotes excellent customer service experience and improvesthe overall service level.

First, The company has deepened its digital strategy by incorporating cultural upgrade intoits digital KPIs.Second, The company actively cultivates its employees' digital skills, encourages innovationand experimentation, and fosters a cultural atmosphere that supports digital exploration.Third, the company will strengthen the culture of data security and privacy protection,ensuring compliance with relevant laws and regulations during the digital transformationprocess, and protecting the data security of both the venture and its customers.

Enhance the conceptof sustainabledevelopment

First, the company will produce corporate culture promotional materials, such as posters,videos, brochures, etc., presenting the core values in a vivid manner. These culturalpromotional materials should be placed in conspicuous locations such as office areas,canteens, elevator lobbies, etc., allowing employees to encounter them in their daily work.Second, enhance corporate culture training: For new employees, incorporate corporateculture into the mandatory content of onboarding training; for current employees, regularlyorganize in-depth corporate culture training sessions to help employees understand thecorporate culture.Third, the company's senior management leads by example, becoming practitioners andpromoters of the corporate culture. At the same time, they encourage employees to sharestories of implementing the corporate culture in their work, creating a profound culturalatmosphere.Enhance thespread of corporatecultural concepts

Focusing on the growth and well-being of employees is a significant manifestation ofcorporate culture.First, the company will continue to provide a variety of benefits for employees, such ashealth checks, paid annual leave, holiday benefits, etc., focusing on the physical and mentalhealth and living needs of employees.Second, the company formulates reasonable career development plans for employees,providing abundant training and promotion opportunities. In addition, the companyestablishes an internal talent market, allowing employees to fully develop within thecompany.Third, the company has established a mentorship program, assigning mentors to guide newemployees in their work. Through the mentor's verbal instructions and personal example, thecompany's culture is passed down while also promoting communication and integrationbetween new and veteran employees.

Enhance the culture

of employee care

Deepen thecustomer-orientedculture

Promoting thedigital transformation

of culture

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTSpecial Topic

Refining Governance,Crafting a New Vision of Growth

?Improving Corporate Governance?Implementation of Sustainable Development?Strict Control of Compliance Risk?Upholding Business Ethics?Protection of Information Security

Our Actions

Our PerformanceTotalannouncements91 Times

Regularreports4 Times

Interimannouncements

87 Times

The proportion of female memberson the board of directors

16.7%

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTRefining Governance, Crafting a New Vision of Growth

Improving Corporate Governance

Governance Structure

JSJ strictly adheres to the Company Law of the People's Republic of China, the Securities Law of the People's Republicof China, the Regulations on the Governance of Listed Companies, the Rules Governing the Listing of Shares on theChiNext Market of Shenzhen Stock Exchange, and the Guidelines for the Standardized Operation of Listed Companieson the ChiNext Market of Shenzhen Stock Exchange and other laws, regulations, and normative documents. Itimproves the company's governance structure, maintains a diversified board of directors, and protects the rights andinterests of investors.

JSJ has a mature governance structure, where the shareholders' meeting, board of directors, and the supervisoryboard (hereinafter collectively referred to as the "three meetings") each perform their duties with a high degree ofcollaboration, achieving a governance structure that includes decision-making, execution, and supervision. To ensurethe operation of the "three meetings," the company has formulated the "Three Meetings Operation Manual," whichclearly stipulates the requirements, processes, and related meeting documents for the convening of the threemeetings, improving the efficiency and compliance of the company's three meetings.

JSJ strictly follows the Company Law of the People's Republic of China, the Articles of Association, the Shareholders'Meeting Rules, and other laws, regulations, and internal normative documents. It strictly standardizes the processesfor convening, holding, and voting at shareholders' meetings, ensuring that all shareholders have equal status andrights. During the reporting period, the company's shareholders' meetings were properly witnessed by externallawyers and conducted in accordance with relevant regulations, combining on-site and online voting to facilitate theparticipation of small and medium shareholders, fully safeguarding their rights and ensuring their equal position incompany decision-making.

Shareholders and Shareholders' Meetings

The company's board of directors includes an Audit Committee, a Strategy Committee, a Nomination Committee, anda Remuneration and Assessment Committee. Each committee works in concert, responsible for the company's financeand auditing, strategic decision-making, nominations, remuneration assessment, and ESG management according tothe "Articles of Association,", guiding the company's stable operations from different perspectives.

Directors and the Board of Directors

The company's supervisory board consists of 3 supervisors, including 1 employee supervisor, meeting therequirements of the "Company Law of the People's Republic of China" and the "Articles of Association" and othercorresponding laws and regulations. During the reporting period, the company's supervisors diligently performed theirduties to inspect and supervise the company's financial status, as well as the performance of directors and seniormanagement personnel, attended shareholders' meetings on time, participated in board meetings, and heldsupervisory meetings as required by regulations, actively safeguarding the legitimate rights and interests of thecompany and shareholders, ensuring the company's stable operation.

Supervisors and the Supervisory Board

Total of general meeting ofshareholders was heldduring the year

1 Time

Total of boardmeetings were heldduring the year5 Times

Total of Supervisors'meetings were held duringthe year6 Times

Board DiversityJSJ considers board diversity as a key element for the company's sustainable development. The board of directorsundergoes a re-election every three years, and the nomination of directors must go through a strict selection process,incorporating a variety of factors such as industry experience, professional skills, educational background, culturalbackground, age, and gender into the board election criteria.The board members of JSJ possess industry experience in areas such as silicon dioxide and toothpaste, as well asprofessional skills in corporate management, finance, investment management, etc., enabling them to exchange diverseviewpoints effectively and assist the company in broadening its horizons and making optimal strategic decisions.

Investor Rights ProtectionJSJ focuses on investor rights protection and strictly adheres to relevant laws and regulations such as the ManagementMeasures for Information Disclosure of Listed Companies, to fulfill its information disclosure obligations. The companyprimarily discloses information such as company announcements, financial indicators, company policies, periodicreports, and company profiles to investors through the Juchao Information Network (http://www.cninfo.com.cn/).Additionally, the disclosed information will also be published in Securities Times, China Securities Journal, SecuritiesDaily, and Shanghai Securities News. During the reporting period, the company has disclosed a total of 91announcements, including 4 regular reports and 87 temporary announcements.

China Securities Journal

Juchao Information Network

ShanghaiSecurities News

Securities DailySecurities Times

Official Information DisclosureChannel of Shenzhen Stock ExchangeMain Information

DisclosureChannels

Rich and Various Information Disclosure Channels

Information Disclosure

Independent directors2 Persons

Non-independent directors4 Persons

The proportion of female memberson the board of directors

16.7 %

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTImproving Corporate Governance

JSJ maintains good communication with investors. The Company fully understands the needs of investors throughchannels such as investor hotline, investor mailbox and on-site reception, and timely responds to investors' concernsabout the Company's operation status and development strategy. During the reporting period, the Company carriedout a few investor reception activities, including 2023 online annual results briefing, 2024 online precincts collectivereception day activities, and outbound roadshow activities.

JSJ led investors to visit the Intelligent Factory (Plant 2) and introduced to them the company's development history,operation, R&D innovation, ESG achievements, future layout, etc., to improve the transparency of corporateinformation, enhance investor confidence, and promote the integration of investor and corporate strategy.

Investor Relations

JSJ attaches great importance to the impact of its business on the environment and takes the United NationsSustainable Development Goals (UN SDGs) as its program of action, actively contributing to the sustainabledevelopment of society and the environment.The Company plans to establish a three-tier ESG governance structure covering the corporate governance,management, and executive levels: with the Board of Directors as the highest decision-making level for ESGgovernance, the ESG Committee to coordinate the Company's ESG work, and the ESG Specialized Group toimplement ESG implementation. By clarifying the division of responsibilities at each level, the Company will ensurethe effective implementation of ESG management and provide a strong guarantee for the Company's sustainabledevelopment.

JSJ believes that ESG is the cornerstone to support the high-quality development of enterprises. The Companycontinues to improve its ESG governance structure and management system and is committed to realizing theintegration of sustainable development and the Company's performance growth. The Company actively accepts thedemands of all stakeholders and works together with many stakeholders to realize the “Net Zero Goal”.Sustainability Governance

Implementation of Sustainable Development

CaseInvestor on-site reception

Visiting investor reception

GovernanceLayer

Board of Directors

ESG Task Force

Support,participation

Various Functional DepartmentsExecutionLayer

ESGCommittee

CompensationandAssessment Committee

StrategyCommittee

NominationCommittee

AuditCommittee

Responsible for reviewing andmaking final decisions on proposalssubmitted by the ESG Committee,including ESG-related objectivesand materiality issues.Responsible for reviewing andsigning off on the Company'sannual ESG report.

Develops ESG strategic plans,researchesand makes recommendations onsustainability policies and regulations.Identify ESG-related risks andopportunities, guide management toformulate countermeasures, and overseethe implementation of risk preventionand control mechanisms.Design ESG management system,management structure and workingmechanism, regularly evaluate ESGperformance and optimize strategicobjectives.Review ESG reports and submit them tothe Board of Directors, and promoteeffective communication amongstakeholders.The ESG Committee convenes meetingsto discuss and consider the proposalssubmitted by the ESG Task Force,submits the results of the discussion tothe Board of Directors, and providesfeedback to the ESG Task Force.Supervise the achievement of thecompany's ESG objectives and regularlycheck the implementation of thecompany's ESG policies and tasks.

The ESG Specialized Team isresponsible for the preliminarypreparation of the ESGCommittee's decision-making,providing relevant information ofthe Company, and submittingformal proposals to the ESGCommittee.The ESG Task Force is responsiblefor promoting the implementationof ESG objectives in relevantdepartments, organizing trainingand policy tracking.The ESG special team isresponsible for collecting andcompiling ESG data and preparingESG reports.Each functional department isresponsible for the implementationof specific ESG projects andsupports the work of the ESG team.

Board of DirectorsESG Committee

EESG Specialized Team andFunctional Departments

JSJ's proposed ESG governance structure and responsibilities

JSJ communicates deeply with stakeholders through multiple channels such as on-site research, interviews, andquestionnaires, listens to the specific issues and demands that stakeholders are practically concerned about in termsof ESG, and responds to them in a timely manner.Stakeholder Communication

ManagementLayer

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTImplementation of Sustainable Development

Information Submission

VisitsReception Government-Enterprise MeetingsRegulatory BodiesGovernment Departments

Shareholdersand Investors

Lawful Operation Tax PaymentEnergy Saving andEmission Reduction

Lawful and CompliantOperationOn-time and FullTax PaymentProduction ofGreen ProductsShareholders' MeetingPerformance ExplanationMeeting Investor Activities

Company Website

Hotline

Hotline

EmailCustomer Satisfaction SurveyCustomer Meetings

Investment ReturnsRights ProtectionInformation Transparency Risk Control

Business GrowthCorporate GovernanceInformation DisclosureInternal Control ProcessesProduct QualityProduct InnovationServiceRights ProtectionBusiness EthicsLabour RightsEnvironment Protection

Quality Control

R&D InvestmentCustomized SolutionsCustomer Feedback Integrity

and Anti-CorruptionEmployee Well-Being

Green OperationsEmployee ActivitiesGeneral Manager Communication Email

Internal MeetingsWeChat Groups

Employee RightsCareer DevelopmentSalary BenefitsHealth Safety

Compliance EmploymentEmployee Training andAdvancement OpportunitiesSalary and BenefitsSafetyOn-site InspectionSupplier AuditOffline/Online Meetings

Business EthicsProduct Quality and SafetyFair BiddingLong-term Cooperation

Supplier Management SystemOn-site Factory AuditProject ProcurementSupplier ESG EvaluationMedia InterviewsPublic InformationDisclosure

Environmental ProtectionCorporate Social ResponsibilityCompliant Operation

Green ProductsPublic Welfare ActivitiesCorporate GovernancePublic Information DisclosureCommunity Activities

Support for Social WelfareProtection of NaturalEnvironment

Public Welfare Activities

Green Products

During the reporting year, the Company collected, identified, and analyzed the issues of concern to variousstakeholders, prioritized the issues by considering the degree of attention paid by various stakeholders to the ESGmateriality issues and the actual situation of the Company's business development, and constructed a matrix of keyissues to guide the Company's ESG decision-making and actions.

Analysis of Material IssuesStakeholder

Group

Main Communication

Channels

Expectations and

Demands

Communication andResponse Methods

Customers

Employees

Suppliers and

Partners

Media

Community and Public

Process of identifying issues of importance on the JSJ Matrix

In 2024, the Company identified a total of 21 ESG material issues, including 7 highly material issues, 13moderately material issues and 1 generally material issues.

Through best practicesand industry research, aninitial set of key issues areidentified and used as thebasis for the stakeholderassessment.

Identify ESG IssuesStakeholder AssessmentRanking of ESG issuesConfirmation of results

An online survey wasconducted tounderstand the views ofstakeholders on the keyESG issues that shouldbe at the forefront ofJSSC's mindset.In-depth interviews withrepresentatives ofselected stakeholdergroups to further gathertheir views on ESGissues relevant to theCompany.

Analyze the results ofthe stakeholderassessment, conduct apreliminary materialityassessment, andformulate the materialissues that JSJ shouldgive top priority to.

Verify the prioritizationof issues with JSSCmanagement andconfirm and update themateriality matrix.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTImplementation of Sustainable Development

JSJ considers a comprehensive risk management system as the cornerstone of the company's sustainabledevelopment. The company is continuously strengthening the construction of internal risk control, enhancing theintensity of audit supervision, and reducing compliance risks. According to the Notice on Further Strengthening theManagement of Dormitories During the Normalization of Epidemic Prevention and Control, listed companies on theChiNext Market of Shenzhen Stock Exchange and Beijing Stock Exchange should disclose internal control evaluationreports approved by the board of directors and internal control audit reports on financial reports issued by accountingfirms starting from the annual report of 2024. To this end, the company has optimized its Internal Audit ManagementSystem and updated internal control rules.During the reporting period, the company carried out several special audits covering procurement, logistics, planning,etc., providing improvement suggestions for relevant departments and enhancing the company's internal control level.At the same time, the company actively carried out internal audit training, promoting the necessity and process ofinternal audits to employees, and improving the compliance awareness of all staff.

Internal Control ConstructionStrict Control of Compliance Risk

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

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

awareness, and help the company operate soundly.

