About This ReportAbout Nanshan AluminiumStatement from the Chairman
Topic: Deepening GlobalExpansion Strategy,Building a New "NanshanAluminium"Resource Empowerment, Chaining the FutureGreen Development, Harmonious CoexistenceCommunity Co-Development, Shared Growth
Governance ExcellenceBuilding BrillianceThrough SustainabilityESG Governance FrameworkStakeholder CommunicationESG Double Materiality AssessmentESG Impact, Risk and Opportunity ManagementCommitment to UN SDGs
Compliance asFoundationfor SustainableGrowth
Corporate GovernanceEthical OperationsRisk ManagementInformation Security & Privacy Protection
CONTENTS
AppendixReader Feedback Form
Craftsmanship andQualityInnovation DrivingDevelopment
Product QualityInnovation and R&DCustomer Service
People-OrientedBuilding an InclusiveWorkplaceEager to Attract TalentEmployee CareSafety Production
Natural HarmonyCo-creating a NewEcological EraResponding Climate ChangeEnvironmental ManagementProtecting NatureCircular Economy
Symbiotic SupplyChainBuilding a NewEcosystem Together
Responsible Supply ChainGiving Back to Society
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About This Report
In 2024, in accordance with theGuidelines No. 14 of Shanghai Stock Exchange for Self-regulation of Listed Companies-Sustainability Report(Trial), we renamed this report to the "Environmental, Social and Governance Report" (ESG Report). Prior to 2023, we had already published ESGdisclosures in the form of Environmental, Social and Governance Reports, Social Responsibility Reports, or Sustainability Reports. The 2024 editionthus marks the 15th ESG Report released by Nanshan Aluminium since its listing.
ReportDescription
This Report is the full version of the 15th Environmental, Social and Governance Report(hereinafter referred to as "ESG Report" or "this Report") issued by Shandong NanshanAluminium Co., Ltd.,
which is an annual report focusing on the management, practiceand performance of the Company in respect of environment, society and governance(ESG).
OrganisationalScope of theReport
The Report is about Shandong Nanshan Aluminium Co., Ltd. and its subsidiaries,including Longkou Donghai Alumina Co., Ltd. (hereafter referred to as "AluminaCompany"), Nanshan Aluminium Branch of Shandong Nanshan Aluminium Co., Ltd.(hereafter referred to as "Electrolytic Aluminium Company"), Nanshan AluminiumRolling New Material Co., Ltd. (hereafter referred to as "Aluminium Rolling Company"),Medium-thick Plate Branch of Shandong Nanshan Aluminium Co., Ltd. (hereafterreferred to as "Medium-thick Plate Company"), Yantai Donghai Aluminium Foil Co.,Ltd. (hereafter referred to as "Aluminium Foil Company"), Aluminium Profile Plant ofNanshan Aluminium (hereafter referred to as "Aluminium Pro?le Plant"), Yantai NanshanAluminium New Material Co., Ltd. (hereafter referred to as "Aluminium New MaterialCompany"), Longkou Nanshan Recycled Aluminium Co., Ltd. (hereafter referred to as"Recycled Aluminium Company"), Donghai Thermal Power Plant, American factory, andIndonesian factory. For details on the statistic scope of environmental data, please referto the footnotes in each chapter. In this Report, "we", "the Company" and "NanshanAluminium" all refer to "Shandong Nanshan Aluminium Co., Ltd.". Unless otherwisespeci?ed, all currencies mentioned in this Report refer to RMB.
Report TimeHorizon
The report covers the period from January 1st, 2024 to December 31st, 2024(hereinafter referred to as the "report period"), some dating back to previous yearsand covering the ?rst quarter of 2025.
Basis ofPreparation
Prepared with reference to theGuidelines No. 14 of Shanghai Stock Exchange forSelf-regulation of Listed Companies - Sustainability Report (Trial)and other relevantdocuments, this Report also considers the United Nations Sustainable DevelopmentGoals (UN SDGs), Morgan Stanley Capital International Environmental, Social, andGovernance rating (MSCI ESG rating), and other rating indicators.
/ About This Report
Data Source& ReliabilityAssurance
The information and data disclosed in this Report are from statistical reports ando?cial documents of the Company and have been audited by relevant departments.The Company guarantees that this Report does not involve any false records andmisleading statements and will be liable for the authenticity, accuracy and integrity ofthe contents. This Report is available in both Simpli?ed Chinese and English versionsfor readers to consult. In instances where there may be confusion or differences ininterpretation between the two texts, the Simplified Chinese version shall prevail.Should there be any disparities between the full and summary versions of the ESGreport, the former shall prevail.
Con?rmationand Approval
This Report was audited and approved by the Board of Directors and senior leadershipof the Company on March 23th, 2025.
ReportPreparationProcess
The preparation process of this Report covers establishment of work team, datacollection, interviews with and questionnaire inquiry on stakeholders, frameworkdetermination, report preparation, report design, audit by department and seniormanagement, etc.
ReportAcquisition
This Report is available for consulting and downloading on the Company'swebsite:www.600219.com.cn.For further inquiries, comments or suggestions on this Report, please contact theCompany by: Email: 600219@nanshan.com.cnTel.: 0535-8666352Address: Nanshan Village, Dongjiang Town, Longkou, Yantai City, Shandong Province
About Nanshan AluminiumSince our establishment, we have closely aligned with the steady and positive development trends of China's aluminium processingindustry. Leveraging our strengths in product quality and technological expertise, we have deepened our presence across aviation,automotive, rail transportation, shipbuilding, and other diversi?ed sectors. By upholding innovation while embracing collaborativetransformation, we contribute "Nanshan wisdom" to drive the high- quality, e?cient growth of China's aluminium industry.
Nanshan Aluminium Industrial Chain Overview
Flat-rolled Product
Section
AluminaElectrolytic AluminiumElectric Power
Recycled Aluminum
Melting & Casting
/ About Nanshan Aluminium
Industrial Development
We adhere to a development strategy of "premium positioning + integrated industrial chain". Built on a comprehensive aluminiumprocessing value chain, encompassing thermal power, alumina, aluminium electrolysis, casting, aluminium pro?les/hot rolling-cold rolling-foil rolling, and scrap aluminium recycling (renewable utilisation), we fully leverage synergistic e?ects across industrialsegments to extend value-added opportunities. This enables us to advance steadily on the path of high-end manufacturing.
Industrial Aluminium Pro?leRail Tra?cContainer
System Doors & WindowsCivil Building Materials
Aviation Pro?les
Deep-processing
Aerospace Parts
Hot Rolling
Cold Rolling
Auto Sheet, Can Stock
Aviation Sheet
Foil RollingAseptic Packaging,Battery FoilAviation Plate
In 2024, we capitalised on the strengths of our integrated industrial chain while pursuing balanced growth through organicexpansion and strategic external initiatives. While continuing to optimise production capacity for high-value-added productssuch as automotive and aviation sheets, we advanced downstream extension plans for overseas projects, including the aluminafacility at our Indonesian plant. By re?ning and diversifying our premium aluminium o?erings, we have energised our long-termdevelopment trajectory.Our Premium Aluminium ProductsLeveraging our forward-development capabilities in lightweight automotive aluminium solutions, we have aligned with market demandsto steadily advance Phase III of our automotive sheet project. Through breakthroughs in R&D innovation, product certi?cation, marketexpansion, and capacity scaling, we are systematically building a platform-driven portfolio of automotive sheet products.Automotive Sheets
To address critical core technology challenges, we conduct foundational, forward-looking, and innovative research. Our inclusion inthe approved supplier lists of leading domestic aircraft manufacturers, such as COMAC, reinforces our role in advancing the aviationplate industry.
Aviation Plates
We are targeting the new energy and aseptic packaging markets, consolidating our packaging industry foundations whilestrategically positioning ourselves in high-tier new energy product segments from a strong starting point.
New Energy Market: As a key domestic supplier of high-performance battery foils, we pursue niche market breakthroughs through
technological upgrades, delivering high-margin products to establish a premium brand presence.
Aseptic Packaging Market: Capitalizing on our dominant position in China's aseptic packaging sector, we maintain long-termstrategic partnerships with multinational ?exible packaging corporations.
Aluminium Foil Products
We adhere to a dual-track development strategy—high-end domestic manufacturing and global expansion—simultaneouslystrengthening our competitive edge in can body and end stock across both domestic and international markets.
Domestic Market: We solidify our leadership by nurturing strategic alliances with industry giants such as COFCO, ORGPackaging, Shengxing Paci?c and Baosteel.
International Market: Focusing on competitive pricing, supply reliability, and service excellence, we expand into emerging marketswhile collaborating with clients to accelerate technological innovation and develop market-driven premium products.
Can Body & End stock
By extending our aluminium processing chain, we collaborate with downstream partners and academic institutions to advance R&Din "scrap aluminium - pre-treatment - recycled aluminium - re-alloying - new aluminium alloy products" technologies.
Recycled Aluminium Products
We expand the application scope of industrial pro?les, targeting sectors like shipping containers, while developing mid-to-high-endaluminium pro?les for aerospace, high-speed rail, and automotive manufacturing.Industrial Aluminium Products
As a renowned building materials provider, we precisely identify market needs, actively penetrate home renovation retail andsystem door/window markets, earning strong recognition from downstream clients.Architectural Aluminium Products
Our current primary production bases encompass alumina production facilities, aluminium electrolysis plants, aluminium rollingmills, plate processing complexes, Donghai Thermal Power Plant, and recycled aluminium facilities. We have branches or o?cesin Beijing, Shanghai, Shenzhen, Nanjing, Changchun, etc. Along with subsidiaries or affiliates in the United States, Australia,Singapore, Germany, Indonesia, and other countries.Looking ahead, we will continue to keep pace with global trends, consolidating our traditional industrial strengths whileaccelerating downstream value chain extensions. By targeting and expanding into overseas markets such as Indonesia, we aim toestablish a dual-track domestic- international development framework, generate new impetus for high-quality growth.
Corporate Strategy
Building on decades of technical expertise and robust production capabilities, we adhere to a development philosophy of"consolidating core product strengths, advancing premium product offerings, and driving green industrial practices". Rooted inour traditional leadership in can stock materials, we are expanding into high-end automotive and aviation sheet markets to build adiversi?ed product portfolio. Simultaneously, we deepen and continuously extend strategic collaborations with downstream partners,aligning with green and high-end trends to embed quality-driven innovation into our long-term growth.With a global vision, we are resolutely implementing overseas aluminium industry base strategies, driving overseas project expansionsand regional market penetration to broaden our operational horizons. During the reporting period, our 2-million-ton alumina projectin Indonesia achieved full production capacity, demonstrating strong and sustained pro?tability.
/ About Nanshan Aluminium
RecognitionIn 2024, Nanshan Aluminium continued to pioneer innovation and explore sustainable models for the aluminium industry. Our outstandingachievements in environmental, social, and governance practices have earned broad acclaim and support from stakeholders across society.
Shandong Provincial Department of Industry and
Information Technology
China Non-ferrous Metals Industry Association
China Federation of Industrial Economics (CFIE)China Non-ferrous Metals Industry Association
China Quality Certi?cation Centre (CQC)
Magazine:
New Fortune
Newspaper:
Securities Times
Newspaper:
Securities Times
Magazine:
Directions & Boards
Magazine:
New Fortune
TV Program:
Roadshow China
Newspaper:
China Times
Ranked 11th among the "Top 100 ComprehensiveEnterprises in Shandong Province"
The project "Development and Promotion ofNational Standards for Recycled Aluminium RawMaterials" won the Second Prize for Science andTechnology in the Nonferrous Metals Industry (2024)
Eighth China Industrial Grand Award –
Commendation Award
CQC Excellence in Quality Award19th China Listed Companies Golden Roundtable
Award – "Outstanding Board of Directors"
Best Investor Relations Relations (JDM Awards)
Tianma Award – Investor Relations Management
Outstanding IR Awards – "Best Value Creation" &
"Best ESG"
Sunshine Board Secretary Award
Outstanding Case Award for Environmental
Management Practices
Best ESG Disclosure Award
The patents, including "Key Technologies andEngineering Applications for Residual Stress Controlin Large-Scale Aviation Aluminium Alloy Plates"
and "Green Recycling Technology and Equipment
for High-End Aluminium Alloys (Invention)", wonthe First Prize for Science and Technology in theNonferrous Metals Industry (2024)
Key 2024 Honours and Awards of Nanshan Aluminium
China Association for Public Companies(CAPCO): "Outstanding Case Award for ESG
Environmental Management Practices"
CAPCO: "2024 Outstanding Practice Casesfor Board O?ces of Listed Companies"
New Fortune:"Gold Board Secretary"AwardChina Securities Journal: Golden Bull Award"ESG Top 100 Companies"
CAPCO: 2024 Exemplary Board O?ce Practices
Stockstar: "ESG New Benchmark Enterprise Award"CAPCO: "Outstanding Case for ESG
Environmental Management Practices"
/ About Nanshan Aluminium
Statement from the Chairman
The year 2024 marked a critical phase in advancing the objectives of China's 14th Five-Year Plan. Against the backdrop ofaccelerating global green transformation, the deepening implementation of China's "Carbon Peaking and Carbon Neutrality"strategy, and the dual challenges of tight supply - demand balance in the aluminium industry and rising international tradebarriers, Nanshan Aluminium remained steadfast in aligning with the nation's development priorities of "premiumization,digitalization, and green transition". Adhering to our strategic pillars of "innovation-driven growth, high-end manufacturing,and intensive processing", we focused on "stabilizing and strengthening supply chains while enhancing quality and e?ciency".We actively integrated into China's carbon peak initiatives and the national carbon market development, accelerating theestablishment of a full-lifecycle green closed loop encompassing "alumina - electrolytic aluminium - high-end manufacturing -recycled aluminium". At the intersection of "Carbon Peaking and Carbon Neutrality" responsibilities and market opportunities,we fortified our competitive edge through technological breakthroughs and reshaped the industrial ecosystem with greenintelligent manufacturing. Our efforts yielded transformative outcomes that balanced economic performance with socialvalue, earning us the "ESG New Benchmark Enterprise Award" for the second consecutive year byStockstarand recognitionas an "Outstanding Case for ESG Environmental Management Practices" by China Association for Public Companies (CAPCO)—contributing a Chinese blueprint to global aluminium industry sustainability.
Reflecting on 2024, the construction and growth of our Indonesiaplant stood out as a milestone, solidifying our leadership inglobal expansion. Our 2-million-ton alumina project in Indonesiahas achieved full-capacity production, with a new 2-million-tonexpansion now underway. This initiative not only elevates ourcompetitiveness in the global aluminium value chain but alsoinjects robust momentum into Indonesia's local economy. Throughlocalized operations, Nanshan Aluminium leverages Indonesia'sabundant bauxite and coal resources while creating substantialemployment opportunities, enabling efficient resource utilizationand sustainable development. This has spurred synergistic growthacross upstream and downstream industries. Our internationalstrategy has not only unlocked new growth avenues for the companybut also set a benchmark for Chinese enterprises deepening theirpresence in Southeast Asia.We have consistently strengthened our ESG managementsystem. We have established a well- defined ESG governanceframework, laying an organizational foundation for enhancing ourESG performance. In 2024, we introduced a double materialityassessment, identifying 24 sustainability topics critical to ouroperations. Among these, responding climate change, product andservice quality & safety, and environmental compliance managementemerged as issues of dual materiality, while circular economy andtechnological innovation were recognized as ?nancially material. Wefully acknowledge the pivotal role these topics play in our businessgrowth and their far-reaching impacts on the economy, society, andenvironment. By integrating ?nancially material ESG topics into ourinternal management framework and embedding risk managementinto daily operations and strategic decision- making, we ensurecomprehensive implementation of related initiatives, solidifying thefoundation for long-term sustainability and success.Compliance is the lifeline of our high-quality development.Guided by the core philosophy of "law- based governance andethical operations", we have built a robust compliance managementsystem spanning the entire value chain, anchored in our corporate
governance structure. We reinforce an anti- corruption culturethrough integrity training, monitoring mechanisms, and a zero-tolerance disciplinary system. Digital tools empower precise riskidenti?cation and management, while our ISO 27001 certi?cation ininformation security safeguards corporate and personal data.Quality is our unwavering priority. We have implemented arigorous quality management system with quantifiable targets,ensuring end-to-end control from raw materials to ?nished products.Building on the ISO 9001 framework and industry-leading standards,we enforce a full-lifecycle quality management protocol coveringprocurement, production, and delivery. Smart and digital systemsenable granular process monitoring and real-time traceability,eliminating potential defects at the source to guarantee consistentproduct performance. Concurrently, we maintain open channels forcustomer feedback, continuously elevating service experiences andsatisfaction.We remain steadfast in our strategic orientation of "innovation-driven development, premium manufacturing, and precisionprocessing". Leveraging our globally competitive integratedindustrial chain spanning from alumina and electrolytic aluminiumto high-end manufacturing, we have established a comprehensiveR&D system centred around our national-level technology centrethat deeply integrates industry, academia, and research. This hasenabled us to assemble a specialized talent team led by top industryexperts. Through sustained increases in R&D investment, we haveachieved breakthrough advancements in high-end aluminiumproducts for the aviation, automotive, and rail transportation sectors- successfully transitioning from being a technology follower tokeeping pace with global leaders, and ultimately emerging as anindustry frontrunner.We ?rmly establish the business philosophy of "green, energy-saving, emission reduction and efficiency". In 2024, aligningwith China's "Carbon Peaking and Carbon Neutrality" goals andglobal low-carbon trends, we integrated climate considerations
into corporate governance and strategic planning. We formulatedtheGreenhouse Gas Emission Targets and Implementation Plan,defining near-to-mid-term emission reduction targets per unitproduct, along with concrete pathways and measures. Furthermore,we enhanced our environmental management framework toensure full compliance with local regulations across all operations,minimizing ecological footprints throughout production.We innovate and implement green and low-carbon productionand operation mode. The application and development of circulareconomy in the aluminium industry chain is emphasized. Byadvancing projects such as high-grade recycled aluminium closed-loop utilization, we have established a sustainable productionsystem that enhances aluminium alloy recycling e?ciency throughtechnological innovation and resource integration. This ensuresoptimal resource utilization from raw material procurementand processing to product recycling and reuse. Our completedhigh-quality recycled aluminium project transforms automotivemanufacturing scrap and used beverage cans into premium alloymolten aluminium, which is directly supplied to downstreampartners. This initiative drives energy conservation, emissionreduction, and cleaner production throughout the industrial chain."Talent is the foremost resource" remains our core philosophy.We are committed to building a global talent hub for thealuminium industry. By implementing a comprehensive workplacesafety responsibility system and incentive mechanisms for middle-to-senior management, we have forti?ed the foundation of corporatehealth and safety. Through optimized compensation structures,enhanced career development pathways, and robust skills training,we provide employees with a platform to "grow with the companyand advance with the industry". Nanshan Aluminium is not onlyan industry leader but also a trusted "career partner", empoweringevery individual to realize their value and aspirations in the era ofgreen intelligent manufacturing.
We steadfastly uphold our mission to "share developmentalachievements with society." Integrating sustainability into fulllifecycle supply chain management, we collaborate with upstreamand downstream partners to build a green responsibility ecosystem.With the vision of a "zero-carbon supply chain," we empowersuppliers in their low-carbon transitions, jointly setting industrybenchmarks. Concurrently, we actively contribute to communitydevelopment, ful?lling our responsibilities as a corporate citizen.In 2024, guided by China's "Carbon Peaking and Carbon Neutrality"strategy, Nanshan Aluminium emerged as a global leader in greencompetitiveness. Our Indonesia plant has expanded Belt and RoadInitiative collaborations, while breakthroughs in recycled aluminiumtechnologies are reshaping industrial ecosystems. Through high-end intelligent manufacturing, we strengthened national resourcesecurity, delivering balanced economic and social outcomes. In2025, as global aluminium industry transformation acceleratesamid deepening decarbonization and shifting trade dynamics,we will align closely with national strategies—grounded in greendevelopment, driven by innovation, and propelled by openness.We will deepen zero-carbon transitions across the entire valuechain, elevate our Indonesia plant as an international cooperationexemplar, accelerate domestic substitution of aviation and newenergy materials, overcome critical technology bottlenecks, andbuild a global recycled aluminium resource network to export "ChinaStandards" for green aluminium.Even mountains and seas cannot distance people with commonaspirations. We will retain our pioneering spirit and relentless driveto collaborate with global partners in forging sustainable futures.Together, we will elevate China's stature in the global aluminiumindustry and propel national industry from "manufacturing strength"to "innovative leadership" with Nanshan's unwavering contribution!
Chairman of Nanshan Aluminium
Lyu Zhengfeng
/ Statement from the Chairman
/ 2024 Environmental, Social and Governance Report
Deepening Global ExpansionStrategy, Building a New "NanshanAluminium"
From barren marshland in 2015 to a modern industrial complex today, Nanshan Aluminium has authoredan extraordinary narrative of growth—transforming nothingness into strength through visionary resolveand operational excellence. With foresighted planning, we capitalized on Indonesia's abundant bauxiteand energy resources to establish a fully integrated industrial chain spanning ports, power facilities,alumina production, and electrolytic aluminium operations.In Indonesia, we adopted green production processes and renewable energy, embracing low-carbonprinciples while generating substantial employment opportunities and supporting community welfareinitiatives. This multi-dimensional approach has delivered economic, environmental, and social synergies.We aspire for the Indonesia facility to serve not only as a hallmark of our global strategy but also as a vitalbridge for China-Indonesia economic collaboration, designed to bene?t broader populations.
Topic
Nanshan Aluminium/ 2024 Environmental, Social and Governance Report
1515
/ Topic: Deepening Global Expansion Strategy, Building a New "Nanshan Aluminium"
/ 2024 Environmental, Social and Governance Report
Resource Empowerment, Chaining the FutureAs a pivotal node of the Belt and Road Initiative in SoutheastAsia, Indonesia has emerged as a critical hub for globalaluminium industry development, leveraging its unparallelednatural resources and strategic geographic position. With 1.9billion tonnes of bauxite reserves (accounting for over 70% ofSoutheast Asia's alumina capacity) and 37 billion tonnes of coalreserves (ranked third globally), Indonesia offers exceptionaladvantages for vertical integration in alumina production.Recognizing this potential, we proactively aligned withChina's Belt and Road Initiative to establish alumina projectsin Indonesia. This initiative not only secures stable resourcesupplies for our operations but also fortifies the sustainabledevelopment of China's aluminium industry.Since launching the Bintan Alumina Project, we invested inestablishing PT Bintan Alumina Indonesia (BAI) and developedthe Bintan Nanshan Industrial Park through our Singapore-based overseas entity. In October 2017, the park was officiallydesignated as the Galang Batang Special Economic Zone by theIndonesian government—the nation's 12th Special EconomicZone and the first managed by a Chinese enterprise. Thismilestone solidified our localized operational capabilities inIndonesia.
To date, we have successfully commissioned a 2-million-ton annual production capacity alumina plant in Indonesia,complemented by supporting infrastructure including powerplants, coal gasification facilities, and a port with 20-million-ton annual throughput. These developments optimizeglobal resource allocation and elevate our internationalcompetitiveness. By directly leveraging Indonesia's abundantbauxite and coal resources, we achieve cost-efficient aluminacapacity expansion, signi?cantly enhancing pro?tability and riskresilience.Our globalization strategy has evolved from product exports tocapacity exports and ultimately localized operations—markingour entry into the "Globalization 3.0" phase. This strategicprogression not only unlocks new growth avenues but alsosets a benchmark for Chinese aluminium enterprises in globalexpansion. By capitalizing on Belt and Road opportunities, weactively advance international production partnerships, exportChina's advanced capacities, equipment, and technologies, andinject renewed vitality into sustainable development across theglobal aluminium industry.
Nanshan Aluminium/ 2024 Environmental, Social and Governance Report
Green Development,Harmonious Coexistence
Guided by the philosophy of "Green Development, Harmonious Coexistence", we have signi?cantly reduced energy consumptionand carbon emissions through the adoption of internationally advanced production technologies and clean energy solutions,achieving e?cient resource utilization and environmentally sustainable development. From implementing green productionprocesses and renewable energy plans to e?ciently treating wastewater and emissions, and recycling solid waste, our Indonesiaplant demonstrates a profound commitment to environmental stewardship at every operational stage. The plant strictly complieswith local Indonesian environmental regulations, conducts regular environmental audits and assessments, and continuouslyimproves environmental performance, setting a benchmark for green transformation in the global aluminium industry.Environmental ManagementOur Indonesia plant rigorously adheres to local environmental laws and regulations. We have established and enforcedinternal policies such as theEnvironmental Protection Management System, continuously refining our environmentalgovernance framework. A dedicated environmental management structure is in place, with the Safety and EnvironmentalProtection Department overseeing compliance, conducting inspections, and ensuring accountability. Regular environmentalaudits and performance evaluations further drive continuous improvement, securing the project's sustainable development.
Environmental Audits
and Assessments
To address the risks associated with sustainability, our Indonesia plant has set environmental short-, medium- andlong-term environmental objectives and conducts relevant performance appraisals, linking the results to seniormanagement's compensation performance.
Environmental Management Objectives
Atmospheric Pollutants: ParticulateMatter (PM), Nitrogen Oxides (NOx),Sulphur Dioxide (SOx), etc.By 2025, reduce SOxemissionintensity by
%
compared tothe 2022 baseline yearBy 2025, reduce NO
x
emissionintensity by
%compared tothe 2022 baseline yearBy 2025, reduce PM emissionintensity by
%
compared tothe 2022 baseline year
Wastewater Treatment
%industrial wastewater recycledinto production systems
%compliance discharge rate fordomestic sewageBy 2025, maintain wastewatergeneration intensity at or below2023 baseline levels
Solid Waste
%proper disposal rate for solidwasteBy 2025, reduce solid wastegeneration intensity by
%compared to the 2022
The biannual PKL-RPL (Environmental Management and MonitoringPlan) was carried out as scheduled and the monitoring data werecompliant in all periods.Monthly inspections of wastewater and air emissions by accreditedthird-party agencies, with all tested parameters meeting regulatoryrequirements.
ANDAL (Environmental Impact Analysis Report).
/ Topic: Deepening Global Expansion Strategy, Building a New "Nanshan Aluminium"
/ 2024 Environmental, Social and Governance Report
Green & Low-Carbon
Energy-saving and decarbonization upgrades in the non-ferrous metals industry are pivotal to achieving global carbon goals. Wedrive comprehensive energy conservation and emission reduction through three core pathways: energy e?ciency improvements,energy reuse, and renewable energy substitution.
We employ electrostatic precipitators, baghouse ?lters, and other technologies to treat atmospheric pollutants such as dustand particulate matter, reducing their emission levels and mitigating impacts on local air quality. Concurrently, all wastewatergenerated during production and rainwater collected from workshop perimeter drains undergo treatment before beingpumped back into production systems via water recycling infrastructure, striving for zero discharge of production wastewater.Furthermore, we implement targeted treatment measures for different waste types, ensuring compliance while minimizingenvironmental impacts on surrounding ecosystems.
Red mud, a primary by-product of alumina production, is managed under strict compliance with localenvironmental regulations such asRegulations on the Management Procedures and Requirements for Hazardousand Toxic Waste. At our Indonesia plant, we employ a dry stacking method for red mud disposal. Through ?lterpressing and sun drying, we reduce moisture content to minimize environmental contamination risks and enhancedam foundation stability. Water spraying is implemented to suppress dust, ensuring environmental safety.Additionally, we conduct regular emergency drills to enable swift response measures—such as rescue operationsduring dam failure scenarios—to minimize environmental damage and casualties. The plant has establisheddetailed dam failure prevention and mitigation protocols, including adjusting discharge outlets, mobilizingemergency rescue teams, and deploying engineering machinery and geomembranes to seal breaches. As of theend of the reporting period, we are collaborating with partners to develop red mud reuse projects, advancingsustainable resource utilization.
