Stock code：688786
2024
YEARJIANGXI YUEANADVANCED MATERIALS CO., LTD.
ENVIRONMENTAL, SOCIALAND GOVERNANCE REPORT
Improving the governance structureBoard of directors, supervisors andSenior' remuneration managementStrengthen risk controlOptimize investor relations servicesPractice business ethics
Improve The Governance SystemAnd Enhance Decision-makingEf?ciency
Climate change responseEnvironmental compliance managementResource ef?ciency
Green And Low-carbon Leadership,Creating A Better Future Together
About this reportMessage from the chairmanHighlights of sustainability 2024
Forward outlookAppendix
About yuean9
Sustainable DevelopmentGovernance
Innovation leading the futureProduct quality assuranceResponsible supply chainData security governanceDigital construction
Quality As The Foundation,R&d Driving New Horizons
Sustainable developmentGovernanceESG mangagementAligning with sustainableDevelopment goalsStakeholder communicationManagement of critical issues
Employee rights protectionEmployee career developmentOccupational health and safetySocial public welfare contributionsSupporting rural revitalization
Empowering Employee Growth AndCo-creating Social Well-being
Contents
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Environmental, social, and governance report 2024
About This Report
Reporting Scope
Names And Abbreviations
This is the second environmental, social, and governance (esg) report released by JIANGXI YUEAN ADVANCED MATERIALSCO., LTD. Which provides a detailed disclosure of the company's concepts and outstanding performance in the ?eld of esg,based on the principles of objectivity, standardization, transparency, and comprehensiveness.
This report is based on JIANGXI YUEAN ADVANCED MATERIALS CO., ltd. As the main entity, including its subsidiaries,branches, and directly af?liated institutions. Unless otherwise indicated, the scope of this report is consistent withthat of the company's annual report.
For ease of expression and readability, “JIANGXI YUEAN ADVANCED MATERIALS CO., LTD." is also referred to as"yuean," "the company," or "we" in this report. In addition, the terms "country" and "government" in this report referto the people's republic of china and its administrative agencies.
Access To The ReportYou can view or download this report from the shanghai stock exchange (https://www.Sse.Com.Cn), cninfo(http://www.Cninfo.Com.Cn), or the of?cial website of JIANGXI YUEAN ADVANCED MATERIALS CO., LTD. (http://ww-w.Yueanmetal.Com).
Feedback
If you have any comments or suggestions regarding this report, please feel free to contact us through the followingchannels.
Reporting Period
The reporting period is from january 1st, 2024, to december 31st, 2024 (hereinafter referred to as the “reportingperiod”). To enhance the comparability and forward-looking nature of this report, some content appropriatelyreferences previous years or includes forward-looking statements. This report is published annually, in alignmentwith the ?nancial year.
The data sources used in this report include the company's actual operational data, publicly available data fromgovernment departments, annual ?nancial data, internal relevant statistical reports, third-party surveys, andthird-party evaluation interviews. The ?nancial data in this report is presented in rmb; in case of any discrepancieswith the ?nancial report, the ?nancial report shall prevail.
Timeframe Of Report Impact
The impact timeframe in this report is de?ned as short-term (within 1 year), medium-term (1–5 years), and long-term(more than 5 years).
Data Sources And Reliability Assurance
Preparation Reference
Shanghai stock exchange. Guidelines no. 14 of shanghai stock exchange for self-regulation of listed companies -sustainability report (trial).China enterprise reform and development society. Chinese corporate sustainable development report guide(CASS-ESG 6.0).United nations. Sustainable development goals (SDGs): a corporate action guide.Global reporting initiative. Sustainability reporting standards (GRI standards).Sustainability accounting standards board (SASB) standards.
Company AbbreviationCompany Full Name
YueAn, The Company, The Headquarter, WeNingxia YueAnGanzhou Yuelong
Email：stock@yueanmetal.ComTel：0797-8705008Address：xinhua industrial park, dayu county, ganzhou city, jiangxi province
JIANGXI YUEAN ADVANCED MATERIALS CO., LTD.Ningxia YueAn Advanced Materials Technology Co., Ltd.Ganzhou Yuelong Advanced Materials Co., Ltd.
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Environmental, social, and governance report 2024
Message From The Chairman
2024 marked a pivotal year for YueAn in deepening its sustainable development strategyand fully advancing ESG management. Amid profound shifts in the global economic land-scape and the prevailing trend of green and low-carbon transition, we consistently integrat-ed ESG principles as a core component of corporate strategy, embedding them throughoutthe entire process from top-level planning to grassroots operations.This year, we re?ned our governance system and enhanced decision-making ef?ciency. In2024, we further improved our ESG management architecture to ensure the deep integrationof ESG strategies with corporate operations. We optimized the risk management system andstrengthened compliant operations, guaranteeing that the company adheres to legal regula-tions and business ethics while pursuing rapid growth. Additionally, we continued toenhance information disclosure, increased corporate transparency, and actively engagedwith stakeholders such as investors and clients to address their concerns, striving to achievemutual bene?ts for all parties.
In the past year, we have led the way in green and low-carbon development, co-creating asustainable future. Against the backdrop of intensifying global climate challenges, we haveconsistently adhered to green and low-carbon principles, actively engaged in climate action,and driven the industry toward a sustainable future. In environmental compliance manage-ment, we have established a systematic and re?ned environmental management system to
implement full lifecycle control of pollutants and waste in production processes, achievinggreen and compliant operations. Furthermore, in response to national circular economyinitiatives, we have advanced scrap steel recycling and reuse, with multiple productscontaining over 80% recycled materials certi?ed by international authorities, thereby reduc-ing the environmental footprint of production operations
This year, we consolidated our foundation in quality and pioneered new paths through R&D.In 2024, we deepened our independent innovation mechanisms, leveraging professionalR&D teams and cutting-edge technological platforms to drive iterative upgrades in productsand technologies, thereby strengthening core competitiveness. In quality control, we com-prehensively optimized the quality management system, enhanced management ef?ciencythrough digital tools, and established a transparent, fair, and equitable procurement envi-ronment to ensure product quality. Additionally, with the rapid development of industriessuch as 5G communications, computing power, and new energy vehicles, the demand forcarbonyl iron powder in electronic components and precision parts has shown an upwardtrend. Capitalizing on our technological and market leadership in carbonyl iron powder, wecontinuously improved product performance to meet client needs and contributed to theadvancement of the industry.This year, we empowered employee growth and co-created social value. In 2024, we contin-
ued to prioritize employee well-being by optimizing the compensation and incentive system,enhancing training programs and career development planning, and improving professionalcompetencies and comprehensive capabilities. These efforts fostered a healthier, safer, andmore cohesive team culture. Additionally, the company actively engaged in public welfareinitiatives, supported rural revitalization, and ful?lled corporate social responsibility tocontribute to societal harmony and sustainable development.Moving forward, we will steadfastly uphold ESG principles, collaborate with stakeholders,and dedicate Yuean's strength to advancing sustainable development in the industry andco-creating a brighter future for society.
Li Shangkui, Chairman of JIANGXI YUEAN ADVANCED MATERIALS CO., LTD.
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Environmental, social, and governance report 2024
Highlights Of Sustainability 2024Economic Performance
Environmental Performance
Governance Performance
Research And Development (R&d) Performance
Social Performance
?
Total Assets
(In Rmb 10k)90,771.41
Net Pro?t
6,781.90(In Rmb 10k)
(In Rmb 10k)41,777.73
7,029.37(In Rmb 10k)
Revenue
Net Pro?t Attribute To The Parent
Total R&d Investment
(In Rmb 10k)2,341.71
Total Number Of Authorized Patents
（Item）
（Article）
Number Of R&d Team Members
71（Person）Total Number Of Published Papers
Total Number Of Employees
（Persons）
Employee Training Coverage
（%）Tax Payment Amount
4,185.85(In Rmb 10k)
（%）
Number Of Employees From Minority Ethnic Groups
13（Persons）Labor Contract Signing Rate
Total Environmental Investment
(In Rmb 10k)
759.23
128.97
Direct Greenhouse Gas Emissions(In Tons Of Carbon Dioxide Equivalent)
27,026.56(In Tons Of Carbon Dioxide Equivalent)
Total Energy Consumption6,405.19(Tons Of Standard Coal)Indirect Greenhouse Gas Emissions
Number Of Shareholders' Meetings Held
（Times）
Number Of Supervisory Board
Meetings Held
（Times）
Number Of Board Meetings Held
8（Times）
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Environmental, social, and governance report 2024
Company’s Business And ProductsThe company's main products are micro-nano metal powders and related deep processing products, including carbonyliron powder series, atomized powder series, soft magnetic powder series, metal injection molding feedstock series, andmicrowave absorbing materials series. Among these, the carbonyl iron powder series and atomized powder series are thebasic products. In addition to being sold directly, they can also be further processed into higher-value-added products suchas soft magnetic powder series, metal injection molding feedstock series, and microwave-absorbing materials series, basedon customer requirements.
Company Overview
About Yuean
The Company is a high-tech enterprise focused on the ?eld of advanced materials- micro-nanometal powder. It was established in 2004 and listed on the Shanghai Stock Exchange in 2021(stock name "YueAn Advanced Material," stock code 688786.SH). The Company holds multiplepatented technologies and has been approved as a provincial-level enterprise technologycenter and a provincial-level carbonyl metal powder material engineering research center. Itparticipates in the formulation of national and industry standards and has passed multiplesystem certi?cations. With its proprietary technology in micron-level carbonyl iron powder, theCompany was awarded the third prize in Jiangxi Province's Scienti?c and TechnologicalProgress Award. It is a pioneer in technological innovation within the powder metallurgy indus-try and is actively involved in important domestic and international technical alliances. Over theyears, the Company has completed numerous national and provincial scienti?c and technologi-cal innovation projects. The Company places great emphasis on talent development, bringingtogether experts, professors, and senior engineers, including two recipients of the State CouncilSpecial Allowance, and has established stable partnerships with external research universities,jointly promoting technological innovation and talent development. The Company, leveraging itsindependently developed micro-nano powder technology, has successfully developed a seriesof high-performance functional materials. These materials are primarily applied in the manufac-turing of electronic components and precision parts. They have effectively replaced similarimported products from major foreign industry players, addressing critical material supplychallenges in key domestic sectors. With broad application prospects, this breakthrough marksa new chapter in independent innovation and industry-academia-research collaboration.
Application
The products include carbonyl iron base powder, carbonyl iron reduced powder, carbonyliron alloy powder, carbonyl iron reduced alloy powder, carbonyl iron phosphated powder,and carbonyl phosphorous iron powder. These products are primarily used in automotiveelectronics, consumer electronics, and electric tools.Carbonyl ironPowder series
ApplicationThe product include iron-based stainless steel alloy feedstock, cobalt-based alloyfeedstock, high-strength steel alloy feedstock, titanium alloy feedstock, and others.These are mainly used in mobile phone parts, wearable smart terminals, auto parts,medical equipment, power tools and other ?elds of metal injection molding products.Metal injectionMolding feedstock
Series
Application
The products include a series of atomized alloy powders, such as gas-atomized alloypowder and water-atomized alloy powder, which are mainly used in mim manufacturingfor 3c structural components, communication base structural parts, mobile phone exteri-or parts, 3d-printed components, and integrated molded inductors.
Application
The products include carbonyl iron soft magnetic powder and atomized alloy softmagnetic powder, which are mainly used in the manufacturing of magnetic cores andintegrated molded inductors, such as chip inductors, high-frequency transformers, and?lters. These products are applied in ?elds such as integrated circuits, solar photovoltaicindustry, communication components, lcd displays, automotive electronics, ai computingpower, and 3c products.Soft magneticPowder series
Application
The products include microwave absorbing powders, patches, and coatings, which aremainly applied in ?elds such as mobile communication (e.g., Mobile phones), r?d, basestations, computers, personal protection, and defense stealth technology.
Microwave absorbingMaterials series
Atomized alloyPowder series
0910
2004
2021
20102008
2023
20122009
2024
2020
2014
2019
Jiangxi YueAn super?neMetal co.,ltd founded
High pressure circulatingcarbonyl iron powderproduction technology wasapproved by the ministryof science and technologyof the people's republic ofchina as the "technologyinnovation fund for smalland medium sizedtechnological"
The Company became amember of the EuropeanPowder MetallurgyAssociation
The companywas recognizedas a "jiangxispecialized,re?ned, charac-teristic and novelsmall andmedium-sizedenterprise"
The company wasapproved as "jiangxihaizhi workstation"
The company's project foran annual productioncapacity of 6,000 tons ofcarbonyl iron powder andother series products hasreached its intendedusable status. Once theproject passes safetyacceptance approval andreaches full production,the annual productioncapacity for this series ofproducts will reach tens ofthousands of tons
Micron carbonyl iron powderindustrialization project wasawarded the "2009 jiangxihigh tech industry majorproject"
The company was ?rstlyrecognized as a "specialized,re?ned, characteristic andnovel little giant enterprise"by ministry of industry andinformation technology
The company was listedlisted on the science andtechnology innovationboard of shanghai stockexchange and wasawarded "nationalmanufacturing industrysingle champion demon-stration enterprise"
The wholly-ownedsubsidiary - ningxiayuean’s metal softmagnetic micro-nanopowder productiondemonstration line projectwas founded.The carbonyl division wasawarded the "nationalworker pioneer award"Awarded the 11th ganzhoumayor's quality award
The company was recog-nized as a "nationalhigh-tech enterprise"
History And Milestone
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Organizational StructureCompany Culture
Honesty And TrustworthinessSelf-motivationQuality FirstPursuit Of Excellence
Our Corporate
Culture
Innovation Is The Primary Driving ForceTechnology Is The Primary Productive Force
And Talent Is The Primary Resource
Our Policy
Be The Global LeadingSupplier And Service ProviderOf High-performance Micro-nanoMetal Powder Materials.
Our VisionTo Be A First-class Enterprise AndCreate A World-renowned BrandOur Mission
Integrity And DedicationQuality And InnovationExcellence And Win-winOur Purpose
Continuous Learning AndStaying Ahead Of The TimesPragmatic, Decisive,and Ef?cientInherent Responsibility
Non-delegableMoral Character, Self-cultivation
PolitenessAnd Love For Family
Our Values
YueAn’s Organizational Structure
Shareholders’ Meeting
Quality Inspection Department
Supervisory Board
Safety And Environmental Protection Department
ChiefEngineer
Of?ce
The Strategic Committee
The Audit CommitteeThe Technical CommitteeThe Remuneration AndAssessment Committee
Board Of Directors
General Manager's Of?ce
Production Planning DepartmentProduction DivisionProduction Assurance DepartmentMarketing DepartmentSupply DepartmentR & D Department (Provincial-level Technical Center)Administration DepartmentHuman Resources DepartmentAudit Department
Board Of?ceFinance Department
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Honers And Awards In 2024
Industry Association
“Premium Quality FromJiangxi Province”
Department of Industry and Information Technology of Jiangxi Province;
Jiangxi Administration for Market Regulation
The 11th GanzhouMayor’s Quality
Award
Leading Group Of?ce Of Ganzhou City
Of High Quality Development
Second Prize In TheGanzhou High-valuePatent TransformationAnd ApplicationCompetition
Ganzhou Municipal Market Regulation
And Administration Bureau
Sub-association for Powder Metallurgy Industry，CSCS
China Powder Metallurgy AllianceMagnetic Materials Branch Of China Electronics Materials Industry Association
European Powder Metallurgy AssociationAlliance Of China 3d Printing Technology IndustryGanzhou City Ganshang Federation
MemberMemberMemberMemberMemberChairman's Unit
OrganizationPosition
2024 Provincial-level"Green Factory"
Department of Industry and InformationTechnology of Jiangxi Province
National Workers'Pioneer Commendation
All-china Federation Of Trade Unions
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Sustainable DevelopmentGovernance
SDGs in this Chapter
Key ESG Issues in this ChapterStakeholder Communication
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Sustainable Development Governance
As a leader in the domestic carbonyl iron powder industry, the company has always been market- and customer-driven.The company has established a sound ESG management framework, integrating the concept of sustainable developmentinto its business strategy. It has also improved its information reporting system, regularly collecting ESG-related data andreporting to the board of directors. The company focuses on energy conservation and carbon reduction, implementingemission reduction measures to minimize its environmental impact, promoting harmonious coexistence betweeneconomic development and environmental protection.
G
SE
ESG VissionLeading new materials technology,Driving a sustainable future
ESG Core Values
Adhering to the People-CenteredPrinciple, Pursuing Innovation and GreenDevelopment to Achieve MutualProsperity for both the Enterpriseand SocietyESG Mission
Innovate with Technology,Becoming the Leader for NewMaterials, Support sustainabledevelopment
ESG Mangagement
Employee Skill Development
Board Of Directors
He Strategy CommitteeThe ESG Strategy CommitteeESG Executive ManagerESG External Experts And AlliancesESG System Management And Operation
Board Of DirectorsThe board of directors is the decision-making body responsible for making decisions on signi?cantESG-related matters and issues, and is also responsible for reviewing the company’s annual ESGreport.
ESG Strategic Committee
The company's ESG strategic committee is in charge of researching and formulating the company'sESG strategy and policies, and of supervising, monitoring, evaluating, and providing recommenda-tions on the company's environmental, social, and governance responsibilities. The ESG strategiccommittee reports to the board of directors and is accountable to the board.
ESG Manager
The ESG manager is responsible for developing the ESG strategic plan and goals, as well asestablishing the governance framework and setting objectives. They oversee and drive theimplementation of projects. Regarding external communication, the ESG manager ensures thequality, consistency, and continuity of the disclosed information.
ESG External Experts And Alliances
Led by the ESG Manager, ESG external experts and alliances are responsible for establishing themanagement process for ESG information disclosure, publishing ESG-related information on theof?cial website and wechat of?cial account, and communicating and engaging with externalstakeholders on ESG.
ESG Operational System
The ESG manager leads relevant departments and personnel in interpreting global ESG standardsand updates, conducting internal advocacy and training on ESG development. They drive theimplementation of the ESG system, identify risks, promote continuous improvement, and overseethe preparation of the ESG report.