Case Internal Audit Training

Internal Audit Training Site

金三江2024年重要性议题矩阵

Social welfare

Employee Care

Environment

Climate Change

Biodiversity

Supply Chain ManagementCorporate governanceESG Governance

EmployeeDevelopmentEmployee Rights

Water Management

Green Operations

TechnologyInnovation and R&D

Emissions and WasteManagementCustomer BenefitsEnergy Management

Business EthicsInformation Security

Product Qualityand SafetyEmployeeSafety

Chemical Safety

Level of ImportanceIssueHighlyImportant Issues

Importance to JSJ

Importance to JSS stakeholders

Product Quality and SafetyEmployee SafetyEmissions and Waste ManagementTechnology Innovation and R&DEmployee DevelopmentEmployee RightsClimate ChangeSupply Chain ManagementChemical SafetyBiodiversityESG Governance

Corporate GovernanceWater ManagementBusiness EthicsInformation SecurityDiversity, Inclusion and EqualityEmployee Care

Energy ManagementCustomer BenefitsGreen Operations

ModeratelyImportant Issues

GenerallyMaterial Issues

Social Welfare

SocialGovernance

Diversity, Inclusion and Equality

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTStrict Control of Compliance Risk

In 2024, the company continued to refine the construction of the "three lines of defense" in risk management, clarifyingthe responsibilities of each department to ensure the company's stable and compliant operations.

Three Lines of Defense

Finance and Legal DepartmentsAudit Department

Risk Management

Risk Supervision and ReportingRisk Response and Risk Contro!Risk ldentification and Assessment

Identify, assess,andmanage risksinbusiness processes

Provide professionalknowledge,support, monitor,

andreasonably question

risk-related matters

Provide independent andobjectivejudgment andrecommendationsfor allmatters related toachievingcorporate goals

“Three lines of defense” risk management mechanism

Upholding Business Ethics

JSJ strictly adheres to the Anti-Monopoly Law of the People's Republic of China, the Anti-Unfair Competition Law ofthe People's Republic of China, the Anti-Money Laundering Law of the People's Republic of China, the InterimProvisions on Prohibiting Business Bribery, and other laws and regulations. The company has established andimplemented systems such as the Management System for Cadres to clearly define prohibited acts of bribery,solicitation, acceptance, provision of benefits, conflict of interest, and the consequences of penalties. The companyresolutely opposes any form of business bribery, money laundering, and unfair competition, and is committed tocreating an honest, fair, and transparent business environment to maintain good market order and industry image.

Anti-commercial bribery is an important part of JSJ's compliance management. To strengthen employees' awarenessof business ethics, the company organized a special training on anti-commercial bribery in 2024. Through interpretinglegal provisions and analyzing real cases, this training enables employees to deeply understand the harms ofcommercial bribery and establish a positive sense of integrity among them.

The company has formulated and updated internal systems such as the Management System forCadres and the Logistics Management System, and the audit department regularly conductsinvestigations into violations according to the internal audit procedures. In 2024, the companyhad 0 case of illegal acts resulting from fraud or corruption.

CaseAnti-Commercial Bribery Training

Anti-commercial bribery training

Anti-Bribery

360-degree InvestigationThe company's humanresources centerconducts periodic360-degreeinvestigations on cadresupervision to monitorthe performance ofcadres over the longterm.

Audit InvestigationThe company's auditdepartment conductsregular checks andsupervision on the dailybehavior standards ofcadres in variouscenters to strictlyprohibit corruption andabuse of power forpersonal gain.

Employee Reporting

All employees cansupervise and reportany irregular behavior ofcompany cadres, timelyexposing and correctingimproper conduct.

Reporting ProtectionThe company hasimproved measures toprotect reporters,resolutely safeguardingthe legal rights andinterests of reporters,requiring relevantdepartments to keepreporter informationstrictly confidential andprohibiting anydiscrimination orretaliatory actions.

The company complies with the Anti-Money Laundering Law of the People's Republic of Chinaand enhances internal anti-money laundering compliance management to ensure businessoperates in compliance and safeguards financial security. The company actively cooperates withlaw enforcement agencies, regulatory authorities, and the financial industry, organizing financialcenter staff to participate in anti-money laundering training to improve their understanding andawareness of anti-money laundering work, ensuring that financial center staff can accuratelyimplement anti-money laundering policies.Anti-MoneyLaundering

JSJ adheres to laws and regulations such as the Anti-Unfair Competition Law of the People'sRepublic of China and resolutely prohibits any actions that confuse the market and misleadconsumers and does not use bribery or other unfair competitive means to seek tradingopportunities. At the same time, the company respects and protects trade secrets and does notengage in false propaganda, committed to fostering a fair competitive market environment. In2024, the company did not have any legal disputes related to unfair competition oranti-monopoly.Anti-UnfairCompetitionRegulatory Channels

First Line of DefenseSecond Line of DefenseThird Line of Defense

Business Department

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTUpholding Business Ethics

Protection of Information SecurityJSJ abides by the laws and regulations of the People's Republic of China on Network Security, the People's Republic ofChina on Data Security, and the People's Republic of China on Personal Information Protection and attaches greatimportance to the information security of its customers, suppliers, and employees. In 2024 the Company formulatedthe “Management System for the Outward Dissemination of Information” to categorize the Company's information andset up the procedure for approving the outward transmission of such information. This system, together with theencryption system, reduces the risk of leakage of company information.

JSJ strictly manages data backup. For OA system, SAP system and other key business systems, JSJ adopts cloudservice storage backup, and executes the daily difference backup strategy every night to accurately capture the datachanges of the day and save them to ensure real-time data update. In addition, before any system changes orupgrades, the company will start a complete backup process to fully preserve system data, in order to ensure a smoothtransition of business and data security.In terms of enhancing employees' awareness of information security, in 2024, the Company popularized informationsecurity knowledge for all employees by organizing training on data security and privacy protection, and trainedemployees to handle information security cautiously. In the event of information leakage by employees due to personalreasons, the Company will impose disciplinary actions according to the severity of the incident. To strengthen theinformation security management of suppliers, the Company protects the information security of both parties throughconfidentiality agreements, supplier evaluation and other measures.

Formulation of

processes

The processes of assessing the needs of outgoing materials, confirming the contents of outgoing materials, managing the process of outgoing materials, and regularly checking and cleaning the materials arestandardized and strictly enforced.

EncryptionManagement

Encrypt all information. The outgoing information must be decrypted for approval, and can be read afterapproval. The company sets up decryption approval authority according to the type of information andstrengthens password management.Approval

Traceability

The company has set up the “External Information Release Approval Form” in OA to ensure the informationsecurity of the outgoing information and the traceability of the information.

Risk Control of Outgoing Data

In 2024, the company carried out information security training for all employees, which included basic concepts ofnetwork security, the current network security situation, the enterprise network security management system, and thesecurity measures that employees should take in their work. Through example explanation and interactive discussion,the training enabled employees to deeply understand the importance of network security and master networksecurity knowledge and skills.

CaseNetwork Security Knowledge and Skills Training

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTProtection of Information Security

Empowerment through Digital Intelligence,Innovation Leading a New Future

?Customer-Centric Service?Deepening R&D Innovation?Leading Intelligent Manufacturing?Crafting Excellence in Quality?Ensuring Safe Production

Our Performance

R&D Investmentamount

17.8169 million Yuan

Total R&Dpersonnel

50 PersonsAccumulatedpatent authorizations

134 Items

Accumulated intellectualproperty rights

150 ItemsThe business scope covered by the company'sISO 9001 quality management system certification100%

Our Actions

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTEmpowerment through Digital Intelligence, Innovation Leading a New Future

Customer-Centric Service

JSJ adheres to a customer-centric approach, upholding the service philosophy of “customer first and pursuit ofexcellence” to provide high?quality service. The Company values customer needs and feedback, offers customizedproducts, practices responsible marketing, safeguards customer rights, and enhances the overall customer experienceand satisfaction.

Putting Customers First

The Company places great emphasis on customer health and safety, enhancing customer satisfaction by providingtailored solutions, implementing a professional Customer Relationship Management (CRM), establishing a scientificservice framework, and creating an efficient response mechanism—all in line with its customer?first ethos.

JSJ steadfastly upholds the baseline of customer health and safety by ensuring that all its products are safe andreliable. The silica produced by the Company meets food?grade standards and has received a series of certifications,including ISO 22000 Food Safety Management System, Halal, and Kosher certifications. Moreover, the Company hasestablished a three?tier control mechanism—Raw Material Control, Production Control, and Quality InspectionControl—to guarantee customer health and safety.

The Company has established a rigorous supplier management system that prohibits theuse of hazardous substances by raw material and auxiliary material suppliers, therebyreducing risks at the source.

Customer Health and Safety

RawMaterialControl

The entire production process is monitored and controlled by a Distributed ControlSystem (DCS), ensuring that the processes remain reliable and stable.ProductionControl

JSJ has obtained ISO 9001:2015 Quality Management System certification andestablished a CNAS?accredited laboratory. In addition, it has formulated standards suchas the Silica Semi?Finished Product Inspection Standard, Silica Finished ProductInspection Standard, and Microbial Control Points for Production Workshops to enforcerigorous quality testing of both semi?finished and finished products.

JSJ consistently maintains a customer?centric approach by providing customized productsand solutions. The Company has established a comprehensive service system—from needsidentification to product development and after?sales support—that creates long?termvalue for its customers.

Customer SatisfactionCustomizedSolutions

JSJ has established an efficient cross-departmental collaboration mechanism among itsmarketing,R&D,production,and sales teams.Through regular visits and marketresearch,theCompany thoroughly uncovers customer needs to ensure that its products andservices closely match real-world requirements and to respond to customer demands promptly.Positioning itself as the "exclusive designer"for its clients,Jinsanjiang leverages its deepunderstanding of client needs and industry trends to facilitate seamless collaboration acrossmultiple departments. This enables the Company to significantly shortens the developmentcycle,identifies industry pain points,and taps into market potential to accelerate the R&Dprocess.Ultimately,JSG develops high value-added products that meet market and customerdemands,offering tailor-made products and service solutions.

System-wideDemand Discovery

Customized Product

Development

JSJ promptly addresses customer feedback by accurately conveying issues to the factory.Thisensures that customer concerns are thoroughly understood, analyzed, and resolvedwithdedicated solutions.JSJ offers a variety of training initiatives-including online courses,on-site operationalguidance,and technical exchange sessions-to help customers master product applications andenhance their overall experience.

High-QualityAfter-Sales Support

Multi-formatCustomer Training

In July 2024, overseas customer representatives visited the JSJ factory for an in-depth research tour, accompanied byheads of the R&D, marketing, and sales centers. The delegation engaged in extensive discussions on JSJ’s corporateprofile and product manufacturing processes. This visit holds significant strategic importance for fostering deepercollaboration between both parties.

CaseJSJ Factory Hosts an In-Depth Research Visit by Overseas Customer Representatives

Overseas Customer Representatives Visited the JSJ factory

QualityInspectionControl

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTCustomer-Centric Service

To continuously enhance customer experience, the Company hascomprehensively upgraded its Customer Relationship Management(CRM) system.SpecializedManagement System

JSJ has implemented a Sales Center Management System and built an efficient customerservice framework that unites all departments in delivering exceptional service to itscustomers.

ScientificService System

Accurate Demand InsightsUtilizing intelligent data analysis, JS] identifies customer needsandpreferences, enabling the Company to deliver personalizedservicesthat enhance the overall customer experience.

Efficient Collaborative ManagementFrom production planning to product delivery, the entire processisseamlessly integrated, optimizing resource allocation. This notonlyreduces operational costs but also ensures the efficientfunctioningof the supply chain.Real-Time MonitoringSales personnel can access the latest sales data and orderstatusesanytime, anywhere. This immediate access allows themto swiftlyrespond to market demands, thereby enhancing serviceefficiencyand customer satisfaction.Overview of CRM System Functions

Customer Service System

Customer Service

System

BusinessDirector

Order/LogisticsDirector

TechnologyR&D Director

QualityDirector

AccountReconciliation/Invoice

Director

In addition, JSJ regularly conducts customer satisfaction surveys to understand customer needs regarding productquality, on?time delivery, and after?sales service. Valuing every customer’s feedback, the Company has developedan integrated Sales?R&D service solution that effectively addresses both technical product requirements and deliveryservice expectations.

JSJ places a high priority on customer experience. During the reporting period, the Company updated andimplemented its Customer Complaint Handling Regulations and Complaint Event Management System to furtherstandardize the complaint process, streamline its complaint channels, and improve resolution efficiency.

Accompanying Customers on a Factory Tour

JSJ is committed to operating with integrity and placing responsibility first. It strictly complies with the Advertising Lawof the People’s Republic of China, the Consumer Rights Protection Law of the People’s Republic of China, and otherrelevant regulations to ensure that its marketing practices are proper. To further strengthen internal controls, theCompany has established an External Communication Materials Management System and implemented an approvalmechanism for marketing materials.JSJ rigorously oversees its promotional content, distribution channels, marketing activities, and bidding processes toensure that all marketing communications faithfully reflect the features of its products and services. Thesecommunications are crafted to be accurate, clear, and easily understood, while also ensuring fairness and equity in alltransactions. Moreover, the Company has enhanced its internal control and audit processes to strictly penalize anyfraudulent behavior in its marketing practices. Looking ahead, JSJ will continue to implement its responsible marketingpolicy, holding itself accountable to both its customers and society.

Responsible Marketing

To ensure the thorough implementation of its responsible marketing policy, the Company’s Sales Center organizedcomprehensive training sessions for all sales personnel, ensuring that every team member fully understands andadheres to the responsible marketing requirements.Responsible Marketing Training

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTCustomer-Centric Service

R&D innovation is the driving force behind sustainable corporate growth. Since its inception, JSJ has consistentlypursued independent research and development in the fields of silica products for toothpaste, food & cosmetics,batteries, silicone rubber, and defoamers. Through an integrated four-dimensional strategy—encompassing R&DManagement, Innovative Products, R&D Layout, and IP Protection—the Company has cemented its technologicalleadership in the silica industry.

Deepening R&D Innovation

R&D Management

The Company has built a comprehensive R&D management system and developed key documents such as the NewR&D Center Management System, the New Product Development Management Regulations (Trial), and the R&DDemand Management Process Manual. These frameworks address critical issues including the allocation of R&Dresources, management of R&D needs, and new product development.

Collaborate with the Marketing Centerto formulate product strategies andforecast future trends;

Oversee the R&D of company productsand drive new product development;Manage and improve technicalprocesses to reduce the cost of matureproducts and stabilize product quality;

Interface with customers in the earlystages to align on product standards,validate testing methods, and integratethese standards internally;Provide technical support to customersand resolve technical issuesencountered during product usage;Collaborate with universities and testinginstitutions in product development.

Handle project submissions by applyingfor government?subsidized technologydevelopment projects and technologyinvention awards at various levels;Responsibilities of

the R&D Center

Guangdong Engineering Technology Research Center forFunctional SilicaGuangdong Provincial Enterprise Technology CenterGuangdong Province Innovation Method Promotion andApplication Demonstration Cultivation EnterpriseGuangdong Model Worker and Talented Craftsperson InnovationStudioZhaoqing Engineering Technology Research and DevelopmentCenter for Functional SilicaZhaoqing Model Worker and Talented Craftsperson InnovationStudio

JSJ has formulated and implemented the R&D Team Special Incentive ManagementMeasures, which clearly define the incentive details. Eight awards have been established—Project Progress Award, New Product Market Benefit Award, Customer Service Award,Patent Application Award, Project Submission Award, High?Quality Product Award,Technology Progress Award, and Process Improvement Award—to provide generous cashrewards to those who achieve significant R&D breakthroughs.