Red Mud Disposal at Indonesia Plant
Renewable Energy Substitution
Implementing clean energy projects to progressively reduce fossil fuelreliance and accelerate low-carbon transition
Energy Reuse
Maximizing energy reuse through waste heat recovery and cascadeutilization systems to minimize energy waste
Energy E?ciency Improvements
Optimizing processes, upgrading equipment, and retro?tting facilities toenhance energy utilization e?ciency
Nanshan Aluminium/ 2024 Environmental, Social and Governance Report
Leveraging renewable energy is pivotal to Nanshan Aluminium's low-carbon transition. In 2024, our Indonesia plantinitiated a clean energy development plan by integrating photovoltaic (PV) resources with grid peak-shaving capacity. Short-term e?orts include deploying PV systems across approximately 30 hectares of available land, with plans to progressivelyincrease renewable energy adoption in alignment with future industrial park expansions.
Clean Energy Utilisation
During the reporting period, the Indonesia plant established a Greenhouse Gas Task Force, completing energy-sectorcarbon inventories for six captive power plant units and ?ve diesel generators. With third-party support, we ?nalizedfeasibility studies on greenhouse gas reduction and carbon trading, alongside an Emission Monitoring Plan for the plant.Detailed greenhouse gas data are outlined in the "Responding Climate Change" section.
Carbon Inventory & Tracking
We minimize energy loss and waste across production-to-consumption cycles, enhancing efficient and rational energyutilization to reduce greenhouse gas emissions. As a critical approach to energy conservation in the aluminium industry, weimplement cascade waste heat recovery from alumina calcination furnaces, e?ectively reducing steam consumption.
Energy Reuse
Alumina Calcination Furnace Waste Heat Recovery
Based on operational data analysis, full-capacity waste heat recovery from both furnaces achieves annual steamsavings of 40,195 tons. Calculated at a standard coal consumption rate of 108 kg per tons of steam, this translatesto 4,341 tons/year of standard coal saved.
We continuously enhance energy efficiency and reduce consumption through process optimization, equipmentupgrades, and facility retrofitting. This includes implementing the Alumina Evaporation Feed Flash Process Retrofitto improve thermal efficiency in evaporation processes and lower steam usage. Additionally, our Indonesia plant'scaptive power plant has adopted coal gasi?cation ?y ash co-?ring to increase the co-?ring ratio, thereby reducing coalconsumption.
Process Optimization
Power Plant Boiler EconomizerSoot Blower Retro?t
Reverse Preheating System for Steam TurbineThree-Stage Extraction Heating Pipes
Improved boiler efficiency by approximately
1.6%, saving 7,360 tons/year of standard coal.
Optimized cylinder preheating control, achievingannual savings of 10.8 tons of standard coal perunit and additional power generation of 37,500
kWh per unit, thereby enhancing operationale?ciency and reducing energy consumption.
/ Topic: Deepening Global Expansion Strategy, Building a New "Nanshan Aluminium"
/ 2024 Environmental, Social and Governance Report
Community Co-Development, Shared GrowthFriendship, which derives from close contact between peoples, holds the key to sound state-to-state relations. We steadfastlyuphold our corporate philosophy of "openness, integration, coordination, and development", alongside a people-centricmanagement approach. We actively ful?l social responsibilities to deliver tangible bene?ts to local communities.
Localised Talent DevelopmentThroughout recruitment and employment practices, we respect Indonesian cultural norms and rigorously prohibit discriminationbased on ethnicity, religion, gender, age, marital status, or other factors, as well as the use of child or forced labour. We organize jobfairs and campus recruitment drives to boost local employment.In 2024, our Indonesia plant partnered with regional labour authorities to host a large-scale comprehensive job fair, integratinglocal resources to bridge employers and job seekers efficiently. This initiative deepened collaboration with universities andtechnical institutions, with plans to expand multi-level school-enterprise cooperation projects in diverse formats.
Participation in Local Recruitment EventCampus Recruitment Programs at Indonesian Universities
Strengthening local talent development is the driving force for our sustainable growth in Indonesia. Our Indonesia plant activelyexplores pathways for rapid skill advancement among local employees. We organise professional training programmes in China forIndonesian sta?, pairing them with experienced Chinese mentors through "apprenticeship initiatives" to build skill enhancementplatforms, cultivating a large pool of local technical and managerial talent.
Nanshan Aluminium/ 2024 Environmental, Social and Governance Report
In 2024, our Indonesia plant significantly enhanced Sino-Indonesian collaboration and integrationthrough cultural exchange and skills development. The plant dispatched 72 Indonesian employees toour headquarters in China for systematic training. This cultural exchange programme not only improvedparticipants' Mandarin pro?ciency and understanding of traditional Chinese culture but also strengthenedtheir adaptability in cross-cultural environments. Trainees acquired advanced technical skills, fosteringa diverse, high-calibre talent pool for the company. These initiatives collectively elevated our globalcompetitiveness and achieved synergistic integration of culture and technology.
Indonesian Employees' Training in China
Group Photo of Sino-Indonesian Employee Fellowship
We prioritise employee well-being by providing complimentary comfortable dormitories and fully equipped gyms,fostering a supportive living environment and healthy workplace. Our initiatives ensure holistic care for employees'physical and mental health, embodying our people-centric management philosophy and enduring commitment tosta? welfare.
Nanshan Aluminium Indonesia Plant's First Swimming Competition
/ Topic: Deepening Global Expansion Strategy, Building a New "Nanshan Aluminium"
/ 2024 Environmental, Social and Governance Report
Occupational Health & SafetyOur Indonesia plant strictly complies with Indonesian regulations includingOccupational Health and Safety in the Work EnvironmentandWorkplace First Aidfor Occupational Injuriesissued by the Ministry of Labour. We have establishedmanagement systems such as theWork
Safety Responsibility SystemandWorkSafety Inspection Protocolto standardise safety practices. New employees undergomandatory safety training at four levels: corporate, plant, workshop, and team.Only upon passing all levels are they certified for operational duties. Annual in-role safety training is conducted per plan to ensure every employee's operationalsafety.During the reporting period, our Indonesia plant obtained ISO 45001 OccupationalHealth and Safety Management System certification and actively promoted thedevelopment of safety management systems and internal audits through theOccupational Health and Safety Management System (SMK3) review task force.We closely collaborated with Indonesian government safety and environmentalregulators to ensure full compliance in safety, environmental protection,occupational health, and hygiene. These efforts have enabled us to BPJS
(BadanPenyelenggara Jaminan Sosial Ketenagakerjaan) Social Security ComplianceAward, Local Government Participation and Support for K3
(i.e., Safety, Health, andOccupational) Safety Activities Award, and many other awards.
ISO 45001 Occupational Health and
Safety Management System
BPJS (Badan Penyelenggara Jaminan Sosial Ketenagakerjaan) is Indonesia's Social Security Administering Body for Employment.
K3 stands for Keselamatan (Safety), Kesehatan (Health), and Kerja (Occupational) in Indonesian, representing the core elements ofworkplace safety management.
Nanshan Aluminium/ 2024 Environmental, Social and Governance Report
Community Co-Development
We encourage employees to actively engage in public welfare initiatives such as volunteer services and blood donation drives,consistently supporting educational assistance programs and community festival outreach activities. These e?orts spreadwarmth and compassion while enhancing local material, cultural, and living standards, fostering a positive image of Chineseenterprises in Indonesia. During heavy rainfall and ?ood disasters on Bintan Island, we promptly prepare and distribute foodand daily necessities to a?ected villagers. For Muslim traditional festivals, we conduct charitable outreach activities at elderlycare homes, orphanages, and neighbouring communities, delivering essential supplies.
A Combined Primary and Secondary School Donated by Usin Bintan Island
Charitable Outreach Programs
Blood Donation Activity with Indonesian Red Cross Bintan Branch
Recognizing local healthcare shortages, we collaboratedwith Indonesian authorities to build the non-profitGalang Batang Hospital, featuring nearly 20 departmentsincluding surgical outpatient clinics, CT rooms, ECGfacilities, ultrasound units, and operating theatres. Thisinitiative elevates regional medical standards and publicwell-being.
Construction of Galang Batang Public Hospital
Propelled by the Belt and Road Initiative, the PT Bintan Nanshan Industrial Park now thrives as a vital green channel for Sino-Indonesian trade and investment. It deepens bilateral collaboration in equipment, technology, standards, and management.Moving forward, we remain committed to strengthening our Indonesia operations, striving to become a benchmark forChina-Indonesia cooperation.
/ Topic: Deepening Global Expansion Strategy, Building a New "Nanshan Aluminium"
Governance Excellence
Building Brilliance ThroughSustainability
We have deeply integrated sustainability into our corporategovernance framework, advancing ESG governance practices. Weactively engage with stakeholders, proactively identify and manageESG risks, and lay a robust foundation for sustainable transformation,steering the company toward a green, low-carbon, and sustainablefuture.
/ Governance Excellence Building Brilliance Through Sustainability
The Chair of the ESG Committee is held by the company's Chairman, with Vice Chairs jointly appointed by Directors, Supervisors, DeputyGeneral Managers, and the Head of the Control Centre. Committee members consist of heads of departments and subsidiaries. Thisgovernance structure brings together multidisciplinary expertise, ensuring that decisions on sustainability strategic planning and initiatives aredeeply informed by industry trends and operational experience, enabling the formulation of actionable and e?ective work plans.Under the ESG Committee, nine dedicated ESG working groups are established to execute Committee resolutions, regularly review and updatemid-to-long-term sustainability goals within the management system, and e?ectively implement strategies. Each working group is co-led byheads of relevant departments or subsidiaries, forming e?cient collaborative mechanisms. We set annual objectives for each ESG topic andlink quality, environmental, occupational health, and safety performance to senior management compensation and evaluations.Through biannual communication between the ESG working groups and the Committee, we ensure comprehensive oversight of sustainabilityprogress, with major strategic matters elevated to the Board for review. During the reporting period, we engaged third-party institutions todeliver specialized training for ESG professionals and senior management on critical topics including ESG trends, green product development,climate change mitigation strategies, and ESG competency enhancement, ensuring alignment with global best practices.
Nanshan Aluminium ESG Governance Structure
Sustainability (ESG) Committee Governance Framework
We have established an ESG governance framework led by the Boardof Directors. Under the Board, we formed a Sustainability (ESG)Committee and publicly disclosed theSustainability (ESG) CommitteeOperating Guidelineson our o?cial website. These guidelines clearlydefine the organizational structure and responsibilities at all levels,ensuring systematic progress in sustainability initiatives.
1.1
ESGGovernanceFramework
Board of DirectorsSustainability (ESG) Committee
ESG Working Groups
As the highest authority on ESG matters, it is responsible for formulating, reviewing,and approving ESG-related policies, strategies, and objectives
To monitor ESG-related policies, regulations, standards, trends, and stakeholder demand
To assesses material ESG issues and provides advisory recommendations to theBoard for deliberation
To oversee ESG implementation, strategic execution, and progress toward goals,proposing improvements for subsequent phases
Nine specialized groups: Quality Assurance, Technological Innovation, Labor RightsProtection, Safety & Environmental Protection, Energy Conservation & EmissionsReduction, Information Security, Supply Chain Resilience, Business Ethics, CapitalMarket Engagement
Responsible for implementing the relevant resolutions of the Committee,regularly reviewing and updating the medium- and long-term planning milestonesfor the sustainable development of the management system, and e?ectivelyimplementing various implementation planSustainability (ESG) CommitteeQuality Assurance WorkingGroupTechnological InnovationWorking GroupSafety & EnvironmentalProtection Working GroupInformation Security WorkingGroupLabor Rights ProtectionWorking GroupSupply Chain ResilienceWorking GroupBusiness Ethics WorkingGroupCapital Market EngagementWorking GroupEnergy Conservation &Emissions Reduction WorkingGroup
Stakeholder Categories, Key Concerns, and Engagement Methods
We remain steadfast in fostering effective communication withstakeholders. In accordance with management systems such astheInformation Exchange, Consultation and CommunicationControl Procedures, we systematically conduct both proactive andresponsive stakeholder engagement. We have established diversi?edcommunication channels to regularly disclose corporate informationwith transparency, while enabling stakeholders to initiate directcontact through these platforms. Our key stakeholders encompassgovernment and regulatory bodies, investors and shareholders,suppliers, customers, research institutions, the public, and employees.
1.2
StakeholderCommunication
Stakeholder CategoriesKey ConcernsEngagement Methods
Government/Regulators
Compliance OperationsBusiness Ethics & Anti- CorruptionFair CompetitionEconomic Growth & Social DevelopmentGreen & Low-Carbon Transition &Capacity PlanningEnvironmental Compliance ManagementPollutant & Waste ManagementBiodiversity Protection
Information ReportingO?cial Document ExchangeInstitutional VisitsGovernment MeetingsRegular Corporate DisclosuresPolicy Brie?ngs
Investors/Shareholders
Compliance Operations Revenue PerformanceCorporate Governance & RiskManagement Business Ethics & Anti- Corruption Stakeholder Engagement Product & Service Safety & QualityTechnological Innovation
Shareholders' MeetingsCorporate Roadshows/ReverseRoadshowsPeriodic Reports & Earnings Brie?ngsInvestor Hotline & EmailSSE (Shanghai Stock Exchange)Interactive Platform
/ Governance Excellence Building Brilliance Through Sustainability
Stakeholder CategoriesKey ConcernsEngagement Methods
Suppliers
Fair CompetitionIndustry Standard SettingSupply Chain Management Development
R&D Capability EnhancementStrengthening Supply ChainManagement & CollaborationSupplier Support ProgramIndustry Engagement
Customers
Technological InnovationProduct & Service Safety & QualityData Security & Customer PrivacyProtectionGreen & Low-Carbon Transition &Capacity PlanningRenewable EnergySupply Chain Management Developments
Customer Feedback CollectionCustomer Complaint ResolutionCustomer Satisfaction Surveys
ResearchInstitutions
Science & Technology InnovationIndustry Standard SettingGreen & Low-Carbon Transition &Capacity planning
Industry-Academia- ResearchPartnerships
Society/Public
Driving Economic Growth & SocialDevelopmentSocial ContributionsPollutant & Waste ManagementBiodiversity Conservation
Government & NGO EngagementPublic Complaint Email
Employees
Employee Compensation & Bene?tsEmployee Development & TrainingOccupational Health & SafetyBusiness Ethics & Anti- Corruption
Sta? Representative MeetingsEmployee Training ProgramsEmployee Feedback Collection &ResponseInternal Whistleblowing Channels
In 2024, through questionnaire surveys conducted with internal and external stakeholders including investors, customers, suppliers,employees, and regulatory authorities, combined with analysis of our industry characteristics, development stage, business model,and value chain position, we identi?ed 24 sustainability topics relevant to our operations. Among these, responding climate change,product and service quality & safety, and environmental compliance management were determined to have double materiality.Additionally, circular economy and technological innovation were identified as financially material, while green & low-carbontransition and capacity planning were assessed as impact-material topics.We fully recognize the critical role these material topics play in business development and their profound implications for economic,social, and environmental outcomes. For financially material topics, this report provides analysis and disclosure structuredaround four core components: "Governance - Strategy - Impact, Risk and Opportunity Management - Metrics and Targets".
To effectively address challenges arising from internal and externalfactors, we have conducted a double materiality assessment inaccordance with theShanghai Stock Exchange Self- RegulatoryGuidelines for Listed Companies No. 14 - Sustainability Reporting(Provisional), theSustainability Reporting Guidelines, and the GlobalReporting Initiative'sGRI Standards 2021. This process identifiessustainability topics that may have financial materiality and impactmateriality for our company, establishing an issue database andimplementing double materiality assessment. Throughout theidentification and assessment process, we have fully incorporatedfeedback from key stakeholders, with the annual determinationresults being reviewed and approved by the Board of Directors.
1.3
ESG DoubleMaterialityAssessment
The materiality determination process of Nanshan Aluminium is as follows:
Materiality Assessment Dimensions
Materiality Issue Identi?cationMateriality Assessment & Prioritization
Impact Materiality:
De?nition: For positive impacts - determined by scale,scope, and likelihood; for negative impacts - evaluatedby severity, scope, likelihood, and irremediability.We establish thresholds to assess impact signi?canceand rank material issues.
Based on business operations and changes ininternal/external environments, with reference toregulatory requirements, industry standards, andstakeholder consultations, we identify potentialmaterial ESG issues.
Prioritization of identi?ed material issues isconducted based on expert opinions, peerbenchmarks, and feedback from management,investors, and employees.
Financial Materiality:
De?nition: For both positive/negative ?nancialimpacts - determined by continuity of resource useand relevance to sustainable operations.We set thresholds to evaluate ?nancial signi?canceand prioritize material issues.
/ Governance Excellence Building Brilliance Through Sustainability
The social contribution initiatives encompass public welfare activities such as rural revitalization.
Supply chain management includes two key aspects: supply chain security and equitable treatment of small and medium-sized enterprises.
In accordance with the topic selection recommendations in theSustainability Reporting Guidelines, our company does not involve technology ethicsand therefore has no material topics in this area.
Topic CategoriesTopic NamesTopic CategoriesTopic NamesCorporateGovernance
Compliance Operations
Social
Economic Growth & Social DevelopmentFair CompetitionSocial Contributions
Revenue PerformanceIndustry Standard SettingCorporate Governance & Risk ManagementSupply Chain Management Development
Business Ethics & Anti- Corruption
Environmental
Responding Climate ChangeStakeholder EngagementRenewable EnergySocial
Employee Compensation & Bene?tsGreen & Low-Carbon Transition & Capacity PlanningEmployee Development & TrainingEnvironmental Compliance ManagementOccupational Health & SafetyPollutant & Waste ManagementTechnological InnovationBiodiversity ProtectionProduct & Service Safety & QualityResource UtilizationData Security & Customer Privacy ProtectionCircular Economy
Nanshan Aluminium 2024 Materiality Issues Matrix
Material topics for 2024
Topics with impact materiality butwithout ?nancial materiality
Topics without ?nancialor impact materiality
Financial Materiality
Impact Materiality
Topics with ?nancial materialitybut without impact materiality
Topics with both ?nancialmateriality and impact materiality
Compliance Operations
Fair Competition
Technological InnovationCircular Economy
Resource Utilization
Responding Climate ChangeEnvironmental Compliance Management
Pollutant & Waste ManagementSocial Contributions
Industry Standard Setting
Renewable Energy
Supply Chain Management Development
Revenue PerformanceBusiness Ethics & Anti-Corruption
Corporate Governance &Risk ManagementStakeholder Engagement
Biodiversity Protection
Employee Compensation & Bene?ts
Product & Service Safety & QualityGreen & Low-Carbon Transition & Capacity Planning
Data Security & Customer Privacy Protection
Economic Growth & Social Development
Employee Development & TrainingOccupational Health & Safety
In accordance with theShanghai Stock Exchange Self-RegulatoryGuidelines for Listed Companies No. 14 - Sustainability Reporting(Provisional)andSustainability Reporting Guidelines, weconducted comprehensive ESG risk and opportunity assessmentsaligned with corporate strategy. Our four- dimensional approachenhances management capabilities to better seize opportunitiesand address challenges, creating long-term value for stakeholders:
(1) Impact evaluation; (2) Response measures formulation; (3)
Financial impact analysis; (4) Integration of sustainability risk andopportunity management into internal governance.For impact assessment, we analysed risks and opportunitiesacross three time-horizons
considering strategic development,industry characteristics, investment cycles and external policytrends. By incorporating stakeholder concerns, businessoperations and value chain impacts, we quanti?ed the likelihoodand magnitude of ESG risks/opportunities to determine theirmateriality to corporate performance.
To ensure the effectiveness of our management strategies, wehave established clear strategic objectives and correspondingmanagement actions for each identified issue, based on theESG double materiality assessment results and current internalmanagement practices. These measures integrate risk andopportunity management into operational responsibilities,minimizing the impact of ESG risks on both internal and externalstakeholders.We conduct ?nancial impact analyses to assess how ESG risks andopportunities may a?ect our ?nancial condition and operationalperformance, thereby mitigating potential adverse e?ects on our?nancial results from inadequate ESG risk management.For high-priority risks and opportunities, we have developedspecialized management systems and work?ows. In accordancewith our corporate governance framework, designated teams areauthorized to conduct regular monitoring and documentationof risk levels, as detailed in the "Integration into InternalManagement" section.
Based on the current stage of our development plan, we de?ne short-term as less than 1 year, medium-term as 1 to 5 years, and long-term asmore than 5 years.
The identification, assessment, management and oversight ofsustainability-related risks and opportunities are essential safeguardsfor our high-quality development. During the reporting period, fortopics identified as potentially financially material to our businessoperations, we systematically analysed their potential impacts, risksand opportunities on the company. Focusing on our core businessand commercial model, we established management strategies foreach ESG risk and opportunity to strategically fulfil our long-termsustainable development mission.
1.4
ESG Impact,Risk andOpportunityManagement
Impact Assessment
/ Governance Excellence Building Brilliance Through Sustainability
Guided by ourRisk and Opportunity Control Procedures,we prioritize integrating financially material ESG topics intoour internal management framework. We have establishedcomprehensive ESG risk and opportunity managementprocesses, including regular review and updates of identi?edrisks and opportunities, monitoring of managementprocedures, and implementation of targeted measures tomitigate operational impacts. These practices are embedded indaily operations and strategic decision- making to strengthenour competitiveness and ensure full execution of sustainabilityinitiatives, building a solid foundation for long-term success.
In managing climate-related risks and opportunities, wefollow the TCFD (Task Force on Climate- related FinancialDisclosures) framework. For financially material topics suchas technological innovation, circular economy, environmentalcompliance, and product/service safety and quality, specificmanagement approaches are detailed in the "Product Quality","Innovation and R&D", "Environmental Management", and"Circular Economy" sections respectively.
Integration into Internal Management
ESG Risk and Opportunity Management Procedure
Review of Risks andOpportunities checklists
Risk and OpportunityAnalysis
Risk and OpportunityManagement EvaluationAnalyze ESG risks andopportunities based ondomestic and internationalpolicy trends and industrypeer practices.Engage in discussions withresponsible departmentsregarding the identi?ed ESGrisks and opportunities.
De?ne company- speci?crisks and opportunitiesthrough industry analysisand input from stakeholdersand external experts.Develop managementstrategies andimplementation plans toaddress these risks andopportunities.
Assess the likelihood,impact, adaptability, andresilience of identi?edrisks and opportunitiesto prioritize managementstrategies.Conduct regular reviews toensure alignment with thecompany's current situation.
/ 2024 Environmental, Social and Governance Report
We are dedicated to aligning our material business issues withthe United Nations Sustainable Development Goals (UN SDGs) tocontribute to global sustainable development.
1.5
Commitmentto UN SDGs
Promote electricity decarbonization through renewable energy procurement andapplicationInstall 96MW photovoltaic systems across domestic plants (107 million kWhgenerated in 2024), with plans for PV expansion in Indonesia
Provide comprehensive care and bene?ts including various subsidies, accommodation, andrecreational facilities to enhance employee happiness and satisfactionPrioritize occupational health and safety with regular preventive health checkups
Establish a "Government-Industry-Academia-Research" support systemwith universities and research institutes to promote green innovation in theindustryLeverage Nanshan Training Institute's resources to develop customizedtraining programs for skill, leadership, academic quali?cations, and obtainprofessional certi?cations
Implement "multi-purpose, graded, and cascaded" water usageprinciples to enhance water use e?ciencyUse desalination equipment to produce freshwater for power plants,reducing freshwater consumptionContinuously monitor pollutant emissions to achieve 100%compliant wastewater discharge
Reject gender discrimination in hiring and adhere to equalemployment and promotion principlesBuild special facilities like clinics, nursing rooms, and maternitylounges to support female employees
Nanshan Aluminium/ 2024 Environmental, Social and Governance Report
Conduct climate risk and opportunity assessments, actively exploring ways to integratethese factors into corporate strategic planningDevelop climate risk emergency response plans for operational sites and procurecorresponding climate risk mitigation equipmentPerform internal carbon audits and based on evaluation results, formulate and publiclydisclose theGreenhouse Gas Emission Targets and Implementation Plan, specifyingclear emission reduction targets along with detailed pathways and measures
Implement responsible raw material procurement in accordance with the ASI AluminiumIndustry Management Initiative, strictly refusing to purchase any con?ict mineralsImprove aluminium scrap recycling rates through waste material recovery and reuseinitiativesAchieve full lifecycle management of hazardous chemicals and all waste materials,ensuring 100% compliant disposalPeriodically disclose corporate sustainability-related information and practices
Actively engage in in-depth communication with indigenouscommunities and local institutions to ensure the rationaldevelopment and utilization of mineral resources, water resources,and other local natural resources based on full respect and priorconsent from indigenous peoplesOrganize a volunteer ?re brigade at the Indonesia plant to participatein local community wild?re prevention and response e?orts
Build multicultural teams with zero tolerance fordiscrimination based on race, gender, religion and so onProvide equal employment opportunities duringIndonesia operations under Belt and Road Initiative
Strengthen technological innovation through improvedR&D infrastructure and talent developmentDeepen integration between IP management and productR&D to facilitate patent commercialization
Continuously improve working conditions and create a safeand secure working environment for all workersEliminate child labour and forced labour practices at thesource and take remedial measures for labour violationsthat have occurredContinuously promote localized hiring to provide jobs forresidents in the locations where we operate and contributeto the development of the local economy
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/ Governance Excellence Building Brilliance Through Sustainability
Compliance asFoundation
for Sustainable Growth
We consistently regard compliance operations as the lifeline ofhigh-quality corporate development. Building upon a soundcorporate governance framework, we continuously strengthen ouranti- corruption culture, implement e?ective risk identi?cation andmanagement processes, and rigorously safeguard corporate andpersonal information security and privacy. Through collaborationwith all sectors of society, we are committed to fostering an uprightand healthy business environment.
/ Compliance as Foundation for Sustainable Growth
Nanshan Aluminium Board of Directors andCommittees
We have established a comprehensive governance structure comprisingthe Shareholders' Meeting, Board of Directors, Supervisory Board, andspecialized committees, in full compliance with theCompany Law,Corporate Governance Guidelines for Listed Companies, andShanghaiStock Exchange Listing Rules. Our Board of Directors oversees fourspecialized committees to implement governance responsibilitiesthrough a top-down approach, providing institutional safeguards forscienti?cally sound daily operations. In 2024, we organized and carriedout 4 general meetings of shareholders, and considered and passeda total of 24 motions, held 8 meetings of the Board of Directors, with100% attendance of directors, and considered and passed a total of 59motions.
2.1
CorporateGovernance
We place high importance on board diversity and decision-making independenceas we build a board with diverse backgrounds and forward-looking perspectivesto strongly support our compliant operations and high-quality decision-making.In fostering diversity, we focus on both professional expertise and genderrepresentation, incorporating experts from fields such as accounting, law, andaviation to introduce di?erentiated perspectives. Since 2023, we have appointedone female director to bring balanced insights to our decision-making processes.To ensure independence, we continuously optimize our board structure,standardize director election procedures, conduct independence reviewsfor candidates, and provide working conditions and information support toindependent directors.As of the end of the reporting period, our board comprises one female directorand three independent directors, with independent directors representing 33%of the total board membership.
Board ofDirectors
Audit CommitteeCompensation andEvaluation CommitteeNomination Committee
Strategy Committee
Board Diversity
We continuously enhance the diversity of our board composition across multiple dimensions, including gender, age, educational
background, industry experience, and skill sets, to ensure diverse perspectives in board decision-makingBoard Independence
We strictly comply with theRegulations on the Administration of Independent Directors of Listed Companies, clearly defining thequali?cations, responsibilities, and operational protocols for independent directorsWe reinforce the independent decision-making authority of board members, minimizing external influences and conflicts of interest tosafeguard the independence of board resolutionsCompliance in Board Operations
We maintain a two-way communication mechanism between the company and directors, particularly external directors, enabling directors
to stay informed about corporate operations and facilitating prompt discussions with management on identi?ed issuesDuring independent directors' operations, the company board, management, and relevant sta? provide timely and detailed materials and
explanations to ensure they remain updated on operational developments, supporting e?ective communication with minority investorsIn 2024, independent directors not only attended board committee meetings, board meetings, and shareholders' meetings but also
conducted on-site inspections of production facilities. They reviewed management reports on operations, project progress, internal control
systems, and implementation of board resolutions, closely monitoring governance practices and business performance
We leverage training programs organized by third-party institutions such as the Shanghai Stock Exchange (SSE) and Shandong ListedCompanies Association to keep directors and senior management updated on industry trends and regulatory developments. Thisenables continuous improvement in governance capabilities, strengthening talent foundations to safeguard shareholder rights andsupport sustainable growth.
