Xiamen Tungsten Co., Ltd.
Xiamen Tungsten Co., Ltd.Add: ??-??/F,Bldg A,Tefang Center,No.??,Zhanhong Road,Xiamen,ChinaTel: +?? ??? ???????
2024Sustainability
Report
Xiamen Tungsten Co., Ltd.
Xiamen Tungsten Co., Ltd.
CONTENTS
Governance Structure and MechanismsShareholders' Rights and InterestsParty Building
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Sustainability-Related Governance
Reference GuidelinesReporting ScopeData ReportingExternal AssuranceReport AvailabilityExplanatory Note
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About This Report
???
Chairman'sStatement
Assessment andManagement ofMaterial Matters???
Communicationswith Stakeholders???
Our Business???About XTC
???
???? EconomicEnviromental andSocial Impact
??????? Honorand Awards
EnvironmentalClimate ResponseEnergy UsageUsage of Water ResourcesPollutant DischargeWaste DisposalEcosystem and Biodiversity ProtectionCircular Economy
????????????????????????
Risk ManagementInternal Control and ComplianceCommercial Behaviors
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Governance
Appendix
Data Overview
SASB Index
ESRS IndexISDS IndexGRI IndexIndependent Limited Assurance Report
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Guidelines No. ?? of Shanghai StockExchange for Self-Regulation ofListed Companies-SustainabilityReport (Trial) IndexIndicators Reference for ESG Reportsof Listed Chinese CentralState-Owned Enterprises IndexInnovation-driven developmentSuppliers and ClientsEmployees
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Social
Rural Revitalization andSocial Contributions
???
EnvironmentalCompliance Management
This is the ???? Sustainability Report ("this report") released by Xiamen Tungsten Co., Ltd. (hereinafter referred to as "XTC" or"We"). This report aims to inform stakeholders of the impact of sustainability risks and transition opportunities on corporatevalue, as well as the company's environmental and social impacts in ????. It also outlines the company's initiatives andachievements towards advancing the United Nations Sustainable Development Goals.
About This Report
Reference GuidelinesThis report is prepared in accordance with the Corporate Sustainability Disclosure Standards - General Requirements (Trial),jointly formulated by the Ministry of Finance of the People's Republic of China, the Ministry of Foreign A?airs, the NationalDevelopment and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Ecology andEnvironment, the Ministry of Commerce, the People's Bank of China, the State-owned Assets Supervision and AdministrationCommission of the State Council (SASAC), the National Financial Regulatory Administration, and the China Securities RegulatoryCommission. It also follows the Guidelines No. ? of Shanghai Stock Exchange for Self-Regulation of Listed Companies ?Standardized Operation, Guidelines No. ?? of Shanghai Stock Exchange for Self-Regulation of Listed Companies ? SustainabilityReport (Trial), and the Guide No.? for Self-Regulatory Supervision on Listed Companies of the SSE - Compilation of SustainableDevelopment Reports issued by the Shanghai Stock Exchange, the Sustainability Accounting Standards Board (SASB) Standards,the Reference of ESG Indicators System for ESG Reports of Listed Chinese Central State-Owned Enterprises issued by the SASACResearch Center, the European Sustainability Reporting Standards (ESRS) released by the European Commission, the two IFRSSustainability Disclosure Standards(ISDS) issued by the International Sustainability Standards Board (ISSB), and GlobalReporting Initiative Standards (GRI Standards). Additionally, this report incorporates disclosure requirements aligned with theUnited Nations Sustainable Development Goals (SDGs).Reporting Scope
The reporting period is between January ?, ????, and December ??, ????, and some parts of the report may be beyond theaforementioned scope. Unless otherwise speci?ed, the environmental data disclosed in this report covers our main manufactur-ing enterprises, and the economic and social data covers the enterprises within the scope of consolidation.Data ReportingThe ?nancial data in this report is extracted from Annual Report FY???? of XTC. The greenhouse gas emission data is obtainedfrom Greenhouse Gas Veri?cation Report issued by GUANGZHOU CEPREI CERTIFICATION BODY SERVICES CO.,LTD. andSGS-CSTC Standards Technical Services Co., Ltd. Other data is sourced from our internal systems or compiled manually.External Assurance
RSM China CPA LLP independently guarantees the environmental, social and corporate governance performance key indicatorsin this report, and the external assurance, working scope, methodology of work and conclusion of assurance are set out in theAppendix.
Report Availability
This report is released annually in electronic format, available in both Simpli?ed Chinese and English versions. In cases wherethere are discrepancies between the two versions, the Chinese version shall prevail. Electronic copies of the report can beviewed and downloaded from our o?cial website (www.cxtc.com) and the Shanghai Stock Exchange website (www.sse.com.cn).During the report preparation process, we have strived to take into account the interests and expectations of di?erent stakehold-ers and to keep the content concise, clear, and reader-friendly. Due to various practical constraints, this report may fall short ofexpectations. Feedback and suggestions are sincerely welcomed, and we remain committed to continuous improvement.
Explanatory Note
XTC, WeXTC Haicang BranchXiamen JialuMalipo Haiyu TungstenLuoyang YuluNinghua XingluokengDuchang JindingXiamen HongluXiamen Golden EgretHaicang Golden EgretXiamen PengluGolden Egret (Thailand)Jiujiang Golden EgretLuoyang Golden EgretGanzhou HongfeiFujian XinluGolden Dragon Rare-earthGANPOWERXWXN (Xiamen)XWXN (Sanming)XWXN (Ningde)XTC (Jinglu)XWXN (Yaan)XTC (Hydrogen)Chengdu Hongbo MolybdenumChengdu Hongbo IndustrialChengdu DingtaiTianjin SofToolBasic Electronic MaterialsBobai JudianRMAP
Xiamen Tungsten Co., Ltd.Xiamen Tungsten Co., Ltd. Haicang Branch
Xiamen Tungsten (H.C) Co., Ltd.Malipo Haiyu Tungsten (H.C) Co., Ltd.Luoyang Yulu Tungsten Mining Co., Ltd.Ninghua Xingluokeng Tungsten Mining Co., Ltd.Jiangxi Duchang Jinding Tungsten Co., Ltd.Xiamen Honglu Tungsten & Molybdenum Industry Co., Ltd.Xiamen Golden Egret Special Alloy Co., Ltd.Xiamen Golden Egret Cemented Carbides Co., Ltd.Xiamen Golden Egret Special Alloy (H.C.) Co., Ltd.Golden Egret Cemented Carbide (Thailand）Co.,Ltd.Jiujiang Golden Egret Hard Material Co., Ltd.Luoyang Golden Egret Geotools Co., Ltd.Ganzhou Hongfei Tungsten and Molybdenum Materials Co., Ltd.
Fujian Xinlu Tungsten Co., Ltd.Fujian Golden Dragon Rare-earth Co., Ltd.Ganzhou Highpower Technology Co., Ltd.XTC New Energy Materials (Xiamen) Co., Ltd.XTC New Energy Materials (Sanming) Co., Ltd.XTC New Energy Materials (Ningde) Co., Ltd.Xiamen XTC New Energy Materials (H.C) Ltd.XTC New Energy Materials (Yaan) Co., Ltd.XTC Hydrogen Energy Science and Technology (Xiamen) Ltd.
Chengdu Hongbo Molybdenum Co., Ltd.Chengdu Hongbo Industrial Co., Ltd.Chengdu Dingtai New Material Co., Ltd.
SofTool Manufacturing Co., Ltd.Fujian Basic Electronic Materials Co., Ltd.
Bobai Judian Mining Co., Ltd.Responsible Minerals Assurance Process
Full NameAbbreviation
LECDPQCD
L (Likelihood, the probability of an accident),E (Exposure, the frequency of exposure to a hazardous environment),C (Consequence, the potential consequences of an accident). Three factors are given di?erentscores. The sum of these three scores is then multiplied to D (Danger) to evaluate the level of risk
associated with working conditions.P (Productive), Q (Quality), C (Cost), D (Delivery), it is an important indicator for measuring
and evaluating manufacturing operations.
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Green as the Foundation: Drawing a New Blueprint for the Net-Zero Era
We actively respond to global climate initiatives and align with national strategic goals, embedding green principles throughout theentire lifecycle of our operations. We integrate green transformation into the pulse of industrial evolution and contribute to globaltemperature control targets. We are committed to achieving carbon peaking by ???? and net zero by ???? across our operations. To thisend, we are building a comprehensive and high-standard green manufacturing system and promoting new production models with greatpotential for replication. We take multi-dimensional measures such as energy structure optimization, process technology innovation, andvalue chain collaboration on emissions reduction to reduce carbon emissions both in our own operations and across the industrialecosystem. We focus on the development of recycling technologies for regenerated tungsten and high-value metals such as cobalt andnickel, aiming to improve resource e?ciency and contribute to the advancement of the circular economy.Responsibility as a Top Priority: Building a Sustainable Industrial Ecosystem
We ?rmly believe that responsibility is essential in the global era. Guided by strategic synergy, shared governance, and value co-creation,we integrate the concept of responsibility into the entire management process from raw materials to ?nal products. We strengthensystematic assessments of material compliance, environmental impacts, and social responsibilities, advancing supply chain manage-ment from simple compliance to collaborative responsibility. With a market-oriented mindset, we explore the value of our products andre?ne lean manufacturing to deliver superior quality, stable performance, and sustainable solutions to customers worldwide. Ourindependently developed products, such as high-strength tungsten wire for photovoltaic applications, titanium alloy cutting tools, andhigh-voltage mid-nickel battery materials, align precisely with industry needs and promote high-quality development in sectors such asphotovoltaics, precision manufacturing, and new energy.Co-Creation as a Bridge: Fostering a Shared Social Responsibility EcosystemWe embrace the philosophy of shared responsibility and mutual growth, linking the company's development closely with communityprogress. Together, we shape a harmonious vision for sustainable development. We are committed to building a responsibilityecosystem centered on co-created mechanisms, integrated resources, and shared outcomes. By maintaining long-term and stablepartnerships with communities, we listen to local voices and build enduring support systems in areas such as educational equity, publicwell-being, and cultural enrichment. Through collaborative e?orts, we strive to achieve mutual prosperity and shared bene?ts.
People as the Root: Unlocking the Inner Drive for Value CreationWe view talent as the most valuable resource for enterprise development and are dedicated to building a platform for talent aggregationand shared growth. We always place employee safety and well-being as a top priority, protecting the legitimate rights of every employeeand fostering a workplace that is fair, inclusive, and warm. We care deeply about each employee’s growth and development. Guided byvalue creation, we cultivate professional expertise through talent development systems, unleash potential through long-term incentivemechanisms, and gather collective wisdom through a diverse and inclusive culture. By linking personal development closely with thecompany's high-quality growth, we build a solid bridge for shared interests and mutual success, working hand in hand with everyemployee to create remarkable achievements.Governance as the Guiding Principle: Cultivating Enduring Momentum for SustainabilityWe de?ne the future of our enterprise through modern governance. In an increasingly complex and dynamic external environment, weare constructing a deeply integrated mechanism that connects sustainable development with strategic decision-making. We continue tooptimize our sustainability governance system, improve comprehensive risk management, and enhance the guiding force of oursustainability strategy. Supported by data-driven approaches, we integrate sustainability goals with business performance, makinggovernance capability the foundational engine for corporate development.With favorable winds propelling us on a long journey and great responsibilities urging us forward, XTC embarks once again with reneweddetermination. We remain steadfast in our mission of "making XTC a place for employees to realize personal value, a place for customersto ?nd solutions, a place for shareholders to invest in, and a place for society to bene?t from." Rooted in tradition yet embracingtransformation, we are committed to writing a new chapter of sustainable development. With the spirit of innovation to shape the futureand the posture of collaboration grounded in mutual trust, we will walk side by side with all our partners to build an open and inclusiveecosystem of sustainable value. In facing challenges with resolve and accumulating strength over the long term, we aim to contribute apowerful voice to the symphony of social progress and human well-being, ushering in a new era of sustainable development together.
Chairman's Statement
In ????, the world remains amidst unprecedented changes unseen in a century. As the global economy undergoes both recovery andtransformation, new opportunities are emerging. A profound interplay between scienti?c revolutions and industrial transformation isreshaping our times, while the shift toward green and low-carbon development has become a de?ning theme in the evolution of humancivilization. Against this backdrop of a rapidly changing world and complex global landscape, XTC, guided by the “Made in China ????”strategy, remains ?rmly focused on its core businesses. We are building strongholds of technological innovation and value creationacross three key sectors—tungsten and molybdenum, new energy materials, and rare earths. By driving innovation to reshape industrialvalue and championing green transformation to rede?ne the future of the industry, we are striving to establish ourselves as a globallycompetitive and in?uential leader in high-end manufacturing, charting a new paradigm for enterprise development in the new era.Innovation as the Backbone: Forging the Engine of High-Quality DevelopmentWe regard technological innovation as the primary driving force of corporate development. By building a complete innovation ecosystemthat covers fundamental research, applied development, and industrial transformation, we are cultivating deep and integratedcapabilities across research and industrial application. We actively promote the integration of product development with advancedglobal manufacturing systems. Relying on national-level research platforms, we have established systematic research and developmentcapabilities in areas such as cemented carbides, refractory metals, battery materials, optoelectronic crystalline materials, and rare earthpermanent magnet motor industry cluster, continually pushing technological boundaries. Through innovation, we reshape our corecompetitiveness and empower the global industrial chain to move to a higher level. Technological potential is transformed intoindustrial momentum, driving a profound technological transformation of the industry.
Chairman of XTC
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Our Business
We focus on three core businesses: tungsten and molybdenum, newenergy materials, and rare earth. Through continuously technologicaland managerial innovation, we have built a complete front-endtungsten mine selection, mid-end tungsten and molybdenum smeltingand production of tungsten and molybdenum powders, high-end deepprocessing applications such as hard alloys, tungsten and molybdenumwire and cutting tools, and recycling of the entire industry chain, withmany technologies leading internationally. We have established acomplete new energy material product line to support ?C consumerelectronics, new energy vehicles, and energy storage to create morepossibilities and provide advanced material solutions for achievingcarbon neutrality. We have established a collaborative system coveringthe entire rare earth industry chain. At the upstream, we strategicallyinvest in mining and smelting separation segments to ensure a stablesupply of raw materials. At the downstream, we have deepened ourinvolvement in high-value-added ?elds through majority-ownedsubsidiaries, covering the entire industry chain, including high-purityrare earth oxides, rare earth metal processing, phosphorescentmaterials, high-performance magnetic materials, and optoelectroniccrystals, thus creating a complete industry chain loop.
About XTC
Our Mission
We aim to make XTC a place for employee to realizepersonal value, a place for customer to ?nd solutions,a place for shareholder to invest in, and also a placefor society to bene?t from.
Our VisionTo build XTC into a platform for talent gathering, technol-ogy innovation, and industrial development.
Our Business PolicyPay attention to details, strive for progressive technolo-gy, advance steadily, endeavor to enhance the marktshare, and focus on long-term interests.
RecyclingAdvanced Materials
Ammonium Para-tungstate | APT
Tungsten powderMolybdenum powderHigh-purity rare earth oxides
Rare earth metalsLithium-ion cathode material precursor
Lithium-ion cathode material
NdFeB magnets
Deep Processing
Tungsten and molybdenum wire materialsHard alloyCutting toolsRock drilling engineering toolsMagnetic materials | Components
Product Applications
New energy vehiclesAerospaceGeneral machineryPhotovoltaic power generationIndustrial motors
Intelligent Mine
Tungsten concentrateMolybdenum concentrate | associatedRare earth ore | equity investment
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Business Distribution Map
Tungsten and MolybdenumRare EarthsNew EnergyOthers
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Jiangsu
Chengdu
QiannanKunmin
Wenshan
Yulin
Guangzhou
Shenzhen
Taiwan, ChinaSanmingGanzhouLongyan
Zhangzhou
Xiamen
Ningde
Yunnan
Guizhou
Sichuan
Hunan
Jiangxi
Fujian
GuangdongGuangxi
Henan
Ya'an
Changsha
Jiujiang
TianjinBaotou
Urumqi
Xinjiang
Inner Mongolia
Luoyang
Changzhou
Hong Kong, China
BrazilThailand
XiamenJapanKoreaGermanyFrance
XTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCGolden Dragon Rare-earth
Ninghua Xingluokeng
XWXNXWXNXWXNXiamen Golden Egret
Honors and AwardsAwards Recipients
???? EconomicEnvironmental and Social Impact
???? Honor and Awards
Economic Impact
Total asset
??,???.??million RMB
Operating revenue
??,???.??million RMBmillion RMBNet pro?t attributable toshareholders of the parent company?,???.??
Total environmentalprotection input
???.??
million RMB
GHG emissions
???,???.??tons of CO
? equivalent
GHG emission intensity
?,???.??
tons of CO
?
equivalent perhundred million RMB ofoperating revenue
Energy intensity
???.??
tons of coal equivalent perhundred million RMB ofoperating revenue
Environmental Impact
Water use intensity
?,???.??
cubic meters perhundred million RMB ofoperating revenue
Social Impact
Including:
Total tax payment:
?,???.??
million RMBEmployee compensation
?,???.??
million RMBDividends paid toshareholders ?,???.??
million RMBInterests paid to creditors ???.??
million RMBSocial donations ?.??
million RMB
Total social contributions?,???.??million RMB
Work safety input
???.?? million RMBNumber of employees
??,???
persons
Volunteer service hours
?,???. ??hours
Safety training attendees
??,???
attendeesWork-related fatalities
persons
Social contributionsper share?.??RMB
Research anddevelopment input
?,???.??million RMB
Member of the S&P Global Sustainability Yearbook (China Edition) ????
Recognized as "Industry Mover" by S&P GlobalRanked ???nd in the ???? Fortune China ???Selected as the "???? Fortune China Industry Ranking of Stars - Most Admired Companies"Selected as the "???? Best Practices in Sustainable Development for Listed Companies" by CAPCOSelected as the "???? Best Practices in Board of Directors for Public Companies" by CAPCOSelected as the "???? Best Practices in Board O?ce Operations for Public Companies" by CAPCOSelected as the "Best Practices in Investor Relations Management for Public Companies" by CAPCO
Selected in the ???? ?G Factory Directory by the Ministry of Industry and Information Technology
Ranked ???th in the "???? Top ??? China Manufacturing Enterprises" by China Enterprise
Confederation and China Enterprise Directors Association
Awarded the "Leading Manufacturing Enterprise in Fujian Province" by the FujianProvincial Department of Industry and Information TechnologyRanked ??th in the "???? Top ??? Fujian Manufacturing Enterprises" by the Fujian
Enterprises and Entrepreneurs ConfederationRanked ??nd in the "Top ??? Strategic Emerging Industry Enterprises in Fujian" by the
Fujian Enterprises and Entrepreneurs ConfederationRanked ???th in the "???? Global Top ??? New Energy Enterprises" jointly released bythe China Energy News and the China Institute of Energy EconomicsAwarded the "Manufacturing Single Champion Enterprise" by the Ministry of Industry and
Information TechnologyRanked ?th in the "Top ??? Strategic Emerging Industry Enterprises in Fujian" by the
Fujian Enterprise and Entrepreneurs ConfederationRanked ??th in the "Top ??? Strategic Emerging Industry Enterprises in Fujian" by the
Fujian Enterprise and Entrepreneurs Confederation
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Employees
Clients
Suppliers
Investors
Financial Institutions
Media Institutions
Local Communities
Employees ConsultationEmployee Training and ActivitiesEmployee ComplaintsEmployee Satisfaction SurveysCustomer Service and Complaint Management
On-site VisitsCustomer Satisfaction Surveys
Supplier ConferencesSupply Chain Management Platform
Supplier Training
On-site VisitsInformation Disclosure of Listed CompanyShareholders' Meetings / Earnings Conference Call and WebcastInvestor Hotline / Investor Interactive Platform
Investor Visits and ResearchRoadshow Event / Brokerage Strategy MeetingInformation Disclosure of Listed Company
Project CooperationL Information Disclosure of Listed Company
Media CommunicationsPublic Opinion MonitoringOn-site VisitsCooperation on Government ProjectMeeting and Training
On-site VisitsWelfare ActivitiesPublic Opinion MonitoringOnline Communications and On-site Visits
Community Grievance
Assistance Services
Occupational Health and SafetyEmployee Compensation and Bene?ts
Pollutant DischargeWaste DisposalSafety and Quality of Products and ServicesData Security and Customer Privacy Protection
Tax ComplianceSupply Chain SecuritySafety and Quality of Products and ServicesAnti-Commercial Bribery and Anti-CorruptionData Security and Customer Privacy Protection
Tax ComplianceRisk Control and ComplianceCommunications with StakeholdersInnovation-driven Development
Tax ComplianceSupply Chain SecurityRisk Control and ComplianceTax ComplianceAnti-Commercial Bribery and Anti-CorruptionInnovation-driven DevelopmentAnti-Commercial Bribery and Anti-Corruption
Energy UsagePollutant DischargeClimate ResponsePollutant DischargeCircular EconomyPromoting Industry DevelopmentCircular EconomyUsage of Water ResourcesPollutant DischargeInnovation-driven DevelopmentRural RevitalizationSocial ContributionsEcosystem and Biodiversity ProtectionCommunications with Stakeholders
Matters of ConcernCommunication ChannelsStakeholders
We uphold the mission of "making XTC a place for employee to realize personal value, a place for customer to ?ndsolutions, a place for shareholder to invest in, and also a place for society to bene?t from." We have established openand diversi?ed communication mechanisms with all stakeholders to gain deep insights into their concerns andexpectations, respond in a timely manner, and integrate these inputs into our sustainable development governance. Indoing so, we strive to achieve coordinated development and value co-creation with our stakeholders.
Communications with StakeholdersAssessment and Management of
Material MattersWe conducted double materiality assessments in alignment with the methodologies outlined in latest domestic andinternational disclosure standards, including the Corporate Sustainability Disclosure Standards - General Requirements(Trial), jointly formulated by the Ministry of Finance of the People's Republic of China, the Ministry of Foreign A?airs, theNational Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry ofEcology and Environment, the Ministry of Commerce, the People's Bank of China, the State-owned Assets Supervisionand Administration Commission of the State Council (SASAC), the National Financial Regulatory Administration, and theChina Securities Regulatory Commission. We also referred to the Guidelines No. ?? of Shanghai Stock Exchange forSelf-Regulation of Listed Companies ? Sustainability Report (Trial) and the Guide No.? for Self-Regulatory Supervisionon Listed Companies of the SSE - Compilation of Sustainable Development Reports issued by the Shanghai StockExchange, the European Sustainability Reporting Standards (ESRS) released by the European Commission, and the twoIFRS Sustainability Disclosure Standards(ISDS) issued by the International Sustainability Standards Board (ISSB).Following the double materiality assessment principle (?nancial materiality and impact materiality), we identi?edsustainability matters that have a material impact on our enterprise value and the stakeholders.We conducted an assessment of material matters from both ?nancial materiality and impact materiality perspectives. Interms of ?nancial materiality, we evaluated and analyzed the potential impact of each matter on the company'sbusiness development, ?nancial planning, and performance. Regarding impact materiality, we assessed and analyzedthe external economic, environmental, and social impacts from the company's performance on each matter. Weconsidered stakeholder research as a crucial part of the impact materiality assessment, gathered the impact materialityevaluations of ??? stakeholders on sustainability matters, and combined these ?ndings with the ?nancial materialityassessment results. Ultimately, we identi?ed ?? material matters.
◎ Double Materiality Assessment Process???? Double Materiality Assessment ProcessStep ? Understanding the Context andIdentifying Sustainability MattersThe company identi?ed ?? potential keymatters based on ?ve categories of factors andformed a sustainability matters list.
Step ? Impact and Financial MaterialityAssessmentThe company evaluated the impact material-ity and ?nancial materiality of each matterbased on two dimensions: severity of impactand likelihood of occurrence.
Step ? Consolidating Impact and FinancialMateriality Outcomes
Based on the results from Step ?, the companydeveloped the Materiality Matrix for ????
Step ? Reviewing the Outcomes forReporting and Practice Guidance
The company provides detailed disclosure onmaterial topics based on evaluation results,which are reviewed and con?rmed by theboard of directors.
Government andRegulatory BodiesNon-governmentalOrganizations
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Sustainability MattersDimension
Step ?:Understanding the Context and Identifying Sustainability Matters
We comprehensively considered the following ?ve classes of factorsto identify a list of sustainability matters relevant to our business.
?.Sustainability Disclosure Standards and GuidelinesWorldwideThe Corporate Sustainability Disclosure Standards ? GeneralRequirements (Trial), jointly formulated by the Ministry ofFinance of the People's Republic of China, the Ministry ofForeign A?airs, the National Development and ReformCommission, the Ministry of Industry and InformationTechnology, the Ministry of Ecology and Environment, theMinistry of Commerce, the People's Bank of China, theState-owned Assets Supervision and Administration Commis-sion of the State Council (SASAC), the National FinancialRegulatory Administration, and the China Securities RegulatoryCommission, the Guidelines No. ?? of Shanghai Stock Exchangefor Self-Regulation of Listed Companies ? Sustainability Report(Trial) and the Guide No.? for Self-Regulatory Supervision onListed Companies of the SSE ? Compilation of SustainableDevelopment Reports issued by the Shanghai Stock Exchange,the European Sustainability Reporting Standards (ESRS)released by the European Commission, and the two IFRSSustainability Disclosure Standards(ISDS) issued by theInternational Sustainability Standards Board (ISSB).
?. International Initiatives
The United Nations Sustainable Development Goals (SDGs), the??th Conference of the Parties of the UNFCCC (COP ??), the DueDiligence Guidance for Responsible Business Conduct ofOrganization for Economic Co-operation and Development(OECD), etc.?. Global Economic and Macro-Policy OutlookInternational: Global temperature control targets under the ParisAgreement, Science-Based Targets initiative (SBTi), EU CarbonBorder Adjustment Mechanism (CBAM), international tradetrends and policy changes, etc.Domestic: The Outline of the ??th Five-Year Plan for Economicand Social Development (?????????) and Long-RangeObjectives through the Year ???? of the People’s Republic ofChina, China's carbon peak and carbon neutrality targets,industry regulation policies, etc.
?. Global Market Trends
The market and consumer preferences are shifting towards greenand low-carbon products, with expansion and consumptiongrowth in industries such as new energy vehicles, aerospace, andgeneral machinery. Additionally, the international marketcontinues to raise the threshold requirements for corporatequali?cations, product quality, ESG performance, and other factors.
?. Corporate Strategic Plan and Development NeedsUnder the strategic development plan of product-serviceintegration, digital intelligence, environmental sustainability, andinternationalization, along with alignment to industry regulationsand policy requirements, e?orts should be made to enhanceresilience in risk response and drive sustainable development.
Rural RevitalizationSocial ContributionsInnovation-driven DevelopmentEthics of Science and TechnologyResponsible SourcingSupply Chain SecurityEqual Treatment to Smalland Medium-sized EnterprisesSafety and Quality of Productsand ServicesData Security andCustomer Privacy ProtectionPromoting Industry DevelopmentEqual EmploymentHuman Rights ProtectionEmployee CommunicationEmployee Development and TrainingEmployee Compensation and Bene?tsOccupational Health and Safety
Climate ResponsePollutant Discharge
Waste DisposalEcosystem and Biodiversity ProtectionEnvironmental ComplianceManagementEnergy UsageUsage of Water ResourcesCircular Economy
Due DiligenceCommunications with StakeholdersRisk Control and ComplianceAnti-Commercial Briberyand Anti-CorruptionAnti-unfair Competition
Tax Compliance
Environmental
Social
Governance
Sustainability Matters List
Step ?-?: Impact Materiality AssessmentWe assessed the impact materiality of each sustainability matter based on two dimensions: the severity of impact andthe likelihood of occurrence.
Impact Materiality: MediumImpact Materiality: High
Supply Chain SecurityClimate ResponseResponsible SourcingInnovation-driven DevelopmentRisk Control and CompliancePollutant DischargeEnergy UsageWaste DisposalEnvironmental Compliance ManagementPromoting Industry DevelopmentHuman Rights ProtectionEqual EmploymentEcosystem and Biodiversity ProtectionEmployee Development and TrainingEmployee Compensation and Bene?tsEmployee CommunicationCircular Economy
Safety and Quality of Productsand ServicesDue DiligenceSocial ContributionsOccupational Health and SafetyData Security and CustomerPrivacy ProtectionAnti-Commercial Briberyand Anti-CorruptionUsage of Water ResourcesCommunications with Stakeholders
Equal Treatment to Smalland Medium-sized Enterprises
Rural Revitalization
Anti-unfair Competition
Impact Materiality: Low
Tax ComplianceEthics of Scienceand Technology
Sustainability Matters
Criteria ?: Severity of Impact
We conducted a preliminary assessment of the impact of theidenti?ed sustainability matters on the economy, environment,and society through a questionnaire survey, with ??? validresponses collected. Based on the survey results, we quanti?edthe impact of each matter using qualitative ratings (?-? scale)through statistical methods such as weighted averages andvariance analysis. By combining the weight distribution, wecalculated the comprehensive impact score to determine theseverity of impact of each sustainability matter.
Criteria ?: Likelihood of Occurrence
We assessed the likelihood of the occurrence of impacts relatedto each matter based on the frequency of similar past events andrelevant experience, and quanti?ed and classi?ed theseprobabilities to determine the likelihood of occurrence ofimpacts for each sustainability matter.
Low MediumHigh
Impact Materiality Assessment Outcomes
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Step ?-?: Financial Materiality Assessment
We assessed the ?nancial materiality of each sustainability matter based on two criteria: the potential magnitude andthe likelihood of occurrence.
Criteria ?: Potential Magnitude
We assessed the magnitude of which the opportunities and risks associated with each sustainability matter may havedirect and indirect, positive and negative impacts on the company's ?nancial planning and performance during thereporting period and the foreseeable future.
Criteria ?: Likelihood of Occurrence
The likelihood of ?nancial e?ects on the company from the opportunities and risks associated with each sustainabilitymatter in the short, medium, and long-term.
Reference Indicators
Taking into account costs and revenues, and assessing the impact on pro?tsCostsPro?ts
Financial Materiality：MediumFinancial Materiality：High
Climate ResponseInnovation-driven Development
Pollutant DischargeEnvironmental ComplianceManagement
Circular Economy
Safety and Quality ofProducts and ServicesRisk Control and ComplianceWaste DisposalEcosystem and Biodiversity Protection
Energy UsageSupply Chain SecurityAnti-Commercial Bribery
and Anti-CorruptionUsage of Water Resources
Responsible Sourcing
Social ContributionsEqual Treatment to Smalland Medium-sized EnterprisesPromoting Industry DevelopmentOccupational Health and Safety
Due DiligenceData Security andCustomer Privacy ProtectionCommunications with StakeholdersHuman Rights ProtectionEmployee Development and Training
Anti-unfair Competition
Rural RevitalizationEmployee Compensation and Bene?ts
Financial Materiality：Low
Equal EmploymentEmployee CommunicationTax ComplianceEthics of Scienceand Technology
Sustainability Matters
Financial Materiality Assessment Outcomes
[?][?][?]
Step ?: Consolidating Impact and Financial Materiality OutcomesWe conducted a comprehensive analysis and prioritization of sustainability matters based on the results of both theimpact materiality and ?nancial materiality assessments. The ?nal materiality ranking of each matter is determined,and the results are visually presented in a materiality matrix. Based on the double materiality assessment, we identi?ed?? sustainability matters with high impact and ?nancial materiality.