The Company has equipped its R&D laboratories with ample advanced analyticalinstruments. The R&D laboratory at the Intelligent Factory (Factory II) can accommodateup to 100 personnel simultaneously;

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

13.37% of the total workforce;

In 2024, JSJ’s R&D investment reached 17,816,925.16 RMBR&DinvestmentR&DTalentR&DEquipment

R&DIncentives

Key R&DAchievements

Provincial Level

Municipal Level

In 2024, JSJ organized a dedicatedresponsible marketing training session forits Sales Center staff. The trainingaddressed key topics such as buildingand maintaining customer trust, theimportance of responsible marketing, andthe specific requirements involved. Thisinitiative helped standardize marketinglanguage and practices across the team,collectively fostering greater transparencyand integrity in market activities.

Responsible Marketing Training Session

CaseResponsible Marketing Training

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTDeepening R&D Innovation

ORASIL 117T

Feature

High whiteness, uniform particle size distribution;High fluorine compatibility (≥90%);Good compatibility with other toothpaste components such as flavor;Provide medium abrasive cleaning ability;Good transparency under the low refractive index.

Whiteness (Wg) %Oil Absorption (g/100g)Water Absorption (ml/20g)1000'C Loss on lgnition %105°C Loss on Drying %Purity as Si02 %Total Salts (as Na2SO4+NaCl) %pH (5%Slurry)light transmittance %Apparent Density g/mlMedian Particle Size-D50 μm

QB/T2346-2015ASTM D281QB/T2346-2015QB/T2346-2015QB/T2346-2015QB/T2346-2015QB/T2346-2015QB/T2346-2015QB/T2346-2007QB/T2346-2007GB/T19077-2016

≥9695-12517-25≤8.5≤8≥96≤2

7.2-8.2

≥90

0.30-0.45

6-14

98.91

18.9

5.38

8.43

98.50

0.67

7.67

97.9

0.41

12.0

IndexTest MethodTechnical DataTest Result

Laboratory

CNAS Certification Certificate

Innovative ProductsJSJ continuously drives the commercialization of its R&D achievements. Several key innovations have filled industrygaps and injected fresh dynamism into the market. The Company successfully launched a low?oil?absorption silica forsilicone rubber applications whose exceptional performance offers a breakthrough opportunity for industrytransformation. In addition, JSJ has developed a silicone rubber–specific silica product that is set to revolutionize theprecipitated adhesive sector. Significant progress has also been made in developing new colored particles, furtherexpanding the Company’s product matrix.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTDeepening R&D Innovation

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

R&D Layout

During the reporting period, JSJ introduced several technological innovations for its existing product lines. Some ofthese innovations have matured and will be integrated into a new series of toothpaste products, delivering premiumquality to customers. Meanwhile, the company continues to deepen its efforts in the high-performance industrial andopening agent sectors, accelerating the rollout of new technologies.

Low Oil Absorption and Low Wear Silica for Toothpaste and Its PreparationProcess: The low oil absorption and low wear silica for toothpaste exhibits lowfriction performance, excellent cleaning efficiency, and a low oil absorptionvalue. Toothpaste formulated with this product effectively minimizes toothdamage during cleaning while also offering a whitening effect.Low Specific Surface Area Silica: This product complies with EU regulationsregarding non-nano silica, making it suitable for toothpaste manufacturers withsuch requirements.

Research on high-performance industrial silica materials: Replacing part of thefumed silica by developing a silica used in the silicone rubber field that functionsas a highly transparent and low water absorption, and meet the diverse needs ofour customers.

Silica for Anti-Blocking Agent: Has stable physical and chemical properties,provides an excellent anti-blocking effect, and widely used in PE, PP, PET andother polyolefin, polyester films.

Deeply mine and unleash new potentialin existing productsExisting Products

Enrich product portfolio, explore newbusiness models, and deliver value to

downstream customers andconsumers

Emerging Products

Dual-track R&D Strategy

In January 2024, the R&D Center organized a training session on “Patent Search, Technical Disclosure Writing, andMining – Materials Chemistry Focus” for all employees. External experts were invited to share insights on patentsearch techniques, drafting technical disclosure documents, and patent mining methods. This session equipped R&Dstaff with practical skills in intellectual property protection to support the Company’s technological innovations.

Case“Patent Search, Technical Disclosure Writing, and Mining – Materials Chemistry Focus” TrainingProduct Portfolio

Technical Advantages (Selected)

Toothpaste

High-PerformanceIndustrial Applications

Anti-Blocking Agent

JSJ strictly adheres to the Patent Law of the People's Republic of China, the Trademark Law of the People's Republicof China, and other relevant legislation. The Company has formulated and implemented a series of specializedintellectual property protection policies—including the Intellectual Property Management Manual, the PatentManagement System, the Intellectual Property Rewards and Penalties Management Measures, and the ConfidentialityManagement System—to further clarify procedures for trademark and patent applications. During the reportingperiod, the Company recorded zero intellectual property infringement lawsuits. In addition, JSJ providescomprehensive intellectual property training for its employees to continuously enhance their awareness of protectingintellectual property and to safeguard the Company’s legal rights in accordance with the law.As of December 31, 2024, Jinsanjiang has obtained a total of 134 patent authorizations , including 105 patents grantedand 29 utility model patents.

Intellectual Property Protection

Patents

134 Items

Patents forInventions

105 Items

Patents forUtility Models29 Items

JSJ continues to advance its intellectual property managementefforts and consistently improves its IP management system,having successfully passed the GB/T29490-2013 EnterpriseIntellectual Property Management Standard audit.

Intellectual Property ManagementSystem Certification Certificate

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTDeepening R&D Innovation

The Company actively embraces the national digital transformation strategy by establishing an end-to-end automatedproduction system and integrating systems such as SAP, DCS, Energy Management, R&D, CRM, and OA. This integrationhas produced a unified “five?in?one” digital management platform that encompasses business management, intelligentmanufacturing, energy management, R&D management, and collaborative office functions. At present, JSJ has largelyachieved seamless interconnectivity among production equipment, production processes, production orders, productionplanning, and material distribution, which has enhanced product quality, green manufacturing, and safe production—thereby elevating its overall intelligent manufacturing capabilities.

Leading Intelligent Manufacturing

Intelligent Manufacturing Upgrade

JSJ has established an end-to-end automated manufacturing system thatcovers the entire production cycle from raw material feeding to finished productpackaging. The Company continuously introduces advanced automatedequipment to reduce the risk of safety incidents and to improve product quality.AutomatedProduction

Sulfuric acid/sodium silicate preparation processes are equipped with on-linedensimeter to achieve continuous on-line preparation;Compared with traditional mode, this may significantly improve the accuracy andqualification rate of reagents, as well as the efficiency of reagent modulation.The pressure filtration process is equipped with equipment, including on-lineelectrical conductivity detection instrument, to accurately control salt content ofproductthrough variable-frequency washing and hot water washing;Compared with traditional process, this may significantly improve materialwashing efficiency and material qualification rate.The pressure filtration process is equipped with equipment, including on-lineelectrical conductivity detection instrument, to accurately control salt content ofproduct through variable-frequency washing and hot water washing;Compared with traditional process, this may significantly improve materialwashing efficiency and material qualification rate.Metal detector, reweighing machine, on-line ink-jet printing machine, coatingmachine and other equipment are configured to achieve efficient weighing,packaging, re-inspection and film packaging for warehousing;Compared with the traditional mode, this may significantly strengthen packagingefficiency, reduce the risk of broken packets, and make a better appearance ofproduct.Full intelligent control soft water treatment system that is equipped with ionexchanger, sand filter tower, on-line pH meter, UV disinfection instrument andother equipmentis used to achieve efficientremoval of impurities in product;Compared with traditional mode, this may better ensure microbial andbiologicalproperties.

Continuous on-line

preparation ofraw materials

On-line detection

equipmentfor reaction process

Automated

packaging

system

Water treatment

system

Guided by an innovation-driven corporate culture, JSJ has been shortlisted as a national “Specialized, Refined,Special, and New – Little Giant” enterprise for 2024. Moving forward, JSJ will continue to adhere to the “Specialized,Refined, Special, and New” development philosophy. Building on this recognition, the Company will further increaseR&D investment, strengthen its technical R&D team, and accelerate the production and transformation of innovativeachievements, thereby contributing even more to the continuous advancement of the silica materials industry and tonational economic development.

CaseJSJ has been shortlisted as a national “Specialized, Refined, Special, and New – Little Giant” enterprise for 2024

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

CaseJSJ & Jinan University Research Group Symposium on the Effective Integration of the Digital and Real EconomiesOn September 18, 2024, JSJ hosted aresearch team composed of professors andstudents from Jinan University, GuangzhouUniversity, and Guangdong University ofForeign Studies. The purpose of thissymposium was to gain in-depth insights intothe Company’s practical experiences inintegrating the digital economy with the realeconomy. During the session, the head ofJSJ’s Information Department introduced theCompany’s digitalization, informatization,and automation progress as well as its futuredevelopment direction. The research teamalso provided valuable suggestions foradvancing JSJ’s digital transformation.

Group Photo of JSJ with the Research Team

Automated Production Equipment and Systems

On-line detection

equipment forpressure filtration

process

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTLeading Intelligent Manufacturing

The Company actively embraces digital transformation, striving to achieve"digitization of all business processes anddata-driven business operations". During the reporting period, the Company deployed three core initiatives: theTraditional Systems Optimization Project, the Intelligent Platform Construction Project, and the Digital TalentCultivation Project.

Digital Transformation

Automates file management,scheduling, and emailmanagement, therebycomprehensively enhancingwork efficiency. It enablesrapid internal informationsharing and communication,promotes efficientcross-departmental andcross-regional collaboration,and strengthens teamcooperation. By standardizingworkflows and managementprocesses, it helps build asystematic and orderlymanagement framework.

Deeply integrates withthe SAP and DCSsystems to achievereal-time monitoring andanalysis of energyconsumption. Based onthese insights,production processes arepromptly adjusted andoptimized to reduceenergy consumption andimprove overall energyefficiency.

Through deep integration,it enables a seamlessconnection from productdesign to manufacturing,reduces R&Dtrial-and-error costs,minimizes raw materialwaste, and enhancesprocess reliability, allwhile boosting efficiencyand accelerating R&Dprogress.

Enhances functionalities infinancial management,supply chain management,production scheduling, andother modules. Throughsystem integration, itfacilitates efficientcross-departmentalcollaboration, improvingthe transparency ofinformation flow, logistics,and cash flow while furtherensuring compliancemanagement.

This system integrates multiplefunctional modules for factoryoperations, includingproductionplanning, scheduling, materialmanagement, process management,qualitymanagement, equipmentmanagement, energy management,and digital performancemonitoring.Data-driven operations ensurefull-process digital production,transparent progressand inventory,controllable quality, accurateequipment capacity, optimizedproductioncycles, and leanmanufacturing.

Covers product-related functionssuch as demand management,project management formulationmanagement, master datamanagement, reporting/analytics,knowledgebase management, andhigh-tech project applicationmanagement.End-to-end product integrationsupported by data-drivenapproaches enables efficientandscientific comprehensive productmanagement.

This system supports multipleclient-facing functional modulesincluding customer informationmanagement, sales opportunitytracking, sales forecasting,orderexecution, and after-sales service.it implements full lifecyclemanagement of customer relationshipsthrough digital integration.Customer-Centric Approach: Enablinggranular customer segmentation andprofilingto inspire targeted marketinginitiatives; achieving digitaltransformation of sales workflows withaccelerated processes, ensuringpremium service experiences.Thesystem's advanced analyticsempower data-driven market trendinsights, facilitatingrational businessstrategy formulation.

SAP SystemTraditional Systems Optimization ProjectDCS SystemEnergy SystemOA System

Manufacturing Execution

system(MEs)

Product LifecycleManagement(PLM)

Customer RelationshipManagement(CRM)

The company continues to strengthen the recruitment of digital talents through open hiring anduniversity-industry collaborations,attracting IT professionals with expertise and practical experience.Thisenhances the company's technical capabilities and innovation capacity,laying a solid talent foundation fordigital transformation.Regularly conduct training for internal employees on digital tools and platforms,helping them master skillssuch as data analysis and intelligent system operations. This fosters a company-wide digitalmindset,promotes practical application,and drives deep integration of digital technologies into dailyoperations.

TalentDevelopment

IT TeamExpansion andDigitalApplication

Training

Three Core Initiatives

Intelligent Platform Construction Project

Digital TalentCultivation Project

Three Core Initiatives

Currently, the Company has completed the initial cloud migration of its core business data, achievinginter-departmental data integration. Under an ESG-oriented approach, JSJ is exploring the integration ofenvironmental, social, and governance performance indicators into its project evaluation system, ensuring that digitalinvestments are aligned with sustainable development goals.

Leveraging its outstanding performancein digital transformation, JSJ wassuccessfully included in the “2024 ChinaLight Industry Digital TransformationDual Ranking Lists.” The Company’scapabilities in intelligent manufacturing,digital operations, and supply chainmanagement have been widelyacknowledged by the industry. As a resultof its digital transformation initiatives, JSJhas significantly enhanced its productionefficiency and product quality.

CaseSelected for the “2024 China Light Industry Digital Transformation Dual Ranking Lists”

Selected for the “2024 China Light Industry Digital

Transformation Dual Ranking Lists”

OperationalEfficiency

GreenManufacturing

ProductExcellence

Regulatory

ComplianceSustainableInnovationIndustrialsafety

StakeholderValue Creation

Resource

Stewardship

ESG benefit

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTLeading Intelligent Manufacturing

Ensuring Safe ProductionThe Company regards safety as the cornerstone of its development and upholds the safety policy of “Safety First,Prevention-Based, Safe Development, People-Oriented”. In compliance with the Safety Production Law, the Law onthe Prevention and Control of Occupational Diseases, the Fire Protection Law, the Special Equipment Safety Law, theEnvironmental Protection Law, the Rules for Safety Risk Zoning and Grading in Chemical Enterprises, and otherrelevant regulations, the Company has established a sound safety management mechanism. It has formulated a seriesof policies and procedures—including the Fire Safety Management Regulations, the High?Altitude Operations SafetyManagement Regulations, the Temporary Electrical Work Safety Management Regulations, the Labor ProtectionSystem for Female Workers, and the Hazardous Chemicals Management Regulations—to continuously optimize on?sitesafety management and ensure both employee safety and uninterrupted operation of production.Safety Culture Cultivation

The Company places the safety and health of its employees as its top priority and has built a robust safety culture. Byorganizing safety production meetings, safety training sessions, team?level safety initiatives, safety inspections, SafetyCulture Month activities, and safety model selections, all employees have developed a strong awareness of andcommitment to safety goals, thereby creating a pervasive safety culture. To further reinforce this culture, a SafetyCulture Implementation Team has been established. This team has set milestone targets for safety culturedevelopment across six dimensions—safety leadership, safety learning, safety incentives, safety assurance, safetybehavior, and safety communication—and is implementing phased action plans accordingly.