Guided by theCompany Law,Securities Law, andinternalInformation Disclosure Management Procedures, we rigorouslyadvance sustainability disclosures to ensure truthful, complete,accurate, and timely communication of operational developmentsand strategic plans to investors.We maintain diversi?ed engagement channels including corporatewebsites, SSE websites, SSE "e" Interactive Platform, socialmedia, hotlines, and dedicated emails to facilitate constructivedialogue, particularly with retail investors. Through investorroadshows, analyst conferences, and site visits, we enhancemarket understanding and recognition of our corporate vision. In2024, we pioneered the "Nanshan Brilliance: Sailing to Indonesia"virtual investor event, offering overseas investors insights intoour international operations through video engagement for thefirst time. During the reporting period, we organized over 193institutional investor meetings (online and o?ine) and 69 analystconferences and roadshows to enhance market understanding.
In 2024, we focused on key investor priorities including theoptimization of legacy electrolytic aluminium capacity, existingcapacity upgrades, green power initiatives, and recycledaluminium projects, proactively implementing investorengagement that earned widespread acclaim. During thereporting period, we received nearly 20 awards related toinformation disclosure and investor relations, including the"Outstanding ESG Environmental Management Practice Case"and "2024 Excellence in Board Office Practices" from the ChinaAssociation for Public Companies, the "Golden RoundtableAward" and "Outstanding Board of Directors" at the 19th ChinaListed Companies Board of Directors Awards, as well as the "GoldBoard Secretary Award" and "Best ESG Disclosure Award" fromNew Fortune.
Information Disclosure & Investor Engagement
We organized institutional investormeetings (online and o?ine)over
Analyst conferences and roadshows toenhance market understanding
During the reporting period
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/ Compliance as Foundation for Sustainable Growth
Business Ethics Audit Initiatives by Nanshan Aluminium in 2024
RBA: Responsible Business Alliance.
ASI: Aluminium Stewardship Initiative.
PS: Performance Standard.
We have always regarded ethical operations as the cornerstone ofcorporate development. We are working to integrate complianceprinciples with corporate strategy through robust anti-corruptionmanagement and whistleblowing mechanisms, continuouslyadvancing ethical business culture and practices. Together withstakeholders, we strive to foster a transparent and upright businessenvironment. During the reporting period, there were no incidentsinvolving the dismissal or disciplinary action of directors, management,or employees due to commercial bribery or corruption, nor anyinvestigations by authorities, contract terminations with partners, orlitigation related to such misconduct.
2.2
EthicalOperations
Guided by authoritative certi?cations such as ASI and RBA 8.0, and in compliance with laws including theAnti-Unfair CompetitionLaw,Anti-Monopoly Law, andTransparency International Anti- Corruption Principles for Enterprises, we have formulated an internalAnti-Corruption Policyto govern daily operations. The Board-established Supervision and Inspection Committee oversees integritycompliance among key personnel, conducts unannounced audits of suppliers and clients, and promptly investigates and addressesviolations to eliminate corruption, bribery, money laundering, and unfair competition.In 2024, we strengthened information-based management and re?ned internal control processes, particularly in capital management,aligned with operational needs. We also intensified internal and external business ethics audits to comprehensively identify andassess compliance risks across Nanshan Aluminium and subsidiaries, ensuring unwavering adherence to ethical standards.
RBA
Code of Conduct Audits
ASI
PS
Internal Audits
We regularly conduct
internal audits of the RBACode of Conduct at ourplate processing subsidiaryto monitor compliancewith business ethics
We regularly invite T?V Rheinland to verify and certify RBA 8.0 certi?cation audits
for plate processing subsidiary, covering areas such as business integrity, anti-unfair competition, fair business practices, advertising and competition standards,intellectual property protection, identity protection and anti-retaliation mechanisms,responsible mineral sourcing, and privacyIn October 2024, the plate processing subsidiary successfully passed the on-site
recerti?cation audit under the updated RBA 8.0 standards, achieving scores that metclient requirements and securing a 24-month certi?cation cycle
We prioritize compliance across subsidiaries by conducting regular ASI PS internal audits covering our alumina production,
electrolytic aluminium, plate processing, aluminium rolling, and aluminium foil subsidiaries. These audits systematicallyidentify risks and drive corrective actions to ensure alignment with international sustainability benchmarks
We extend our stringent compliance requirements throughout the supply chain. In accordance with ASI PS certi?cation, RBA guidelines,and our internalSupplier Code of Conduct, we require all suppliers to comply with applicable local laws and regulations, sign boththeSupplier RBA Commitment and Adherence to Business Ethics Agreement, and establish their own anti-corruption policies withcorresponding monitoring procedures. We conduct regular audits of suppliers' anti-corruption compliance, working collaboratively toestablish and maintain an ethical supply chain environment.
We strictly conduct business activities in compliance with laws and regulations such as theAnti-Unfair Competition Law of the People'sRepublic of China, maintaining a zero-tolerance stance toward risks and behaviours including trade secret infringement, false advertising,unauthorized disclosures, and monopolistic practices. We mandate that all business activities adhere to principles of fairness, integrity,transparency, and good faith, prohibiting actions that seek improper gains at the expense of collective or client interests. Throughimplementing relevant measures, conducting regular training and awareness campaigns on anti-unfair competition, and fostering acompliance-oriented culture, Dahua collaborates with stakeholders to uphold ethical business practices. During the reporting period,the company encountered no litigation or regulatory penalties related to trade secret violations, false publicity, improper disclosures, ormonopolistic conduct.
Supplier Business Ethics
Anti-Unfair Competition
To ensure compliance in daily operations, we have established accessible and diversi?ed whistleblowing channels, including dedicatedhotlines and email addresses, to promptly investigate misconduct reported by employees, clients, suppliers, and other stakeholders. Westrictly adhere to whistleblower con?dentiality principles, protecting the identity and information of reporters. A zero- tolerance policy isenforced against any retaliation or information leaks targeting whistleblowers.
We consider the cultivation of business ethics as a fundamental element of our compliance management framework. Throughcomprehensive training programs covering ethical standards and workplace conduct, we systematically promote a culture of complianceamong all employees, including full-time and part-time sta? as well as contractors. Directors, senior management, and key functionalpersonnel are required to sign and strictly adhere to theIntegrity Self-Discipline Commitmentconcerning business ethics matters,thoroughly embedding the principle of "zero tolerance for corruption" throughout the organization.
Nanshan Aluminium Complaint Handling Process
Submission ofcomplaints through
suggestion boxes,dedicated complaintemail, and telephone
hotlines
Communicationof investigationresults to involveddepartments, relatedsta?, and concerned
parties
Review andapproval by theGeneral Manager
Issuance of ?naldispositionInvestigation andevidence collectionby relevantdepartments
/ Compliance as Foundation for Sustainable Growth
See Nanshan Aluminium's 2023 Annual Report for more details:
http://www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2024-02-29/600219_20240229_MM2F.pdf
We integrate risk management into all aspects of corporate operations,dedicated to building a comprehensive, systematic and e?cient riskprevention and control system. Guided by internal regulations suchas theRisk and Opportunity Control Procedures, we coordinate cross-departmental e?orts involving ?nance, procurement, sales, physicalassets, and budgeting departments to conduct company-widerisk identification and control, collectively safeguarding our stabledevelopment.We have established and continuously improved our internal control system, focusing on operational, market, ?nancial and legalrisks, while regularly conducting risk identification and potential hazard screening to implement comprehensive risk controlmeasures. Based on our actual development situation, we analyse and evaluate identi?ed risks to determine their levels and potentialimpacts, then formulate and implement targeted risk control solutions. We also fully leverage the supervisory function of the internalaudit department to regularly review risk management policies and procedures, ensuring clear division of responsibilities among allparticipating departments, continuously improving risk control measures, achieving closed-loop management of internal controlprocesses across business units, and progressively enhancing corporate risk management e?ectiveness.
2.3
RiskManagement
Key Internal OperationalRisk Points
External Macro PotentialRisks
Production & Operations Employee Health & Safety Ecological Environment Human Rights Protection Cash Flow
Customs Taxation Import & Export Technological InnovationInternational Settlement &
Foreign ExchangeInternal and External Risk Consideration Dimensions
Main Certi?cations and Awards Achieved by Nanshan Aluminium in 2024 in the Field of Network Information Security
At the same time, we actively continue to advance and implement cybersecurity-related certi?cations and evaluations, ensuring theprotection of both domestic and international business development through a compliant and e?ective information managementsystem, and building a trustworthy brand image.
We place great importance on information security and privacyprotection, considering them essential components of our operations.In compliance with laws and regulations such as thePersonalInformation Protection Lawand theCybersecurity Law, we haveestablished internal systems including theData Security ManagementSystem,Information Management System, andImplementationDetails for Business Secret Management. In 2024, we updated andrevised our safety management systems and business processes,including theNetwork Information Management Systemand theNetwork Information Center Rules and Regulations, to provide a solidinstitutional foundation for our information security and privacyprotection e?orts.
2.4
InformationSecurity &PrivacyProtection
We prioritize information security management and have integrated it into the overall company strategy. In 2024, considering businessneeds and technological developments, we fully updated and optimized our cybersecurity organizational structure. This new structure,with the Network Information Centre as the responsible body and the cybersecurity team as the execution arm, ensures that networksecurity management responsibilities are implemented from top to bottom, facilitating e?cient cybersecurity operations.Network Information CenterCybersecurit Team
Responsible for developing, supervising, and managing our overall cybersecurity
strategy, ensuring that our network security system aligns with businessdevelopment goalsResponsible for the speci?c implementation, monitoring, and emergency
response of cybersecurity, taking e?ective measures to curb the escalation ofsecurity incidents
ISO 27001 Certi?cationTISAX Certi?cationThe aluminium foil division completed the 2024 ISO
27001 recerti?cation audit.The medium and heavy plate division organized an
ISO 27001 information security audit.
Achieved the Trusted Information Security
Assessment Exchange (TISAX) AL2 label
We actively adopt the best and most practical information security protection technologies, strengthen cooperation with cybersecurityvendors, regularly conduct cybersecurity inspections and special governance tasks, and implement effective privacy protectionmeasures to strengthen our network security defence. As of the end of the reporting period, we have not experienced any networksecurity violations, such as customer information leakage.
Network Information Security Protection
/ Compliance as Foundation for Sustainable Growth
AdoptingInformationSecurityProtectionTechnologies
Actively adopt Green Shield encryption DLP
technology and have completed system upgrades and expansions Regularly conduct equipment maintenance and security checks Use technical means to block malicious domains and hosts involved in unauthorised accessReview and assess the use of externally facing public network systems, closing or adopting alternative access methods
to reduce the exposure of internet-facing business operationsRegularlyConductingCybersecurityInspections
Regularly perform cybersecurity inspections, using methods such as vulnerability scanning and situational awareness
to conduct security checks on our network servers and business systemsUndertakingCybersecuritySpecialGovernance
Deploy ?rewalls, intrusion detection systems, and other protective measures Require employees to use genuine software to avoid security risks posed by pirated softwareLog and retain audit records for key network equipment, servers, email systems, and other critical business system
assets Deploy email security gateways and improve email ?ltering strategies to prevent phishing emailsImplementingPrivacyProtectionMeasures
Implement uni?ed management of corporate email accounts, prohibiting the use of external email accounts, and
ensure that employee accounts are promptly deactivated upon resignationProtect the computers of personnel involved with con?dential products, such as medium and heavy plates, by using
encryption softwareRequire employees to sign con?dentiality agreements and undergo privacy protection training upon joining the
companyStrictly regulate customer information management, applying customer data anonymisation during business
communications to eliminate the risk of sensitive information leakage
Nanshan Aluminium's Network Information Security Protection Measures
Data Leakage Prevention (DLP) refers to a strategy that uses speci?c technical measures to prevent designated data or information assets fromleaving the company in a manner that violates security policy regulations. The concept of DLP originates from abroad and is one of the mostmainstream information security and data protection methods internationally.
We continue to advance cybersecurity culture promotion e?orts, establishing a cybersecurity knowledge base website and regularlyconducting cybersecurity training and emergency drills for all employees to ensure the importance of information security is deeplyingrained. During the reporting period, we held a total of 4 cybersecurity awareness meetings, 2 cybersecurity emergency drills, and12 cybersecurity special inspections.
Cybersecurity Culture Promotion
Cybersecurity Training and Culture Promotion Projects Conducted by Nanshan Aluminium in 2024Cyberattack Emergency Drills
Network and InformationSecurity Meetings
Internal Network SecurityInspectionsWe organised emergency drillssimulating cyberattacks and networkequipment failures, replicating potentialnetwork risks that could occur duringoperations. These drills were aimedat strengthening the network riskawareness and response capabilitiesof all employees, including thecybersecurity emergency team
We held cybersecurity meetingsfocusing on topics such as networksecurity awareness and businesssystem standards. These meetingswere designed to enhance employees'awareness of data and informationsecurity and provide guidance forcybersecurity protection e?orts
Monthly routine cybersecurityinspections were carried out, andspecial activities, such as "weakpassword checks", were organised.During the reporting period, a totalof 361 weak passwords and businesssystem security vulnerabilities wereidenti?ed and recti?ed
Craftsmanship andQuality
Innovation Driving Development
We work to provide high-quality products and services to globalcustomers, starting from a high benchmark. By driving productupgrades through technological innovation, we maintain a strongfocus on quality, continuously pushing boundaries in our businessareas. We provide comprehensive communication, feedback, andcomplaint handling mechanisms to better listen to our customers'voices, enhance product quality, improve service experience, andcreate greater value for our clients.
/ Craftsmanship and Quality Innovation Driving Development
GovernanceWe regard quality governance as an essential pillar for the sustainable development of the company. A three-tier vertical qualitymanagement structure has been established, encompassing decision-makers, management, and execution levels. This systemforms a governance framework with a quality risk management pre-control mechanism at its core, which is regularly assessed toensure alignment with market demands, relevant regulations, and our corporate strategy, enabling us to consistently deliver high-quality products to customers.
In the product production process, our management team comprehensively considers factors such as management policies,project scale, and commercial value, translating strategic directives into speci?c quality management objectives and action plans.Progress is closely monitored, with feedback provided to the decision-making level. The execution team strictly adheres to qualitymanagement goals, continuously implements quality management measures, and monitors their e?ectiveness, ensuring productquality and safety throughout the entire lifecycle.
3.1
ProductQuality
Quality is our top priority. We precisely understand customer needsand adhere to a commitment to excellence, building a trustedAluminium brand. We have established and improved a qualitymanagement system, set quantitative targets related to productquality, and regularly identify, assess, and monitor potential productquality issues. We focus on achieving full lifecycle quality controlfrom raw materials to ?nished products.
LevelGovernance BodyFunctionsReporting Method
Decision-Making Level
Board ofDirectors
As the highest decision-making body, it determinesquality objectives and strategic development direction
Identi?es and assesses quality risks in the operationalprocess
Supervises the implementation of quality objectives
/
ManagementLevel
Sustainability(ESG) CommitteeQuality AssuranceWorking Group
Responsible for quality management throughout theentire product lifecycle
Monitors market trends and customer needs,providing recommendations to the Board ofDirectors
Once every sixmonths
ExecutionLevel
NanshanAluminiumQualityManagementDepartment
Oversees the operation of quality managementsystems across subsidiaries
Monthly reports
StrategyWe are guided by a development strategy of "innovation-driven, high-end manufacturing, and intensive processing", focusing onbuilding a competitive advantage centred on quality. We ensure that every stage of production and delivery meets the highest qualitystandards, providing customers with high- reliability, high-performance products and services.
Risk, Opportunities, and Impact AnalysisPotential Risk Identi?cation & AssessmentRiskRisk Description
TimeHorizon
Business ImpactFinancial ImpactRegulatoryand StandardChanges
Changes in industry regulationsand standards may requireadjustments to productionprocesses to ensure productquality and safety, a?ectingdelivery to customers
Short,Medium,Long
Failure to timely understand
regulatory changes and
adjust production could
lead to delayed customer
deliveries or reduced orders
Increasedcompliance costs,rising operationalcosts, decreasedrevenue (if ordersare not deliveredon time)Failureto AdoptTechnologicalInnovations
Failing to adopt new technologiesin a timely manner may resultin products not meeting marketdemand
Short,Medium,Long
Affects company
development and ability to
meet market demand
Decreasedrevenue
IncompleteSupply ChainManagement
An inadequate supply chainmanagement system may eadto di?culty in identifying andcontrolling quality risks withinthe supply chain, causingdefective products to reach themarket
Short,Medium,Long
Defective products entering
the market could harm the
Company's reputation
Decreasedrevenue
MarketDemandChanges
Continued increases indownstream customerrequirements for productquality, necessitating ongoingoptimization of productionprocesses to maintaincompetitiveness
Short,Medium,Long
Failure to quickly respond
to market demand changes
could lead to reduced
product orders, affecting
revenue
Decreasedrevenue
/ Craftsmanship and Quality Innovation Driving Development
Potential Opportunity Identi?cation and Assessment
OpportunityOpportunity DescriptionTime HorizonBusiness ImpactFinancial ImpactDigitalTransformation
Leveraging IoT, big data, andAI technologies to achieveintelligent and digitalmanagement of productquality during production
Short,Medium, Long
Intelligent and digitalmanagement can enhanceproduct quality monitoringwhile improving productione?ciency
Increasedrevenue, reducedproduction costs
Brand Building
Strengthening brandbuilding to improve productquality and service image,increasing market share andcustomer loyalty
Short,Medium, Long
Increased market share andenhanced customer loyalty
Increasedrevenue
Management Strategies
Quality Management Processes & Digital Empowerment
Building upon the identi?cation and assessment of potential risks and opportunities, we have deeply implemented the "EnhanceQuality, Increase Efficiency, and Emphasize Returns" development plan. We stay abreast of the latest legal and regulatoryrequirements, establish a robust quality management system, and promote quality certi?cations and audits to provide customerswith high-quality, high- value-added products. Simultaneously, we seize market opportunities, leveraging digital empowerment as adriving force to achieve in-depth business development and enhance customer loyalty.We adhere to the ISO 9001 quality management system standards, covering aspects from organizational environment, leadershiproles, risk management, and resource management to operational management and performance evaluation. This comprehensiveapproach signi?cantly reduces potential quality risks. Additionally, we have introduced advanced digital management systems,including: BMS (Building Management System), PMS (Production Management System) and EMS (Environmental ManagementSystem). These digital systems not only enable meticulous management and real-time tracking of production processes but alsomonitor energy consumption and environmental emissions. By integrating environmental management with quality management,we ensure the stability and reliability of product performance.
We leverage digital empowerment as our driving force, utilizing the Manufacturing Execution System (MES
) and intelligent high-rackwarehouses
These initiatives have led to signi?cant achievements in intelligent manufacturing. In June 2024, we were honouredto be included in the 2024 Shandong Province Intelligent Manufacturing Scenarios list, re?ecting our commitment to technologicaladvancement.
A Manufacturing Execution System (MES) is a software system used to monitor, control, and optimize manufacturing processes, enablingcomprehensive management of product production from start to ?nish.
An intelligent high-rack warehouse utilizes automation technology and intelligent management systems to achieve e?cient storage and retrieval ofgoods, enhancing warehouse operations.
GeneralManager
Product Quality Management System Process
Vice Presidentof Production/Operations
ProductionDepartment/PlantManager
ProductionSection
Laboratory
SalesDepartmentResponsiblefor overallproductionquality objectives
Developsplans forproduct outputand qualityobjectives
Coordinateswith varioussubsidiariesto achieveplanned objectives
Organises andimplementsthe speci?cobjectives andplans
Conducts testsand supervisesproduct qualityindicators
Engages withcustomers togather feedbackon product salesand quality
Quality System Certi?cations
Seizing the opportunities presented by the improving domestic economic environment and favourable external trade policies, wecontinue to strengthen our position in traditional aluminium products. We maintain strategic collaborations with clients in sectorssuch as can bodies, can lids, and packaging foils. Concurrently, we adopt a market-oriented approach, utilizing multi-system qualitycerti?cations to expand into high-end industrial pro?les and architectural pro?les. Our focus includes developing high- end productslike automotive and aerospace plates.As the first company in China to achieve dual certification under the ASI Performance Standard (PS) and Chain of Custody (CoC)Standard, we and our subsidiaries
have obtained international quality management system certi?cations across various domains.These include ISO 9001, IATF 16949, AS 9100, and ISO/TS 22163. These certifications not only highlight our excellence in qualitymanagement but also set a high standard for development within the industry.
Quality System Certi?cation
During the reporting period, we obtained three new certi?cations, including the expansion of the EU CE certi?cation. We completed 13certi?cate renewals and 16 annual supervisory audits. By the end of the reporting period, we held over 20 international authoritativecerti?cations, covering quality control across the entire industry chain.
Our Indonesian plant obtained the ISO 9001 Quality Management System certification in February 2024, significantly enhancing the marketrecognition of our products.
Quality Management SystemCerti?cation
Nanshan Aluminium Certi?ed Body
ISO 9001 Quality Management SystemShandong Nanshan Aluminium Co., Ltd. and PT Bintan Alumina IndonesiaIATF 16949 Automotive QualityManagement System
Shandong Nanshan Aluminium Co., Ltd (Flat- Rolled Product Division),Yantai Donghai Aluminium Foil Co., Ltd., Aluminium Pro?le Plant of NanshanAluminiumAS 9100 Aerospace ManagementSystem
Shandong Nanshan Aluminium Co., Ltd (Flat- Rolled Product Division),Aluminium Pro?le Plant of Nanshan AluminiumISO/TS 22163 Railway System QualityManagement System
Aluminium Pro?le Plant of Nanshan AluminiumGB/T 29490 Enterprise IntellectualProperty Management System
Shandong Nanshan Aluminium Co., Ltd.NADCAP Aviation Products and SpecialProcess Certi?cation
Shandong Nanshan Aluminium Co., Ltd (Flat- Rolled Product Division),
Aluminium Pro?le Plant of Nanshan Aluminium
Nanshan Aluminium Leads the Domestic High-End Aluminium Extrusion Pro?le Market
Nanshan Aluminium 150MN Extrusion Production Line
In the aerospace sector, we boast the most completealuminium extrusion chain in China. We have become theleading base for high-end aluminium extrusion profiles,including aerospace plates and aircraft seat extrusionmaterials. With a focus on lean manufacturing principles,we strictly adhere to international aerospace qualitystandards and implement quality management acrossthe entire production process. This ensures that productsfor large domestic aircraft, Boeing, Airbus, and othercompanies maintain stable and reliable performance,breaking the monopoly of foreign giants in these ?elds.
/ Craftsmanship and Quality Innovation Driving Development
Quality Joint Review
Quality Training & Quality Culture
2024 Quality Review of Nanshan Aluminium
We conduct regular joint reviews, involving teams from the Production Equipment Management Department, Quality ManagementDepartment, System Certification Department, Lean Management Department, and the Metrology and Testing Centre. The teamsupervises and inspects all aspects of "manpower, machine, material, method, environment, and measurement" that a?ect quality,and organizes corrective actions and follow-up veri?cation for any identi?ed issues. Additionally, in October 2024, the Aluminium FoilCompany underwent a ?ight audit based on customer requirements, which passed smoothly.
We have established a regular quality training system, continuously reinforcing thefoundation of our quality culture. By considering our current state and the trainingneeds of various units, we focus on areas such as standard knowledge, qualityawareness, skills, tools, and regulations. This approach deepens the understanding ofquality culture at all levels, e?ectively improving the quality expertise of personnel atevery level.During the reporting period, we organized 12 company-wide training sessions,includingPreparation of Two-Level Quality Management Monthly Reports, with atotal of 785 participants. Additionally, the company organized 66 specialized trainingsessions on theISO 9001 Quality Management Manual, accumulating 144 hours oftraining, with over 1,200 participants.
On-site Quality Management Training
IndicatorUnit2024 DataNumber of Internal Quality AuditsTimes36Number of Third-Party Quality AuditsTimes32Number of Customer AuditsTimes47Total Recti?cations for Quality ImprovementsItems301
ManpowerMachine
Material
MethodEnvironment
Measurement
Impact, Risks, and Opportunities Management
Indicators & Targets
Amidst the dual backdrop of the green transformation of the aluminium industry and global competition, we have extended theboundaries of quality management from the production side to the entire value chain. Our goal is to build a high-quality brandthat customers can trust. We have established a comprehensive quality risk pre-control mechanism, proactively identifying andmanaging potential risks such as raw material quality and equipment failure. Keeping pace with digital transformation, we havedeveloped product inspection plans, implemented error-proo?ng devices, and ensured product traceability from multiple angles.These e?orts aim to build a brand that our customers can rely on. During the reporting period, the customer quality complaint ratedecreased by 27% compared to the previous year.
We focus on quantifiable goals to drive quality performance and provide guidance for the efficient implementation andoptimization of our corporate strategy. We aim to improve key indicators, such as customer satisfaction, and compare the progressof goal achievement year on year.
At the same time, we conduct audits both internally and externally, ensuring quality safety throughout the production process frommultiple angles, injecting lasting power into our high-quality development. We also implement RCCA (Root Cause Corrective Action),a tool used to address quality issues, to achieve a "dual zero" in both processes and management, ensuring the effectiveness ofquality management.
During the reporting period, our quality management-related indicator status was as follows:
Indicator2024 TargetActual AchievementYear-on-Year Change
Customer Satisfaction≥9294.5↑2.7%Proportion of Employees ReceivingQuality Training
100%100%No changeNumber of Major Safety and QualityIncidents Related to Products and Services
0Achieved/
/ Craftsmanship and Quality Innovation Driving Development
LevelGoverning BodyResponsibilitiesReporting Frequency
Decision-Making
Level
Board ofDirectors
Serve as the highest decision-making body,determining the strategic direction for innovation
Identify and assess innovation risks
Allocate resources
Supervise the implementation of innovation strategies
/
Manage-mentLevel
TechnicalInnovationWorking Groupof the ESGCommittee
Responsible for the full lifecycle of product technologyresearch and innovation, enhancing independentinnovation capabilities and establishing intellectualproperty for key product technologies
Manage the entire process of technological innovationprojects, including initiation, process management,and acceptance
Monitor market trends and demands, providingrecommendations to the Board of Directors
Biannually
Execution
Level
TechnologyManagementDepartmentof the ControlCentre
Allocate resources based on project priorities
Establish and train the technological research anddevelopment team
Address technical issues encountered during researchand production
MonthlyWe adhere to an "innovation-driven, technology-led" approach, leveraging platforms such as the National Enterprise TechnologyCentre, Academician Workstation, and Postdoctoral Research Station to enhance research and development in key technologicalareas, aiming to advance industrial technology and application research. The R&D teams are composed of individuals with solidacademic backgrounds and extensive project experience. Regular internal and external professional training sessions are organized,and active participation in industry conferences is encouraged to stay abreast of industry and academic advancements. This proactiveengagement facilitates the sharing of our research outcomes, contributing to the broader industry's development.Prior to investing in innovation projects, our decision-making and management teams conduct comprehensive evaluationsconsidering factors such as scienti?c validity, commercial value, return on investment, environmental impact, and social value. Weimplement compliance management in R&D and intellectual property, utilizing external databases for reference to thoroughly assessassociated risks and opportunities. This balanced approach ensures informed decision-making regarding investments.
GovernanceWe have established a three-tier innovation-driven governance structure, composed of the Board of Directors, the TechnologicalInnovation Working Group, and the Technology Management Department of the Control Centre, ensuring that the Board andmanagement have oversight, guidance, and support for related work.
3.2
Innovationand R&D
Technological progress is a crucial factor in enhancing a company'score competitiveness. As a traditional industry, the aluminiumprocessing sector is transitioning towards high-quality developmentin line with the demand for new productive forces. To this end, weare committed to creating a favourable environment for innovation,continuously increasing support for technological innovation,improving R&D conditions, and strengthening talent development. Atthe same time, we are deeply integrating intellectual property workwith product development and technological innovation, e?ectivelytransforming patent achievements into real productive capacity. Thisongoing process enhances our technological innovation ability andcore product competitiveness, providing strong momentum for theindustry's high-quality development.