To enhance ESG management capabilities and professional expertise, the Company actively organizes and encouragesemployees to participate in internal and external ESG-related training. During the reporting period, employees completedtraining on ESG strategy development and advanced best practices, obtaining relevant certi?cations.
ESG Management Architecture
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Aligning SDGsOur Action
Aligning With SustainableDevelopment Goals
The Company actively responds to the United Nations Sustainable Development Goals (SDGs), striving to align its long-termgrowth with sustainable development objectives.
Sustainable Development Governance, Improving theGovernance StructureBoard of Directors, Supervisors and Senior'Remuneration Management, Strengthen Risk ControlOptimiz Investor Relations Services, PracticeBusiness Ethics
Climate change response,Environmental compliance managementResource ef?ciency
Innovation leading the future, productQuality assuranceResponsible Supply Chain, Data Security Governance
Employee Rights Protection, Employee CareerDevelopmentOccupational Health and Safety, Social Public WelfareContributions, Supporting Rural Revitalization
Expectations AndDemands
Communication AndResponse Method
Stakeholder Communication
The company implements comprehensive and high-ef?ciency stakeholder communication initiatives to accurately under-stand and address the expectations and demands of various stakeholders, helping to improve decision-making qualitywhile building a positive corporate image.
Employee
Diversity and equalityDemocratic managementFair compensationWelfare systemEmployee career developmentOccupational health and safety
Protecting employee rightsAdvocating democratic managementEnhancing employee communication
Conducting employee training
Protecting employee health
Customers
Product quality assuranceHigh-quality serviceCustomer rights protectionInformation and privacy security
Ensuring product qualityContinuous innovation and r&dComplaint handling and resolution
Customer satisfaction surveys
Protecting customer privacy
Robust corporate governance
Shareholder returns
Risk managementInvestor protectionTransparent information disclosure
Governance system improvement
Pro?t distributionRisk management
Investor communicationTimely information disclosureShareholders / investors
Government / regulatory
authorities
Pay taxes in full obeing the lawOperate with integrity and compliance
Energy conservation and emission
reductionSafety production
Comply with laws and regulations
Respond to government policiesPay Taxes in accordance with the law
Adhere to business ethics
Suppliers
Positive cooperation relationships
Collaborative developmentTransparent procurementIncorruptible procurement
Compliance with legal obligations
Collaborative developmentIncorruptible procurement
Public welfare organizations /
community organizations
Support rural development
Social welfareCare for vulnerable groups
Social welfareRural revitalization
Industry associations /
research institutions
Fair competitionFriendly communicationIndustry progressCollaborative development
Participate in industry activitiesContribute to industry development
Stakeholder
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Management Of Critical Issues
Assessment Process Of Critical Issues
The company actively conducts critical issues identi?cation, referring to the evaluation methods from disclosure standardssuch as "shanghai stock exchange listed company self-disciplinary supervision guidelines no. 14 - sustainability report(trial)", "gri 3: material topics", and "international ?nancial reporting sustainability disclosure standard no. 1 - generalrequirements for sustainability-related ?nancial disclosure (ifrss1)", among other domestic and international standards. Byincorporating analysis perspectives on impact signi?cance and ?nancial signi?cance, the company deeply explores andprecisely identi?es topics that have a major impact on business operations, market performance, social responsibility, andlong-term development. This lays a solid foundation for formulating the company's sustainability strategy, optimizingresource allocation, and enhancing competitiveness. At the same time, it provides transparent and credible informationreferences to investors, stakeholders, and society at large.
The company analyzed the impact importance and ?nancial importance of the current year's issues, and presented theresults of the analysis and the priority of the importance of each issue in the form of a matrix.
Impact material but not?nancially materialNeither ?nancially materi-al nor impact material
Both ?nancially materialand impact materialFinancially material butnot impact material
Against the background of the current evolution of global trends, and consid-ering the future outlook of the industry in which the company operates, theuniqueness of its own business model, and the actual situation of its produc-tion and operation, we provide an in-depth analysis of the various challengesand potential opportunities that the company is about to face.In accordance with the exchange's guidelines and with internationalstandards such as gri, sdgs, sasb, msci, etc., the company will build awide-ranging and targeted sustainable development issue pool based on theabove and the key issues in the ?eld of sustainable development in the sameindustry both at home and abroad.
Based on the results of this year's analysis, a matrix of importance issueswas formed for the future of the company, which provides a solid basis forstrategic planning and decision-making.
Impact signi?cance assessment
Based on the actual production and management, the company analyzes thepotential or actual positive and negative impacts of each sustainable devel-opment issue on the external environment, society and the economy.
Financial signi?cance assessment
Through the analysis of impact, dependency, internal stakeholder surveys,and other factors, the company, in conjunction with expert judgment, as wellas risk identi?cation and assessment lists from various departments, identi-?es and evaluates the risks and opportunities under relevant topics. Thisprocess allows for the assessment of issues with ?nancial signi?cance.
Assessment ProcessMethods Of Analysis
Company Background
Analysis
Issue Selection
Assessment Of TheImportance Of The Topic
Recognition Of TheImportance Of The Topic
Results Of Critical Issues Assessment
Greatly important
Greatly important
The importance of economic, social and environmental impacts
Financial importance to the company
Matrix Of Signi?cant Issues Of YueAn
Environmental Compliance
ManagementEnergy UtilizationWater Resource Utilization
Protection of the Employees' Legal
Rights Bene?tsEmployee Training and Developmen
Social ContributionsRural Revitalization
Pollutant Emissions
Occupational Health and Safety
Supply Chain Security
Circular Economy
Waste Disposal
Data Security and Customer
Privacy Protection
Stakeholder CommunicationAnti-Commercial Bribery And
Anti-CorruptionAnti-Unfair Competition
Climate Change Response
Innovation DriveProduct and Service Safety
and Quality
ImportanceIssues
Double importanceOnly ?nancial importanceOnly impact importance
Related
Pollutant emissions, occupational health and safety, supply chain securityClimate change response, innovation drive, product and service safety andqualityEnvironmental compliance management, energy utilization, water resourceutilization, protection of the employees' legal rights bene?ts, employee training anddevelopmen, social contributions, rural revitalizationWaste disposal, circular economy, data security and customer privacy protec-tion, stakeholder communication, anti-commercial bribery and anti-corruption,anti-unfair competition
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Improve TheGovernance SystemAnd Enhance Decision-Making Ef?ciency
SDGs In This Chapter
Key Achievements In 2024
Key ESG Issues In This Chapter
The Shareholders' Meeting Was Held 3 Times, With 16 Agenda Items Approved.The Board Of Directors Held 8 Meetings And Reviewed 40 Items.The Supervisory Board Held 6 Meetings. 16 Items Were Reviewed And Approved.
Anti-commercial Bribery And Anti-corruptionAnti-unfair Competition
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Improving The Governance StructureThe company strictly complied with the "company law of the people's republic of china" (hereinafter referred to as the"company law"), the "securities law of the people's republic of china" (hereinafter referred to as the "securities law"), andthe "corporate governance code for listed companies" among other laws and regulations. The company has formulatedand continuously improved internal management systems such as the "articles of association," "rules of procedure for theshareholders' meeting," "rules of procedure for the board of directors," and "rules of procedure for the supervisory board,"ensuring that the company's operations are in line with established guidelines. At the same time, a sound and transparentcorporate governance system has been established. Through continuous optimization and practical implementation ofthese systems, the company has effectively enhanced the transparency and standardization of its corporate governance.
Board Of Directors
Supervisory Board
Remuneration AndAssessment Committee
The Strategic CommitteeThe Audit CommitteetheThe Technical Committee
Shareholders’ Meeting
Governance Structure Of YueAn
As the authority of the Company, the shareholders’ meeting exercised the decision-making power of the Company'sbusiness policy and investment plan in accordance with the law, and is responsible to all shareholders.To ensure the participation and voting rights of all shareholders, the company formulated the "shareholders' meeting rules"based on relevant laws and regulations such as the "company law," "rules for shareholders' meetings of listed companies,"and "corporate governance guidelines for listed companies," as well as the provisions of the "articles of association." thecompany strictly followed the relevant regulations in convening shareholder’ meetings and hired lawyers to issue legalopinions on the meeting's convening procedures, voting procedures, and results, ensuring the process was legal andcompliant.During the reporting period, the company held shareholder’ meetings combining on-site voting with online voting to ensurethe convenience of participation for all shareholders.
Shareholders’ Meeting
The shareholder’ meeting was held 3 times, and 16 proposals were approved.Key Performance
The company established a board of directors in accordance with the law, serving as the decision-making body, account-able to and supervised by the shareholders' meeting. To regulate board meeting procedures and decision-making process-es, the company formulated the "board of directors meeting rules," clearly de?ning the responsibilities and powers of theboard, and ensuring directors ful?ll their duties correctly and effectively. The company followed the relevant provisions ofthe "company law" and the "articles of association" to elect directors, ensuring a fair and transparent election process.
Board Of Directors
The board of directors held 8 meetings and reviewed 40 items.
Key Performance
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Board Independence
To fully ensure that independent directors can exercise their powers independently and in accordance with the law, theCompany formulated the "Independent Director Work System." By the end of the reporting period, the Company had 3independent directors. Each independent director strictly followed the system's requirements and deeply participated inthe review of major company decisions. Regarding the matters reviewed by the board, the independent directorsmaintained an objective and impartial stance, providing independent opinions and effectively safeguarding the legitimaterights and interests of all shareholders.Board Diversity
The company fully considered the diversity of the board of directors, focusing on the professional capabilities and experi-ences, age, gender, and other aspects of the members. This ensured that the board possessed a broad knowledge base,rich experience, and diverse perspectives, enabling it to make more comprehensive, scienti?c, and visionary decisionswhen facing a complex and changing business environment.As of the end of the reporting period, the company had a total of 7 directors.
FemaleMale
40-50years51-60years61-70years
Non-independent DirectorIndependent Director
Bachelor's Degree And BelowMaster's DegreeDoctoral Degree
Board Diversity Composition
Age
Education
Gender
Position
The company's supervisory board strictly adhered to the provisions of the company law, securities law, and other relevantlaws and regulations, as well as the company’s articles of association and the supervisory board rules. It diligently ful?lledits supervisory responsibilities. With a rigorous and responsible attitude, the supervisory board independently exercised itspowers in accordance with the law, focusing on safeguarding the interests of the company and its shareholders, andactively carried out its duties. Through meticulous oversight, the supervisory board ensured the legality and compliance ofthe company’s business operations, major investments, pro?t distribution, related-party transactions, ?nancial status, andthe performance of duties by the board of directors and senior management, effectively protecting the legitimate rightsand interests of all shareholders.The company's supervisory board consists of 3 members, including 1 employee representative supervisor, elected by theemployee representative assembly. The number and composition of the supervisory board comply with the requirementsof laws and regulations.
Supervisory Board
The Company's board of directors has set up four specialized committees: the Strategy Committee, the Technical Commit-tee, the Remuneration and Assessment Committee, and the Audit Committee. It has established the "Working rules of theBoard of Directors' Strategy Committee," "Working Rules for the Board of Directors' Technical Committee," "Working Rulesfor the Board of Directors' Remuneration and Assessment Committee," and "Working Rules for the Board of Directors' AuditCommittee," clarifying the scope of responsibilities and decision-making processes for each committee. This ensures thatthe committees can ef?ciently and professionally perform their functions, providing strong support and advice to the boardof directors, and promoting the Company's long-term development and governance improvement.To fully ensure the independence of each committee, independent directors participate in all specialized committees,ensuring the fairness and ef?ciency of the Company's governance structure.
Members ofIndependent
DirectorName Of The
Committee
Members ofNon-independent
Director
Percentage Of
Sole Director
Whether The IndependentDirectors Serve As Convener
Strategic CommitteeTechnical Committee
Remuneration AndAppraisal CommitteeAudit Committee
1 Members2 Members2 Members2 Members
4 Members2 Members1 Member1 Member
20%50%67%67%
NoNoYesYes
The Supervisory Board held6 meetings. 16 items were reviewed and approved.
Key Performance
The strategic Committee held 1 meeting. The technical Committee held 1 meeting.The remuneration and appraisal committee held 3 meetings.The audit committee held 4 meetings.
Key Performance
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Board Of Directors, Supervisors AndSenior' Remuneration Management
The company attached great importance to and managed the remuneration system for directors, supervisors, and seniormanagement personnel in a scienti?c manner. The aim was to establish a fair, reasonable, and motivating remunerationmechanism, which fully motivated and continuously stimulated the enthusiasm, sense of responsibility, and innovativepotential of the core management team, laying a solid foundation for the company's steady operation, sustainable devel-opment, and long-term prosperity.Board Of Directors, Supervisors And Senior' Remuneratio StatusBoard of directors, supervisorsand seniors' decision-makingprocess
Board of directors, supervisorsand seniors' basis for remuner-ation determination
The company's non-independent directors and supervisors receive remunera-tion based on the management positions they hold. The remuneration of seniormanagement consists of a basic annual salary and performance-based pay. Thebasic annual salary is determined according to the speci?c positions held withinthe company and in accordance with the company's relevant salary policies,while the performance-based pay is determined based on their annual perfor-mance evaluations. The remuneration of independent directors is in the form ofa service allowance, which is set by the company's board of directors withreference to market rates and approved by the shareholders' meeting.
The remuneration of the company's directors and supervisors is determined bythe shareholders' meeting, while the remuneration of senior management isdetermined by the board of directors.
According to the company's relevant regulations, remuneration for eachdirector, supervisor, and senior management personnel is paid based on theirlevel of contribution and in accordance with the terms of their labor contracts.Independent directors receive a ?xed remuneration as stipulated by the compa-ny's internal policies.Board of directors, super-visors and seniors' actualpayment situation
The company strictly adhered to the "tax collection and administration law of the people's republic of china," the "corpo-rate income tax law of the people's republic of china," and other national tax regulations, faithfully ful?lling its tax obliga-tions, accurately calculating, and paying taxes in full accordance with the law.During the reporting period, the Company paid national taxes amounting to 41.8585 million yuan in accordance with thelaw.
Tax Management
Strengthen Risk ControlThe company attached great importance to and deeply practiced risk management work by establishing a scienti?csystem for risk identi?cation, assessment, monitoring, and response, which comprehensively enhanced the company’s riskprevention and control capabilities.
The company strictly adhered to the "basic norms for enterprise internal control" and other relevant laws and regulations.It developed systems such as "internal control and risk management" and "internal major information reporting manage-ment requirements" to improve its risk management and internal control system. Through systematic processes, strictsupervision mechanisms, and continuous improvement measures, the company ensured the stability of its business opera-tions, enhanced its risk resistance capability, and strengthened its market competitiveness and sustainable developmentpotential.The company established an audit department, which independently exercised its supervisory authority under the directleadership of the board audit committee. It supervised the establishment and effective implementation of the company’sinternal control system.
Risk Management And Internal Control
CaseTraining On Internal Control Risk-related Policies
During the reporting period, the company activelypromoted an employee capability and competencyenhancement program, organizing a series oftargeted training sessions. The training coveredtrains such as "internal control and risk manage-ment," "internal major information reportingmanagement requirements," and "public opinionmanagement and precautions for listed compa-nies," among others. These efforts strengthenedinternal controls, standardized the informationreporting process, and improved the company'sability to respond to public opinion, comprehen-sively covering key areas of the company's opera-tions and supporting its steady development.
At the end of the reporting period, the total remuneration received by all directors, supervisors, and seniormanagement personnel amounted to
4.1063 million yuan.
Key Performance
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Environmental, social, and governance report 2024
The company attached great importance to and continuously strengthened investor relations management, aiming toestablish ef?cient, open, and transparent communication channels. This ensured that all stakeholders could timely andaccurately access information about the company’s operations and strategic development direction, thereby enhancinginvestors' trust and support for the company and improving its market transparency and brand image.
The company strictly adhered to the "management measures for information disclosure of listed companies," the "shang-hai stock exchange star market listing rules," and other relevant laws and regulations. It established the "informationdisclosure management system" to standardize information disclosure practices, promote lawful and regulated operations,and protect the legal rights of shareholders and investors.During the reporting period, the company did not incur any penalties due to violations related to information disclosure.
The company has always placed shareholder interests at the core. In accordance with the provisions of the "articles ofassociation," the company has improved its pro?t distribution mechanism, comprehensively considering the company’soperating conditions, development prospects, and market conditions. A fair and transparent pro?t distribution plan hasbeen formulated to safeguard the overall interests of the company while maximizing the ful?llment of shareholders' invest-ment expectations.
Note: The pro?t distribution plan for 2024 still needs to be submitted to the company's 2024 annual shareholders' meeting for review and approval before it can beimplemented.
The Company strictly adhered to relevant laws and regulations such as the "Company Law" and the "Securities Law," anddeveloped an "Investor Relations Management System" to strengthen effective communication between the Companyand investors, ensuring the protection of the legitimate rights and interests of investors, especially minority shareholders.Through channels such as performance brie?ngs, hotlines, and the SSE's e-interaction platform, the Company respondedpromptly to investor concerns regarding the Company's operating performance, ?nancial condition, future developmentstrategies, progress of major investment projects, expected returns, dividend policies, governance structure, and manage-ment changes.
Investor Relations Management
Information Disclosure Management
Shareholder Rights Protection
Optimize Investor Relations Services
InvestorCommunicationChannels
Performance
Brie?ngs
Shareholders’
Meeting
HotlinesE-mail
Of?cialWebsite
On-siteResearchOnlineCommunication
Of?ineStrategyMeeting
Investor GroupReception Day
ActivitiesSSE’s E-interaction
Platform
Indicators202220232024
Cash dividend per share (rmb)Total dividend payout (10k rmb)Percentage of net pro?t attributable toThe owners of the parent company in the
Consolidated ?nancial statements (%)
0.60
5,133.17
51.96
0.60
5,135.71
64.29
0.25
2,995.83
42.62
Disclosed 4 regular reports.Disclosed 117 interim reports and attachment.