LowTax Compliance??
High
Ecosystem and Biodiversity Protection?
Climate Response?
Energy Usage?
Responsible Sourcing??
Environmental Compliance Management?
Waste Disposal?
Circular Economy?
Safety and Quality of Products and Services??
Pollutant Discharge?
Supply Chain Security??
Risk Control and Compliance??
Innovation-Driven Development??
Promoting Industry Development??
Medium
Equal Treatment to SMEs??
Employee Communication??
Human Rights Protection??
Occupational Health and Safety??
Usage of Water Resources?
Anti-unfair Competition??
Due Diligence??
Equal Employment??
Social Contributions??
Rural Revitalization?
Employee Compensation and Bene?ts??
Anti-Commercial Bribery and Anti-Corruption??
Communications with Stakeholders??
Employee Development and Training??
Data Security and Customer Privacy Protection??
Ethics of Science and Technology??
Impact and
FinancialMateriality
Sustainability Matters
EnvironmentalSocialGovernance
Impact Materiality
Financial Materiality
???? Materiality Matrix
Considering factors such as market price of resources, trend forecasts,
and the company's historical costs
[ ? ] Low Financial Materiality：Refers to matters that may have a certain ?nancial impact in the short, medium, and long term, but theoverall impact is relatively minor.[ ? ] Medium Financial Materiality: Refers to matters that have a ?nancial impact in the short term and may exert further in?uence in themedium to long term, but the overall impact is relatively minor.[ ? ] High Financial Materiality: Refers to matters that have a considerable ?nancial impact in the short term and are highly likely to causematerial ?nancial impacts in the medium to long term.
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Market Opportunity: Developing certi?ed green and low-carbonproducts to meet downstream market demand for environmentallyfriendly goods can attract more eco-conscious consumers andexpand market share. By continuously reducing carbon emissionsand strengthening carbon asset management, the company may alsoseize opportunities to generate additional revenue through carbontrading markets.Technological Opportunity: By staying attuned to innovation trends ineco-friendly technologies, the company can build technologicalbarriers in areas such as green and low-carbon technology andresource recycling, thereby enhancing its competitiveness.Financial Opportunity: The development of green and low-carbonprojects can provide the company with greater access to green?nancing and government grants or subsidies, reducing capital costsand easing cash ?ow pressure.Reputational Opportunity: By implementing carbon reductioninitiatives and promoting emission reductions throughout the valuechain, the company can establish a green corporate image andenhance its brand's environmental value.
ClimateResponse
Market Risk: A global shift toward green consump-tion preferences may negatively impact our marketshare and business revenue if our products fail tomeet low-carbon and environmentally friendlymarket demands.Technology Risk: Failure to keep pace withtechnological developments in the industry and tomaster green and low-carbon technologies mayresult in low production e?ciency, increased costs,and a loss of market competitiveness.Policy Risk: Increasingly stringent climate-relatedregulations and compliance requirements, bothdomestically and internationally, may lead to highercarbon compliance costs.Operational Risk: Extreme weather events maydamage our buildings, equipment, and facilities,resulting in asset depreciation and increasedoperating costs.Reputational Risk: Failure to meet greenhouse gasreduction commitments and targets may reducestakeholder trust and public recognition, adverselya?ecting our brand image and reputation.
Short-termMid-termLong-term
Climate Response
■■■■■■■■■
EmployeesClientsSuppliersInvestorsFinancialInstitutionsMedia InstitutionsGovernment andRegulatory BodiesNon-governmentalOrganizationsLocal Communities
Step ?: Reviewing the Outcomes for Reporting and Practice Guidance
Guided by these results, we aim to enhance sustainability reporting and management practices, with detailed managementmeasures and speci?c actions for the material matters provided in the relevant sections of this report.
Market Opportunity: Technological upgrades and iterations willenhance product quality and production e?ciency, reduce energyconsumption and emissions, and meet the growing customerdemand for green, safe, and high-quality products. This willstrengthen market competitiveness and expand the company'spresence in the high-end market.Technological Opportunity: Breakthroughs in innovation and strategicdeployment in frontier technologies can help the company seizeemerging technological ground, build strong technical barriers, andenhance its technological advantage.Financial Opportunity: Technological innovation can improveproduction e?ciency and reduce energy consumption, therebylowering production costs.Policy Opportunity: R&D projects or enterprises that align with policyrequirements may receive ?nancial incentives and subsidies, helpingto ease funding pressure for innovation and providing sustainablesupport for ongoing R&D activities.
Innovation-
drivenDevelopment
Market Risk: Rapid technological advancements inthe industry may diminish the competitiveness ofour products if our R&D e?orts cannot keep up withmarket trends and industrial policy directions, or ifour technological outcomes fail to translate intocompetitive advantages.Technology Risk: Leakage of core technologies orloss of key technical personnel may weaken ourtechnological edge; failure to register and secureintellectual property rights in time may lead to IPdisputes.Financial Risk: Increased R&D e?orts require more?nancial and human resources, which may raiseboth costs. Given the high investment and longcycle of R&D activities, misjudgment in technicaldirection or failed R&D projects may result inwasted resources and signi?cant sunk costs.
Innovation-driven
DevelopmentShort-termMid-termLong-termEmployeesClientsSuppliersInvestorsNon-governmentalOrganizations
Market Opportunities: E?ective risk management helps the companymake informed decisions, address various risk factors, better adapt toa complex and dynamic external environment, and maintain marketcompetitiveness. It also strengthens the con?dence and recognitionof business partners, creating more business opportunities.Operational Opportunities: Establishing a comprehensive ande?ective risk management system can enhance the company'sresilience to risks, reduce the impact of unexpected risks, andimprove business stability.
Supply Chain
Security
ResponsibleSourcing
Market Risk: Failure to e?ectively assess andsupervise suppliers or to meet client expectationsregarding supply chain standards may result in theloss of market opportunities. Negative publicityrelated to suppliers’ performance in areas such asenvironmental protection, safety, human rights,quality, or business ethics may be transmittedthrough the supply chain and cause a trust crisisregarding the company's products.Operational Risk: The raw materials required for thecompany's products may face supply disruptionsdue to geopolitical risks, resource depletion, orenvironmental policies, thereby a?ectingproduction.Financial Risk: Resource shortages or signi?cant?uctuations in raw material prices may increaseprocurement costs, impacting the company'spro?tability and operational performance.
Short-termMid-termLong-term
Supply Chain
Security andResilience■■■
ClientsSuppliersInvestors
OpportunitiesRisksA?ectedStakeholders
TimeDuration
CorrespondingSDGs
Locationinthe ReportMaterialMatter
Scope of ImpactValueChainUpstream
Operations
Comm-unitiesValueChainDowns-tream
[4]
[ ? ] The impact duration is categorized into short-term, medium-term, and long-term. Short-term refers to within one year (inclusive) after theend of the sustainability information reporting period. Medium-term refers to one to ?ve years (inclusive) after the end of the sustainabilityinformation reporting period. Long-term refers to more than ?ve years after the end of the sustainability information reporting period.
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Market Opportunities: E?ective risk management helps the companymake informed decisions, address various risk factors, better adapt toa complex and dynamic external environment, and maintain marketcompetitiveness. It also strengthens the con?dence and recognitionof business partners, creating more business opportunities.Operational Opportunities: Establishing a comprehensive ande?ective risk management system can enhance the company'sresilience to risks, reduce the impact of unexpected risks, andimprove business stability.Risk ControlandCompliance
Operational Risk: If the company fails to prioritizeand strengthen risk management, it may lead tomanagement failures or disruptions in key businessoperations, a?ecting operational stability andresulting in a loss of market competitiveness.Financial Risk: The occurrence of risk events maycause signi?cant ?nancial losses, including theneed to pay large ?nes or compensation. It may alsolead to decreased trust from ?nancial institutions,tighter credit policies, reduced ?nancing capacity,and increased ?nancing costs.Reputational Risk: Violations of business ethics orlegal and regulatory breaches may negativelyimpact the company's reputation.
Short-termMid-termLong-term
Risk ManagementInternal Controland ComplianceClientsSuppliersInvestorsFinancialInstitutionsGovernment andRegulatory Bodies
Market Opportunities: Increasing the use of clean energy, optimizingthe energy structure, and continuously reducing operational carbonemissions and product carbon footprints can attract more market andcustomer interest, maintaining a competitive advantage.Financial Opportunities: Reducing the reliance on fossil energy forproduction activities can help avoid additional costs caused by theinstability or price ?uctuations of traditional energy supply chains. Inthe long term, this can save energy costs and reduce sensitivity tochanges in carbon emission costs.
Energy Usage
Market Risks: International markets and customers areincreasing their demands on supply chain companiesregarding clean energy use, energy conservation, andemission reduction. If the company fails to graduallyoptimize its energy structure, it may face barriers tomarket entry and lose business opportunities.Operational Risks: Adjustments in the energy structuremay lead to instability in the energy supply chain and?uctuations in energy prices, which could impact thecompany's production activities.Financial Risks: The elimination or replacement oftraditional energy sources or high-energy-consumingequipment may result in asset depreciation. Thepurchase of low-emission energy or the construction ofphotovoltaic facilities may increase the company'soperational costs in the short to medium term, leadingto cash ?ow pressure.
Short-termMid-termLong-term
Energy UsageClientsSuppliers
Brand Opportunities: A robust environmental management systemthat balances ecological bene?ts with economic bene?ts helpsenhance the company's green brand value. This attracts moreattention from capital markets during the global green andlow-carbon transition, boosting market in?uence.EnvironmentalComplianceManagement
Compliance Risk: Failure to disclose environmentalinformation as required or involvement inenvironmental violations may result in regulatorypenalties and damage to the company's creditwor-thiness.Financial Risk: Strengthening environmentalmanagement, taking remedial actions, andconducting environmental training will increase thecompany's ?nancial and human resource costs.Environmental violations may result in ?nes andother economic losses.Reputational Risk: If the company's operationsdamage the surrounding environment or adverselya?ect local communities, or if environmentalviolations occur, it may trigger negative evaluationsfrom customers, investors, and local residents,harming the company's reputation.
Short-termMid-termLong-term
Environmental
Compliance
Management
■■■■■■■■
EmployeesClientsSuppliersInvestorsFinancial InstitutionsGovernment andRegulatory BodiesNon-governmentalOrganizationsLocal Communities
Brand Opportunity: Strictly controlling pollutant emissions andwaste disposal, and minimizing the negative environmental impactof production activities, can enhance public recognition of thecompany's value.PollutantDischarge
WasteDisposal
Compliance Risks: Policies, regulations, andregulatory requirements related to pollutantemissions and waste disposal are becoming stricter.Failure to meet emission standards may result inpenalties from regulatory authorities, leading to?nancial losses and damage to the company'sreputation.Financial Risks: Introducing advanced equipment orupgrading technological processes to reducepollutant emissions and waste generation willincrease the company's operating costs.
Short-termMid-termLong-term
Pollutant Discharge
Waste Disposal
■■■■
EmployeesClientsGovernment andRegulatory BodiesLocal Communities
[ ? ] The impact duration is categorized into short-term, medium-term, and long-term. Short-term refers to within one year (inclusive) after theend of the sustainability information reporting period. Medium-term refers to one to ?ve years (inclusive) after the end of the sustainabilityinformation reporting period. Long-term refers to more than ?ve years after the end of the sustainability information reporting period.
OpportunitiesRisksA?ectedStakeholders
TimeDuration
Corresponding
SDGs
Locationinthe ReportMaterialMatter
Scope of ImpactValueChainUpstream
Operations
Comm-unitiesValueChainDowns-tream
[?]
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Market opportunity: Promoting deep collaboration with upstreamand downstream enterprises in the value chain in areas such as greentransition and value co-creation helps maintain long-term, friendly,and stable partnerships, bringing more business opportunities.Technology opportunity: Actively participating in industry technologycooperation and exchanges allows the company to stay aligned withindustry development trends, support breakthroughs in coretechnologies, and build patent barriers, thereby gaining a ?rst-moveradvantage in market access; participation in national and industrystandard setting can transform the company’s technologicalstrengths into industry entry thresholds, enhancing its in?uencewithin the value chain.Brand opportunity: Proactively engaging in industry exchanges andinnovation collaborations, and contributing to industry developmentwith proprietary technologies, can enhance the company’sreputation, in?uence, and appeal.
Promoting
IndustryDevelopment
Market risk: Failure to actively engage in industryexchanges and development may reduce thecompany's in?uence within the industry, leading tothe loss of cooperation opportunities.Technology risk: As industry technology evolvesrapidly, lack of active participation in industryexchanges and innovation collaborations mayhinder the company's R&D breakthroughs, resultingin a loss of competitive advantage in the market.
Mid-termLong-term
PromotingIndustryDevelopmentClientsSuppliersGovernment andRegulatory BodiesNon-governmentalOrganizations
Policy opportunity: By engaging in ecological restoration andbiodiversity protection projects, the company may be prioritized foraccess to green ?nancing and government subsidies, therebyreducing the ?nancial cost of environmental protection investments.Branding opportunity: Developing an eco-friendly growth model canhelp establish a responsible corporate image, enhance recognitionfrom local communities and other stakeholders, and increase thecompany’s green brand value.EcosystemandBiodiversityProtection
Compliance risk: Mineral extraction may disturbsurface vegetation, destroy wildlife habitats, orpollute soil and water bodies, which could triggerenvironmental restoration obligations and exposethe company to regulatory penalties and legalactions. Increasingly stringent biodiversityprotection regulations may limit the scope of minedevelopment or raise the cost of ecologicalrestoration.Reputational risk: With growing public attention onenvironmental protection, environmental damageor negative impacts on ecosystems caused byproduction activities may harm the company'sbrand image.
Mid-termLong-term
Ecosystem
andBiodiversityProtection
■■■
Government andRegulatory BodiesNon-governmentalOrganizationsLocal Communities
Market opportunity: High-quality products and services can attractmore customers, strengthen competitive advantages, and enhancethe competitiveness and in?uence of products and services.Brand opportunity: This can generate positive word-of-mouth,increase customer satisfaction and trust, and enhance the company'sbrand image.Safety andQuality ofProducts and
Services
Market risk: If safety incidents or quality issues arisefrom products, they may lead to customercomplaints, returns, or recalls, potentially resultingin customer loss and negatively impacting thecompany's business performance.Financial risk: Product testing and qualitymanagement require corresponding ?nancialinvestment, increasing operational costs. Safety orquality issues may also expose the company toadministrative penalties, legal actions, andcompensation claims, thereby raising ?nancialcosts.Reputational risk: Public exposure of product safetyor quality incidents could trigger a crisis of trustamong customers and the public, damaging thecompany's brand value and reducing brand loyalty.
Short-termMid-termLong-term
Safety andQuality ofProducts andServices■■
ClientsSuppliers
[ ? ] The impact duration is categorized into short-term, medium-term, and long-term. Short-term refers to within one year (inclusive) after theend of the sustainability information reporting period. Medium-term refers to one to ?ve years (inclusive) after the end of the sustainabilityinformation reporting period. Long-term refers to more than ?ve years after the end of the sustainability information reporting period.
OpportunitiesRisksA?ectedStakeholders
TimeDuration
CorrespondingSDGs
Locationinthe ReportMaterial
Matter
Scope of ImpactValueChainUpstream
Operations
Comm-unitiesValueChainDowns-tream
[4]
Technical opportunity: The development trend of the circulareconomy will drive the company to achieve technologicalbreakthroughs in the ?eld of resource recycling, helping to buildtechnical advantages.Financial opportunity: Resource recycling can reduce ?nancial costsrelated to raw material procurement and waste disposal, therebyenhancing the company’s pro?tability. It also lowers dependency onexternal resources and mitigates risks associated with raw materialprice ?uctuations.Branding opportunity: Expanding e?orts in resource recycling canreduce the potential negative environmental impact of productionwaste, generating a positive in?uence on the company’s brandreputation.
CircularEconomy
Technical risk: The continuous rise in requirementsfor resource recovery rates and cleaner productionprocesses under the circular economy may posechallenges. If the company's resource recyclingtechnologies lag behind industry advancements, itmay weaken cost advantages and result in loss ofmarket share.Financial risk: Investments in resource recyclingtechnologies may increase the company'sshort-term ?nancial burden.Policy risk: Stricter policies related to the use ofrecycled materials and battery recycling may raisethe company's compliance costs.
Short-termMid-termLong-term
CircularEconomy
ClientsSuppliersInvestorsFinancialInstitutionsGovernment andRegulatory BodiesNon-governmentalOrganizationsLocal Communities
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Sustainability-RelatedGovernance
Governance Structure and MechanismsShareholders' Rights and InterestsParty Building
We have established our corporate mission as "making XTC a place for employee to realize personal value, a place forcustomer to ?nd solutions, a place for shareholder to invest in, and also a place for society to bene?t from," de?ning ourlong-term responsibilities and goals across three dimensions of environmental protection, social responsibility, andcorporate governance. As a responsible corporate citizen, we adopt the United Nations' ?? Sustainable DevelopmentGoals (SDGs) outlined in the ???? Agenda for Sustainable Development as our action guide, focusing on key areasincluding climate change mitigation, industrial and technological innovation, responsible production and consumption,and promoting decent work and economic growth. We regularly evaluate and update our ESG management objectivesto adapt to evolving external environments and stakeholder expectations.
Governance Structure and Mechanisms
Under the backdrop of escalating global resource constraints, mounting climate change challenges, and ever-increasingstakeholder expectations, the industry in which we operate is confronting unprecedented pressures and opportunitiesfor transformation. We fully recognize the pivotal role of sustainable development in generating long-term corporatevalue. We are resolutely committed to embedding sustainability principles into every facet of corporate governanceframeworks and business decision-making processes. Through the establishment of a systematic, institutionalized, andstandardized sustainable development management system, ESG (Environmental, Social, and Governance) consider-ations are rigorously integrated across the entire spectrum of strategic planning, risk management, operationalexecution, and performance evaluation. This comprehensive integration establishes a solid foundation for optimizingsynergistic value creation across economic, environmental, and social domains.
To ensure e?ective achievement of our corporate strategies and ESG management objectives, we have established atop-down ESG governance architecture and accountability system with clearly de?ned responsibilities:
At the highest governance level
All subsidiary companies are accountable forexecuting sustainability policies and ESG operationalpractices. To strengthen the integration of sustainabili-ty into business operations, subsidiary companiesdevelop tailored implementation plans within theoverarching strategic and policy frameworks set byheadquarters, aligning with their unique operationalcharacteristics. We integrate sustainability objectivesinto our performance evaluation system, coveringareas such as carbon reduction, resource e?ciency,safety performance, and employee development. Byestablishing this governance model that combinestop-down directives with bottom-up engagement, weensure sustainability principles permeate everyoperational facet, making them a shared responsibilityamong all employees.
At the operational implementation level
We have established an ESG Leadership Group,composed of senior executives, responsible for ESGstrategy implementation, target decomposition, anddaily management.
At the strategic leadership level
We operate an ESG O?ce and ESG Task Force, whichcoordinate ESG-related e?orts across departmentsand subsidiary companies, provide professionalguidance and support, and execute routinemanagement tasks for ESG initiatives.
At the managerial execution level
Our Board of Directors assumes ultimate responsibilityfor sustainable development strategies andperformance. The Board has established a Strategyand Sustainable Development Committee, which isresponsible for guiding and overseeing our ESG-relat-ed matters. The committee convens regular meetingsto review major sustainable development issues. Toensure governance e?ectiveness, we continuouslyoptimize our monitoring and evaluation mechanisms,including internal audits, external third-partyveri?cation, and periodic performance assessments.The Board's Strategy and Sustainable DevelopmentCommittee conducts annual supervision andevaluation of our strategies, ESG managementobjectives, and processes to ensure their adaptabilityand e?ectiveness, thereby systematically enhancingthe outcomes of our sustainable developmentmanagement.
Composition
Audit CommitteeStrategy and SustainableDevelopment CommitteeNomination and Remuneration
Committee
ResponsibilitiesDesignatedBodyBoard ofDirectors
ESG Leader-ship Group
Relevant Functional Departmentsof Subsidiaries and A?liatedEnterprises
Implement ESG goals, strategies, and policies, and carrying outrelated workSubsidiariesand A?liated Enterprises
ESG O?ce
ESGTask Force
Strategic Development CenterOperational Management Center
Board Secretary O?ceHuman Resources Management Center
Financial Management CenterDiscipline Inspection O?ce
O?ceLegal A?airs DepartmentAudit DepartmentESG Strategy and InvestmentEnvironmental(Carbon Peaking andCarbon Neutrality, Energy, Environmental Management)
SocialGovernance
The ESG Governance Structure
Operational Implementation Level
Managerial Execution Level
Strategic Leadership Level
Board of Directors
Subsidiaries andA?liated EnterprisesESG Task Force
ESG O?ceESG Leadership Group
Board of Directors
Strategy and SustainableDevelopment CommitteeAudit Committee
Nomination and Remuneration
Committee
Chairman(Leader of the Group)
CEOExecutive Vice PresidentAdministrative Vice President
Finance Vice PresidentSecretary of the Discipline Inspection
CommissionBoard SecretaryGeneral Manager of Mining Business
UnitPresident Assistant
Review and establish ESG goals and strategies based on signi?cantESG matters and risks, formulate annual work tasksReview ESG-related policies and matters, and report to the Strategyand Sustainable Development CommitteeListen to and review the ESG work plans and outcome reports of ESGworking group, and subsidiaries and a?liated enterprises
Collaborate with subsidiaries and a?liated enterprises to jointlyformulate, promote, and implement ESG goals, strategies, andpolicies, regularly monitor and report on the execution of relatedtasksManage daily ESG information and collect annual ESG information,assisting in compiling ESG reports
Research and propose recommendations on ESG strategy,material matters, and ESG related mattersMonitor and inspect the implementation and improvementof ESG workReview ESG-related reports
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We uphold the integration of sustainable development principles into our corporate operations, strictly comply withlaws and regulations in all jurisdictions where we operate, and continuously re?ne our policies on sustainability issuemanagement in alignment with business development needs. We declare our commitment to becoming a modelenterprise in ethical practices, fostering mutually bene?cial and trust-based relationships with stakeholders includingshareholders, employees, business partners, and indigenous communities in our operating regions. All consolidatedentities and employees under our governance are required to adhere to the following globally applicable codes ofconduct as de?ned in our Sustainability Policies.
The Sustainability Policies
According to the "Articles of Association" and the "Working Rules of Nomination and Remuneration Committee," theBoard's Nomination and Remuneration Committee is responsible for carrying out the proposal and appointmentprocedures for company directors and senior management personnel. The Committee evaluates candidates againstmultidimensional criteria including independence, diversity, and professional competence (e.g., gender, educationalbackground, expertise, career experience, and external a?liations) to compile a preliminary list of director and seniormanagement candidates, conducts quali?cation reviews based on the mandatory requirements for directors andsenior management roles, and submits formal recommendations to the Board of Directors. Director candidatesapproved by the Board are presented as proposals to the Shareholders' General Meeting for voting, with newlyappointed directors formally elected upon shareholder resolution, while senior management candidates approvedby the Board are appointed through corresponding resolutions.
Diversity and ProfessionalismWe are committed to building a Board of Directors and senior management team with diverse perspectives inexpertise, gender, age, and cultural backgrounds to address the complexities of the global business environment andgrowing sustainability challenges.In terms of Board composition, we prioritize diversity as a critical factor in director nomination and selection. OurBoard currently comprises ? directors, including ? independent directors and ? external directors. Professionally,Board members possess multidisciplinary expertise in materials science and deep processing, engineering manage-ment, ?nancial management, risk control, human resource management, economics, accounting, law, and compli-ance management, forming a complementary skill matrix to enhance the Board's oversight and understanding ofsustainability issues. Within the Board committees—the Strategy and Sustainable Development Committee, AuditCommittee, and Nomination and Remuneration Committee—independent directors constitute over ??% of member-ship, with all committee chairs held by independent directors. Through rigorous adherence to regulatory require-ments and internal governance policies, our independent directors leverage their professional strengths to provideexpert guidance, conduct supervisory reviews, and ensure scienti?cally informed Board decision-making, therebysafeguarding the interests of shareholders and the company through standardized governance and orderly opera-tions.Our senior management team consists of ? executives, with women representing ??% of the cohort. The teampossesses extensive industry experience and demonstrates diversi?ed competencies in strategic planning, operation-al management, technological innovation, ?nancial management, and risk mitigation. We emphasize cultivatingsustainability leadership within the executive team through specialized training programs, international exchanges,and hands-on projects, systematically enhancing their pro?ciency in climate change, social responsibility, andcorporate governance.
◎ Appointment of Directors and Senior Management
Code of Business ConductSupplier Code of Conduct
Basic Speci?cations for Work Safety
Management Regulations onAnti-Corruption and Anti-Bribery
Basic Norms of Environmental
ProtectionEnvironmental Protection Statement
The Directors and Senior Management Pro?le
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???,????????,??????,??????????,??????,??????,???
NamePositionAge
Board CommitteesProfessional BackgroundIndustryExperence
AuditCommitteeFinancialAccounting
StrategyandSustainable
Develop-mentCommittee
NominationandRemunera-tionCommitteeOperations
Manage-
ment
Attendance
（Boardmeetingsand Boardcommitteemeetings）
SharesHeld at the
End ofReporting
Period(Shares)
RiskManage-
ment
andCompliance
HuangChanggeng
(Male)
Director
ChairViceDirector
ChairDirector
DirectorIndepen-
dentDirectorIndepen-
dentDirectorIndepen-
dentDirector
VicePresident
VicePresidentand CFO
VicePresidentand BoardSecretary
Directorand CEODirector andExecutive
VicePresident
HouXiaoliang(Male)WuGaochao(Male)ZhongKexiang(Male)XieXiaotong(Male)
ChengWenwen
(Male)
ZhuHaomiao
(Male)
HongChao'e(Male)ZhongBingxian(Male)Zhou Yujun(Female)
Ye Xiaojie(Male)
Wang Dan(Female)
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Our Board's Nomination and Remuneration Committee is responsible for formulating and reviewing compensationpolicies and plans for directors and senior management, as well as developing and implementing performanceevaluation criteria. In accordance with the "Articles of Association" and the "Working Rules of Nomination andRemuneration Committee," compensation plans for salaried directors and senior management are proposed by theCommittee, approved by the Board, and submitted to the Shareholders' General Meeting for rati?cation. Externaldirectors and supervisors receive allowances as determined by the Shareholders' General Meeting. The compensationof the Chairman and senior management is calculated under the "Annual Compensation Implementation Plan"approved by the Shareholders' General Meeting. Independent directors constitute over ??% of the Committee'smembership, with an independent director serving as its chairperson, ensuring the independence and objectivity ofcompensation decisions.
To restrain short-term pro?t-seeking behavior, we have implemented a remuneration risk control mechanism. Wereserve ??% of the post-tax annual performance-based salary as a risk fund, which will be disbursed only after thecompletion of tenure or post-tenure audits. In cases of major violations or misconduct during the term of service, thecorresponding amount may be deducted or forfeited from the risk fund. This mechanism is designed to strengthen riskaccountability and align compensation with long-term performance.
Under the "Annual Compensation Implementation Plan" the total annual compensation for our Chairman and seniormanagement comprises a base salary and performance-based bonuses linked to corporate economic performance(including ?nancial metrics such as net pro?t attributable to shareholders) and individual performance assessments.Within the performance evaluation framework, we have progressively increased the weighting and in?uence of ESGfactors, such as work safety metrics, ensuring that environmental and social responsibilities are prioritized alongside?nancial performance.
To encourage long-term value creation, we have implemented a restricted stock incentive plan and an employee stockownership plan. Performance metrics include EBITDA/revenue, compound net pro?t growth rate, and core businessrevenue as a percentage of total revenue. Equity grants are subject to stringent performance evaluations, with atwo-year lock-up period followed by a three-year vesting schedule post-grant to reinforce long-term incentives. Tobroaden participation, these plans extend to ??? mid-to-senior managers and technical experts globally, creating amulti-tiered incentive system from executives to core talent. As of the reporting period's end, our directors and seniormanagement collectively hold ??.???? shares, representing ?.????% of the company's total equity.
Governance Capability Enhancement
Our Board of Directors strictly complies with relevant laws, regulatory requirements, and the provisions of our BoardMeeting Procedures to establish and improve decision-making mechanisms, diligently ful?ll duties, and performobligations in accordance with regulations. During the reporting period, we convened a total of ?? Board meetings,reviewing ?? proposals; held ? special meetings of independent directors, reviewing ?? proposals; ?? Audit Committeemeetings, reviewing ?? proposals; ? Nomination and Remuneration Committee meetings, reviewing ?? proposals; ?Strategy and Sustainability Committee meetings, reviewing ?? proposals; and ? Supervisory Board meetings, reviewing?? proposals.We have prioritized the professional competency development of directors, supervisors, and senior management byproviding them with regular training programs to enhance their understanding of global sustainability trends andresponse capabilities, thereby improving our scienti?c governance level. During the reporting period, our directors,supervisors, senior management, and relevant management personnel participated in ?? training sessions organized bythe China Securities Regulatory Commission, stock exchanges, listed company associations, and internal programs.Training topics included compliance operations of listed companies, risk management, information disclosure, marketvalue management and mergers and acquisitions, fundraising management, ESG special topics, etc.
We have implemented a transparent compensation system aligned with long-term value creation, ensuring that thecompensation arrangements for the Board and senior management are e?ectively incentivized based on sustainableperformance while meeting the expectations of shareholders and other stakeholders. Through scienti?c andtransparent compensation governance, we have closely aligned the interests of the Board and senior managementwith the company's long-term value and stakeholder well-being, establishing a robust incentive mechanism tomaximize comprehensive economic, environmental, and social value.
◎Compensation of Director and Senior Management
CompensationPlan Development
Compensationand PerformanceReviews
ClawbackMechanism
Equity IncentiveMechanism
We strictly comply with relevant laws, regulations, and regulatory requirements governing related-party transactionmanagement to ensure that our decision-making and business activities align with the interests of all shareholders,particularly minority shareholders. We have established the "Approval Policy on Related-Party Transaction," which clearlyde?nes the scope of related parties and transactions, decision-making procedures, pricing principles and methodologies,recusal mechanisms, and information disclosure requirements to ensure the fairness, transparency, and necessity of alltransactions.To ensure fair pricing in related-party transactions, we require all such transactions to adhere to market-orientedprinciples, with prices comparable to those in independent third-party transactions. For material related-party transac-tions, we may engage independent ?nancial advisors to provide professional opinions, o?ering objective foundations forBoard decisions.We continuously re?ne our related-party identi?cation mechanisms by establishing a related-party information databaseand strengthening substantive reviews, thereby enhancing related-party transaction management to ensure consistencyand e?ectiveness in group-level oversight.