StrategyWe continuously strengthen our R&D and innovation management capabilities. To ensure the orderly progress of R&D projects andimprove the success rate of R&D, we combine external factors with our strategic business direction to identify and assess risks andopportunities in areas such as product innovation and intellectual property. This approach helps clarify the impact on businessoperations and the resulting financial consequences, enabling the formulation of appropriate management strategies. Thesestrategies aim to optimise resource allocation and signi?cantly enhance decision-making quality.Risk, Opportunity, and Impact Analysis
Potential Risk Identi?cation & AssessmentRiskRisk Description
TimeHorizon
Business ImpactFinancial Impact
ProductInnovation Risk
Industry technology iteration isaccelerating. If R&D directions failto meet mid-term market demands(e.g., low-carbon aluminiummaterials, lightweight trends),it may result in a decline intechnological competitiveness
Medium,long
Decreased marketcompetitiveness
Reduced revenueInnovative products (e.g., newaluminium alloys) may face longcustomer validation periods andlow market recognition in the shortterm
ShortExtended R&D cycle
Increased R&D
costs
IntellectualProperty Risk
The company fails to e?ectivelyprotect its intellectual property
Short,medium
Infringement bycompetitors
Reduced revenueEngaging in intellectualproperty disputes andlawsuits or arbitration
Increased
management
costsPotential Opportunity Identi?cation & AssessmentOpportunityOpportunity Description
TimeHorizon
Business ImpactFinancial Impact
MarketCompetitiveness
By developing lightweight, high-strength new aluminium alloys(e.g., aluminium for automotivelightweighting), quickly respondingto the urgent demands fromindustries like new energy vehiclesand aerospace, market share can beincreased in the short term
Short,medium
New products directlybring new marketshare, enhancingbrand value and corecompetitiveness
Increased
revenue
Leading IndustryStandards
Leading or participating in theformulation of industry technicalstandards for aluminium materials(e.g., recycled aluminium standards),enhancing industry in?uence
Long
Companies thatcontrol standard-setting are often seenas industry leaders,leading to signi?cantimprovements in brandin?uence and customertrust, helping securehigh-value orders
Products that
meet industry
standards
tend to have
higher market
recognition,
allowing for
premium sales
and improved
gross pro?t
margin
/ Craftsmanship and Quality Innovation Driving Development
Management Strategy
Innovation and R&D System
We adhere to the development strategy of "innovation-driven, high-end manufacturing, and intensive processing". We are focused onimproving and re?ning upstream production processes, as well as researching and developing breakthrough downstream producttechnologies. We are actively positioning ourselves in key core technologies and Trinity of Disruptive, Visionary and GroundbreakingTechnologies. Our focus is on automotive lightweighting and the domestic production of aerospace materials. We aim to address theproduction and application of high-end aluminium products such as automotive panels, aerospace panels, and aerospace pro?les,breaking the monopoly supply of developed companies for products like automotive outer panels and aerospace wing spars.In 2024, as a leading enterprise in China's aluminium processing industry, we focus on the transportation and aerospace sectorsand set clear R&D strategic goals. In automotive lightweighting, we focus on overcoming dependence on a number of key coretechnologies and equipment from developed countries and build a system of independent innovation for key technologies,particularly tackling the production technology barriers for high-end products such as automotive outer panels, ensuring fullindependence and control over core technologies. In the domestic production of aerospace materials, we will comprehensivelyadvance the research and development of full specifications and all-alloy aerospace plates, focusing on breakthroughs in theproduction technologies for key aerospace components such as wing spars, and establish a complete aerospace materialscertification system. By continuously increasing R&D investment, we will build a "inner circle" of internationally competitivetechnological innovation, strengthen our leadership in high-end industries, and become the core scientific force supporting theconstruction of a strong aviation nation in the new era.
At Nanshan Aluminium, we are working to enhance our R&D management system. We accelerate scientific and technologicalinnovation through internal research projects, industry- academia collaborations, and partnerships across the industry value chain.
Since first receiving the "High-Tech Enterprise" designation in2009, we have steadfastly prioritized technological innovation,increased R&D investments, and optimized our products andservices. Our highly skilled R&D team has achieved numerouscore technological breakthroughs. We place great emphasison industry-academia collaborations, working closely withuniversities and research institutions to advance the industry.This certification acknowledges our comprehensive strengthsin intellectual property, achievement transformation, high-tech revenue proportion, R&D management, growth potential,and talent structure. Currently, we operate the only NationalEngineering Research Centre for Aluminium Alloy PressureProcessing in China's aluminium processing industry, along withthe National Aluminium Alloy Material Testing Centre and otherR&D and testing platforms.
Nanshan Aluminium Awarded the 8th China Industrial Award
In July 2024, the China Federation of Industrial Economics announced the list of candidates for the 8th China IndustrialAward, Recognition Award, and Nomination Award. We were honoured with the 8th China Industrial Award RecognitionAward. The China Industrial Award, approved by the State Council, is the highest award in China's industrial sector.It aims to recognize companies and projects that adhere to the scientific outlook on development and follow thepath of new-type industrialization with Chinese characteristics. It highlights the direction, path, and spirit of China'sindustrialization and showcases the highest level of industrial development. It also acknowledges significantcontributions to enhancing national strength and promoting economic development.
Nanshan Aluminium National EngineeringResearch Centre for Aluminium Alloy PressureProcessing
High-Tech Enterprise Certi?cation Boosts Technological Innovation
Shandong Provincial Key Laboratory for Aluminium AlloyMaterial Preparation and Forming
To advance scientific research in high-performancealuminium alloy materials and promote the developmentof Shandong Province's aluminium processing industry,we have partnered with Qilu University of Technology andNanchang University to jointly establish the ShandongProvincial Key Laboratory for Aluminium Alloy MaterialPreparation and Forming. As the leading entity, we areresponsible for the laboratory's application, construction,evaluation, and daily operations. We provide technicalsupport for the laboratory's long-term development,strategic positioning, and independent innovation,conducting key technology development and applicationresearch on high-performance aluminium alloy materials.
As the only domestic enterprise supplying aluminium aerospace materials to globally renowned manufacturers such asBoeing, Airbus, and COMAC, we have overcome critical challenges in aluminium alloy melt puri?cation and large-scaleingot homogenization. This has led to the localization of several key aluminium alloy materials for large civil aircraft,breaking the long-standing reliance on imports for high-end aerospace aluminium materials like wing bent pro?les andwing panels. In recent years, our R&D has focused on high-end aluminium alloy plates and pro?les.In the development of C919 aircraft aluminium pro?les, we have achieved certi?cation for multiple alloy models of2-series and 7-series series thick and thin plate products, now in mass production. These products are primarily usedin fuselage frames, partitions, wing panels, spars, and ribs. Notably, our 7xxx series aluminium alloy thick plates havebeen utilized in the production of C919 and ARJ21 aircraft models. Currently, we are also involved in the developmentof certain products for the C929 aircraft.During the reporting period, our leading role in compiling theKey Technologies and Engineering Applications forResidual Stress Control of Large Aerospace Aluminium Alloy Plateswas recognized with the First Prize in the 2024Nonferrous Metals Industry Science and Technology Awards.
Aerospace materials represent the pinnacle of aluminium processing, demanding exceptional performance, stringent manufacturingprocesses, and complex production management. During the reporting period, we completed certification and production formultiple models of thick plates and initiated alloy development projects. Moving forward, we will continue collaborating with clientson the development of wing panels and sheet materials, aiming for comprehensive coverage across all models and sizes to enhanceour competitiveness in the aerospace aluminium plate market.
Collaborative Establishment of Shandong Provincial Key Laboratoryfor Aluminium Alloy Material Preparation and Forming
Nanshan Aluminium's Contribution to China's Large Aircraft
/ Craftsmanship and Quality Innovation Driving Development
Intellectual Property Management
Intellectual Property Management Measures
We strictly adhere to relevant laws and regulations, including thePatent Law of the People's Republic of China, theAnti-UnfairCompetition Law of the People's Republic of China, theEnterprise Intellectual Property Management Regulations, and theGuidelines for Intellectual Property Management in Industrial Enterprises. We have established aManagement System Manualfor intellectual property protection, outlining trademark and copyright protection application procedures. Risk assessmentsand registrations for trademarks and copyrights are conducted based on business needs, promoting comprehensive creation,protection, utilization, and management of intellectual property. During the reporting period, we successfully obtained the GB/T29490 Enterprise Intellectual Property Management System supervision audit.PreparationPhase
Regularly monitor the market for intellectual property (IP) related to the company. Before engaging ininternational trade, investigate the IP laws, policies, and enforcement practices of the destination country.Understand relevant industry litigations, analyze potential disputes and their possible impact on thecompany, and develop preventive plans.
ContractSigning
For outsourced business activities, sign written contracts that specify IP ownership and con?dentialityclauses. The Company's legal department reviews and archives these contracts.
Interde-partmentalCoordination
During product procurement, sales, research and development, or other business processes, monitorfor potential IP infringements. If issues are identi?ed, report them to the IP department for handling.When necessary, the legal department may pursue administrative and judicial avenues to protect theCompany's IP rights.
ProactiveMonitoring
Actively renew trademarks upon expiration and combat malicious trademark imitations. Proactivelydefend against market infringements.
CollaborativeManagement
Coordinate with a?liated companies to clearly delineate ownership boundaries, reducing trademarkcon?icts and minimizing gaps in IP rights.
Industry Association NamePosition as a BusinessChina Nonferrous Metals Industry AssociationVice President BusinessChina Nonferrous Metals Fabrication Industry AssociationVice Director-General BusinessShandong Advanced Materials Industry AssociationVice President BusinessShandong Aluminium Industry AssociationVice President Business
Industry Collaboration & Co-constructionWe adhere to the principles of cooperation, openness, and mutual bene?t. Through diversi?ed collaboration channels, we deeplyparticipate in the development of various industry associations. We actively engage in in-depth discussions with peer companiesabout industry development trends and technological innovation, and work to implement tangible results within industryassociations to promote overall industry innovation and development. During the reporting period, we served as a council memberor member unit of several industry associations, including the China Nonferrous Metals Industry Association, and worked alongsideindustry peers to promote the high-quality and sustainable development of the nonferrous metals sector.
Additionally, we offer specialized training on IP and incentive measures for employees to apply for patents, continuouslyenhancing their IP awareness and independent innovation capabilities. Employees are rewarded with RMB 1,000 after submittinga patent application, and RMB 9,000 for each successfully granted patent. During the reporting period, we conducted six internalIP- related training sessions and two external training sessions.
Intellectual Property Internal and External TrainingIn November 2024, we attended an intellectual property seminar hosted by the Longkou Market Supervision Administration.The seminar covered overseas IP risks and prevention strategies, as well as how intellectual property can promote enterpriseinnovation and development.
Employees are rewarded withRMB1,000
after submitting a patent application
RMB9,000for each successfully granted patent
/ Craftsmanship and Quality Innovation Driving Development
Exhibition at the 2024 Aluminium Industry Exhibition in GermanyFrom October 8 to 10, 2024, we made our third attendance at the ALUMINIUM 2024 exhibition in Germany,showcasing ourselves as a global leader in providing high-end aluminium products with a focus on green and low-carbon technologies.Through physical displays, promotional brochures, video presentations, and on-site consultations, we demonstratedour products in various categories including sheets, strips, foils, pro?les, and deep-processing products in ?elds suchas aviation, automotive, rail transport, packaging, and new energy vehicles. The exhibition highlighted our strengthas a well-known company in the Chinese non-ferrous metal processing industry, attracting attention from visitorsboth domestically and internationally.
On-site Sta? Explaining Product Features
While continually enhancing our independent innovation capabilities, we are actively collaborating with government departments,peer companies, universities, and other institutions. We aim to drive supply-side structural reforms in the industry and contributeto the healthy and sustainable development of the sector. This re?ects our commitment as an outstanding representative of theindustry. We continue to invest in the research and development of green materials, establish a "government-industry-university-research" support system with universities and research institutes, expand communication channels across the industry'supstream and downstream sectors, accelerate technological cooperation and innovation among enterprises, and work withindustry partners to promote green innovation and development within the sector.
Nanshan Aluminium Exhibition Booth
2024 External Industry-University-Research Project Highlights
We collaborated with Shandong University and the Shandong Academy of Sciences Institute of New Materials onthe project:
Aluminium-Based Tra?c Lightweight Technology Demonstration Engineering.
We partnered with Yantai Nanshan College on the research project:
Key Technologies for the Industrialization ofHigh-Strength, High-Toughness 7xxx Aluminium Alloy Ultra-Thick Plates.
We cooperated with Harbin Institute of Technology (Weihai) Innovation and Entrepreneurship Park Co., Ltd. on theproject:
Key Technologies for High-Performance, Precision Manufacturing of Large-Scale 7xxx Aluminium Alloy RingComponents.
We joined forces with Shandong University and CRRC Qingdao Sifang Co., Ltd. on the project:
Key Technologies forthe Preparation and Intelligent Processing of Lightweight Alloys and Composite Materials for Key Industries.
Impact, Risk, and Opportunity Management
Indicators & Targets
To ensure the e?ectiveness of our management strategy, we assess and quantify the feasibility and impact of potential R&D innovationrisks, determining their management priority based on the assessment results. For higher-priority risks, we have established targetedmanagement systems and work?ows, and have authorized dedicated teams to regularly monitor and record risk levels. Additionally,we implement risk management measures to minimize the impact of R&D innovation risks on both internal and external stakeholders.For more details, please refer to "ESG Impact, Risk, and Opportunity Management" section.
We continue to improve our R&D innovation performance system to ensure the e?ective implementation of R&D strategies and theachievement of strategic objectives. The performance of our senior management is closely linked to the progress and outcomes ofR&D projects, encouraging them to focus on project developments, ensure the availability of resources, and actively participate inR&D work.
In 2024, we employed2,148R&D personnel, accounting for
13.06
% of the total workforce. R&D investment
reached RMB
1.389
billion, accounting for
4.15
% of revenue.We launched
new product development projects and
new technology applications.
R&D Investment
In 2024, we were granted
invention patents and
utility model patents.The total number of granted invention patents reached
, and utility models amounted to
, with
trademarks.
Annual Patent Achievements
In 2024, we participated in revision
national standards and
industry standards, with
national standard and
industry standards led by the company.We participated in formulating, revising and releasing
national standards and
industry standards, including
national standard led by the company.
National and Industry Standard Formulation
/ Craftsmanship and Quality Innovation Driving Development
Quality ServiceWe follow relevant laws and regulations such as theConsumer Rights Protection Law of the People's Republic of China, as well asinternal policy guidelines including theProcess Control Procedures Related to Customers, After-Sales Service Control Procedures,Customer Satisfaction Measurement Procedures, andProduct Service Management Regulations, focusing on creating standardizedand regulated customer service processes.We have built and continue to maintain a variety of communication channels, including in- person visits, telephone visits, writtencorrespondence, fax, virtual meetings, and email, to keep close contact with customers. This allows us to promptly understand andrespond to customers' daily needs regarding order details, delivery schedules, shipping plans, and payment status. In addition, weconduct regular product mock recall drills for products such as can body materials, can end stock, and aluminium foil, in line withfood safety system requirements, to continuously improve customer satisfaction.
3.3
CustomerService
We adhere to a customer-centric approach, actively innovating servicemodels and improving service quality. Through e?cient, professional,and considerate service, we continuously enhance the customerexperience and satisfaction. We ensure smooth communicationchannels for customers, safeguard customer privacy, and arecommitted to providing e?cient and convenient service experiences.
Customer Service Process
ProcessCommunication
CustomerRequirementsCommunication
Contract/
OrderApprovalIdenti?cation/Tra nsmission/Con?r mationof CustomerRequirements
CustomerRequirement
Review
CustomerSatisfactionSurvey
Product DeliveryCustomerAfter- Sales Service
Contract/
OrderImplementation
We have established a comprehensive customer complaint management process, strictlyimplementing internal systems such as theProduct Service Management Regulationsand After- Sales Service Control Procedures. We use various communication channels,including on-site visits, telephone calls, written correspondence, fax, virtual meetings,and emails, to quickly respond to any quality objections raised by customers during theentire purchasing and usage process, within 24 hours. We provide full quality assurancefrom pre-sale to post-sale. In 2024, we addressed customer complaints regarding productquality, packaging quality, and logistics transport promptly, providing feedback andgenerating improvement plans to prevent recurring issues. The timeliness of complainthandling reached 100% in 2024.
Customer Complaints
The timeliness of complainthandling reached in 2024
%
In accordance with theCustomer Satisfaction Measurement Procedure, we conduct annual customer satisfaction surveys coveringvarious aspects such as product quality, on-time delivery, service levels, price competitiveness, packaging design, and logisticstransportation. For items that receive low satisfaction scores in the surveys, we collaborate with relevant internal departmentsto jointly rectify the issues and continuously monitor the effectiveness of the improvements, ensuring that problems arefundamentally addressed and customer satisfaction is enhanced.
Satisfaction Survey
We adhere to a "prevention ?rst, rapid response" management approach and continuously implement product recall and responsemechanisms. We monitor product quality in real time to minimize potential product quality risks. At the same time, when productissues are identi?ed, we quickly respond to customer feedback, promptly con?rm and locate the production batch and distributionpath of the problematic product, and provide clear solutions and compensation measures, effectively safeguarding consumerrights and brand reputation. During the reporting period, we did not experience any product recall incidents due to quality issues orcustomer complaints.
Customer Complaint Service ProcessProduct Recall
Customer Satisfaction Survey ResultsFlat Products Division: Customersatisfaction survey score of
points
Consumer Materials Division: Customersatisfaction survey score of
98.37
points
2024
Upon receiving customer feedback or complaintsregarding quality issues, we make every e?ort tounderstand the speci?cs of the complaint, including thematerial's performance, issue patterns, performance ofmaterials from the same batch, and performancefrom other suppliers during the same period,through channels such as phone calls,emails, WeChat, or on-site visits
For other customer requirements suchas material performance improvement,speci?cation changes, or new products,sales personnel will relay the informationto the technical department. The technicaldepartment will review the customer's request and, ifapproved, arrange for testing. The sales and productservice departments will assist in understandingmaterial usage and improvement e?ects, and providefeedback to the technical department to ?nalize theproduction approach for the subsequent products
Relevant samples and photos are collected and sent to theproduction and technical departments for investigation
and analysis. Based on the investigation's ?ndings, wecollaborate with the customer to determine a solution.During this process, on-site follow-up may be neededto trace the causes further or attempt to resolve
the issue by reusing the materials
Once a solution is determined, a processingagreement is created and sent to the customerafter approval. For solutions that require returns orexchanges, the logistics department will arrange for thereturn of goods, which will then undergo quality controland warehouse re-checking for weight, in accordance
with the agreement
/ Craftsmanship and Quality Innovation Driving Development
We adhere to the concept of responsible marketing and regularly develop and continuously optimizes annual marketing plans andmanagement systems that align with our development, based on market dynamics and the actual conditions of various products.We implement cultural promotion related to marketing and work together with customers and stakeholders to create a fair andtransparent marketing environment.
To further ensure marketing compliance, we have implemented a series of institutional standards related to business personnel'sethical practices, including the IntegrityManagement Procedures, Marketing Management System, and Salesperson Code ofConduct. Subsidiaries conduct self-checks and self-corrections, while also cooperating with our audit department for reviews. Werequire sales sta? to adhere to the signedIntegrity Agreementduring the cooperation process. If any violations occur, we will holdthe responsible personnel accountable based on the severity of the breach. Additionally, we have established a marketing trainingprogram, organizing monthly special training sessions for all marketing sta? aimed at improving the overall literacy and professionalcapabilities of the sales team.
Responsible Marketing
Key Initiatives in Responsible Marketing in 2024
Responsible Marketing TrainingResponsible Marketing Auditing
We conduct monthly specialized training forall marketing sta?, focusing on improving theirprofessional capabilities and comprehensivequalities in areas such as product knowledge,project management, customer management,marketing systems, and business etiquette.
During business operations, we focus onauditing the implementation of marketingpolicies, management systems, sales contracts,and behavioral norms. We carry out internalaudits and inspections to promptly address anyidenti?ed risks.
Natural Harmony
Co-creating a New Ecological Era
We adhere to the core philosophy of "harmonious coexistence,safeguarding clear waters and green mountains" and strive to advanceour green transformation. We are dedicated to reducing energyconsumption and minimizing greenhouse gas emissions, activelyfulfilling our environmental responsibilities. At all our domestic andinternational operations, we strictly comply with environmentalprotection laws and regulations, actively respond to internationalcalls for addressing climate change, and strive for harmony betweenproduction activities and the natural environment, co-creating a newchapter of harmonious development.
/ Natural Harmony Co-creating a New Ecological Era
Our Organizational Structure for Responding Climate Change
We have established a three-tier climate change response structure consisting of the Board of Directors, the Sustainability Committee,and the Control Centre to ensure that the Board and management provide oversight, guidance, and support for related initiatives.Through a regular reporting mechanism, we ensure that the ESG Committee's Energy Conservation and Carbon Reduction WorkingGroup is kept informed about our climate change management status. Key work such as climate strategy, carbon reduction goals, andlow-carbon transition progress is periodically reviewed by the Board to ensure that sustainable development strategies are e?ectivelycommunicated.Additionally, to ensure the effective implementation of these efforts, under the leadership of the Control Centre, we link theachievement of energy conservation and carbon reduction goals with the performance of our senior management and subsidiaryleaders.
LevelGovernance BodyFunctions
ReportingFrequency
Decision-MakingLevel
Board of Directors
As the highest decision-making body, determine the climate changeresponse development strategy.
Identify and assess climate risks and opportunities.
Make resource allocation decisions.
Oversee the implementation of climate change response measures.
/
ManagementLevel
Sustainability(ESG) CommitteeEnergyConservation andCarbon ReductionWorking Group
Supervise various units, lead and organize the implementation of ISO50001 energy management system, ISO 14064 greenhouse gas emissionstandards, and ISO 14067 product carbon footprint standards.
Manage safety production, occupational health, waste emissions, life cycleassessment, and green manufacturing.
Fully implement tasks related to addressing climate change and energyconservation and carbon reduction.
Every 6months
ExecutionLevel
Control Centre
As the execution body, responsible for daily energy conservation andemission reduction checks.
Break down management objectives and supervise related work ofproduction units through periodic assessments.
Ensure daily work meets ISO 50001 energy management system and ISO14064 greenhouse gas emission standards.
Assist with carbon inventory-related work.
Monthly
4.1
RespondingClimateChange
We deeply understand that addressing the risks and opportunitiesassociated with climate change is critical to our globaldevelopment strategy. We actively align with the global low- carbontransition trend and, in accordance withChina's National ClimateChange Adaptation Strategy 2035, integrate climate change factorsinto our governance structure and strategic planning. As a memberof the Aluminium Stewardship Initiative (ASI), we are dedicated tobecoming a model for high-quality green development in China'snon-ferrous metals industry.Governance
Nanshan Aluminium Climate Change Risk Identi?cation & Response Measures
We regularly identify climate risks and opportunities, and update and refine our development strategies and risk managementinitiatives. Against the backdrop of green transformation, we actively implement energy conservation and emission reductionmanagement measures, steadily advancing towards a sustainable development path.Risk, Opportunity, and Impact AnalysisAs an energy-intensive industry, aluminium processing and manufacturing is profoundly a?ected by the challenges of climate change,which are reshaping the operational landscape of both the aluminium industry and our company. To strengthen our ability to withstandthe impacts of climate change, we are actively conducting a comprehensive assessment of climate risks and opportunities, aiming toorganically integrate the risk factors and development opportunities identi?ed in this process into our long-term strategic planning.
Nanshan Aluminium Climate Risk List
Climate RisksRisk Description
TimeHorizon
Business Impact
FinancialImpact
Risk Response Measures
SevereNaturalFactors (e.g.,Typhoons,Tsunamis,ExtremeHeat,ExtremeCold,Wildfires)
Extreme weathersuch as typhoonsand snowstormsmay a?ectour businessoperations inspeci?c regionsor globally, andmay also impactour suppliers,leading tooperationaldisruptions.
Long -term
Extreme weathermay causeequipmentdamageor disruptproduction andthe supply chain;Extreme heat maycause heatstrokeand a?ectemployee safety.
AssetimpairmentIncreasedoperationalcosts
Ful?ll environmental protectionresponsibilities and minimizeadverse impacts on ecology andclimate.
Establish an emergency responsecommand center and developemergency plans, conduct regulardrills, and equip all plants with?ood bags and non-slip sandbags.
Dynamically set up safety stockand strengthen emergency supplycapabilities of suppliers.
Laws &Regulations
With countriescontinuallystrengtheningenvironmentalregulations,the aluminiumindustry facesincreasedpressure fromenvironmentalprotection andcarbon tari?s(CBAM).
Short- term,Medium- term,Long -term
The DonghaiThermalPower Plant isincluded in thegovernment'scarbon quotamanagement;The electrolyticaluminiumindustry alsofaces strictercarbon emissionlimits.
Fines riskIncreasedoperatingcosts
We follow ISO 14001Environmental ManagementSystem and ISO 50001Energy Management Systemto systematically manageand advance greenhousegas emission targets andimplementation plans, increasingthe proportion of clean energy.
Pay attention to changes inlaws and regulations in variouscountries and respond promptly.
Strategy
/ Natural Harmony Co-creating a New Ecological Era
Nanshan Aluminium Climate Change Opportunity Identi?cation & Response Measures
Nanshan Aluminium Climate Risk ListClimate RisksRisk Description
TimeHorizon
Business Impact
FinancialImpact
Risk Response Measures
MarketDemandfor CarbonFootprint
Customers inautomotive sheetand packagingmaterials requirethe companyto conductproduct lifecycleassessments.
Medium- term,Long -term
We need tocarry outcarbon footprintassessments andlifecycle analysisfor key products.
IncreasedoperatingcostsDecreasedrevenue(if productslack relevantcerti?cationsand loseorders)
Based on continuous carbonfootprint certi?cation forcore products, the companycollaborate with upstream anddownstream partners to developcarbon reduction plans coveringthe entire product lifecycle.
Nanshan Aluminium Climate Opportunity List
ClimateOpportunities
OpportunityDescription
TimeHorizon
BusinessImpact
Financial ImpactOpportunity Response Measures
Developmentof Low-EmissionProducts
Increasingly,downstreamcustomerswill requirelow-carbonaluminiumprocessingproducts.
Medium- term,Long -term
Low-carbonproductswill attracthigh- qualitycustomerswho focus onsustainability.
Increased R&DexpenditureHigher operating costsIncreased revenue(if successful indeveloping low-carbon products, willcapture market share)
We have been certi?ed throughASI performance standardsand supply chain monitoring toensure that our products in Chinameet COC requirements from rawmaterials to ?nished products,o?ering aluminium that complieswith ASI standards.
Continuously reduce CO
emissions in the aluminiumcasting process.
ResourceRecycling &Utilisation
Emphasison resourcerecyclingwill drive thecompanyto carry outequipmentmodi?cationsand activelypromoterecycling.
Long -term
Resourcerecyclingwill reducereliance onraw materialsand improveresourceutilisatione?ciency.
Increased investmentDecreased operatingcosts (once recyclingtechnology for scrapaluminium matures,it may reduce rawmaterial procurementcosts)
We actively communicate withdownstream customers to recycleexternal scrap for smelting. The100,000-ton recycled aluminiumproject has been successfullycompleted and put into use.
Simultaneously, 100% of internalscrap is recycled, and all wastegenerated in the production ofaluminium sheets and foils isrecycled and re-melted back intothe furnace.
Energy Saving& EmissionReduction
Energy-savingand emissionreductionrenovationswill improveour energye?ciency.
Long -term
We continueto carry outprocessimprovementsand increasethe proportionof new energy.
Increased investmentReduced operatingcosts (in the long term,after technologicalimprovements, energyprocurement expenseswill decrease)
We actively explore newtechnologies, new equipment, newmaterials, and new processes forenergy management, increasing theproportion of green electricity.
Transparently disclose ourprogress towards achievinggreenhouse gas emissionreduction targets.