Key Performance
Hosted 39 investor relations events, receiving 218 researchers from 107 institutions.Conducted 4 earnings presentations (including online collective investor sessions).Responded to 97 investor inquiries via the SSE E-Interactive Platform with a 100% response rate.Facilitated 210 interactions through email correspondence and hotline communication.
Key Performance
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Environmental, social, and governance report 2024
CaseBusiness Ethics Training
The Company has always adhered to fair and impartial business conduct standards, strengthening internal managementand raising employee awareness to ensure operational transparency and fairness in decision-making processes, promotingthe Company’s continuous and steady development.During the reporting period, no internal employee misconduct or violations of business ethics occurred.
To strengthen the prevention and control of fraud, the company has formulated the "anti-bribery, anti-corruption,anti-fraud, and whistleblowing management system," which de?nes the scope of bribery, corruption, and fraudulentbehaviors, ensures clear reporting channels, and encourages all employees and stakeholders with direct or indirecteconomic relationships with the company to actively expose any identi?ed bribery, corruption, or fraudulent activities.At the same time, the company implements whistleblower protection by strictly maintaining the con?dentiality ofwhistleblowers' information and reports, and ?rmly preventing retaliation or retribution against individuals for complaintsor whistleblowing actions.
The company actively practiced the requirements of the “anti-unfair competition law of the people's republic of china” andwas committed to creating a fair and healthy market competition environment. Upholding the principle of integrity-basedbusiness operations, the company ?rmly opposed any form of unfair competition. By strengthening internal management,improving market mechanisms, and enhancing service quality, the company effectively maintained market order.During the reporting period, no lawsuits or signi?cant administrative penalties due to unfair competition were encountered.
The Company established the "Anti-Corruption Management Measures," adhering to the principle of prevention ?rst and acombination of punishment and prevention, strengthening corporate governance and internal control management,preventing fraud, and safeguarding the Company's interests. The Audit Department, as the permanent organization foranti-corruption work, is responsible for receiving, investigating, reporting corruption-related complaints, and making recom-mendations for handling.At the same time, to enhance employees' awareness of anti-corruption, the Company actively conducted anti-corruptioneducation and promotion activities to create a clean and fair working environment. During the reporting period, 115 individ-uals signed integrity agreements and other related commercial conduct documents.
Anti-commercial Bribery And Anti-corruption
Anti-Unfair Competition
Responsible Marketing
Whistleblowing MechanismPractice Business Ethics
Public Whistleblowing Channels
TelephoneE-mail
0797-8705008audit@yueanmetal.com
The company actively advocated and practiced the concept of responsible marketing, striving to establish a positive imagein market competition and ensuring that marketing activities were truthful and transparent. While pursuing commercialinterests, the company placed greater emphasis on social responsibility, committed to providing customers with environ-mentally friendly, high-quality products to meet the market's demand for sustainable development.During the reporting period, no violations of relevant regulations on product and service information or voluntary codesoccurred.
During the reporting period, the Company focused onintegrity construction and held a training session on"Corporate Internal Anti-Corruption Legal Education," ledby the executive legal advisor. The training explainedlegal requirements for anti-corruption and clean gover-nance, analyzed the de?nition, consequences, andsanctions of corrupt practices, interpreted the Compa-ny's internal anti-corruption regulations, and clari?edcompliance and non-compliance behaviors in daily work,effectively fostering an atmosphere of integrity andself-discipline within the Company.
A total of35 people participated in anti-commercial bribery and anti-corruption training, including 3 directors
and senior managers, accounting for 42.86% of the total number of directors and senior managers.Total training hours provided for anti-commercial bribery and anti-corruption:
70 hours, of which 6 hours
were for directors and senior management.Average training time for anti-commercial bribery and anti-corruption per participant:
2 hours, of which2 hours were for directors and senior management.
Key Performance
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Environmental, social, and governance report 2024
Green And Low-carbonLeadership, Creating ABetter Future Together
SDGs In This Chapter
Key Achievements In 2024
Key ESG Issues In This Chapter
Environmental Investment: 7.5923 Million RmbEnvironmental Incidents: 0
Environmental Compliance ManagementEnergy UtilizationClimate Change ResponseWater Resource Utilization
Pollutant EmissionsWaste DisposalCircular Economy
Total Energy Consumption 6.405.19 Tons Of Standard CoalGreenhouse Gas Emissions 27,155.53 Tons Of Carbon Dioxide Equivalent
3738
In light of the growing global climate crisis, the company has deeply recognized the severity of the climate crisis and theurgency of participating in global climate governance. The company has thoroughly identi?ed and assessed the climate-re-lated risks and opportunities it faces, integrating environmental protection concepts into aspects such as environmentalmanagement and production processes. This approach has guided the company to actively address the challenges ofclimate change and steadily progress toward the goal of reducing carbon emissions. In doing so, the company haseffectively implemented the national "carbon peak, carbon neutrality" policy and contributed to sustainable development.
The company actively responded to the national "dual carbon" goals and was committed to building a comprehensiveclimate governance system. At the same time, the company placed great emphasis on enhancing employees' professionalcapabilities in carbon management. It organized internal and external training on carbon assets, covering topics such ascarbon trading mechanisms and carbon footprint accounting. This initiative helped employees master cutting-edge knowl-edge, laid a solid foundation for the company's climate governance efforts, and collectively drove the company towardsustainable, low-carbon, and environmentally friendly development.
Climate Change Response
Governance
Strategy
CaseCarbon Asset Management Course
During the reporting period, the company encouraged employees to participate in the carbon asset managementcourse organized by the shenzhen emissions exchange. The training covered topics such as acquiring, trading,monitoring, and compliance strategies for carbon emissions rights. Through this course, the employees were ableto understand the operation mechanism of the carbon market and enhance their carbon asset managementcapabilities to address climate change challenges and achieve sustainable development goals.All employees who participated in the training passed the assessments and received certi?cation.
NS
EAT
Carbon Management System
Organize the control and manage-ment of product design processrelated to carbon emissionThe procurement process organizescarbon emission data accounting
Actively study the content ofcarbon credit evaluationForm carbon neutral targets andindicatorsAlign international and domestictrade regulations based on carbonfootprint data
Gradually establish a carbonemission performance evaluationsystemEstablish and improve risk controlof carbon assets
Gradually learn and under-stand the knowledge ofcarbon trading and regulationsParticipate in diversi?edcarbon trading discussions andlearning
Risk Type
TimeRangeOf TheImpact
Value ChainSegments
Of TheImpact
PotentialFinancial
ImpactRisk DescriptionMeasures
Physical
Risk
TransitionRisk
Acute
Risk
Chronic
Risk
The company headquarters islocated in ganzhou, whereseasonal impacts may lead tosevere convective weatherand cold waves. During therainy season, heavy rainfallmay occur, potentiallydamaging buildings andproduction facilities, andthreatening personnel safety.Some subsidiaries are locatedin hainan, guangzhou, andother areas that may beaffected by typhoon seasons,which could cause damage tothe company's infrastructure.Some regions are affected byhigh temperatures and risingsea levels, which may increasecooling energy consumptionand pose threats to operationalsites.
Shortterm
Mediumand long
term
Operation
Operation
Operating
costs
increase
Operating
costs
increase
Conduct regularassessments of climatechange impacts onbusiness operations;Develop contingencyplans and conduct drillsto ensure rapidresponse duringextreme weatherevents;Collaborate withgovernment agencies toobtain policy supportand funding subsidiesfor enhanced disasterresilience.
Policy
Risk
MarketRisk
The government may introducerelevant environmentalregulations requiring companiesto reduce carbon emissions orimprove resource utilizationef?ciency. The company mayface greater carbon reductionpressure and need to bearhigher carbon emission costs.
Proactively respond to thenational "carbon peak andcarbon neutrality" policyby implementing carbonneutrality action plans toensure corporate opera-tions comply withregulatory requirementsand mitigate compliancerisks arising from policyadjustments.
Adjust market strategiesto meet consumerdemand for sustainableproducts.Climate change may impactdemand in downstreamindustries, such as ?uctuationsin the new energy and electron-ics sectors, thereby affectingthe company's performance.
Short,medium,
andlong term
Mediumto long
term
Operation
Downstream
Operating
costsincrease
Operating
incomedecreases
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Environmental, social, and governance report 2024
To effectively prevent, control, and address the risks and opportunities arising from climate change, the company continu-ally optimized its climate risk identi?cation, assessment, monitoring, and management processes. This provided robustsupport for corporate decision-making, ensuring the company could respond with composure and advance steadily in theface of climate challenges.
Impact, Risk, And Opportunity Management
Against the backdrop of the global active response to climatechange, the company has studied the current situation of theindustry and its own operational characteristics in depth, andformulated practical objectives for addressing climate changewith reference to international advanced standards.The Company's greenhouse gas emissions mainly stem from the consumption of electricity, coke and other resources indaily production activities. In order to mitigate the impact on the environment, the Company has implemented internal costreduction and ef?ciency enhancement work, optimized the process ?ow, improved the utilization rate of raw materials andequipment, and continued to improve the yield rate of its products in order to reduce the consumption of electric energy.Meanwhile, the Company has actively carried out carbon veri?cation and greenhouse gas emission related work. Duringthe reporting period, the Company commissioned a third-party organization to carry out carbon footprint veri?cation andissue evaluation reports, so as to build a solid data foundation for the Company to formulate carbon reduction strategies.
Reduce carbon intensity by30%
Indicators And Targets
Opportunity
Type
TimeRangeOf TheImpact
ValueChainSegmentsOf TheImpact
PotentialFinancialImpactOpportunity DescriptionMeasures
PolicyOpportunities
TechnologyOpportunities
The government may introducerelevant industrial policies tosupport the low-carbon develop-ment of the nano/micro metalpowder materials sector. Thecompany should proactivelyseek such policy incentives toreduce operational costs andenhance pro?tability.The company can increaseinvestment in low-carbontechnology r&d to develop moreef?cient and energy-savingproduction technologies fornano/micro metal powdermaterials. This will improveresource utilization ef?ciency,reduce carbon emissions, meetenvironmental requirements, andenhance core competitiveness.In addressing climate change, thecompany has more opportunitiesto collaborate with universitiesand research institutions throughindustry-academia-researchpartnerships to jointly tacklelow-carbon technology challengesand accelerate technologicalinnovation and commercializa-tion.
Short tomedium
term
Mediumand long
term
Operation
Operating
costsdecrease
Revenuegrowth
Continuously optimizeproduction processes,improve manufacturingtechniques for carbonyl ironpowder and atomized alloypowder, enhance productionef?ciency and productquality, meet marketdemand for high-perfor-mance and environmentallyfriendly products, andexpand market share;Actively collaborate withuniversities to jointly exploremore sustainable andef?cient production technolo-gies and material applicationsolutions, stay ahead ofindustry technology trends,develop more competitiveproducts, and create newmarket opportunities.
MarketOpportunity
With increasing global attentionto climate change, emergingindustries are generatinggrowing demand for nano-micrometal powder materials. Thecompany can leverage theseemerging market opportunitiesto expand its market share.
Proactively responded tonational policies to obtainmore resources andtechnical support.
By leveraging its competitiveedge in green production,the company will activelyexplore opportunities inemerging sectors such asnew energy and energyconservation/environmentalprotection. This includessupplying high-performancemetal powder materials toindustries like new energyvehicles and photovoltaics,thereby capturing growthopportunities presented bydeveloping industries.
Mediumand long
term
Operation
Operationdownstream
Revenueincreases
IdentifyAssessSuperviseManage
The company collaborat-ed with third-partyexperts to identifyclimate change-relatedrisks and opportunities inaccordance with nationallaws and regulations,policy requirements,sustainability trends, andits own operationalrealities.
For the identi?ed risksand opportunities, thecompany conductedassessments to analyzetheir potential major?nancial impacts, timehorizons, and magnitudeof effects.
The company conductedregular self-assessmentsof its climate-related riskand opportunity manage-ment practices, enablingtimely identi?cation ofrisk exposures andimplementation ofcorrective measures.
Based on the identi?ca-tion and assessment?ndings, the companyformulated correspond-ing response measuresto establish aclosed-loop manage-ment mechanism forclimate change risks.
IndicatorUnit2024
Direct GHG emissions (Scope I)Indirect GHG emissions (scope II)Total GHG emisionsGHG emission intensity
Tons of carbon dioxide equivalentTons of carbon dioxide equivalentTons of carbon dioxide equivalentTons of carbon dioxide equivalent
/10k rmb
128.97
27,026.5627,155.53
0.65
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Environmental, social, and governance report 2024
Based on carbonyl iron powder and ultra?ne atomized alloy powder, the soft magnetic powder developed by the Companyserves as a core material for integrated inductors. These inductors feature miniaturization, lightweight design, and lowpower consumption, and are typically used in PCB for computer motherboards and graphics cards. They meet the high-per-formance demands for inductors in sectors like servers and new energy vehicles. Integrated inductors made from magneticpowder exhibit technical advantages including low loss under high-frequency conditions and high saturation magnetic ?uxdensity. These properties contribute to stable power supply, ?ltering, and electromagnetic conversion, making themsuitable for application in new power system scenarios such as new energy vehicles, EV charging infrastructure, andenergy storage systems. The Company's ?ne powder products demonstrate signi?cant power ef?ciency advantages inmedium-to-high frequency operations, aligning with the carbon emission reduction requirements of modern powersystems.
Cleantech Opportunities
Green Products
Case
Carbonyl decomposition is one of the core processes in carbonyl iron powder production. Through technologicalimprovements and innovation, the Company independently designed critical decomposition equipment andadopted a proprietary cyclic thermal decomposition process. By fully considering factors such as heat transferef?ciency, gas ?uidity, and product collection, the process optimized thermal decomposition conditions., as well asimplementing advanced automated control systems for precise temperature and atmosphere control to stabilizethe carbonyl decomposition process, we increased the yield of ultra?ne carbonyl iron powder by 15%, achievinginternationally leading technical standards.
CaseThe Company demonstrated signi?cant technological advantages and resource integration capabilities in re?ningparticle size and enhancing added value of coarse carbonyl iron powder. Through multiple proprietary technolo-gies with core independent intellectual property rights, it achieved directional conversion into high-value-addedapplication materials. This approach not only resolved the waste issue of non-standard particle size powder intraditional processes, but also established a complete industrial chain from base powder to high-end applications.Examples include modi?ed granulated soft magnetic powder and coarse-grade carbonyl iron powder for MIM(Metal Injection Molding). This "graded utilization & directional conversion" model fully embodies the Company'score philosophy of ef?cient resource utilization and value enhancement.Case
The carbonylation reaction of rare earth iron slag, a waste generated from the production process of rare earthpermanent magnetic materials, is used to enrich rare earth and other valuable elements. The rare earth industryis one of the key pillar industries in ganzhou. The implementation of this project is of signi?cant importance forlocal environmental protection, green development, energy conservation, emission reduction, and enhancingeconomic bene?ts.
In order to further improve the environmental performance of theproducts, the Company's ?ve products, including 316L, high-strength steeland 17-4PH, passed the strict testing of the international authoritativecerti?cation body UL, and identi?ed that the content of recycled materi-als is more than 80%, effectively ful?lling the Company's responsibilityand commitment in environmental protection, and making positivecontributions to protecting the environment and promoting sustainabledevelopment.
To build an innovative circular economy system and achieve byproduct recycling, the Company promotes the developmentof the directional conversion technology of carbonylation of rare earth iron slag, creating a value-added cycle of "wastefunctional raw material end product." These initiatives signi?cantly improved overall resource utilization ef?ciency andeconomic bene?ts across the entire production chain.
To improve resource utilization ef?ciency, the company adopted its proprietary cyclic thermal decomposition process. Thisinnovation increased the yield rate of ultra?ne carbonyl iron powder, overcame technical bottlenecks in intensive resourceutilization, and established exemplary practices for the industry's green and low-carbon transition—demonstrating thestrategic value of corporate sustainable development.
Enhancing Resource Utilization Ef?ciency
Byproduct Recycling And Utilization
Recycling system certi?cation
The company strictly complied with the environmental protection law of the people's republic of china, the water pollutionprevention and control law, and the air pollution prevention and control law, as well as industry standards, actively imple-mented the green development philosophy that "lucid waters and lush mountains are invaluable assets," and adhered toits environmental policy of "regulatory compliance with energy conservation and emissions reduction, pollution preventionthrough company-wide participation, and continuous improvement in resource ef?ciency." through comprehensive controlof pollutant and waste generation and discharge, the company achieved green production and compliant operations, withno major administrative penalties imposed by ecological and environmental authorities due to environmental incidentsduring the reporting period.
Environmental Compliance Management
The company continuously improved and established its environmental management system in accordance with iso 14001:
2015 requirements and its speci?c conditions, formulating environmental management measures including the environ-mental management manual, the construction and operation management system for environmental protection facilities,the environmental protection work regulations, and the responsibilities of environmental protection staff. It implementedan environmental protection target responsibility system, with the safety and environmental protection departmentresponsible for the company's environmental protection work. Regular environmental protection technical training wasconducted to promote the effective operation and continuous optimization of the environmental management system.During the reporting period, the company obtained certi?cation for its environmental management system.
Governance
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Environmental, social, and governance report 2024
CaseThe company organized a knowledge seminar on the newenvironmental protection law, providing in-depth interpretationof the legal provisions' key points, scope of application, and thecompany's responsibilities and obligations in environmentalprotection work. This initiative helped employees fully grasp theregulatory content and enhanced their voluntary compliancewith environmental legal requirements.
The company implemented a clean production management system, adopted clean energy and environmentally friendlyraw materials, and improved production technologies and management processes. Concurrently, it established an incen-tive mechanism to recognize outstanding units and individuals in clean production, driving corporate sustainable develop-ment and contributing to societal green growth. During the reporting period, the company was selected for the provincial"green factory" list.Additionally, the company actively conducted organization-wide environmental competency development and awarenessenhancement initiatives. Through structured ehs training programs for employees, it systematically expanded staffenvironmental knowledge and elevated collective safety and environmental awareness, thereby strengthening the humancapital foundation for the company's green development.