◎ Related Party Transaction
In addressing potential con?icts of interest, we have explicitly de?ned the ?duciary duties of directors, supervisors, andsenior management in our "Articles of Association." We strictly prohibit directors, supervisors, and senior managementfrom exploiting their positions to seize business opportunities that rightfully belong to the company for personal orthird-party gain, or from operating competing businesses either independently or on behalf of others. Additionally, wehave established the "Code of Business Conduct" to formally articulate our principles and stance on con?ict-of-interestprevention.To prevent and mitigate adverse impacts arising from con?icts of interest, thereby safeguarding the maximum interestsof the company and all shareholders, We require directors, supervisors, and senior management to promptly discloseany circumstances that may involve con?icts of interest, ensuring timely identi?cation and e?ective management ofsuch risks. When directors face con?icts of interest in Board deliberations, they must declare such interests and recusethemselves from voting; when senior management encounters con?ict in operational decision-making, they mustescalate the matter to non-con?icted superiors or peers for decision-making authority transfer, thereby guaranteeingobjectivity and independence.We encourage employees and external partners to report potential con?ict-of-interest violations through our indepen-dent reporting channels, with robust protections against retaliation in any form.
◎Con?ict of Interest
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We are committed to establishing a fair and transparent shareholder rights protection mechanism, ensuring all sharehold-ers equally enjoy statutory rights and receive reasonable returns, thereby supporting the company's long-term sustainabledevelopment.
Shareholders' Rights and Interests
In protecting shareholder rights, our "Articles of Association" explicitly de?ne shareholders' fundamental entitlements,including the right to know, participate, vote, inquire, and receive pro?ts, while establishing diversi?ed channels forexercising these rights. We standardize the implementation of Shareholders'General Meeting procedures—includingconvening, conducting, and voting—in strict compliance with applicable laws, regulatory requirements, and our "Sharehold-ers' Meeting Procedures." Speci?c voting mechanisms such as separate vote counting and cumulative voting are implement-ed, with online voting platforms provided to minority investors to ensure equal treatment for all shareholders of the sameclass. During the reporting period, we held ? Shareholders'General Meetings, deliberating ?? proposals.To guarantee all investors' equal access to company information, we rigorously formulate and continuously re?ne our"Information Disclosure Policy" in accordance with legal requirements. This policy clari?es the fundamental principles,responsible departments and duties, scope and formats, timeliness requirements, and internal procedures for informationdisclosure, providing clear guidance to ensure disclosures are timely, truthful, accurate, complete, and equitable.
As a state-owned enterprise, we have consistently upheld the leadership of the Party in driving development and strengthen-ing our mission and responsibility in the new era. We earnestly implement the Party's and the nation's policies and guidelines,aligning closely with our ?ve-year strategic management plan and the goals of the ??th Five-Year Plan. We are committed tostandardizing our governance system, promoting democratic decision-making, and institutionalizing innovation in Partybuilding. We have deepened the “deep learning for excellence, daring to strive for leadership, and practical e?orts fore?ectiveness” campaign, carried out in-depth disciplinary education, and continuously integrated Party building withbusiness operations, laying a solid foundation for the company's high-quality development.
Party Building
◎ Shareholder Rights Protection
◎ Dividend Distribution Plan
◎Shareholder Feedback Management
We prioritize e?ective communication and interaction with shareholders through a multi-tiered investor relationsmanagement system. We have established the "Investor Relations Management Policy," which clearly de?nes thefundamental principles, responsible departments and duties, operational content, and methodologies for investorrelations management to systematically advance and implement related initiatives. We actively promote the applicationof information systems for investor relations management to achieve proactive and re?ned engagement, ensuring closecommunication with investors. We continuously optimize diversi?ed communication mechanisms with investors throughour corporate website, social media platforms, telephone, fax, email, stock exchange interaction portals, and otherchannels. Engagement formats include Shareholders' General Meetings, earnings brie?ngs, corporate roadshows, analystconferences, investor site visits, and online Q&A sessions, guaranteeing timely responses to shareholder inquiries.During the reporting period, we held ? earnings communication events and actively participated in collective earningsbrie?ngs organized by securities regulatory authorities and associations for public companies, promptly addressinginvestor questions received via on-site, online, and telephone channels; we innovatively deployed visualized ?nancialreports and AI virtual host technology in semi-annual and third-quarter earnings brie?ngs to enhance reporting e?ective-ness and interactive experiences;we responded to ?? investor inquiries on the SSEE-interactive platform with a ???% response rate; weleveraged media platforms such as Xinhua News Agencyand China Securities Journal to multi-dimensionallypresent our brand image and communicate corporatevalue through print, video, online, and o?ine campaigns;we conducted over ??? investor research sessions,including nearly ?? on-site visits engaging approximately?,??? participants, signi?cantly strengthening mutualunderstanding and trust with shareholders.
◎ Investor Relations Management
In terms of shareholder returns, we implement a stable, proactive, and sustainable dividend policy aimed at continu-ously enhancing shareholder value and promoting long-term investment. In June ????, we completed the distributionfor the ???? ?scal year, paying a cash dividend of ?.?? RMB (inclusive of tax) for every ?? shares to all shareholders. Thetotal cash dividend distributed amounted to ???,???,???.?? RMB (inclusive of tax), representing ??.??% of the net pro?tattributable to ordinary shareholders of the listed company as reported in the ???? consolidated ?nancial statements.
We have actively advanced the integrationof Party leadership into our corporategovernance. By e?ectively implementingthe rules of procedure for Party organiza-tions and improving the collectiveleadership mechanism, we have fullyleveraged the Party Committee's role insetting the direction, overseeing the overallsituation, and ensuring implementation.This has ensured that major decisions aremade democratically, scienti?cally, and ina standardized and e?cient manner,thereby continuously improving ourgovernance e?ectiveness. During thereporting period, we strictly enforced thedecision-making system for "major issues,major personnel appointments anddismissals, and signi?cant biddingdecisions." We held ?? Party Committeemeetings, during which we deliberated inadvance on ??? major matters related toour reform and business operations. Theseincluded issues such as major strategies,key appointments and removals, andcritical bidding processes. We have alsocontinued to deepen the reform of ourrules and regulations system by systemati-cally abolishing, revising, and establishingpolicies. We issued or revised a total of ??corporate regulations and updated ??articles of association for our subsidiaries.Compliance management requirementshave been embedded across all areas andprocesses of our business operations.
We focus on the goal of "promot-ing high-quality development"and concentrate on key andchallenging tasks for the year,establishing an emergencyvanguard role with Party membersleading employees to overcomedi?culties and eliminatebottlenecks. During the reportingperiod, we formed a technicalinnovation task force led by Partymembers, undertaking nationaland company-level scienti?cresearch projects. Party membersand cadres took the lead in "goingout," accelerating the constructionof overseas projects in France,South Korea, Laos, and othercountries, while expanding ourproduct's international market.Party members and cadres alsoactively took responsibility,focusing on key projects, andpromoting the steady implemen-tation of major projects such asthe Xiamen Golden Egretcemented carbide industrialproject and the XWXN (Yaan)lithium-ion project.
We prioritize feedback from minority shareholders. Our "Information Disclosure Policy" speci?es procedures forhandling investor complaints related to violations of information disclosure regulations, unauthorized externalguarantees, or failures in investor communication mechanisms. Investors may submit complaints via telephone, writtencorrespondence, or email, which will be coordinated and resolved by the Board Secretary O?ce.
The Leadership Role of the PartyCommittee for Enhancing CorporateGovernance Capacity
We have improved organizational management,coordinated Party-building resources, andestablished integrated platforms to enhance ourorganizational "combat e?ectiveness." During thereporting period, we completed the re-election orsupplementation of ?? Party organizations. Werevised the Party-building assessment checklistand deepened the "Star-Rated ComplianceEvaluation" program, achieving a ???% standardcompliance rate for grassroots Party branches,with the number of four-star and above branchesrising to ??. We have innovated Party-buildingmodels by exploring "on-chain" Party-building,which brings together synergies from multipleupstream and downstream enterprises throughcollaborative construction, achieving resourceconnectivity across the supply chain. We havealso deepened the development of Party-buildingbrands, creating nearly ?? Party-building brands,such as "New Egret" and "Tungsten Brilliance,Unbounded Radiance," guided by initiatives like"Party Building + Management Innovation" and"Party Building + Digital Empowerment," forminga brand matrix that blooms in multiple directions.We have conducted in-depth Party disciplineeducation, focusing on key learning areas,expanding learning platforms, and launching theinnovative "Six Learning Interactions" model. Byutilizing real-life cases for warning education, wehave continually strengthened the awareness ofintegrity and self-discipline among Partymembers and cadres, and deepened thecomprehensive and strict governance of theParty.
The Execution Role of PartyOrganization for StrengtheningGrassroots Battlegrounds
The Vanguard Role of Party Membersto Support Quality and E?ciency inProduction and Operations
PrefaceSocialAppendixGovernanceEnvironmental
Sustainability-RelatedGovernance
??????
????Sustainability Report
Environmental
Climate ResponseEnergy UsageUsage of Water ResourcesPollutant DischargeWaste DisposalEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementCircular Economy
We fully recognize the critical importance of environmental protection to sustainable development. We actively respondto global environmental governance initiatives and international standards, aligning our actions with the UnitedNations Sustainable Development Goals, the Paris Agreement, and other global commitments.We integrate environ-mental responsibility into our strategic decision-making and daily operations, striving to minimize our impact on thenatural environment across the entire lifecycle of resource development, manufacturing, and product recycling.Throughtechnological innovation and management optimization, we continuously improve the e?ciency of energy andresource utilization, reduce pollutant emissions, and protect biodiversity. We will take our responsibility and continue tocollaborate with stakeholders to explore climate solutions and contribute our strength to the achievement of globalclimate goals.
EnvironmentalMatters
???? Management
Objectives
Implementation Measures
Environmental
Matters
???? Management
Objectives
Implementation MeasuresWe Set carbon peaking and net zero targets, focusingon key areas such as energy structure optimization,process technology innovation, resource recycling,low-carbon product development, intelligentmanufacturing and digital transformation, and valuechain collaboration on emissions reduction. Westrived to explore and implement systematic carbonreduction measures across the entire value chain. In????, we completed carbon veri?cation for ??subsidiaries and obtained carbon footprintcerti?cation for ?? products. Our total R&Dinvestment for the year reached approximately?,???.?? million RMB.
Complete carbon veri?cation andcerti?cation for ?? subsidiaries inaccordance with ISO ?????-?:????standard.Complete ISO ????? productcarbon footprint certi?cation for ??products.Increase investment in the researchand development of green andlow-carbon products.
Climate Response
Optimize the energy structure andgradually increase the proportion ofclean energy usage.Continuously improve the energymanagement system, with thecoverage of production subsidiariescerti?ed under the ISO ?????Energy Management Systemreaching no less than ??%.
We established and optimized the energy manage-ment system, actively promoting energy-e?cientuse and green transformation. This includedincreasing the proportion of self-generated andconsumed clean energy such as solar, wind, andhydro power, optimizing the energy structure, andincreasing the share of renewable energy. In ????,the proportion of clean energy usage reached??.??%, and the coverage of production subsidiariescerti?ed under the ISO ????? Energy ManagementSystem increased to ??%.
Energy Usage
We introduced water-saving processes andequipment, implemented full-process water usagemonitoring and control, and achieved wastewaterrecovery and reuse through technologicalinnovation. This signi?cantly reduced the consump-tion of fresh water and promoted the sustainable useof water resources.Usage of Water
Resources
Improve the water resourcerecycling rate.
All subsidiaries achieve compliantemissions for waste gas, wastewa-ter, and noise throughout the year.Complete the construction of thewastewater monitoring project forthe Xiamen regional environmentallaboratory.
We established an emissions monitoring andtreatment system, using industry-leading cleanproduction processes and end-of-pipe treatmenttechnologies to systematically reduce theenvironmental impact caused by air pollutants,water pollutants, and noise.
Pollutant Discharge
Ecosystem and
BiodiversityProtection
Promote ecological restoratione?orts such as re-greening and landreclamation, with a target of no lessthan ??,???㎡ of restored miningarea during the year.
Continued improvement of theenvironmental managementsystem, with the coverage rate ofISO ?????-certi?ed manufacturingsubsidiaries increased to no lessthan ??%.No environmental violationsoccurred during the year.
Environmental
ComplianceManagement
All subsidiaries achieve safe andcompliant disposal of wastethroughout the year, with a gradualincrease in waste recycling rates.Waste Disposal
We adhered to the principles of "reduction,recycling, and harmless treatment," to optimizeproduction processes, implement green packaging,and strengthen classi?cation and recycling e?orts.We aimed to continuously reduce the generation ofgeneral waste while enhancing resource recycling tominimize the negative environmental impact ofwaste emissions.Through the implementation of a "source reduction? process control ? safe disposal" managementstrategy, a comprehensive lifecycle managementsystem for hazardous waste established.We focused on biodiversity protection, adhering tothe principle of "protecting during development anddeveloping while protecting." We conductedenvironmental impact assessments prior to projectinitiation to identify key ecosystems, a?ectedspecies, and habitats within project areas, withcorresponding protection and compensationmeasures formulated. We carried out ecologicalrestoration activities concurrently with businessoperations, including greening of impacted areas, tominimize environmental impact and createfavorable ecological conditions for local biodiversityconservation. In ????, the green restoration area ofthe mining zones reached ??,??? square meters.We formulated the Standardized ManagementGuidelines for Environmental Protection to de?nerequirements for environmental impact assessment,compliance monitoring, environmental risk control,and emergency management. Following theprinciples of "prevention ?rst, full-processmanagement, and continuous improvement," Weestablished a systematic and comprehensiveenvironmental risk control mechanism to supportsustainable development. In ????, the coverage rateof ISO ?????-certi?ed manufacturing subsidiariesincreased to ??%, and no environmental violationsoccurred throughout the year.Launch scrap disposal processprojects and non-metallic resourcerecycling projects to continuouslyimprove resource recovery andutilization e?ciency.Increase the proportion of recycledmaterials used in productionprocesses.Expand investment in the recyclingof secondary resources such asregenerated tungsten materials,cobalt, nickel, and rare earth metalswith high added value.Improved the recycling rate ofpackaging materials.
We emphasized resource recovery and utilization byestablishing a closed-loop management system of"resources?products?recycled resources,"integrating the concept of a circular economy intobusiness operations, and enhancing resourcee?ciency while reducing environmental impactsthrough systemic innovation and full-processmanagement.
Circular Economy
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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We uphold the mission of "making XTC a place for society to bene?t from" and actively respond to China's carbonpeaking and carbon neutrality goals. We have established the strategic climate targets of "achieving carbon peaking by???? and net zero by ???? across our operations."
◎ Climate StrategyClimate change is one of the most pressing challenges facing humanity today, and companies play a critical role in theglobal climate action. We have integrated climate change response into our long-term strategic planning and arecommitted to leading the industry’s low-carbon transition. We have developed a scienti?c and systematic carbonreduction roadmap and are committed to achieving net zero across our operations by ????. Our climate actions gobeyond continuously reducing the carbon footprint of our operations and products, we also actively contribute tocarbon reduction for society by developing low-carbon products and working with partners to build a low-carbon valuechain. Meanwhile, we actively assess the physical and transition risks posed by climate change to our operations,develop adaptive strategies, and continuously enhance our climate resilience.
Climate Response
???,???tCO
?
e
Emissions fromthe value chain
Emissions fromour own operations
202120112023203020502060
Total Scope ? and Scope ? EmissionsScope ? Emissions
Carbon O?set Scope ?, Scope ?, and Scope ? Emission ReductionsBaseline Emissions:
Refer to greenhouse gas emissions that would occur in the absence of any emission reduction measures.
Baseline Emissions
Baseline yearCarbon
Peaking
Net Zero acrossour own operations
Net Zero acrossthe entire value chainIn ????, we publishedour ?rst ESG report.In ????, wepublished our?rst socialresponsibilityreport andhave beenreleasing itannually.
In ????, we released our ?rst sustainability report.Taking ???? as the baseline year, we conducted a greenhouse gas(GHG) inventory across all entities within our consolidated scopein accordance with ISO ?????-?:????. In ????, our total GHGemissions amounted to ???,??? tCO
?e, including:
? Direct emissions (Scope ?): ???,??? tCO
?e? Energy indirect emissions (Scope ?): ???,??? tCO
?e
???% Utilization of Green PowerCarbon Peaking PhaseNet Zero Phase
CarbonReduction
Actions
Optimizingthe Energy Structure
InnovatingProcess Technology
Enhancing Advanced
Manufacturing
and DigitalTransformation
CollaboratingAcross Value Chain
DevelopingLow-carbonProductsPromotingResourceRecycling
CarbonPeaking
XTC Net Zero Pathway
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????Sustainability Report
From January ?, ????, to December ??, ????Commit to achieving net zero for Scope ? and Scope ? emissions from our operational activities
in accordance with PAS ????Achieving carbon peaking by???? and net zero by ???? across our operations
At Golden Dragon Rare-earth, the company actively promotes process optimization and technological innovation to drivegreen and low-carbon development. By introducing high-e?ciency energy-saving equipment, optimizing equipmentmanagement, adopting circular technologies, and upgrading production processes, the company has signi?cantly enhancedresource e?ciency and achieved notable energy-saving and emission-reduction results. In ????, a series of energy-savingretro?t projects were carried out, resulting in total electricity savings of approximately ?,???,??? kWh and a reduction ofaround ?,??? tCO
?e in carbon emissions. Key initiatives included:
Carbon Reduction ActionsClimate change presents both challenges and opportunities for our industry. We drive emission reductions with focuson key areas such as energy structure optimization, process technology innovation, resource recycling, low-carbonproduct development, intelligent manufacturing and digital transformation, and value chain collaboration on emissionsreduction. We are committed to implementing systematic carbon reduction measures throughout the entire valuechain, making green development a de?ning feature of our company.
At Golden Dragon Rare-earth, the company actively develops photovoltaicpower stations to continuously enhance its energy self-su?ciency. Byparticipating in the Fujian power market, the company prioritizes thepurchase of clean electricity sources such as nuclear, wind, and hydropowerto advance its energy transition and reduce reliance on fossil fuels. By theend of ????, the company had installed approximately ?MW of photovoltaiccapacity, generating ?.?? million kWh of electricity and achieving anestimated carbon reduction of about ?,??? tCO
?e. Additionally, throughgreen electricity market transactions, the company purchased a total of ??.??million kWh of green power, resulting in a further carbon reduction ofapproximately ??,??? tCO
?
e.At XWXN, the company actively promotes the use of clean energy byimplementing measures such as rooftop photovoltaic installations and directpurchases of green electricity. By incorporating photovoltaic, wind, andnuclear power, XWXN continues to optimize its energy mix and reducecarbon emissions from production and operations. In ????, clean energyaccounted for ??.??% of the company's electricity consumption.At Jiujiang Golden Egret, the company has utilized approximately ??,???square meters of rooftop space to develop a distributed photovoltaic powergeneration project, continuously advancing the low-carbon transformationof its energy structure. The project has a designed capacity of ?MW and hasnow been completed. It is expected to generate around ?.?? million kWh ofelectricity annually, resulting in an estimated carbon emissions reduction ofapproximately ?,??? tCO
?e.
At Tianjin SofTool, the company has been developing distributed photovolta-ic (PV) power generation projects by utilizing rooftops and parking areas,actively promoting the use of clean energy. The planned capacity of theproject is ?,??? kWp, including a rooftop PV system and the necessarygrid-connected facilities. In ????, the company signed an energy manage-ment agreement and initiated project construction. The project is expectedto be completed and put into operation in ????. Once operational, it isprojected to generate approximately ?.?? million kWh of electricity in its ?rstyear, resulting in an estimated carbon emissions reduction of around ?,???tCO?
e.Photovoltaic Rooftop at XWXN (Ningde)
Golden Dragon Rare-earth'sGreen Electricity Consumption Certi?cate
International RenewableEnergy Certi?cate(I-REC)
of XWXN (Sanming)
Photovoltaic Rooftops atthe Plant ofGolden Dragon Rare-earth
Energy Structure Optimization
As an energy-intensive enterprise, optimizing the energy structure is a key pillar of the company's emission reductionstrategy. By actively investing in or promoting the use of green and clean energy sources such as photovoltaic power,wind energy, and nuclear power, as well as purchasing green electricity and renewable energy certi?cates, we aim toincrease the share of renewable energy in our energy mix and accelerate the decarbonization of our power sources.
Process Technology Innovation
Process technology innovation is the core driving force for manufacturing enterprises to achieve carbon reductiongoals. We are committed to innovation-driven development, increasing investment in research and development andprocess improvements, and promoting low-carbon technological transformation at every stage of the productionprocess. We advocate for the use of advanced energy-saving equipment and intelligent control systems, optimizingprocess parameters and production scheduling to maximize energy utilization.
Highlight | Promoting the Use of Green and Clean Energy
Highlight | Promotion and Application of Energy-Saving Equipment and Intelligent Control Systems
Highlight | Technological Innovation in Processes Drives Energy Conservation and Carbon Reduction
Permanent Magnet Motor Retro?t: ??? permanent magnet motors were upgraded, achieving a total installed capacity of?,??? kW. The proportion of permanent magnet motors in use increased from ?% to ??%, e?ectively improving the energye?ciency of production equipment.Optimized Equipment Management: Improvements in the management of air compressors in production workshops ledto annual electricity savings of about ?,???,??? kWh, reducing carbon emissions by approximately ??? tCO
?
e.Application of circular technology: The renovation of the circulating water system in workshops through tidal ?owadjustments and management optimization saved approximately ???,??? kWh of electricity and reduced carbon emissionsby about ??? tCO
?e.Production process upgrades: Fine-tuning the parameters of the low-temperature zone in sintering furnaces savedaround ??,??? kWh and reduced emissions by about ?? tCO
?e. Optimization of the dewaxing process in in?ltration furnacessaved approximately ??,??? kWh, cutting emissions by around ?? tCO
?e. Speed reduction optimization for ?? Roots pumpmotors resulted in savings of about ???,??? kWh and reduced emissions by roughly ??? tCO
?
e. Upgrading the automaticcontrol systems for ?? chillers saved around ???,??? kWh and reduced emissions by about ?? tCO
?e. Implementing boostand frequency reduction upgrades for ?? fans led to savings of approximately ???,??? kWh and a reduction of around ???tCO?
e in emissions.
At Ganzhou Hongfei, the company actively promotes the adoption of high-e?ciency energy-saving equipment and introducesintelligent control systems to optimize energy use in real time, signi?cantly reducing carbon emissions. Key initiatives include:
Energy-e?cient equipment application: The company replaced motors of three circulating water pump systems withpermanent magnet motors and upgraded two old air compressors to permanent magnet variable-frequency motors,e?ectively reducing energy consumption during production.Process energy-saving upgrades: In the tungsten rod annealing process, IGBT high-frequency power supplies wereadopted to replace traditional electron tube-based systems, reducing energy consumption by ??%. Additionally, bydeveloping self-made medium-frequency sintering furnaces and replacing silicon-controlled recti?ers with IGBT powersupplies, power conversion e?ciency was improved by ??%, further enhancing energy e?ciency.Intelligent control system implementation: An automated monitoring system for the reduction furnace was introduced,building a cloud platform for centralized monitoring. The platform features large-screen displays showing real-timeequipment operation, collects key operational data, and generates reports. A centralized gas monitoring system was alsointroduced to track the pressure and temperature of hydrogen, nitrogen, and high/low-pressure air, with centralized alertstriggered under abnormal conditions. Through automated monitoring and data analysis, the company achieves preciseequipment regulation and reduces energy waste.
At GANPOWER, the company has conducted comprehensive process optimization and innovation on the wet line to reduceenergy consumption and promote resource recycling. The key initiatives include:
Process technology innovation: The "hydrochloric acid—sodium chlorate" system used in leaching and impurity removalprocesses was replaced with a "sulfuric acid—hydrogen peroxide" system, achieving a reduction of over ??% in steamconsumption. The external slag was transformed from iron-manganese-aluminum slag to iron-aluminum slag, resulting in amore than ??% reduction in the slag output per ton of metal.Metal recovery: In the extraction process, manganese metal is recovered, enabling resource utilization.Energy-saving equipment application: The company replaced low-e?ciency motors with permanent magnet motors,improving energy utilization e?ciency by over ??%.
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In terms of shareholder returns, we implement a stable and sustainable dividend policy, committing that, when pro?table andwith su?cient cash ?ow, the annual dividend will account for no less than ??% of the net pro?t attributable to ordinary sharehold-ers of the listed company in the consolidated ?nancial statements. In ????, despite cyclical ?uctuations in the industry, weproceeded with an annual dividend of RMB ?.?? per ?? shares, representing a ?% increase compared to the previous year.
Power Battery Recycling and Reuse
At Ninghua Xingluokeng, the company actively promotes the recycling and reuse of mineral resources through the implementa-tion of waste rock disposal processes and non-metallic resource recovery projects. On one hand, by discarding ore that does notmeet grade requirements, the project reduces energy consumption during the bene?ciation process. On the other hand, thediscarded ore is crushed and sold externally as construction material, while substandard sand and gravel generated duringproduction are also sold as construction sand. These measures enhance both environmental and economic bene?ts. Additional-ly, the company has invested in feldspar and quartz recovery projects to continuously improve the resource utilization rate ofmineral extraction.At Duchang Jinding, the company actively promotes comprehensive utilization of mineral resources by enhancing the e?cientrecovery of low-grade ores, tailings, and associated minerals, thereby improving the overall resource utilization rate. The projectconsists of two key components: separation and recovery of mineral-bearing waste rock, and waste rock enrichment throughcrushing systems. It is being implemented in two phases. Phase I involves the construction of a crushing and pre-concentrationsystem with a processing capacity of ?.?? million tonnes per year, producing ?.?? million tonnes of construction aggregateannually. Phase II focuses on the separation and recovery of mineral-bearing waste rock, processing ?.?? million tonnes per yearand yielding ?.?? million tonnes of construction aggregate. Upon completion, the project is expected to increase annual tungstenmetal production by ??? tonnes and molybdenum metal production by ?? tonnes, signi?cantly enhancing the recovery e?ciencyof valuable elements, reducing solid waste emissions, and achieving both economic gains and green development.
Leveraging our full value chain capabilities, we actively invest in the research and develop-ment of key technologies related to high-performance magnetic materials. We focus onapplication development in core areas such as electric vehicle drive systems, high-e?ciencywind power technologies, and intelligent motor components. Our goal is to continuouslyimprove the stability and versatility of our products, providing high-quality magnetic materialsolutions to support the green energy and intelligent manufacturing sectors, and to contributeto the low-carbon development of related industries.
Positive electrode materialPrecursorBattery cellBattery pack
Resource Recycling
Resource recycling is an important approach to reducing the carbon footprint across the value chain. We integrate theconcept of a circular economy into all aspects of our operations by building a closed-loop management system of"resources?products?recycled resources." It reduces the environmental impact of waste disposal and e?ectively lowerscarbon emissions from raw material extraction and processing, maximizing resource value while minimizing carbonemissions.
Driven by global "dual carbon" goals, the installed capacity of the photovoltaic industry continues to grow, placing higherdemands on silicon wafer cutting technologies. Traditional carbon steel diamond wires have become insu?cient for precisioncutting due to strength limitations. Leveraging our mature tungsten wire manufacturing technology, we independentlydeveloped high-strength tungsten wire speci?cally designed for photovoltaic applications. This product, with its ?ner diameter,e?ectively reduces saw kerf width, minimizes silicon material loss, and increases wafer yield, thereby improving materialutilization e?ciency. Its high strength allows for faster cutting speeds with lower wire breakage rates, signi?cantly boostingproduction e?ciency. In addition, the product o?ers high recycling value, as the used wire can be recovered and reused,supporting sustainability throughout the product lifecycle. The application of high-strength tungsten wire has advanced siliconwafer processing technologies, improved overall resource e?ciency in the photovoltaic sector, and provided robust support forthe industry's high-quality, low-carbon development.
Low-Carbon Product Development
Low-carbon product development is a strategic initiative to meet the growing market demand for green solutions.Through innovative design and advanced material applications, we actively develop critical materials and componentsthat support the clean energy transition. Our products play a vital role in enabling the growth of renewable energy andelectric mobility sectors, enhancing our competitiveness while contributing to society's carbon reduction goals.Highlight | Comprehensive Utilization of Mineral ResourcesHighlight | High-Strength Tungsten Wire for Photovoltaics
Highlight | Rare Earth Permanent Magnet Materials
Highlight | High Value-added Metal Recycling
Recycling ofused battery
Developing productsfor cascaded utilization
Pre-treatment + wetprocessing regeneration
Battery-grade cobaltnickel salt products
In the cascade utilization stage, we recover used battery packs and apply processes such as whole-pack charging tests,performance evaluations, and classi?cation of new energy battery packs by pack grade. These recovered battery packs arethen reused in energy storage products, backup power systems, low-speed vehicles, solar-powered streetlights, and otherpower supply products.In the resource regeneration stage, we operate complete production lines for the disassembly, discharge, high-tempera-ture pyrolysis, crushing and separation, leaching, solvent extraction, and evaporation crystallization of waste powerbatteries. With an annual processing capacity of ??,??? tons of waste batteries, battery scraps, cathode and anode materials,and nickel-cobalt waste, we not only achieve e?ective recovery and utilization of high value-added metals but alsosigni?cantly reduce our environmental impact.
Stable Quality:We use high-grade raw materials such as metallic neodymium, praseodymium-neodymium alloys,ferroboron, and pure iron. Through the adoption of advanced domestic and international equipment and processingtechniques, we ensure consistent and reliable product quality.Green and Environmentally Friendly: Our sintered NdFeB permanent magnet materials comply with the "Speci?cation forgreen-design product assessment - Sintered Nd-Fe-B Magnetic Material." All environmental and energy performanceindicators exceed industry standards. For example: The particulate emission concentration is ??.? mg/m?, well below the ???mg/m? limit; Both hazardous waste and NdFeB scrap recycling rates have reached ??? percent. In addition, we conductsystematic evaluations of the environmental impact of our products across di?erent lifecycle stages and propose optimizationmeasures. These include reducing the use of non-renewable rare earth elements and developing magnetic materials basedon more abundant rare earths. Through these actions, we are achieving business growth while honoring our ecologicalresponsibilities.
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We actively support China's dual-carbon goals and are committed to managing the carbon footprint of our productsthroughout their entire lifecycle. Focusing on selected key products, we have conducted carbon footprint accounting acrossthe research and development, production, supply chain, and consumption stages. We analyze carbon emissions in detailacross raw material extraction, manufacturing, transportation and distribution, and product use phases, identifying criticalemission sources and implementing targeted reduction measures. During the raw material acquisition phase, we encourageour suppliers to adopt low-carbon practices. In the manufacturing stage, we reduce emissions by optimizing process ?ows,using clean energy, and introducing energy-e?cient equipment. At the product application stage, we focus on recyclableproduct design to enhance material reuse and recycling rates. To date, we have completed carbon footprint assessments formultiple core products and obtained ISO ????? Product Carbon Footprint Certi?cation, providing credible carbon emissionsdata to support our downstream customers.