After systematic evaluation and in-depth analysis, we have further examined the impact of climate change-related risks andopportunities on our operations. Through carbon footprint accounting and product carbon footprint management, we assess thestatus of our greenhouse gas management. We then implement carbon reduction actions in line with low-carbon developmentplans, continuously focusing on efficient energy and equipment management to better address risks and seize climateopportunities.We invite professional institutions each year to assist in conducting internal carbonfootprint accounting. Following theGreenhouse Gas Accounting ManagementSystem, we carry out internal carbon emission assessments across the company,systematically evaluating the carbon emissions of each business unit. In accordancewith ASI disclosure requirements, we regularly disclose our greenhouse gasemissions and the use of various energy types. At the same time, through datacollection and tracking verification mechanisms, we ensure that the overallgreenhouse gas plan and carbon reduction mechanisms are e?ectively implemented.In 2024, we continued conducting ISO 14064 organizational carbon audits, with theaudit boundary covering the following:
Coverage Scopea
Alumina Company
Electrolytic Aluminium Company
Medium-thick Plate Company
Aluminium Rolling Company
Aluminium Foil Company
Aluminium Pro?le PlantWe actively respond to the global consensus on carbon reduction and the explicit demands from downstream customers forgreenhouse gas emissions reduction. We have commissioned third- party organizations to conduct product carbon footprintcerti?cation for several of our products. In 2024, we successfully completed carbon footprint certi?cation for 15 products, providingstrong support for the development of a low-carbon aluminium metal supply chain.
Management Strategy
Carbon Footprint Accounting & Product Carbon Footprint
Nanshan Aluminium ISO 14064 -based Organizational CarbonEmission Assessments
Product Carbon Footprint Certi?cations
ElectrolyticAluminiumCompanyAluminium
RollingCompanyAluminiumFoil CompanyMedium-thick PlateCompanyAluminiumPro?le Plant
Electrolytic aluminium water,remelt aluminium ingotsBeverage can body material,can lid material, aluminium foilstock, battery casing materialPackaging foil, battery foilAluminium automotive plate,aluminium aerospace plateAluminium alloy building pro?les,aluminium alloy industrial pro?les,aluminium alloy extruded bars(round and square), aluminiumalloy aerospace pro?les, aluminiumalloy PV frames
/ Natural Harmony Co-creating a New Ecological Era
In accordance with ourGreenhouse Gas Emissions Targets and Implementation Plan, we have implemented precise strategies toenhance our ability to respond to climate change risks. Focusing on three main areas—electricity decarbonization, direct emissionsreduction, and recycling—we have deeply integrated these efforts into various stages of production operations. Supported bymeasures such as increasing renewable energy usage and energy-saving technological upgrades, we aim to achieve the annualabsolute reduction in greenhouse gas emissions and meet our medium-to-short-term emissions control targets.
We rely mainly on electricity as the main energy source for production. Therefore, we are actively undertaking energy-saving andcarbon-reduction upgrades on electrical equipment and optimizing production processes to minimize carbon emissions resultingfrom energy consumption in the production flow. Additionally, we are committed to accelerating the electricity decarbonizationprocess through two key pathways: green electricity procurement and renewable energy application. While ensuring productione?ciency, we strive to achieve a more environmentally friendly and sustainable electricity supply model, providing strong momentumfor the company's green development.
Carbon Reduction Implementation Plan
Green Electricity Certi?cates
Donghai Thermal PowerAluminium Pro?le PlantNanshan Park
This Redemption Statement has been produced forSHANDONG NANSHAN ALUMINIUM CO., LTD.
byLANGFANG MINCHI NEW ENERGY TECHNOLOGY CO, LTDcon?rming the Redemption of30 000.000000I-REC Certi?cates, representing 30 000.000000 MWh of
electricity generated from renewable sourcesThis Statement relates to electricity consumption located at or inDonghai Industrial Park, Xufu Street, Longkou City, Yantai City, Shandong province
Chinain respect of the reporting period2024-01-01to 2024-12-31The stated Redemption Purpose isThe stated Redemption Purpose is All Green Electricity shown on this certi?cate is used for produc
of BMW Brilliance Automotive Co., LTD
QR Code Veri?cation
Verify the status of this Redemption Statement by scanning the QR code on the left and en
tering in the Veri?cation Key belowVeri?cation Key21877145https://api-internal.evident.app/public/certi?cates/en/zVmeKXlF86HTRm5a5cHhRNnNnE7SJjUzWyHc
v9nXhCFUY22e6RL7cOFWM1sP%2FfCg
This Redemption Statement has been produced forSHANDONG NANSHAN ALUMINIUM CO., LTD.byLANGFANG MINCHI NEW ENERGY TECHNOLOGY CO, LTDcon?rming the Redemption of170 000.000000I-REC Certi?cates, representing 170 000.000000 MWh ofelectricity generated from renewable sourcesThis Statement relates to electricity consumption located at or inDonghai Industrial Park, Xufu Street, Longkou City, Yantai City, Shandong province
China
in respect of the reporting period2024-01-01to 2024-12-31The stated Redemption Purpose is
Electrolysis of Primary aluminum process for BMW production manufacturing
QR Code Veri?cation
Verify the status of this Redemption Statement by scanning the QR code on the left and entering in the Veri?cation Key below
Veri?cation Key37945804https://api-internal.evident.app/public/certi?cates/en/VxCqBWHCWr9Zd1CSjngO9FN%2BbskLgvJdD5fJipcMHwtVIykaIT8252G8%2F%2BRX7Pnu
We actively enhance the use of green electricityin our production processes by purchasing greenelectricity certificates, thereby promoting theabsorption of green energy by local power gridsand increasing the proportion of clean energyused. In 2024, we successfully purchased 200,000green certificates, equivalent to 200 million kWhof green electricity, which represents a tenfoldincrease compared to the previous year.
We have installed photovoltaic (PV) power generation equipment with a total installed capacity of 96 MW acrossour various plants. In 2024, the generated electricity amounted to 107 million kWh, which is expected to reducecarbon emissions by approximately 100,000 tonnes of CO
e. The speci?c construction details of the PV projectsare as follows:
Green Electricity Procurement
Renewable Energy Generation
Additionally, the renewable energy generation plans for the Indonesia plant are detailed in the section on "Greenand Low-Carbon Initiatives".
We strictly adhere to theEnergy Conservation Lawand the ISO 50001 standard.The Production Equipment Management Department coordinates and rigorouslysupervises the energy-saving e?orts of all subordinate units to ensure that carbonreduction measures are e?ectively implemented. During the reporting period, coreproduction and operational sites, including the Donghai Thermal Power Plant andthe Alumina Company, successfully passed ISO 50001 external audits and wereawarded certi?cation.
Nanshan Aluminium Production EquipmentManagement DepartmentEnergy Group Leaders and Deputy Leaders ofSubordinate Production and Operation UnitsHeads of Various Functional Departments andWorkshops
Energy Equipment Management
ISO 50001 Energy ManagementSystem Certi?cate
Since 2022, our Electrolytic Aluminium Company has been collaborating with the Design and Research Institute ofNortheastern University to steadily promote the energy-e?cient cell transformation project. In 2024, a total of 93cells were upgraded. As a result, the overall AC consumption for aluminium liquid was reduced by 70 kWh/t, theanode consumption decreased by 1.2 kg/t, and carbon emissions were reduced by 31,400 tonnes.Due to the substantial energy-saving and carbon-reduction bene?ts this project has brought to the company, theNational Development and Reform Commission specially provided RMB 15 million in renovation funds to supportthe continued transformation of the electrolytic cells.
Our Alumina Company completed the optimization of the post-leach additive process in 2024. This technologyreduces thermal losses from the ?nal stage of ?ash steam, thereby decreasing the overall steam consumption ofthe plant. After the modi?cation, 64,800 tonnes of steam were saved in 2024.
During the reporting period, our Electrolytic Aluminium Company implementeda heat exchanger addition project. New heat exchange stations and units wereconstructed to use plant steam for hot water heat exchange. At the same time,we optimized the pipeline layout to introduce return water from the DonghaiThermal Power Plant into the heat exchange units, achieving efficient heatexchange between the return water and steam. After the completion of theproject, it is expected to save 64,000 tonnes of desalinated water annually, withcost savings of RMB 960,000; steam consumption is reduced by 28,800 tonnesannually, saving RMB 5.76 million, with total annual savings amounting to RMB
6.72 million.
Continuous Advancement of Energy-E?cient Cell Transformation Project
Optimization of Post-Leach Additive Process at Alumina Company
Addition of Heat Exchangers in the Electrolytic Aluminium Company's Calcination Workshop
/ Natural Harmony Co-creating a New Ecological Era
The conversion assumption here is: steam standard coal consumption is 108 kg/t.
Waste Heat Recovery Device
Energy-saving and Emission Reduction Training Participation Photo
In 2024, we conducted a total of 31 energy-saving and emission reduction training sessions for employees, including training onEnergy Laws and Regulations and Energy Target and Indicator Training. The training content covered energy laws and regulations,target-setting methods, energy metering device management, and daily energy usage control techniques, aiming to enhanceemployees' energy management capabilities and ensure the successful achievement of energy-saving and emission reductiongoals.
As of the end of this reporting period, we have participated in the Carbon Disclosure Project (CDP) climate change questionnairedisclosure for three consecutive years, receiving a C-level rating in 2024. We will continue to follow best practices in the globalmetal processing industry, actively adhere to the CDP questionnaire disclosure requirements, and continuously enhance ourcompetitiveness in green, low-carbon, and sustainable business and management development.
Honours & Recognition
Our Donghai Thermal Power Plant initiated a slag removal machine retro?t, upgrading the original water-basedslag removal system to a wind-cooled dry slag machine. After the retrofit, the average flue gas temperaturedecreased by approximately 15.5℃, coal consumption was reduced by 6,888 tonnes annually, and electricitygeneration costs were reduced by about RMB 10.95 million.
Our Indonesia plant installed two waste heat recovery devices. Once fullyoperational, the equipment is expected to save approximately 40,195tonnes of steam annually and reduce standard coal consumption by4,341
tonnes per year.Additionally, our Indonesia plant added soot-blowing systems to theeconomizers of six boilers in our power plant. After the retrofit, theaverage ?ue gas temperature of the boilers dropped by 15.52℃, improvingboiler e?ciency by about 1.6%, and saving approximately 7,360 tonnes ofstandard coal annually.
Energy-saving Retro?t of Dry Slag Machines at Donghai Thermal Power Plant
Energy-saving Retro?t at our Indonesia Plant
Electrolytic Aluminium Product Carbon Footprint (Domestic)
Unit
2022 Target Emission(tCO
e/t Product)
2023 Target Emission(tCO
e/t Product)
2024 Target Emission
(tCO
e/t Product)
2025 Target Emission(tCO
e/t Product)Bauxite to ElectrolyticAluminium ProductCarbon Footprint
17.2416.6416.44 16.24
We integrate climate change responses into our corporate risk management system, strengthening climate governance by adhering tointernal risk control procedures such as theRisk and Opportunity Control Procedures. Through meticulous processes for identifying,monitoring, and managing climate-related risks and opportunities, we comprehensively identify potential climate-related risks andimplement targeted measures to mitigate their impact on operations. These measures include conducting product carbon footprintcerti?cations, improving emergency management systems, and implementing energy-saving projects. Additionally, we seize climate-related opportunities by developing high-quality recycled aluminium projects and actively adopting clean energy, aiming to establishourselves as a green benchmark enterprise in the aluminium processing industry and contribute to the sustainable development ofthe global aluminium sector.
Based on an in-depth analysis of our overall emission profile and extensive consultation with experts, we have published ourGreenhouse Gas Emission Targets and Implementation Plan. This document sets annual carbon emission targets for its alumina,aluminium rolling, plate, and foil divisions, outlines full lifecycle carbon emission goals for electrolytic aluminium products, anddetails the pathways and measures to achieve these targets. During the reporting period, Donghai Thermal Power Plant ful?lled 8.07million tonnes of carbon quotas in accordance with pilot carbon market requirements and completed carbon transactions of 480,000tonnes by the end of 2024. We did not participate in the national Certi?ed Emission Reduction (CCER) carbon credit trading.Emission TargetsProduct Emission Intensity Targets (Domestic)
Indicators & TargetsGreenhouse Gas Indicators & Targets
Achieving Carbon Peak by 2030Achieving Carbon Neutrality by 2050
Unit
2022 Target Emission
(tCO
e/t Product)
2023 Target Emission(tCO
e/t Product)
2024 Target Emission(tCO
e/t Product)
2025 Target Emission(tCO
e/t Product)Alumina Company1.891.851.83 1.81Aluminium FoilCompany
1.091.071.06 1.05Aluminium RollingCompany
0.790.780.77 0.76Medium-thick PlateCompany
1.901.891.88 1.87
Impact, Risk, and Opportunity Management
/ Natural Harmony Co-creating a New Ecological Era
The data encompasses emissions from our subsidiaries, including the Electrolytic Aluminium Company, Alumina Company, Aluminium RollingCompany, Aluminium Foil Company, and Medium-thick Plate Branch. Emissions related to the power industry and overseas factories are presentedseparately in the following table.
In 2023, the Indonesian factory, in light of its actual production and operation conditions, revisited and expanded the statistical scope for totalgreenhouse gas (GHG) emissions and emission intensity. For the ?rst time, it comprehensively incorporated emission sources such as coal-to-gasprocesses into its GHG and energy statistics and management. Moving forward, the factory will continue to carry out GHG and energy managementwork based on this expanded scope.
Indicator
Unit202220232024GHG Emission Indicators (Aluminium Products)
Total GHG Emissions (Scope 1+ Scope 2)
tCO
e9,630,1829,087,0648,455,178Scope 1 GHG EmissionstCO
e1,504,4691,534,6611,517,431Scope 2 GHG EmissionstCO
e8,125,7137,552,4036,937,747Carbon Emission IntensityAlumina CompanytCO
e/t product2.221.902.01Aluminium Rolling CompanytCO
e/t product0.570.790.74Medium-thick Plate CompanytCO
e/t product1.091.891.63Alumina CompanytCO
e/t product17.1916.6415.99Aluminium Foil CompanytCO
e/t product1.251.091.07GHG Emission Indicators (Electricity)Donghai Thermal Power PlantGHG Emissions (approximate)
tCO
e10,099,0009,656,2708,060,000GHG Emission Indicators (Overseas Plants)Total GHG EmissionsU.S. PlanttCO
e41,08834,55936,839Indonesia PlanttCO
e769,0701,909,7402,070,320
Carbon Emission Intensity
U.S. PlanttCO
e/t product0.450.450.46Indonesia PlanttCO
e/t product0.661.01
0.98
In 2024, our subsidiaries achieved the following greenhouse gas emission reduction targets per unit of product:
Additionally, the carbon footprint reduction target for electrolytic aluminium products was completed as follows:
Energy Management Indicators & Targets
This data currently includes only our subsidiaries operating within China. We will continue to enhance the management of our overseassubsidiaries, promote the adoption of the ISO 50001 Energy Management System, and, when appropriate, include their energy system coveragerates in our internal data statistics.
Subsidiary
Expected Carbon EmissionReduction Target for 2024(≤tCO
e/t product)
Actual Achievement in 2024
(tCO
e/t product)
Completion StatusAlumina Company1.89 1.67AchievedAluminium RollingCompany
0.78 0.76 AchievedMedium-thick PlateCompany
1.85 1.69 AchievedAluminium FoilCompany
1.07 1.07AchievedElectrolytic AluminiumCompany
13.15 12.44 Achieved
Subsidiary
Expected Carbon EmissionReduction Target for 2024 (≤
tCO
e/t product)
Actual Achievement in 2024
(tCO
e/t product)
Completion StatusBauxite to ElectrolyticAluminium ProductCarbon Footprint
16.4415.99 Achieved
The ISO 50001 Energy Management System coverage ratefor our manufacturing subsidiaries, excluding the newlyestablished Recycled Aluminium Company, is
%
As of the end of the reporting period
/ Natural Harmony Co-creating a New Ecological Era
The data scope includes our main production plants in China: Donghai Thermal Power Plant, Nanshan Electrolytic Aluminium Plant, NanshanAluminium Profile Plant, Alumina Company, Aluminium Rolling Company, Aluminium Foil Company, Nanshan New Materials Company, andMedium-thick Plate Branch.
We calculate the Company's annual overall energy consumption (in units of tonnes of standard coal) based on the ISO 50001 EnergyManagement System.
Energy ConsumptionEnergy ConsumptionIndicator
Unit202220232024Indirect Energy Consumption
Purchased ElectricitykWh4,884,915,5002,127,629,4002,195,841,200Purchased SteamMJ---
Direct Energy ConsumptionDieseltonnes3,6994,0114,728Raw Coaltonnes5,195,290 5,050,2334,084,426Natural Gas10,000 m?31,16227,16329,356ComprehensiveEnergyConsumption
tonnes of standard
coal
4,183,7173,789,1113,541,851Procured GreenEnergy
kWh30,000,00020,000,000200,000,000Self-Generated SolarElectricity
kWh18,804,04769,542,205107,000,000
Nanshan Aluminium Environmental Management StructureLevelGoverning BodyFunctionsReporting Frequency
Decision-Making
Board of Directors
Serve as the highest decision-making body,determining our environmental management strategy
Make resource allocation decisions
Oversee the implementation of environmentalmanagement initiatives
/
ManagementLevel
Sustainability (ESG)Committee's Safetyand EnvironmentalProtection WorkingGroup
Review environmental policies, regulations,standards, trends, and stakeholder concerns; proposeenvironmental management objectives and policiesto the Board
Supervise and guide units in managing emissions,conducting life cycle assessments, and implementinggreen manufacturing practices; implement ISO 14001environmental management system
Once every six months
OperationalLevel
EmergencyManagementDepartment
Supervise units in managing emissions, conductinglife cycle assessments, and implementing greenmanufacturing practices
Implement ISO 14001 environmental managementsystem
Break down management objectives and superviseproduction units through periodic assessments
Weekly
We strictly adhere to theEnvironmental Protection ManagementMeasuresand focus on the eight core management areas and fivekey assessment indicators established by the Company. We conductregular, comprehensive, and in-depth on-site inspections andevaluations of all our subsidiaries. The results of these evaluations aredirectly linked to the performance of senior management, motivatingrelevant personnel to e?ectively implement and continually optimizeenvironmental management practices.
4.2
EnvironmentalManagement
We continue to enhance our environmental management frameworkand systems. Leveraging a comprehensive pollutant controlmechanism, we have established a full-cycle management systemencompassing wastewater treatment, air purification, solid wasteclassification, and hazardous waste management. This ensuresthat all processes comply with local regulations and minimizesenvironmental impacts during production.
We strictly adhere to environmental protection laws and guidelines in our operating regions. We have implemented internalpolicies such as theEnvironmental Protection Management Measuresand theNanshan Aluminium Environmental InformationDisclosure System to provide clear standards and guidance for environmental management.We have established a robust environmental management system, with the ESG Committee— comprising the Chairman and seniormanagement—as the highest decision-making body responsible for overall environmental planning and decisions. The Safetyand Environmental Protection Working Group under the ESG Committee is tasked with executing and supervising environmentalinitiatives, ensuring e?ective implementation of environmental measures.
Governance
Five KeyEnvironmental
PerformanceAssessment
Indicators
Production SiteEnvironmentalManagement
Compliance with
Waste Gas andWastewater EmissionStandardsStandardizedManagement of
Solid WasteComplete EnvironmentalProtection Documentation
Implementation ofPollution DischargePermit Management
/ Natural Harmony Co-creating a New Ecological Era
To comprehensively enhance our environmental management capabilities and accurately identify environmental risks andopportunities, we systematically conduct environmental risk and opportunity assessments. Through in-depth analysis, we clarify thebusiness and ?nancial impacts of various risks and opportunities on the company. Based on these assessments, we develop targetedmanagement strategies to support our sustainable development.
Risk, Opportunity, and Impact Analysis
Strategy
EnvironmentalManagementRisks
Risk Description
TimeHorizon
Business Impact
FinancialImpact
Risk Responding Measures
ComplianceRisk
Stricterenvironmentalregulationsglobally may leadto increased costsor productionstoppages forrecti?cation.
Short,Medium,Long
Increasedcompliance costs;non-compliantemissions maylead to productioninterruptions
Environmental?nes,Increased costremodelling
Establish regulatorymonitoring mechanisms.
Implement managementmeasures to meetcompliance requirements.
Conduct training forall employees onenvironmental regulations.
Proactively reduce emissions
Environ mentalLitigation Risk
Potentialenvironmentalpollution maylead to class-action lawsuitsfrom surroundingcommunities.
Short,Medium,Long
Legal disputescausing workstoppage forrecti?cation orcompensationexpenses. Litigationmay result inreputational impacton the Company
Lawsuitexpenses.Compensationsurroundingresidents.
Install online monitoringequipment.
Establish communicationmechanisms withsurrounding communities.
EnvironmentalManagementOpportunities
OpportunityDescription
TimeHorizon
Business Impact
FinancialImpact
Opportunity RespondingMeasures
BrandReputationOpportunity
Recognition fromgovernmentenvironmentalawards orcustomeracknowledgmentdue to excellentenvironmentalmanagementpractices.
Short,Medium,Long
Focus onenvironmentalpolicies andinnovations inenvironmentaltechnology,improveenvironmentalperformance,earn customerbrand reputationrecognition andgovernmentfunding support
Increasedorders leadingto higherrevenue.Tax bene?ts orgovernmentenvironmentalfundingsupport.
Regular disclosure throughESG reports, o?cialwebsite, and other channelsto enhance environmentalinformation disclosure andstrengthen the ESG brandimage.
Actively respond toenvironmental policies, andpromote green productionand sustainable operations.In response to the identi?ed risks and opportunities, we have clari?ed the core direction for environmental management. We optimizethe management framework base on the ISO 14001 Environmental Management System, and regularly hire third-party professionalorganizations for environmental management audits and guidance to ensure comprehensive compliance with environmentalregulations. In addition, we actively conduct employee training and procedural drills to continuously enhance employees'environmental awareness, ensuring they can pro?ciently master the key skills required in daily operations.
Management Strategy
Nanshan Aluminium Environmental Management Risk List
Nanshan Aluminium Environmental Management Opportunity List
In terms of environmental protection management, we adhereto the principle of "complying with regulations, protecting theenvironment, saving energy and reducing consumption, andcontinuous improvement". We strictly ful?ll our environmentalmanagement responsibilities. Furthermore, we follow the ISO14001 Environmental Management System, clarifying the eightkey dimensions of the environmental management system,and conducting rigorous internal management. During thereporting period, we successfully passed all external audits forthe ISO 14001 Environmental Management System certi?cationand completed the certi?cate renewal process.
We place high importance on ecological environmentalprotection. We regularly conduct detailed checks of theenvironmental management facilities, online monitoringequipment, and other systems in each workshop, in referenceto environmental impact assessment approval documents,pollution discharge permits, and process flows. This ensuresthat pollutants are effectively collected and disposed ofin compliance with regulations, and guarantees the fullimplementation of environmental protection requirements. Fordetails on our key e?orts in emissions, waste, water resourcemanagement, and ecosystem protection during the reportingperiod, please refer to the "Protecting Nature" section.At the same time, we focus on the impact of pollutantemissions on local community residents. If any feedback orconcerns are raised by the community, we quickly set up aspecial team to investigate. If any non-compliance is con?rmed,immediate corrective actions are implemented, and we ensurethat relevant updates are communicated back to the residents.During the reporting period, no major environmental impactwas caused to residents or communities, and all environmentalfeedback was e?ectively and promptly resolved.Additionally, we have appointed professional third-party agenciesto act as environmental guardians. These agencies strictly follow
the operational laws and regulations such as thePollutionDischarge Permit Management Regulations,Air PollutionPrevention and Control Law,andSolid Waste Pollution Preventionand Control Law. They conduct comprehensive on- siteenvironmental audits at our subsidiaries, including the ElectrolyticAluminium Plant, Aluminium Arterials Factory, Medium-thickPlate Company, Aluminium Rolling Company, Aluminium FoilCompany, Alumina Company, and Donghai Thermal Power Plant,at varying frequencies such as weekly, monthly, quarterly, andannually.During the reporting period, third-party agencies conductedregular risk identi?cation based on environmental protectionregulations, environmental impact assessment documents,and pollution discharge permits. They carried out a total of478 special inspections across various dimensions such asfile management, pollutant management, online equipmentoperation, and waste gas treatment facilities. These inspectionstook place at least 6 times per week on average. As a result, 722areas for improvement were identi?ed and promptly addressedwith corrective notices. We ensured a 100% completion ratefor these corrections, strengthening the foundation of ourenvironmental protection efforts and establishing a solidenvironmental defence.
Environmental Management System
Normalised Environmental Management
Eight KeyDimensions of theEnvironmentalManagementSystem
The cumulative number of special inspections carried out
times
The ?nal completion rate of recti?cation achieved
%
Goal
Management
ProductionManagementEquipmentManagementTechnologyManagementStandardization
ManagementIndicatorManagement
PerformanceManagement
EnvironmentalaccidentsManagement
/ Natural Harmony Co-creating a New Ecological Era
We actively conduct various environmental protection training and drills to enhance employees' understanding of local regulationsand company policies. This ensures that employees complete environmental tasks in accordance with relevant managementstandards and achieve pollution discharge compliance and reduction.In 2024, we invited external expert teams to organize 12 training sessions on local laws and regulations for our subsidiaries,covering a total of 216 employees. Additionally, each subsidiary conducted 134 independent environmental protection trainingsessions, with 7,200 participants in total. This greatly enhanced the environmental management awareness and professional skillsof our environmental management sta?.
Environmental Protection Training
In addition, we have invited professional third-party agencies to conduct 4 emergency drills, covering simulated emergencyresponse procedures for situations such as hazardous waste leakage, failure of environmental protection facilities, and sewagepipeline leaks. These drills comprehensively improve employees' ability to handle emergency events.
Environmental Protection Specialized Training
We have joined the Shandong Province "Zero Waste City" initiative, continually reduced waste discharge levels and striving tobecome a model enterprise for waste management in Shandong. During the reporting period, the Medium-thick Plate Companywas recognized for its excellent waste management results and was awarded the titles of "Yantai City-level Zero Waste Factory" and"Shandong Province-level Zero Waste Factory".
Honours & Recognition
We place great importance on environmental risk management,strictly adhering to the laws and regulations of the locationswhere we operate. We regularly conduct environmental riskidentification and assessment. In the event of any violations,we immediately activate our response mechanism and quicklyimplement remedial and corrective actions. For identifiedhigh-risk items, we implement regular risk monitoringto ensure that these risks remain under control, activelyreducing environmental risks and fulfilling our environmentalresponsibilities.
In the process of project application, initiation, and researchand development, we thoroughly consider the environmentaland social impacts as well as the interests of stakeholders.The assessment dimensions include energy conservation andemission reduction, resource utilization, environmental impactevaluation, and compliance with environmental regulations.This approach aims to ensure the sustainable development ofprojects while maximizing their economic and social bene?ts.
Environmental Risk Assessment & Management Dimensions
Impact, Risk, and Opportunity Management
Compliance with Environmental RegulationsEnvironmental Impact Assessment
Resource UtilizationEnergy Conservation and Emission Reduction
Ensure that the project complies with national andlocal environmental regulations and standards toavoid legal risks and costs arising from violations ofenvironmental protection regulations.
During the project application and initiation phases,an environmental impact assessment will beconducted to analyze the potential environmentalimpacts of the project and develop correspondingprevention and response measures.
Assess the e?ciency and sustainability of theproject's use of natural resources. By optimizingresource usage, reducing resource waste, andensuring that the project's resource consumptionmeets the requirements of sustainable development.
In the design and implementation phases of theproject, special attention will be given to theapplication and promotion of energy-saving andemission-reduction technologies. Using energy-e?cient equipment and processes, energyconsumption and carbon emissions will be reducedto minimize environmental impact.
/ Natural Harmony Co-creating a New Ecological Era
This data scope currently includes only our subsidiaries operating in China. We will continue to strengthen the management of our overseassubsidiaries, promote strict adherence to the ISO 14001 Environmental Management System for environmental management, and will incorporatetheir environmental management system coverage into our internal data reporting scope in due course.
For the environmental management objectives of Nanshan Aluminium's Indonesian subsidiary, please refer to the section titled "Feature:
Deepening Global Expansion Strategy – Building a New 'Nanshan'".