In November 2024, the Company invitedSihui Cihang Hospital to conduct a medicalemergency training session in the Companycafeteria. The training aimed to impart basicfirst?aid knowledge and equip employeeswith essential emergency response skills.

Case Medical Emergency Training

Medical Emergency Training Session

In November 2024, the Company conducted botha fire extinguishing drill and an emergencyevacuation drill. During the fire drill, members ofthe fire emergency team used fire extinguishersand hydrants in practical exercises to demonstrateproper operating procedures to employees from alldepartments. At the same time, all employeesparticipated in the emergency evacuation drill.Upon hearing the alarm, they followed apredetermined evacuation route—covering theirmouths and noses—and proceeded in an orderlymanner to the designated assembly point, wherethey awaited instructions from the overallemergency commander. A meticulous headcountconfirmed that every individual had successfullyevacuated. This exercise reinforced theemployees’ emergency evacuation skills andvalidated the effectiveness of the evacuation plan.

CaseSafety and Environment Drill

Safety and Environment Drill Training Session

Safety Production Management

JSJ consistently adheres to the production principle of “Taking Action Together for Safety”. In terms of safetyproduction governance, the Company has established a Safety Production Committee. The committee’s presidium—comprising the President, the Deputy General Manager, and the Plant Director—is responsible for coordinating overallsafety management, formulating safety production policies and objectives, and supervising their implementation. ACommittee Office under the presidium oversees and enforces these safety management measures. In 2024, the SafetyManagement Committee expanded its membership by inviting representatives from Procurement, Finance, and R&D toattend quarterly meetings as special invitees, where they actively offered suggestions and supported theimplementation of related actions.

Safety FirstPrevention as the Priority

Safety-driven GrowthPeople-orientedSafety Policy

Safety Vision

Based on this foundation, the Company hasfurther clarified its safety policy and vision byformulating the "Top Ten Safety ProductionNorms" and the "Four No-Harm Principles".These guidelines provide clear standards andgoal orientations for all employees, ensuringthat the safety culture is deeply ingrained andeffectively implemented.

Safety Production Signage

"Top Ten Safety Production Norms" andthe"Four No-Harm Principles"

Act TogetherBuild a self-motivated and mutually supportive safety culture

Share Safety

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTEnsuring Safe Production

SafetyPrinciples

SafeOperations

Safety Goalsand Principles

Zero AccidentsSafety as a CoreEveryone is responsible for his or her own safety: line management isaccountable for providing a safe and healthy workplace.Training for all employees,contractors and visitors is essential to safety inthe workplace.Working safely and in accordance with our rules and procedures is animportant part of work at JSJ.Recognizing hazards, evaluating and controlling risk is a key part of oursafety culture.Employees and Contractors will never walk past an unsafe act orcondition-we will always make it safe before we leave.As a learning organization, we will take every opportunity to ensure wecontinuously improve our safety performance and behaviors.Enhanced Organizational Structure: The Safety and EnvironmentManagement Department was upgraded from a secondary to a primarydepartment, placed under the direct management of the GeneralManager’s Office, and now oversees company?wide safety management.Increased Manpower: The number of safety management personnel wasincreased from 2 to 5, thereby improving both efficiency and impact.Establishment of a Safety Coordinator Team: Each center/departmenthas appointed one part?time safety coordinator to act as a liaison,ensuring that safety policies are communicated to every employee.Upgraded Equipment Safety: To ensure the safe use of tools andequipment, the Company has provided additional European?standardscaffolding for the Maintenance Department, extra mobile platforms forthe Production Department, installed safety canopies on forklifts in theSupply Chain Center, upgraded to new gas detectors, and added fallprotection devices.Improved PPE Management: The Company has reinforced themanagement of personal protective equipment (PPE) by establishing aminimum PPE usage matrix for different positions, thereby enhancingthe comfort of PPE while maintaining its safety standards.

The Company strictly adheres to the Regulations on the Safety Management ofHazardous Chemicals and other relevant laws, and has formulated andimplemented Regulations on Hazardous Chemicals Management, Procurementand Management Regulations for Chemical Laboratory Materials, and WorkInstruction for Chemical Reagent Management. These measures standardize theentire process of chemical procurement, storage, issuance, and use, therebyreducing the risk of accidents. Furthermore, the Company has established amanagement mechanism in accordance with EU REACH regulations to identifyand assess the safety and environmental risks of chemicals and gradually phaseout high?risk chemicals, ensuring product safety.。

Hazardous Chemicals Management

In 2024, the Company formulated or updated documents including Engineering Safety Construction ManagementAgreement, Safety Production Management Agreement, Contractor Employee Safety Responsibility Commitment (forhazardous chemicals such as concentrated sulfuric acid), and the External Personnel Work Safety Commitment (to besigned by personnel entering the production area). All engineering and sulfuric acid suppliers are required to signrelevant documents prior to entering the JSJ premises, thereby strengthening the requirements for supplieroccupational safety. Throughout 2024, no occupational safety incidents involving suppliers or their employees werereported within the JSJ operational area.

Supplier Safety Management

EU REACH Certification

ChemicalProcurement

Before purchasing hazardous chemicals, the Company is required to submit a declaration tothe regulatory authorities and obtain approval. Chemicals included in the “Catalogue of UsedCosmetic Raw Materials” are procured following internal approval; otherwise, the R&D Centermust review and confirm the feasibility of procurement. The R&D Center, following theProcurement and Management Regulations for Chemical Laboratory Materials, implementsspecialized management by rigorously verifying supplier qualifications to ensure thatprocurement is both legal and safe.

Chemical

Issuance

and Use

The Company strictly adheres to the “5 Doubles” system for the issuance of hazardouschemicals—double custody, double locking, double ledgers, double delivery, and doublereceipt—to ensure compliance. The Quality Center monitors the usage of chemical reagentsthroughout the process in accordance with the Work Instruction for Chemical ReagentManagement, thereby reducing usage risks.

Crafting Excellence in QualityFor more than twenty years, JSJ has adhered to the quality policy of “insisting on quality first, promoting technologicalinnovation, implementing scientific management, and exceeding customers’ expectations”, earning an excellentreputation. The Company has established a robust quality management system and has obtained certifications for ISO9001:2015 Quality Management System, ISO 14001:2015 Environmental Management System, and ISO 22000:2018Food Safety Management System, among others.

Quality Management System

JSJ strictly complies with the Product Quality Law of the People’s Republic of China, the Food Safety Law of thePeople’s Republic of China, and other relevant regulations, placing a high priority on product safety and quality, toensure the provision of safe and healthy products to customers. To further enhance its quality management system,JSJ has developed 38 quality management procedure documents and 308 tier three operational documents, ensuringthat all work processes have clearly defined standards. In 2024, the Company updated a total of 44 quality procedureand operational documents.

Total quality procedure andoperational documents

44 Pieces

Total tier threeoperational documents

308 Pieces

Total quality managementprocedure documents

38 Pieces

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTCrafting Excellence in Quality

In 2024, JSJ further strengthened its controls over foreign matter during production toensure that products remain uncontaminated throughout the manufacturing process:

The Company introduced devices such as magnetic separators and metal detectors tomonitor and eliminate foreign objects in real time;The use of auxiliary materials is strictly controlled to ensure compliance with qualityrequirements;Startup, shutdown, and product changeover cleaning standards have been optimized toprevent cross-contamination;Regular monthly inspections for foreign matter risks are conducted to refine preventativemeasures, thereby ensuring safe and efficient production.

Quality Representative Management System: Clearly defines quality managementresponsibilities and establishes dedicated quality management roles across production, R&D,warehousing, and sales to ensure product safety and consistency.

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

Design and Development Control Procedure: Outlines the process for new product designand development, embedding quality controls throughout product planning, review,validation, confirmation, output, and conversion to mass production, thereby ensuring thatnew products meet customer requirements and maintain stable quality.Hazard Control (CCP and OPRP) Plan: Develops a hazard control plan for the production ofsilica/food additive products, identifying and controlling potential hazards during productionto ensure product safety and hygiene.Change Control Procedure: Establishes a change control system to evaluate, review,approve, and implement changes affecting product quality, ensuring that product qualityremains consistently stable post-change and facilitating traceability.Sample Management Regulations: Standardizes procedures for handling internal samplessent to customers, samples sent to third?party authorities for testing, R&D samples, andexternal sample inspections to ensure effective sample management.Pilot Production to Mass Production Management System: Regulates the entire process ofpilot production for new product R&D, including both the pilot and mass production stages,ensuring effective control and a smooth transition from pilot to full-scale production.

QualityPolicy

SelectedQualitySystems(2024)

Quality Management Process

JSJ rigorously controls product quality by implementing full?lifecycle management—from raw material intake tofinished product shipment—to ensure that every product meets quality standards. In 2024, the ISO 9001 QualityManagement System certification of the Company covered 100% of its business scope.

Lifecycle Management

Foreign Matter

Controlin Production

Full-lifecycle Product Quality Management

CaseEstablishment of the “Zero Complaint Team”To achieve the “zero complaints” target,the Company established a “ZeroComplaint Team”, comprising membersfrom the Sales Center, ProductionDepartment, R&D Center, and QualityCenter, dedicated to resolving customercomplaints.Once the Team was formed, designatedpersonnel were tasked with tracing andanalyzing the root causes of complaints,identifying and addressing quality risks,and eliminating potential hazards.

“Zero Complaint Team”

During the R&D phase, based on product designs confirmed with customers, theCompany initiates new product projects, produces samples, conducts pilotproduction, verifies pilot production stability, and standardizes productionprocesses. Stringent quality approvals are implemented throughout these stages toensure the stability of product quality during mass production.

In 2024, the Company comprehensively updated its raw materialacceptance standards to enhance raw material quality. Every batch ofraw materials must undergo physico?chemical and microbiologicaltesting, and only those that meet production requirements are accepted.

JSJ has established inspection standards for semi?finished products,testing them for physico?chemical parameters (such as appearance,pH, moisture, salt content, etc.) and microbiological indicators. Anonline inspection system has been implemented to monitor the qualityof semi finished products in real time, allowing for promptidentification and rectification of any quality issues during production.The Company has developed finished product inspection standardsand conducts comprehensive quality tests—including sensoryevaluation, physico?chemical analysis, microbiological testing, weight,dimensions, packaging, and functionality assessments—on each batchbefore shipment, ensuring that the final products meet market andcustomer requirements.In 2024, to ensure the quality of transported products, JSJ updated its Logistics ManagementSystem and revised both domestic and international logistics contract templates in line with itsactual logistics operations. These measures comprehensively ensure that carriers possess thenecessary transportation qualifications and that their vehicles meet food-grade standards,particularly regarding sealing and microbiological criteria.The Company has established customer complaint handling and product recall management procedures. Based onthe reasons for a product recall, appropriate measures are taken for the recalled products—including retrieving non?conforming products, formulating corrective action plans, reducing product prices, and compensating customersfor losses.

ProductDesign

Raw MaterialIntake

Semi-finished

ProductInspection

Finished Product

Inspection

TransportAssuranceAfter-SalesAssurance

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTCrafting Excellence in Quality

Quality Management CultureTo enhance employees’ awareness and capabilities in quality management, JSJ continuously reinforces its quality cultureand actively organizes quality-related activities to foster a “zero tolerance” environment for quality issues. The Companyhas developed an annual quality training plan and regularly conducts quality control training sessions for its employees.

The Company routinely holds training sessions on production processes to ensure thatemployees are well-versed in the entire process—from raw material procurement andprocessing to finished product inspection. These sessions enable staff to gain anin-depth understanding of the critical control points at each stage, thereby ensuringstable product quality.In 2024, the Company optimized its production processes and organized severalspecialized training sessions covering topics such as new equipment operation andprocess improvements, which further enhanced employees’ production skills and qualitymanagement capabilities.

Production Process

Training

The Company emphasizes training on the application of quality tools, including the sevenQC tools, basic microbiology and control methods, GMP management, and HazardAnalysis and Critical Control Point (HACCP) principles. These training sessions effectivelyempower employees to analyze, diagnose, and address quality issues using scientifictools, thereby enhancing both the efficiency and precision of quality management.Quality ToolsApplication Training

Quality Training in July 2024

The Company has established the Special Incentive Management System for the QualityDepartment and conducts an annual “Quality Star” selection event to motivate allemployees to actively participate in quality improvement efforts, thereby solidifying theenterprise’s quality foundation.In 2024, the quality management exemplars selected received both honor and rewards,boosting overall employee enthusiasm for quality management.JSJ places great importance on cultivating quality awareness among its employees.Initiatives such as pre-shift meetings to promote the quality policy, daily quality incidentreporting, and rewards are regularly conducted. These activities ensure that employeesmaintain a high level of focus on quality and reinforce the “Quality First” workphilosophy.In 2024, the Company organized a “Safety, Quality, and Continuous ImprovementKnowledge Competition” that attracted widespread employee participation. Thiscompetition provided a relaxed yet engaging environment for employees to learnquality-related knowledge, thereby further strengthening their quality awareness.

Quality Knowledge Competition“5-Minute Pre-Shift” Quality Commitment Activity

Quality Incentivesand Recognition

Quality Incentivesand Recognition

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTCrafting Excellence in Quality

Green Development,Shoulder the New Mission

?Implementing Green Operations?Building Green Factories?Adherence to Green Development

Our Actions

Our Performance

The intensity of hazardous wastedischarge has decreased compared to 2023

20%

The intensity of water resource use has decreasedcompared to 202312%

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTGreen Development,Shoulder the New Mission

Implementing Green Operations

To respond to the national "dual carbon" goals, the company has taken relevant measures in clean production, energymanagement, and water resource management to reduce carbon emissions. In the future, we will continue to improvestrategy formulation, risk management, and identification and management of indicators and targets, working withdownstream partners in the value chain to address climate change and achieve green development together.

JSJ strictly complies with the Environmental Protection Law of the People's Republic ofChina and the Guangdong Provincial Regulations on Environmental Protection, amongother laws and regulations. Internally, we have established procedures such as theEnvironmental Factor Identification and Control Procedure, Environmental OperationControl Procedure, and Organization's Environmental Control Procedure to standardizethe compliance of our environmental management and actively fulfill our environmentalresponsibilities. During the reporting period, we have not experienced anyenvironmental penalties or fines.For environmental risk management, we have formulated Emergency Plan forEnvironmental Risk Events, Environmental Risk Event Assessment, and EmergencyResource Investigation for Environmental Risk Events to ensure that the company hasthe capability to handle sudden environmental incidents.During the reporting period, the company successfully completed the annual ISO 14001environmental management system supervision audit, passed the clean productionaudit in Zhaoqing City, and obtained the position of director unit of the third council ofthe Guangdong Province Clean Production Association in May.