Traditional mining operations face challenges such as high labor intensity, signi?cant safety risks, and rising operating costs. AtNinghua Xingluokeng, we actively advanced the construction of a "?G + Smart Mine" to improve production e?ciency andoperational safety through digital technologies. This initiative contributes to the development of a green, safe, and e?cientmining model and o?ers a valuable reference for the industry's digital transformation. In partnership with Fujian Mobile, weupgraded existing intelligent mining equipment with ?G-enabled technologies. By leveraging China Mobile's "?G + Multi-Net-work Integration Technology," we implemented smart upgrades in unmanned mining, remote-controlled excavators anddrilling rigs, and intelligent scheduling systems. These innovations enabled full-chain intelligent operations across loading,transportation, dispatch, and management. Our "Xingluokeng Tungsten Mine Multimodal Edge Computing ?G Smart Mine"project was recognized in the ???? National Industrial Internet Pilot Demonstration List, positioning us as a national model forintelligent mining transformation.At Duchang Jinding, we incorporated smart mine construction into the annual operational plan and continued to upgradeautomation and intelligent systems. Key e?orts included implementing platforms for mine automation, automatic acidaddition, smart weighing, explosive warehouse monitoring and alarm, automated cone crushers for ?ne crushing, ?otationcolumn level control, automatic packaging of tungsten-molybdenum products, resource reserve management, and real-timemine environment monitoring. We actively pursued the strategy of "mechanizing labor replacement and automating laborreduction" by reinforcing mechanization in mining and automation in mineral processing. These e?orts continuously enhanceintelligent mine management and support our goal of building low-energy, low-carbon, high-e?ciency smart green mines.
In the era of carbon neutrality, green, safe, and recyclable new energy has become a core driving force. We promote the energyrevolution through material innovation and provide advanced material solutions for the industry. Since entering the ?eld ofcathode material research and development in ????, we have continuously increased R&D investment and madebreakthroughs in a number of key technologies for both ?C lithium batteries and power lithium batteries. We have successfullylaunched high-voltage lithium cobalt oxide, high-rate Ni?-series, high-voltage single-crystal Ni?-series, Ni?-series, Ni?-series,and Ni?-series NCM ternary materials, among other premium products. Through partnerships with battery manufacturers, wehave supported the development of ?C digital devices, automotive power batteries, and energy storage applications.
In the ?eld of ternary materials, we are continuously driving product upgrades to provide stable and e?cient materialsolutions for the low-carbon transformation of the industry. Highlights include:
Advanced Manufacturing and Digital-Intelligent Transformation
Advanced manufacturing and digital-intelligent transformation represent innovative pathways for improving energye?ciency and reducing emissions. We promote lean and ?exible production by deeply integrating advanced informationtechnologies with manufacturing processes. By building intelligent production management platforms, we aim to ensureproduct quality while maximizing energy e?ciency, setting a benchmark for low-carbon transformation in the industry.
Highlight | New Energy Materials
Highlight | Smart Mine Construction
Highlight | Product Carbon Footprint Management
In the ?eld of ternary materials, we are continuously driving product upgrades to provide stable and e?cient materialsolutions for the low-carbon transformation of the industry. Highlights include:
A newly developed Ni?-series ?.??V high-voltage ternary material that reduces nickel content while maintainingperformance, improving cost-e?ectiveness.Multiple high-voltage ternary products designed for hybrid and range-extended electric vehicles have been developed andare now in mass production.Ultra-high-power Ni?-series ternary materials are being supplied in bulk to overseas customers.High-safety high-nickel ternary materials have passed nail penetration tests, earning positive feedback for their safety andcycle life.Ultra-high-nickel ternary materials have successfully passed system certi?cation by overseas automotive OEMs.In the ?eld of hydrogen energy materials, we have optimized the composition and structure of hydrogen storage materials andapplied advanced manufacturing processes to enhance material performance while reducing costs, thereby expanding theirapplication scenarios. Highlights include:
Our third-generation on-board hydrogen storage alloy has been stably supplied during the reporting period to well-knowninternational carmakers for popular hybrid models. It has also been adopted for mass production in mainstream T-BOXproducts used in wide-temperature vehicle applications.Our newly developed low-cost solid-state hydrogen storage material has been deployed in bulk in post-electrolysishydrogen storage, hydrogen refueling stations, and hydrogen-powered forklifts.In the ?eld of phosphate-based materials, we have focused on addressing the key challenge of poor low-temperature rateperformance in lithium iron phosphate (LFP) batteries. By introducing liquid-phase synthesis technology and integrating threecore techniques, homogeneous synthesis, precursor doping, and precise particle size control. We have developed productssuitable for fast-charging power batteries, high-e?ciency energy storage, and specialty military applications. Highlights include:
Solid-liquid hybrid LFP and pure liquid-phase LFP products have completed customer audit certi?cation and productionline stability veri?cation, are ready for mass production, and have begun large-scale deliveries.We developed hydrothermal lithium manganese iron phosphate (LMFP) for ultra-fast-charging power battery applica-tions. By adopting bulk-phase doping and surface/interface coating technologies, the product demonstrates a clearcompetitive advantage.
[ ? ] LMFP is a novel cathode material formed by introducing manganese into the LFP structure. Its higher voltage platform, enabled bymanganese's electrochemical characteristics, improves energy density and enhances low-temperature performance, all whilemaintaining high safety.
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At XWXN, we regard green supply chain management as a critical lever in our low-carbon transformation. We have developed acomprehensive carbon reduction mechanism covering raw material procurement, energy optimization, carbon footprintveri?cation, energy e?ciency improvement, and logistics system upgrades. Through this mechanism, we aim to achievecollaborative green transformation with our suppliers and create a replicable low-carbon development model for thesustainable growth of the new energy materials industry.
In raw material procurement, we continuously increase the use of recycled content, especially for key metals such as nickel,cobalt, manganese, and lithium. By incorporating more secondary resources, we e?ectively reduce the overall carbon footprintof our products. In parallel, we encourage suppliers, based on their procurement volume share, to progressively establishcarbon emission accounting systems in line with ISO ????? and ISO ????? standards. We also promote the use of clean energyto reduce reliance on fossil fuels. In logistics, we are actively upgrading our transportation systems to include more new energyvehicles. By optimizing logistics routes and increasing the proportion of low-emission vehicles, we have signi?cantly reducedgreenhouse gas emissions during transportation.
In ????, we visited three key suppliers for in-depth exchanges and technical guidance to ensure the comprehensive implemen-tation of low-carbon principles and to reinforce the execution of energy-saving and emission-reduction measures. In addition,for key raw materials such as ammonium bicarbonate and oxygen, we have supported suppliers in conducting carbonfootprint assessments and encouraged them to participate in the carbon trading market, thereby achieving both environmen-tal and economic bene?ts.
In response to the far-reaching impacts of climate change, we have integrated sustainability risks into our overall riskmanagement framework to ensure that our business operations align with the challenges posed by climate change.Using the scenario analysis method proposed by the Intergovernmental Panel on Climate Change (IPCC), we havesystematically assessed the physical risks and opportunities that may arise in the short, medium, and long term.Additionally, by incorporating the scenario models from the International Energy Agency (IEA), we have comprehensive-ly analyzed the transition risks and opportunities we may face in the short, medium, and long terms. Based on thesestudies, we have developed targeted measures to address climate-related risks, continuously enhancing our resiliencein the low-carbon transition and driving the achievement of sustainable business goals.
◎ Climate-Related Risks, Opportunities and Financial Impacts
In this scenario, energy e?ciency improves signi?cantly, and coal and other high-carbon fossil fuels are graduallyphased out:
By ????, the sale of new fossil fuel boilers will be prohibited.By ????, electric vehicles will account for ??% of global car sales, and the annual installed capacity ofsolar and wind energy will reach ?,??? GW.By ????, the sale of new internal combustion engine vehicles will be halted.By ????, global electricity will achieve net-zero emissions, and coal and oil power plants withoutemissions reduction measures will be fully phased out.By ????, nearly ??% of global power generation will come from solar photovoltaic and wind energy.
"Working Guidance for Carbon Dioxide Peaking and Carbon Neutrality in Full and Faithful Implementation of theNew Development Philosophy" and the "Action Plan for Carbon Dioxide Peaking Before ????" are issued to peakcarbon dioxide emissions before ???? and strive to achieve carbon neutrality by ????.Committed to achieving carbon neutrality by ???? and issued the "Framework Act on Carbon Neutrality and GreenGrowth."Committed to achieving carbon neutrality by ???? and reaching net-zero emissions by ????.
ScenarioOverview
The Very Low GHG Emissions Scenario (Limit global temperature rise below ?.?°C )Reference
Model
IEA Net Zero Emissions by ???? Scenario (NZE)
The global energy sector to achieve net zero CO
? emissions by ????.The average global temperature increase is limited to within ?.?°C above pre-industrial levels.ScenarioDescription
Key Assumptions for the Very Low GHG Emissions Scenario
Application of the Very Low GHG Emissions Scenario
Climate Policy
Energy Usage
Macroeco-nomics
In this scenario, by ????, the global population is anticipated to reach around ?.? billion, with a trend of slowing
growth. The global economy is expected to grow at an average annual rate of ?.?%, but the growth rate will vary
across di?erent countries, regions, and time periods.In this scenario, the policy and regulatory environment is stringent. Countries around the world collaborate closely to drive theevolution and development of policies, aiming to reduce the costs of clean energy technologies, broaden the diversity of key mineralresources and clean energy technologies, and build a resilient global supply chain system. The transition risks faced by the companyreach their highest level, and therefore, a transition risk analysis is necessary under this scenario.
ThailandSouthKoreaMainlandChinaAsia
By ????, the EU aims to reduce net greenhouse gas emissions by at least ??% compared to ???? levels. By ????, theEU intends to achieve climate neutrality for its economy and society, with a goal of achieving negative emissionsafter ????. The EU has issued the "Fit for ??"package, the "Eco-design for Sustainable Products Regulation," the"European Green Deal," and the "European Climate Law," and has developed and implemented the Carbon BorderAdjustment Mechanism (CBAM).France has committed to achieving carbon neutrality in ????, with policies such as the "National Low-CarbonStrategy(SNBC)," the "National Climate Change Adaptation Plan," and the "Energy and Climate Law."The UK has pledged to achieve carbon neutrality by ????, with the "Climate Change Act ????" in place and theimplementation of the UK Carbon Border Adjustment Mechanism (UK CBAM).
UnitedKingdom(UK)FranceEuropeanUnion(EU)Europe
ScenarioOverview
The Very High GHG Emissions Scenario (The global temperature rise exceeds ?°C)
Reference
Model
IPCC Representative Concentration Pathway (RCP) SSP?-?.? ScenarioGlobal greenhouse gas emissions will continue to rise by the end of the ??st century.Compared to the period of ????-????, the global surface temperature is likely to behigher by ?.?°C to ?.?°Cover the period ????-????.ScenarioDescription
Key Assumptions for the Very High GHG Emissions Scenario
Application of the Very High GHG Emissions Scenario
SurfaceTemperature
In regions where the company operates, such as Asia and Europe, the annual average near-surface temperaturechanges are signi?cant. It is projected that the number of days with temperatures above ??°C will increasesubstantially in the future, while the number of days with temperatures below ?°C will also rise signi?cantly underthe very high GHG emissions scenario.
Sea LevelIn this scenario, sea levels in regions where the company operates, such as Asia and Europe, will continue to rise.In this scenario, the policy and regulatory environment is the most lenient. However, with the increase in global temperatures, morefrequent extreme weather events, changes in precipitation, and rising sea levels, the physical risks faced by the company are at theirhighest. Therefore, physical risk analysis is conducted under this scenario.
Value Chain Collaboration on Emissions Reduction
Collaborative emission reduction across the value chain is a key strategy for achieving full-chain decarbonization. Wework closely with suppliers, customers, and industry partners to actively promote upstream and downstream coopera-tion on carbon reduction. Together, we strive to lower the carbon footprint of the entire value chain and build a moreresilient and competitive low-carbon industrial ecosystem.Highlight | Green Supply Chain Management
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In this scenario, the policy and regulatory environment becomes more stringent. Multiple climate policies andcommitments have been announced in regions where the company operates, such as Asia and Europe:
Market
Short-term,Medium-term,and Long-term
Moderate ImpactGrowth in applications in ?elds such as new energy andconsumer electronics has opened up new marketopportunities for the company.Product innovation and brand building help the companysatisfy diversi?ed market demands, enhance customerloyalty, and increase market share.
Focus on deepening e?orts in three core areas — tungsten and molybdenum, energy newmaterials, and rare earths — while driving industrial innovation, aligning technologydevelopment with market demand, and ensuring robust R&D investment and a multi-di-mensional R&D system to strengthen breakthroughs in key core technologies and meetmarket needs for higher performance, greater safety, and higher energy e?ciencyproducts.Improve energy utilization e?ciency, reduce product carbon emissions, and enhance thesustainable competitive advantage of products through re?ned energy management,optimization of the energy structure, and the application of energy-saving andemission-reduction technologies.
Demand for products may ?uctuate due to technologicalsubstitution, market saturation, or a shift in consumerpreferences toward green and low-carbon products,thereby impacting revenue.The market is highly sensitive to the pricing of products;price ?uctuations may result in customer attrition ordeclining pro?t margins.
Changing Market Preferences
Short-term,Medium-term,and Long-term
Minor ImpactPromote the utilization of recycled resources toreduce reliance on raw materials.Optimize production processes to improveresource utilization e?ciency and lowersensitivity to raw material price ?uctuations.
Actively advance mine construction and development, achieving precise management andexploitation of mineral reserves, while securing long-term resource supply through variouscooperative models to strengthen resource security.Enhance the raw material supply chain management system, promote supply chain riskmanagement, and improve risk response measures.Expand domestic and international supply channels, improve resource recyclingtechnologies, broaden recycling ?elds and channels, and build an industrial ecosystem toenhance the capability for secondary production of metal resources.
The supply of mineral resources may be disrupted bygeopolitical risks, resource depletion, or environmentalprotection policies, a?ecting production.Fluctuations in raw material prices may lead to unstableproduction costs, impacting pro?t margins.
Raw Material Supply and Price Fluctuations
Reputation
Short-term,Medium-term,and Long-term
Minor ImpactActively promote green and low-carbon practicesand develop green and low-carbon products.Continuously increase investment in research anddevelopment to master core technologies,thereby enhancing product competitiveness.
Through continuous technological innovation, XTC has achieved multiple breakthroughsin the ?elds of tungsten and molybdenum, rare earths, and energy new materials,strengthening industry position and in?uence, and enhancing brand reputation.XTC has published annual Sustainability Report /ESG report for consecutive years,showcasing the e?orts and achievements in environmental protection, social responsibili-ty, and corporate governance.
Failure to meet expectations in greenhouse gas emissionsmanagement may trigger doubts among investors and thepublic regarding the company's strategic executioncapabilities, thereby damaging the company's reputation.Investment in technology research and development maynot yield the expected outcomes, or the application of newtechnologies may underperform, potentially impacting thecompany's technological leadership within the industry andadversely a?ecting brand reputation.
Negative Stakeholder Perception
Scenario Analysis | The Very Low GHG Emissions Scenario(Limit global temperature rise below ?.?°C )
Technology
Short-term,Medium-term,and Long-term
Moderate ImpactActively develop low-carbon and environmentally friendlyproduction technologies to align with global environmentaltrends.Drive technology iteration to enhance product quality andproduction e?ciency, reduce energy consumption andemissions, strengthen market competitiveness, and expandhigh-end market share.
Maintain an integrated industrial chain layout, closely monitor trends in the tungsten-mo-lybdenum, energy new materials, and rare earth sectors, and ?exibly adjust productportfolios based on technological shifts, capacity changes, and market and customerdynamics along the industry chain, focusing more on high value-added businesses.Further clarify the product and market positioning of each production site based onadjustments of previous product structure, optimize resource allocation, improve re?nedmanagement, and promote product upgrades, transformation, and structural adjustmentsacross all sites to boost production e?ciency and product added value.
With growing global emphasis on green and low-carbontechnologies, companies face signi?cant pressure fortechnological upgrades. Failure to promptly adopt newtechnologies may lead to lower production e?ciency, highercosts, and even loss of market competitiveness.Continuous R&D investment is required for technologicalinnovation. Insu?cient investment may cause missedopportunities for upgrades and impact long-term develop-ment.
Industry Technology Iteration
Policy and Law
Short-term,Medium-term,and Long-term
Moderate ImpactReduce carbon emissions to earn carbon credits, whichcan be sold in carbon markets to generate additionalrevenue.Develop and innovate products certi?ed as green andlow-carbon to attract environmentally consciousconsumers and investors.
Actively implement a series of emission reduction measures aligned with carbon neutralitycommitments and emission reduction targets, including enhancing energy e?ciency inhigh-consumption equipment, promoting electri?cation upgrades, increasing theproportion of clean energy use, and o?setting emissions through carbon trading.Strengthen energy management by introducing advanced equipment, optimizingproduction processes, and adopting energy-saving technologies; gradually phase outhigh-energy-consuming equipment; accelerate electri?cation upgrades at productionsites; promote the application of clean energy such as photovoltaic and wind power;increase the share of renewable energy; optimize the energy mix; and reduce reliance ontraditional fossil fuels.
Increasingly stringent regulations on greenhouse gasemissions across countries. Failure to comply with relevantregulations may result in ?nes, production restrictions, orother sanctions, a?ecting operations.Rising carbon emission costs increase production expensesand compress pro?t margins.
Pressure from Greenhouse Gas Emission Regulations
Risk TypeRisk DescriptionOpportunityMitigation MeasuresImpact DurationFinancial Impact
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[ ? ] The impact duration is categorized into short-term, medium-term, and long-term. Short-term generally refers to within one year (inclusive) afterthe end of the sustainability information reporting period. Medium-term generally refers to one to ?ve years (inclusive) after the end of the sustainabil-ity information reporting period. Long-term generally refers to more than ?ve years after the end of the sustainability information reporting period.
[ ? ] The ?nancial impact is classi?ed as minimal, minor, moderate, major, or severe. Minimal impact refers to an e?ect of less than RMB ? million onmonetary value (e.g., revenue) or less than ?% on net pro?t. Minor impact refers to an e?ect between RMB ? million and RMB ? million on monetaryvalue (e.g., revenue) or between ?% and ?% on net pro?t. Moderate impact refers to an e?ect between RMB ? million and RMB ?? million on monetaryvalue (e.g., revenue) or between ?% and ??% on net pro?t. Major impact refers to an e?ect between RMB ?? million and RMB ?? million on monetaryvalue (e.g., revenue) or between ??% and ??% on net pro?t. Severe impact refers to an e?ect exceeding RMB ?? million on monetary value (e.g.,revenue) or more than ??% on net pro?t.
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Scenario Analysis | The Very High GHG Emissions Scenario (The global temperature rise exceeds ?°C)
Acute Physical
Risks
Short-term,Medium-term,and Long-term
Minor Impact
Continuously enhance extreme weather monitoring by leveraging satellite data,meteorological platforms, and regional early warning systems to promptly identify riskssuch as typhoons, heavy rainfall, storm surges, and ?oods. Establish early warningmechanisms, optimize production planning, and adjust supply chain schedulingaccordingly. For typhoon-prone regions in Asia, develop seasonal stockpiling plans for rawmaterials and critical components, and optimize inventory distribution in key areas tomitigate supply chain disruptions and ensure stable operations.Enhance the disaster resilience of plants and key infrastructure by reinforcing structures atcoastal production facilities, warehouses, and logistics hubs in Asia. Optimize windproof-ing and waterproo?ng measures, and construct drainage and protective systems in areaswith high ?ood risk. Before the arrival of typhoons or heavy rainfall, proactively relocatevulnerable inventory and optimize warehouse layouts to improve resilience against stormsurges and ?ooding, thereby reducing the risk of asset loss.Strengthen the emergency management system by enhancing the EnvironmentalEmergency Response Plan and regional emergency response mechanisms. Develop tieredresponse strategies for typhoon, heavy rainfall, and ?ood risks to ensure tailored measuresfor di?erent regions and business scenarios. Regularly conduct disaster response drills inbusiness areas to improve employees' emergency response capabilities, and encouragesupply chain partners to establish their own disaster response systems to enhance overallsupply chain resilience and ensure continuity of operations.
Asia: Typhoons causing strong winds, heavy rainfall, storm surges, and ?oods pose serious threats to the safety ofbuildings, production facilities, and inventories. Floods can also damage urban infrastructure and impact humanwell-being and health, particularly in coastal cities and residential areas.Europe: Coastal and inland ?ooding due to extreme weather events may pose major threats to public safety, economicdevelopment, and infrastructure stability, and could lead to supply chain disruptions, asset damages, and operationalinterruptions.
Floods and Typhoons
Short-term,Medium-term,and Long-term
Moderate Impact
Reasonably adjust employee working hours during extreme high-temperature weather.Reduce outdoor work and high-intensity physical labor, implement shift systems, or avoidworking during the hottest periods to reduce health risks caused by high temperatures.Strengthen heatstroke prevention measures, provide su?cient protection and hydrationfor personnel working in high-temperature environments, and ensure employee healthand safety.Improve temperature management in production workshops and storage facilities. Inareas where product quality is susceptible to high temperatures, increase temperaturecontrol systems, install insulation materials, and optimize air?ow solutions to ensurestable storage conditions for key raw materials and ?nished products, thereby minimizingproduct loss caused by temperature ?uctuations.Optimize o?ce environments based on regional climate characteristics, increase naturalventilation, install shading systems, and implement energy-saving designs to reduce airconditioning energy consumption and enhance indoor comfort.
Asia: The region may experience more frequent extreme temperature variations, changes in rainfall patterns, andprolonged droughts, impacting agricultural production, freshwater resource availability, and ecosystem stability. Foodand water security are at risk.Europe: Due to global warming, the frequency and intensity of extreme heat events may continue to rise, posing seriousthreats to public health. High temperatures could lead to an increase in heat-related illnesses and mortality, especiallya?ecting the elderly, individuals with chronic diseases, and outdoor workers. Extreme temperatures may also increaseenergy demand, leading to higher grid loads, and present challenges for agriculture, forestry, and urban infrastructureoperations.
Extreme Weather
The impact duration is categorized into short-term, medium-term, and long-term. Short-term generally refers to within one year (inclusive)after the end of the sustainability information reporting period. Medium-term generally refers to one to ?ve years (inclusive) after the endof the sustainability information reporting period. Long-term generally refers to more than ?ve years after the end of the sustainabilityinformation reporting period.The ?nancial impact is classi?ed as minimal, minor, moderate, major, or severe. Minimal impact refers to an e?ect of less than RMB ?million on monetary value (e.g., revenue) or less than ?% on net pro?t. Minor impact refers to an e?ect between RMB ? million and RMB ?million on monetary value (e.g., revenue) or between ?% and ?% on net pro?t. Moderate impact refers to an e?ect between RMB ? millionand RMB ?? million on monetary value (e.g., revenue) or between ?% and ??% on net pro?t. Major impact refers to an e?ect between RMB?? million and RMB ?? million on monetary value (e.g., revenue) or between ??% and ??% on net pro?t. Severe impact refers to an e?ectexceeding RMB ?? million on monetary value (e.g., revenue) or more than ??% on net pro?t.
[ ? ][ ? ]
Risk TypeRisk DescriptionMitigation MeasuresImpact DurationFinancial Impact
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ChronicPhysical Risks
Medium-term andLong-term
Minor Impact
Strictly control project site selection and avoid business expansion in nature reserves,ecologically sensitive areas, and regions with high ecological value to minimize ecosystemdisruption.Develop phased ecological restoration plans for mining areas, implementing revegetation,land reclamation, and soil and water conservation measures to restore vegetation coverand reduce soil erosion.Establish an ecological monitoring system to regularly track biodiversity changes inoperational facilities and surrounding areas. Utilize a combination of remote sensingtechnology and ?eld surveys to identify regional ecological degradation trends anddevelop conservation and intervention measures tailored to di?erent ecologicalenvironments. This will ensure that the impact of mining and industrial facilities on thelocal ecosystem is minimized.
Asia: Key species and ecosystems are at risk of accelerated loss, which could lead to the degradation of ecosystemfunctions, including soil fertility decline, disrupted water cycles, and weakened regional climate regulation capabilities.The degradation of forest and wetland ecosystems may impair water retention capacity, increasing ecological vulnerabil-ity to droughts and extreme rainfall. This poses a long-term threat to agricultural productivity and biodiversity.Europe: Both marine and terrestrial ecosystems are facing severe impacts from climate change. Extreme temperatures,changing precipitation patterns, and ocean acidi?cation may result in biodiversity loss and reduce the natural regulatorycapabilities of ecosystems. Coastal erosion, wetland degradation, and forest ecosystem imbalances may further threatenregional ecological security.
Biodiversity Loss and Habitat Displacement
Short-term,Medium-term,and Long-term
Minor ImpactContinuously optimize production processes and advance the application of water-e?-cient technologies to reduce industrial water demand and increase wastewater recoveryand recycling rates.Regularly conduct water resource risk assessments and reinforce water sustainabilityconsiderations in site selection and investment decisions, avoiding business expansion inwater resource protection areas.Regularly provide water conservation training for employees, promote e?cient water-sav-ing measures, and improve water usage e?ciency.
Asia: Drought, high temperatures, and abnormal precipitation may impact agricultural production, reducing crop yieldsand exacerbating freshwater shortages, further threatening industrial and residential water demands. Long-term waterresource scarcity may disrupt ecosystem stability, a?ect agricultural irrigation, industrial water usage, and drinkingwater supplies, and increase regional environmental vulnerability.Europe: The combined e?ect of extreme high temperatures and dry conditions may accelerate the loss of surface andgroundwater, decreasing the available water resource reserves.
Droughts
Medium-term andLong-term
Moderate ImpactActively promote ecological protection and risk prevention by implementing vegetationrestoration and protection projects, such as a?orestation, windproo?ng, and sand-?xatione?orts. These actions aim to improve soil structure and surface stability, reducing thelikelihood of landslides and other geological hazards.Establish a comprehensive landslide monitoring and early warning system using remotesensing technology, meteorological monitoring data, and geological assessments to trackgeological changes in real time, thereby enhancing early warning capabilities.
Asia: Due to geological instability, soil erosion, and long-term crustal movement, there is a risk of damage to buildings,infrastructure, and the potential loss of life and property. Landslides and ground subsidence may damage roads,railways, and other transportation routes, a?ecting normal transportation operations. They may also exacerbate safetyhazards in mountainous and valley regions, threatening the stability of supply chains and logistics.Europe: Changes in geological conditions may lead to frequent landslides, mud?ows, debris ?ows, and other disasters,posing direct threats to the safety of residents and production activities. Geological structures in mountainous andcoastal areas may further deteriorate due to soil looseness, groundwater in?ltration, or intensi?ed human activities,leading to infrastructure damage and a?ecting urban planning, agricultural production, and the normal operation oftransportation networks, thereby increasing long-term economic and social security risks.
Landslides
Medium-term andLong-term
Minor Impact
Prior to making new investments or construction in low-lying or sea-level rise-prone areas,conduct a detailed climate adaptation assessment, considering the long-term impacts ofsea level rise on infrastructure, logistics, and the environment. For existing assets at risk,evaluate the feasibility of relocation or reconstruction and implement engineeringmeasures such as reinforcement, foundation elevation, and ?ood barriers to mitigate thepotential impacts of extreme weather and coastal erosion, ensuring the stability of coastalproduction facilities.Optimize supply chain layout to reduce the impact of potential logistics disruptions, rawmaterial shortages, and rising transportation costs due to sea level rise. Expand inland andmulti-regional supply channels to diversify the supply chain, reduce dependence oncoastal transport and single suppliers, and enhance the climate risk early warning system.This will ensure quick response capabilities during extreme weather events, improvingoperational continuity and resilience to risks.
Asia: Coastal ?sheries may be signi?cantly reduced due to rising sea levels, with the ?shing economy potentiallyimpacted by changes in marine ecosystems. Some regions may experience reduced precipitation and rising tempera-tures, a?ecting agriculture and water supply. Intensi?ed ocean warming and acidi?cation could lead to frequent coralbleaching, resulting in the degradation of coral ecosystems and disrupting the marine food chain.Europe: Coastal economies and infrastructure face heightened risks from rising sea levels, with ports, transportationnetworks, and coastal industries at risk of being impacted by extreme weather events and coastal erosion.
Sea Level Rise
[ ? ] The impact duration is categorized into short-term, medium-term, and long-term. Short-term generally refers to within one year (inclusive) afterthe end of the sustainability information reporting period. Medium-term generally refers to one to ?ve years (inclusive) after the end of the sustainabil-ity information reporting period. Long-term generally refers to more than ?ve years after the end of the sustainability information reporting period.
[ ? ] The ?nancial impact is classi?ed as minimal, minor, moderate, major, or severe. Minimal impact refers to an e?ect of less than RMB ? million onmonetary value (e.g., revenue) or less than ?% on net pro?t. Minor impact refers to an e?ect between RMB ? million and RMB ? million on monetaryvalue (e.g., revenue) or between ?% and ?% on net pro?t. Moderate impact refers to an e?ect between RMB ? million and RMB ?? million on monetaryvalue (e.g., revenue) or between ?% and ??% on net pro?t. Major impact refers to an e?ect between RMB ?? million and RMB ?? million on monetaryvalue (e.g., revenue) or between ??% and ??% on net pro?t. Severe impact refers to an e?ect exceeding RMB ?? million on monetary value (e.g.,revenue) or more than ??% on net pro?t.
Risk TypeRisk DescriptionMitigation MeasuresImpact DurationFinancial Impact
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We carry out carbon inventory in accordance with the ISO ?????-?:???? standard, based on the principle of operationalcontrol, covering all operational activities and facilities of our domestic and overseas production sites.◎ GHG Emissions Management
Operational Boundaries
We have established the operational boundaries for our ???? greenhouse gas (GHG) inventory to include: Scope ? —direct GHG emissions; Scope ? — energy indirect GHG emissions; and selected Scope ? — other indirect GHG emissions.During the reporting period, our subsidiary, XWXN, independently conducted its GHG inventory. The operationalboundaries for its ???? GHG inventory encompass: Scope ? — direct GHG emissions; Scope ? — energy indirect GHGemissions; and Scope ? — indirect GHG emissions associated with transportation, products consumed by the company,and emissions related to the use of the company's products.
Calculation Method
We calculated our carbon emissions data in accordance with the ISO ?????-?:???? standard, primarily using a calcula-tion-based approach. Emissions were determined based on the formula "activity data × emission factor," supplement-ed by the use of emission coe?cients and material balance methods. Calculations for di?erent emission sources wereconducted following the ???? IPCC Guidelines for National Greenhouse Gas Inventories. Emissions related to energyconsumption were calculated in accordance with the General Rules for Calculation of the Comprehensive EnergyConsumption (GB/T ????-????) and the ???? regional grid average carbon emission factors published by the Ministry ofEcology and Environment of China. For overseas operations, local grid emission factors were adopted. All greenhousegas emissions data were ultimately converted into CO
?e based on the Global Warming Potentials (GWP) provided in theIPCC Sixth Assessment Report (AR?), expressed in metric tons per year, to ensure the scienti?c validity and internationalcomparability of the results.
GHG TypesOur greenhouse gas emissions inventory covers seven types of gases, including carbon dioxide (CO?), methane (CH?),nitrous oxide (N?O), hydro?uorocarbons (HFCs), per?uorocarbons (PFCs), sulfur hexa?uoride (SF?), and nitrogentri?uoride (NF?).
During the reporting period, the total greenhouse gas emissions from Scope ? and Scope ? reached ???,???.?? tCO
?
e, withScope ? accounting for the largest share, contributing ??.??% due to the use of purchased energy. Due to businessexpansion, the consumption of natural gas, diesel, and coal increased compared to ????, resulting in a rise of ?,???.??tCO?e in Scope ? emissions. Additionally, the increase in electricity consumption led to a rise of ???,???.?? tCO
?e in Scope? emissions compared to last year. The increase in Scope ? greenhouse gas emissions is mainly due to adjustments in theaccounting boundaries and the expansion of emission types. This change primarily stems from the improvement in Scope? reporting criteria, rather than a signi?cant increase in actual emissions. Overall, the total greenhouse gas emissionsincreased by ?,???,???.?? tCO
?e compared to ????, primarily driven by business growth.???? GHG Emissions
Year
Scope ?Emissions（tCO?e）
Scope ?Emissions（tCO?e）
Total Scope ?and Scope ?