We strictly adhere to the pollution discharge management requirementsset by regulatory authorities in both domestic and international operatinglocations. In accordance with the ISO 14001 Environmental ManagementSystem, we implement compliance management for waste gas,wastewater, and solid waste, and actively carry out pollution preventionand control measures at all production stages. We follow the philosophyof "promoting clean production and achieving sustainable development".Based on ensuring compliance with discharge standards, we focus onreducing emissions at the source and promoting recycling, striving tominimize the environmental impact. During the reporting period, we didnot experience any environmental incidents or violations, nor was thecompany subject to any environmental penalties.
In 2024, we successfully met our environmental management targets, achieving 100% compliant emissions for waste gases,wastewater, and solid waste. Concurrently, we are advancing our long-term environmental objectives by implementing variousemission reduction initiatives, as detailed in the "Protecting Nature" section.
Indicators & Targets
As of the end of the reporting period
Except for the newly established RecycledAluminium Company, the ISO 14001Environmental Management Systemcoverage for our manufacturing subsidiarieswas
87.5
%
Environmental Management Objective
Air Pollutants (ParticulateMatter, Nitrogen Oxides,Sulphur Dioxide, etc.)
Solid WasteWastewater TreatmentReduce air pollutant emissionsby 2% by 2026, using 2021 asthe baseline.
Ensure 100% compliantdisposal of solid waste,recycle aluminium scrapsand blocks through remeltingand regeneration, and utilizealuminium slag to producealuminium ingots, focusing onwaste reduction.
Achieve 100% compliantwastewater discharge, increasethe reuse of treated wastewater,and reduce consumption offresh water resources.
Our Long-Term Environmental Management Objectives
Building upon our short-term goals, we aim to achieve ultra-low emissionsof waste gases and "zero discharge, full recycling" of wastewater across oursubsidiaries. This will be accomplished through comprehensive upgrades andtransformations of our wastewater and waste gas treatment facilities.
Our primary pollutants include nitrogen oxides, sulphur dioxide, particulate matter, COD, ammonia nitrogen, total phosphorus,total nitrogen, as well as scrap aluminium and discarded packaging materials. We have established comprehensive environmentalmonitoring programmes in accordance with environmental impact assessments and pollution discharge permits. At the end of thereporting period, we conducted a thorough review of these programmes and risk management measures, ?nding no signi?cantde?ciencies. Additionally, we have not faced major administrative penalties or criminal liabilities due to pollutant emissions.
We strictly adhere to theLaw on Air Pollution Prevention and Controland the Comprehensive Emission Standard of Air Pollutants,as well as relevant overseas regulations in areas where we operate. We have developed anAir Pollutant Emission ControlProcedure to guide our units in e?ectively managing waste gas emissions and ensuring full compliance.All our units are equipped with online monitoring systems, enabling continuous assessment of emissions to ensure they remainwithin permissible limits. Furthermore, we enforce stringent monitoring of unorganised emission points at production sites,ensuring that any spillage is promptly recovered, thereby preventing secondary pollution.Our Donghai Thermal Power Plant complies with theEmission Standards for Thermal Power Plantsand actively employs advancedwaste gas treatment facilities to minimise emissions. In 2024, the plant's self-monitoring results met all required standards.We are dedicated to reducing emissions of volatile organic compounds, particulate matter, nitrogen oxides, sulphur dioxide, andother harmful gases. In 2024, we invested in new waste gas treatment facilities, including dust collectors, dry powder injectionsystems, zeolite rotors, activated carbon adsorption units, SCR
denitri?cation systems, pulse bag ?lters, RTO
, RCO
, and DTO
,to further reduce emissions. Our Indonesian plant installed monitoring equipment for carbon dioxide and mercury content,utilising IoT technology to monitor emissions in real-time and adjust processes accordingly.
We work to enhance our environmental protection efforts, strivingto minimize the environmental impact of our production processes.We rigorously assess and address the e?ects on ecological diversity,ensure the compliant disposal of wastewater, waste gases, solidwaste, and hazardous waste, promote the e?cient recycling of waterresources, and actively engage in ecosystem conservation. Theseinitiatives contribute to the development of an environmentallyfriendly society.
Emissions and Waste
Waste Gas Management
SCR: Selective Catalytic Reduction.
RTO: Regenerative Thermal Oxidizer.
RCO: Regenerative Catalytic Oxidizer.
DTO: Direct Thermal Oxidizer.
4.3
ProtectingNature
/ Natural Harmony Co-creating a New Ecological Era
In 2024, we proactively embraced environmental protection principlesby upgrading our ?uorocarbon spraying production line equipment,installing environmental treatment facilities such as comprehensivezeolite rotors, four-stage filtration, and RTO. At low temperatures,the zeolite rotors capture VOC molecules from organic waste gases,allowing for direct discharge of the treated air. The zeolite rotors,which adsorb signi?cant amounts of VOCs, are puri?ed through high-temperature desorption and thermal oxidation processes, resulting inpuri?ed gases that can also be directly emitted. The implementationof these new devices has signi?cantly reduced waste gas emissionsfrom our production line.During the reporting period, our waste gas emissions consistently met compliance standards. Detailed waste gas emission indicatorsare presented in the table below:
We strictly adhere to national laws and regulations such as theSolid Waste Environmental Pollution Prevention and Control Lawand theTechnical Speci?cations for the Collection, Storage, and Transportation of Hazardous Wastes, while also considering the environmentalprotection requirements of our overseas operations. We have established a series of internal management systems, including theNanshan Aluminium Solid Waste Standardized Management Measures. Upholding the environmental core concept of "source reduction,in- process control, end-of-pipe treatment, and recycling", we follow the fundamental principles of "reduction, resource utilization, andharmlessness" to meticulously classify and e?ciently handle solid waste, ensuring compliance at every stage.Furthermore, we are dedicated to the recycling and circular utilization of non-hazardous waste. Through processes such as meltingand regeneration, we transform waste materials like aluminium scraps, aluminium blocks, and aluminium dross, as well as externallycollected waste cans, into valuable recycled aluminium ingots, thereby reducing the generation of solid waste at the source. In 2024,we successfully completed the high-quality recycled aluminium project, achieving an annual recycling and reduction of 106,900tonnes of scrap aluminium, resulting in a production capacity of 100,000 tonnes of aluminium water per year and signi?cantly loweringdownstream production costs.
The data encompasses Donghai Thermal Power Plant, Nanshan Electrolytic Aluminium Plant, Nanshan Aluminium Pro?le General Plant, AluminaCompany, Aluminium Rolling Company, Aluminium Foil Company, Aluminium New Materials Company, Medium-thick Plate Branch, as well asmajor operational plants in Indonesia and the United States.
In 2024, our Indonesian plant continued to enhance investments in environmental management and pollutant reduction. With the expansion ofour large-scale production, the plant's power facility improved SO
emission data accuracy through stable operation of desulfurization equipmentand real-time online monitoring. Consequently, SO
emissions saw a significant decrease in 2024, as previous figures for 2022 and 2023 wereestimated based on guidelines rather than direct measurements.
Particulate matter from sintering furnace ?ue gases primarily originates from the Indonesian plant's sintering furnace. In 2024, we adjusted ourcalculation method to re?ect actual production time, leading to a revision of 2023 data. Due to ongoing capacity expansion at the Indonesianplant, emissions in 2023 and 2024 showed a slight increase compared to 2022.
Solid Waste Management
Upgrades to Fluorocarbon Spraying Production Line Equipment
Waste Gas Treatment Equipment
Waste Gas Emission Indicators
Emission IndicatorUnit202220232024Nitrogen Oxides (NOx)Tonnes3,4843,6983,707Sulphur Dioxide (SO
)Tonnes7,8016,3861,407
Non-Methane Total Hydrocarbons (NMTHC)Tonnes1435947Sintering Furnace Flue Gas Particulate MatterTonnes72342.14
Particulate Matter (PM)Tonnes838419349
Waste aluminium chips,desulfurisation gypsum, red mud,etc.
Recycling of aluminiumchips and edge materials viamelting furnace.
Establishing red mud stackingsites for dry storage of redmud.
Aluminium ash, wastelubricating oil, emulsion-containing waste, wastediatomaceous earth, etc.
Pre-treatment of hazardouswaste for comprehensiveutilisation or emissionreduction.
Remaining hazardous wasteentrusted to quali?ed unitsfor compliant disposal.
In 2024, our solid waste emission indicators are as follows:
Solid Waste Generation and Utilisation
Total Solid Waste GenerationUnit202220232024Total Solid Waste GenerationTonnes5,263,7473,886,574
3,351,212
General Solid Waste GenerationTonnes5,117,3283,800,4393,238,201Total General Solid Waste RecycledTonnes3,828,6153,792,6423,180,447Hazardous Waste GenerationTonnes86,419 86,221170,702
Total Hazardous Waste RecycledTonnes85,928 86,315
170,846
Entrusted to sanitationdepartments for regularcollection and classi?eddisposal.
General WasteHazardous WasteDomestic Waste
The data encompasses Donghai Thermal Power Plant, Nanshan Electrolytic Aluminium Plant, Nanshan Aluminium Pro?le General Plant,Alumina Company, Aluminium Rolling Company, Aluminium Foil Company, Aluminium New Materials Company, Medium-thick Plate Branch, aswell as major operational plants in Indonesia and the United States.
We comply with the local laws and regulations of our operating locations for the disposal of red mud. The quantity of red mud generated is notincluded in the total solid waste statistics. Based on this principle, we have adjusted the total solid waste ?gures for 2023.
In 2024, the increase in hazardous waste generation was due to the following reasons: 1) We disposed of some waste emulsi?ed liquids from thesealed construction zone as hazardous waste; 2) The company introduced new process technologies, increasing the concentration of vanadiumcompounds in bauxite, which were then directed to the red mud repository, resulting in better red mud reduction.
As the hazardous waste surplus from 2022 was recycled in 2023, the amount of recycled hazardous waste exceeded the amount generated.
/ Natural Harmony Co-creating a New Ecological Era
We strictly adhere to theWater Pollution Prevention and Control Lawand other relevant local laws and regulations, and haveestablished internal management systems such as theWastewater Emission Control Procedures. Each of our production units hasbuilt internal wastewater treatment facilities in line with their respective production processes, ensuring compliance with wastewaterdischarge standards. In addition to treating conventional pollutants such as ammonia nitrogen, COD, and BOD, we have alsoincorporated technologies such as activated carbon ?ltration and multi-media ?ltration to conduct advanced treatment of specialpollutants, including heavy metals and waste oils, e?ectively reducing the pollutant concentration in the emissions.Our management goal for wastewater is "zero discharge, full recycling". We not only ensure compliant wastewater discharge but arealso committed to improving the rate of wastewater recycling. In 2024, our Indonesia plant achieved zero discharge of productionwastewater, and industrial wastewater, red mud reservoir wastewater, and wastewater from the Donghai Thermal Power Plant wereall treated and reused in alumina production.During the reporting period, we began constructing a 6,500 cubic meter wastewater treatment plant, which is expected to becompleted in May 2025 and put into use by the end of the same year. Once completed, this project will be able to treat the brine,domestic wastewater, industrial wastewater, and acid-alkali wastewater discharged by subsidiaries in our Donghai park, therebyimproving our capacity to manage polluted wastewater and reducing the discharge of wastewater pollutants.During the reporting period, we achieved 100% compliance in wastewater discharge, with the relevant indicators shown in the tablebelow:
Water resources are an indispensable key element in aluminium processing, and their proper planning and management arecrucial for the production operations of us. We strictly follow theWater Lawand theWater Withdrawal Permit and Water ResourceFee Management Regulations, placing water resource risk prevention and control as a priority. Through scienti?c management, wecomprehensively mitigate the potential risks that water resources may pose to production operations.
Wastewater Emission Data
Emission ItemUnit202220232024Wastewater Discharge10,000 tonnes978781Filter Press Water10,000 tonnes239518699
Wastewater Recycled10,000 tonnes130456476CODkg57,39223,95321,719Ammonia Nitrogenkg615807761
Wastewater Emission Management
Water Resource Management
The data encompasses Donghai Thermal Power Plant, Nanshan Electrolytic Aluminium Plant, Nanshan Aluminium Pro?le General Plant,Alumina Company, Aluminium Rolling Company, Aluminium Foil Company, Aluminium New Materials Company, Medium-thick Plate Branch, aswell as major operational plants in Indonesia and the United States.
The Company's alumina production growth led to a signi?cant increase in ?lter press water.
We regularly conduct water resource risk assessments for our subsidiaries, evaluating dimensions such as the probability ofoccurrence, severity of impact, and risk level. The assessment covers the Nanshan Industrial Park and Donghai Industrial Park.By analysing water consumption, we precisely identify high-water-consuming processes, from which we develop and implementtargeted water-saving measures. We continually optimise the water resource usage loop to ensure stable and e?cient water supplyfor production operations. Based on the evaluation results, we have prepared the 2024 water balance report.
In our operations, we strictly adhere to the relevant local laws and regulations, always placing great emphasis on the rational useand management of water resources. We are highly dedicated to the conservation and e?cient use of water resources, incorporatingthis principle throughout the entire production process. Our water usage comes from municipal water, rainwater, and wastewaterrecycling.To continuously reduce the use of fresh water and improve water efficiency, we have set annual water usage targets and guidedeach production unit to break them down into monthly water usage plans. The Indonesian plant has reduced its per-unit waterconsumption while successfully meeting its water usage targets, thanks to the promotion of water resource recycling and waterconservation awareness.
The Indonesian plant conducts daily monitoring of water quality indicators and hires a third- party organization to conduct monthlywater quality tests. The water quality is continuously tracked to ensure it remains within the required range. The water supply systemhas two independent lines, with one acting as a backup, signi?cantly reducing the risk of water supply interruptions in the park.The US plant primarily uses municipal water, and after a careful evaluation by an expert team, no water resource risks have beenidenti?ed.
Water Resource Risk Management
Water Resource Consumption
Proactively issue waterresource risk warnings andannouncements.
Conduct transparent andcompliant assessments andresearch on potential waterresource risks.
Continuously monitor waterdischarge and water quality,controlling the likelihoodof potential water resourcerisks through proactivewater resource risk controlmeasures.
Regularly disclose waterpollution dischargemonitoring results andreduction plans, ensuringtransparent management ofwater resource risks.
Key Focus Areas of Water Resource Management: Pre-event, During-event, and Post- event
Pre-eventDuring-eventPost-event
/ Natural Harmony Co-creating a New Ecological Era
To ensure stable water supply for the East China Power Plant's generators and effectively prevent supply risks and productionstoppages, we have actively introduced seawater desalination equipment, which alleviates the pressure on the local water supplynetwork. In 2024, the seawater desalination equipment operated for a cumulative 28,615 hours, producing approximately 3.65 milliontonnes of freshwater, with a capacity utilization rate of about 33%. This provided strong water resource support for production.Furthermore, the East China Power Plant upgraded the 330,000-unit hydraulic slag removal system to a dry air-cooling slag removalsystem, further reducing water consumption.In terms of water conservation and recycling, we continue to implement a comprehensive strategy, always adhering to the principlesof "multiple uses of water, hierarchical use, and cascading use." Through technological upgrades and recycling, we are promoting therational use of water resources. During the reporting period, we continuously optimized and upgraded our internal water circulationsystem, signi?cantly reducing the consumption of fresh water by achieving rainwater and wastewater recycling.
The water resource consumption indicators of Nanshan Aluminium during the reporting period are shown in the table below:
Water Resource Consumption Indicators
IndicatorUnit202220232024Total Water Withdrawal10,000 m?482737715Total Water Consumption10,000 m?493760745? Total Volume ofRecycled and ReusedWater
10,000 m?112330
The data encompasses Nanshan Electrolytic Aluminium Plant, Nanshan Aluminium Pro?le General Plant, Alumina Company, Aluminium RollingCompany, Aluminium Foil Company, Aluminium New Materials Company, Medium-thick Plate Branch, as well as major operational plants inIndonesia and the United States. The Company's total water consumption withdrawals do not involve surface or groundwater withdrawals.
Power Plant Wastewater RecyclingRainwater Collection at Indonesian Mining Site
The East China Power Plant recycles wastewaterfrom the power plant's reuse water pool foralumina production, providing 1,000 tonnesof water per day, which reduces the use ofapproximately 350,000 m? of fresh water annually.
The Indonesian plant has installed rainwatercollection equipment at the local aluminamining site, enabling the collection and reuse ofapproximately 100,000 m? of rainwater annually.
We strictly adhere to theWildlife Protection Lawand fully refer to theChina's Biodiversity Protection White Paperin formulatingtheNanshan Aluminium Biodiversity Protection Management Procedures. We manage and control production and daily activitiesto ensure that production and operations do not impact the ecosystem or harm biodiversity, making every e?ort to safeguardprecious biological resources and leave a thriving green home for future generations. As of the end of the reporting period, we havenot been involved in production activities or held facilities within ecological protection red lines, nature reserves, or other areaswith important ecological functions or sensitive and fragile environments.We conduct annual biodiversity risk assessments, evaluate the a?ected areas, and develop corresponding preventive measures. Weissue advance warnings and take preventive actions for potential risks, continuously protecting the local ecological environment.In 2024, we conducted comprehensive biodiversity risk assessments for the Alumina Company, Electrolytic Aluminium Company,Aluminium Rolling Company, Medium-thick Plate Company, and Yantai Donghai Aluminium Foil Company, and compiled the2024Shandong Nanshan Aluminium Co., Ltd. Biodiversity Risk Assessment Report, which details the affected species and potentialrisk sources at each site. For identi?ed risks, we developed response plans and implemented targeted ecosystem protection andmanagement to lay a solid foundation for local ecological protection.In the planning and construction of new projects, we strictly comply with relevant government laws and regulations on ecosystemprotection. Through biodiversity assessments, we fully consider the surrounding biological environment and issues such as animalpassageways. During the reporting period, we conducted a biodiversity assessment for the newly constructed 2-million-tonnealumina and supporting projects at our Indonesian plant, ensuring that the project would not negatively impact the surroundingenvironment. In daily operations, we strictly ensure the compliance of related wastewater and waste gas emissions and activelyencourage employees to raise awareness of biodiversity protection. We have established strict regulations against the hunting ofwild animals and reduced human disturbances, such as ?shing, grazing, and logging.
Nanshan Aluminium Biodiversity Management Procedures
Ecosystem Protection
All construction projects at NanshanAluminium must entrust quali?edunits to conduct environmental impactassessments and identify the substantialimpacts on biodiversity
A biodiversity action plan has beenformulated, publicly released, regularlyupdated, and shared with stakeholders
We have developed managementprocedures for wastewater, waste gas,noise, solid waste, oil products, andchemicals to reduce negative impacts onbiodiversity
For any invasive species unintentionallyintroduced through company operations,the safety and environmental departmentsof each company should assess the risks,implement control measures, and preparebiodiversity assessment reports
/ Natural Harmony Co-creating a New Ecological Era
GovernanceWe have established a circular economy governance structure composed of the Board of Directors, the management team of theRecycled Aluminium Company, and its subordinate departments, ensuring the Board and management team provide oversight,guidance, and support for the relevant work.In response to the national14th Five-Year Plan for Circular Economy Developmentand to e?ectively implement the "Carbon Peakingand Carbon Neutrality" policy, we established the Recycled Aluminium Company in 2021 to promote the recycling and utilization ofaluminium resources. We primarily focus on recycled aluminium products for upgrading and comprehensive utilization, with the mainsources of recovery being can bodies, can lids, factory process waste from automotive sheet production, market-recycled aluminiumcans, and additional aerospace material milling scraps.
In terms of professional competence and team building, we have gathered a technical team with a strong professional background,covering multiple ?elds such as materials science, metallurgical engineering, and environmental engineering, dedicated to tacklingand innovating industry-leading technologies. Through collaborations with universities and research institutions, we are exploringintegrated technology development for the "scrap aluminium - pretreatment - recycled aluminium - realloying - high-end aluminiumalloy products" process, continuously advancing green recycling technologies for high-end aluminium alloy materials.
4.4
CircularEconomy
Against the backdrop of achieving the "Carbon Peaking and Carbon Neutrality"goal, green and low-carbon development has become an imperative, andthe development of recycled non-ferrous metals is gaining momentum.Aluminium, as a green energy-carrying metal, is an essential material forachieving energy conservation, emission reduction, and a green low- carboneconomy. As the ?rst company in China to obtain ASI certi?cation for the entirealuminium industry chain, we place great importance on the applicationand development of the circular economy within the aluminium value chain.We have established a top-down circular economy governance structure,comprehensively identifying the opportunities and potential challenges underthe circular economy framework, and have implemented a series of innovativeinitiatives to promote the efficient construction of the aluminium industry'scircular supply chain. By optimizing resource allocation and improving resourceutilization e?ciency, we are committed to achieving the goals of the circulareconomy and contributing to the sustainable development of the industry.
Level
GoverningBody
Functions
ReportingFrequencyDecision-making Level
Board ofDirectors
As the highest decision-making body, determines the strategic
direction for the circular economy Identi?es and assesses risks related to the circular economy Makes resource allocation decisions
ManagementLevel
ManagementTeam ofRecycledAluminiumCompany
As the core manager of circular economy activities, establishes
internal technical transformation and problem- solving teams
to enhance the core competitiveness of recycled aluminium
productsDevelops action plans, supervises the implementation of circular
economy strategies Allocates resources based on project prioritiesMonitors market trends and demand, and provides advice to the
Board of Directors
Annual planningconducted bi-annually. Projectprogress updatedmonthly. Fastimprovementprojects plannedquarterlyExecutionLevel
ProductionDepartmentof RecycledAluminiumCompany
As the core executor of circular economy activities, fully manages
the recycled aluminium workshopPrepares and improves the technical standards for recycling
aluminium plant processesEnhances the internal economic responsibility assessment system
to improve economic bene?ts
Monthly
Strategy
To continuously strengthen the competitiveness of our circular economy and ensure the comprehensive implementation of relatedinitiatives, we conduct circular economy risk identi?cation and assessment, clarifying our business and ?nancial impacts, andformulate management strategies based on the assessment results.
Nanshan Aluminium Circular Economy Risk List
CircularEconomy Risks
Risk Description
TimeHorizon
Business ImpactFinancial ImpactRisk Responding Measures
Supply ChainAdjustmentRisk
Reliance on external scrapaluminium recyclingchannels may result inunstable supply, especiallyin markets where the scrapaluminium recycling systemis not yet mature. The riskof raw material shortagesor price ?uctuationsis higher. Additionally,we need to quicklyestablish cooperationmechanisms with recyclersand consumers, andcoordinating costs andtimelines may exceedexpectations.
Short
Fluctuations inscrap aluminiumrecycling channelsmay lead toshortages orexcess supply ofraw materials,disruptingproductionschedulesand a?ectingdelivery timesand customersatisfaction.
In immature recycling
markets, procurement,sorting, transportation,and storage costs forscrap aluminium maybe higher than forprimary aluminium,which could increaseoperational costs in theshort term.Scrap aluminium prices
are highly in?uencedby market supply anddemand, policies (suchas recycling subsidies),and internationalcommodity prices,potentially causingpro?t volatility.
Establish a proprietary
recycling network whileforming long-termpartnerships with multiplescrap aluminium suppliers todiversify supply risks.Closely monitor policy
developments (e.g., recyclingsubsidies, carbon emissionpolicies) and adjust supplychain strategies in advance.Build close cooperation
with downstream customers(e.g., automotive, packagingindustries) to ensurealignment between marketdemand and supply capacity.
Policy andRegulation Risk
Governments may raisemandatory recyclingtargets or carbon emissionstandards. If the companyfails to plan, it may face?nes or market entryrestrictions. Additionally,international "carbontari?" policies (e.g., EUcarbon border adjustmentscheme) could impact ourexport-oriented business.
Short
If policiesmandate higherrecycling ratesfor aluminiumproducts, wewill need toexpand ourrecycling networkor increasetechnologicalinvestments,which may bedi?cult to achievein the short term.
If policies mandate
the establishment ofa recycling system,we will need to investheavily in building arecycling network andsorting facilities.
Establish a dedicated policy
research team to closelymonitor domestic andinternational policy trends(e.g., carbon emission policies,recycling regulations) andformulate response strategiesin advance.Accelerate the transition to
recycled aluminium businessto reduce reliance on primaryaluminium production andmitigate the impact of carbonemission policies.
TechnologyRisk
If the puri?cationtechnology for recycledaluminium cannotbreak through, it maylimit the developmentof high-value-addedproducts. Speci?cally,multiple cycles ofaluminium recycling maylead to complex alloycompositions, and in thelong term, we may face a"degraded cycle" (unableto be used in high-end?elds).
Long
If downstreamcustomers raiseperformancerequirementsfor recycledaluminium, wemay need toreposition ourproducts, facing amarket adaptationperiod or possiblylosing customersto competitors.
If the degraded
cycle preventsrecycled aluminiumfrom meetingthe performancerequirements ofhigh-end ?elds (e.g.,aerospace, automotivelightweighting), wemay have to rely moreon low-value-addedproducts, reducingpro?t margins.
Invest in R&D for advanced
puri?cation and alloyseparation technologiesto delay the impact of thedegraded cycle, improvethe performance of recycledaluminium, and expand high-end application areas.Establish a re?ned scrap
aluminium sorting andclassi?cation system to reduceimpurity accumulation anddelay the onset of degradedcycles.
Risk, Opportunities, and Impact Analysis Results
/ Natural Harmony Co-creating a New Ecological Era
Nanshan Aluminium Circular Economy Opportunity List
CircularEconomyOpportunities
Opportunity Description
TimeHorizon
Business ImpactFinancial Impact
Seizing theGreen MarketAdvantage
The demand for low-carbonaluminium in downstreamindustries (e.g., automotive,packaging) is rapidly growing.By positioning ourselves earlyin recycled aluminium, we cancapture market share in the"green procurement" sector.
Short,medium
Attract high-quality
customers who focus onsustainability, optimizingcustomer structure, andreducing dependenceon traditional low-pro?tmarkets.By o?ering low-carbon or
zero-carbon aluminium,we can stand out in acommoditized market,creating a unique marketpositioning.
Increased business revenue: As
customers trust our environmentalperformance in recycled aluminiumproducts, they are more likely to chooseNanshan Aluminium as a partner,leading to higher business revenue.This trust can translate into long-termcooperation agreements, providing astable income stream for the company.Enhanced bargaining power: As
customer trust grows, we maygain stronger bargaining power innegotiations. This could allow us tosecure more favourable contract termsand prices while maintaining servicequality, thereby increasing ?nancialreturns.
ReducingRaw MaterialDependency
By replacing primary aluminiumwith recycled aluminium,dependency on bauxite importscan be reduced, enhancingresource autonomy. Additionally,the circular economy model canhelp avoid trade barriers like"carbon tari?s", ensuring long-term export competitiveness inthe global carbon-neutral trend.
Medium,long
By substituting primary
aluminium with recycledaluminium, we reducereliance on bauxite importsand shields ourselvesfrom internationalprice ?uctuations andgeopolitical risks thatimpact the supply chain.
The resource sovereignty practice
aligns with the global carbon-neutraltrend, helping to mitigate the impactof future policy changes (e.g., carbontari?s, resource export restrictions) onthe business. This reduces the risk ofincreased sales costs due to policy shifts.
In exploring the circular economy, we remain vigilant and responsive to the challenges and risks it may bring, while also seizing theopportunities it o?ers. Our circular economy strategy is centred around establishing a model of recycling and reuse, and throughtechnological innovation and resource integration, we continuously drive the advancement and upgrading of the recycled aluminiumindustry.
Management Strategy
We are dedicated to building a closed-loop aluminium industry chain with the circulareconomy as the core concept, promoting comprehensive recycling across the entirealuminium production chain. By integrating technological innovation and resourceoptimization, we focus on enhancing the efficient circulation of alloys, ensuring thehigh-efficiency use of resources throughout the entire process—from raw materialprocurement to production processing and product recycling and reuse. At the sametime, we actively take a leading role in the industry, driving the entire aluminium sectortoward a greener and more sustainable direction through technological innovation andresource integration, thereby bringing positive impacts to society and the environmentand contributing to the full implementation of the circular economy.
Comprehensive Reuse Model
Building a Whole-Chain Recycling
SystemPromoting Green
Production
LeadingIndustryDevelopment
We continuously expand and improve our procurement system, enhancing business cooperation with downstream canningcompanies, automotive companies, and other clients, while establishing a multi-channel procurement network to fully ensure thesupply of recycled aluminium raw materials. Additionally, we have formed in-depth cooperation with several downstream clients tojointly develop green products and solutions, driving the development of a circular economy across the entire industry chain.