Implementing Green Operations

EnvironmentalManagement

JSJ strictly abides by the Law of the People's Republic of China on Prevention andControl of Water Pollution and has formulated and implemented Regulations onWastewater Management. We have installed online monitoring devices for chemicaloxygen demand (COD), ammonia nitrogen (NH3) and pH at the wastewater dischargeoutlets of our factories to realize real-time online monitoring of wastewater dischargedand to strictly control the potential risks of wastewater disposal.In accordance with the principle of “segregation of wastewater and sewage, classificationand collection, and quality treatment”, we have constantly upgraded our sewagetreatment system, and have added turbidity meters and pH meters at the front end ofthe sewage discharge pipeline, so as to provide early warning management of sewagedischarge in compliance with the standards.WastewaterManagement

ISO14001 EnvironmentalManagement System

JSJ becomes the governing unit of the third council of Guangdong

Cleaner Production Association

Measures for Treating Exhaust Gas in JSJ

We strictly abide by the Law of the People's Republic of China on Prevention and Controlof Air Pollution in our operation and production, and constantly improve our internalExhaust Gas Management Regulations. Based on the principles of source reduction,process optimization, on-site improvement and end-of-pipe management, JSJ strives toreduce the emission of air pollution in the production process.Exhaust GasManagement

The company strictlyimplements national andlocal pollutant emissionstandards, establishesmanagementnorms for the emission ofwaste gas, dust andhazardous substances, andcommissions third-partytestingorganizations to carry outregular monitoring to ensurecompliance.

The company implementsthe whole process of dustcontrol in the productionchain, and equips the keyareas with high-efficiencybag dusters;synchronously deploysonline monitoring systemsto collectreal-timeemission data to ensuredynamic compliance withthe standards.

The company focuses onprevention and control,identifying abnormalworking conditions of dustremovalfacilities in advance toensure the long-termstable operation ofenvironmental protectionmeasures.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTImplementing Green Operations

Waste- Total Process Management Program

Initiatives to Reduce Energy Consumption in JSJ

In terms of waste management, JSJ always complies with the Law of the People'sRepublic of China on the Prevention and Control of Solid Waste Pollution and theEnvironment and the Guidelines on Classification of Domestic Waste, and hasformulated Waste Management Provisions internally to standardize the wastemanagement work.JSJ actively carries out the work of recycling and reutilization ofwaste, and strives to achieve the goal of Zero Emission of Solid Wastes. We also activelycarry out waste recycling and reuse work, aiming to achieve the goal of zero solid wastedischarge.WasteManagement

JSJ actively cooperates with customers and hires a third party to recycle pallets. The company can recover 36,577pieces of plastic pallets every year and put them into recycling, slowing down the environmental pollution caused bywaste pallets.

CaseWaste Pallet Recycling

In response to the large amount of waste residue generated in the production process, we have successfullytransformed it into industrial-grade silica products through technical support. This initiative helps the company torealize the goal of zero solid waste, reduce the generation of waste, reduce its pollution to the environment, and atthe same time enhance the company's economic efficiency.

CaseWaste Residue Reuse

In accordance with theNational HazardousWaste List and othernational standards,waste generated inthe productionprocess is strictlyclassified.

ClassificationStorageCompliance DisposalRecords

Build storage facilitiesin accordance withthe General IndustrialSolid Waste Storageand Disposal SitePollution ControlStandards (GB-18599)and Hazardous WasteStorage PollutionControl Standards(GB-18597) to preventsecondary pollution ofthe surroundingenvironment (e.g. soiland groundwater).

In strict accordancewith environmentalprotectionrequirements, solidwaste is disposed ofby a qualified thirdparty.

Establish a wastemanagementaccount to recordinformation such asthe type of waste,the amount of wastegenerated, the modeof transportation,and the mode ofdisposal.

Against the background of intensifying global climate change, China has put forwardthe dual-carbon target of “peak carbon by 2030 and carbon neutrality by 2060”,marking the green and low-carbon transformation as a national strategic priority. In thiscontext, JSJ deeply recognizes the importance of low-carbon development, integratesthe dual-carbon target into its corporate strategy, actively responds to the call of thepolicy, upgrades its production process through energy management optimization,adjusts its energy structure, and continuously promotes low-carbon productiontechnology innovation to meet the new opportunity of green and low-carbondevelopment of the enterprise.JSJ's direct carbon emissions mainly come from fossil energy consumption in theproduction process, including natural gas, electricity, and diesel fuel. Indirect carbonemissions mainly come from purchased electricity. To reduce carbon emissions, thecompany is gradually increasing the proportion of renewable energy used in the form ofrooftop photovoltaics. In addition, JSJ utilizes an energy management system to monitorenergy consumption data in real time, optimize energy distribution and reduce waste,thereby steadily advancing the implementation of carbon emission reduction projectswhile safeguarding production efficiency.

Energy Management

Responding to

Dual Carbon

The company manifests its determination of low-carbon development with practicalactions, and is committed to building a low-carbon, environmentally friendly andsustainable corporate image, and contributing positively to the society and theenvironment. The company has compiled and strictly implemented the EnergyManagement Manual and obtained ISO 50001 Energy Management SystemCertification.The company has set up an energy management system team and built an energymanagement platform to help real-time monitoring of production energy consumptionand timely alarms for abnormal energy consumption in the production process to avoidwastage of energy.Energy Management

System

By focusing on equipment upgrading and process optimization, JSJ has built anall-round energy-efficiency improvement system, which reduces operating costs,enhances market competitiveness, and injects green power to protect the earth'shomeland.Energy EfficiencyImprovement

Recover the steam emittedfrom water glass liquefactionand use it to preheat theprocess water, reduce theheating time of cold water,and reduce the energyconsumption by 12%.

Replace the traditionalpulping spray drying withgranular airflow dryingto improve productionefficiency and saveelectricity and energy,reducing energyconsumption by 32%.

Installing frequencyconverter on the mainelectrical equipment intheproduction line toreduce power loss andreducing powerconsumption by 10-15%.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTImplementing Green Operations

JSJ Green Product Design

Promoting energy structure transformation is a key strategy for JSJ's low-carbontransition. To reduce our reliance on traditional energy sources, we optimize our energystructure by laying out distributed photovoltaic systems. By the end of the reportingperiod, the installed capacity of photovoltaic power generation equipment in our plantsamounted to 1,972 KW. During the reporting period, the distributed photovoltaicsystem generated a total of 1,607 MWh of electricity.Energy StructureTransformation

JSJ Rooftop PVWater Resources ManagementThe Company strictly abides by the Water Law of the People's Republic of China and other laws and regulations tostandardize internal water resource management. We carry out inspections and controls on productive water use toreduce water waste. In addition, the Company saves water through equipment optimization and technologicaltransformation and promotes the recycling of water resources.

In 2024, JSJ implemented a series of water-saving optimization measures in the production process, especiallystrengthening precise control of conductivity in the washing process, successfully improving the salt contentstandards of various products, and significantly reducing water resource consumption. During the reporting period,this measure saved a total of 17,166.35 tons of water in the washing process. Through this effort, the productionefficiency has been improved a lot, and JSJ has taken a big step towards building a water-saving enterprise.

CaseWater Conservation by process improvement

JSJ is fully committed to building green factories and closely integrating green concepts into daily production. In greendesign, we incorporate environmental considerations into the entire life cycle of our products. In green manufacturing,we utilize new environmentally friendly materials and advanced technologies, strictly control the production process,and promote the construction of green factories in all aspects. In green logistics, we adjust the mode of transportation,optimize product packaging, reduce logistics energy consumption and emissions, and continue to move towards agreener, more environmentally friendly enterprises.

Building Green Factories

Green DesignTo actively respond to the call for green development, our factory has deeply integrated the green concept into thewhole life cycle of products. In product design, we have innovatively introduced the concept of eco-design,considering the environmental impact and resource utilization efficiency holistically, reducing the use of hazardoussubstances, avoiding the leakage of hazardous substances, and striving to reduce energy consumption andenvironmental pollution. We have also commissioned a third-party certification company to identify and analyzecarbon emission hotspots in the production process, which acts as a base for green design. Carrying out greenproduct design not only makes the products more in line with the market demand for green environmental protection,but also strongly promotes the products to meet the evaluation requirements for eco-designed products in the “GreenFactory Evaluation Requirements”, so that we can practice the strategy of sustainable development with practicalactions.

In the product design stage, we strictly follow the General Principles of ProductEco-design GB/T 24256-2009 standard to carry out eco-design for the products weproduce. The company actively introduces the concept of eco-design, taking intoaccount the environmental impact of the entire process of product production, use anddisposal.We have formulated a clear eco-design process for our products, which includes fivesteps: identifying design products and goals, planning and organizing, demand analysis,product design, and implementation of the design. At the same time, we promotecontinuous product improvement through regular evaluation and feedback tocontinuously improve our eco-design work.

Product Eco-design

According to the General Principles of Eco-design Product Evaluation GB/T 32161-2015standard, we carry out life-cycle evaluation of products based on eco-design productevaluation and prepare the Eco-design Product Evaluation Report of Jinsanjiang(Zhaoqing) Silicon Materials Co.Eco-design Evaluation

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTBuilding Green Factories

JSJ has been successfully included in the “2024 Green

Manufacturing List”

Green Manufacturing

In the wave of green development of the times, our company is fully committed to the practice of greenmanufacturing. On the one hand, we constantly innovate our production process, eliminating old processes with highenergy consumption and pollution, and introducing advanced clean production technologies. On the other hand, wereduce resource consumption and pollutant emissions from the source, and actively optimize the layout of factories,improve energy efficiency, and carry out scientific recovery and recycling of waste. Through multi-dimensional efforts,we create a whole chain green manufacturing system and lead the industry to a new journey of green development.JSJ has introduced the development concept of “green, low-carbon and recycling” in the process of creating greenfactories, mitigating the impact on the environment during the whole life cycle of products, continuously reducingenergy consumption and pollutant emissions, improving resource utilization efficiency, and reducing the use ofnon-renewable resources.

Green LogisticsThe company actively promotes the transformation of green logistics and builds a green logistics system. Bystrengthening quality control management, we improve the one-time arrival qualification rate, effectively reduce therepeated return and reissue of transportation due to quality problems of goods, and reduce the waste of resourcesand carbon emissions generated by the transportation process. At the same time, when conditions permit, wereasonably adjust the mode of transportation, adjusting the automobile transportation to sea transportation, giving fullplay to the advantages of large capacity and low energy consumption of sea transportation. In addition, we activelyplan to build warehouses in the local areas of our customers to improve distribution efficiency and shorten the deliverycycle.JSJ is actively exploring and innovating in the field of packaging, and fully promoting the practice of green packaging.At present, the company's product packaging mostly uses paper bags, and for special circumstances, resolutelyabandoned composite bags, to reduce the impact of packaging on the environment. Not only that, the company alsovigorously advocates the repeated recycling of packaging. In addition, the company in the procurement of rawmaterials, transportation, strictly control the use of disposable packaging materials.

GreenManufacturingSystem Guarantee

We set up a green factory management system and formulate long-term plans and annualimplementation programs in accordance with the principles of plant intensification, harmless rawmaterials, clean production, waste resourcing and low-carbon energy.

CleanProduction

We implement systematic clean production reforms such as pollution reduction and wastereduction to reduce environmental impacts through equipment maintenance and insulationpipeline maintenance.EfficiencyEnhancement

We have continuously invested in a number of energy-saving and water-saving technologies andother renovation projects. For example, waste heat recovery, steam recovery, water recycling andother projects to reduce the use of energy and water resources.

EnergyStructureOptimization

We use solar photovoltaic power to optimize the energy structure and guide the factory towardslow-carbon and cleaner energy.

With these excellent practices in the field of greenmanufacturing, JSJ has been successfully included inthe “2024 Green Manufacturing List” and won theauthoritative award of national green factory, whichmarks another solid step on the road of greenmanufacturing for JSJ. JSJ's inclusion in the list is arecognition and an incentive from the state for ourlong-term practice of ESG concepts. Being selected isnot the end, but a new starting point. In the future,JSJ will, under the guidance of the national“dual-carbon” strategy, infuse the green gene into thewhole business cycle, create a unique path ofsustainable development, and work together withmany high-quality Chinese enterprises to light up theecological background color.

Part of the green packaging materials initiative

We have de-packaged bulk waterglass to reduce packaging waste and improveconvenience and efficiency in production, transportation and use.

We have replaced some of our products with larger bags of 475 kilograms instead of 20kilograms to reduce the amount of packaging used.

CaseJSJ has been successfully included in the “2024 Green Manufacturing List”

JSJ Named "National Green Factory"

The Ministry of Industry and Information Technology releasedthe 2024 Green Manufacturing List, with JSJ awarding the"National Green Factory" title for its outstanding practices inresource efficiency and clean production. This accoladehighlights its commitment to ESG principles. Moving forward,JSJ will integrate green innovation across its value chain,aligning with China’s carbon goals to foster eco-friendlyindustrial growth.

CaseJSJ Named "National Green Factory", Leading Sustainable Development with Green Manufacturing

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTBuilding Green Factories

Climate GovernanceTo respond to the challenges posed by global climate change, JSJ has constructed a rigorous climate governancestructure. We have integrated climate change governance into our daily ESG management work and regard climatechange governance as an important element of ESG governance.In the future, the Company will set up a three-tier governance structure to address climate change: the Board ofDirectors will lead and oversee climate change issues and be responsible for considering climate change-relatedproposals; the ESG Committee will coordinate climate change-related work, convene meetings to discuss andconsider climate change-related proposals submitted by the ESG Specialized Group and submit the results of thediscussions to the Board of Directors; and the ESG Specialized Group will be responsible for the implementation ofclimate change-related management. The ESG Specialized Group is responsible for the implementation of climatechange related management, etc.Climate strategy

Adherence to Green DevelopmentWith the growing concern over climate change, regulators have also imposed requirements on the climate issues facedby various industries. Based on the disclosure recommendations of TCFD (Task Force on Climate-related FinancialDisclosures), JSJ has identified the impacts of extreme and transformational risks on the enterprise based on theindustry's best practices, the climatic conditions of the places where it operates, and with reference to the nationalpolicies, and formulated a response plan.