Emissions（tCO?e）
Scope ?Emissions（tCO?e）
Emission Intensity（tCO?e/hundredmillion RMB ofoperating revenue）????????????????
???,???.?????,???.????,???.????,???.??
???,???.?????,???.?????,???.?????,???.??
???,???.?????,???.?????,???.?????,???.??
?,???,???.???,???,???.??
//
?,???.???,???.???,???.???,???.??The above Scope ? emissions refer to indirect greenhouse gas emissions from purchased energy, based on a market-based approach.Note
Greenhouse Gas Emissions
???,???.?????,???.?????,???.??
???,???.?????,???.?????,???.?????,???.?????,???.?????,???.??
?
????????????????
???,???.??
???,???.??
???,???.??
??,???.??
??,???.?????,???.??
???,???.??
???,???.??
???,???.??
???,???.??
Scope ? (tCO
?e)Scope ? (tCO
?
e)Emission Intensity
(tCO?e/hundred million RMB ofoperating revenue)
GHG Emissions
?,???.???,???.???,???.???,???.?????.???
?,???.??
?,???.?????,???.??
?,???.??
Unit：tCO
?
eUnit：tCO
?e /hundred-million RMB of operating revenue
790,649.07
?,???.??
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
We view energy management as a core pillar of our low-carbon development. We have established and continuouslyoptimized our energy management system, setting annual energy targets that are incorporated into the performanceevaluations of the general manager and management teams. Through a system of accountability, we translate energytargets into speci?c actions for each department and production process, monitor progress on a monthly basis, andcontinuously enhance energy e?ciency and optimize our energy structure.
Energy Usage
During the reporting period, our total energy consumption was ???,???.?? tons of coal equivalent, an increase of??,???.?? tons compared to ????, mainly due to business growth.In our energy structure, electricity is the primary energy source and accounts for approximately ??.??% of total energyconsumption. At present, thermal power represents about ??.??% of our electricity usage, while clean energy sourcessuch as wind power, solar power, hydropower, and nuclear power make up approximately ??.??%.
◎ Energy Consumption
???? Energy Consumption Structure
Energy Type????????
Comprehensive EnergyConsumption in ???? (tons of coal equivalent)
Comprehensive EnergyConsumption in ????(tons of coal equivalent)
EnergyConsumptionShare in ????(%)?,???,???,???.??
???,???.????,???,???.???,???,???.???,???.?????,???.???,???.??
?,???,???,???.??
???,???.????,???,???.???,???,???.??
?,???.??
???,???.????,???.??
???,???.?? ??,???.?? ??,???.??
?,???.?? ?,???.?? ???.?? ?.??
???,???.????,???.????,???.??
?,???.???,???.??
???.??
??.??
Total???,???.?????,???.??
??.????.????.???.???.???.???.?????.??
???? Energy Consumption by Source
Electricity ■Steam ■Natural gas ■Diesel ■Coal ■Gasoline ■Lique?ed petroleum gas ■
???? Electricity Consumption by Source
Thermal power ■Nuclear power ■Wind power ■Hydropower ■Photovoltaic power ■
53.08%
24.53%
8.73%
8.96%
Electricity（kWh）Steam（t）Natural Gas（m?）Diesel（L）Coal（t）Gasoline（L）Lique?ed Gas（kg）
?.??%
??.??%??.??%
??.??%
?.??%
??.??%??.??%
??.??%
?.??%
?.??%
?.??%?.??%
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
Our key production enterprises have all developed an "Energy Management System" and are continuously improvingthe energy management system. During the reporting period, a total of ?? subsidiaries passed the ISO ????? energymanagement system certi?cation, covering ??% of the production enterprises.
◎ Energy Management
◎ Energy Conservation and Emission Reduction
MiningOperations
At Ninghua Xingluokeng, we have developed the "Energy Metering Management Regulations" to strengthenenergy metering management and improve energy e?ciency. In addition, we have established an energy meteringmanagement working group, with clearly de?ned roles and responsibilities, aimed at promoting the orderlyimplementation of energy metering management and providing data support for the company's energy manage-ment strategy.
DeepProcessing
We strictly adhere to energy management regulations and, in accordance with ISO ????? standards, havedeveloped policies such as the "Energy Management System," "Energy Management Manual," and "Energy ReviewManagement Regulations." Focusing on lean production, we optimize manufacturing processes, integratingautomation and digital technologies to enhance the operational e?ciency of large-scale production. At the sametime, we continuously reduce energy consumption and promote the in-depth implementation of the InternationalAdvanced Manufacturing (IAM) management system.Secondary Resource Utilization
In GANPOWER, we regularly conduct internal energy audits and data monitoring to clarify the company’s energyconsumption structure and major energy-consuming equipment. We have installed meters on production lines ando?ce areas to record energy usage data and established a monthly energy usage ledger.
AdvancedMaterials Production
At our molybdenum production base in Chengdu, we havedeveloped and issued the " Organizational Structure and Responsibil-ities of Energy Management," establishing an energy managementorganization led by the company's general manager, with departmentheads as members. We have also established the "Energy Manage-ment System," which outlines regulations for the economic operationof distribution transformers, energy use management, energystatistics management, and metering equipment management.Additionally, we have built an online energy monitoring andmanagement system to ensure e?cient use of energy.At our rare earth material production base in Changting, we implement a monthly energy management system.We have promoted strategies such as staggered electricity usage and established a competition mechanism amonginternal departments to encourage continuous optimization and improvement of energy e?ciency. To further reduceelectricity costs, we introduced a peak-valley ratio model and adjusted the cost allocation rules based on this model.This cost incentive mechanism promotes both cost reduction and e?ciency improvement. As a result of thesemeasures, the overall peak-valley ratio has shown a downward trend, decreasing from ?.?? in ???? to ?.?? in ????.At our battery materials production base, we have established policies such as the "Energy ManagementRegulations" and the "Energy Management Manual" and set up an energy management structure centered around theenergy-saving leadership team, with the general manager as the team leader and the deputy general manager as thedeputy leader. We incorporate the energy consumption per unit product into the performance evaluation system ofrelevant departments and their responsible personnel, and break down this goal into speci?c tasks for eachdepartment to ensure the achievement of energy-saving targets. The company conducts an annual energy manage-ment review, tracks the implementation of previous management review decisions and internal audits, and forms a"Management Review Report." We assess the appropriateness, compliance, adequacy, and e?ectiveness of the energymanagement system, thoroughly analyze the reasons for any decline in energy performance or unmet goals, and takecorrective actions promptly.
At Luoyang Yulu, we have implemented waste heat recovery on three ???kW air compressors. By using a plate heatexchanger to utilize the compressed heat energy to heat the boiler, we have replaced the traditional steam heatingmethod, reducing natural gas consumption by approximately ?.?? million cubic meters per year. In addition, we haveadopted intelligent scale prevention technology to replace manual descaling, reducing equipment maintenance. Theentire system maximizes the utilization of waste heat while ensuring the safe operation of the air compressors, simulta-neously reducing steam consumption and the dual costs of compressor cooling, achieving both energy conservationand emission reduction.
At molybdenum production base in Chengdu, we have implemented the following measures to achieve energyconservation and emission reduction:
We have adopted a continuous closed-loop process, reducing the product's online dwell time, improvingequipment e?ciency, and lowering the energy consumption per unit of product.
Energy-savingmeasures for
HVACEnergy-savingmeasures for power gases
Energy-savingmeasures forprocess equipment
Energy-saving
measures forwater supply and
drainage
During the architectural design phase, we fully considered natural factors such as lighting, climate, and winddirection to ensure that rooms have good orientation and ventilation. We have carried out energy-savingdesigns for o?ce buildings, rest areas, and guardhouses according to the "Designing Standard for EnergyE?ciency of Public Buildings" (GB?????-????). Energy-saving designs for the workshop buildings were carriedout according to the "Uni?ed standard for energy e?ciency design of industrial buildings " (GB?????-????) forCategory II industrial buildings.
Energy-saving measures for siteand building design
We use high-performance rubber and plastic materials for air duct insulation to minimize energy loss. Theair conditioning room temperatures are set reasonably to e?ectively reduce air conditioning energyconsumption.
We have selected energy-e?cient products for the valves and accessories in the pump's inlet and outlet pipelines.The cooling tower fans use variable frequency drive technology, and we utilize the backwater pressure to pushthe water into the cooling tower, reducing the energy consumption of the cooling water system.We have selected high-e?ciency energy-saving boilers, with boiler e?ciency levels not lower than the Grades? speci?ed in current industry standards "Minimum allowable values of energy e?ciency and energy e?ciencygrades of industrial boilers" (GB ?????-????), and a design thermal e?ciency of no less than ??%. Additionally,we have enhanced the insulation measures for boilers and steam pipelines using high-quality insulationmaterials to reduce heat energy loss.
Energy-saving
measures forelectrical systems
The wire cross-section for overhead lines and cable lines is selected based on economic current density,reducing energy losses during power transmission.The workshop's transformer station is located near the center of electricity consumption, with largepower-consuming stations placed close to the transformer and distribution stations to minimize energy loss.Lighting standards and power density values strictly follow the "Standard for Lighting Design of Buildings"(GB?????-????), and natural light is combined with indoor arti?cial lighting to save electricity consumption.For areas with outdoor lighting, light sensors automatically adjust the indoor lighting based on changes inilluminance.High-e?ciency, energy-saving T? ?uorescent lamps are used for electrical lighting, with LED lighting used incorridors, stairways, landscape lighting, and street lamps. O?ces use LED ?at-panel lights, and meeting roomsare equipped with LED ?at-panel lights and additional lighting strips for assistance.
At GANPOWER, we recover ?ue gas and waste heat from boilers to increase waste heat utilization. We have alsoinstalled insulation materials on steam pipelines to reduce heat loss, achieving more e?cient energy use.
Mining Operations
Secondary Resource Utilization
Advanced Materials Production
At the tungsten and molybdenum wire production base in Xiamen, we have designed energy-e?cient combustionchambers for gas heating furnaces and applied them to equipment such as wire drawing machines. This has improvedcombustion e?ciency, reduced energy consumption, and achieved a natural gas saving rate of approximately ?????%.At the cutting tool body and handle production base, we have implemented the following measures to achieve energyconservation and emission reduction:
Turn o? lighting in all areas except productionzones and personnel passageways.Installsolar panels in parts of the plant for self-generated lighting power.
Leverage natural rooftop lighting in precisionmachining workshops to maintain indoor brightness.Install sound-activated switches for dormitorycommon areas to eliminate the problemof lights being left on unnecessarily.
Deep Processing
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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????Sustainability Report
Water resource conservation is a key component of our environmental responsibility. We have issued an EnvironmentalProtection Statement and are actively ful?lling our responsibilities in preserving aquatic ecosystems. In our businessoperations, we have adopted water-saving technologies and equipment, signi?cantly reducing water consumptionduring production. We implement full-process monitoring and control of water usage to continuously improve wateruse e?ciency. Through technological innovation, we recycle and reuse wastewater, greatly reducing the intake of freshwater and promoting the sustainable use of water resources. Meanwhile, we actively participate in watershed protectioninitiatives and support local water environment improvement projects, striving to build a harmonious relationshipbetween humans and water.
Usage of Water Resources
We strictly comply with the Environmental Protection Law of the People's Republic of China, the Water Law of thePeople's Republic of China, the Water Pollution Prevention and Control Law of the People's Republic of China, andother relevant laws and regulations. To strengthen water resource management, we have established a series ofinternal policies, including the Environmental Protection Management System, the Basic Environmental ProtectionStandards, and the Water Resource Management Statement. These frameworks guide our e?orts to meet businessneeds while striving for the sustainable management of water resources.
◎ Water Resource Management
At Ninghua Xingluokeng, we have established a comprehensive water recycling system that includes the PlantReturn Water System, Tailings Pond Return Water System, Seepage Collection Pool Return Water System, andWastewater Discharge Treatment System. These integrated systems enable ???% recycling of water used inmineral processing operations.
During the reporting period, we recorded a water consumption of ?,???,???.?? cubic meters, the water useintensity was ?,???.?? cubic meters per hundred-million RMB in revenue.◎ Water Consumption
The Plant Return Water System
The Plant Return Water System mainly consists of one ??-meter thickener and two ??-meter thickeners. After clari?ca-tion, the over?ow water is collected and pumped into a ?,???-cubic-meter plant return water tank for recycling across theentire facility.
The Seepage Collection Pool Return Water System
The Seepage Collection Pool Return Water System collects initial dam seepage, surface drainage, and catchment fromthe tailings pond. This water is stored in a??thousand-cubic-meter seepage collection pool, pumped to the high-leveltailings water tank, and subsequently recycled in the concentrator.
The Tailings Pond Return Water System
The Tailings Pond Return Water System treats tailings wastewater through ?occulation, neutralization, self-puri?cation,aeration, adsorption, and sedimentation processes. The clari?ed water then ?ows back to the concentrator via siphon pipesfor reuse.
In residential areas, underground drainage ditches collect domestic sewage, which ?ows into sewage tanks. Afterharmless treatment through underground facilities, the treated water enters the tailings system for recycling;
Wastewater from the tailings pond is transported via the return water system to the high-level tank at the concentratorand reused in production. After aeration and sedimentation, the water undergoes COD degradation and pH neutraliza-tion before being discharged in compliance with standards, achieving a wastewater recycling rate of over??%;
By optimizing ore extraction techniques, we ensure that???% of mine in?ow water is recovered and reused.
In Duchang, our mine wastewater recycling rate exceeds ??%, and ???% of mine in?ow water is recovered and reused. We haveestablished an e?cient wastewater management system and sewage treatment facilities to promote the integrated use of bothindustrial and domestic wastewater:
Domestic sewage treatment and recycling
Mine in?ow water management and recovery
Tailings pond wastewater recycling
At the same time, we actively participate in the River Chief System initiated by the Ninghua County Government by serving as acorporate river chief, promoting river protection and management, and jointly safeguarding local water resources:
Strictly implements the Corporate River Chief Inspection System to standardize inspection procedures, ensuring earlydetection, early intervention, and early resolution of water pollution issues;Carries out weekly inspections, with increased inspection frequency for river sections prone to problems;Maintains a River Chief Log, documenting detailed records of river surface waste, potential obstructions, illegal structuresalong the riverbanks, abnormal water conditions, and any signs of ecological damage.
Mining Operations
Water Consumption
Water Consumption(m
?)Water Use Intensity
(m
?/hundred-million RMB ofoperating revenue)
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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????Sustainability Report
?,???,???.???,???,???.???,???,???.???,???,???.???,???,???.??
?.??
????????????????
?,???.??
?,???,???.??
?,???,???.??
?,???,???.???,???,???.??
?,???.??
???,???.??
?,???,???.????,???.????,???.????,???.???,???.???,???.???,???.???,???.???.??
??,???.??
?,???.??
In the ion exchange process, we achieved a breakthrough in technology and process improvement, shifting fromlow-concentration to high-concentration adsorption. This reduced water consumption per ton of APT produced from ??tto ??t, saving approximately ???,???t of water annually, e?ectively improving water resource utilization e?ciency;
At our tungsten smelting base in Longyan, we optimize production processes and establish a reclaimed water reusesystem. By recycling internal wastewater and spent acid within the process, we achieve water resource recycling andreduce the consumption of fresh water.At our tungsten smelting production base in Wenshan, Yunnan, we actively explore ammonia nitrogen treatmentand have introduced advanced steam stripping technology. By replacing the original stripping tower with a steamstripping tower, we enhance the ammonia removal e?ciency of ammonia-containing intermediate materials, enablingthe recovery and recycling of ammonia water. With this technology, we achieve an overall water saving of ?m? per ton ofAPT produced, while also e?ectively improving the internal workshop environment and reducing the ammonia nitrogencontent in the discharged wastewater.At our molybdenum production base in Chengdu, we have established a Water Conservation and EmissionReduction O?ce, which has formulated several water conservation management systems, including the "WaterConservation Work O?ce Meeting System," "Planned Water Use Management System," "Water Saving ManagementSystem," and "Water Metering Management System." Regular water conservation work meetings are held, and westrictly implement water conservation planning with annual and monthly assessments for all departments. We alsoactively promote water conservation and emission reduction, encourage the adoption of new water-saving technolo-gies, and summarize water-saving experiences to continuously enhance employees' awareness of water conservation.We use resin exchange adsorption to remove calcium and magnesium ions, which are prone to scaling, from theincoming water. Additionally, we have installed mechanical ?lters and ion stick water treatment devices to eliminatesuspended solids and algae from the circulating water, preventing pipeline blockages. Furthermore, we have replacedall severely scaled pipes and blocked cooling system interfaces. These technical improvements have reduced scaling incirculating water pipes and equipment, extended the service life of the equipment, and improved the cooling e?ciencyof water. As a result, we have achieved energy savings and reduced the use of cooling water, cutting down on freshwater consumption by approximately ??,??? tons per year.
At our tungsten smelting production base in Haicang, we ensure comprehensive water resource protectionthrough measures such as technological innovation, hazard monitoring, and water conservation education:
Technological innovation
As a key soil-regulated enterprise at the municipal level, we strictly implement soil and groundwater monitoring and riskprevention responsibilities. We conduct self-monitoring and hazard identi?cation annually, collaborating with third-partyorganizations to develop the "Soil and Groundwater Self-Monitoring Plan" and "Soil and Groundwater Hazard Identi?ca-tion Report," both of which have been reviewed by experts;Hazard monitoring
We actively promote water conservation through channels such as the OA platform, WeChat public account, and bulletinboards. Water-saving signs are posted at water points in the plant to raise employees' awareness of water conservation.We regularly hold "Water Conservation with Me" themed meetings to deepen employees' water-saving education anddistribute promotional materials during World Water Conservation Week to further promote water-saving concepts.Water conservation education
Ion Exchange ResinSoftening Equipment
Circulating Water PoolFreshWater
Mechanical Filters
Cooling Tower
Various Production
Equipment
Ion Rod WaterTreatment Device
At the rare earth materials production base in Changting, we established a water-saving leadership team with adedicated water-saving management o?ce. The team is responsible for formulating water-saving management systemsand targets, conducting technical renovations of water-saving equipment, and promoting the management ofwater-saving enterprises. We have developed several water-saving management systems, including the "SimultaneousImplementation of the 'Three Simultaneous' and 'Four in Place' Management System," the "Water-Saving Work MeetingSystem," and the "Water-Saving Administrator Job Responsibility System." Every month, we analyze water usagestatistics for each department and conduct at least one supervision checks of water facilities every week to identify andrectify abnormal water usage. This helps us detect and solve potential problems and waste in a timely manner, ensuringthe rational use of water resources. In addition, we have implemented water-saving measures in all new, renovated, andexpanded projects, ensuring that water-saving facilities are designed, constructed, and put into use simultaneously withthe main project. We strictly adhere to the requirements of "Water Usage Plan in Place, Water-Saving Targets in Place,Water-Saving Measures in Place, and Water Management System in Place" in our daily water-saving management.In addition, we have implemented a high-e?ciency circulating water system to provide cooling water for ?? equipmentunits in the magnet production process. The system consists of six ??KW cold water pumps, six ??KW hot water pumps,six ?.?KW cooling fans, cold and hot water tanks, over?ow devices, and an automatic control system. During operation,the cold water pumps supply cooling water to the equipment according to the set pressure. The heated water thennaturally ?ows into the hot water tank, from where it is pumped through the hot water pump to the spray tower forcooling treatment, before returning to the cold water tank for recycling. Moreover, the number of cooling fans inoperation is automatically calculated by the PLC control module based on feedback from the temperature sensors inthe cold water tank, optimizing energy savings. By using this system, we can achieve an annual water saving of approxi-mately ??,???,???m?. Currently, all cooling water for our equipment comes from the circulating water system, with arecycling rate of up to ??%.
Circulating Cooling Water System Renovation Process
Wastewater Treatment Equipment
Advanced Materials Production
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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At GANPOWER, we make full use of the region's abundant water resources by collecting rainwater based on local conditions andreusing it in production, e?ectively reducing the consumption of fresh water.
Xiamen Honglu promotes water conservation and circular resource use in its production processes by recyclingstring-casting cooling water and general cooling water, thereby reducing water consumption intensity. To addresswastewater discharge from the ?lament workshop's cleaning processes, the company organized relevant personnel toevaluate the feasibility of water reuse. As a result, a reclaimed water reuse system with a daily capacity of ??? tons wasestablished in the ?lament workshop, achieving a reuse rate of over ??%.
At our battery materials production base, we actively promote improvements and innovations in waterresource management measures, strengthen water resource protection, enhance water utilization e?ciency, andaim to build a water-saving enterprise. We have formulated the "Resource and Energy Conservation ManagementRegulations" to standardize water management. Through optimizing production processes, selecting water-sav-ing equipment, and implementing water recycling measures, we aim to maximize the conservation and rationaluse of water resources, e?ectively reducing water wastage:
At our Xiamen production base, we have set clear water-saving targets based on the actual production and operationalsituation. Taking the water consumption of ?? tons of water per ton of product in ???? as the baseline, we plan to reducethis to ?? tons of water per ton of product by ????, continually improving water resource usage e?ciency.
At our Ningde production base, we recover lithium from the cleaning wastewater of semi-?nished products, and therecovered freshwater is reused in the production line. Our lithium recovery project is planned in three phases. In the ?rstphase, approximately ?,???m? of wastewater will be processed annually, and about ?,???m? of water is expected to bereused. Upon completion of all three phases, we expect the water reuse to reach ??,???m?, which will e?ectively improvethe e?ciency of water resource recycling.
At our Sanming production base, we have developed a water-saving checklist and continuously optimize it. We collectmonthly water usage data and analyze anomalies to ensure timely identi?cation and resolution of potential waterwastage issues. Sensor-based switches have been installed in facilities such as handwashing sinks to e?ectively preventwater wastage. We also conduct regular inspections to detect leaks and take corrective actions to ensure e?cient use ofwater resources.
In Jiujiang's Cutting Tools Division, we introduced a plate heat exchanger internal circula-tion water system in the carburizing water pump room and the sintering water pump room. Thissystem e?ectively reduces cooling water usage. By using deionized or distilled water as thecooling medium for the circulating water, it prevents scale buildup in the equipment's watercircuits, extending the equipment's lifespan and improving operational stability.
Industrial pollutant discharges are a major source of environmental issues such as air pollution, water eutrophi-cation, and soil degradation. These emissions directly a?ect ecosystem balance and public health. Reducingindustrial pollutant and waste emissions is an environmental responsibility that enterprises must strictly ful?ll.We have established a comprehensive emissions monitoring and control system that spans the entire productionprocess. By adopting industry-leading clean production technologies and end-of-pipe treatment solutions, wesystematically reduce environmental impacts caused by air pollutants, water pollutants, and noise. We enforcestringent emission standards and continuously optimize pollution control facilities to ensure that both theconcentration and total volume of all pollutant emissions meet or exceed national and local regulatory require-ments. Our company currently operates ten green factories, including seven recognized as national-level greenfactories and three as provincial-level green factories.We have established a series of internal regulations for managing industrial pollutant emissions, including the"Environmental Monitoring and Management Measures for 'Wastes and Noise'" and the "Technical Guidelines forMonitoring 'Three Wastes and Noise'". A comprehensive monitoring system has been put in place to managewaste gas, wastewater, solid waste, and noise ("three wastes and noise"), with clear requirements for all subsid-iaries to take full environmental responsibility, improve internal environmental management, and preventenvironmental risks. In accordance with relevant laws and regulations, each subsidiary engages quali?edthird-party agencies to conduct self-monitoring to ensure that all industrial pollutant emissions comply withregulatory standards. In addition, we commission accredited third-party institutions to carry out unannouncedinspections through random sampling, with monitoring results promptly communicated to the respectivesubsidiaries. During the reporting period, the Safety Production and Environmental Protection Department at ourheadquarters conducted ?? such unannounced monitoring sessions to ensure all subsidiaries maintainedcompliant pollutant discharge levels.
Pollutant Discharge
Secondary Resource Utilization
Deep Processing
Reclaimed Water Reuse System
Highlight | Reclaimed Water Reuse System
XTC Environmental MonitoringSystem for "Wastes and Noise"
Platform support →EHS Information Management System
Technical support →XTC Xiamen Area Environmental Monitoring Laboratory
Measures for the Monitoring and Management of " Wastes and Noise"
Technical Guidelines for the Monitoring of " Wastes and Noise"
Supervisorymonitoring
Group supervisionand managementRandomly & throughsamplingIntensi?edmonitoringEnterprise-basedmanagementSecured monitoring per measuresSelf-monitoring
Regulatory Compliance
monitoringGroup supervisionand managementRandomly & through sampling
Discharge indicators
fully covered
Emission data consistentlymeets standards
Monitoring work complies with standardsWastes and NoiseWaste WaterWaste GasSolid WasteNoiseMoni-toringTargets
Goals
MonitoringWays
MonitoringApproaches
ManagementRequirementsMonitoring tasksimplementationMonitoringcapacity buildingPollution dischargeidenti?cation
Monitoring datamanagement
Discharge pointnumber & nameDischarge point typePollutant indicators
Monitoring equipmentdeploymentMonitoring methodsintroductionMonitoring personneltraining
Monitoring frequency
determinationMonitoring plandevelopmentMonitoring plan
execution
Enterprise-basedmanagementPeriodic monitoringconducted in accordancewith legal requirements
Daily log management
Data anomalymanagementInformation disclosure
management
Real-time online
monitoring
Portable andrapid monitoring
Laboratorymanual monitoring
Real-time, continuous, andearly-warning (continuousmonitoring and high-risk control)
Portability, speed, and ?exibility(emergency monitoring and
daily inspections)
High precision, stability, andcomplexity (comparison monitoringand high-precision requirements)
Closed-Loop Water System withPlate Heat Exchanger
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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????Sustainability Report
We recognize that industrial waste gas emissions are a major contributor to air pollution and climate change,directly a?ecting regional air quality and public health. Our emissions mainly originate from production processesand kitchen fume exhaust, with key pollutants including nitrogen oxides (NO), sulfur oxides (SO), particulatematter (PM), non-methane hydrocarbons (NMHC), ammonia (NH), and hydrogen chloride (HCl). We embed theconcept of clean production into every stage of process design, equipment selection, and daily operations. Westrictly comply with relevant laws and regulations such as the Air Pollution Prevention and Control Law of thePeople's Republic of China and the Comprehensive Emission Standards for Air Pollutants (GB?????-????), alongwith applicable industry-speci?c standards. We adopt a dual approach that combines source control withend-of-pipe treatment, managing emissions based on their speci?c characteristics. Through process optimizationand fuel substitution, we actively reduce pollutant generation. We also equip our facilities with high-e?ciencydust removal systems, desulfurization and denitri?cation units, and VOCs treatment devices to ensure that alltypes of exhaust gases are discharged in full compliance with regulatory standards.
◎ Waste Gas Emissions Management
During the reporting period, all our a?liated enterprises achieved compliance with emissions standards for thewaste gases generated.
XTC Haicang
Branch
Chengdu Hongbo
Industrial
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??.???.?? / / / / / / /
<?.??mg/m
? ?.???mg/m
?
?.????mg/m
?
?.?????mg/m
? ?mg/m? Not Detected ?.??????mg/m
? ??.????mg/m
? ?.?????kg/h
Chengdu Dingtai
Comprehensive Emission Standards for Air Pollutants (GB?????-????)Table ?: Secondary Standards for Maximum Permissible EmissionConcentration and Maximum Permissible Emission RateEmission standard of air pollutants for industrial kiln and furnace （GB????-????）Table ?: Emission Limits for Other Furnaces and Kilns??.??mg/m
???.??mg/m
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Organized emissionafter meeting thestandards
?
?
?
None
None
None
Organized emissionafter meeting thestandards
Organized emissionafter meeting thestandards
Workshop Roof Exhaust Stack,Ball Mill Top Ventilation Duct,Southwest Exhaust Stack of
Technical Center
Workshop ?,Workshop ?,Workshop ?,Workshop ?,Boiler room in the factory area
Molybdenum Four-Tube Furnace Exhaust Chimney, Screening Dust RemovalGolden DragonRare-earth(Plant ofNew IndustrialDistrict)
Emission standards of volatile organic compounds for industrial enterprises（DB??/????-????）Table ?: Emission Limits for Other Industries
?.???????.??????
//??.????mg/L??.????mg/L
?NoneOrganized emissionafter meeting thestandards
? Melting Emission Outlets,? Sintering Emission Outlets,? Shot Blasting Emission Outlet,? Machining Glue-BoilingEmission OutletComprehensive Emission Standards for Air Pollutants (GB?????-????)Table ?: Secondary StandardsGolden DragonRare-earth(Plant of RareEarthIndustrial Park)
?.??///
?.????mg/m
? ??.????mg/m
? ?.????mg/m
??.????mg/m
?
?.???????.???????.???????.??????
Organized emissionafter meeting thestandards
??None
Electrolytic Emission Outlets,? Spraying Emission Outlets,? Stripping & ElectrophoresisEmission Outlet,? Phosphating Emission Outlets,? Electrolytic Emission Outlets,? Galvanizing Emission Outlet,? Shot Blasting Emission Outlet
Emissions of Air Pollutants from Key Environmental Supervision Units of the Company in ????
Enterprise Name
Main PollutantsandCharacteristic
Pollutants
EmissionConcentration
Name of Implemented Pollutant Emission StandardEmission Method
Number ofDischarge
Outlets
Distribution ofDischarge Outlets
ExcessiveEmissionTotal AnnualEmissions (tons)
Approved EmissionVolume of Pollutant
Discharge Permit
(tons/year)
Fujian Xinlu
?.???
/ ??.?mg/m
?
?.???mg/m
?
?.???????.??????
Organized emission
after meeting the
standards
?None
Alloy dust removal exhaust stack,
APT exhaust stack,leaching alkali spray exhaust stack,tungstic acid drying exhaust stack,
tungstic acid exhaust stack,and waste tungsten exhaust stack
AmmoniaParticulate
matterCobalt and itscompoundsParticulatematterNitrogen oxidesSulfur dioxideMolybdenumAmmoniaAmmoniaParticulatematterParticulatematterNon-methanehydrocarbonsParticulatematterNitrogen oxidesParticulatematterNon-methanehydrocarbonsSulfuric acidmistParticulatematterNon-methanehydrocarbons
Emission Standard of Odor Pollutants (GB?????-??)Xiamen Atmospheric Pollutant Emission Control Standard(DB??/???-????)Emission Standard of Pollutants for Inorganic Chemical Industry (GB?????-????)Emission standard of air pollutants for boilers in Chengdu (DB??/????-????)Comprehensive Emission Standards for Air Pollutants (GB?????-????)
Emission Standard of Odor Pollutants (GB?????-??)Emission Standard of Odor Pollutants (GB ?????-??) Table ?: Standards
Emission standard of pollutants for electroplating （GB ?????-????）Table ?: Standards
Emission Standard of Pollutants forInorganic Chemical Industry (GB ?????-????)