We continuously invest in the research and development of circular economy projects, exploring more e?cient aluminium recyclingand reuse technologies to enhance resource recycling rates. Our 100,000-ton recycled aluminium project uses advanced aluminiumrecycling smelting technology, processing waste materials such as can body scraps, can lid scraps, automotive panel scraps, hardalloy milling chips, and some recycled beverage cans from society. By employing advanced recycling smelting technologies andintroducing production equipment such as dual chamber smelting furnaces, multi-chamber furnaces, and sidewall furnaces, we notonly recover metal aluminium but also signi?cantly reduce the discharge of solid waste, waste liquids, and waste slag. This ensuresboth the e?cient use of resources and environmental protection.
Technological Innovation
Resource Integration
During the reporting period, in conjunction with our relevantcapabilities in circular reuse technology, we have essentiallycompleted the determination of intentions and the establishmentof cooperation frameworks with strategic clients regarding closed-loop comprehensive utilization. This includes pre-sorting of pre-consumer scrap aluminium, exploration and co-construction ofcommercial operation models, and the introduction and testingof low-carbon alloys.In addition to practices aimed at pre-consumer aluminiumrecycling, we have also conducted multiple rounds of discussions
with industry partners regarding the feasibility of recycling post-consumer scrap from vehicles and aircraft dismantling. Currently,our automotive sheet recycling has been implemented, with anactual utilization rate of over 65%. We have also begun aluminiumrecycling business with Boeing for aircraft sheet scrap. Meanwhile,our completed high-quality recycled aluminium preservation andcomprehensive utilization project utilizes waste from automotivemanufacturers and scrap aluminium cans from society to producealloy aluminium water, which is directly supplied to downstreamcompanies, contributing to energy-saving, emission reduction,and clean production throughout the industry chain.
Improve the Traceability System of the Recycled Aluminium Circular ProcessEnhance the traceability and transparency of recycled aluminium to ensure the e?ciency and
environmental sustainability of the entire recycling and reuse process.
In-depth Exploration of Alloy Design and TestingBy collaborating with customers to explore innovative alloy designs, we can better meet market
demand while improving the quality and performance of recycled aluminium products.
Complete Directed Recycling and Full-loop Commercial PilotE?ectively increase resource recovery rates while creating more economic value for our partnersand promoting sustainable development across the entire industry.
/ Natural Harmony Co-creating a New Ecological Era
We actively participate in the formulation of industry standards for recycled aluminium, driving the entire aluminium industrytowards a circular economy model. We facilitated the full production cycle veri?cation of food safety risks under a 100% recycledaluminium ratio. The success of this verification contributed to the release of the group standardT/CNLIC 0091-2023 RecycledAluminium Alloys Sheets and Metal Containers for Food Contact. Additionally, due to our outstanding contributions to thedevelopment of national standards for recycled aluminium, Nanshan Aluminium has been awarded the First and Second Prizes inthe 2024 Nonferrous Metal Industry Science and Technology Awards, highlighting our leading position in industry technologicalinnovation and standardization e?orts.
Industry Leadership Contribution
Recycled Aluminium Industry Standards Development
Hosting the 2024 China Renewable Nonferrous Metals Science and Technology Conference
In July 2024, the China Renewable Nonferrous Metals Science andTechnology Conference was successfully held in Longkou City, ShandongProvince. The conference was organized by the China Nonferrous MetalsSociety, with support from Nanshan Aluminium and other entities. Underthe theme "Green, High-Value, Recycling", the conference focused ondeveloping new productive forces in recycled nonferrous metals andaimed to enhance the overall level of the nonferrous metals industry.It provided a platform for experts, scholars, and industry professionalsengaged in scientific research, development, and industrialization ofrecycled nonferrous metals to exchange ideas and promote the industry'srole in national economic and social development.
Hosting the 2024 China RenewableNonferrous Metals Science and TechnologyConference
To ensure the e?ectiveness of our management strategies, we assess and quantify the feasibility and impact of circular economyrisks. Based on the evaluation results, we prioritize these risks and establish targeted management systems and work?ows. We alsoauthorize dedicated teams to regularly monitor and document risk levels. Additionally, we implement risk management measuresto minimize the impact of circular economy risks on both internal and external stakeholders.
We work to promote the green transformation of the aluminium industry chain. The company has defined two key indicators:
the amount of scrap aluminium directly processed through recycled aluminium and the percentage of pre-consumer and post-consumer scrap aluminium in the total comprehensive processing volume. We strive to achieve breakthroughs in renewableresource usage and utilization rates, continuously contributing to the global aluminium industry's circular economy.
Impact, Risk, and Opportunity Management
Indicators & Targets
Our collaborative project titledGreen Recycled High-EndAluminium Alloy Industrialization Technology and Equipment, andIts Application (Invention)with Beijing University of Science andTechnology and other institutions, has been honoured with thefirst-class award in the 2024 Nonferrous Metals Industry Scienceand Technology Awards.
Another joint initiative,Development and Promotion ofNational Standards for Recycled Aluminium Raw Materials, incollaboration with the Nonferrous Metals Technology EconomyResearch Institute and other entities, has received the second-class award in the same category.
Circular Economy Targets2024 Circular Economy Target Completion
Amount of scrap aluminium directly processedthrough recycled aluminium (excluding UBCremelt ingot
)
>70,000tonnesPercentage of pre-consumer/post-consumer
scrap aluminium in total comprehensiveprocessing volume
28%
UBC remelt ingots are aluminium ingots produced by recycling used beverage cans (UBC) and remelting them.
According to the de?nition in ISO 14021, pre-consumer waste aluminium refers to waste generated during the manufacturing process that hasnot been sold to consumers and is directly recycled and remelted within the factory; post- consumer scrap aluminium refers to aluminium wastediscarded after consumption and use.
People-OrientedBuilding an InclusiveWorkplace
We at Nanshan Aluminium have always adhered to a people-orientedapproach, viewing our employees as the asset of the company. Bybuilding a diversi?ed talent system, a comprehensive employee caremechanism, and an all-encompassing safety management system, weaim to create a fair, inclusive, and safe working environment, achievingmutual growth for both our employees and the company.
/ People-Oriented Building an Inclusive Workplace
5.1
Eager toAttract Talent
We recognise that employees are the driving force behind thecompany's development. We adhere to fair and just recruitmentand employment practices, providing every employee with aplatform to realise their self-worth. We focus on creating a talentteam that aligns closely with our development needs, workingtogether with our employees to grow and create a shared future.
We strictly comply with theLabour Lawand other relevant regulations, as well as the International Labour Organization (ILO)conventions. We have established and regularly update internal systems, including theNon-Discrimination ManagementProcedure,Protection of Minor Workers Management Procedure,Prohibition of Forced Labour Management Procedure,Protectionof Female Employees Management Procedure,Prohibition of Child Labour and Remedial Measures Management Procedure, andRights to Organise Trade Unions and Collective Bargaining Management Procedure, which clearly outline the principles of fairnessin recruitment, promotion, and compensation distribution, providing institutional support for our human resource managementpractices.We also use monthly learning sessions, weekly meetings, pre- and post-shift meetings, and evening study sessions as platforms toeducate all employees on company rules, regulations, and behavioural norms. This helps internalise static regulations into sharedvalues for both the company and our employees, continuously enriching our diverse cultural core.We follow a principle of two-way selection in employment, using job requirements and qualifications as the basis. We arededicated to safeguarding the fundamental rights of every employee in employment, training, promotion, and remuneration,regardless of their gender, age, religion, ethnicity, or other identity background.We also strictly manage and review employee identity information through a digital human resource management system,preventing any violations such as child labour or forced labour, and ensuring that our human resource management work iscarried out e?ciently and with high quality.
Equal Employment
Nanshan Aluminium 2024 Employee Composition
The scope of the following statistics refers to our Chinese employees (including overseas factories).
We had
16,441employees
As of the end of the reporting period, with the distribution of employees across di?erent categories asfollows:
9,907
9,642
12,5852,405
15,502
6,53412,495
5,238
3,946
2,347
Parent CompanyMajor Subsidiaries
30 Years and Below50 Years and Above
31-49 Years
Financial Sta?Administrative Sta?Production Sta?Sales Sta?Technical Sta?
Senior ManagementFrontline Employees
Middle Management
PostgraduatesJunior College Degree
Bachelor's DegreeUnder Junior College Degree
MaleFemale
4,0482,751
871,119
8,736
89346
By A?liated
Company
By Age Group
By Professional
Composition
By Education
Level
By Job Level
By Gender
Nanshan Aluminium/ 2024 Environmental, Social and Governance Report
/ People-Oriented Building an Inclusive Workplace
We maximize employee attraction and retention by o?ering a competitive compensation system, thereby enhancing employeemotivation. Our compensation package consists of basic salary, performance-based salary, and piece-rate pay. Based on marketsalary research data and employee performance evaluation results, we regularly assess and adjust the salary levels for employeesat different job levels. Additionally, we offer a variety of benefits and allowances, including seniority allowance, expatriateallowance, transportation subsidy, high-temperature allowance, night shift pays, and perfect attendance award, all of whichcontribute to enhancing employees' sense of belonging and satisfaction.
We are dedicated to transforming high-quality talent into an endogenous driving force for the sustainable development of ourbusiness. We adopt a dual-track approach combining campus recruitment and social recruitment, as well as online and offlinerecruitment, to attract top talent. Our focus is on strengthening key positions and specialist roles, building a team of highly skilled andprofessional individuals.In the recruitment process, we consistently implement a local employment policy, providing job opportunities and good bene?ts toresidents in the areas where we operate, thus enhancing our corporate image. In Indonesia, we primarily rely on both expatriate andlocal recruitment channels, while simultaneously building a cross-cultural team, e?ectively promoting local employment.
Talent Attraction
Nanshan Aluminium 2024 Highlight Recruitment Activities
In 2024, we actively expanded resources from top-tier universities, reachingagreements with Central South University, Xiangtan University, and otherinstitutions to recruit and sign high-end research and developmentand process talents. At the same time, we recruited for operational andtechnical positions on the frontlines of production from more than 30vocational colleges, further enriching our talent pool.
To meet the production and operational needs of various departments,we recruited middle and senior management talent as well as technicalexperts in research, equipment, and other specializations through head-hunters, online channels, and o?ine communication sessions. In 2024,we hired more than 40 external management and professional technicaltalents.
CampusRecruitment
Leadership &Key PositionsRecruitment
Nanshan Aluminium Compensation Structure
Basic Salary
Our salary is based on job value,competency, and performanceaccumulation to ensure it isscienti?c and fair.
Performance-based SalaryA certain percentage or?xed amount of the basicsalary is used as the base,and employees are paiddi?erentiated compensationbased on performanceevaluation results.
Piece-rate PayThe salary is calculated basedon the quantity of labour andpiece-rate price, accordingto quality indicators andequipment capacity.
To further improve overall operational e?ciency and optimise talent management mechanisms, employee turnover rate is set asan assessment indicator for leaders at each unit and department. This is aimed at better motivating the executive team to focuson employee retention and foster a positive company culture and working environment. As of the end of the reporting period, theemployee turnover
rate at Nanshan Aluminium is 12.02%.
Employee turnover rate = (Number of employees who left during the year) / (Number of employees at the beginning of the year + Number of newhires during the year) * 100%.
Nanshan Aluminium 2024 Employee Turnover Data
Nanshan Aluminium Employee Performance Evaluation Mechanism by Job LevelThe performance of the management team is assessedbased on the Company's strategic development, theproduction and operational situation of each unit, andthe leadership responsibilities of each member, withdi?erentiated assessments for each unit's leadership team.
Senior Management
A "one person, one form" evaluation method is used,where individuals are scored based on their jobresponsibilities, work content, and actual performance,as well as the completion of set objectives.
Functional and Technical Sta?
Based on the results of the management teamassessment, the Company's operational targets arecascaded down to each plant and workshop, whereassessments are conducted accordingly.
Middle Management
Each plant and department, in accordance withcompany regulations and job requirements,establishes standard operating procedures anddaily behavioural guidelines. Employees are thenevaluated monthly based on the assessmentstandards.
Frontline Employees
Employee Turnover Rate
12.02
%
As of the end of the reporting period
By GenderUnit:%
Unit:%Unit:%By AgeBy Job Level
Male
11.98
12.17
4.2616.57
6.9810.03
12.2811.34
Female
30 Years and BelowSenior Management31-49 YearsMiddle Management50 Years and AboveFrontline Employees
/ People-Oriented Building an Inclusive Workplace
Nanshan Aluminium's 2024 Employee Training Highlights
To further enhance the talent development system, we leverage the advantages of the Nanshan Training Academy learningplatform. Through a combination of online and offline methods, as well as the integration of theory and practice, we offercustomized training plans and a wealth of learning resources for employees at different levels. Our focus is on nurturing well-rounded talents that are closely aligned with the Company's strategic objectives.
Employee Training
We place high importance on employee training and development at Nanshan Aluminium. We are dedicated to building asystematic talent development system and clear career development pathways, providing employees with comprehensive growthsupport. This approach encourages employees to continuously challenge themselves, creating a new dynamic where employeegrowth and company development resonate in harmony and mutually bene?t each other.
Talent Development
We organize management training, online marketing system training, middle andsenior management training, and human resources management professionaltraining projects, leveraging the resources of the Nanshan Training Academy. Theseinitiatives aim to enhance the leadership skills of our management team, tailored tothe development needs of employees from di?erent departments and levels.
Through initiatives such as the Nanshan Star University Graduate Training programme,we help new graduates integrate quickly into their roles and positions.
We integrate internal and external resources to o?er a combination of online livesessions and in-person training, expanding our talent development channels throughmentorship, seminars, classroom training, case studies, live lectures, and booksharing sessions. This approach is designed to continually enhance the business skillsof our key employees.
Excellent trainees from our Indonesia plant are sent to the Nanshan Aluminiumheadquarters for Chinese language training to improve their ability to adapt to cross-cultural environments and enhance their professional quali?cations.
Our US plant conducts cross-role training for employees, and based on trainingperformance, salary adjustments are made, focusing on cultivating cross-disciplinarytalents.
In collaboration with the Longkou City Human Resources and Social Security Bureauand the China Nonferrous Metals Association, we are gradually promoting skillenhancement and rating training, and provide bonus subsidies to those holdingregistered safety certi?cates. During the reporting period, 40 employees participatedin the electrical technician (skilled) training in the Golden Blue Collar programme,120 employees participated in apprenticeship training for electricians or senior?tters (advanced), and 39 employees passed the nonferrous metals professional titleevaluation.
Taking advantage of the unique educational resources at Nanshan Training Academy,we encourage employees to enhance their academic quali?cations through distanceeducation, online learning, or by selecting external educational institutions.
Skills andLeadershipTrainingUniversityGraduate Training
ProfessionalTraining
Academic andProfessionalQuali?cationsCerti?cation
During the reporting period, we conducted a total of 5,629 training sessions for all employees, with a total training hour count of789,168 hours. The average training hours per employee amounted to 48 hours.
We at Nanshan Aluminium have always regarded employee career development as a key component of our human resourcemanagement. We have established a comprehensive career development path for employees, which includes six major sequences:
operational, functional, managerial, logistics, marketing, and technical. Based on this framework, we have further subdividedit into 45 job categories, clearly de?ning job responsibilities and attributes for each category, ensuring that every employee canachieve their career aspirations in a fair and open environment.
Employee Promotion
Nanshan Aluminium 2024 Employee Training StatisticsAnnual TrainingExpenditure
RMB
10,000
Total Number of TrainingSessions5,629Times
Total Employee Training
789,168Hours
Employee TrainingCoverage Rate
%
Book Sharing Session
Nanshan Aluminium University
Graduate Training Camp
Organisational Goal and Performance
Management Practical Training
MaleFemale
599,768189,400
EmployeeTraining Hoursby Gender
42,864744,096
2,208EmployeeTraining Hours
by Job Level
Senior ManagementFrontline Employees
Middle Management
Unit: HoursUnit: Hours
/ People-Oriented Building an Inclusive Workplace
Alumina Company BadmintonTournament
Tug-of-War Competition
Nanshan Aluminium Hiking Event
Book Sharing SessionDistribution of Spring Festival Suppliesto Employees in Need
5.2
EmployeeCare
At Nanshan Aluminium, we prioritise the happiness and sense ofbelonging of our employees. Through detailed employee care and ademocratic communication mechanism, we continuously enhanceemployee satisfaction and create a harmonious and warm corporateculture.
As a responsible company, we have established a diverse welfare system, o?ering bene?t guarantees to all employees, includingboth full-time and part-time workers. This system aims to continually improve employees' quality of life and work satisfaction. Inaddition, we organise cultural and sporting activities, such as knowledge competitions, hiking events, and badminton tournaments.We also collaborate with the Longkou City Federation of Trade Unions to organise skills competitions and the selection of "WorkerPioneer", "Labour Model", and "Longkou Craftsman" awards. These activities provide employees with a rich and varied leisure life,helping them achieve a harmonious balance between work and life.
Welfare Care
Nanshan Aluminium Welfare Contents
Supplementary Welfare
Welfare subsidies: Seniority subsidy, overseas assignment subsidy, transportation subsidy, high-temperature subsidy,health care subsidy, holiday welfare, birthday welfare, night shift allowance, perfect attendance reward, meal subsidy,Yantai union card supplementary medical insurancePerformance rewards: Overproduction bonus, project award, excellence awardWelfare housing: Free dormitory and utilities for out-of-town employees, gym, sports facilities, library, and entertainmentvenues for employeesFree travel: Internal employees can visit the AAAAA-level Nanshan tourist attraction for free
Statutory Welfare
Paid annual leave, bereavement leave, maternity leave, marriage leave, breastfeeding leave
In practising employee care, we place great importance on the fundamental rights of female employees and employees in di?cultsituations. For female employees, we have developed theFemale Employee Protection Management Procedure, and based on theiractual work and life needs, we provide additional leave such as maternity leave and breastfeeding leave. We have also establishedbasic facilities such as sanitary rooms, rest rooms for pregnant employees, and breastfeeding rooms. Additionally, through activitieson International Women's Day, we o?er ?owers, meal vouchers, and gifts to female employees, demonstrating our humanistic care.For employees facing di?culties, all Nanshan Aluminium employees participate in our Mutual Aid Foundation, accurately identifyingthe needs of these employees, regularly organising visits and support activities, and spreading love and warmth in small ways.
To further understand employee demands and expectations, we conduct an employee satisfaction survey at least once a year,using anonymous questionnaires. The survey comprehensively considers employee feedback on various aspects, including thework environment, career development, team collaboration, bene?ts, and company culture. Based on the feedback, we generate asatisfaction survey report, thoroughly analysing any issues identi?ed during operations, making timely corrections, and following upon the feedback results. As of the end of the reporting period, overall employee satisfaction at Nanshan Aluminium reached 89.90%,an increase of 1.36%
compared to the previous year.
The overall employee satisfaction rate at Nanshan Aluminium in 2023 is 88.54%.
Pre- and Post-shift CommunicationInterviews
Communication SymposiumAlumina Company Communication
Symposium
We at Nanshan Aluminium recognise the importance of democratic management and fully respect the freedom of speech andthe right of employees to associate freely. Guided by internal systems such as theEmployee Complaint (Appeal) ManagementProcedure, Employee Representative Management Procedure, andInformation Communication, Consultation,and ControlProcedure, we have established multiple and accessible communication channels to listen to employees' voices from variousdimensions and respond promptly to their reasonable requests.We continuously improve employee communication channels through various forms such as employee representative meetings,pre- and post-shift meetings, and discussion sessions to understand employees' thoughts and concerns. We encourage employeesto fully exercise their sense of ownership and use channels such as suggestion boxes, emails, phones, and direct communicationwith leadership to o?er suggestions for company management and cultural development. We also maintain and support variousgrievance channels and follow con?dentiality protocols to protect the personal information of employees who ?le complaints.
Democratic Communication
The collective agreement signingrate for employees was
%
The coverage of employeerepresentatives reached
%
During the reporting period
Nanshan Aluminium Democratic Communication Activities
/ People-Oriented Building an Inclusive Workplace
Based on a comprehensive safety management structure, we set and continuously track health and safety goals, making them animportant component of executive performance evaluations and compensation. We continue to promote the responsibility system forsafety production across all employees and the reward and punishment system for middle and senior management, further clarifyingsafety production responsibilities and reinforcing a management philosophy and atmosphere that prioritise safety production andsafeguard occupational health. As of the end of the reporting period, we had no fatalities, ?res, explosions, or incidents of occupationaldiseases.. There were 10 work-related accidents in total, with a work injury rate of 0.75‰, which is below the target of 1.5‰ set at thebeginning of the year. No legal disputes or violations related to occupational diseases occurred.
No fatalities or injuries.
No ?re or explosion incidents.
Injury accident rate below 1.5‰.
5.3
SafetyProduction
We at Nanshan Aluminium adhere to health and safety boundaries,continuously advancing the construction of our safety managementsystem. We strictly control health and safety management and riskprevention during the production process, organizing diversifiedoccupational health training and safety culture-building activities.Through these actions, we ensure the inherent safety of ouroperations and move towards long-term objectives.
In line with safety production laws and regulations, such as theWork Safety Law, as well as internal systems like theSafetyManagement Standardsand the Employee Safety Production Responsibility System, we steadily promote safety production atboth the Company and subsidiary levels. In 2024, we revised theHazard Identi?cation and Control Management Systemand madeclear provisions regarding the frequency of safety inspections conducted by unit leaders.We continuously optimize the safety management system, which is coordinated by our general manager, supervised by the safetymanagement department, and implemented by each subsidiary. This system ensures the implementation of safety managementwork across the company from top to bottom.
Safety Management
Nanshan Aluminium Safety Management Structure
GeneralManagerSafetyManagementDepartmentSubsidiaries
Coordinates relevant departments to carry out safety management work
Supervises subsidiaries, ensuring they ful?l their safety productionresponsibilities and safety management system
Acts as the implementing body, responsible for daily safety management andsafety inspections
Nanshan Aluminium 2024 Safety Management Goals and AchievementsSafety Management Goal
No fatalities or injuries occurred.
No ?re or explosion incidents occurred.
Injury accident rate of 0.75‰, safety managementgoal achieved.
Achievement Status
Nanshan Aluminium and its subsidiaries across various locations, are actively advancing the certification of our safetymanagement systems to ensure that our safety practices meet professional standards. By the end of the reporting period, bothNanshan Aluminium and our Indonesian plant had obtained ISO 9001 and ISO 45001 certi?cations.Safety System Certi?cation
In addressing safety risks, we focus on preventive control, with a three-year safety status assessment cycle. Internal safety riskassessments and audits are regularly conducted. Based on the results of these assessments, safety drills and training plans areupdated, and emergency response plans are developed and re?ned to address new scenarios, needs, and risks, comprehensivelypreventing potential safety hazards.A dual prevention and control mechanism has been established, with safety risk identi?cation carried out annually. Each unit isresponsible for confirming key risk points through on-site audits. Any non- compliance or overlooked risk points are promptlyaddressed, with additional risk identi?cation conducted for newly added equipment to ensure that emergency rescue plans aredeveloped and re?ned as early as possible.
Safety Risk Prevention and Control
This calibre of data currently includes only our operating subsidiaries in China.
In 2024, we launched a safety production risk monitoring and early warningsystem for the high-risk deep well casting. Deep well casting is a criticalstep in metal smelting, involving complex processes and high risks, withthe safety of operators being of utmost importance. To ensure operationalsafety, the installation of an advanced and e?cient monitoring system wasimplemented as a solution, enabling comprehensive real-time monitoringof operational behaviours. This system can accurately detect abnormaloperations and potential hazards, providing timely alerts and transmittinginformation to enhance the level of safety production and managemente?ectiveness.
Installation of Safety Production Risk Monitoring and Early Warning Systemfor High-Risk Deep well casting
Installation of Safety ProductionRisk Monitoring and Early WarningSystem for High-Risk Deep wellcasting
As of the end of the reporting periodThe coverage rate of the ISO 45001 energy management system across the manufacturing subsidiaries of NanshanAluminium is 87.5%
, excluding the newly launched Recycled Aluminium Company. Additionally, all domesticsubsidiaries have passed secondary production standardisation certi?cation. Our Indonesian plant has also achievedISO 45001 certi?cation.
/ People-Oriented Building an Inclusive Workplace
We consistently uphold a "Safety First" corporate culture. We primarily utilise employee training as the vehicle for promoting safetyawareness, covering various topics such as laws and regulations, safety rules and procedures, job operation protocols, emergencyresponse plans, occupational health, dual prevention systems, ?re safety knowledge, safety expertise, and accident case studies. Thismulti- layered, comprehensive approach strengthens employees' awareness of safety production responsibilities and enhances theirability to identify and control risks. By the end of the reporting period, we had conducted a total of 3,115 safety training sessions, withan average of no less than 24 training hours per employee.
Safety Culture Promotion
In 2024, we conducted internal benchmarking and knowledge exchange activities, focusing on areas such as on-site safetymanagement, management of special hazardous operations, safety education and training, emergency response drills, and theuse of safety production funds. A total of 38 improvement suggestions were identi?ed and recorded, and corrective actions wereimplemented to enhance the overall safety management e?ectiveness of the company. We also organised 195 safety inspectionactivities targeting major accident hazards and seasonal safety risks, implementing dedicated corrective measures for anyidenti?ed safety hazards. By the end of the reporting period, all safety hazards had been addressed.
In line with the requirements of theCriteria for Assessing the Degree ofHuman Injuryand the corrective processes for major safety accidentsin the industry, we have developed and refined the safety accidentreporting process and regulations. These clearly define the safetymanagement responsibilities across various business areas and therequired response times for safety accident reports, further solidifyingthe primary responsibility for safety management and ensuring theoccupational health of our employees.Each year, we engage professional third-party organisations to conducta comprehensive safety diagnosis and status analysis of our safetymanagement practices, focusing on high-risk areas, operations, andequipment within the company. Through external diagnostics, weanalyse and confirm potential risk points one by one, and, throughdiscussions and simulations, develop safety risk response measures.This continuous process helps to upgrade and improve our overallsafety management level.
Post-Spring Festival Return-to-Work Safety Production Inspection
Labour Day and Post- HolidaySafety Inspection Activities
Autumn Natural Gas, Electricity,and Pre- Mid-Autumn FestivalSafety Inspection ActivitiesNanshan Aluminium Safety Inspection Projects (Excerpt)
2024 Nanshan Aluminium Third-Party SafetyDiagnosis Report
We consistently prioritise the management of employee health and safety by contractors and actively work towards building aresponsible supply chain. In line with ASI requirements, we have developed and continuously improved theContractor (OutsourcedConstruction) Safety Management System, setting a health and safety goal for contractors to maintain an injury accident rate below 1‰,and requiring strict adherence to and implementation of this standard. We continuously monitor the safety performance of contractors,assist them in identifying and addressing safety hazards at work sites, and provide targeted training. In 2024, we conducted on-siteoccupational health and safety audits for four domestic contractors and helped them rectify the identi?ed issues.