JSJ has adopted a scientific approach to establish a climate change management strategy. Climate change risks andopportunities are identified and assessed based on climate scenario analysis, which identifies the Company's physicaland transformational risks, as well as opportunities related to energy, products, and services.Physical risks include acute and chronic risks. For example, heavy rainfall and flooding damages operational sites,operational infrastructure, etc., and causes problems such as power outages in equipment and facilities, leading tooperational disruptions and loss of assets. Transformation risks include policy and legal, technical, market andreputational risks. For example, the cost of excess carbon emissions is expected to rise as more and more industriesand companies are included in the carbon trading system; the transformation of low-carbon emission technologiesincreases research and development investment in clean technologies; customer demand for low-carbon services andgreen products gradually rises, and the decline in market share for traditional energy-intensive products results in adecline in revenue; and if the Company fails to meet the expectations of other customers or the public in the area ofenergy conservation and consumption reduction, and other areas of sustainability, it may not be able to meetcustomer or public If the Company fails to meet the expectations of other stakeholders, such as customers or thepublic, in areas of sustainable development such as energy saving and consumption reduction, the brand reputation ofJSJ may be affected.In addition, we have identified opportunities for the Company because of climate change. For example, increasedmarket demand for green and low-carbon products has created new opportunities for our green and low-carbonproducts, and the Company is using more energy-efficient production equipment to reduce operating costs.Based on the risks and opportunities identified, we have developed a management strategy and implementation planto address climate change based on the identified exposures and opportunities and in line with our existing strategy.

Risks and OpportunitiesJSJ has deeply integrated the management of climate change risks and opportunities into its own risk identificationsystem. We have comprehensively sorted out potential risks such as production disruption and policy and regulationadjustments that may be triggered by climate change, and at the same time, we have captured opportunities such asgreen transformation and development of emerging markets to realize controllable risks and grasp opportunities andpromote sustainable development of the enterprise.In response to climate change risks, JSJ strictly abides by the Law of the People's Republic of China on Response toEmergencies and formulates and implements internal systems such as Emergency Preparedness and ResponseControl Procedures and the Emergency Management System for Corporate Emergencies, etc. JSJ has included naturaldisaster disposal methods including meteorological disasters, seismic disasters, geologic disasters, and oceanicdisasters in its emergency response plan to cope with environmental emergencies.In the face of new opportunities brought by climate change, JSJ actively seeks changes and implements precisemeasures. Taking green design as the foundation, the company integrates the concept of environmental protectionfrom the initial stage of product development and makes all-round considerations on product structure and materialselection to ensure that the impact on the environment can be minimized throughout the life cycle of the products. Atthe same time, we take green manufacturing as an important component, continuously optimize the process in theproduction process, upgrade the equipment, improve the energy efficiency, and take practical action towards greendevelopment, so as to realize the harmonious coexistence between the enterprise and the environment.For our greenhouse gas emission data in 2024, please refer to Appendix 1 ‘2024 Key Performance Data Sheet’.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAdherence to Green Development

Care for Employees,Cohesion of New Talents

?Protect the Rights and Interests of Employees?Create a Growth Platform?Enhance Humanitarian Care?Guarding Health and Safety

Our actions

Our performance

Employees participatingin the safety training.

374 Persons

The rate of occupationalhealth check-ups

100%The number of safetytraining sessions13 Times

The coverage rate ofsocial insurance100%

The staff trainingcoverage rate100%

The training hours for employees haveincreased compared to 2023

19.35%

The number of safetyproduction accidents0 Number

The signing rate oflabor contracts100%

The number of deaths due towork-related accidents

0 Person

The total training hoursfor employees

4,003 Hours

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTCare for Employees, Cohesion of New Talents

Protect the Rights and Interests of EmployeesJinsanjiang firmly believes that employees are the core driving force for the development of the company. Thecompany respects the rights and interests of employees, prohibits any form of prejudice and discrimination, andfosters an equal and inclusive workplace atmosphere. In addition, the company has established a high-quality talentdevelopment system, customizing career advancement paths for employees to meet their needs for further learningand self-improvement. Moreover, the company provides a rich compensation and benefits package for employees,strengthens the protection of their occupational health and safety, enhances the sense of belonging among talents,and ultimately achieves shared growth between employees and the company.

Adhering to regulations such as the "United Nations Convention on Human Rights", the "Labor Lawof the People's Republic of China", the "Labor Contract Law of the People's Republic of China", andthe "Prohibition on the Use of Child Labor", Jinsanjiang, in combination with standards for qualitymanagement, occupational health, and social responsibility, has established and improved the"Recruitment Management System". This system clearly defines the company's code of conduct,human resource management, recruitment management, and prohibitions against forced labor.Jinsanjiang upholds the principle of "equal opportunities and recruitment based on merit",eliminates all forms of discrimination in recruitment and employment such as nationality, race,gender, religious belief, and age, and ensures that all employees and job applicants enjoy equalemployment opportunities.During the reporting period, the company formulated and improved the "Jinsanjiang EmployeeHandbook," clarifying the rights and obligations of employees, establishing policies againstdiscrimination, prohibiting child labor, and mandatory labor, and conducted training and advocacyfor all employees. During the reporting period, no incidents of child labor or mandatory labor werefound in Jinsanjiang.

Legal Employment

Adhere to equal

employment

Prohibition of

child laborand forced labor

Enrich the channels

for talentintroduction

Jinsanjiang is committed to creating a diverse international workforce and continuouslyenriching the channels for talent acquisition. The company starts from three aspects: campusrecruitment, social recruitment, and internal recruitment, to enrich the talent pool andcontinuously optimize the talent structure. In terms of campus recruitment, we maintainlong-term cooperative relationships with several well-known institutions, and our 2024campus recruitment will cover South China University of Technology, Sun Yat-sen University,Jinan University, The Hong Kong Polytechnic University, and other higher educationinstitutions. For social recruitment, we have formulated relevant systems and widely attracttalents through online platforms, headhunting, and other recruitment channels. The companyhas established a recommendation channel internally and set up an incentive mechanism,providing diverse ways for talent introduction, which helps talents to take their positions in atimely manner and further enhances the overall competitiveness of the enterprise.

Adhering to the principles of diversity and inclusion, we recruit talents through fair and openselection, choosing the best candidates. As of December 31, 2024, Jinsanjiang has a total of374 employees, including 4 disabled personnel and 5 veteran employees, collectivelyforming a diverse and vibrant workforce in our company.

MaleFemaleNumber ofemployeesby gender

Number ofemployeesby region

Number ofemployeesby age

Number ofemployeesby level

Formation of aDiverse Workforce

On April 27, 2024, Jinsanjiang successfully carried out an open day event for fresh graduates at the factory, attractingmore than 30 upcoming graduates from South China University of Technology. This event aimed to showcaseJinsanjiang's corporate culture, development history, and future blueprint to the students through on-site visits, andprovided a detailed introduction to the company's management trainee program, in order to attract more outstandinggraduates to join the Jinsanjiang family.

CaseFactory Open Day

Factory Open Day

Chinese mainlandOverseas

30 and below 3030-5051 and above

High levelMiddle levelBasic level

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTProtect the Rights and Interests of Employees

Jinsanjiang's Diverse Welfare System

The company adheres to the principle of combining individual and organizational goals,closely linking compensation incentives with the company's long-term development,and enhancing the enthusiasm of outstanding employees and key talents. In 2024,Jinsanjiang improved the "Compensation Management System" and the "PositionSystem Management Regulations," categorizing employees into five major jobcategories: M, P, S, A, and O, and designing a broadband salary scale for each category.In 2024, the company implemented an employee stock ownership plan involving1,113,300 shares of stock with a transfer price of 8.875 RMB per share. The scope ofparticipants in this employee stock ownership plan includes the directors, supervisors,senior management, core managers, and supervisory personnel of the company(including branches and subsidiaries), totaling 44 employees.In the same year, the company implemented a stock incentive plan and held a board ofdirectors and board of supervisors meeting on May 20, 2024, where it was agreed togrant a total of 1,993,998 shares of stock to 60 eligible incentive recipients at a price of

4.34 yuan per share.

In addition to salary and equity incentives, Jinsanjiang offers a wide range and varietyof other welfare benefits to all employees. Besides legal compliance with socialinsurance and housing provident fund contributions, we provide dormitory and canteenfacilities for staff. The company also offers annual health check-ups, regularlyorganizes team-building activities, and gifts festival presents, thereby creating ahumanized working environment for employees. During the reporting year, Jinsanjiangconducted a comprehensive optimization of the "Welfare Management System."

Employee Well-being

CompensationIncentives

Employees holding

Share plan

StockIncentive Plan

Otherbenefits

Leave Benefit Family Visit Subsidies

Birthday BenefitsHoliday Benefits

Health Check-upsSocial Insurance

Tourism ActivitiesDevelopment ActivitiesDepartmental TeamBuilding Funds

Labor ProtectionHousing ProvidentFund

Meal SubsidiesFree Snack Distribution

DiverseWelfare System

Relax

Assurance

Health

Festival

Diet

Activity

staff team-building activity

CaseStaff team-building activity

Christmas Party

CaseChristmas Party

Create a Growth Platform

Training SystemJinsanjiang takes talent development as an important strategy, continuously improving the talent cultivation system,optimizing the staff promotion mechanism, and establishing talent development plans that meet the needs ofmanagement, marketing, operational, administrative/logistics, technical/professional and other positions. The companycontinues to exert effort in selecting, employing, educating, and retaining talents, encouraging employees to enhancetheir professional skills and cultivate their ability to identify and solve problems.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTCreate a Growth Platform

Promotion Mechanism

The company has formulated the "Position System and Post Adjustment Management System," established 5 types ofcareer development paths, improved the company's job map, and provided an equal promotion platform foremployees.

The company arranges mentorship guidance for new employees to help them adapt tothe working environment. At the same time, the company provides a two-week trainingprogram for new employees, covering the company's history and current status,organizational structure and departmental responsibilities, corporate culture, rules andregulations, and job skills, etc., to assist new employees in smoothly integrating intotheir new roles.The company gradually improves the development projects for technical talents,establishes a professional learning ecosystem, and enriches the professionaldevelopment paths and resources for employees.During the reporting year, the company formulated the "Successor Cultivation andManagement System". This system explicitly stipulates that for employees who performoutstandingly in their positions (potential successors), the company will conductspecial cadre training to enhance the capabilities of existing cadres and reservepotential leaders for the company.

New employeementoring

The company has divided the management levels into 12 ranks according to theactual situation.

Category M (Management)Promotion Path

The company has divided the marketing levels into 7 ranks according to theactual situation.

Class S (MarketingCategory)Promotion pathway

The company divides the technical/professional levels into 8 ranks based onactual conditions.

P Category (Technical/Professional)Promotion Pathway

The company has divided the administrative and clerical levels into 7 ranksaccording to the actual situation.Class A (Administrative,Logistics, and Clerical)

promotion pathway

According to the actual situation, the company divides the operational levels into6 ranks.Type O (Operation type)Promotion pathway

The demeanor of the management trainees of the class of 2024.

CaseThe demeanor of the management trainees of the class of 2024

Phase 1: 7 months of intensive trainingPhase 2: Job rotation Phase 3: Serve as the project leader

3 months of R&D & 4 months of supplychain: assessment after the end ofeach stage.In the first four months, the phasedassessment set up by the managementtrainee project team should be completed(such as: the whole process of thesimulated factory)Complete on-site related projectsindependently or cooperatively (such aspromoting 5S projects)

In the process of rotation work in thecenter, 70% of the work of managementtrainees is consistent with otheremployees in the department.The leaders of the center prepare 1-2projects and communicate with themanagement trainee project team andsend them to the management traineesof the center to completeindependently, as the assessmentcontent of the center. During this time,the management trainees are requiredto participate in meetings and travelwith the center leaders.

According to the company'sarrangement and personal wishes,Go into a center and work on it.During the period, you need toindependently lead a small team,receive the task indicators of thecenter and assess them according tothe completion of the situation.

Management Trainee Program

Jinsanjiang has established an exclusive training system for fresh graduates in R&D, sales, and supply chain positions.In the reporting year, the company formulated the "Management Trainee Training Management System," which,through progressive training objectives and programs, helps fresh graduates understand the company culture, quicklyadapt to their professional roles, and become familiar with the job responsibilities of their positions.

Employee TrainingJinsanjiang focuses on the talent development system, providing employees with a wealth of training courses andlearning resources to meet their needs for career development and skill enhancement. In addition, the companyarranges corresponding assessments for key training courses to test and consolidate employees' mastery of the coursecontent. In 2024, the company's total training hours reached 4,003 hours, with a training coverage rate of 100% foremployees.

Training oftechnical backbonesTalent developmentin management

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTCreate a Growth Platform

Example of Offline Training Courses in 2024 (Environmental and Safety Category)

All staffAll staffSafety production management personnelAll staffAll staffContact personnelPersonnel in contact

All staff

All staff

All staff

Fire safety knowledgeMajor holiday safety (Spring Festival)

Sunstroke PreventionEmergency evacuationChemical SafetyOccupational healthFirst aid knowledgeMajor holiday safety (National Day)

Treatment for burnsSafety Management SystemEnvironmental protection knowledge

Training coursesCourse IntroductionTraining audienceTraining format

Fire alarm systems, fire hydrant systems, and fire extinguisher usageSafety precautions during and after the festival period

Definition of Heatstroke, Preventive Measures, and First Aid MethodsEmergency evacuation routes and precautionsClassification of Hazardous Chemicals, Key Management Points, and Emergency Response MeasuresOccupational hazard risks and the correct use of PPEFirst aid knowledge and the use of defibrillatorsSafety precautions during and after the festival period

Definition of Burns, Preventive Measures, and First Aid MethodsKey Points and Update Content of the Work Safety Management SystemWaste classification and hazardous waste

Training for safety qualifications of main responsible personneland safety management staff

According to Article 6 of the "Provisions on Safety Training for Production and Operation Units,"the main responsible persons and safety management personnel must participate in the trainingorganized by the government and obtain a safety qualification certificate.

Representatives of department managersand supervisors

The main person in charge of safety and themanagement personnel of safety production

Representatives of department managersand supervisors

According to Article 6 of the "Provisions on Safety Training for Production and Operation Units,"the main responsible persons and safety management personnel must participate in the trainingorganized by the government and obtain a safety qualification certificate.Training for the safety qualification certificates of mainresponsible personnel and safety management staff

Classroom lecturesClassroom lectures

Classroom lecturesClassroom lecturesClassroom lecturesClassroom lecturesClassroom lectures

Classroom lecturesClassroom lectures

Classroom lectures +hands-on practice

Classroom lectures +hands-on practiceClassroom lectures +hands-on practice

Classroom lectures +hands-on practice

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTCreate a Growth Platform

In response to the professional growth needs of employees, the company launched the "Gold Class SupervisorTraining" course, aimed at enhancing the management and leadership skills of class supervisors, enabling them tolead their teams more effectively and improve work efficiency and quality.CaseGold Medal Team Leader Training

Gold Medal Team Leader Training

CaseStaff Seminar

Staff Seminar

In 2024, Jinsanjiang launched the "Jinsanjiang Business School" online learning platform, allowing employees to learnin their fragmented time, enhancing the convenience and experience of learning. The online learning method not onlyincreased employees' motivation to learn but also injected strong momentum into the continuous development of theenterprise.