Emission standard of air pollutants for boiler （GB?????-????）Table ?: Emission Limits for Gas BoilersEmission standard of volatile organic compounds for industrial surface coating（DB??/????-????） Table ?: StandardsEmission standard of pollutants for electroplating （GB ?????-????） Table ?: StandardsComprehensive Emission Standards for Air Pollutants (GB?????-????)Table ?: Secondary StandardsEmission standards of volatile organic compounds for industrial enterprises（DB??/????-????） Table ?
Emissions Situation
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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????Sustainability Report
GANPOWER
/ / / /
??.??mg/m
?
??.?????mg/m
?
?.????mg/m
?
?.????????mg/m
?
?.???????.???????.???????.??????
Organized emission
aftermeeting the
standards
?None
Exhaust outlet for natural gasboiler, exhaust outlet for crushing
and sorting, exhaust outlet for
roasting furnace, and exhaust
outlet for leachingDuchang Jinding
/ / ??.??mg/m
?
?.??mg/m
?
Emission standard of air pollutants for boiler （GB?????-????）
?.???????.??????
Boiler discharge outlet
within the plantOrganized emission
aftermeeting thestandards
?None
Luoyang Yulu
Notice on Recommended Emission Limits for Volatile Organic CompoundsControl in Industrial Enterprises across the Province(Henan Environmental Campaign O?ce [????] No. ???)Non-methanehydrocarbons
?.?????? / ?.??mg/m?
?NoneOrganized emissionaftermeeting thestandards
Boiler room roof ?.?mg/m
?
?.?mg/m
?
?.???????.??????
?.?? ?.??Malipo HaiyuTungsten
?.???????.???????.??????
/ / / ???.??????mg/m
?
??.??????mg/m
?
??.??????mg/m
?
Organized emissionaftermeeting thestandards
?None
Sulfuric acid mistdischarge outlet,and boiler chimneydischarge outletEmission standard of air pollutants for boiler （GB?????-????） Table ?: Standard Limits
XiamenGolden Egret（Tongan Plant）
?.???????.???????.??????
/ / / ?.??mg/m
?
?.??mg/m
?
??.?mg/m
?
Organized emissionaftermeeting thestandards
??None
?? dust emission outlets,? organic gas emission outlet,and ? hydrogen chlorideemission outletXiamen Atmospheric Pollutant Emission Control Standard (DB??/???-????)
ChengduLianhong Molybdenum Industry
?.???????.???????.??????
/ / / ?.???mg/m
?
??mg/m
? ?.??mg/m
?
Organized emissionaftermeeting thestandards
?None
Surroundingthe factory buildingComprehensive Emission Standards for Air Pollutants (GB?????-????)
Xiamen Jialu
?.???????.???????.??????
??.?? / ?.???.????kg/h ??.??mg/m
?
?.??mg/m
?
Organized emission
aftermeeting thestandards
?None
Ammonia discharge outlet,exhaust gas discharge outlet ?,
and ?# stackEmission Standard of Odor Pollutants (GB?????-??)Xiamen Atmospheric Pollutant Emission Control Standard (DB??/???-????)
XWXN
?.????.??
?.??
?.??
?.??
?.?????mg/m
?
?.??????mg/m
?
?.??????mg/m
?
?.??????mg/m
?
?.??????mg/m
?
?.???????.???????.???????.???????.??????
Organized emission
aftermeeting the
standards
??None
Roof of the workshop building
within the factory area
Haicang Golden
Egret
/ /
?.???mg/m
?
??.??mg/m
?
?.???????.??????
Organized emission
aftermeeting thestandards
?None
Internal areas of thefactory premisesXiamen Atmospheric Pollutant Emission Control Standard (DB??/???-????)
Sulfur dioxideNitrogen oxidesParticulate matterNickel and itscompoundsNitrogen oxidesSulfur dioxide
Particulate matterNitrogen oxidesNitrogen oxidesParticulate matterSulfur dioxideAmmoniaNitrogen oxidesParticulate matterParticulate matterAmmoniaNickel and itscompoundsCobalt and itscompoundsManganese and itscompoundsNon-methanehydrocarbonsHydrochloric acidParticulate matterParticulate matterNitrogen oxidesHydrochloric acidParticulate matterNon-methanehydrocarbons
Local Standard for Boiler Atmospheric Pollutant Emission in Henan Province (DB??/????-????)Local Standard for Boiler Atmospheric Pollutant Emission in Henan Province (DB??/????-????)
Xiamen Atmospheric Pollutant Emission Control Standard (DB??/???-????)Emission Standard of Odor Pollutants (GB?????-??)Comprehensive Emission Standards for Air Pollutants (GB?????-????)Emission Standard of Pollutants for Inorganic Chemical Industry (GB ?????-????)Integrate emission standards of air pollutants （DB??/???-????）
Enterprise Name
Main Pollutants
andCharacteristicPollutants
EmissionConcentration
Name of Implemented Pollutant Emission StandardEmission Method
Number ofDischargeOutlets
Distribution ofDischarge Outlets
ExcessiveEmissionTotal AnnualEmissions (tons)
Approved EmissionVolume of PollutantDischarge Permit(tons/year)Comprehensive Emission Standards forAir Pollutants (GB?????-????) Table ?: Limit Values;Standard for pollution controlon hazardous waste incineration ( GB ?????-????) Table ?: Limit Values;Emission standard of air pollutants for industrial kiln and furnace (GB ????-????)Table ? and Table ?: Secondary Standard Limits;Emission standard of air pollutants forboiler （GB?????-????） Table ?: Limit Values
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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At Ninghua Xingluokeng, the main air pollutants generated during production operations are particulate matter. Wehave taken the following measures to reduce particulate emissions:
During the mining process, advanced blasting technology and dust capture facilities are used, along with mobile spraying andintelligent watering dust suppression equipment, to reduce dust emissions.In the bene?ciation process, dust removal systems and spraying dust suppression devices are installed at areas prone to dustgeneration, achieving a dust control e?ciency of over ??%.In the transportation process, sprinkling devices and dust suppression facilities are deployed to e?ectively reduce dust.In the mining area, automatic air pollutant monitoring and electronic display equipment are installed to monitor air pollutants inreal-time. We also commission a quali?ed third-party agency to conduct quarterly tests at major emission points of waste gases toensure all emissions comply with environmental protection standards.
At Duchang, the main air pollutants generated during production operations include particulate matter, sulfur oxides,nitrogen oxides, and others. We have implemented the following measures to reduce the emission of air pollutants:
At the tungsten smelting base in Longyan, the main air pollutants generated during production operations includeparticulate matter and non-methane total hydrocarbons. We have implemented the following measures to reduce theemission of air pollutants:
At our rare earth materials production base in Changting, the main air pollutants generated during productionand operations include particulate matter, sulfur dioxide, nitrogen oxides, sulfuric acid mist, and non-methane totalhydrocarbons. We have adopted the following measures to reduce emissions of air pollutants:
At Luoyang Yulu, the main air pollutants generated during production operations include nitrogen oxides, particulatematter, and others. We have implemented the following measures to reduce the emission of air pollutants:
In the operation management of gas boilers, weactively promote low-nitrogen combustiontechnology. By optimizing the combustion process,we e?ectively reduce the emission of nitrogenoxides.
For the tail gas generated during the concentrate dryingprocess, we employ high-e?ciency wet electrostaticprecipitator technology to e?ectively removeparticulate matter and pollutants from the tail gas,achieving clean emission of the exhaust.
Waste Gas Treatment Facilities
Emission Reduction MeasuresMining Operations
Advanced Materials Production
Water sprinkling is applied in key areas or processes, such as open-air blasting, transportation roads, unloading at thetailings dump, and unloading of raw ore, to suppress dust.To reduce the emission of waste gases from boiler combustion, lique?ed natural gas (LNG) is used as fuel to minimize thegeneration of harmful gases and particulate matter from the source.Five bag dust collectors are installed in the crushing system to e?ectively collect and treat the dust generated by thecrushing process.For tailings dry beach dust, measures such as rational mineral dumping and dry beach sprinkling are adopted toe?ectively control dust generation.Transport vehicles are equipped with cleaning devices to reduce dust accumulation caused by vehicle transportation.Regular cleaning and washing of factory roads are carried out to reduce dust.
By expanding the coverage of the exhaust hood and collecting hot air, we merge the exhaust from the end and slag discharge ports toreduce unorganized emissions.Upgraded the leaching gas delivery pipeline by replacing the original welded air ducts with ?anged, thick-walled pipe structures,eliminating risks such as aging cracks in welds, pipe deformation, and collapse, ensuring the stable operation of the exhaust system.Improved the mechanical sealing and air duct design of the acid mixing tank. The sealing method of the acid mixing tank has beenupgraded from a water seal to a mechanical sealing device, and an independent exhaust pipeline has been designed to achieve hotair diversion, preventing cross-contamination of process gases.
We have formulated the Environmental Protection Management Regulations, with our Safety and Environmental Protection Department responsiblefor supervising and managing atmospheric emissions, and we have developed a self-monitoring plan for air emissions in accordance with relevantlaws and policies.We assign dedicated personnel in each department to conduct daily inspections of our waste gas treatment facilities to ensure stable operation. Inthe event of any abnormality, we take immediate corrective actions. Units or individuals who fail to perform their duties properly are subject to strictaccountability, and in the case of accidents causing injuries or fatalities, we pursue legal responsibility in accordance with the law.We have installed an automatic graphite box cleaning device and a dust removal spray tower, and we have procured a second laser polishing machine toe?ectively reduce dust emissions during production.In our industrial park area, we treat exhaust gas using a combination of oil mist ?ltration and water spraying to ensure e?ective puri?cation beforedischarge.In the surface treatment workshop, we have introduced advanced equipment that combines water spraying, activated carbon adsorption, andcatalytic combustion, which e?ciently removes harmful substances from exhaust gases.We regularly commission quali?ed third-party organizations to monitor atmospheric pollutant emissions, ensuring that both the concentration andtotal volume of emissions comply with national and local standards.
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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At our battery materials production base, the main air pollutants generated during production and operationsinclude particulate matter, ammonia, nickel and its compounds, cobalt and its compounds, and manganese and itscompounds. We have implemented the following measures to reduce air pollutant emissions:
We treat NMTHCs with combustion equipment that utilizes an “adsorption-desorption catalytic” process.We treat particulate matter using cyclone dust collectors and bag ?lters.
We neutralize hydrogen chloride emissions using an alkaline spray tower.For small quantities of recoverable dust generated during material feeding, we use a dedicated sealed multi-stagecollection system.Ammonia-containing exhaust gas produced during the APT calcination process is treated using our patented technology, which decomposes and combusts the gas, converting it into nitrogen and water.Organic waste gas from the sintering process is treated through “adsorption concentration + catalytic combustion” before being discharged in compliance with standards.Waste gas from degreasing and vacuum sintering processes is handled by an advanced foreign sintering system equipped with para?n condensation and recovery functions. After condensation and recovery, the remaining gas is discharged via rooftop axial fans.Tail gas from methanol production is burned in a heat-conducting oil furnace and co-discharged with the furnace's ?ue gas.Waste gas from the heat-conducting oil furnace, which uses natural gas as fuel, is discharged through a ??-meter-highexhaust chimney.Kitchen fume is treated with oil fume puri?cation equipment before compliant discharge, while oil mist is separated by an oilmist separator and not discharged externally.We commission a quali?ed third-party agency to conduct quarterly waste gas testing to ensure that all emissions complywith applicable standards.
We conduct monthly monitoring of nitrogen oxides emitted from the heat-conducting oil furnace and take timely correctiveactions based on the results to ensure compliance with legal and permitting requirements.We have upgraded and modi?ed the air pollution control systems for the rock drilling rod brazing and alloy cleaning processes.We have installed new air pollution control equipment for the rock drilling thread line shot blasting machine, shot blastingmachine, and carburizing furnace to improve treatment e?ciency and ensure compliant emissions after puri?cation.
Deep Processing
We strictly enforce internal regulations such as the Environmental Protection Management System and the Waste Gas ManagementRegulations, adhering to the principle of reduction at source to control emissions and minimize pollutant generation.We continuously promote and optimize the application of real-time gas monitoring systems to ensure timely and e?ectivetreatment and control measures upon detection of harmful gases, thereby preventing atmospheric pollution.
We have installed online monitoring systems at all particulate emission points to enable real-time monitoring of particulateconcentrations, ensuring data accuracy and stability.Ammonia gas monitoring devices have been added around plant boundaries, the wastewater treatment station, MVR units, and keyworkshop areas to track changes in ammonia concentrations in real time and ensure compliance with environmental standards.During equipment procurement and technological upgrades, we prioritize production technologies and machinery with highresource e?ciency and low pollutant emissions.We have enhanced the capability to recover fugitive ammonia emissions in workshops and strengthened ammonia controlmeasures. A new ammonia spray absorption tower has been installed in the precursor workshop to further reduce ammoniaemissions.We have optimized exhaust ?ltration facilities to ensure that all production waste gases undergo high-e?ciency puri?cation beforebeing stably discharged.We regularly clean the dust collector ?lter bags to maintain the dust removal system’s e?ciency.We conduct routine maintenance of exhaust fans to ensure proper functioning.We require suppliers and relevant parties to ensure that all chemicals meet quality standards. Rigorous inspections are carried outupon chemical delivery, and storage is strictly managed to prevent leaks and the spread of hazardous gases.For volatile chemicals, we check packaging integrity before use and manage storage under light-avoiding, low-temperature (roomtemperature), and ventilated conditions. In the event of a chemical spill, we strictly follow the Emergency Preparedness andResponse Management Procedure to quickly contain gas volatilization and prevent harm to human health and the environment.We strictly prohibit open burning of waste and garbage both on and o?-site, eliminating the risk of air pollution from incinerationactivities.
In accordance with emission limits outlined in GB?????-???? Comprehensive Emission Standard for Atmospheric Pollutants,GB?????-???? Emission Standard for Pollutants from Inorganic Chemical Industry, and DB??/???-???? Xiamen AtmosphericPollutant Emission Control Standard, we have established internal emission targets stricter than regulatory requirements, limitinggas emissions to no more than ?? mg/m?.
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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At our Alloy and Cutting Tools Division in Xiamen, the main air pollutants emitted during production andoperations include particulate matter, non-methane total hydrocarbons (NMTHCs), ammonia, and hydrogen chloride.We have adopted the following measures to reduce emissions of air pollutants:
At our Cutting Tools Division in Luoyang, the main air pollutants generated during production and operationsinclude nitrogen oxides (NO), volatile organic compounds (VOCs), and particulate matter. We have implemented thefollowing measures to reduce air pollutant emissions:
Our wastewater primarily originates from domestic sewage, process wastewater, and workshop washing activities. Themain pollutants include Chemical Oxygen Demand (COD), ammonia nitrogen, total nitrogen, and total phosphorus. Westrictly comply with the Water Pollution Prevention and Control Law of the People’s Republic of China and otherapplicable national and local regulations. We have established and rigorously implemented internal policies such asthe Environmental Protection Management System, Pollutant Discharge Management Regulations, WastewaterManagement Regulations, and Rainwater Management Regulations to regulate wastewater treatment and discharge,ensuring all e?uents meet relevant standards. During the reporting period, we completed the construction of anenvironmental laboratory in the Xiamen region. The laboratory has acquired partial monitoring capabilities for waterpollutants and has monitored selected wastewater discharge parameters from ?? subsidiaries in the Xiamen area. Thisdevelopment has signi?cantly improved our wastewater monitoring e?ciency and provided robust technical supportfor mitigating environmental risks.
◎ Wastewater Discharge Management
Wastewater Pollutant Emissions of the Company’s Key Environmental Supervision Units in ????Enterprise Name
Main PollutantsandCharacteristicPollutants
EmissionConcentration
Name of Implemented Pollutant Emission StandardEmission Method
Number ofDischarge
Outlets
Distribution of Discharge
Outlets
ExcessiveEmissionTotal AnnuaEmissions (tons)
Approved EmissionVolumeof Pollutant
Discharge Permit(tons/year)??.??????
?.???????.???????.???????.???????.???????.???????.???????.???????.??????
???.????.????
?.????
?.????
?.????
?.????
///
??.???
??.???mg/L??.???mg/L?.??????mg/L?.????mg/L?.????mg/L?.??????mg/L?.??????mg/L?.???mg/L?.??????mg/L??.??mg/L
XTC HaicangBranch
Emission afterreaching thestandard
?None
Southwest factorywastewater discharge outletIntegrated Wastewater Discharge Standards (GB????-????)
Chengdu Hongbo
Industrial
??.??????
?.???????.??????
///94mg/L
10.055mg/L
26mg/L
Integrated Wastewater DischargeStandards (GB????-????) Table ?: Tier ? StandardsWastewater quality standards for discharge to municipal sewers (GB/T?????-????)Table ?: Class B Standard Values
Emission afterreaching thestandard
?None
Factory South Discharge Outlet,Factory North Discharge OutletGolden DragonRare-earth (Plantof New IndustrialDistrict)
??.???.??47mg/L
6.82375mg/L
?.???????.??????
Emission afterreaching thestandard
?None
Main wastewater dischargeoutlet and domestic sewagedischarge outlet in thefactory areaWastewater quality standards for discharge to municipal sewers (GB/T?????-????)Table ?: Class B Standard Values
Emissions SituationDuring the reporting period, all our subsidiaries achieved compliance with wastewater discharge standards.
Chemical OxygenDemandAmmonia NitrogenTotal ArsenicTotal LeadTotal NickelTotal MercuryTotal ChromiumTotal CadmiumTotal CobaltTotal NitrogenChemical Oxygen
DemandAmmonia Nitrogen
Total NitrogenChemical Oxygen
DemandAmmonia Nitrogen
Integrated Wastewater Discharge Standard (DB??/???-????)Wastewater quality standards for discharge to municipal sewers(GB/T?????-????)
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Golden Dragon
Rare-earth(Plant of Rare
EarthIndustrial Park)
Emission afterreaching thestandard
?None
Main wastewater dischargeoutlet and domestic sewage
discharge outlet in thefactory area
Chemical Oxygen
Demand
?.????mg/L?.????????.??
Ammonia Nitrogen?.????mg/L?.???????.???
Total Copper?.?????mg/L?.???????.????
Emission standard of pollutants for electroplating (GB ?????-????) Table ?: Standards
Total Nickel?.????mg/L?.???????.????
Total Zinc?.????mg/L?.???????.????
Emission Standards for Pollutants in the Rare Earth Industry (GB?????-????)Table ?: Direct Discharge;Wastewater quality standards for discharge to municipal sewers (GB/T?????-????)Table ?: Class A Standard ValuesTotal Nitrogen?.????mg/L?.??????/
Emission Standards for Pollutants in the Rare Earth Industry(GB?????-????) Table ?Total Phosphorus?.????mg/L?.??????/
Integrated Wastewater Discharge Standards(GB????-????) Table ?: Standards
Integrated Wastewater Discharge Standards(GB????-????) Table ?: Tier ? Standard Limits
Integrated Wastewater Discharge Standards (GB????-????)Table ?: Standard Upgrade from Level ?
Integrated Wastewater Discharge Standards(GB????-????) Table ?: Level ? Standard
Wastewater quality standards for discharge to municipal sewers(GB/T?????-????) Table ?: Class B Standard Values
Emission afterreaching thestandard
?None
Factory wastewaterdischarge outlet,workshop wastewaterdischarge outlet,and rainwater discharge outletFujian Xinlu
??.?????mg/L?.????mg/L?.??????mg/L?.????mg/L?.??????mg/L?.????mg/L
?.???????.???????.???????.???????.???????.??????
?.????.????.?????.?????.?????.????
GANPOWER
?.????.???
//??.???mg/L?.?????mg/L
?.?mg/L?.??mg/l
?.???????.???????.???????.??????
Emission afterreaching the
standard
?None
Northeast corner of the
factory area
Emission afterreaching the
standard
?None
External wastewater
discharge outlet
Duchang Jinding
??.???mg/L?.????mg/L?.???mg/L?.????mg/L?.????mg/L?.????mg/L?.????mg/L?.????mg/L
??.??????
?.???????.???????.???????.???????.???????.???????.??????
???.??
?.????.???.???
?.??
?.??
?.??.?
Chemical OxygenDemandAmmonia NitrogenTotal LeadTotal CadmiumTotal ArsenicTotal ChromiumChemical OxygenDemandAmmonia NitrogenTotal CobaltTotal NickelChemical OxygenDemandAmmonia NitrogenTotal NitrogenTotal PhosphorusTotal CadmiumTotal MercuryTotal LeadTotal Arsenic
Enterprise Name
Main PollutantsandCharacteristicPollutants
EmissionConcentration
Name of Implemented Pollutant Emission StandardEmission Method
Number ofDischarge Outlets
Distribution of Discharge
Outlets
ExcessiveEmissionTotal AnnuaEmissions (tons)
Approved EmissionVolumeof PollutantDischarge Permit(tons/year)
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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Emission Standard of Pollutants for Inorganic Chemical Industry (GB ?????-????) Table ?
Organized emissionafter meeting the
standards
?None
Discharge outlet of sewage
treatment station,rainwater discharge outlet
Malipo Haiyu
Tungsten
??.??????mg/L?.??????mg/L?.???mg/L?.??????mg/L?.?????mg/L?.??mg/L
?.???????.???????.???????.???????.???????.??????
?.????.???
////
Integrated Wastewater Discharge Standards (GB????-????)
Organized emissionafter meeting the
standards
?None
Discharge outlet for domesticsewage, discharge outlet fortailings pond during the rainy
season, ? discharge outlets
for sedimentation tanks, discharge outlet for leaching water from waste rock area
NinghuaXingluokeng
??.??????mg/L?.??????mg/L?.??????mg/L?.??????mg/L?.??????mg/L
?.???????.???????.???????.???????.??????
/////
Discharge standard of water pollutants for Xiamen (DB??/???-????)
Emission afterreaching the standard
?None
Discharge outlet on the northwest side of the
factory area
XWXN
??.??????mg/L?.??????mg/L?.??????mg/L?.??????mg/L?.?????mg/L
??.??????
?.??????.???????.???????.??????
??.????
?.?????.?????.?????.????
Organized emissionafter meeting the
standards
?None
TW?? wastewater discharge outlet,TW?? workshop discharge outlet.Xiamen Jialu
??.???mg/L??.??mg/L?.????mg/L?.??mg/L?.?mg/L
?.???????.???????.???????.???????.??????
??.??.??.????.????.???
Integrated Wastewater Discharge Standards (GB????-????)
XiamenGolden Egret（Tongan Plant）
//??mg/L?.???mg/L
Discharge standard of water pollutants for Xiamen (DB??/???-????)
?.???????.??????
Emission afterreaching the standard
?None
Factory production wastewater
and domestic sewage
discharge outlet
ChengduLianhongMolybdenum
Industry
//???mg/L??mg/L
?.???????.??????
Emission afterreaching the standard
?NoneSouth outlet of the factory
HaicangGolden Egret
//???.?mg/L??.??mg/L
??.??????
?.??????
Emission afterreaching the standard
?None
Factory production wastewater
and domestic sewage
discharge outlet
Chemical Oxygen
DemandAmmonia Nitrogen
Total CadmiumTotal NitrogenTotal Arsenic
Total LeadChemical Oxygen
DemandAmmonia Nitrogen
Total Cadmium
Total ArsenicTotal MolybdenumChemical Oxygen
DemandAmmonia Nitrogen
Total ArsenicTotal Nitrogen
Total LeadChemical Oxygen
DemandAmmonia Nitrogen
Total NickelTTotal Manganese
Total CobaltChemical Oxygen
DemandAmmonia NitrogenChemical Oxygen
DemandAmmonia NitrogenChemical Oxygen
DemandAmmonia Nitrogen
Wastewater quality standards for discharge to municipal sewers (GB/T?????-????)Integrated Wastewater Discharge Standards (GB????-????)
Integrated Wastewater Discharge Standards (GB????-????)Wastewater quality standards for discharge to municipal sewers (GB/T?????-????)Integrated Wastewater Discharge Standards (GB????-????)Wastewater quality standards for discharge to municipal sewers (GB/T?????-????)
Enterprise Name
Main Pollutants
andCharacteristic
Pollutants
EmissionConcentration
Name of Implemented Pollutant Emission StandardEmission Method
Number ofDischarge
Outlets
Distribution of Discharge
Outlets
ExcessiveEmissionTotal AnnuaEmissions (tons)
Approved EmissionVolumeof Pollutant
Discharge Permit
(tons/year)
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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Emission Reduction Measures
At Ninghua Xingluokeng, the main wastewater pollutants generated during production operations include ChemicalOxygen Demand (COD) and ammonia nitrogen. We strictly implement internal regulations such as the EnvironmentalProtection Management System and have adopted the following measures to reduce wastewater pollutant emissions:
At the Duchang site, the main wastewater pollutants generated during production operations include ChemicalOxygen Demand (COD), ammonia nitrogen, total phosphorus, and total nitrogen. We have implemented the followingmeasures to reduce wastewater pollutant discharge:
At the tungsten smelting base in Longyan, the main wastewater pollutants generated during production operationsinclude Chemical Oxygen Demand (COD), ammonia nitrogen, total lead, total chromium, and total cadmium. We haveimplemented the following measures to reduce the discharge of wastewater pollutants:
Constructed a new triple-e?ect evaporator, which recovers water from high-salinity wastewater produced by the tungstic acidproduction line in the form of condensate and extracts solid components such as sodium chloride for sale. This e?ectivelyreduces wastewater discharge and promotes resource recycling;Added ?nal-stage collection and monitoring processes in wastewater treatment, using both instrumental analysis and test stripsto ensure that pollutants such as ammonia nitrogen meet discharge standards;Reused a portion of wastewater and waste acid through a reclaimed water system, reducing the consumption of fresh water;Implemented a cascading wastewater utilization strategy to improve the overall e?ciency of water resource use.
At the battery materials production base, the main wastewater pollutants generated during production andoperation include Chemical Oxygen Demand (COD), ammonia nitrogen, total nickel, total manganese, and total cobalt.We have implemented the following measures to reduce wastewater pollutant discharge:
At the Tungsten and Molybdenum Wire Materials Division in Xiamen, the main wastewater pollutants generatedduring production and operation include Chemical Oxygen Demand (COD), Biochemical Oxygen Demand (BOD?), andammonia nitrogen. We have implemented the following measures to reduce wastewater pollutant discharge:
A reclaimed water system has been built in both the Tianfeng Tungsten Wire Section ? and the Tianxiang Phase IITungsten Wire Section ?. The water reuse rate of this system exceeds??%, e?ectively conserving water resources andreducing wastewater discharge.To address the issues of low e?ciency and delayed processing in the existing graphite slurry cleaning wastewatertreatment system, we have collaborated with Suntar Environmental Technology Co., Ltd. to develop a ceramicmembrane treatment solution, aimed at upgrading and improving the wastewater treatment system.
Mining Operations
Advanced Materials Production
Deep Processing
Fully recycle all production wastewater to minimize discharge;During the rainy season, treat wastewater from the tailings pond to meet Class III surface water standards before discharge,reducing negative environmental impacts;Closely monitor all industrial and domestic wastewater discharge outlets, including parameters such as ?ow rate, pH, COD, andsuspended solids. Monitoring is conducted at least three times per month, and for outlets subject to environmental performanceassessments, at least ?? monitoring sessions are carried out monthly to ensure compliance with environmental standards;Engage quali?ed third-party agencies for monthly testing of discharged wastewater to ensure that emissions meet the requiredstandards.
Reduced the dosage of wastewater treatment chemicals by adjusting both the type and concentration of reagents. The dosingrates for polyacrylamide (PAM) and polyaluminum chloride (PAC) were lowered to ?? g/t and ? g/t respectively, enhancingwastewater treatment e?ciency while reducing operating costs, saving a total of RMB ?.?? million over the year;Completed an ozone capacity upgrade project, fully upgrading the ozone system and its supporting PLC system, and converting thetwo oxidation towers from series to parallel con?guration. This increased wastewater treatment capacity from ??? m?/h to ??? m?/h;Commissioned a third-party agency to design a rainwater-sewage diversion system and carried out on-site construction within theplant to ensure e?ective separation and discharge of rainwater and sewage;Upgraded key areas prone to rain-sewage mixing and repaired damaged parts of the diversion structures to achieve full separation ofrainwater and sewage;Installed drainage ditches, interception dams, sedimentation ponds, and water pumping facilities to fully collect and recycle leachateas production water;Discharged mining wastewater together with tailings into the tailings pond. Over?ow water from the tailings pond is partially reused inproduction and partially discharged after ozone treatment and phosphorus removal.
In accordance with the Discharge Standard of Water Pollutants for Xiamen (DB??/???-????) and the Integrated WastewaterDischarge Standards (GB????-????), we have established a series of environmental indicators related to wastewater. Our TestingCenter conducts weekly monitoring of wastewater discharge for pH, ammonia nitrogen, and heavy metals (nickel, cobalt,manganese, etc.);We have established an online water quality monitoring system that complies with national standards and has passedgovernment inspection, allowing for real-time monitoring of ammonia nitrogen and COD in wastewater;We engage quali?ed environmental monitoring agencies annually to conduct environmental assessments of our wastewaterdischarge to ensure compliance with discharge standards;Two dedicated wastewater treatment systems have been set up to separately handle cobalt oxide and ternary precursorproduction wastewater. Wastewater from the workshops ?rst ?ows into a regulating tank and is heated via a heat exchanger, thensent to a steam stripping tower for gas-liquid separation. The recovered ammonia gas is processed into ammonia water forreuse, promoting resource recycling. The remaining liquid is subjected to multi-stage treatment including plate-and-frame?ltration and precision ?ltration, followed by pH adjustment in the acid-base regulation system, ensuring that all dischargedwater meets environmental standards.
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We strictly comply with the "Law of the People's Republic of China on the Prevention and Control of EnvironmentalNoise Pollution" and other relevant laws and regulations. We actively implement noise control measures to minimizethe impact of production activities on the surrounding environment. A regular monitoring mechanism has beenestablished, with noise monitoring conducted at the plant boundary at least once per quarter. In the event of noisecomplaints, we carry out additional targeted monitoring based on actual production conditions and the nature of thecomplaint. This ensures that noise emissions remain within national and local regulatory standards, contributing to aquiet and comfortable working and living environment for both employees and nearby communities. During thereporting period, all our subsidiaries achieved compliant noise emission levels.
◎ Noise Management
At Ninghua Xingluokeng, we adopt the following measures to reduce noise impact:
Installing sound barriers near noise sources to block and absorb noise, thereby reducing its transmission;Conducting regular maintenance of noise-generating machinery to ensure stable operation and reduce noise levels;Implementing rational production scheduling to avoid high-noise activities during nighttime or rest periods, minimizingdisturbance to nearby residents;Engaging quali?ed third-party institutions to conduct noise monitoring at plant boundaries to ensure emissions meet national and regional standards.
In Duchang, we take the following actions to mitigate noise pollution:
At the molybdenum production base in Chengdu, we conduct the following measures to reduce noise impact:
At our battery materials production base, we perform the following measures to reduce noise impact:
At the Alloy and Cutting Tools Division in Xiamen, we perform the following noise control measures:
We apply acoustic insulation and silencing treatments to minimize the impact of equipment operation noise on the surroundingenvironment.Personnel working in high-noise areas are required to strictly follow personal protection protocols and wear the appropriateprotective equipment correctly.We completed noise reduction modi?cations for four sintered rotary vane pumps, further enhancing the noise managementlevel of the production environment.