Contractor Safety Management
Safety Production Month TrainingFirst Aid Knowledge Safety TrainingFire?ghting Skills Competition
New Employee Safety TrainingFirst-Day Work Safety TrainingSafety Knowledge Competition
Nanshan Aluminium Organises Various Safety Training Activities
ContractorTendering
ContractorDailyManagement
ContractorTraining
Contractor Safety Management Measures
All approved contractors must fully comply with ASI's safety management requirementsContractors must sign a safety management agreement with the company, clearly de?ning the responsibilities
and obligations of both parties in safety production management, ensuring that both adhere to safetyregulations during construction and maintain a safe working environmentContractors must comply with all safety management regulations in the operating location and actively integrate
into and follow local safety management standardsThey must actively cooperate with Nanshan Aluminium in safety hazard identi?cation and on-site audits, working
together to identify and eliminate potential safety hazards to ensure a safe and harmless working environmentRegular on-site inspections should be conducted to ensure that all safety measures are e?ectively implemented,
thereby minimising accident risksStrict adherence to the work approval system must be emphasised, with any work requiring thorough approval
processes. Work can only be carried out after assessing risks and developing appropriate protective measuresContractors are required to continuously train construction personnel, ensuring that only those who have passed
the training are permitted to enter the construction site
Nanshan Aluminium/ 2024 Environmental, Social and Governance Report
/ People-Oriented Building an Inclusive Workplace
Occupational Health Law Literacy Training
We actively assume the primary responsibility for ensuring the occupational health and safety of our employees, building andcontinuously improving our occupational health and safety management system. We systematically promote safety cultureawareness activities and implement various measures to protect employees from occupational diseases and accidents, e?ectivelyreducing occupational health risks in the workplace. During the reporting period, we provided all employees with work injuryinsurance, safety liability insurance, or both work injury insurance and employer liability insurance, with a total investment in workinjury-related insurance amounting to RMB 7.5969 million.We comply with occupational safety laws and regulations, such as theOccupational Disease Prevention LawandWorkplaceOccupational Health Supervision Regulations. Drawing on advanced industry experiences and aligning with the health and safetygoals set by the Company, we continuously improve internal systems like theInfrastructure and Work Environment ManagementSystemand steadily implement occupational disease hazard identi?cation and control measures. In 2024, we successfully passed14 rigorous inspections and audits from the government and relevant departments, in line with high standards for occupationalhealth management, ensuring the physical and mental well-being of our employees.
Occupational Health
Occupational Disease Hazard Identi?cation and ControlImproving the Working Environment
Establish the Safety Production Risk Classi?cation and Control
Management System and Special Operations PersonnelManagement System, clearly de?ning the standards and basis forrisk assessment.Continuously advance the classi?cation and control ofoccupational disease hazards, hazard identi?cation andrecti?cation, risk assessment, and control, achieving regularmanagement of occupational hazard risks.Regularly engage third-party testing agencies to conduct
occupational hazard detection in the workplace. Regularly inspect special equipment.
Provide free protective equipment to employees based on front-
line business needs. Install air conditioning in high-temperature workshops.Distribute anti-heat medicines, food, etc., during the summer
high- temperature season.Conduct on-site occupational hazard factor testing, and
strengthen on-site protective facility management based on test
data.
Regular Employee Health ChecksImplementing Safety Culture Promotion
Conduct physical health screenings for employees, and issue
health risk noti?cations to employees with high occupationaldisease risks.
Regularly conduct occupational disease prevention training,
occupational health awareness weeks, and other cultural
promotion activities.Distribute standard operating procedure manuals to positions
with potential occupational disease risks.
Nanshan Aluminium Occupational Health & Safety Protection Measures
Symbiotic Supply Chain
Building a New Ecosystem Together
We actively practice the concept of moving forward together,shouldering responsibilities collectively, and building a better future.We are dedicated to creating a fair and transparent partnership withour suppliers. We continuously strengthen supplier management,standardise the raw material procurement process, and workalongside suppliers to fulfil our ESG responsibilities. While activelycreating a responsible supply chain, we recognise that giving back tosociety is essential for the long-term and stable development of ourbusiness. We care about public welfare and charitable affairs in thelocations where we operate, seeking to engage in mutually bene?cialand inclusive relationships with local communities in ways that arewithin our capacity.
/ Symbiotic Supply Chain Building a New Ecosystem Together
6.1
ResponsibleSupplyChain
We have developed a comprehensive supplier lifecycle managementprocess. Through strict supplier selection and evaluation mechanisms,we ensure that suppliers' practices in areas such as environmentalmanagement, health and safety, business ethics, and human rightsmanagement align with our sustainable development principles.We are dedicated to creating a clean, transparent, and sustainableprocurement environment. At the same time, we continue tooptimise supply chain management and layout, establishing supplychain risk management mechanisms and plans, enhancing supplychain resilience, and laying a solid foundation for stable productionoperations.
We strictly adhere to laws and regulations such as theCivil Codeand Bidding and Tendering Law. We have formulated internalregulations, including theSupplier Management Proceduresand theSupplier (Contractor, Service Provider) ASI ManagementImplementation Program, to standardise supplier management requirements. We require cooperating suppliers to complywith national and local environmental, procurement, and human rights laws and regulations to ensure smooth procurementoperations. In 2024, we added a "Business Ethics and Integrity" clause to our internal system.In 2024, we actively carried out the digital transformation of the supply chain and launched the Nanshan Aluminium SupplierDigital System (NC System). The system integrates core functions such as procurement order management and suppliermanagement, enabling e?cient management of the entire supplier lifecycle.
Supplier Management
Supplier Full Process Management
Supplier AdmissionSupplier Evaluation
Open Tendering on Online Platform Self-Nomination is Allowed Supplier Classi?cationSigning of ASI Social Responsibility
Commitment
Eliminate Unquali?ed Suppliers Based on
Performance Scores
On-Site Inspection Supplier Performance Scoring Adjusting Supplier Procurement Rating
Supplier Training Regular Communication Industry Exhibitions and Annual Conferences
Supplier ExitSupplier Communication and Collaboration
We have established a dynamic evaluation mechanism covering the entire supplier lifecycle within our supplier managementsystem. Through a three-step screening process of "pre-qualification, sample verification, and on-site audit", we systematicallyassess suppliers' quali?cations, process capabilities, and quality stability. During the reporting period, we innovated and optimisedthe admission model, significantly shortening the approval cycle while ensuring that technical specifications and compliancerequirements were met, thus greatly enhancing supply chain response e?ciency.We have set up an online intelligent tendering platform, enabling transparent management of the entire process, from demandpublication and bidding to performance evaluation. All tender information is published on both the Nanshan O?cial Website andChina Tendering and Bidding Network, and a disciplinary and supervisory email address is provided to create a clean ecosystem withmulti-party oversight. In 2024, we successfully introduced over 110 new cooperative suppliers, covering emerging ?elds such as greenmaterials and intelligent equipment.
Supplier Admission
Quali?cation Review
Category I Suppliers Category II Suppliers Category III Suppliers
On-site Investigation
Approval and Entry into the System
Supplier submission of informationThe Supply Department reviews the
business license, three-year ?nancialstatements, cooperation contracts,and account opening permissions, etc.Supplier and supply information
archiving Initial review of supplier quali?cations Small-scale trial run
Category I suppliers primarily
supply raw and auxiliary materialsthat are directly involved in theproduct processing processand have a signi?cant impacton the ?nal product quality.Alternatively, they may supplyCategory II materials that directlya?ect product quality, are used inlarge quantities, and could causesubstantial losses if substandard.
Category II suppliers have a
signi?cant impact on the ?nalproduct quality, but safetyperformance requirementsare not as stringent. Wefurther divide Category IIsuppliers into Category II KeySuppliers and Category IIImportant Suppliers.
Category III suppliers supply
materials that directly interactwith the ?nal product buthave minimal impact onquality and do not have safetyperformance requirements.
The Supply Department prepares the investigation
plan in advanceInvestigate the supplier's operational status
according to the plan Regular on-site investigations of successful suppliersCompletion of the Supplier Admission Evaluation
Form
If assessment is passed, the supplier is added to
the list of quali?ed suppliersNanshan Aluminium Supplier Admission Process
We re?ne the classi?cation of suppliers based on the importance of the supplied materials to product processing. Suppliers aredivided into Category I, Category II, and Category III, with di?erent tendering and ongoing management methods applied to eachcategory.
Nanshan Aluminium Supplier Classi?cation
20%40%40%
/ Symbiotic Supply Chain Building a New Ecosystem Together
We have established a comprehensive supplier scoring and evaluation system. Every month, the Purchasing and Quality departmentscollaborate to assess suppliers based on delivery efficiency, quality level, service attitude, and price reasonableness. At the endof the year, the scores are compiled to form the annual supplier evaluation. Additionally, we regularly conduct on-site audits andinspections, implementing differentiated performance evaluations for different categories of suppliers and promptly eliminatingthose that do not meet the standards. Based on the scores, we classify suppliers into four levels, prioritising cooperation with higher-level suppliers.
Supplier Evaluation
Category I Key SuppliersMonthly performance evaluation, annual performance rating, supplier on-site audit (once every three years, or asrequired by the client)Category II Key and Category II Important SuppliersMonthly performance evaluation, annual performance rating for those with continuous performance over sixmonths, Category II key supplier on-site audit (once every three years, or as required by the client)
Category III General SuppliersMonthly performance evaluation, annual performance rating for suppliers with continuous performance over twelvemonthsSupplier Classi?cation Mechanism
Supplier Performance Evaluation, Rating, and On-Site Audit Frequency
Suppliers with a score of 90 or above (including 90) are classi?ed as Level I suppliers and are prioritised forprocurement cooperation.Suppliers with a score between 80 and 90 (including 80) are classi?ed as Level II suppliers. Annual on-site supervisionaudits must be conducted, and suppliers are required to make improvements, with ongoing monitoring.Suppliers with a score between 70 and 80 (including 70) are classi?ed as Level III suppliers. Annual on-sitesupervision audits must be conducted, and suppliers are required to make improvements, with ongoing monitoring.Suppliers with a score below 70, and where alternative suppliers providing the same products/processes/servicesare available to ensure supply, will have procurement terminated, and their quali?cation as a quali?ed supplier willbe revoked.
We will resolutely eliminate suppliers who consistently deliver poor product quality, refuse to take corrective actions when issuesarise, or engage in unethical business practices. This ensures that we collaborate with high-quality, reliable suppliers to jointlypromote the sustainable development of the company.
We have established a comprehensive supply chain resilience management system. Through intelligent inventory managementand strategic supplier collaboration mechanisms, we continuously identify and e?ectively control potential risks to ensure thestable supply of core resources, fully enhance supply chain resilience, and achieve end-to-end risk penetration management.
To further improve the capabilities of procurement personnel, we regularly conduct training sessions. These cover our procurementprocess and policies, relevant procurement laws and regulations, as well as CPPM
procurement courses. In 2024, we held six trainingsessions and exams for procurement sta? to ensure they acquire the necessary skills for their work.
Supplier Elimination
Supply Chain Risk Management
Low Evaluation ScoresObstructed CooperationViolation of Business EthicsSuppliers with a score below70, and where other suppliersproviding the same products/processes/services can ful?llsupply demand, will have theirprocurement terminated, andtheir quali?cation as a quali?edsupplier will be revoked.
Suppliers who refuse tocooperate or fail to rectify issuesrelated to quality, delivery time,after-sales service, etc., duringcooperation will be eliminated.
Suppliers engaging in unethicalbusiness practices duringcooperation, such as bidrigging, collusion, rotatingwinning bids, shell companies,falsifying documents, orfabricating quali?cations, willbe eliminated.Nanshan Aluminium Supplier Elimination Regulations
Nanshan Aluminium Supply Chain Risk Management Measures
Safety Stock and
Emergency Response
Enhance Supplier StrategicCooperation Management
Strengthen Supplier ESGCapabilityRegularly organize emergency drills
for raw material and auxiliary materialsupply disruptions to address supplyinterruptions caused by emergencies,ensuring supply chain stability andcontinuity, and maintaining normalproduction operations.Constantly monitor safety stock to ensure
that the Company has su?cient backupsupplies that can quickly respond andprovide alternative products or services.
Established a Supplier Whitelist
Management system to deepen strategicpartnerships with high-quality suppliers,ensuring the stability of supply channelsthrough guaranteed delivery times, prices,and quality. For bulk materials and other production-
critical resources, work closely with 2-3long-term strategic suppliers. For routinematerial categories, establish stablerelationships with at least ?ve suppliers.
Monthly evaluations to understand
suppliers' operations, incorporatinghuman rights and social responsibilityfactors into the assessment, andconducting on-site audits when necessary.Enhance suppliers' ESG management
capabilities through supplier training,assistance, and initiatives, reducingpotential compliance risks.
CPPM: Certi?ed Professional Purchasing Manager.
/ Symbiotic Supply Chain Building a New Ecosystem Together
We classify suppliers and, based on the classification results, strengthen themanagement of suppliers' quality, environment, occupational health and safety,and labour rights. In 2024, we conducted a total of 240 ESG and social responsibilitysupplier on-site audits. Additionally, we regularly organize both internal and externalaudits from ASI and RBA to comprehensively supervise and ensure legal and regulatorycompliance regarding labour rights and human rights. During the reporting period, wecompleted on-site audits of 4 core raw material suppliers and conducted questionnairesurveys with 14 suppliers, without discovering any major violations.
Sustainable Supply Chain Management
To build a responsible and sustainable supply chain, we encourage and urge suppliers to actively take on the responsibility forsustainable development. We include the suppliers' performance in sustainable development responsibilities in the evaluationscope and provide improvement suggestions based on the results. For suppliers who fail to meet the standards in sustainabledevelopment-related assessments, we will issue warnings, reduce cooperation, or even terminate the supply cooperation basedon the situation.
Sustainable Supply Chain
Supplier On-Site Audit Assessment Criteria
QualityManagementSystem (QMS)Environment,Health, andSafety (EHS)
CorporateSocialResponsibility
(CSR)
EvaluationDimension
Assessment ContentASI GuidelinesRequirements
Integrating ASI requirements into routine management, requiring relevant suppliers to sign theASI Social ResponsibilityCommitment, and ensuring compliance with product quality, environmental protection, health and safety, business ethics,human rights, and other related clausesRegularly conducting on-site audits and assessments of core raw material suppliers, evaluating their QMS, EHS, and CSR
practicesEnvironment,Safety, Labor,and HumanRights
Compliance with national and local environmental laws and regulationsPrioritizing cooperation with suppliers of green electricity aluminium raw materials, and encouraging suppliers to use clean
energy and green packagingConducting regular environmental monitoring and inspections of suppliers to ensure compliance and promoting suppliers'
active environmental protection e?orts to reduce toxic emissions in the supply chain Ensuring safe production practices and safeguarding employees' occupational health and safety Prohibiting the employment of child labour, forced labour, or any work that harms physical healthBusinessEthics andIntegrity
Compliance with national and local environmental laws and regulationsAll cooperating suppliers are required to sign documents of integrity constraints, including theSunshine Commitment,
Integrity Commitment, andASI/RBA Social Responsibility Acknowledgment. If any violations occur, we reserve the right to
terminate the cooperation or refer the case to judicial authoritiesCon?ictMinerals
All core suppliers have signed theCommitment to Not Use Conflict Mineralsand provided theConflict-Free Mineral
Investigation ReportWe have innovatively integrated the ASI international sustainable aluminium standards, incorporating ESG elements such ascon?ict minerals control and carbon footprint tracking into supplier admission clauses. Through compliance reviews, we ensurethat raw material sourcing aligns with company regulations. In 2024, we introduced ASI certification requirements to ingotsuppliers, providing guidance on overcoming challenges during the ASI certification process and helping them improve theirperformance in labour and human rights management.
The main areas covered by the on-site audits are as follows: 1) QMS: Auditing the quality management system; 2) EHS: Auditing systemmanagement, occupational health, occupational safety, working at heights, chemicals, emergency preparedness, etc.; 3) CSR: Auditing labourrights, human rights, wages and bene?ts, fair trade, anti-corruption, responsible procurement, supplier management, and management systems.
Nanshan Aluminium Supplier Sustainable Development Evaluation Dimensions
All our suppliers have signed theASI/RBA Social Responsibility Commitment,Integrity Commitment, and SunshineCommitment, making promisesregarding their social responsibilitypractices. During the reporting period,there were no integrity violations ordisciplinary issues involving suppliers orprocurement personnel.
We actively respond to the call for low-carbon and environmentally friendly practices, dedicated to promoting carbon reductionwithin the supply chain to meet downstream customers' green demands. We aim to reduce carbon emissions throughout theentire product life cycle from the source. To this end, we require suppliers to adopt carbon reduction measures, encourage themto develop green products, and prioritize the use of clean energy such as wind and hydropower. At the same time, we advocate forsuppliers to use renewable, biodegradable green materials, as well as green processes, technologies, and equipment, contributingtogether to the construction of a low-carbon, environmentally friendly supply chain system.
Supply Chain Integrity
Green Supply Chain
Sunshine Commitment
Commit to and ensure strict compliance with relevant laws and regulations
in all business activities with Nanshan Aluminium, adhering to principles ofopenness, fairness, justice, and integrity, not seeking improper bene?ts or tradingopportunities, and refraining from engaging in improper transactions.Commit to and ensure possession of all licenses, quali?cations, approvals, permits,
certi?cates, and any other documents required for related business, and that thegoods provided meet the technical requirements speci?ed by Nanshan Aluminium,in compliance with relevant laws and regulations.Commit to and ensure no discrimination in pricing or sales policies towards
Nanshan Aluminium, with transaction prices and sales policies not exceeding thoseo?ered to any third party in the market.Commit that our company and representatives will keep any commercial
information and secrets related to Nanshan Aluminium con?dential during thebidding process.Excerpts from theSupplier Sunshine Commitment
We have established a comprehensive mineral procurementmanagement system, strictly adhering to the OECDDue DiligenceGuidance for Responsible Supply Chains of Minerals from Con?ict-A?ected and High-Risk Areas, and has built a mineral traceabilitymechanism that covers the entire supply chain. All our coresuppliers have signed theCon?ict-Free Minerals CommitmentandprovidedConflict-Free Minerals Investigation Reports, offeringcerti?cates of origin and inspection for the products we purchase,ensuring that suppliers do not use conflict minerals from theDemocratic Republic of the Congo and surrounding areas. Weare resolute in our stance of not supporting or using any metalssourced from armed conflicts, illegal mining, or poor workingconditions.
Con?ict Minerals Management
We have established a supplier support policy aimed at suppliers with poor after-sales quality performance, those with potential risksin new business development, and strategic cooperation suppliers. This involves a few months of targeted support activities. Throughtraining and guidance, we help suppliers improve product quality, production e?ciency, and management operations, and we providetechnical support based on the company's product requirements to assist in the development and innovation of high-performanceproducts. If a supplier does not experience recurring issues for three consecutive months, they will exit the support program.In terms of supplier communication, we actively initiate communication activities with suppliers, aiming to deepen mutualunderstanding of industry trends and strategic cooperation, and jointly promote progress and development. Suppliers encountering oridentifying any issues during the cooperation process can provide feedback through our publicly available "Supplier Complaint Email(group-gysts@nanshan.com.cn)". We will assign a dedicated person to respond, provide feedback, and coordinate in a timely manner toensure that issues are resolved e?ectively and e?ciently, maintaining smooth and stable cooperation between both parties.
Supplier Support & Communication
Nanshan Aluminium's Commitment
We are ?rmly committed to not supporting or using anymetals mined from armed conflicts, illegal mining, orpoor working conditions, known as "conflict minerals".Suppliers are required to investigate the presenceof metals such as Gold (Au), Tantalum (Ta), Tin (Sn),Tungsten (W), and Aluminium (Al) in their products andconfirm the origin of these metals based on the OECDDue Diligence Guidance for Responsible Supply
Chains ofMinerals from Con?ict-A?ected and High-Risk Areas
.
Due Diligence - Organisation for Economic Co-operation and Development.
/ Symbiotic Supply Chain Building a New Ecosystem Together
6.2
Giving Backto Society
We have always upheld our responsibilities as a corporate citizen,actively giving back to society and fulfilling our commitment topublic welfare, charity, and community protection through tangibleactions. We deeply understand that our development is inseparablefrom the support and care of society. Therefore, we are dedicatedto helping vulnerable groups and spreading warmth to society witha grateful heart. At the same time, we fully protect the communityenvironment, actively build communication channels with thecommunity, and strive to create a harmonious and symbioticcommunity ecosystem, working together with all sectors of societyto create a better future.
We always maintain a responsible attitude, ensuring the rational development and utilization of minerals, water resources, andother local natural resources based on fully respecting and obtaining the consent of indigenous people. To better protect therights of indigenous people, we have established a dedicated complaint channel for indigenous people based on internal policiessuch as theManagement Procedure for the Protection and Self-determination, Prior, and Informed Consent Rights of IndigenousPeoples. We focus on key issues such as labour rights, women's rights, and resettlement, steadily advancing relevant work toprovide comprehensive and multi-layered rights protection for indigenous people.We strictly adhere to internal policies such as the Local Community Impact Control Procedureand closely monitor the impact ofproject planning and construction on the community. We actively communicate and collaborate with indigenous people and localinstitutions. For projects that may have a negative impact on the local community, we pay close attention, respond quickly, andadjust as needed to ensure that operational development activities and cultural environment protection measures progress inharmony and symbiosis.
We strictly follow the professionalguidance of cultural heritage authoritiesand theRegulations on the Protectionof Cultural Relics and Religious Sites.During project implementation, wecomprehensively consider environmental,social, and economic bene?ts, adopting aprudent strategy to avoid, protect, or takenecessary relocation measures for culturalsites and religious sanctuaries. Forprojects with potential impacts on localcultural heritage, we will immediately takecorrective actions to ensure the integrityand safety of the heritage.
Community Protection
Nanshan Aluminium Commitment
We fully respect the basic rights of indigenous people, including but notlimited to the right to life, the right to development, the right to use naturalresources (such as mines, land, scenic areas, etc.), the right to bene?t sharing,and the right to informed consent. We commit to strictly adhering to lawsand regulations during the implementation of projects (new, renovation,expansion), closures, decommissioning, divestment, and natural resourceexpropriation. We will never collude with local governments and will ensurefair compensation or resettlement for expropriated natural resources. We alsocommit to communicating in advance and treating indigenous people fairly andimpartially regarding recruitment, work arrangements, wages, job promotions,and other matters, eliminating any discriminatory practices.
Nanshan Aluminium CommitmentWe fully respect the freedom of religious belief in the operating locations and commits to carrying out cultural heritageand religious site protection work in compliance with laws and regulations during daily operations.
We have always upheld our commitment to the community,supporting our development. We actively participate inpublic welfare projects such as educational assistanceand holiday outreach, encouraging employees to engagein volunteer services and charitable blood donations,contributing to community building. Through our actions,we give back to society and work hand in hand with thecommunity to create a harmonious and bright future.
Public Welfare & Care
The Indonesia plant has establisheda public welfare fire brigade, whichis always attentive to the di?cultiesfaced by residents. The brigadequickly responds to disasters suchas fires, promptly dispatching?re?ghting forces and equipment toprovide timely assistance to thoseaffected. In 2024, we extinguishedfires in nearby communities seventimes.
Fire Rescue in Indonesia Plant
We care for the surrounding community and regularly conduct outreach activities for the elderly, organizingemployees to visit the community and deliver living essentials such as milk, while also helping with daily needs andemotional support.
Shandong Community Elderly Outreach
Nanshan Aluminium CommitmentWe strictly comply with national laws and regulations,actively communicate with local communities, and striveto address any adverse e?ects caused by our operationson local communities. We make every e?ort to protect thelegal and traditional rights of local communities regardingtheir land, livelihoods, and the use of natural resources,working relentlessly to promote community development.
/ Symbiotic Supply Chain Building a New Ecosystem Together
In 2024, to enhance community engagement, the US plant funded and organized a college student sports event topromote youth sports development. The event was covered by local media.
US Plant Sponsorship of Sports Activities
In June 2024, the US plant actively fulfilled its social responsibility by providing a $1,750 sponsorship to theLafayette Chamber of Commerce. The Chamber focuses on helping small businesses grow and thrive, representingthe commercial interests of Lafayette and the surrounding area. Through the establishment of a funding supportmechanism, we work together to promote the sustainable development of local businesses and create sharedprosperity.
US Plant Sponsorship of the Lafayette Chamber of Commerce
The Indonesia plant continues to carry outrural revitalization public welfare projects.After learning about the lack of educationalresources in local impoverished areas, the plantdonated funds to build a consistent educationsystem from elementary to middle school inBintan County, providing necessary educationalequipment to improve the teaching environmentfor both teachers and students. We regularlyprovide students with school supplies and haveestablished a free campus transportation serviceto solve transportation di?culties, reduce familyeconomic burdens, eliminate safety hazards, andsupport students' growth and development.
Indonesia Plant Sponsorship of Local Sports Activities
AppendixESG Policies and Key Systems
ESG GovernanceWorking System of the Sustainability (ESG) Committee of Shandong Nanshan Aluminium Co., Ltd.Environment
Management Methods for Environmental ProtectionEnvironmental Information Disclosure System of Nanshan AluminiumRisk and Opportunity Control ProceduresGreenhouse Gas Emission Targets and Implementation PlanRegulations on the Management and Requirements of Hazardous and Toxic WasteStandardised Management Measures for Solid Waste of Nanshan AluminiumManagement System for Greenhouse Gas InspectionEmergency Response Plan of Shandong Nanshan Aluminium Co., Ltd.Management Procedures for Biodiversity Protection of Nanshan AluminiumControl Procedures for Sewage DischargeControl Procedures for Atmospheric PollutantsSocietyOccupational Health and Safety in the Working EnvironmentWorkplace Occupational Injury First AidSafety Production Responsibility SystemSafety Production Inspection SystemManagement System Manual for Intellectual Property ProtectionControl Procedures for After-sales ServiceProcess Control Procedures Related to CustomersControl Procedures for Customer Satisfaction MeasurementProduct and Service Management RegulationsIntegrity Management ProceduresMarketing Management SystemCode of Conduct for Sales PersonnelCustomer Satisfaction Measurement ProceduresImplementation Rules for Trade Secret ManagementControl Procedures for Production ProcessManagement Procedure for the Prohibition of DiscriminationManagement Procedures for Protection of Underage WorkersManagement Procedures for Prohibition of Forced LabourManagement Procedures for Prohibition of Child Labour and Remedial Measures
/ Appendix
Management Procedure for the Right to Freedom of Organising Trade Unions and Collective BargainingManagement Procedures for Protection of Women EmployeesSafety Production Responsibility System for All EmployeesSupplier Management RegulationsManagement Procedures for Implementation of ASI by Suppliers (Contractors and Service Providers)Management Procedures for Prohibiting the Use of Con?ict MineralsInformation Exchange, Consultation, and Communication Control ProceduresEmployee Complaint (Appeal) Management ProceduresEmployee Representative Management ProceduresSafety Management Standard SystemHazard Investigation and Treatment Management SystemContractor (Outsourced Construction) Safety Management SystemInfrastructure and Working Environment Management SystemSafety Production Risk Classi?cation and Control Management SystemSpecial Operations Personnel Management SystemSupplier Whitelist ManagementManagement Procedures for the Protection of Indigenous Peoples' Rights to Self-determination, Prior and Informed ConsentControl Procedures for Local Community ImpactISO 9001 Quality Management ManualGovernanceWork System of Independent DirectorsManagement Procedures for Information DisclosureAnti-corruption PolicyStandards of Suppliers' Business ConductIntegrity Self-Discipline CommitmentSupplier RBA CommitmentWhistleblowing Management PolicyWhistleblowing Management PolicyManagement System for Data SecurityRisk and Opportunity Control ProceduresNetwork Information Management SystemNetwork Information Center Rules and Regulations
Index of Indicators
Index ofGuidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)
Disclosure Requirements
Corresponding Chapter of This Report(For topics not disclosed, provide full explanation in accordance with Article 7 ofthe Guidelines)
Climate change tackling Responding Climate ChangePollutant discharge Protecting NatureWaste disposalProtecting NatureEcosystem and biodiversity protectionEnvironmental ManagementEnvironmental compliance managementEnvironmental ManagementEnergy usageResponding Climate ChangeUsage of water resourcesProtecting NatureCircular economyCircular EconomyRural revitalizationGiving Back to SocietyContributions to the societyGiving Back to SocietyInnovation-drivenInnovation and R&DEthics of science and technologyInnovation and R&DSupply chain securityResponsible Supply ChainEqual treatment to small and medium-sizedenterprises
Responsible Supply ChainDoes Not Involve Overdue and Unpaid Accounts Payable to SMEsSafety and quality of products and servicesProduct QualityData security and customer privacy protectionInformation Security & Privacy ProtectionEmployees
Eager to Attract TalentEmployee CareSafety ProductionDue diligenceResponsible Supply ChainCommunications with stakeholdersStakeholder CommunicationAnti-commercial bribery and anti-corruptionEthical OperationsAnti- unfair competitionEthical OperationsSelf-disclosed Topics/
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E-mail: 600219@nanshan.com.cnTel: 0535-8666352Address: Nanshan Village, Dongjiang Town, Longkou City, Yantai City,
Shandong Province, China