CaseOnline learning platform

some online training courses (in-house training)

Some online training courses (external training)

Establish Communication Channels

Jinsanjiang has always attached great importance to employee welfare, considering it crucial for enhancingorganizational cohesion. The company provides various communication channels for employees to address their needsand assist those in difficulty. In addition, the company organizes a variety of cultural and recreational activities tosafeguard the physical and mental health of employees, and to strengthen their sense of identity and belonging to thecompany.

Enhance Humanitarian Care

The company has established diverse communication channels for employees to reflect issues through various means.

The company holds regular staff forums where on-the-spot responses and exchangesare made to address issues, and post-meeting discussions, analyses, and improvementmeasures are developed for some of the requested items.Staff symposium

The company has set up a suggestion box and a wish wall for employees in thecafeteria, encouraging them to speak freely. The administrative department summarizesthe suggestions monthly and publicizes the responses to all employees.

Staff suggestion box

and staff wish wall

The company has established a survey questionnaire for employee satisfaction andconducts on-site spot checks to collect, summarize, and analyze the needs ofemployees in modules related to logistics support and corporate services. It activelyestablishes project teams for project initiation and improvement, striving to provide thebest possible services and improvements for employees to the greatest extent.

Employeesatisfaction survey

The company has a trade union, which represents the employees in collectivebargaining with the company on issues directly affecting the employees' interests, suchas labor remuneration, working hours, rest and vacation, insurance benefits, labor safetyand health, vocational training, and so on.

Trade Union

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTEnhance Humanitarian Care

Assisting Employees in Difficulty

In 2024, a family member of a Jinsanjiang employee fell critically ill. The trade union immediately went to the hospitalto accompany and support the treatment, expressing deep condolences to the employee and their family. Uponlearning that the employee's family was facing financial pressure due to the education of two children, the trade unionquickly allocated 40,000 yuan to alleviate the employee's economic hardship and help the family through the difficulttime. The company not only generously provided financial assistance to the employee but also offered emotionalsupport, demonstrating our firm commitment to the well-being of our employees, always standing as their strongestsupport.

Enriching Cultural and Recreational ActivitiesIn 2024, Jinsanjiang organized a variety of cultural and entertainment activities, holding celebration events during theChinese Spring Festival, Dragon Boat Festival, and Mid-Autumn Festival, organizing employees to participate in sportsmeetings. These activities helped employees to relieve work stress and enhanced the team's cohesion.

In November 2024, the first staff sports event of the High-Tech Zone was officially launched, with Jinsanjiang takingan active role in organizing staff participation. The sports event not only provided a platform for competitive exchangeamong employees but also injected vitality into Jinsanjiang's team building, becoming a vivid footnote to theconstruction of corporate culture.

CaseThe First Staff Sports Games of Zhaoqing High-tech Industrial Development Zone

Snapshot of the sports event

In 2024, the Jinsanjiang Guangzhou office hosted a themed sharing event entitled "The Secret to the Healthy Growthof Crisp Youth," featuring experts who explained psychological quality, emotional management, time planning,interpersonal communication, and more. Through case analyses and interactive Q&A sessions, employees wereguided to discuss workplace adaptation and the realization of self-worth.

Case"The Secret to the Healthy Growth of Crisp Youth" Themed Sharing Session

Jinsanjiang provides all employees with strong occupational health and safety protection. In the reporting year, thecompany comprehensively revised the "Industrial Injury Management System" and renamed it the "Safety IncidentManagement System," which clarifies various types of industrial injuries and corresponding measures. This is to furtherimplement the company's safety policy of "Safety First, Prevention Oriented, Safe Development, People-Centered."The company has set a goal of "zero occupational diseases" for occupational health management, regularly tests foroccupational hazards in the workplace, and provides occupational health check-ups for employees. It organizes safetyand environmental training throughout the company to enhance employees' ability to protect their own health. Duringthe reporting period, the company, in conjunction with the property management company, carried out emergency firstaid publicity and training, with many employees participating in the first aid volunteer training.At the same time, the company addresses pain points and difficulties in daily management by regularly holdingoccupational health communication meetings and comprehensively collecting employee demands.In addition, indicators related to employee occupational health have been incorporated into the performance appraisalof senior executives, achieving a link between compensation and performance, and stimulating management initiative.

Guarding Health and Safety

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTGuarding Health and Safety

Reciprocal Benefit and Ahared Prosperity,Creating a Better New Life Together

?Responsible Supply Chain?Achieve Common Development

Our actions

Our performance

Publish paper through industry-university-research cooperation

1 Item

Industry-academia-researchcooperation patents

2 Items

Take the lead in drafting the formulationof silica-related standards2 ItemsThe cumulative amount of donationsover the past three years

46,200 Yuan

?

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTReciprocal Benefit and Shared Prosperity, Creating a Better New Life Together

The diagram shows the access process for Jinsanjiang suppliers

Responsible Supply Chain

Under the concept of sustainable development, Jinsanjiang has formulated the "Procurement Management System"and the "Supplier Selection and Evaluation Control Procedures". To enhance the effectiveness of the systems, wefurther improved the comprehensive management framework for sustainable procurement, combining the suppliers'compliance statements and codes of conduct, to form a comprehensive management system. This system covers theentire process from supplier access to continuous cooperation, ensuring that every link meets high standards ofsustainability, and each component is tasked with the responsibility of moving towards sustainable development goals.

Sustainable Procurement Policy

Supplier Compliance Statement

Sustainable Procurement System

SustainableProcurement Measures

SustainableProcurement EvaluationSustainable activities run through the entire lifecycle management of suppliers

Supplier Selection

SustainableProcurement Improvement

Integrity Commitment

Prohibition ofChild Labor

Quality Commitment

EnvironmentalProtection

PerformanceManagement

Risk ManagementCollaboration and

DevelopmentSafe, green, andenvironmentallyfriendlyCompliance inoperationsRelevantdiversification

Anti-corruptionQualitySafe andenvironmentallyfriendlyLegal employment

Supplier re-auditSupplier phase-out

Supplier meetingsTechnicalcommunications

Supplier SelectionTo implement the "Procurement Management System" and the "Supplier Selection and Evaluation Control Procedure,"and to strengthen the enrollment of suppliers, the company comprehensively assesses key factors such as supplierproduct quality, compliance, delivery capability, environmental and safety performance, and price, and implements amonthly review and scoring system. Suppliers who score below 90 points are required to take corrective measures.At the same time, we require suppliers to sign documents such as the "Procurement Framework Agreement" (includingthe Supplier Code of Conduct), "Supplier Quality Assurance Agreement", "Supplier Environmental Agreement","Anti-bribery Pledge", and "Confidentiality Agreement" to ensure that suppliers adhere to ESG standards.

ESG Performance Management

Anti-corruption

Quality Pass

Jinsanjiang adheres to the principles of integrity and self-discipline, committed tocreating a fair, open, and efficient business cooperation environment. Jinsanjiang hassigned an "Anti-Bribery Pledge" with its core suppliers, explicitly requiring them toestablish an anti-corruption management system to eliminate any form of corruption,unfair competition, fraud, and bribery.In addition, Jinsanjiang encourages suppliers to report any violations of thecommitment letter. To facilitate reporting, the company has specifically provided areporting email in the "Anti-Bribery Commitment Letter", where suppliers can directlysend emails to report any violations. Jinsanjiang promises that all reports will be takenseriously and investigated fairly, and corrective measures will be taken to maintain aclean and honest cooperative relationship.The company requires its core suppliers to establish an ISO 9001 quality managementsystem and to sign a "Product Quality Assurance Agreement" with the suppliers of rawand auxiliary materials. The agreement mandates that suppliers commit to ensuringthat the content of harmful substances in the products they provide meets therequirements of the EU ROHS directive. It also requires that product quality ismaintained during transportation to avoid physical, chemical, and biologicalcontamination; that products are strictly controlled during production, processing, andtransportation to prevent intentional damage and contamination; and that packagingmaterials must be non-toxic, harmless, and free of pungent odors. In addition, thecompany will conduct regular and irregular audits of the suppliers' qualitymanagement systems.

SustainableProcurement Planning

Sourcing

andcollecting

data

Preliminaryevaluationof materials

SampleTesting

On-siteaudits

Try it insmallbatches

Sign thecontract

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTResponsible Supply Chain

Safety andEnvironmental

Protection

The company requires core suppliers to provide system certificates such as ISO 45001for occupational health and safety management systems and ISO 22000 for food safetymanagement systems. A "Supplier Environmental Agreement" is signed with coresuppliers, mandating them to strengthen environmental protection.

The raw materials used in producing products must meet the national,local, and industrial legal and regulatory requirements forenvironmental protection.

Employment inaccordance with

the law

In the "Procurement Framework Agreement", it is clearly stated that suppliers mustfulfill the following social responsibilities: prohibit the use of child labor, forced labor,and human trafficking, comply with regulations on working hours, compensation, andother working conditions, and purchase social insurance for each employee; theproducts provided must be manufactured under conditions that adhere toenvironmental protection and occupational health and safety principles; and it shouldbe ensured that employees are not threatened by health and safety issues.

Priority is given to using production processes and equipment that arepollution-free or have minimal pollution, and production processes orequipment that have been prohibited by national or local regulationsmust not be used.Measures must be actively taken to control excessive pollutants (wastewater, waste gas, solid waste, noise, etc.) emitted during theproduction process, and practical plans must be formulated to meetnational or local emission standards within the specified time frame.priority is given to using recyclable packaging materials to avoid wasteof resources.The emissions of waste gas, noise, and washing waste water from thetransportation vehicles used must comply with relevant laws andregulations.

RawMaterialsProductionEquipment

Pollutants

PackagingMaterials

The company continuously evaluates the ESG performance of key suppliers throughvarious means such as on-site audits, survey questionnaires, and communicationmeetings, and provides support for the construction of suppliers' sustainablecapabilities based on the evaluation results. In accordance with the requirements ofsupplier performance management, we regularly assess the performance of suppliersfrom dimensions such as quality, compliance, delivery, cost, and ESG performance, andrequire suppliers with scores below 90 points to make improvements.Jinsanjiang has established a strict supplier phase-out mechanism, implementing agrading management system ranging from A to D. The company regularly conductson-site audits of supplier factories and take actions based on the assessment results:

suppliers who score below 65 points for three consecutive months, those rated asD-level suppliers annually, and those who have failed the audit three times or morewithin the past year will have their qualified supplier status revoked. In 2024,Jinsanjiang conducted annual on-site audits of the two major raw material suppliers toensure that all the suppliers' indicators meet Jinsanjiang's high standard requirements.

Jinsanjiang communicates the concept of sustainable development to suppliers through procurement contracts andsupplier meetings, sharing experiences and methods related to ESG management,Empower suppliers in building their capabilities in compliance adherence and sustainable development, assistsuppliers in improving their ESG performance, and jointly create a green supply chain. To this end, we conduct ESGprofessional training for our internal teams to ensure a deep understanding and application of sustainablemanagement methods within the company. Externally, we hold regular meetings with suppliers to exchange ideas,establish a closer partnership with them, and jointly promote sustainable development.

Collaboration and Development

Risk Management

score between 90-100A Grade

score between 80-89B Grade

score between 65-80C Grade

score below 65D Grade

Supplier Review

Supplier Phase-out

TransportationVehicles

Disqualify the supplier depending on the circumstances

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTResponsible Supply Chain

Achieve Common Development

Facilitating Industry Co-prosperity

Jinsanjiang actively carries out technical cooperation with research institutions, industry associations, universities, etc.,participating in the formulation of industry standards, industry-academia-research cooperation, and industry exchangeactivities, promoting shared prosperity within the industry.

Industry StandardDevelopment

In 2024, the company took the lead in drafting two standards related tosilicon dioxideTake the lead in drafting the "Evaluation Requirements for Green Factories ofPrecipitated Silica (T/COCIA 34—2024)", which was released on July 15, 2024;Take the lead in drafting the"Technical Specification for Evaluation of GreenDesign Products - Precipitated Silica (T/COCIA 33—2024)", which wasreleased on July 15, 2024

Industry Exchange

Activities

The company actively participates in industry exchange activities, discussingcutting-edge silica technology with industry experts, and working together toenhance the overall competitiveness of the industry.

Industry-Academia-ResearchCollaboration

Jinsanjiang has established in-depth cooperative relationships with institutionssuch as South China University of Technology and Guangzhou Institute ofQuality Supervision and Inspection. In 2024, the company published papersand applied for multiple patents through industry-academia-researchcooperation.Jinsanjiang and its partners jointly published a research paper in theEuropean Polymer Journal: "Bis-acrylate functionalized enone asphotoinitiators for UV-LED photopolymerization"

A method for preparing directionally grown silica nanowires and itsapplication 2024108765946An ultra-high concentration mesoporous silica hollow sphere and itspreparation method 2024104778735

Co-published papers

Joint patent application

From November 6th to 8th, the "25th Organic Silicon Fine Chemicals Technology Exchange Conference", hosted byBeijing Guohua New Material Technology Research Institute and co-organized by the ACMI Silicon MaterialDevelopment Center and Beijing Fluorosilicone Technology Development Co., Ltd., was grandly held. Jinsanjiang, as asponsor of this industry event, showcased its BACOSIL series of precipitated silica for silicone rubber and diversesolutions, demonstrating its innovative achievements and strength in the field of silicon materials, and deepening thecommunication and cooperation with industry peers.

CaseThe 25th Organic Silicone Fine Chemicals Technology Exchange Conference

Jinsanjiang participating in the 25th Organic Silicon Fine Chemicals Technology Exchange Conference

On November 29, 2024, Jinsanjiang was honored to be invited to participate in the "High-End Service andCross-Border Export Forum" hosted by the Guangzhou High-End Service Industry Development PromotionAssociation, and was awarded the "Industry Innovation Leadership Award". The person in charge of Jinsanjiangattended the event, listened carefully to the experts' opinions and participated in the discussion, further broadeningthe international perspective and laying a more solid foundation for Jinsanjiang's brand export strategy.

Case Jinsanjiang wins the "Industry Innovation Leadership Award"

Jinsanjiang attending the Guangzhou High-End Service and Cross-Border Export Forum and Certification Ceremony.

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAchieve Common Development

From November 3rd to 6th, 2024, the Tenth Member Congress and the Fifth International Oral Care AcademicSeminar were grandly held in Shenzhen, Guangdong. As the vice-president unit of the association, Jinsanjiangdiscussed in-depth the new trends, new applications, and new challenges in the oral care industry during themeeting. At this seminar, the paper "Research on Silicon Dioxide with the Function of Blocking Dentin Tubules"submitted by Jinsanjiang won the Second Prize for Excellent Papers at the "Fifth International Oral Care AcademicSeminar."

Case

The 10th Member Congress of the China Oral Cleaning and Care Products Association in 2024 and the 5thInternational Oral Care Academic Seminar

At the "Precipitated Silica" forum on November 8, 2024, the Vice President of Research and Development atJinsanjiang was invited as a guest expert and delivered a report speech on the topic of "A Method for Preparing andCharacterizing High Dispersion Precipitated Silica". He shared Jinsanjiang's experience and insights in the researchand development and manufacturing of high dispersion precipitated silica, and engaged in discussions andinteractions with university professors and industry experts present at the event, jointly exploring the futuredevelopment direction of the precipitated silica industry.