Responsibilities Of The Safety And Environmental Protection Department
Environmental Management System Certi?cation
Safety, environmental protection and occupational health training times 10 timesSafety, environmental protection and occupational health training attended 1,100 people
4,100 hours of safety, environmental protection and occupational health training
Preparation and revision of environmental management system (ems) documentation,Assist the management representative in establishing, implementing and maintaining the ems,and conducting related environmental activities,Determination of environmental objectives, targets and programmes,Implement the ems within the department,Identify and evaluate departmental environmental aspects and signi?cant aspects,Comply with identi?ed environmental legal/regulatory and other requirements,Formulate and monitor energy/resource conservation measures,Select hazardous waste contractors, oversee plant-wide waste classi?cation/disposal, andcoordinate with certi?ed recyclers for waste recycling.
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Environmental, social, and governance report 2024
StrategyRisk Type
TimeRangeOf TheImpact
ValueChainSegmentsOf TheImpact
PotentialFinancial
ImpactRisk Description
PolicyCompliance
Risk
Government monitoringagencies have intensi?edsupervision, creatingpotential penalties fornon-compliant operations.For instance, if environ-mental productionstandards are violated—such as exceedingwastewater or emissionslimits—the company mayface mandatory produc-tion suspension andcorrective orders.The hazardous wastewas not disposed of inaccordance with legalregulations, environmen-tal impact assessment(EIA) requirements, andof?cial approval stipula-tions.
Medium
term
Operation
Non-operatingexpenseincreases
Non-operatingexpenseincreases
Cost Risk
Reputation
Risk
To meet pollutantdischarge requirements,the company needs tocontinuously invest fundsand technology in theupgrade, renovation, andoperation maintenance ofpollution control facilities,which will increaseproduction costs andcompress pro?t margins.The public has a high levelof concern about environ-mental issues. If thecompany encounters anyenvironmental complianceproblems, it can easilyattract public attentionand negative publicopinion, damaging thecompany’s brand imageand potentially triggeringfurther investigations byregulatory authorities.
Medium
term
Short,medium,and long
term
Operation
Operationdownstream
Operational
costincreases
Measures
Each department strictly follows thecompany's rules and regulations aswell as national laws and regulations intheir operations;The safety and environmental protec-tion department has increasedsupervision over the company's safety;The carbonyl iron workshop strictlycontrols production to ensure thatwastewater is not discharged;The safety and environmental protec-tion department conducts regularinspections, promptly reports anysafety hazards, and organizes theirelimination;The production department strength-ens safety production training andstandardizes safety operations;Management on-duty personnel aredesignated to supervise productionconditions every evening.
Proactively disclose the company'senvironmental management policies,goals, measures, and pollutantemissions to the public by publishingannual environmental reports, socialresponsibility reports, or disclosingrelevant information through of?cialwebsites and other channels, to ful?llthe public's right to know andenhance public trust in the company.
Establish and improve the environ-mental management system, improveenvironmental management systems,emergency response plans, andhazard investigation and remediationprocedures, ensuring the scienti?c andoperable nature of these systems;Regularly organize environmentalprotection training and conduct drillson environmental managementemergency plans;Strictly dispose of hazardous waste inaccordance with laws and regulations.
Opportunity
Type
TimeRangeOf TheImpact
ValueChainSegmentsOf TheImpact
PotentialFinancialImpactOpportunity DescriptionMeasures
PolicyOpportunity
MarketOpportunity
The company can activelyseek government special fundsupport, ?nancial subsidies,and tax incentives forenvironmental technologyrenovation and resourceutilization projects, reduceenvironmental managementcosts, and develop environ-mentally friendly products andbusinesses.
In the international market,the environmental standardsfor products are becomingincreasingly stringent. Thecompany can strengthenenvironmental managementand improve productenvironmental quality tobreak through internationalgreen trade barriers andenter a broader internationalmarket.With the increasing aware-ness of environmentalprotection, the demand forenvironmentally friendlyproducts and services iscontinuously rising. Thecompany can leverage itstechnological advantages todevelop environmentallyfriendly products andservices, expanding into newbusiness areas.
Medium
term
Long term
Operation
Non-operating
incomeincreases
Operating
incomeincreases
Continuously invest inresearch and developmentresources to explore anddevelop more advancedpollutant treatment technolo-gies and energy-savingemission reduction technolo-gies. While improvingpollution control levels, thesetechnologies may also betransformed into newbusiness growth points;Establish a good corporatebrand image throughproactive and effectiveenvironmental management,enhance social recognitionand reputation, attract moreenvironmentally consciouscustomers and partners, andcreate favorable conditionsfor business development;Actively participate inenvironmental protection-re-lated industry associations,forums, and other activitiesto share experiences withpeers, discuss new trends inenvironmental protectiontechnologies and manage-ment, seize industry develop-ment opportunities, andenhance the company'sin?uence within the industry.
Downstream
Actively apply for govern-ment subsidies and taxincentives for pollutantreduction projects;Carry out environmentalprotection projects to obtaintechnical and ?nancialsupport.
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Environmental, social, and governance report 2024
The company proactively responded to china's national ecological civilization development initiative by organizing respon-sible personnel from relevant departments to conduct comprehensive environmental hazard identi?cation, establishing adedicated task force to formulate corrective action plans with de?ned timelines, and actively implementing all requiredrecti?cations.
The company established comprehensive environmental management objectives encompassing multidimensionalinitiatives including reducing waste emissions in production processes and enhancing resource recycling rates, facilitatingthe synergistic advancement of both environmental and economic bene?ts while driving long-term sustainable develop-ment.
The company strictly complied with the emergency response law of the people's republic of china and the environmentalprotection law of the people's republic of china by commissioning a quali?ed third-party agency to develop a contingencyplan for environmental emergencies tailored to operational realities, ensuring proper functioning of safety and environmen-tal protocols. To enhance emergency response capabilities for environmental incidents, the company conducted regularprofessional training and practical drills to continuously strengthen staff crisis management competencies, effectivelymitigate various safety risks, and establish robust safeguards for stable corporate development.
Indicators And Targets
RiskIdenti?cation
Establish a risk inventory throughdata review and other methods toidentify potential hazards in high-riskareas.
RiskMonitoring
RiskAssessment
RiskManagementConduct pollutant dischargemonitoring, promptly discloseenvironmental monitoring results,and accept regulatory review andpublic supervision.
Evaluate and rank all risks based ontheir severity, magnitude of impact,and probability of occurrence.Implement differentiated managementapproaches for various categories ofpollutants and waste based on theirtypes, hazard levels, and risk classi?ca-tions to enhance resource recoveryrates, establish correspondingemergency response plans, andmitigate the ecological impacts causedby pollutants and waste materials.
Hazard Identi?cation And Recti?cation
Emergency Preparedness And Drills
Case
On january 29, 2024, the company conducted a comprehensiveinspection of production facilities within the plant area. Regard-ing the leakage points found at the carbon monoxide recirculat-ing cooling water pool, maintenance personnel ?rst performedexternal grouting for leak sealing, then entered the pool interiorto conduct thorough and meticulous grouting operations. Thisdual-side remediation approach ensured complete elimination ofleakage hazards, guaranteeing safe and stable operation ofproduction facilities.Case
From 29 january to 6 february 2024, the company strictly imple-mented regulatory requirements to upgrade the plant's storm-water-sewage diversion infrastructure by separating rainwaterand sewage pipelines, installing identi?cation markers at storm-water outlets and sedimentation basins, conducting daily watersampling at the in?ow, mid-section and out?ow points of theon-site waterway for ammonia nitrogen analysis, publiclydisplaying test data at the plant entrance, and systematicallymaintaining comprehensive data records and archives.
Emergency Environment Drill
UnitIndicator2024
Total amount of environmental protection
InvestmentTax and additional medium environmental
Protection tax
10k rmb10k rmb
759.23
0.42
To effectively identify and assess potential risks, the company is committed to establishing a comprehensive and systemat-ic risk and opportunity management process. This initiative aims to analyze the various environmental impacts of thecompany's operations, ensuring resilience and steady progress in a rapidly evolving market landscape.
Impacts, Risks And Opportunities
Environmental Management Target In 2024
Achieved
Compliance rate of 100% for treatedProduction wastewater dischargeZero incidents of potential ?resZero chemical leakage occurrences
100% legal disposal rate for hazardous wasteFull compliance with noise emission standards100% compliance rate for production exhaustGas emissions
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Environmental, social, and governance report 2024
Wastewater Management
The company adhered to the principles of "stormwater-sewage separation and clean-dirty water segregation" to strength-en inspection and maintenance of wastewater treatment facilities, achieving circular and closed-loop water resourceutilization. The company's wastewater discharge outlets were connected to the industrial park's centralized treatmentplant, with online monitoring stations installed where detection equipment was linked to environmental regulatoryplatforms for real-time emissions data transmission. Additionally, quali?ed third-party contractors were commissioned forregular equipment maintenance, performing quarterly wastewater sampling for comparative analysis with data uploadedto the monitoring network. During the reporting period, the company conducted wastewater testing and issued veri?cationreports con?rming compliance with discharge standards, achieving full regulatory compliance.
The company has built two high-ef?ciency wastewater treatment ponds with volumes of 1,932 cubic meters and 2,000cubic meters respectively, which are used at the same time. During the reporting period, the facilities continued to operatestably. The production waste water is ?rst treated by the regulating tank of the sewage treatment station, and thentreated by the advanced complex extraction process, most of it is used for production, and a small amount of it meets the"discharge standard of ferroalloy industrial pollutants (gb28666-2012)" and then enters the sewage treatment plant of theindustrial park. Domestic sewage from of?ce areas was treated via a 50-ton/day sedimentation system before beingchanneled into dayu municipal sewage networks.
The company established a partitioned water system comprising production wastewater drainage, domestic sewagedrainage, stormwater & clean process water drainage, and emergency drainage systems. This integrated frameworkcovered three critical phases - water supply, drainage, and wastewater treatment - enabling inter-factory water recoveryand reuse, with approximately 80% of water usage achieving closed-loop recycling from production to reprocessing duringthe reporting period.
Wastewater Treatment
Wastewater Recycling
Wastewater Treatment Measures
Tail gas scrubbing wastewaterand ?oor washwater weretreated at the on-site produc-tion wastewater pretreatmentstation.
Blowdown water from circulatingwater stations and steam genera-tors, being clean saline wastewater,was directly discharged to the park'streatment system for reuse.
Accident water (including ?re?ghtingdrainage) from new installations wascollected in emergency basins beforebeing directed to production wastewaterpipelines for co-treatment.
Water Supply
ProductionDrainage
Rainwater And Clean SewageProduction Sewage Drainage
Accident DrainageDomestic Sewage Drainage
Wastewater
TreatmentTail Gas Washing Wastewater
Ground Cleaning WaterCirculating Water Station SewageProduction Sewage Drainage
Wastewater Recycling Process
Wastewater Discharge During The Reporting Period
Chemical Oxygen Demand (COD)
Ammonia Nitrogen (NH?-N)
Ph LevelWastewater Discharge VolumeWastewater Discharge Intensity
0.44tons
0.22tons
6-9 92,156tons
2.21Ton/10k Rmb Revenue
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Environmental, social, and governance report 2024
Production Process Of Carbonyl Iron Powder
Case
In the production process of carbonyl iron powder, carbon monoxide gas ?rst reacts with raw materials inthe synthesis stage to produce intermediate products, which are stored and evaporated to decomposeinto carbonyl iron base powder and release carbon monoxide gas. The carbon monoxide released in thedecomposition process and the carbon monoxide not fully reacted during the synthesis process can berecycled to react with new raw materials again. This cycle mechanism not only improves the utilizationrate of carbon monoxide, but also reduces production costs and pollution emissions.
Waste Gas Management
The company strictly complied with the environmental protection law of the people's republic of china and the air pollutionprevention and control law of the people's republic of china, implementing real-time monitoring based on production condi-tions to ensure exhaust emissions remained under control. The industrial exhaust primarily included melting fumes, vacuumextraction exhaust, atomized dust, and screening dust generated during production in the gas atomization workshop.
The company adhered to the emission standard of pollutants for ferroalloy industry (gb 28666-2012). A dust collectionsystem installed above the melting furnace maintained slight negative pressure to centrally capture smoke and dust. Metaldust was channeled through pipelines to bag ?lter ta001 for treatment, with compliant emissions released through exhauststacks after puri?cation. Residual uncollected exhaust was emitted as fugitive emissions. During the reporting period,exhaust gas testing was conducted and veri?ed through issued reports, con?rming zero exceedance incidents.
Waste Gas Treatment
SynthesisRawMaterials
Carbon Monoxide
StorageEvaporationDecompositionCarbonyl Iron
Base Powder
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TypeTreatment MethodNon-hazardous Waste
Hazardous Waste
Governed by the hazardous waste transfer manifest and hazardous wastemanagement plan to regulate the transfer process. Compliance with nationallaws and regulations is strictly enforced.
Managed using the 3r (reduce, reuse, recycle) strategy. Recyclable waste, suchas waste iron slag, is recovered and reused.
Waste Disposal
Noise Management
The company classi?ed waste materials into non-hazardous waste and hazardous waste based on their properties.Non-hazardous waste primarily included iron oxide residue from synthesis reactors, dewatered sludge cakes, and slurryfrom wastewater pretreatment stations. Hazardous waste mainly consisted of waste engine oil and similar materials.Adhering to the principles of reduction, resource recovery, and harmless treatment, the company prioritized comprehensiveutilization of solid waste while implementing strict classi?cation, storage, and management for all generated solid andhazardous waste.
The company's primary noise sources originated from machinery and aerodynamic systems. To mitigate environmentalimpact, the company implemented effective measures including optimized facility layout, adjusted process parameters,installation of low-noise equipment, and construction of soundproof rooms and barriers. During the reporting period,third-party testing agencies conducted noise monitoring and issued compliance reports con?rming all measurementssatis?ed the latest emission standards.
The Company actively implemented the national "Dual Carbon" goals, adhering to the principles of a circular economy andunwaveringly pursuing a green and sustainable development path. As of the end of the reporting period, the Company hadinvested in two photovoltaic power generation projects, operating under a "self-generation for self-use, surplus electricityfed into the grid" model. This enabled the ef?cient operation of rooftop solar power stations, with an annual total powergeneration of 1.213 million kwh, signi?cantly meeting the Company's electricity needs for production and operations whileoptimizing its energy structure. Additionally, the Company actively adopted energy-saving measures, such as graduallyreplacing fuel-powered forklifts with electric forklifts, effectively reducing energy consumption.
UnitIndicators2024
Total Non-hazardous Waste Generated
Non-hazardous Waste DisposedNon-hazardous Waste IntensityTotal Hazardous Waste Generated
Hazardous Waste DisposedHazardous Waste Intensity
TonsTonsTons/ 10k Rmb Revenue
TonsTonsTons/ 10k Rmb Revenue
45.28
45.28
0.001
2,712.972,712.97
0.06
Energy Utilization
The company actively implemented green development principles by establishingthe energy statistics management system and energy measurement data collec-tion & analysis regulations, creating an ef?cient, clean, and sustainable energyframework. Through re?ned management, energy ef?ciency was signi?cantlyimproved. During the reporting period, the company obtained iso 50001 energymanagement system certi?cation.
In strict compliance with the Energy Conservation Law of the People's Republic of China and the Water Law of the People'sRepublic of China, the Company enhanced recycling initiatives for coke, and water - its primary operational resources - toreduce resource costs.
Resource Ef?ciency
Energy Management System
Certi?cationReduce energy intensity by 30% by 2030
Energy Management Targets for 2024
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UnitIndicator2024 Actual Usage
Total Direct Energy Consumption
Total Indirect Energy Consumption
Purchased Electricity
Total Energy Consumption
Energy Intensity
Tons Of Standard Coal
Tons Of Standard Coal
Kwh
Tons Of Standard CoalTons Of Standard Coal /10k Rmb Revenue
Material Utilization
The Company established the “Material Approval Control Procedure”, “Management System for Oil, Reusable Barrels,Pallets, and Packaging Barrels”, and “Warehouse Management System” to build a comprehensive material utilizationcontrol system covering the entire process from material sourcing to warehouse management. This framework ensured theeffective implementation of material utilization efforts.For new materials, the Company required a Material Approval Control Procedure meeting, after which the R&D departmentset up a new material trial team. This team conducted comprehensive testing and evaluation of samples in strict accor-dance with standard procedures to ensure that new materials met production requirements.
Water Resource UtilizationThe company primarily sources its water supply from municipal procurement. During the reporting period, the companyactively implemented the water conservation management system, adhered to the philosophy of water conservation,optimized production processes to achieve recycled water utilization, and signi?cantly improved water resource utilizationef?ciency, thereby maximizing water conservation.
2024 Water Resource Utilization Target
Achieve a 40% reduction in water use intensity by 2030.
IndicatorsUnit2024
Total Water Consumption
Water Use Intensity
TonsTons/10k Rmb Revenue
408,192
9.77
New Material Import Application
Supplier Search/review
Sample EvaluationSample TrialSample FeedbackSample Judgment
OkNg
OkNg
Small Batch TrialTrial FeedbackTrial Judgment
Sample RecognitionMass Production Import
Material Approval Control Procedure
66.10
6,339.09
50,732,153.00
6,405.19
0.15
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Environmental, social, and governance report 2024
Green Of?ce
The company placed great importance on green of?ce practices, considering them a key part of its sustainable develop-ment strategy. It actively implemented energy-saving and emission-reduction measures, promoted resource recycling, andreduced operational costs. By minimizing environmental impact, the company strived to create a low-carbon, eco-friendly,and sustainable of?ce environment.
Environmental Protection InitiativesTo further maintain a green and ecological environment and enhance employees' awareness and responsibility towardsenvironmental protection, the company actively responded to the national call for ecological civilization construction. Itorganized tree planting and afforestation activities to improve the surrounding natural ecology. The company embracesgreen, low-carbon, and sustainable environmental concepts, working together to contribute to the creation of a beautifulhomeland.Measures For Green Of?ce
Installed solar-powered streetlights in the company premises.Replaced traditional bulbs with energy-saving led lights across departments.Upgraded to low-energy consumption air conditioners.Electricity Conservation
Energy Conservation
Water Conservation
Placed water-saving reminders on faucets to promote awareness.