Implementationof Class III BoundaryNoise StandardsOptimized AcousticBuilding DesignStrategicEquipmentPlacementStrengthened Equip-ment Maintenanceand ManagementEnhanced NoiseSource ControlRegular NoiseMonitoring
Mining Operations
Advanced Materials Production
Deep Processing
Selecting equipment with high machining precision, superior assembly quality, and low noise levels, while also prioritizing vibrationisolation and damping measures in the equipment foundation;
Enforcing vehicle noise control by requiring reduced speed and no horn use when passing environmentally sensitive areas;Optimizing site layout and scheduling blasting and transport operations to minimize noise impact on the surrounding environment;Commissioning quali?ed third-party agencies to carry out comprehensive noise monitoring and evaluation at the plant boundary toe?ectively control noise pollution.
Implementing targeted noise control measures using sound-absorbing materials and acoustic barriers for key noise sources such asthe ball mills on the milling platform, vibrating equipment in the pre-selection and waste rock buildings, and vibrating screens andbelt gearboxes in the manufactured sand plant. These e?orts ensure boundary noise levels remain below ?? dB(A) during the dayand below ?? dB(A) at night;
We prioritize the selection of low-noise equipment and, during process design and equipment layout planning, place high-noiseequipment in the central area of the plant to reduce its impact on the external environment.For equipment that generates signi?cant noise, we apply a combination of noise control measures including wall insulation,acoustic rooms, acoustic enclosures, vibration isolation, silencing, and sound absorption. We also enhance maintenance e?orts toensure proper operation and prevent abnormal noise generation.During production, we manage noise by limiting equipment operating hours, staggering the use of high-noise equipment,prohibiting rough or improper operation, and forbidding the throwing or dropping of tools.Facilities are regularly inspected and maintained, and unscheduled supervision checks are conducted by the Safety and Environ-mental Protection Department to ensure stable operation of noise control equipment.We commission quali?ed third-party institutions to conduct comprehensive boundary noise monitoring at least once per year. Themonitoring results are used to verify the e?ectiveness of noise control measures and to establish a complete monitoring archive.
In accordance with the national "Emission Standard for Industrial Enterprises Noise at Boundary" (GB?????-????)and the approval documents issued by the ecological and environmental authorities, we apply Class III standards forplant boundary noise control, ensuring noise levels remain below ?? dB(A) during the day and ?? dB(A) at night.All noise-generating equipment is installed inside the production workshops. The acoustic properties of the buildingstructures help reduce external noise emissions and minimize the impact on both the facility and surroundingenvironment.High-noise equipment is arranged with careful consideration. Cooling towers are installed on the rooftops to reducetheir impact on production areas and employees, while compressors and other loud equipment are placed indoorsto bene?t from the building’s sound insulation.We have established daily maintenance and inspection routines to ensure that all equipment operates in optimalcondition. Key noise-generating equipment is regularly serviced to prevent noise pollution caused by mechanicalaging or malfunction.We install vibration-damping pads and acoustic insulation materials to reduce the intensity of noise at its source.When new large-scale equipment is introduced or existing machinery generates abnormal noise, we take immediatemitigation measures such as installing acoustic barriers, optimizing vibration isolation structures, or replacingequipment with low-noise models to maintain compliance with noise standards.The Safety and Environmental Management Department commissions quali?ed third-party institutions to conductquarterly monitoring of noise indicators at the plant boundary. Based on the results, we continuously improve andre?ne our noise reduction measures.
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We strictly comply with the "Law of the People's Republic of China on the Prevention and Control of EnvironmentalPollution by Solid Waste," the "Pollution Control Standard for General Industrial Solid Waste Storage and DisposalSites," the "Pollution Control Standard for Hazardous Waste Storage," as well as other applicable national and localregulations and solid waste management standards. We continuously improve and re?ne our waste managementsystems and standardize waste classi?cation and disposal procedures. Following the principles of "reduction, recycling,and harmless treatment," we strive to minimize waste generation by optimizing production processes, promoting greenpackaging, and enhancing waste sorting and recycling e?orts. At the same time, we strengthen the circular use ofresources to minimize the negative environmental impact of waste disposal.
Waste Disposal
General waste generated during our operations primarily consists of industrial waste (such as tailings, waste rock,discarded saggers, and used bulk bags) and domestic waste. Throughout our production and operational processes, weactively implement measures to reduce general waste generation. Through technological innovation and processoptimization, we aim to enhance the comprehensive utilization of waste, thereby improving both environmental andeconomic performance in waste management.
◎ General Waste
Waste disposal from the company's key environmental supervision units in ????
Generated and recycled ?,???.?? tons of general industrial solid waste; ??.?? tons of hazardous wastewas transferred for disposal. All waste was entrusted to quali?ed units for compliant utilization ortreatment.Xiamen Jialu
Generated ???.?? tons of general industrial waste (e.g., stainless steel scrap, cardboard, wood, andiron), and ???.?? tons of hazardous waste. All waste was handled by quali?ed third parties.Haicang Golden Egret
SubsidiaryPerformance
A total of ?,???.?? tons of smelting slag and ??.?? tons of hazardous waste were generated. Both typesof waste were entrusted to quali?ed third parties for comprehensive utilization or compliant disposal.The waste includes ??.?? tons of general industrial waste and ??.?? tons of hazardous waste. Thehazardous waste and solid waste were entrusted to third-party entities for comprehensive utilizationor to quali?ed units for disposal.Transferred and recycled ???.?? tons of general solid waste and ??.?? tons of hazardous waste. Allwaste was handled by quali?ed units.Transferred and recycled ???.?? tons of general solid waste and ???.?? tons of hazardous waste. Allwaste was handled by quali?ed units.
Generated ??,???.?? tons of smelting slag, ??,???.?? tons of by-product gypsum, ?,???.?? tons offurnace slag, ???.?? tons of industrial waste, and ??.?? tons of externally transported waste, totaling??,???.?? tons. All waste was handled by quali?ed third-party recyclers.Malipo Haiyu Tungsten
Generated ?,???,???.?? tons of slag, including ?,???,???.?? tons of waste rock and ?,???,???.?? tonsof tailings; ?.?? tons of hazardous waste was transferred for disposal. A total of ?,???,???.?? tons ofslag was recycled in ????.Ninghua Xingluokeng
Transferred ??.?? tons of hazardous waste of Tongan Plant. General solid waste included ???.?? tonsof recyclable waste (e.g., non-metallic materials, scrap wood, and cardboard) and ???.?? tons ofnon-recyclable waste. All waste was handled by quali?ed service providers.Xiamen Golden Egret
Generated ?,???.?? tons of general industrial waste (e.g., spent saggers and bulk bags), and ??.?? tonsof hazardous waste, all of which were handled by quali?ed third-party entities.XWXN
Fujian Xinlu
Generated ??,???.?? tons of general solid waste and ?.?? tons of hazardous waste. All smelting slagand other solid waste were processed by third parties; hazardous waste was entrusted to quali?edentities for disposal.Generated ?,???,???.?? tons of slag, including ?,???,???.?? tons of waste rock and ?,???,???.?? tonsof tailings; ??.?? tons of industrial waste; and ??.?? tons of hazardous waste. A total of ???,???.?? tonsof slag was recycled during the reporting period.Duchang Jinding
A total of ??.?? tons of hazardous waste was handled by quali?ed third parties for comprehensiveutilization or compliant disposal.The industrial waste generated amounted to ?,???,??? tons, all of which was disposed of in the tailingspond. The hazardous waste transfer quantity was ?.?? tons, which was handed over to a quali?edthird-party for disposal.Luoyang Yulu
Transferred ??.?? tons of hazardous waste, all handled by quali?ed entities.Chengdu HongboMolybdenum
Generated ??.?? tons of general industrial waste (including spent furnace bricks and scrap iron), and
??.?? tons of hazardous waste, which were transferred for disposal.Golden Dragon Rare-earth(Rare Earth Industrial Park)
XTC Haicang BranchChengdu DingtaiChengdu Hongbo
industrialGolden Dragon Rare-earth (Industrial New Zone)
GANPOWER
At Ninghua Xingluokeng, general waste is primarily industrial in nature, including tailings and waste rock. Wemanage such waste through the following approaches:
At the rare earth materials production base, general waste generated during operations primarily consists ofindustrial waste. We manage this waste through the following measures:
In Duchang, general waste primarily includes industrial materials such as empty waste oil drums. The following measureshave been implemented to manage general waste:
Industrial solid waste is strictly prohibited from being dumped or piled in the external environment.Disposal of industrial solid waste into domestic waste collection facilities is forbidden.Mixing hazardous waste with industrial solid waste during collection, storage, or transfer is strictly prohibited.Tailings are stored in the tailings storage facility. The Safety and Environmental Protection Department and the Ore ProcessingDepartment are required to manage areas such as tailings pipelines, sand pump stations, and return water pump stations inaccordance with regulatory requirements to prevent any leakage.Waste rock is stored at the waste dump. The Mining Department is responsible for ensuring that waste dump managementmeets regulatory standards and that waste rock does not escape into the surrounding environment.
Disposal Status
Mining Operations
Advanced Materials Production
A manufactured sand production workshop has been added at the end of the ore bene?ciation process. Coarse-grained tailingsare processed and sold as manufactured sand, while the remaining tailings are stored in the tailings storage facility.We continue to improve waste rock separation and recycling technologies, as well as ore processing enrichment methods.Waste rock separated during the screening stage of ore processing is sold externally as construction aggregate, and theremainder is stored in designated waste rock dumps. These e?orts reduce waste rock discharge and enhance the comprehen-sive utilization of mineral resources.Domestic waste and other general waste are handled by licensed third-party service providers to ensure compliant disposal.
Waste from each workshop is accurately sorted by category and placed into designated bins or storage areas. Recyclablematerials are recovered and reused in a timely manner.The Safety and Environmental Protection Department is responsible for overseeing waste yard management, ensuring that alldepartments properly classify and store waste, and arranging for the regular disposal of domestic waste. Monthly inspections areconducted at all solid waste storage points to assess waste sorting and storage conditions.Domestic waste is handled by municipal sanitation service providers.Recyclable materials with resale value, such as metal drums and scrap iron, are sold through competitive bidding, whilelow-value materials such as wooden crates are collected by transport personnel as deductions against transportation fees.
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At the battery materials production base, general waste primarily includes industrial materials such as discardedsaggers, used bulk bags, cardboard, and pallets. The following management measures are in place:
At the Tungsten and Molybdenum Wire Division in Xiamen, general waste generated during operations mainlyincludes scrap metal, plastic waste, and waste paper. We manage such waste through the following measures:
Plastic bottles, plastic cylinders, and spools are sent to manufacturers for recycling and reuse.Miscellaneous plastic waste, waste paper (including newspapers and magazines), paperboard, cardboard packaging,paper trays, used beverage bottles, and aluminum cans are centrally collected and sold to recycling vendors for reuse.Tungsten or molybdenum containing scrap materials and lime sludge from wastewater treatment are collectedand sent to specialized manufacturers for recovery and treatment.
At the Alloy and Cutting Tools Division in Jiujiang, general waste primarily includes waste cardboard, discardedwooden pallets, wooden crates, and non-metallic materials. The following measures have been adopted:
Waste cardboard boxes must be ?attened and stacked properly; directly dumping empty boxes into waste storage areasis strictly prohibited.All woven bags must be securely tied or compacted before being placed in the waste storage area.Waste wooden pallets, wooden crates, and other wood waste are collected by the responsible department and transported to designated storage areas for organized stacking.Non-recyclable waste must be sorted and placed into garbage bags; direct dumping into the waste storage area is not allowed.Construction waste generated by contractors must be cleaned up on the same day and must not be left on company premisesor dumped in the waste storage area.
We strictly comply with the "Basel Convention" and relevant national regulations on hazardous waste management. Byimplementing a "source reduction?process control?safe disposal" strategy, we have established a full-lifecyclehazardous waste management system. In accordance with the "Pollution Control Standard for Hazardous WasteStorage" and the "Hazardous Waste Transfer Management Measures," we carry out standardized classi?cation, collec-tion, storage, and labeling of hazardous waste based on its speci?c characteristics. Certi?ed third-party institutions arecommissioned to conduct harmless treatment and disposal. In addition, we continuously optimize productionprocesses, replace hazardous raw materials, and regularly organize employee safety training and emergency drills tocomprehensively reduce the environmental risks associated with hazardous waste discharge.
◎ Hazardous Waste
At Ninghua Xingluokeng, hazardous waste generated during operations primarily includes used engine oil. Thefollowing measures are taken to manage hazardous waste:
During the tungsten smelting process, hazardous waste generated during operations mainly includes waste resin,waste mineral oil, wastewater sludge, paint waste, chemical reagent bottles, waste acid, and waste alkali. We managesuch hazardous waste through the following measures:
In Duchang, hazardous waste mainly includes waste mineral oil, waste paint, oil ?lters, and laboratory waste liquids.The following measures are in place:
Mining OperationsDeep Processing
Advanced Materials Production
We maintain detailed management logs that record the type, quantity, destination, storage, utilization, anddisposal of all general waste, ensuring full traceability and data transparency.All transportation, recycling, and disposal of general waste are carried out by quali?ed third-party serviceproviders under legally binding contracts that clearly de?ne environmental protection requirements.Designated storage areas for general waste are established within the facility. Pollution prevention measuresare implemented, including controls to prevent scattering, runo?, and leakage.
We promote cleaner production by adopting advanced technologies to minimize the generation of used oil and prioritize itscomprehensive reuse, thereby reducing hazardous waste discharge.Used oil that cannot be reused is stored safely, with dedicated management records maintained.The unit that generates the hazardous waste is responsible for its collection, temporary storage, and daily management, while theSafety and Environmental Protection Department oversees supervision and commissions quali?ed third-party agencies to ensurecompliant transfer and disposal.
Hazardous waste is centrally collected and transported to the hazardous waste storagefacility, with strict in-and-out registration and comprehensive ledger records maintainedfor all waste storage and disposal activities.Regular self-inspections are conducted at hazardous waste storage sites. Department-spe-ci?c responsibilities are clearly assigned, and ongoing improvements are made to ledgersystems and related infrastructure.A new exhaust puri?cation system has been installed in the hazardous waste storage area,enhancing environmental protection measures and improving the overall environmentalmanagement level of the facility.
We maintain a hazardous waste management ledger, and the Safety and Environmental Management Department reports the type,quantity, time of generation, and destination of hazardous waste on a monthly basis to strengthen overall control.Waste acid, waste alkali, and wastewater sludge containing cobalt and nickel are subject to integrated recycling to improveresource utilization e?ciency.Other types of hazardous waste are promptly transferred to the dedicated hazardous waste storage facility on-site for temporary storageand are ultimately disposed of by quali?ed third-party agencies.
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At the rare earth materials production base, hazardous waste primarily includes waste mineral oil and emptypackaging drums. We implement the following measures:
We strictly enforce internal regulations such as the "Environmental Protection Management Regulations" and the "HazardousWaste Management Regulations" and have established a leadership team dedicated to the prevention and control of hazardouswaste pollution to guide and oversee discharge management.A specialized hazardous waste storage room has been constructed, where appropriate warning labels are clearly posted,and corrosion-resistant, anti-leakage measures are implemented.Designated personnel are responsible for daily inspections and spot checks of the hazardous waste storage room to ensure safe and standardized storage conditions.All hazardous waste is transferred and disposed of in full compliance with legal and regulatory requirements by certi?edthird-party service providers.
At the battery materials production base, hazardous waste generated includes spent activated carbon, wastemineral oil, waste organic solvents, paint residues, and laboratory waste. We manage these materials through thefollowing practices:
At the Alloy and Cutting Tools Division in Jiujiang, hazardous waste mainly includes waste para?n, spent grinding?uid, asbestos waste, used oil drums, waste lubricating oil, and laboratory waste liquids. We manage this waste throughthe following measures:
A strict transfer protocol is followed: "collection by generating department → packaging and weighing → on-site con?rmationby the Safety and Environmental Department → labeling with hazardous waste tags → warehouse transfer and handover,"with detailed ledger records maintained for the entire process.All personnel handling hazardous waste must wear appropriate personal protective equipment (PPE). Handling without protection is strictly prohibited, and measures are taken to prevent spills or leaks during transport to avoid environmental contamination.Based on the characteristics of each type of hazardous waste, specialized containers are used for collection. Waste is temporarilystored in the workshop until a designated quantity is reached, at which point it is transferred in batches by designated personnelto the hazardous waste storage facility.The hazardous waste storage area is equipped with measures for leak prevention, spill containment, rain and sun protection,and is secured with locks to prevent environmental contamination and ensure safe, stable storage.All hazardous waste is disposed of by quali?ed third-party service providers. The entire transportation and disposal process isclosely supervised to ensure that vehicles and personnel meet all legal and regulatory requirements, guaranteeing safe andcompliant hazardous waste disposal.
At GANPOWER, hazardous waste generated during operations primarily includes spent activated carbon. We implementthe following measures to manage this waste:
In the extraction process, we use segmented washing and segmented back-extraction to reduce the oil content and COD inra?nate and ?nal products, which decreases the consumption of activated carbon by over ??%. We also collaborate withactivated carbon regeneration enterprises to enable multiple reuse cycles, thereby maximizing resource utilization.
Through process optimization at the front end, we have transformed the by-product of ourwastewater treatment processfrom sodium chloride to ammonium sulfate. After implementing oil-removal upgrades, the by-product now meetsagricultural fertilizer-grade standards and is sold to fertilizer manufacturers, enabling its recycling.
At Jiujiang Golden Egret, the company uses lean manufacturing as a foundation to strengthen its production capabilities. Byintegrating automation, it improves the e?ciency of large-scale product manufacturing and promotes standardized manage-ment of industrial solid waste. The use of automated packaging machines enables the reuse of packaging boxes, enhancingproduction e?ciency while reducing waste generation. In recognition of its outstanding performance in the "reduction,recycling, and harmless treatment" of industrial solid waste, the company was awarded the honorary title of "Zero-WasteFactory" in ???? by the O?ce of the Leading Group for the Construction of a "Zero-Waste City" in Jiujiang.Deep Processing
Secondary Resource Utilization
Highlight | "Zero-Waste Factory"A hazardous waste storage facility has been established for classi?ed collection and storage. Isolation barriers are installed withinthe storage area, and protection measures such as windproo?ng, sun protection, rain protection, leak prevention, and ?re safetyare implemented. Surveillance cameras are installed inside the hazardous waste storage facility to monitor real-time conditionsand ensure safe and secure storage.We organize regular hazardous waste management training sessions to improve employee awareness and handling capabilities.The Safety and Environmental Management Department exercises full-process supervision of hazardous waste management andperiodically arranges for the transfer and treatment of hazardous waste through licensed third-party service providers.We adopt clean energy and raw materials and utilize advanced production equipment to reduce the generation of hazardous wasteat the source.
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For key erosion-prone zones such as open-pit areas, waste rock dumps, and tailings storage facilities, we have implemented multipleecological protection measures, including enhanced vegetation coverage, the construction of diversion infrastructure, and theoptimization of sedimentation systems. These e?orts signi?cantly reduce the risk of soil erosion. Through careful design of multi-lev-el stepped dumping systems, we ensure minimal active excavation areas and maximize space for revegetation. This supports theformation of a green operational model that follows a staged sequence of "topsoil stockpiling ? waste rock compaction ? topsoilcovering ? ground leveling ? ecological revegetation." In doing so, we protect the environment while ensuring the responsibledevelopment of mineral resources.During the reporting period, we carried out extensive ecological restoration work at Xingluokeng. Native species such as pinesaplings, camellia trees, Chinese plum trees, Bauhinia, osmanthus, kudzu vine, and azalea were planted, covering a total revegetationarea of approximately ??,??? square meters.
At Ninghua Xingluokeng, we are implementing a sustainable mineral resource development strategy guided by the third-party-pre-pared plan titled the "Revised Plan for Geological Environmental Protection and Ecological Restoration of Ninghua Xingluokeng."Adhering to the principle of "ecology ?rst, dynamic restoration," we advance full-lifecycle environmental management of the mine.Our mine rehabilitation work is divided into three key stages: current remediation, concurrent production and restoration, andpost-closure reclamation. Targeted actions are implemented for each stage to achieve long-term ecological harmony between themining area and its surrounding ecosystems.
Focuses on addressing existing geological and environmental issues caused by mining activities. Key actions include mitigating theimpact of active mining on surrounding areas, implementing geological environment protection measures during mine construction,and reducing erosion risks through slope cutting and stabilization of exposed surfaces. Additional measures include improvingdrainage systems, reinforcing roads for transportation of tailings, planting vegetation along both sides of critical transport routes, andinstalling safety signage and protective barriers along village roads near tailings disposal areas.Entails implementing remediation measures alongside ongoing mining operations. Based on the progress and stages of mineralextraction, phased ecological restoration work is carried out while monitoring and maintaining the completed restoration zones. Inresponse to actual site conditions, adaptive ecological measures are adopted to strengthen the prevention of geological hazards.These include stabilizing slopes to prevent landslides, collapses, or erosion, and controlling water loss and soil erosion from runo?,thereby achieving a coordinated balance between mine development and environmental protection.Conducted within one year following the expiration of the mining license, focusing on comprehensive environmental restoration ofclosed mining sites. The work targets remediation of geological damage caused during the mining process, with a goal of completeecological rehabilitation. This ensures visible improvement in the geological environment of the mining area and facilitatesecosystem restoration.
In Duchang, we integrated the "stripping?dumping?revegetation" approach into mine development from the initial constructionphase. Adopting a "simultaneous mining and revegetation" model, we implemented site-speci?c ecological restoration measures forthe waste rock dump, open-pit areas, dedicated mining roads, industrial sites, and the Hushan tailings storage facility. In line withenvironmental restoration requirements, we also carried out revegetation of the decommissioned Qipanshan tailings storage facility,ensuring a ???% greening rate across the entire mining area.To minimize the potential ecological impacts of our operations, we have implemented comprehensive mine environmentalmanagement and monitoring measures:
We established and implemented an environmental monitoring system to conduct dynamic surveillance of ground deformation andgeological hazards in the tailings storage facility, waste rock dump, and mining areas, ensuring early identi?cation and e?ective response topotential environmental risks.
Leveraging our automated tailings safety monitoring system, we conduct real-time online monitoring of the starter dam's surfacedisplacement, internal (vertical) displacement, phreatic surface levels, pond water levels, dry beach areas, rainfall, pH levels, water quality,and site imagery. These data provide a scienti?c basis for safety management and decision-making for the tailings facility.
We enhanced stability monitoring at the Qipanshan tailings facility, incorporating it into our ?ood prevention inspections andmonthly safety checks. In addition, we continuously track the performance of restoration measures for key mining platforms, pitslopes, and tailings containment areas.
We fully recognize the potential ecological impacts of mining activities and regard the protection of ecosystems and biodiversity as akey component of our environmental responsibility. We actively seek pathways for harmonious coexistence between businessdevelopment and the natural environment.During mine planning and extraction, we uphold the principle of "protection during development, and development underprotection." We conduct thorough environmental impact assessments and optimize mining plans to minimize ecologicaldisturbance. A comprehensive ecological restoration system has been established for our mining areas. We carry out timelyreclamation and revegetation of mined-out and abandoned lands using native plant species to restore local ecological functions. Wehave designated ecological bu?er zones around environmentally sensitive areas near mining sites and implemented targetedprotection measures to mitigate the ecological footprint of our operations. In parallel, we continuously improve mining technologiesand waste management practices to reduce the environmental burden from tailings, waste rock, and other solid waste. These e?ortshelp prevent soil erosion and ecological degradation while supporting the coordinated development of mineral resource extractionand environmental protection. Our commitment to green transformation is re?ected in the recognition of both the Xingluokeng Minein Ninghua Xingluokeng and the Duchang Mine as national-level Green Mines.
Ecosystem and Biodiversity Protection
Geological Environment Restoration and Remediation in Mining AreaCurrentRemediationPhase
ConcurrentRemediation Phase
Post-ClosureRestoration Phase
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On April ??, ????, we conducted an emergency drill at Ninghua Xingluokeng simulating a tailings water over?ow incident at theseepage collection pond. The scenario involved a rapid and sustained rise in water level, leading to untreated tailings water?owing into a downstream stream. During the drill, we activated our emergency response protocol, deployed emergencypersonnel to manage the situation swiftly, and conducted real-time monitoring of downstream water quality. Guided by ouremergency response plan, departments coordinated closely, and the simulated incident was brought under e?ective controlthrough orderly and e?cient response actions.
?On September ??, ????, XTC Haicang Branch carried out a hydrochloric acidleak emergency drill. The scenario focused on the sudden release of hazardouschemicals. Each emergency response team acted swiftly according to thepre-established plan, successfully completing critical tasks including perimetersecurity and evacuation, material supply, medical aid, emergency monitoring,and hazard containment.
We regularly organize environmental protection training programs to help employees gain a solid understanding ofpollution prevention measures, environmental emergency response procedures, and the requirements of our environ-mental management system. Training sessions are delivered through case studies, scenario simulations, and hands-ondrills to enhance practical application. In addition, we have established an environmental training e?ectivenessevaluation mechanism. Through assessments and feedback, we ensure that employees are well-versed in environmen-tal compliance requirements and can e?ectively integrate them into daily operations.
◎ Environmental Protection Culture
We strictly comply with the "Environmental Protection Law of the People's Republic of China," the "EnvironmentalImpact Assessment Law of the People's Republic of China," and all applicable environmental regulations in the regionswhere we operate. We have established a comprehensive environmental compliance management system to ensurethat all business activities adhere to relevant environmental laws, regulations, and standards. Internally, we have issuedthe "Guidelines for Standardized Environmental Protection Management" and other related policies, which de?ne clearrequirements for environmental impact assessments, compliance monitoring, environmental risk control, andemergency management. We regularly monitor and identify changes in applicable environmental laws and regulationsand promptly update internal management systems to ensure consistency with legal requirements. We have integratedenvironmental compliance obligations into our day-to-day operations and decision-making processes, with clearlyde?ned environmental responsibilities at all organizational levels. Senior management is responsible for setting andimplementing environmental management objectives, overseeing policy execution, and continuously improving ourenvironmental management practices.During the reporting period, we had ?? subsidiaries certi?ed under the ISO ????? Environmental Management System,covering ??% of our manufacturing entities. No major environmental incidents occurred during the year, and we did notreceive any environment-related administrative penalties.
Environmental ComplianceManagement
◎ Environmental Risk ManagementWe place a high priority on managing environmental risks associated with our business operations. Adhering to theprinciples of "prevention ?rst, full-process management, and continuous improvement," we have established asystematic and comprehensive environmental risk control mechanism to support sustainable corporate development.We implement a tiered and categorized environmental risk management approach by scienti?cally assessing andidentifying critical risk points. Key risk areas and high-risk operational processes are subject to heightened monitoringand control. An environmental risk early warning mechanism has been established with de?ned monitoring indicatorsand threshold values to enable the early identi?cation and intervention of potential risks. A complete environmentalemergency response system has been developed, supported by trained response teams, specialized equipment, andessential materials. Regular emergency drills are conducted to strengthen our ability to respond to unexpectedenvironmental incidents. In our daily operations, we strengthen the management of environmental protection facilitiesby applying preventive maintenance and technical upgrades to reduce the risk of equipment failure. We also optimizeproduction processes and the selection of raw materials to reduce environmental risk factors at the source.We have instituted a comprehensive environmental risk accountability system that clearly de?nes responsibilities at allorganizational levels and incorporates environmental risk management into our performance evaluation system.Through regular risk assessments and hidden hazard investigations, we continuously improve control measures andenhance our capacity to prevent environmental risks. Additionally, we emphasize communication and collaborationwith surrounding communities and stakeholders. We have established information-sharing platforms and jointprevention and control mechanisms to build a coordinated regional environmental risk prevention network.In terms of environmental emergency preparedness, we have formulated a series of contingency plans, including the"Comprehensive Emergency Response Plan for Environmental Incidents," and developed an annual environmentalemergency drill schedule. During the reporting period, we organized multiple emergency drills across key safety-relatedfacilities. Scenarios included wastewater pipeline leaks, hazardous chemical spills, environmental equipment failures orshutdowns, natural gas leaks, underground fuel tank leaks, unexpected ozone leaks, and solid waste spillage.
Highlight | Tailings Water Over?ow Emergency Drill
Highlight | Hydrochloric Acid Leak Emergency Drill
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Developing a circular economy holds signi?cant value for both enterprises and society. It o?ers an e?ective response toresource scarcity, meets increasingly stringent environmental regulations, and ful?lls growing consumer demand forgreener practices. In addition to optimizing resource costs, a circular approach enhances supply chain resilience. Wehave integrated the concept of a circular economy into our business operations and are committed to building aresource-recycling value chain. Through systematic innovation and full-process management, we continuously improveresource e?ciency, reduce environmental impact, and contribute to global climate goals and sustainable development.We actively promote the recycling and reuse of resources. To improve the e?ciency of our mining operations, wecontinue to optimize bene?ciation processes by introducing waste rejection and non-metallic mineral separationstages, thereby reducing unit ore processing consumption and increasing the comprehensive utilization of resources. Inaddition, we leverage our strengths in hydrometallurgy to expand the recycling and reuse of resources in tungsten, rareearths, and battery materials, driving the advancement of a closed-loop resource recovery system.
Circular Economy
At Ninghua Xingluokeng, we have advanced the circular use of resources through the implementation of wasterejection processing and non-metallic resource recovery projects.Waste Rejection Project
By rigorously screening and discarding low-grade ore, we have e?ectively reduced energy consumption during the bene?cia-tion process. Discarded ore is further crushed and sold as construction material. Additionally, substandard sand and gravelproduced during processing are also sold as construction-grade aggregates. This approach not only promotes resource reusebut also enhances economic performance. During the reporting period, the total volume of waste rock and processedby-products sold externally reached ?,???,??? tons, including ?,???,??? tons of crushed stone, ???,??? tons of tailings sand,???,??? tons of dense-media tailings, and ?,??? tons of feldspar. The total volume of waste rock and related by-productstransported o?site was ???,??? tons, including ???,??? tons of crushed stone, ??,??? tons of quartz, and ?,??? tons ofsecondary products.
Non-Metallic Resource Recovery Project
This initiative focuses on the advanced processing and comprehensive utilization of tungsten tailings generated duringbene?ciation. In May ????, Phase I of the project was successfully completed and a production line was put into operation.The facility is capable of processing ?,??? tons of tailings per day, e?ectively reducing the environmental burden associatedwith traditional tailings storage. By applying advanced separation and puri?cation technologies, we extract high-qualitynon-metallic mineral powders such as feldspar and quartz from tungsten tailings. Owing to their unique physicochemicalproperties, these powders have promising applications in the production of new building materials, ceramics, and high-endmicrocrystalline glass. The project not only supplies high-quality raw materials to downstream industries but also creates anew economic growth point for the mining site, achieving both environmental and economic bene?ts.