Case2024 White Carbon Black Nanosilica Material Technology Exchange Seminar

Jinsanjiang participating in the "2024 White Carbon Black Nano Silicon Material Technology Exchange Conference."

Jinsanjiang participating in the 5th International Oral Care Academic Seminar and award ceremony.

Focusing on Public Welfare

In the process of globalization, Jinsanjiang has always attached importance to social welfare. Through businessinnovation, charitable donations, and employee volunteer activities, it has improved community infrastructure,supported the development of rural communities, and fulfilled its corporate social responsibilities in a practical manner.

In 2024, Jin Sanjiang continued to participate in the donation activity "I Plant a Tree for My Hometown, Jointly Buildingthe Zhaoqing Concentric Forest". In the activity, Jinsanjiang donated 6,000 yuan to adopt seedlings, contributing tothe green development of Zhaoqing. In the future, Jinsanjiang will consistently implement President Xi Jinping'sthought on ecological civilization, persistently engage in tree planting and forestation activities, and promote theconstruction of a beautiful China.

Case2024 Public Welfare Donation

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAchieve Common Development

Appendix

Appendix I 2024 Key Performance Data Sheet

Energy Consumption

Greenhouse Gas Emissions

Water Resource Use

Total Energy ConsumptionDirect Energy ConsumptionIndirect Energy ConsumptionTotal Energy Consumption IntensityGreenhouse Gas Emissions (Scope 1+Scope 2)GHG Emissions (Scope 1)GHG Emissions (Scope 2)Greenhouse Gas Emissions Intensity (Scope 1+Scope 2)Total Water ConsumptionWater Consumption IntensityRecycled Water Utilization RateWastewater DischargeWastewater Discharge QuantityWastewater Discharge IntensityAtmospheric PollutantsParticulate EmissionsVOCsNitrogen Oxides Emissions

Tonnes of standard coalTonnes of standard coalTonnes of standard coalTonnes of standard coal / 10,000 yuan revenueTonnes of carbon dioxide equivalentTonnes of carbon dioxide equivalentTonnes of carbon dioxide equivalentTonnes CO2e/ 10,000 yuan revenue10,000 tonnesTonnes/10,000 yuan revenue%10,000 tonnesTonnes/ 10,000 yuanTonnesTonnesTonnes

16,695.0011,194.355,500.65

0.43

38,353.8818,221.7420,132.15

0.99

95.36

24.73

7.76

2024年2023年环境指标Waste Management

Hazardous Waste EmissionsHazardous Waste Emissions IntensityHazardous Waste Emissions IntensityNon-hazardous Waste Recycling QuantityNon-hazardous Waste Emissions IntensityNon-hazardous Treatment Ratio of Industrial Solid WasteEnvironmental PerformanceNumber of Environmental Violation Penalties

TonnesKg/10,000 yuanTonnesTonnesKg/ 10,000 yuan%

PeoplePeoplePeople%TimesTimesTimes

Cases

1.76

0.046

659.56

659.56

17.11

99.73

16.7

10,000 yuan%People/

1,781.69

4.62

Number of DirectorsNumber of Non-Independent DirectorsNumber of Female DirectorsPercentage of female directorsNumber of shareholders' meetings held in FY2024Number of board meetings held in FY2024Number of supervisory board meetings held in FY2024

2023年

R&D investmentR&d investment as a percentage of company's revenueR&D workforceNumber of new patents granted during 2024

2023年

2024Environmental PerformanceUnit

2024Environmental PerformanceUnit

2024Governance IndicatorsUnit

2024R&D InnovationUnit

77.15

20.01

7.95

1,412.65

3.14

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAppendix

///

Total patent authorizationsTotal patents grantedTotal intellectual property rights

2023年

/

Lawsuits Related to False Marketing Claims

2023年

Total number of employeesDivided by genderTotal number of male employeesTotal number of female employeesDivided by ageThe total number of employees aged 30 and belowThe total number of employees aged between 31-50The total number of employees over 50 years oldDivided by regionEmployees in Mainland ChinaDivided by levelSenior managementMiddle-levelGrassrootsNumber of disabled employees hired

People PeoplePeople PeoplePeoplePeoplePeoplePeople PeoplePeoplePeoplePeople

 

 

 

 

%People%%%%

1.06%

1.34%

30%

100.00%

100.00%

Proportion of disabled employeesNumber of veteran employeesProportion of veteransProportion of female executivesRate of labor contract signingSocial insurance coverage rate

PeopleHoursHours PeoplePeople HoursHours

4,003

10.17

 

 2,847.051,155.95

Number of participants in employee trainingTotal duration of employee trainingAverage training duration per employeeNumber of trained individuals by genderNumber of male employees trainedNumber of female employees trainedTotal trained hours divided by genderTotal training hours for male employeesTotal training hours for female employees

YuanPeople/PeopleHours%

353,181

Amount of investment in safety productionNumber of people suffering from occupational diseasesNumber of safety training sessionsNumber of employees participating in safety trainingAverage duration of safety training per personOccupational health examination rate

2024R&D InnovationUnit

2024Responsible MarketingUnit

2024Employee RecruitmentUnit

Employees in Hong Kong, Macau, Taiwan and overseas

2024Employee RecruitmentUnit

2024Training Hours ReceivedUnit

2024Health and SafetyUnit

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAppendix

The organization and its reporting practices2-12-22-32-42-6Activities and worker2-7Governance2-92-122-132-142-16Strategy, policies and practices2-222-272-28Stakeholder engagement2-293-13-2

About the ReportAbout the ReportAbout the ReportAbout the ReportCompany Profile

GRI 2 General disclosure 2021

GRI 3 Material Topics 2021

Corresponding ChapterGRIDescription

Organizational detailsEntities included in the organization’ssustainability reportingReporting period, frequency, andcontact pointRestatements of informationActivities, value chain and otherbusiness relationships

Governance structure and compositionRole of the highest governance bodyin overseeing the management of impactsDelegation of responsibility formanaging impactsRole of the highest governance bodyCommunication of critical concernsStatement on sustainable developmentstrategy

Approach to stakeholder engagementProcess to determine material topicsList of material topics

Compliance with laws and regulationsMembership associations

Employees

Refining Governance, Crafting a NewVision of Growth

Care for Employees, Cohesion ofNew Talents

Refining Governance, Crafting a NewVision of GrowthRefining Governance, Crafting a NewVision of GrowthRefining Governance, Crafting a NewVision of GrowthRefining Governance, Crafting a NewVision of GrowthRefining Governance, Crafting a NewVision of GrowthRefining Governance, Crafting a NewVision of GrowthESG Performance and HonorsRefining Governance, Crafting a NewVision of GrowthRefining Governance, Crafting a NewVision of GrowthRefining Governance, Crafting a NewVision of Growth

AppendixAppendix II GRI StandardPeopleItems

Number of deaths due to work-related incidentsNumber of safety production accidents

2024Health and SafetyUnit

/ /////%

 

13%

Total number of suppliersDivided by regionEast regionCentral regionNortheast regionWest regionSouth regionSupplier localization ratio (local procurement ratio)

2024Number of SuppliersUnit

10,000 yuan10,000 yuan 10,000 yuan%10,000 yuan%yuan/share

73,085.0038,554.956,058.93

13.84

2,968.68

19.31

0.23

Total assetsRevenueTotal profitNet rate of return to parentTax paymentGearing ratioBasic EPS

2024Economic PerformanceUnit

Yuan46,200

2024Community InvestmentUnitTotal accumulated donation amountover the past three years

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAppendix

Operations assessed for risks related tocorruptionCommunication and training aboutanti-corruption policies and procedures

Waste generation and significantwaste-related impactsManagement of significant waste-relatedimpacts

New suppliers that were screened usingenvironmental criteriaNegative environmental impacts in the supplychain and actions takenBenefits provided to full-time employees that arenot provided to temporary or parttime employees

Waste generated

Confirmed incidents of corruption andactions takenLegal actions for anti-competitive behavior,anti-trust, and monopoly practices

Reductions in energy requirements ofproducts and servicesInteractions with water as a sharedresourceManagement of water discharge-relatedimpactsWater dischargeWater consumptionDirect (Scope 1) GHG emissionsEnergy indirect (Scope 2) GHG emissionsOther indirect (Scope 3) GHG emissionsGHG emissions intensityNitrogen oxides (NOx), sulfur oxides (SOx),and other significant air emissions

Energy consumption within the organization

Reduction of energy consumption

302-1

Corresponding ChapterGRIDescription

Green development, Shoulder theNew MissionAppendix I 2024 Key PerformanceData Sheet

Green development, Shoulder the NewMissionGreen development, Shoulder the NewMission

Care for Employees, Cohesion of NewTalents

Energy intensity302-3

Green development, Shoulder theNew MissionAppendix I 2024 Key PerformanceData Sheet

Reciprocal Benefit and Shared Prosperity,Creating a Better New Life TogetherReciprocal Benefit and Shared Prosperity,Creating a Better New Life Together

3-3GRI 204 Procurement Practices 2016204-1GRI 205 Anti-corruption 2016205-1205-2205-3GRI 206 Anti-competitive Behavior 2016206-1GRI 302 Energy 2016

302-4302-5GRI 303 Water and Effluents 2018303-1303-2303-4303-5GRI 305 Emissions 2016

305-1305-2305-3305-4305-7

Management of material topicsProportion of spending on local suppliers

GRI 306 Waste 2020

306-1306-2306-3

GRI 308 Supplier Environmental Assessment 2016308-1308-2GRI 401 Employment 2016401-2GRI 403 Occupational Health and Safety 2018

Refining Governance, Crafting a NewVision of Growth

Refining Governance, Crafting a NewVision of GrowthRefining Governance, Crafting a NewVision of GrowthRefining Governance, Crafting a NewVision of Growth

Green development, Shoulder theNew MissionGreen development, Shoulder theNew MissionGreen development, Shoulder theNew MissionGreen development, Shoulder theNew Mission

Refining Governance, Crafting a NewVision of Growth

Appendix I 2024 Key PerformanceData Sheet

Appendix I 2024 Key Performance DataSheet

Appendix I 2024 Key PerformanceData SheetAppendix I 2024 Key PerformanceData Sheet

Appendix I 2024 Key PerformanceData SheetAppendix I 2024 Key PerformanceData SheetAppendix I 2024 Key PerformanceData SheetAppendix I 2024 Key PerformanceData SheetAppendix I 2024 Key PerformanceData Sheet

Corresponding ChapterGRIDescription

Occupational health and safety managementsystemHazard identification, risk assessment, andincident investigationWorker participation, consultation, andcommunication on occupational healthand safetyWorker training on occupational healthand safetyPromotion of worker healthPrevention and mitigation of occupationalhealth and safety impacts directly linkedby business relationshipsWorkers covered by an occupationalhealth and safety management systemWork-related injuriesWork-related ill healthAverage hours of training per year peremployee

Occupational Health Services

Empowerment through Digital Intelligence,Innovation Leading a New FutureCare for Employees, Cohesion of New TalentsEmpowerment through Digital Intelligence,Innovation Leading a New FutureCare for Employees, Cohesion of New TalentsEmpowerment through Digital Intelligence,Innovation Leading a New FutureCare for Employees, Cohesion of New TalentsEmpowerment through Digital Intelligence,Innovation Leading a New FutureCare for Employees, Cohesion of New TalentsEmpowerment through Digital Intelligence,Innovation Leading a New FutureCare for Employees, Cohesion of New TalentsEmpowerment through Digital Intelligence,Innovation Leading a New FutureCare for Employees, Cohesion of New TalentsEmpowerment through Digital Intelligence,Innovation Leading a New FutureCare for Employees, Cohesion of New TalentsEmpowerment through Digital Intelligence,Innovation Leading a New FutureCare for Employees, Cohesion of New TalentsEmpowerment through Digital Intelligence,Innovation Leading a New FutureCare for Employees, Cohesion of New TalentsAppendix I 2024 Key Performance DataSheet

Appendix I 2024 Key Performance DataSheet403-9

403-1403-2403-3403-4403-5403-6403-7403-8403-10Training and Education 2016404-1

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAppendix

SDGsGRICNASCRMDCSMESSAPEMSPLMCCPGMPPPECODVOCTCFDROHS

Sustainable Development GoalsThe Global Reporting InitiativeChina National Accreditation Service for Conformity AssessmentCustomer Relationship ManagementDistributed Control SystemManufacturing Execution SystemSystems, Applications, and Products in Data ProcessingEnergy Management SystemProduct Lifecycle ManagementCritical Control PointGood Manufacturing PracticePersonal Protective EquipmentChemical Oxygen DemandVolatile Organic CompoundsTask Force on Climate-related Financial DisclosuresRestriction of Hazardous Substances

简称全称

Appendix

Appendix III AbbreviationCorresponding ChapterGRIDescriptionPrograms for upgrading employee skills andtransition assistance programsDiversity of governance bodies andemployeesIncidents of discrimination and correctiveactions takenOperations and suppliers at significant riskfor incidents of child laborOperations and suppliers at significant riskfor incidents of forced or compulsory labor

Care for Employees, Cohesion of NewTalentsCare for Employees, Cohesion of NewTalentsCare for Employees, Cohesion of NewTalentsCare for Employees, Cohesion of NewTalentsReciprocal Benefit and Shared Prosperity,Creating a Better New Life TogetherReciprocal Benefit and Shared Prosperity,Creating a Better New Life TogetherReciprocal Benefit and Shared Prosperity,Creating a Better New Life Together

New suppliers that were screened usingsocial criteriaNegative social impacts in the supply chainand actions takenAssessment of the health and safety impactsof product and service categories

Empowerment through Digital Intelligence,Innovation Leading a New FutureEmpowerment through Digital Intelligence,Innovation Leading a New FutureAppendix I 2024 Key Performance DataSheetRequirements for product and serviceinformation and labelingIncidents of non-compliance concerningmarketing communications

404-2GRI 405 Diversity and Equal Opportunity 2016405-1GRI 406 Anti-discrimination 2016406-1GRI 408 Child Labor 2016408-1GRI 409 Forced or Compulsory Labor 2016409-1GRI 414 Supplier Social Assessment 2016414-1414-2GRI 416 Customer Health and Safety 2016416-1GRI 417 Marketing and Labeling 2016417-1417-3

2024

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE(ESG) REPORTAppendix

No.15 Chuangye Road,High-tech Zone, Zhaoqing, Guangdong, China.86-758-3681267ir@jsjgcl.com

Jinsanjiang (Zhaoqing)Silicon Materials Co., Ltd.

Customized silicon materials| Create value for customers | Realize the dreams of employees | Contribute to society


  附件:公告原文
返回页顶