Replaced diesel boilers with electric heating boilers.Provided company shuttle buses to transport employees during commutinghours, reducing gasoline consumption.Encouraged employees to switch to new energy vehicles and electric motor-cycles to lower carbon emissions.
Electricity ConservationWater Conservation
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Quality As TheFoundation, R&dDriving New Horizons
SDGs In This Chapter
Achievements In 2024
Key ESG Issues In This Chapter
R&d Investment: 23.4171 Million YuanThe Cumulative Number Of Granted Patents Has Reached 37The cumulative number of registered trademarks has reached 10
Innovation DriveProduct And Service Safety AndQuality
Data Security And CustomerPrivacy ProtectionSupply Chain Security
6162
The company formulated and implemented a series of r&d management systems, including the r&d project managementregulations, new product development management regulations, and new product design and development processmanagement regulations, standardizing r&d processes and enhancing ef?ciency. Additionally, the company established atechnology center responsible for comprehensive planning and oversight of technology r&d, product development, processimprovements, innovation management, and external collaborations, ensuring stable r&d operations and providing robustsupport for sustained innovation and growth.
Governance
Team Management
Since its establishment, the company has consistently adhered to independent innovation. Leveraging signi?cant r&dadvantages, the company maintained a leading position in china's new materials sector. Guided by the law of the people'srepublic of china on scienti?c and technological progress and relevant industry policies, it steadfastly advanced technologi-cal research and development, continuously driving innovation and upgrading of products and technologies. These effortsinjected strong momentum into the company's sustainable development while contributing to industry progress.
The company placed high importance on r&d team development, actively recruiting high-end technical talent. By enactingthe scienti?c and technological achievement reward measures, which included project evaluations and rewards for autho-rized invention patents, the company motivated r&d personnel to innovate and explore, contributing to technologicaladvancement and product upgrades. During the reporting period, project bonuses totaling 280,000 yuan were awarded.
Research Platforms
With technological innovation as its core competitiveness, the Company has been honored with national titles including the"National Manufacturing Single Champion" and "Specialized, Sophisticated, Distinctive, and Innovative (SSDI) SME" It hasestablished a national-level postdoctoral research workstation approved by the Ministry of Human Resources and SocialSecurity, a provincial-level enterprise technology center, a provincial-level Carbonyl Metal Powder Materials EngineeringResearch Center, and the Jiangxi Provincial Overseas Talent Workstation Additionally, the Company has obtained thehigh-tech enterprise certi?cation and been granted the Jiangxi Provincial Postdoctoral Innovation Practice Base and theDayu County New Energy and New Materials Pilot Base. Leveraging these platforms and recognitions, the Company willcontinue to deepen technological innovation, striving to become a technical leader and innovation benchmark in the indus-try.
Innovation Leading The Future
High-tech Enterprise
R&D personnel:
71(including 9 master's degree holders)
Postdoctoral Innovation Practice BaseCarbonyl Metal Powder MaterialsEngineering Research Center
Dayu County New Energy And New Materials
Pilot Test Base
Provincial Enterprise Technology Center
Dayu County New Energy And New Materials Pilot Base
大余
县
新
能
源新材
料中试基地
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Risk Type
TimeRangeOf TheImpact
ValueChainSegmentsOf TheImpact
PotentialFinancial
ImpactRisk DescriptionMeasures
TechnicalInnovation
Risks
Research projects lackingscienti?c validation orcomprehensive evaluationmay result in insuf?cientinnovation or resourcewastage.Failure to effectivelyidentify and protectintellectual property couldrestrict the utilization ofnewly developed technolo-gies or products.
Medium
term
Operation
Operationalcostincreases
CommercializationRisks
Inadequate application ofresearch outcomes andinsuf?cient protectionmeasures may compromisecorporate interests.Technical incompetence,limited capabilities, or lackof independence amonginspectors could causediscrepancies betweenacceptance results andactual achievements.Insuf?cient investment intesting and evaluation mayfail to mitigate technologicalfailure risks effectively.
Operational
costincreasesLongterm
Operation
Strengthen the developmentof research outcomes,forming an integratedmechanism for independentinnovation that combinesresearch, production, andmarket, to promote thetransformation of researchresults;Establish and improve theresearch outcome accep-tance system, organizingprofessionals to conductindependent reviews andacceptance of the researchoutcomes;
Strategy
Operational
costincreases
Poorly managed outsourc-ing work?ows may hinderleveraging externalexpertise, increasing r&dexpenses, reducingef?ciency, and underminingcore competitiveness.
Process
Risks
Outsourcing
Risks
Weaknesses in r&d processcontrols—such as irregularor inaccurate documenta-tion, delayed archiving, andunclear managementresponsibilities—may causeadministrative chaos,wasting r&d resources andjeopardizing projecttimelines and outcomes.Additionally, the absence ofdetailed fund utilizationrecords and incompleteexpenditure tracking couldtrigger budget overrunsand escalate costs.
Longterm
Operation
Operational
costincreasesShort and
medium
term
Operation
Opportunity
Type
TimeRangeOf TheImpact
ValueChainSegmentsOf TheImpact
PotentialFinancialImpactOpportunity DescriptionMeasures
ReputationOpportunity
The rapid evolution of thenew materials sector,coupled with heightenednational policy support forhigh-tech industries, hasintensi?ed competition forspecialized talent.
Short and
medium
term
Operation
Operational
costdecreases
Personnel
Risks
Improper allocation of r&dpersonnel, absence ofmanagerial incentivemechanisms for coreresearchers, and pooroversight of r&d processesmay lead to excessivecosts, malpractice, orleakage of technicalsecrets.
Operational
costincreasesLongterm
Operation
Enhanced oversight ofresearch work?ows andincentive mechanisms protectsoutcomes via- patent/non-pat-ent technology safeguards,con?dential data management(blueprints, algorithms,research materials), special-ized staf?ng with clearaccountability frameworks.This ensures ef?cient andcontrolled r&d operations.
The company formulates r&dplans based on corporatestrategy, market conditions,and technological capabilities.A robust project initiation andapproval system (e.g.,Scienti?c research projectmanagement regulations)ensures feasibility throughstaged evaluations—includingproject establishment,feasibility assessment, andmulti-level approvals—before?nalizing research proposals.All projects require execu-tive-level authorization toguarantee strategicalignment;Concurrent intellectualproperty reviews secureownership rights throughdocumented ip portfolios.
Establish a research anddevelopment project processmanagement system,adopting strict informationrecording requirements,analyzing experimentalresults, discussing processissues, proposing solutions,and accurately recordinginformation. At the sametime, establish a technicaldocumentation managementsystem, specifying the scopeof archived materials andresponsible departments, tofully utilize the role of r&ddocumentation.Establish a reasonable andapplicable outsourcingprocess managementsystem, organize andimplement effectiveoutsourcing operations,conduct credit investigationson contractors, andthoroughly assess thefeasibility of outsourcingprojects.
The company established anew r&d center andproduction facility inganzhou's urban area. Toattract top-tier technicaltalent, competitive compen-sation packages, optimizedworking environments, andclear career progressionpathways were implement-ed. Enhanced employeeincentive mechanisms alignindividual growth withcorporate objectives toboost engagement andinnovation capacity;Corporate culture and hrpolicies were re?ned toincrease job satisfaction andbuild a highly cohesiveworkforce.
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Impact, Risk, And Opportunity ManagementIndustry-academia-research Cooperation
Indicators Targets
PartnerInstitution
Project TitleProject Content
Optimization study oncombined gas-water atomiza-tion process for fe-basedspherical amorphous magneticpowder
Development of water andgas atomization process andequipment for fe-basedultra?ne powderResearch and industrializationof high performance micro-wave absorbing materials fornational defenseAtomization preparationtechnology and engineeringapplications of high-perfor-mance micro-nano powders(typical demonstrationapplications)
To address issues such as the poor performance stability andimmature preparation process of high-quality rare earth-basedamorphous alloy magnetic powders, a multi-physics ?eld andmulti-scale analytical model for the gas-water atomizationprocess is established to design the atomization process andequipment. Based on pre-experiments with single variableprocesses, the key parameters for the preparation of high-per-formance amorphous powders are identi?ed, and industrialgas-water atomization equipment is developed. Research onthe modi?cation and composition control of rare earthfe-based amorphous alloys is conducted, designing a composi-tion system with both high amorphous formation capabilityand excellent soft magnetic properties.
The research and development not only meet the character-istics of "thin, light, wide, and strong," but also satisfy higherrequirements for new magnetic loss-type microwave-ab-sorbing materials, such as multi-spectrum capability,high-temperature resistance, marine corrosion resistance,and radiation resistance.The research addresses scienti?c issues such as the role ofrare earth elements in deep deoxidation and inclusiondecomposition during the atomization powder-makingprocess, meeting the high requirements for temperatureresistance, mechanical properties, and wave absorption ofkey components in aerospace, energy, and power sectors.
The process and equipment for water atomization of fesicrultra?ne powder and gas atomization of feni50 ultra?nepowder are developed.
To ensure the stable operation of research and development activities and effectively mitigate potential risks in technolo-gy, market, and management, the company has established a comprehensive risk management process. This process aimsto provide solid support for the smooth progress of r&d projects through scienti?c risk identi?cation, assessment, andresponse.
Based on the cooperation principle of "complementary advantages and resource sharing", the company has establishedlong-term industry-university-research cooperation with ganjiang innovation research institute of chinese academy ofsciences, tsinghua university, south china university of technology, jiangxi university of science and technology and manyother research institutions and universities, and jointly undertake and complete the national science and technologyinnovation fund for small and medium-sized enterprises, the national special fund for the development of small andmedium-sized enterprises and other scienti?c research projects. During the reporting period, multiple collaborations wereinitiated, accelerating the integration of independent innovation with industry-academia-research efforts.
The company adhered to a market-demand-driven approach, clearly de?ned research and development goals, andfocused on technological innovation and application breakthroughs in the ?eld of new materials. It aimed to develophigh-performance, environmentally friendly new material products to meet market demand for high-quality materials whiledriving technological upgrades within the industry.
Risk And Opportunity Management Process
Risk Identi?cation And
Assessment
Conduct risk identi?cation across all phases including project initiation,execution, acceptance check, and achievement transformation. Performscienti?c analysis and evaluation of critical factors such as technicalfeasibility, market potential, and resource allocation.
Risk Response Measures
Based on the assessment results, control objectives are established, anda series of targeted control activities are conducted. These activities arethen summarized to form relevant systems or management processes.
Effectiveness Evaluation
Regularly evaluate the effectiveness of systems or managementprocesses and make timely revisions based on actual conditions toensure the effectiveness of the measures.
Research And Development ObjectivesNew product development conversion rate greater than 60%, with an annual completion rate of 112%.
Note: New Product Development Conversion Rate = (Actual Sales Amount of New Products / Planned Sales Amountfor the Period) * 100%
UniversityOf ScienceAnd TechnologyBeijing
GanjingInnovation
InstituteOf The ChineseAcademy Of
Sciences
UnitIndicator2024
Amount of R&D investment10k Rmb2,341.71
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CaseNational Invention Patent AuthorizationDuring the reporting period, Ningxia YueAn's "A method for carbonyl ironpowder and titanium slag production of sand ilmenite by carbonylprocessing" was authorized by the national invention patent, whichopened up a new technical route and can use ilmenite as raw materials toachieve ef?cient production of carbonyl iron powder and titanium slag,successfully breaking through the bottleneck of industrial production,representing a major technological innovation in the ?eld. This break-through not only re?ects the company's innovative ability in the materialpreparation process, but also provides a new technological developmentdirection for the entire industry, further consolidating the company'sleading position in the ?eld of metal powder materials.
Technological Innovation AchievementsThe Company consistently adhered to independent innovation and continuously tackled technical challenges, masteringseveral core technologies related to the preparation and application of micro-nano metallic powder materials. As of the endof the reporting period, the company has accumulated a total of 37 authorized patents, including 23 domestic inventionpatents, 2 overseas PCT invention patents, and 12 utility model patents.
Advancing New Quality Productive ForcesThe Company has pursued quality and ef?ciency improvements as key development objectives, actively deploying NewQuality Productive Forces through technological innovation and industrial upgrading to drive high-quality growth. By imple-menting the Carbonyl Iron Powder Series Products Project and Metal Soft Magnetic Micro-Nano Powder Project, theCompany has enhanced its core competitiveness in advanced materials while providing robust support for operationalizingNew Quality Productive Forces.
Industry ExchangeThe Company has always actively participated in industry exchanges and cooperation, committed to promoting innovativedevelopment in the new materials ?eld. By attending various domestic and international industry summits, technicalforums, and exhibitions, the Company showcased its technical strength and innovative achievements, strengthenedcommunication within the industry, and contributed to the overall industry development.
Case
Metal Soft Magnetic Micro-nano Powder DemonstrationProduction Line Project
On March 26, 2024, Ningxia YueAn construction project
commenced foundation work at the Ningdong Energy
Chemical Industry Base, marking a signi?cant step in the
Company's high-quality development strategy.
The project leveraged the core team's years of process
experience, adopted the latest raw material preparation
technologies, and combined the cost advantages of the
base to reduce the cost of carbonyl iron powder. At the
same time, high-value metal by-products helped expand
business scale, enhanced the Company's competitiveness in
the international market, and provided new momentum for
the implementation of new production capacities.
16th China International Powder Metallurgy And Hard AlloyExhibitionCase
On March 8, 2024, the 16th China International Powder Metallurgy and Hard Alloy Exhibition in Shanghai concluded
successfully after three days.
During the exhibition, the Company showcased a range of products that can be widely applied across various indus-
tries, attracting the attention of many domestic and international customers. This event highlighted the Company's
outstanding research and development capabilities and technical strength in the metallurgical powder ?eld, earning
high recognition and praise from the industry.
Standardization LeadershipThe Company has always been committed to promoting the standardization and standardization of the industry, andactively participates in the formulation of industry standards. As the main drafting unit, the company has led the formula-tion of 11 national and industry standards such as "micron grade carbonyl iron powder". Through deep participation in theformulation of standards, it not only enhances the brand in?uence of the Company, but also contributes to the standard-ization and high-quality development of the entire industry. During the reporting period, the Company participated in thedevelopment of a total of 4 national standards:
GradeNameProgress
Gb/t 21510-2024 “Test Methods And Evaluation ForAntibacterial Performance Of Nanometer Inorganic Materials”
National Standard
Released And ImplementedReleased On July 24, 2024, AndImplemented On February 1, 2025
Gb/t 21220-2024 “Soft Magnetic Metal Materials”National Standard
Released And ImplementedReleased On September 29, 2024,And Implemented On April 1, 2025Gb/t 44655-2024 “Amorphous Soft Magnetic Alloy Powders”National Standard
Released And ImplementedReleased On September 29, 2024,And Implemented On April 1, 2025Gb/z 43890-2024 “Nanotechnologies—guidelines For
Performance Test Method Of Silver Nanomaterials”
National Standard
Released And ImplementedReleased On July 24, 2024, AndImplemented On Feburary 1, 2025
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To comprehensively improve product quality management and enhance customer satisfaction, the Company developedand implemented the Quality Manual during the reporting period. This manual follows the principles of "Quality First, FullParticipation, Focus on Process, Customer Satisfaction," with the Quality Inspection Department overseeing related tasks.The Company meticulously implements quality control details and conducts assessments to ensure steady improvementsin product quality, consistently providing customers with high-quality products and services.The Company has established a quality management system and obtained relevant certi?cations, with its products receiv-ing industry-leading certi?cations, including IATF16949:2016.
Develop and manage quality documents, implement policies and objectives, conduct performanceassessments, and maintain the quality system.Establish quality management mechanisms, organize activities, manage plans and objectives, monitormanagement processes, and implement improvements.Responsible for inspection and release control, inspecting raw and auxiliary materials, products, andprocesses, and controlling product release for shipment.Handle quality incidents and anomalies, implement corrective actions, control risks and opportunities, andperform identi?cation and evaluation.
Governance
The Company strictly adheres to relevant laws and regulations, such as the Product Quality Law of the People's Republicof China, and continuously enhances its quality management system to improve management standards. By implementingstringent quality control standards and inspection processes, the Company ensures that every link meets high-qualityrequirements, thereby guaranteeing excellent product quality and earning widespread customer trust. During the reportingperiod, the Company did not experience any major quality safety incidents or large-scale quality safety complaints.
Product Quality Assurance
To enhance intellectual property (IP) protection, the Company has developed the Intellectual Property ManagementManual, which designates the General Manager as the ?rst responsible person for formulating IP policies and goals. The IPof?ce serves as the core management department, coordinating various IP management affairs. Dedicated personnel areassigned to key areas such as patents, trademarks, and copyrights, forming a comprehensive, multi-level intellectualproperty protection system.In addition, the Company regularly organizes relevant training activities to increase employees' awareness and importanceof intellectual property, further strengthening the Company's intellectual property management system.
Intellectual Property Management
Case4th Amorphous Alloy Powder Application And Development Forum
On December 4, 2024, the 4th Amorphous Alloy Powder Application and Development Forum was held inTangshan, Hebei. The forum focused on the latest research ?ndings, new processes, and market expansionstrategies in the ?eld of amorphous alloy powder.An engineer from the company's R&D department delivered an insightful presentation on the developmenttrends of amorphous powders for soft magnetic composite materials. The presentation showcased theachievements of the company's R&D team in the preparation of high-performance amorphous powders. Theengineer shared insights on how to further reduce magnetic loss, improve the compressibility and moldabilityof amorphous powders, and enhance the overall performance of amorphous alloy powders, all whilemaintaining excellent sphericity and saturation characteristics. This presentation provided new perspectivesfor amorphous powder preparation.
Main Responsibilities Of The Quality Inspection Department
Quality Management Structure
Test Room DirectorTest Room MonitorQuality Management Monitor
On-site Qc
Head of Quality Inspection Department
Physical TestingChemical AnalysisMagnetic AnalysisＭi, Shrinkage And Density Testing
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Environmental, social, and governance report 2024
CaseKey Process Training SeriesIn March 2024, the Company organized a series of training activities focusing on the key process of themixing stage, aiming to enhance product quality and production ef?ciency. The training covered the prepara-tion work for mixing, the standardized operation of mixing and packaging techniques, as well as importantprecautions. Assessments were conducted to ensure that each employee could master the key skillspro?ciently.
Meanwhile, the company is committed to enhancing the awareness and capabilities of the quality management team. Byimplementing regular quality education and training, it continuously improves the professional skills and comprehensivequalities of relevant personnel, providing a guarantee for product quality.
Market Risk
Given existing facilityconstraints and equipmentsaturation, simply increasingproduction capacity can nolonger meet market demand.Shifts in product mix introduceoperational risks to thecompany's manufacturingprocesses.
Medium
term
Downstream
Operating
incomedecreases
Decision Risk
Inadequate frontline datacollection during decision-mak-ing has led to misalignmentbetween strategic plans andactual implementation.Signi?cant changes infoundational assumptionshave rendered certainstrategic initiatives unfeasible.Additionally, insuf?cientinternal execution capabilitiespose ongoing operational risks.
Planning Risk
The planning control systemcontains omitted requirementsand fails to incorporate timelyupdates during systemmodi?cations. Risk identi?ca-tion remains incomplete, whileformulated countermeasureslack effective implementation.
Operating
costincreasesShort termOperation
Operating
costincreasesMedium
term
Operation
Risk Type
TimeRange OfTheImpact
ValueChainSegmentsOf TheImpact
PotentialFinancialImpactRisk DescriptionMeasures
During system planning,all product require-ments, including thoseproposed by customers,implicit legal regula-tions, or industry-specif-ic requirements, mustbe identi?ed;Establish a team for riskidenti?cation andevaluate each process;Measures for each planmust undergo continu-ous discussion andcon?rmation, with ?nalimprovement actionsdetermined to ensureeffective implementa-tion.
Strategy
Align the strategic planwith the company'sactual situation anddevelop a feasiblebusiness plan;Each department muststrictly follow thecompany's manage-ment system require-ments for daily opera-tions. Any non-compli-ance should beaddressed promptly,avoiding procrastinationand lax handling;Strengthen the assess-ment of the manage-ment execution abilityof department heads.
Expand the company'sproduction scaleaccording to thestrategic plan andintroduce new equip-ment;Develop the potential ofexisting equipment.
4 quality training sessions, with 150 participants and a total duration of 300 hours.
YueAnIATF16949:2016
YueAnGB/T 19001-2016/is0 9001:2015
Ganzhou YuelongGB/T 19001-2016/IS0 9001:2015
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Opportunity Type
TimeRangeOf TheImpact
ValueChainSegments
Of TheImpact
PotentialFinancialImpactOpportunity DescriptionMeasures
TechnologyOpportunity
MarketOpportunity
The automation productionline will effectively reduce theimpact of human error onproduct quality, and thecompany's demand for fullyautomated production lines isbecoming increasingly urgent.
Adjusting the productstructure and developing newproducts will bring newdevelopment opportunities forthe company.
Mediumandlong term
Operation
Operationacostdecreases
Medium
andlong term
Downstream
Operatingincomeincreases
By introducing newtechnologies andequipment, the compa-ny continuouslyimproves its automationlevel.
Expand the company'sproduction scaleaccording to thestrategic plan andintroduce new equip-ment;Develop the potential ofexisting equipment.
Impact, Risk And Opportunity Management
The company has established the "Risk and Opportunity Control Procedure," which de?nes the responsibilities and authori-ties of the quality inspection department in risk and opportunity management. It evaluates severity, risk frequency, and riskcoef?cient in accordance with risk management review requirements, to comprehensively control risks and seize opportu-nities.
Risk and Opportunity Management Process
Risk And Opportunity
Identi?cation
All departments shall identify risks related to personnel, equipment, materials,methods, and environment (man-machine-material-method-environment, 4m1e),and document them in the “risk and opportunity assessment worksheet”.Risk And Opportunity
Assessmen
The assessment team classi?es risks according to established evaluation criteria—including severity grading standards, occurrence frequency benchmarks, andacceptability thresholds—and subsequently updates the “risk and opportunityassessment matrix” with comprehensive analysis.
Risk Mitigation Strategies
Based on the evaluation results, mitigation measures shall be formulated andrecorded in the “risk and opportunity review report”.Measures Improvement
Verify the effectiveness of measures under actual operating conditions andconduct periodic reviews and improvements.
Indicators And Targets
Quality Management Measures
The company advocates a "quality ?rst, integrity-based" philosophy, emphasizing continuous improvement to ensureeffective operation of the quality management system and guaranteed customer satisfaction. By thoroughly implementinga "zero defect" mindset, we have established clear quality objectives and implemented multi-tiered performance evalua-tions (monthly/quarterly/semi-annual) aligned with departmental responsibilities. This ensures systematic decompositionand execution of quality targets across all organizational levels, providing comprehensive assurance for goal attainment.
The Company has always emphasized process management, implementing rigorous monitoring for every step of productproduction. The strategy follows the principle of “prevention before the event, control during the process, and veri?cationafter the event.” The Company has formulated management guidelines such as the Raw Material Inspection Work Instruc-tions,Semi-Finished Product Inspection Work Instructions, and Product Inspection Work Instructions, achieving comprehen-sive quality control from the source to the ?nished product. Additionally, the Company promotes green inspection practic-es, fostering a harmonious balance between environmental protection and quality, thereby enhancing the company'sin?uence in the industry.
2024 TargetsFirst-pass Yield Rate >96%--achievedCustomer Satisfaction With Products And Services >95%--achieved
Full Lifecycle Management
Raw Material
ControlProcessSupervision
Factory Testing
According to the "raw material inspection operation manual," thepurchased raw materials/recycled materials and auxiliaries areinspected in accordance with the "technical standards for raw andauxiliary materials." this ensures that all raw materials, auxiliaries, andrecycled materials meet the company's standard requirements.In accordance with the "semi-?nished product inspection operationmanual," semi-?nished products from the processes of carbonyl,magnetic materials, atomization, and feeding are inspected accordingto the operating speci?cations. This provides auxiliary reference forthe ?nal product production.According to the "product inspection operation manual," the productsproduced from carbonyl, magnetic materials, atomization, and feedingare inspected based on company standards or customer requirements.This provides auxiliary reference for the ?nal product production.
UnitIndicators2024
Product Quali?cation Rate
%Annual Quality Internal AuditTimesThird-party Sampling InspectionTimes
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Environmental, social, and governance report 2024
Number of customers participating in the survey: 77Overall customer satisfaction score: 98.82 points
Response to customer complaints assessment times 2 timesThe passing rate of customer complaint response assessment is 100%
Customer Rights Protection
The Company has established the "Hazardous Substance Management System," aimed at comprehensively monitoringvarious hazardous substances that may be involved in the production process, ensuring the safety of the productionenvironment and the quality of ?nished products. To achieve this, the Company regularly conducts relevant tests andgenerates inspection reports. As of the end of the reporting period, the candidate list of Substances of Very High Concern(SVHC) has been updated and expanded to over 240 items, demonstrating the Company’s strong commitment to environ-mental protection and health.
The Company adheres to the principle of "customer-centered" service and has established the "Customer Credit Manage-ment System" and "Process Control System Related to Customers" to standardize service processes and improve servicequality. The Marketing Department, as the coordinating management unit, follows the system's requirements, fromcustomer demand analysis to post-sale tracking and feedback, forming a closed-loop management system. At the sametime, the Company conducts regular training to continuously improve the team's professional capabilities and serviceawareness, ensuring that customers receive ef?cient, accurate, and attentive service, and continually enhancing customersatisfaction.
To address customer needs and feedback, the Company has established the " Process Control System Related to Custom-ers," which clearly de?nes the entire process from complaint reception, issue analysis, solution development, to follow-upand feedback. This ensures that each stage is handled by the responsible person and executed ef?ciently. Additionally, theCompany conducts periodic customer complaint response assessments to continuously improve service quality andenhance customer trust.
Hazardous Substance Detection
Complaint Management
Complaint Process
Customer Complaints Received
Set Up 8d TeamDevelop Containment Measures
Reason Analysis
Ok
NgDevelop And Implement Corrective Measures
Verify Corrective Measures
Prevent And Standardize
Customer ResponsesRecord And File
Ng
The Company upholds the principle of "customer-centricity" and has established the "Customer Satisfaction MeasurementProcedure." Every year, the Company conducts a regular customer satisfaction survey, utilizing questionnaires and dataanalysis to comprehensively understand customer experiences and feedback on products and services. Additionally,through market research, the Company analyzes and predict current and future customer needs, identi?es customerexpectations and pain points, and formulates improvement plans to ensure greater value for customers.
Customer Satisfaction
Monitoring Report
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Environmental, social, and governance report 2024
Risk Type
TimeRangeOf TheImpact
ValueChainSegmentsOf TheImpact
PotentialFinancial
ImpactRisk DescriptionMeasures
SupplierSelection
AndManagement
MaterialProcurementProcess
May result in substandardmaterials, in?ated pricing,inadequate supply quali?ca-tions, fraudulent practices, oreven corrupt activities.
Short term
Upstream
AndDownstream
Operational
costincreases
Delayed deliveries or non-com-pliant quality disrupt produc-tion schedules and productperformance, leading tomissed deadlines/require-ments. Unexpected price hikesincrease costs. Insuf?cientcontinuous supply capacityand unresolved quality issuesfurther exacerbate risks.
May cause stockouts,overstocking, or increasedprocurement costs. Incorrectorder veri?cation orunclear/erroneous speci?ca-tions result in materials failingto meet production demandsfor timelines, quantities, orquality.
Operational
costincreasesShort termOperation
Operational
costincreasesShort termOperation
Strategy
Establish a scienti?csupplier evaluationsystem;The procurementdepartment shouldevaluate and selectsuppliers according tothe principles offairness, justice, andcompetition, followingthe procurementprocedures to determinea quali?ed supplier list,and choose supplierswith the necessaryquali?cations forprocurement;Sign quality assuranceagreements withsuppliers;Conduct annual auditsin accordance withprocedural require-ments.Strictly review thequali?cations, produc-tion, and qualityassurance capabilities ofsuppliers during theinitial supplier introduc-tion phase;Track the supplier'son-time delivery rateand product acceptancerate;Regularly assesssuppliers, using theresults as the basis forfuture procurementactions, implementing a"survival of the ?ttest"approach.Strengthen the indepen-dent inspection work ofpurchasers, carefullyverify the purchasequantity before issuingthe purchase and salescontract, and clearlyspecify and con?rm therequired speci?cations.
To ensure the stable operation of the supply chain system, the Company has developed the Procurement Business Processand designated the Procurement Department as the responsible management body to ensure the effective implementa-tion of the system. At the same time, the Company places great importance on the training and development of theprocurement team. Through a series of professional training programs, the Company comprehensively enhances theprofessional skills and ethical standards of procurement personnel, laying a solid and stable talent foundation for buildinga healthy, ef?cient, and sustainable supply chain ecosystem.
Governance
The Company strictly adheres to relevant laws and regulations, such as the Bidding and Tendering Law of the People'sRepublic of China, in procurement and supplier selection processes to ensure transparency, fairness, and justice. TheCompany has established a comprehensive supplier management system, standardizing procurement practices to reducerisks and enhance the stability and competitiveness of the supply chain, providing a solid foundation for the Company'shigh-quality development.
Responsible Supply Chain
Procurement Department Responsibilities
Oversee the provision of materials, spare parts, and other supplies by guiding, supervising, inspect-ing, and supporting the Company's material supply and warehousing operations.Formulate and update detailed regulations for managing the supply of materials and spare parts.Administer the quali?cation, selection, evaluation, and ongoing maintenance of suppliers forcentrally procured materials and equipment.Establish a procurement price database and conduct regular market analyses on supply-demandtrends and pricing for critical materials.Execute the purchasing and supply of company-designated materials and equipment.Direct the collection, organization, and analysis of market data, along with procurement statistics,to build a robust supplier network.Manage the coordination of raw material transportation, quality inspections, and dispute resolu-tion.
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Opportunity type
TimeRangeOf theImpact
ValueChainSegmentsOf theImpact
PotentialFinancialImpactOpportunity descriptionMeasures
MarketOpportunity
The company's soft magneticpowders are primarily used inthe manufacturing of miniatur-ized, lightweight, andlow-power integrally moldedinductors, which offersigni?cant advantages inhigh-frequency operatingenvironments. With the rapiddevelopment of sectors suchas automotive electronics,consumer electronics, servers,and graphics cards, thedemand for these inductorscontinues to grow, providingthe company with vast marketpotential.
Mediumandlong term
Downstream
Operational
incomeincreases
Increase research anddevelopment invest-ment in soft magneticpowders and continu-ously optimize productquality;Actively explore themarket and tap into itspotential.
Impact, Risk And Opportunity Management
To ensure supply chain stability and seize potential opportunities, the company established the "risk and opportunityassessment analysis table" to comprehensively identify and analyze potential risks in the supply chain, while also exploringvarious opportunities. Through scienti?c analysis, this approach provides strong support for the stable operation andsustainable development of the supply chain.
OperationIneffective contract terms maydisrupt procurement ?ows.Unauthorized externalprocurement agreements,contracts with unquali?ed/in-capable parties, or thosecontaining majoromissions/raud may compro-mise the company’s legalrights.
OperationalcostincreasesShort term
Based on the selectedsupplier, procurementmethod, procurementprice, and other factors,draft the procurementcontract, accuratelydescribe the contractterms, clearly de?ne therights, obligations, andliabilities for breach ofcontract, and sign theprocurement contractaccording to theauthorized approvalprocedures;A uni?ed speci?cationshould be made for theallowable differencebetween the acceptedquantity of importantmaterials and thecontracted quantity.
OperationUnreported material scheduleabnormalities disrupt produc-tion planning.
Operational
costincreasesShort term
Timely follow up on thedelivery status ofmaterials and maintaingood communicationwith the relevantprocurement depart-ments.
MaterialProcurement
Process
OperationLapses in tracking materialslead to delayed deliveries andproduction bottlenecks.
OperationalcostincreasesShort term
Follow up regularly andpush the arrangementof materials.
Delivery Date
Follow-up
OperationDelayed settlements causesuppliers to postponeshipments.
OperationalcostincreasesShort term
Make payment forgoods in accordancewith the contract.
PaymentProcessing
OperationSlow recovery of invoicesdelays ?nancial work?ows.
OperationalcostincreasesShort term
Follow up the progressof the contract, andtimely follow up theinvoice.
Invoice Tracking
Risk Type
TimeRangeOf TheImpact
ValueChainSegmentsOf TheImpact
PotentialFinancialImpactRisk DescriptionMeasures
Risk And Opportunity Management Process
Risk and opportunity
identi?cation
For different stages of the procurement process, risks and opportunitiesare identi?ed and recorded.Risk and opportunity
assessment
For each identi?ed risk and opportunity, a rating is assigned based onseverity and risk frequency to determine the risk coef?cient for each item.
Risk mitigation strategies
For the identi?ed risks, countermeasures are developed, responsibledepartments are con?rmed, and follow-up situations are recorded.
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To ensure data protection, the company has established comprehensive policies covering critical processes such as datacollection and storage. Advanced technical measures are deployed to safeguard data con?dentiality, integrity, andavailability, fortifying the company's information security defenses.Data Security Management
The company attaches paramount importance to data security. Guided by the “data security law of the people's republicof china” and the “personal information protection law of the people's republic of china”, the company has continuouslyenhanced its information security framework and implemented robust security policies. During the reporting period, nodata breaches or customer privacy incidents occurred.
Data Security Governance
Supply Chain Full Lifecycle ManagementSupplier access
Supply Chain Full Lifecycle ManagementThe company has formulated the "supplier admission and management" and "supplier selection and management controlprocedures" to systematize and standardize each link in the supplier admission, review, and evaluation process. Thisensures the effective operation of the supplier management system, controls the supply chain quality from the source, andensures that the products and services provided by suppliers meet the company's quality requirements and strategic goals.
Cooperation with suppliers who violate national laws and regulations, breach contracts,or provide substandard quality is terminated.
Collect the quali?cation certi?cates of potential suppliers, have the suppliers completethe "supplier questionnaire," conduct three trials of the supplier's products, and trackthe trial results using the "material trial tracking form." after all three trials arequali?ed, complete the "supplier capability evaluation form" and have it reviewed andapproved by the relevant departments. Only then will the supplier be included in theapproved supplier list, and various required agreements will be signed.
Suppliers are graded based on their annual assessment scores, and differentmeasures are taken for suppliers with different assessment levels, such as increasingpurchase volume, maintaining purchase volume, requiring corrective actions andreducing purchase volume, or disqualifying them.
Conduct on-site or ?eld audits for different types of suppliers according to the frequencyand method of supplier audits.Conduct annual assessments of suppliers based on quality, price, delivery timeliness,after-sales service, and other factors.
ExitClassi?cationSupplier evaluation
Supplier auditData Security Protection Measures
Data defense
Establish the “customer-related process control regulations” o classify and managecustomer information hierarchically, preventing internal data leaks during circula-tion. All departments must submit formal applications before accessing or borrow-ing con?dential documents, which can only be reviewed under supervision withcopying strictly prohibited.
To ensure data security, the company consistently implements a scheduled backupretention strategy for comprehensive protection.Customer privacy
protection
Data Security Safeguards
The Company employs multi-layered, multi-dimensional protective measures to guarantee data security. Additionally, aCybersecurity Emergency Response Plan has been implemented, de?ning incident response protocols and accountabilitystructures. Regular company-wide training and emergency drills are conducted to strengthen employee awareness andcrisis response capabilities.
Total number of suppliers:
Indicators And TargetsThe company regards the quali?cation rate and timeliness of procurement as core objectives. During the reporting period,it continuously iterated and optimized the procurement process, deepened the ?ne management of supplier relationships,and signi?cantly improved the ef?ciency of internal collaboration, achieving a dual improvement in both procurementquali?cation rate and timeliness.
Supply Chain Safety Management Goal
Ensure the quali?cation rate and timeliness of procurement.
Sustainable Supplier Chain
The company places great emphasis on building a sustainable supply chain, focusing on environmental protection, socialresponsibility, and ethical procurement. Measures such as requiring suppliers to sign the "con?ict-free mineral declaration"and implementing the "sunshine agreement" are used to regulate supplier behavior and promote the creation of a green,transparent, and sustainable supply chain.
The signing rate of the Supplier Sunshine Agreement is
84.28%
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Environmental, social, and governance report 2024
Financial ManagementIn ?nancial management, the Company has implemented an Kingdee ERP system that covers ?nancial processing, fundoperations, cost control, and tax planning. This system comprehensively improves data processing ef?ciency, ensuresaccurate alignment of cash ?ow and information ?ow, and drives the intelligent upgrading of the Company's ?nancialoperations.
In the supply chain process, the Company integrates the supply chain management in ERP system with Customer Relation-ship Management (CRM) system to realize full-process digital control from procurement and inventory to sales. Additional-ly, the Company continuously advances its digital upgrades, and during the reporting period, a comprehensive systemupgrade was carried out to further improve the response speed and ?exibility of the supply chain, laying a solid foundationfor the Company's long-term development.
Amoeba Management ModelThe Amoeba management model divides the Company into several small, independently accountable "Amoeba" units.Each unit independently manages its ?nances and operations, creating an internal competition and cooperation mecha-nism that greatly stimulates employee motivation and creativity. This model signi?cantly improves the overall operationalef?ciency and economic bene?ts of the Company. Additionally, it promotes the rational allocation and optimal utilization ofresources, ensuring the highest ef?ciency in all operational processes.
Human Resources And AdministrativeManagement
In daily operations, the Company integrates the Amoeba management model with the OA system to achieve re?nedmanagement and ef?cient collaboration across various Amoeba units through digital means. This enhances decision-mak-ing ef?ciency, promotes resource optimization, and supports the Company’s growth.
The Company places great importance on digital construction, aiming to achieve intelligent park management and ef?cientservices, while building a modern smart factory that integrates ef?cient operations, intelligent management, and environ-mental sustainability. The Company has been honored with titles such as "Provincial-Level Integration of Informationizationand Industrialization Demonstration Enterprise" and "Information Management Demonstration Enterprise". The Companyhas become an enterprise with a second-level assessment of intelligent manufacturing maturity, further promoting thecompany's in-depth development in the ?eld of digitalization.
Digital Construction
FinanceProduction
ERP:FinancialManagementAccount Processing
Production
Planningand ProcessQualityMonitoringMaterial Data
MaterialManagementLogisticsManagement
WarehouseManagement
Data Record SystemFunds ProcessingCost Management
Fixed AssetsManagementAccounts Receivable,
Accounts Payable
Management
ERP:Procurement
Management
Amoeba:HumanResource Management
CRM:Customer
RelationshipManagementIntelligent Factory:Environment, Safety
MySQL:Data ,Information System
OA:Administrative
ManagementMES:Manufacturing Execution
BOM:
Human ResourcesAnd AdministrationSupply Chain
Financial and Tax
Management
EquipmentManagementSystem
Robotic GasMonitoring
Real-timeMonitoringOf Worker
SafetyReal-timeMonitoring
OfEmergencies
DroneEnvironmentalMonitoringFire SafetyMonitoring
Equipment
SafetyMonitoringCustomer Relations
Customer Management
Acceptance andPayment
Archive Management,Approval,StorageReport CenterBusiness IntegrationKnowledge CommunityPotential Customer
Data CollectionCustomer Evaluation and
Sales Forecasting
Purchase Quantity
And Quality
Supplier Price
Management
Personnel Management
Production Management
The Company has implemented the ?rst phase of the ManufacturingExecution System (MES) in the granulation and magnetic materialworkshops. This digital upgrade covers production planning, processcontrol, quality monitoring, material data, and warehouse manage-ment, enabling the intelligentization of the production process. Thishelps the Company make faster and more accurate decisions, leading itinto a new era of ef?cient, transparent, and intelligent manufacturing.
OA SystemThe Company’s OA system covers document management, approval processes, data storage, report centers, businessintegration, and knowledge communities. It ensures the ef?cient ?ow of information and resource sharing, improvingcross-department collaboration. This provides strong support for the Company’s re?ned management and intelligentdecision-making processes.
Supply Chain Management
Intelligent Factory
The Company leverages modern information technologiessuch as the Internet of Things (iot), big data analytics, andcloud computing to build a smart park project. By utilizingthe operation control center, it achieves real-time, precisemonitoring of plant safety and environmental information.This ensures comprehensive and reliable safety andenvironmental protection for employees while improvingoverall work quality and ef?ciency, standardizing produc-tion processes, and providing solid data support forsustainable development.
Intelligent central control center
Smart Manufacturing Maturity Assessment Level Ii Certi?cate
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Empowering EmployeeGrowth And Co-creatingSocial Well-being
SDGs In This Chapter
Achievements In 2024
Key ESG Issues In This Chapter
Labor Contract Signing Rate: 100%Employee Training Coverage Rate: 100%
Protection Of The Employees' Legal Rights Bene?tsEmployee Training And DevelopmenOccupational Health And Safety
Rural RevitalizationSocial Contributions
Work Safety Investment: ?4.125 Million
8788
The company advocates the concept of diversity, equality and inclusion to ensure that every employee is provided withequal opportunities in terms of promotion, training and development. In the process of operation and management, thecompany resolutely opposes discrimination, harassment, etc., and prohibits the use of child labor and forced labor. At thesame time, we fully respect the rights of employees to freedom of association and collective bargaining in accordance withthe law. During the reporting period, the company did not experience any labor discrimination or forced labor.
Equality And Diversity
Employee Onboarding And OffboardingManagement
The company strictly complies with the “civil code of the people's republic of china”, the “labor law of the people's republicof china”, and other relevant laws and regulations, fully respecting and protecting employee rights. The company hasestablished comprehensive management systems, including “human resource planning and demand control management”and the “employee handbook”, to develop a robust human resources framework that fosters harmonious and equitablelabor relations, supporting long-term corporate growth.
The company attaches great importance to and actively promotes the protection of the rights and interests of femaleemployees to ensure gender equality in the workplace. The company, in strict accordance with relevant laws and regula-tions, actively implements maternity leave, breastfeeding leave and other rights and interests protection measures forfemale employees, and conveys the company's care and support for female employees with practical actions to effectivelyenhance employee satisfaction and loyalty.
In order to standardize the management of employee recruitment, the company has formulated the "recruitment andemployment management system" and "management measures for the entry and probation period of new employees"and other rules and regulations, which follow the principle of "merit-based appointment", ensure that the ability of employ-ees matches the position, uphold the principle of equality and comprehensive inspection, and ensure that the employeerecruitment process is legal and compliant.In the recruitment process, the company treats all applicants equally and fairly, and prohibits any form of discriminationand child labor. The company requires the human resources department to strengthen the age review work to prevent theoccurrence of false child labor. During the reporting period, the company did not have any violations of child labor recruit-ment.
Employee Rights Protection
Staff Composition
GenderStructure
RankStructure
AgeStructure
FemaleMale
Senior ManagementMiddle ManagementGrass-roots Staf
Below Undergraduate Level
Undergraduate
MasterProduction StaffSales StaffTechnical StaffFinancial StaffAdministrative Staff
Under 30 Years Old
(Excluding 30 Years Old)Age 50 And Older30-40 Years Old
(Including 30 Years Old, Excluding 40 Years Old)
40-50years Old
(Including 40 Years Old, Excluding 50 Years Old)
Professional
Structure
Educational
Structure
Female Employee Protection
CaseInternational Women's Day Event
To re?ect the company’s "people-oriented" corporateculture and special care for female employees, thecompany provided a welfare fund for female employeeon international women's day and organizedteam-building activities. This strengthened the compa-ny’s cohesion and effectively promoted harmoniousteam development.
The company utilizes various recruitment channels, including campus recruitment and social recruitment, expanding thetalent selection scope and improving recruitment ef?ciency. Additionally, the company actively recruits veterans, furtherenhancing its overall competitiveness and social image.The company follows the relevant provisions of the "employee offboarding management system" to ensure that theresignation process is standardized and compliant, effectively mitigating labor dispute risks.
Recruitment Channels
Key PerformanceKey PerformanceKey Performance
Labor Contract Signing Rate: 100%Total Workforce: 577 employeesVeteran Employees:
26Ethnic Minority Employees: 13
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Compensation And Performance Evaluation
Employee Bene?ts
The Company has established a "Salary Management System" to regulate compensation management, aiming to build afair, just, and motivating salary structure. The Company has enhanced its incentive mechanisms, sharing the growthachievements with employees to stimulate the team's potential and creativity. The Company implements a "base salary &performance bonus" compensation structure, closely linking individual performance with the overall company perfor-mance, thereby effectively driving the Company to achieve its business objectives.
The company is committed to building a competitive employee bene?ts system, deeply integrating statutory bene?tswith customized care to enhance employee satisfaction and loyalty, while strengthening internal cohesion and unity.Additionally, the company implements a standard working hours system to ensure employees maintain a balancebetween work and rest, further protecting their rights and improving work ef?ciency. During the reporting period, thecompany's social insurance coverage rate reached 97%.
Salary Structure
The company conducts monthly performance evaluation assessments. Evaluators assess employee performance forthe previous evaluation period in accordance with the employee performance plan and evaluation form, with depart-ment heads consolidating the performance evaluation results for all employees in their respective departments.Employees who are unclear about or disagree with their evaluation results must complete the performance evaluationappeal form and submit it to the human resources department within the evaluation period or within 3 days after theevaluation concludes.
Fixed SalaryAnnual ServiceAward PerformanceBonus Special
Appeal Process
FemaleMale
New Hires By Gender
Under 30 Years Old
(Excluding 30 Years Old)
Age 50 And Older30-40 Years Old
(Including 30 Years Old,Excluding 40 Years Old)
40-50 Years Old
(Including 40 Years Old,Excluding 50 Years Old)
New Hires By Age
New Entry Of Employees
New hires: 111
Key PerformanceKey PerformanceKey Performance
The hr department conducts a preliminary review of the appeal report and provides a responsewithin one day regarding whether the appeal will be accepted.For accepted appeals, the department investigates and veri?es the content of the appeal, thensubmits the investigation results to the performance and compensation evaluation managementteam.If the appeal is substantiated, the hr department will re-evaluate the appellant according to themonthly evaluation process, and the results will be considered the employee's monthly evaluationscore.During the appeal process, if any unfair behavior is identi?ed during the evaluation, appropriatedisciplinary actions will be taken according to the relevant regulations.
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Employee Bene?ts System
Statutory Bene?ts
Special Bene?ts
Employee DormitoriesStock Option IncentivesEmployee ClubDepartment Team BuildingHoliday GiftsCompany GymSick Leave SympathyHealth LecturesHealth Days ActivittiesCommercial InsuranceHigh-temperature Subsidy
Five Insurances and One Housing FundStatutory Holidays, Other Paid Leave, and Other Holidays
Employee Care
The company steadfastly upholds a people-oriented core value, placing paramount importance on employee welfareand development while fostering a warm, harmonious, and collaborative work environment.To address employees' practical challenges, the company has implemented a series of assistance programs for staffin need. These initiatives aim to alleviate dif?culties, strengthen belonging and well-being, enhance team cohesion,and establish a solid humanistic foundation for sustainable growth.Concurrently, the company recognizes retired employees' contributions and well-being by presenting sympathy gifts,expressing profound gratitude and respect for their service.
Employee Cultural And Recreational
Activity Room
Employee Activity Room
Feb 3, 2024: Visiting Employee In Dif?culty
From Production Division
Aug 27, 2024: Visiting Employee In Dif?culty
From Production Division
Sep 26, 2024: Visiting Employees On Medical
Leave For Critical Illnesses
Nov 13, 2024: Visiting Employee In Dif?culty
From Production Division
In March 2024, Retired Employees Of The
Administration Department
In August 2024, Retired Employees
From Production Division
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CaseStaff Congress MeetingOn July 20,2024, the Company convened the 3rd Session of the1st Staff Congress. The meeting elected the 2nd Trade UnionCommittee, Fund Review Committee, and Women WorkersCommittee. Key agenda items included reviewing the CollectiveLabor Contract to ensure full compliance with legal requirementsand comprehensive protection of employee rights.
The company has established a labor union and an employee representative assembly to implement democraticmanagement and deepen employee participation in corporate decision-making processes. At the same time, thecompany advocates an open and transparent communication mechanism, encouraging employees to actively contrib-ute suggestions through the union platform, jointly participating in corporate management, and promoting the compa-ny's sustainable and healthy development.Additionally, the company provides multiple communication channels, including suggestion boxes, emails, wechat, orface-to-face meetings, ensuring that every employee's opinions are heard and responded to promptly and effectively.
The company places great importance on employee satisfaction, considering it a key indicator of management effec-tiveness and employee well-being. Regular comprehensive employee satisfaction surveys are conducted to gain deepinsights into employee needs and expectations, identifying both strengths and areas for improvement in managementpractices. By designing scienti?cally structured questionnaires, collecting broad feedback, and conducting in-depthdata analysis, the company ensures that every piece of feedback is promptly addressed and effectively acted upon,enhancing employees' sense of involvement and belonging.
Democratic Management
Employee Satisfaction
Employee Activities
"Promoting May Fourth Spirit, Establishing
Youth Ideals" – New EmployeeTeam-building Event
Marathon Cross-country Race
The company is committed to building a comprehensive career development system, meticulously designing employeepromotion paths to unlock individual potential and drive corporate growth. The company emphasizes employeetraining and development, offering customized training programs to enhance professional skills and overall competen-cies.
Employee Career Development
Number of employees in dif?culty assisted: 12
Key PerformanceKey PerformanceKey Performance
Labor union members accounting for 91% of active employees.Number of projects approved by the labor union: 3
Key PerformanceKey PerformanceKey Performance
Number of employees participating in the satisfaction survey: 303Employee satisfaction rate: 94.20%Key PerformanceKey PerformanceKey PerformanceTug-of-war Competition
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The company places great emphasis on employee training and development by designing and implementing a seriesof personalized training programs. These initiatives comprehensively enhance employees' professional skills andleadership abilities, improving their overall competencies while continuously injecting vitality and innovative thinkinginto the company’s long-term growth.
Employee Training
Management
Clerk
Supervisor
Manager
DepartmentHead
Production
Operator
Line Leader
WorkshopManager
Department
Head
Technology
Technician
SeniorTechnician
R&D Manager
R&D Department
Head
Chief Engineer
Career Development Channel
Training SystemThe company’s training program consists of pre-employment training, on-the-job training, andposition-speci?c training.Pre-employment training covers company overview and culture, quality policies and objectives,key company policies and regulations, ?re safety knowledge, and workplace safety training.On-the-job training and position-speci?c training are conducted based on job requirements andoperational needs.
Employee PromotionThe company has established the promotion mechanism management policy, clearly de?ning promotion criteria andprocesses. This framework creates clear career progression pathways, motivates employees to realize their potential,and enhances their professional capabilities, laying a solid talent foundation for the company's sustainable develop-ment and competitive edge.
Internal Employee Transfers/Applications:
Key PerformanceKey PerformanceKey Performance
Amount of employee training investment: 168.4 thousand yuanTotal training sessions conducted: 252Total number of employees trained: 577Total training participations: 6,655Employee training coverage rate: 100%
Key PerformanceKey PerformanceKey Performance
Director
Production
Director
CaseOrientation TrainingTo facilitate new employees' rapid integration into the company environment and clarify their career devel-opment direction, during the reporting period, the company proactively carried out comprehensive orienta-tion training programs. These programs covered corporate culture, company policies, job-speci?c skills, andsafety protocols, aiming to holistically enhance new employees' professional competence and job readiness.
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Work Safety Committee Responsibilities
Implement national safety policies, laws, regulations, and standards, establish sound safety manage-ment systems, and supervise their execution across departments.Conduct company-wide risk assessments and perform comprehensive safety inspections at productionsites.Oversee company transportation, ?re safety, critical workstations, ?re equipment, and special protectivegear management and inspections.Organize safety training programs and conduct company-wide safety education and assessments.
Occupational Health Leadership Group Responsibilities
Arrange pre-employment, on-the-job, and post-employment occupational health examinations forworkers.Conduct occupational health education and training.Provide workplace protective facilities and personal protective equipment (ppe) that meet occupationaldisease prevention requirements.Perform routine monitoring of occupational hazard factors in workshop environments.Maintain records of hazard monitoring data, occupational health management logs, and relatedarchives.
To enhance work safety management and implement the national safety policy of "safety ?rst, prevention-oriented,comprehensive management," the company has formulated a series of measures, including the full staff work safetyresponsibility system, safety technical procedures, and occupational disease prevention plan and implementationprogram. Regular safety responsibility assessments are conducted to encourage employees to actively ful?ll safetyduties and improve management ef?ciency.Additionally, the company has established a work safety committee and an occupational health leadership group toclarify the responsibilities of management, functional departments, and employees, reinforcing occupational healthand safety protections.
To comprehensively enhance employees' safety management capabilities and deepen safety awareness, the compa-ny prioritized systematic safety training initiatives during the reporting period. Employees were actively encouragedto participate in external programs to ensure up-to-date knowledge of safety regulations, standards, and operationalprotocols, thereby strengthening risk response preparedness.During the reported period, 2 employees obtained certi?cation through Ganzhou Health Commission's occupationalhealth training program.
Occupational Health And Safety Management
The company strictly complies with the work safety law of the people's republic of china and the occupational diseaseprevention and control law of the people's republic of china, establishing a robust occupational health and safetymanagement system to strengthen risk management and create a safe, healthy working environment for employees.During the reporting period, no major work safety incidents occurred.
The company has also implemented the work safety reward and penaltysystem, recognizing individuals and teams with outstanding safety performancewhile penalizing violations and accident liabilities to reduce safety incidents.The company has obtained occupational health and safety management system(ohsms) certi?cation.
Occupational Health And Safety
Occupational Health And SafetyManagement System Certi?cationOccupational Health & Safety Training
CaseWork Safety Month Training
On March 28, 2024, the Company organized Work Safety Monthtraining to disseminate the Full Staff Safety Responsibility Systemand Notice on Optimizing Shift Handover & Team Safety Proce-dures, screen educational videos on violation incidents, study the"Ten Don'ts" Safety Rules (covering prohibited positions/ac-tions/operations/behaviors), and conduct PPE usage standardiza-tion training, comprehensively strengthening employees' safetyaccountability and self-protection awareness.
Total investment in safety training: 173.7thousand yuanTotal safety training sessions: 10Total safety training participants: 1,200Total number of employees trained in safety: 400Total safety training hours: 4,500 hoursAverage safety training hours per employee: 7.8 hours
Key PerformanceKey PerformanceKey Performance
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To control occupational health and safety risks, the company continuously improves its risk management processes,thoroughly identi?es potential hazards, and implements targeted risk prevention measures to reduce or eliminate potentialimpacts from the source, ensuring employee safety.
The company organizes annual hazard inspection activities, covering all production stages. Key parts of production equip-ment, electrical circuits, and ?re-?ghting facilities are thoroughly inspected to ensure compliance with safety standards.Employee operational processes are strictly reviewed, and non-compliant behaviors are corrected to prevent accidentscaused by human error.During the reporting period, a total of 260 general potential hazards were identi?ed and corrected, achieving a 100%completion rate for recti?cations.
Risk Type
TimeRangeOf TheImpact
ValueChainSegmentsOf TheImpact
PotentialFinancial
ImpactRisk DescriptionMeasures
Occupational
HealthHazards
The company producescarbonyl iron powder, atomizedalloy powder, and othermaterials, generating signi?cantmetal dust during manufactur-ing. Prolonged employeeexposure to these airborneparticles may lead to pneumo-coniosis and other pulmonarydiseases.
Short,medium,
andlong termOperation
Operational
costincreases
Shortandmedium
term
Operation
Operational
costincreases
Production
Safety
Risks
Production involves handlinghazardous chemicals—includingsulfuric acid, hydrochloric acid,acetone, and potassiumpermanganate—which posehealth risks during loading,transportation, and usage ifproper protective measures areneglected.Factory equipment generateshigh-intensity noise duringoperation, potentially causinghearing damage with long-termexposure. Additionally, certainmachinery produces harmfulvibrations; chronic contact withhand-transmitted vibrations mayresult in occupational injuries.
The production process alsocarries risks of ?re, explosions,chemical leaks, equipmentfailures, and operational errors,any of which could triggeraccidents leading to casualtiesand property damage.
Strategy
Provide employees withprotective equipment;Conduct occupational diseasehazard detection andevaluation, continuouslyoptimize the work environ-ment;Conduct annual healthcheck-ups for all employeesand specialized occupationaldisease check-ups for speci?cpositions;Place safety risk bulletinboards, risk information signs,job risk information cards, andwarning signs at prominentlocations, hazardous areas,and key zones, indicatingmajor safety risks, potentialaccident hazards, conse-quences, control measures,responsible departments,emergency measures, andreporting methods;Establish a chemical manage-ment system to standardizeprocess management;Conduct occupationalhealth-related training to raiseemployees' awareness ofprotection.
Develop a safety productionemergency plan and conductemergency drills;Regularly conduct hazardinspections and make timelycorrections;Use equipment that meetssafety standards, andconduct regular equipmentinspections and maintenance;Conduct safety trainingperiodically to enhanceemployees' safety awareness.
Impact, Risk And Opportunity Management
Hazard Inspections
Risk Management ProcessRisk Identi?cation
Identify factors in the workplace that could affect employee health andsafety, including physical, chemical, and equipment failure risks.Risk Assessment
Conduct a comprehensive evaluation of identi?ed risks to determine theprobability of occurrence and the potential losses.
Risk Control
Based on the risk assessment results, develop corresponding risk controlmeasures, such as strengthening equipment maintenance, improvingemployee operation skills, and enhancing the work environment.
Opportunity
Type
TimeRangeOf TheImpact
ValueChainSegments
Of TheImpact
PotentialFinancial
Impact
TechnologyOpportunity
Develope and introduceautomated productionequipment to reduce on-siteoperations for employees,enhancing the safety andreliability of the productionprocess.
Long termOperation
Operational
costdecreases
Increase investment in safetyequipment and facilities,selecting advanced, reliable,and explosion-proof orleak-proof automatedequipment based on thecompany's productionprocesses and safety require-ments, ensuring that theequipment meets productionneeds while maximizingsafety.
Opportunity DescriptionMeasures
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Emergency Drills Conducted: 5Key PerformanceKey PerformanceKey Performance
Occupational Hazard Monitoring Testing Rate: 100%
Occupational Hazard Monitoring Compliance Rate: 100%Key PerformanceKey PerformanceKey Performance
CaseFire Emergency Drill
Indicators And Targets
Occupational Health And SafetyManagement Measures
The company strictly adheres to the "production safety accident emergency plan management measures" and "productionsafety accident emergency regulations," developing a comprehensive "production safety accident emergency plan." anemergency command team is established to strengthen emergency rescue team building and ensure the readiness ofemergency supplies. In the event of a safety production accident, the company ensures a rapid and effective response,with emergency measures being executed ef?ciently and orderly to minimize casualties and property damage.During the reporting period, the company regularly conducted emergency response drills to enhance personnel's ability tohandle emergencies. Drills were also used to test and optimize the preparedness of emergency supplies and the effective-ness of emergency procedures in real-life situations.
Emergency Plans And Drills
During the reporting period, the company entrusted a third-party organization to conduct occupational hazard detectionand assess the current status of occupational disease risks. Through an in-depth analysis of the distribution characteristics,development trends, and potential risks of occupational disease hazards, the company was able to provide scienti?cevidence for formulating targeted prevention and control measures, effectively enhancing the company's occupationalhealth management level.
Occupational Disease Hazard Detection
To strengthen the Company's safety production management, implement safety production responsibilities, and reinforcethe safety responsibility awareness of department heads, team leaders, and key employees, the Company has establishedsafety management goals based on the principle of hierarchical management and responsibility. Through a goal-orientedapproach, the Company effectively controls various types of casualties, prevents or reduces general safety incidents, andensures the smooth operation of production and business activities.
To ensure personnel safety, the company enhances workplace security by providing labor protection equipment and othermeasures, strengthening employees' safety awareness and self-protection capabilities, thereby establishing a solidfoundation for stable production and operations.
Achieved
Safety Control Goals
UnitIndicators2024
Number Of Deaths Due To
Work-related CausesInvestment In Safety ProductionProportion Of Safety ProductionInvestment To Revenue
Persons10k Rmb%
412.5
To enhance employees' safety awareness and emergency response capabilities, the company conducted a ?redrill during the reporting period, simulating critical scenarios including emergency evacuation and ?re suppression.The exercise strengthened staff understanding of ?re safety protocols, improved team coordination, and acceler-ated emergency response times, thereby reinforcing the foundation for safe production.
Qualitative Goals
No major or catastrophic safetyproduction accidents.No work-related fatalities or seriousinjuries; control light injuries.No incidents of ?re, explosion, oroccupational diseases.No hazardous chemical leaks or acutepoisoning accidents.No serious equipment damageaccidents.
Quantitative Goals
100% signing rate of safety productionresponsibility agreements for the year.100% rate of process supervision and on-sitesafety inspections.100% implementation rate of safety measuresin key risk areas.100% completion rate of safety improvementprojects for the year.Over 85% certi?cation rate for key regulatoryeducation and training.Over 90% recti?cation rate for daily safetyhazards.
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To promote employee well-being and overall team welfare, the company conducts regular health check-ups. Thesecomprehensive examinations include multiple professional tests, helping employees stay informed about their healthstatus, prevent potential illnesses, and ensure they can perform at their best.
The company has established the contractor safety management regulations, specifying requirements for contractorselection, pre-construction preparations, on-site safety control, and performance evaluations. All contractors must complywith the company's hse policies and implement designated control measures at worksites.Contractor Safety Management
Employee Health Examinations
In accordance with the regulations on the safety management of precursor chemicals and the purchase, sale and transportmanagement measures, the company has implemented the precursor chemicals safety management system to standard-ize controls across procurement, transportation, handling, storage, and disposal processes, ensuring the safety of chemi-cals and personnel.
Certi?ed Special Operations Personnel Certi?ed Workers:
32 Persons
Certi?ed Special Operations Personnel Total Required: 32PersonsCerti?ed Special Operations Personnel Coverage Rate:
100%Occupational Injury Insurance Coverage Rate:100%Investment Amount in Safety Production LiabilityInsurance: 92,568.00 ￥Number of Employees Covered by Safety ProductionLiability Insurance: 174 people
Chemical Safety Management
Precursor Chemicals ManagementProcurement
Precursor chemicals must be transported exclusively by licensed carriers, whomust present valid permits, complete mandatory traf?c authority ?lings, andequip vehicles with compliant safety markings.Precursor chemicals must be stored exclusively in dedicated warehouses ortank farms, with storage methods, procedures, and quantity limits strictlycomplying with national standards.A dedicated precursor chemicals registry shall be established, maintainingbound hardcopy logs for auditing purposes.
Purchases must be made exclusively from licensed suppliers, with procure-ment personnel required to obtain safety data sheets (sds) and hazard labelsfrom vendors and distribute these documents to user departments, storagefacilities, and ehs management units.Transportation And
HandlingStorageUsage
Store separately and dispose of according to relevant regulations.Disposal
Health Examinations On-site Spot
Employee Health Examinations Participants:
577 PersonsEmployee Health Examinations Coverage Rate: 100%Key PerformanceKey PerformanceKey Performance
Key PerformanceKey PerformanceKey Performance
Occupational Health And Safety Management MeasuresSpecial operations personnel must hold valid certi?cations.In accordance with the labor protection equipment management regulations, the company providesemployees with personal protective equipment (ppe) tailored to different job roles, working environ-ments, and conditions.Establish and maintain employee health monitoring records, preserving them for the requiredduration.Conduct occupational health training and organize employee health check-ups.Clearly communicate occupational hazard information, truthfully informing employees of potentialhazards and consequences in their work processes. For positions with severe occupational hazards,post warning signs and descriptions in prominent locations.Perform regular maintenance and inspections of occupational hazard protection facilities.
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The company has always regarded ful?lling social responsibility as an important mission, actively participating in variouspublic welfare activities. In the ?eld of education, the company focuses on long-term talent development by establishing ascholarship fund. In humanitarian rescue, the company donates to the red cross to support emergency rescue operations,?rst aid training, and other initiatives, demonstrating its commitment to social welfare with concrete actions and showcas-ing corporate responsibility.
Social Public Welfare Contributions
The Company actively responds to the Rural Revitalization Strategy and quickly participates in the "10,000 Enterprises Help10,000 Villages" initiative. By donating funds to Dongshan Village, the Company supports rural revitalization efforts, inject-ing momentum into rural development. This contribution helps achieve economic growth and improve living conditions,making steady progress on the path to rural revitalization.
Supporting Rural Revitalization
"10,000 Enterprises Help 10,000 Villages" Rural Revitalization Initiative
Investment in rural revitalization: ?111,700Key PerformanceKey PerformanceKey Performance
Charitable Donations
Donated AED de?brillators through tencent charity (employee donation activity).Directed donation to the yuling public welfare rescue fund through the red cross.Established the yue'an new materials scholarship fund through the red cross.Directed donation to the nan'an town education development promotion association through thedanyu county red cross.
Scholarship Fund DistributionAED De?brillators
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Forward Outlook
In the future, the metal powder industry will face various developments and challenges. The Company is committed to becominga leading metal powder materials supplier in the Asia-Paci?c region, and will practice the sustainable development strategy, adhereto innovation-driven enterprise transformation and development, accelerate the improvement of the enterprise's core competitive-ness and global in?uence, and work together with all stakeholders to jointly promote the sustainable development of the globaleconomy, society and environment, create a harmonious ecosystem and seek the well - being of mankind.In terms of the environment, with the increasingly strict environmental regulations, the Company will continue to increase invest-ment in environmental protection. On the one hand, through the introduction of advanced environmental protection equipment andtechnologies, the energy consumption, wastewater and waste gas emissions in the production process will be further reduced, andthe resource utilization ef?ciency will be improved. On the other hand, the recycling and recovery technologies will be activelyexplored and promote the industry to develop in a green and sustainable direction.In terms of the social responsibility, the Company will pay more attention to the protection of employees' rights and interests,provide more complete welfare and career development plans, strengthen staff training, and enhance employee satisfaction andloyalty. Meanwhile, they will actively participate in community construction and support public welfare undertakings such as edu-cation, humanitarian rescue and rural revitalization. In addition, in terms of supply chain management, closer cooperative relation-ships will be established with suppliers to promote the sustainable development of the supply chain, and suppliers will be encour-aged to adopt environmentally - friendly materials and processes.In terms of corporate governance, enterprises will establish and improve the sustainable development governance mechanism andimprove relevant policies and systems. Through the formulation of clear annual performance goals and indicators for ESG issuesand the tracking and evaluation of their completion, the effectiveness and level of ESG governance will be continuously improved.At the same time, risk management will be strengthened, a comprehensive risk management system will be established, and ESGassessment models will be introduced to identify and evaluate sustainable development risks and opportunities, so as to enhancethe strategic resilience of enterprises in the face of market ?uctuations and potential risks.Technological innovation will be the key driving force for the development of enterprises. With the development of materialsscience and production process, the application potential of new materials such as metal powders in the ?elds of electronics, mirco-wave absorption, metal injection molding and 3D Printing will be further released. Enterprises will increase R & D investment, coop-erate with universities and research institutions to develop products with higher performance and environmental protection levels,to meet the market demand for high - performance materials.
AppendixIndicator Index
Report Section
Global Reporting
Initiative.SustainabilityReportingStandards(GRI Standards)
China Enterprise
Reform andDevelopmentSociety. ChineseCorporateSustainableDevelopmentReport Guide(CASS-ESG 6.0).
Guidelines No.14 of ShanghaiStock Exchangefor Self-Regula-tion of ListedCompanies -SustainabilityReport (Trial).About This ReportMessage From The ChairmanHighlights Of Sustainability 2024
About Yuean
2-1/2-2/2-3/201-12-1/2-6/2-28
P1.1/P1.2P2.1A2P3.1-P3.3
Article 14///
Improve TheGovernanceSystem And
EnhanceDecision-
MakingEf?ciency
Sustainable Development
Governance
Strengthen Risk ControlOptimize InvestorRelations ServicesPractice Business
Ethics
2-9/2-12/2-132-14/2-17/2-22
2-29/3-1/3-2
3-3
G1.1.1-G1.1.3
G1.3.2
Article 51/Article 53
2-23/2-24/2-26
2-27/205-2
417-3
G2.1.1-G2.1.3G2.1.5-G2.1.7
G2.2.2
Article 54/Article 55
Article 56
2-27/207-2
Improving TheGovernance Structure
2-9/2-10//Board Of Directors,Supervisors And Senior'
RemunerationManagement
2-19/2-20/2-27
405-1
///////
Green AndLow-carbonLeadershipCreating A
BetterFutureTogether
Climate Change
Response
201-2/305-1305-2/305-4
305-7
E1.1.1-E1.1.4E1.1.7/E1.1.8E1.1.12/E1.1.16
Article 11/Article 14Article 18/Article 19Article 20/Article 22Article 24/Article 27
Environmental
Compliance
Management
2-27/306-1306-2/306-3306-4/306-5
E2.1.1-E2.1.3E2.1.5-E2.1.7E2.2.1/E2.2.3E2.2.5-E2.2.7E2.4.1-E2.4.4
Article 11/Article 14Article 18/Article 19Article 29/Article 30Article 31/Article 33Resource Ef?ciency
302-1/302-3/302-4303-1/303-2/303-3303-4/303-5
E3.1.1/E3.1.4E3.1.5/E3.2.1-E3.2.4E3.3.2/E3.3.4/E3.3.7
Article 34/Article 35Article 36/Article 37
Quality AsTheFoundationR&D Driving
NewHorizons
Innovation Leading
The Future
203-2
S2.1.1-S2.1.4/S2.1.6
S2.1.8-S2.1.10
S2.1.13
Article 11/Article 14Article 18/Article 19Article 41/Article 42Product Quality
Assurance
416-2/417-1S3.3.1/S3.3.6
Article 11/Article 14Article 18/Article 19
Article 47ResponsibleSupply Chain
308-1S3.1.1/S3.1.5
Article 11/Article 14Article 18/Article 19Article 44/Article 45
Empowering
Employee
Growth
AndCo-creating
SocialWell-being
Appendix
Data SecurityGovernance
2-27/418-1S3.4.1-S3.4.3Article 48
Employee Rights
Protection
2-7/2-20/2-232-27/2-30/201-3401
-1/401-2
405-1
S4.1.1/S4.1.3S4.1.4/S4.1.6S4.1.8/S4.1.9
S4.1.12
Article 49/Article 50Digital Construction/S2.1.14/
Occupational Health
And Safety
403-1/403-2403-3/403-4403-5/403-7
403-8
S4.2.1-S4.2.4S4.2.6/S4.2.8
Article 11/Article 14
Article 18/Article 19
Article 50Employee Career
Development
404-2S4.3.1-S4.3.6Article 50
Social Public Welfare
Contributions
/S1.2.1/S1.2.2Article 38/Article 40Supporting Rural
Revitalization
Indicator IndexForward Outlook
///
/A1A3
S1.1.2/S1.1.3Article 39
Article 57
Report Section
Global Report-
ing Initiative.Sustainability
ReportingStandards(GRI Standards)
China Enterprise
Reform andDevelopmentSociety. Chinese
Corporate
SustainableDevelopmentReport Guide(CASS-ESG 6.0).
Guidelines No.14 of ShanghaiStock Exchangefor Self-Regula-
tion of ListedCompanies -SustainabilityReport (Trial).
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Address：Xinhua Industrial Park, Dayu County,Ganzhou City, Jiangxi ProvinceTel：0797-8705008Company Website：http://www.yueanmetal.comEmail：stock@yueanmetal.com
JIANGXI YUEANADVANCED MATERIALS CO.,LTD.