At the tungsten smelting base in Haicang, we have developed a stepwise separation technology based on materialcharacteristics at di?erent processing stages. We pioneered a high-energy, high-rate precipitation technology andequipment for ammonium tungstomolybdate, enabling the e?cient recovery of molybdenum as a by-product oftungsten hydrometallurgy. During the reporting period, the Haicang base recovered a total of ??? tons of metallicmolybdenum, contributing RMB ??.?? million in pro?t.At the tungsten production base in Ganzhou, we addressed the challenges of spent tungsten-containing lubricatingoil, which previously could not be reused due to slow sedimentation and potential safety hazards. We introducedcentrifugal separation equipment capable of e?ciently separating tungsten sludge from used lubricants. The recoveredtungsten sludge is repurposed as general solid waste, while the puri?ed lubricating oil—now signi?cantly lower inimpurities—can be reused in production, thereby reducing hazardous waste disposal. The centrifuge enables therecovery of up to ??? kilograms of waste lubricating oil per day, e?ectively promoting the e?cient recycling of resources.At the molybdenum production base in Chengdu, we installed a hydrogen recovery unit to reduce energy loss andsupport hydrogen recycling. The system integrates advanced technologies such as scrubbing, gas-liquid separation,cooling and dehumidi?cation, and molecular sieve drying to capture hydrogen generated during industrial processes.By incorporating molecular sieve regeneration technology with a full regeneration cycle of ?? hours, the system ensuresa continuous and high-quality supply of hydrogen, achieving e?cient circular utilization of this resource.
Gas collection
tank I
Roots blowerExternalhydrogen
Regenerationcooler IChiller
Chilledwater unit
Steam-waterseparator II
Dryer I
Regenerationcooler II
Recoveredhydrogen
Scrubbing
tower
Steam-water
separator I
Gas collection
tank II
Reduction
furnaceCondensatedrain
Dryer II
Regenerationcooler IElectricfurnace
Hydrogen Recovery System Work?owAt the rare earth materials production base in Changting, we have adopted the following measures to promoteresource circularity:
In Duchang, we are actively advancing a comprehensive mineral resource utilization project. Upon implementation,the project is expected to generate an additional ??? tons of tungsten metal and ?? tons of molybdenum metalannually, signi?cantly improving the overall recovery e?ciency of valuable mineral elements and further promotingresource circularity.
Mining Operations
Advanced Materials Production
We plan to complete Phase I of our rare earth secondary resource recycling project by ????, which will enable the processing of ??,???tons of rare earth waste annually and signi?cantly improve resource recovery e?ciency.We have reclassi?ed solid waste generated during the processing of rare earth permanent magnet materials as by-products that meet therequirements of the "Recycled Materials from the Production and Processing of NdFeB Magnets" (GB/T ?????-????) national standard,including dry powder, magnetic sludge, and block scrap, which are now sold externally rather than treated as solid waste. Given ourannual magnet material production of approximately ?,??? tons, this initiative is expected to reduce solid waste generation by around?,??? tons, including a reduction of approximately ?,??? tons of magnetic sludge, with a magnetic sludge recovery rate of about ??%.During the reporting period, we sold approximately ?,??? tons of NdFeB recycled material, generating both environmental and economicbene?ts.We reuse certain waste materials such as dust from electrolytic processes. A total of approximately ??? tons of waste was reused duringthe reporting period, further supporting resource circularity.We replace conventional packaging materials with more cost-e?ective alternatives and optimized packaging design to reduce materialconsumption. As a result, we achieved cost savings of approximately ? million RMB during the reporting period.
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Technical Upgrade Project for the Battery Crushing Process
At our battery materials production base, we implement the following measures to promote resource recycling:
At the Cutting Tool Division, we conduct the following measures to promote resource circularity:
At the toolholder and tool body production base, we have introduced a cutting ?uid circulation and ?ltrationsystem. This system puri?es used cutting ?uid from machine tools, restoring it to production-grade quality for reuse.This reduces the purchase of new cutting ?uid, lowers the water required for waste treatment, and decreases thedischarge of hazardous waste, thereby mitigating negative environmental impacts.
We are committed to the development of technologies for recycling tungsten and other high-value metals such ascobalt, nickel, and rare earth elements. Through independent innovation, we have developed globally advanced, clean,and green recycling technologies for tungsten, including short-process, low-energy-consumption recycling solutions forspent batteries. We operate three major recycling bases, including our tungsten scrap recycling facility in South Korea,all equipped with world-class automated production lines. These bases recover valuable metals such as tungsten,cobalt, nickel, and rare earths to enhance the e?ciency of primary mineral resource utilization and support sustainabledevelopment in the tungsten, new energy, and rare earth industries.In the cascade utilization process, we recycle used battery packs through procedures including battery collection,charging and testing, and grading by pack type for second-life applications. The recovered battery packs are reused inproducts such as energy storage systems, backup power supplies, low-speed vehicles, solar-powered streetlights, andother power-related devices.We have established a complete regeneration system for end-of-life power batteries, featuring dedicated lines fordischarging, high-temperature pyrolysis, crushing and separation, leaching, solvent extraction, and evaporativecrystallization. The system has an annual processing capacity of ??,??? tons, including spent batteries, battery scrap,cathode and anode waste, and nickel-cobalt residues.At GANPOWER, we are committed to building an integrated and synergistic model for the lithium battery industry thatpromotes complementary strengths, interconnected resources, and shared growth across enterprises. Throughequity-based partnerships, we have consolidated upstream and downstream industrial resources to form a verticallyintegrated supply chain system that spans "materials ? batteries ? new energy vehicle manufacturing ? power lithiumbattery recycling." As a result, we have become a trusted service provider for numerous renowned domestic andinternational automakers and battery manufacturers. To further strengthen our recycling network, we have establishedcollection sites in multiple provinces across China, covering East, Central, North, West, and South China. Each siteoperates with a ?exible response mechanism, maintaining a ???-kilometer service radius. We ensure on-site batterycollection within ? days, transportation to processing centers within ? days, and full battery data reporting within ??days. All transportation vehicles are licensed for the transport of hazardous materials and are equipped with ?reextinguishers and other safety and environmental protection systems. Dedicated custom-designed logistics containersare used to guarantee safe and environmentally sound transportation.During the reporting period, our technical upgrade project for the battery crushing process was o?cially approved andpublicly disclosed through the Environmental Impact Report issued by the Ganzhou municipal authorities. The projectfocuses on the front-end pretreatment of spent lithium batteries and does not involve downstream hydrometallurgicalor comprehensive recovery processes. All additional feedstock for the expanded facility is sourced from retired lithiumbatteries that have already undergone cascade utilization by upstream enterprises, thereby further enhancing ourprocessing capacity for end-of-life batteries.
We are also increasing the proportion of recycled content in the raw materials used for lithium cobalt oxide (LCO)production. In alignment with our business sustainability goals, we have established recycled content targets forproduction materials. During the reporting period, our LCO materials received an ISO ????? self-declared environmen-tal claim for recycled content, with recycled cobalt content reaching ≥??.?% and recycled lithium content ≥?%.
We have established a recycling system for precursor production scrap. Defective materials generated during the precursormanufacturing process are recovered for the extraction of reusable metal resources and transformed into standardized rawmaterials.We have implemented a comprehensive dust control project, installing dust collectors in workshops to capture and recyclematerial dust back into the production process.At Ningde production base, iron-containing discharge materials from the ternary materials manufacturing process are treatedthrough a wet iron removal process to eliminate magnetic impurities. These materials are then reintroduced into productionthrough a three-step calcination and mixing process for e?ective recovery.
In partnership with third-party service providers, we have implemented a pallet leasing project. Plastic pallets are cleaned andreused, enabling circular use of pallets across the entire supply chain.
General industrial solid waste such as iron-contaminated materials, used ?lter cloths, and washed bulk bags are collected andsent to our materials company for centralized recovery and disposal.Bulk bags used in the production process are reused up to ?? times under guaranteed quality conditions, while those used incalcination processes can be reused up to ?? times.
New equipment installationsWe added an oxygen-free shredding and crushing system to the existing crushing workshop, with anannual processing capacity of ??,??? tons. The pretreatment workshop was upgraded with new equip-ment such as dual-shaft shredders, crushers, and grinders, increasing processing capacity by ?,??? tonsper year. We also deployed two additional crushing and screening systems speci?cally for waste cathodeand anode sheets, with a combined annual capacity of ?,??? tons.Process improvementsWe introduced automated feeding systems and enclosed crushing and sorting lines. The upgradedprocess involves dual-stage crushing, screening, magnetic separation, and air classi?cation to e?cientlyseparate valuable components. The particle size of recovered electrode powder is controlled to below ?millimeter to enhance product quality and recovery e?ciency. The complete process includes disassem-bly, oxygen-free shredding, low-temperature drying, crushing and screening, grinding, and gravity-basedseparation, forming an e?cient and closed-loop system for spent battery recycling.Reinforced material recoveryWe apply scienti?cally sound methods to recover valuable materials such as metals and graphite, whileproperly handling membrane materials and electrolyte waste to minimize environmental impact.
Deep Processing
Secondary Resource Utilization
We collect and reuse tungsten-containing dust (sludge) from dust collectors and sedimentation tanks, as well as non-conformingproducts, defective blanks, and scrap materials, by reintroducing them into the production process.We recover materials such as waste cardboard, discarded woven and plastic bags, scrap iron, wood waste, and o?cuts ofexpanded polyethylene foam to maximize resource utilization.We reuse automatic packaging boxes to reduce the consumption of packaging materials.Used graphite products are returned directly to the manufacturer for recycling.Grinding waste is sold to tungsten smelters for material recovery.
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Social
Rural Revitalization and Social ContributionsInnovation-drivenSuppliers and ClientsEmployees
Social Matters???? Management GoalsPractical Measures
The sustainable development of a company is closely linked to the progress of society. We have always regarded ful?llingsocial responsibility as our mission, actively responding to the United Nations Sustainable Development Goals (SDGs), andcreating lasting value for employees, partners, and communities through tangible actions. We actively address communityneeds by supporting education, empowering skills, and engaging in public welfare projects to help vulnerable groups develop,thereby promoting inclusive social growth. We place great importance on diversity, equality, and career growth for employees,o?ering an inclusive work environment, skill training, and ensuring employee rights and well-being. In supply chain manage-ment, we implement responsible procurement policies to ensure labor rights, safety standards, and ethical compliance. Wealso actively explore the application of technological innovation in key social areas to provide technological support fornarrowing development gaps, ful?lling our long-term commitment to "business for good."
Position the enhancement of social well-being as a coreaspect of corporate social responsibility by responding tothe national rural revitalization strategy. Leverage corporateresources to support localized employment, industrialassistance, educational funding, infrastructure develop-ment, and ecological protection through systematic actionsthat promote the coordinated development of rural andcommunity economies, society, and the environment.Prioritize communication and collaboration with communi-ties, respect local cultures, and encourage integration andinteraction between employees and community residents tofoster social harmony.Regularly conduct Social Impact Assessments (SIA) tocomprehensively evaluate the e?ects of business operationson economic development, the environment, socialwell-being, and cultural integration, ensuring mutualprosperity between the company and local communities.
Strengthen community engage-ment, adhere to the FPIC principle,and ensure that all operational sitescarry out local communityengagement, impact assessments,and development planning.Enhance local hiring to promoteregional employment andeconomic development, aiming forlocal employees to account for noless than ??% of the total workforcethis year.Carry out philanthropic donationsand volunteer activities, with a totalof no less than ?,??? hours ofvolunteer service in ????.Continue to increase R&D investment,with total R&D spending for the yearno less than ?.? billion RMB.Achieve a ???% completion andacceptance rate for key corporate-lev-el R&D projects and internallycommissioned R&D initiatives.Strengthen intellectual propertyprotection, with no fewer than ???new patent applications ?led duringthe year and zero involvement inintellectual property dispute cases.
Build a comprehensive and multi-level R&D andinnovation system led by independent innovation anddriven by market demand. Continuously enhance ourindependent innovation capabilities and globalcompetitiveness through sustained R&D investment,strengthened research management, deepercollaborative innovation, talent cultivation, technologi-cal breakthroughs, and e?ective transformation ofresearch outcomes.Place strong emphasis on intellectual property (IP)protection by formulating internal IP managementpolicies, standardizing IP administration andsafeguarding procedures. Establish a strict con?denti-ality mechanism for technical secrets, clearly de?ningaccess scope, usage rights, and approval processes forpersonnel involved in sensitive information.
Rural Revitalizationand SocialContributions
Innovation-driven
Communicated thecompany's Human RightsPolicy and relevant laborlaws and regulations to allemployees.No administrative penaltieswere incurred during theyear due to discriminatoryemployment practices.The training programs cover???% of the workforceduring the year.The occupational injury rateremained below ?‰ duringthe year.There were zero work-relatedfatalities among employeesand external contractors.No major safety hazardsidenti?ed by provincial ornational safety inspectionsled to o?cial supervision,suspension of operations,penalties for responsiblepersonnel, or inclusion in thesafety compliance"blacklist."Zero incidents occurredinvolving major safetyaccidents, major mechanicalequipment failures, orsigni?cant ?re accidents.
We uphold the principle of equal employment and strictly comply withnational labor laws and regulations. At every stage of recruitment,hiring, and promotion, the company ?rmly prohibits any form ofdiscrimination, including but not limited to gender, age, ethnicity,religion, region, or physical condition, to ensure fair employment anddevelopment opportunities for all employees.We respect the human rights protections stated in the International Billof Rights, the United Nations Guiding Principles on Business and HumanRights, and the ILO Declaration on Fundamental Principles and Rights atWork. Human rights due diligence has been incorporated throughoutour operations. We have established systematic internal policies and ahuman rights impact assessment mechanism to regularly identify,prevent, and mitigate potential risks in business activities.A multi-level and multi-channel communication system has beenestablished, including the trade union committee, employee representa-tive congress, sta? forums, harmonious labor relations committee,feedback collection, satisfaction surveys, democratic evaluations, andinternal mailboxes. The company values open communication, respects,and safeguards the democratic rights of employees as granted by theConstitution and relevant laws.We place great importance on employee career development and arecommitted to providing comprehensive support for employee growth.A well-developed employee development system has been implement-ed to o?er a variety of training and learning opportunities, helpingemployees improve their professional skills and overall capabilities.By considering employee performance and industry salary benchmarks,the company has built a compensation system that integrates valueorientation with market standards.We attach great importance to occupational health and safetymanagement. By adhering to the principle of safety ?rst, prevention-ori-ented, and comprehensive management, we are committed to creatinga safe and healthy working environment for employees, suppliers,contractors, and other stakeholders.
Continuously improve supplychain management systemsand strengthen ESGassessment and evaluationof suppliers.Deepen collaboration onsustainable developmentwith suppliers by promotingjoint ESG capability-buildinginitiatives.Practice responsibleprocurement by consistentlyconducting due diligence onresponsible minerals.Enhance customersatisfaction with zeroviolations related to healthand safety of products andservices, and no incidents ofcustomer privacy breachesduring the year.Strengthen informationsecurity management,achieving zero majorinformation securityincidents in ????.
Place high importance on the security and stability of the supplychain, regarding risk management and resilience building as corecomponents of our global supply chain strategy. Through systematicrisk control improvements, we ensure end-to-end supply chainsecurity, while establishing long-term collaboration mechanisms withstrategic suppliers to build a resilient and sustainable global supplynetwork.Establish a responsible mineral management system encompassingpolicy formulation, supplier oversight, risk prevention, and emergencyresponse. By continuously enhancing transparency in the mineralsupply chain, we contribute to the sustainable development of theresource industry.Treat business partners of all sizes equally by creating a transparentsupplier evaluation system that ensures fair competition opportuni-ties for small and medium-sized enterprises during bidding processes.Regard product safety and quality as the cornerstone of ourdevelopment. We have built a rigorous quality control system thatspans the entire lifecycle—from R&D and production to delivery andafter-sales—across our three core businesses: tungsten-molybdenum,new energy materials, and rare earths, ensuring compliance withsafety standards and performance requirements at every stage.Uphold a customer-centric approach, emphasizing service excellenceand satisfaction. We actively listen to customer feedback, optimizeservice processes, and enhance customer experience to providereliable and secure products and services to clients worldwide.Actively contribute to the construction of a healthy industryecosystem by participating in the formulation and revision of relevantindustry standards. We maintain close partnerships with variousindustry associations and serve in key positions, o?ering professionalinsights and practical experience to promote the standardization andsustainable development of the industry.
Suppliersand Clients
Employees
Social Matters???? Management GoalsPractical Measures
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◎ Community Engagement for Shared Prosperity
DiverseFeedbackChannels
We have set up hotlines, emails, social media platforms, corporate websites, and on-site suggestion boxes to ensurethat community residents can express their concerns at any time and receive prompt responses and resolution.
RegularCommunicationMeetings
We organize community forums and public consultation sessions to introduce our business operations, environmentalmanagement, and sustainable development plans. These meetings allow us to gather community feedback, ensuringthat stakeholder concerns are fully addressed and incorporated into our decision-making process.TransparentCommunicationand Cooperation
At each of our operational sites, we have established dedicated departments responsible for community communication.We maintain open and transparent communication channels with local governments, communities, and indigenousresidents to foster information sharing, ensuring alignment between business development and community needs.Key IssueManagement
We proactively and openly communicate on key community concerns such as noise, waste, water resource protection,and transportation. We regularly engage with surrounding communities, formulate reasonable response measures,and develop long-term development plans.EmergencyCommunicationMechanism
For major issues that could impact the community, such as new project construction, environmental changes, orproduction adjustments, we issue advance noti?cations and organize special discussion sessions, invitingcommunity representatives to collaborate on response measures. This helps reduce uncertainty and enhancescommunity participation.GrievanceMechanism andContinuousImprovement
Throughout the entire project process, we provide accessible and e?ective grievance channels. We encouragestakeholders to submit complaints regarding community concerns, operational impacts, and satisfaction. We ensurethat the grievance handling process is fair, transparent, and complies with con?dentiality requirements. Each projectteam regularly reviews the progress of community communication, evaluates the e?ectiveness of the grievancemechanism, and optimizes it based on community feedback, fostering e?cient two-way communication andcontinuous improvement.
In terms of the environment,we assess the impact ofmining, processing, andother production activitieson local air, water, and soilquality, and adopt pollutionprevention measures toensure e?ective protection ofthe ecological environment.
In terms of economy andemployment, we analyze ourcontribution to the localeconomy, including theprovision of job opportunities,support for the development oflocal businesses, and promotionof community residents’integration into the industrialvalue chain to achieve sustain-able economic growth.
In terms of society and health,we pay close attention to theimpact of our operations on thehealth, safety, and quality of lifeof community residents, anddevelop risk prevention andhealth support plans, such asvocational skills training and freecommunity health consultations,to enhance communitywell-being.
As a vital pillar of the national economy, state-owned enterprises bear the dual responsibility of demonstrating leadership andproviding strategic support in rural revitalization. We always uphold the mission of being a "national pillar" and align our strategyclosely with the national rural revitalization strategy, actively ful?lling our social responsibilities. Leveraging our advantages, wepromote the modernization of agriculture and rural areas through multi-dimensional measures, including industrial support, talentdevelopment, and infrastructure construction. We place great emphasis on maintaining regular communication with local communi-ties and actively engage in various volunteer and public welfare activities. By building a collaborative network involving the govern-ment, local residents, and enterprises, we ensure that our development is closely integrated with the creation of social value.
Rural Revitalizationand Social Contributions
On this basis, we have established a comprehensive community interaction mechanism, which includes the following elements:
We place great importance on communication and collaboration with the community, respecting local culture, and promotingthe integration and interaction between our employees and community residents to foster social harmony. In the process ofproject investment and construction, if there are issues related to land occupation, involuntary resettlement, or relocation ofresidents, we will maintain full communication with the a?ected communities. Together, we will negotiate and develop compen-sation or resettlement plans, and prioritize providing employment opportunities, among other measures, to minimize adverseimpacts. At the same time, we will incorporate the opinions and concerns of community stakeholders into our business assess-ments and decision-making processes, transforming them into long-term risk mitigation and operational optimization measures.
We view community communication and collaboration as an integral part of our operational development. By establishingmulti-stakeholder dialogue mechanisms, we maintain positive interactions with stakeholders. In our daily operations, we openvarious communication channels, regularly collect and respond to suggestions from di?erent parties, and enhance communica-tion e?ciency and inclusiveness. We adhere to the internationally recognized "Free, Prior, and Informed Consent" (FPIC)principle, respecting local cultures and community rights. Feedback from stakeholders is incorporated into our decision-makingprocesses, ensuring that the voices of vulnerable and marginalized communities are fully heard, and we continue to promotecollaborative development between our business and the community.Community Interaction Mechanism
We regularly conduct Social Impact Assessments (SIA) to comprehensively analyze the economic, environmental, social welfare,and cultural integration impacts of our operations. This ensures that our development is mutually bene?cial and symbiotic withthe community. We adhere to the principles of fairness and trust, respecting the "Free, Prior, and Informed Consent" (FPIC)principle. During project planning and construction, we disclose relevant information at appropriate times and thoroughlyexamine the potential social impacts of our activities on the community, including environmental, health, safety, and residents'rights. We identify potential risks and implement corresponding mitigation and response measures. This approach helps ensurealignment of our business objectives with community development goals and fosters sustainable community relations.
Social Impact Assessment
We regard the enhancement of social well-being as a core component of our corporate social responsibility and are committed topromoting sustainable community development through systematic initiatives. In terms of economic development, we drivelocal employment and support regional growth by prioritizing local hiring. In the area of education, we continue to advancescholarship and ?nancial aid programs, including the establishment of dedicated funds to support equitable access to education.On the environmental front, we advocate for green production and environmental protection while steadily improving localinfrastructure to enhance residents' quality of life. We also encourage our employees to engage in volunteer services, o?eringpractical support to community members. During the reporting period, our external donations totaled ?.?? million RMB, with acumulative ?,???.?? hours of volunteer service and around ??? participants involved in volunteer activities.
Social Support Services
Our social impact assessment work mainly includes the following:
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In ????, XWXN (Sanming) donated ? air conditioners and ?? electricfans to Yanqian Middle School in Sanming City, improving theventilation conditions in classrooms. Malipo Haiyu Tungsten donatedRMB ?? thousand for the renovation of the playground at PanlongPrimary School in Mali Town and contributed teaching materials andsupplies worth RMB ??.?? thousand, enhancing the campus teachingenvironment.
Upholding the concept of "teaching people how to ?sh," we haveestablished a vocational skills appraisal station to provide a structuredpathway for skills assessment. By involving social forces in thecultivation of skilled talent, we are building a standardized system forskills certi?cation and training. This initiative supports workers inobtaining industry-recognized quali?cations, advances their careerdevelopment, promotes stable employment, and provides long-termsupport for sustainable community development. In ????, XiamenGolden Egret developed transitional appraisal plans for four job typesunder two occupations—Cemented Carbide Precision MachiningWorker and Cemented Carbide Forming Worker—which were approvedby the Fujian Provincial Department of Human Resources and SocialSecurity and the Xiamen Municipal Bureau of Human Resources andSocial Security.
Since ????, Xiamen Honglu has established a long-term philanthropicpartnership with the Jimei District Special Education School,continuously carrying out volunteer services and paired assistanceactivities to provide care and companionship for children withautism—often referred to as "children of the stars." On World AutismAwareness Day in ????, Xiamen Honglu participated in the launch eventof the "Joining Hands with Children of the Stars, Lighting Up the NightSky of Life" medical assistance initiative, co-organized by Jimei DistrictSpecial Education School and West China Xiamen Hospital of SichuanUniversity. At the event, the company made a targeted donation of RMB?? thousand dedicated to supporting integrated treatment involvingmedical care, rehabilitation, and education for children with autism,helping enhance their self-care and social adaptation abilities, andjointly illuminating a brighter future for these special children.
In ????, due to continuous heavy rainfall and upstream water in?ow,the water level at Poyang Lake Duchang Station rose rapidly, creatinga severe ?ood prevention situation. Duchang Jinding organizedpersonnel to visit the ?ood prevention embankment at the TutangTownship Government and the ?ood prevention duty points at theYangfeng Township Government. They visited frontline ?oodprevention sta? and provided them with relief supplies such as instantnoodles, bottled water, and eight-treasure porridge, o?ering practicalsupport for ?ood prevention e?orts.
In ????, Duchang Jinding carried out a "Golden Autumn Scholarship"donation event in Yangfeng Township and Tutang Town, providingscholarships totaling RMB ?? thousand to ?? university freshmen,along with study and living supplies. Meanwhile, XTC Haicang Branchdonated scholarships to students in Haicang Village, Qingjiao Village,Qunyao Village, Wencuo Village, and other areas under HaicangSubdistrict, encouraging students to grow and succeed.
In ????, XWXN (Xiamen) organized employees to volunteer in Haicang Community, Xiamen, participating in winter camps,summer tutoring programs, and other community services. The volunteers provided homework assistance, educational crafts,waste sorting awareness, storytelling about revolutionary history, and movie guidance, working together to support the growthof local youth.
Mutual Empowerment of Industry and Talent
We have built a multi-level support system centered on "industry-driven development, resource integration, andlivelihood security" to inject multidimensional momentum into sustainable community development. We prioritize theemployment of local residents and promote a dual approach that combines job creation with skill enhancement. Thisenables community members to improve their employability and fosters a growth pathway of "employment access ?skill development ? career advancement," thereby contributing to local employment and economic growth. During thereporting period, local employees accounted for ??.?? % of our total workforce.
Community Education Support
We focus on the development of community education by implementing measures such as scholarship support andinvestment in campus facilities, aiming to improve local teaching conditions and education standards, while safeguard-ing the healthy growth of children.
Collaborative Environmental Management
We collaborate with the local community to promote co-construction of the ecological environment. Through environ-mental protection campaigns, green public welfare activities, and other initiatives, we encourage residents to activelyparticipate in environmental protection and enhance their awareness of sustainability. Additionally, we continuouslymonitor the surrounding environmental quality and strive to improve the regional ecology.
Highlight | Xiamen Golden Egret Vocational Skills Appraisal Station
Highlight | Caring for Children and Adolescents
Highlight | Caring for Children of the Stars
Highlight | Flood Prevention Support
Highlight | Scholarship Program
Highlight | Campus Supplies Donation
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In ????, Bobai Judian organized company employees to carry out a road beauti?cation charity event, creating a cleaner andhealthier living space for the community.
In ????, ?? members of the Communist Party from XWXN(Xiamen) visited the New Era Civilization Practice Station inHaicang Community to carry out a volunteer service themed"Party Members Enter the Community, Warming the Hearts ofthe Elderly." They personally taught elderly residents how touse smartphones, organized suitable recreational activitiesfor them to help improve mobility, enhance reaction abilities,and enrich their daily lives. During the Double Ninth Festival,XWXN (Xiamen) held the "Warm Autumn, Sending Care,Double Ninth Festival Comforts the Heart" themed event.Employees brought daily necessities and visited elderlyresidents facing di?culties in their lives, delivering holidaygreetings directly to their homes.
In ????, Mapoli Haiyu Tungsten donated RMB ?? thousand through the Malipo County Charity Association to support therenovation of the Nanfeng Xiaozhai Village Activity Center, aiming to improve the usability of rural public spaces. Anadditional RMB ?? thoursand was donated to the Makun Village Committee of Donggan Town to support the construction ofa "Beautiful and Green Countryside" with a focus on ecological restoration and the enhancement of rural aesthetics. BobaiJudian made a designated donation of RMB ?? thousand toward the construction of the "Bobai Mingxian" Park, supportingimprovements to the rural ecological environment and the development of recreational spaces for local residents.
In ????, Duchang Jinding donated a total of RMB ?.?? million in funds and materials to localtowns and village committees, supporting projects such as road reconstruction, public squarepaving, streetlight installation, drainage system optimization, bridge construction, andinfrastructure improvements around schools, addressing the daily transportation and livingconvenience needs of villagers. Ninghua Xingluokeng invested RMB ?.??? million in multipletowns for infrastructure construction and disaster-damaged facility repairs, contributing to therestoration and enhancement of rural infrastructure.
In ????, Jiujiang Golden Egret supported local agricultural cooperatives by directly procuring grapes from the RunyuEcological Planting Cooperative in Pailou Village, Chaisang District, Jiujiang City, helping expand their sales channels. LuoyangYulu continued to purchase local soybean products from Luanchuan County, providing long-term material assistance and lifesupport to a struggling family, helping them improve their living conditions.
In ????, Luoyang Yulu responded to the voluntary blooddonation call from Luanchuan County and organizedemployees to participate in the blood donation activity. At thedonation site, employees completed the registration, healthinquiry, physical examination, and testing procedures in anorderly manner under the guidance of sta?. Those who metthe conditions proceeded with the blood donation. Many ofthe participating employees expressed their intention tocontinue supporting public welfare and actively participate invarious social service activities within their capabilities.
◎ Industrial Support for Rural Revitalization
Diversi?ed Community Volunteer Services
Carrying out public welfare volunteer activities is an important way for the company to ful?ll its social responsibility. Weactively organize employees to engage in various volunteer services within the community, such as health clinics,volunteer services, holiday visits, and cultural support, building a bridge of love between the company and thecommunity, and spreading warmth and positive energy.
Highlight | Beautifying the Community Environment
Highlight | Caring for Elderly Residents
Highlight | Employee Voluntary Blood Donation Activity
Highlight | Procurement Support for Agricultural Product
Highlight | Support for Rural Infrastructure Improvement
Highlight | Support for Beautiful Countryside Construction
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We actively respond to the national Rural Revitalization Strategy, fully leveraging our resource advantages, and promote ruralrevitalization through a multi-dimensional approach. This includes systematic measures such as industrial support, educa-tional assistance, infrastructure development, and ecological protection, aimed at fostering the coordinated development ofrural economy, society, and environment.
We focus on the XTC Technology Research Center as the core, with subsidiary and division-level research institutes as keycomponents. We have formed close alliances with leading enterprises, research institutes, and universities in the industry. Inline with national strategies and market demands, we continuously invest in research and development, strengthen researchmanagement, deepen cooperative innovation, cultivate innovative talent, and promote technological breakthroughs andthe transformation of results. These e?orts enable us to continuously enhance our R&D innovation capabilities, driving thehigh-quality development of our company.We have set up China National R&D Center for Tungsten Technology, National and Local Union R&D Center for High-endEnergy Storage Material, and the Fujian Province Rare Earth Materials and Applications Engineering Research Center. Bysteadily advancing integrated product development (IPD) and international advanced manufacturing (IAM) system construc-tion, we fully leverage the role of these three centers. Our R&D innovation focuses on areas such as hard alloys, refractorymetals, optoelectronic crystalline materials, permanent magnetic materials, and their applications, continuously enhancingour R&D capabilities. This provides strong technical support for our business development and industrial chain layout.
Technological innovation is the core driving force behind our sustainable development. We continue to improve our researchand development innovation system, creating a comprehensive and multi-level framework that is guided by independentinnovation and oriented toward market demand. This system continuously enhances our independent innovation capabili-ties and global competitiveness. We are committed to building ourselves into a hub for talent, technological innovation, andindustrial development, aiming to be a leader in technological innovation within the industry.◎ R&D and Innovation System
Our IPD system covers all business units and subsidiaries involved in R&D activities, combining industry-academia-researchcollaboration and joint technological breakthroughs for industry-wide synergy. Through open collaboration, we havestrengthened our innovation capabilities. During the reporting period, we focused on advancing the IPD ?.? pilot tasks,actively establishing product line organizations. These organizations serve as the core business units, with clear boundariesof authority and responsibility, integrating resources across R&D, marketing, and sales, improving cross-departmentalcollaboration e?ciency and product line management capabilities. We also emphasized the development of operationaltalent, implementing special programs to enhance the professional skills of product managers and systems engineers.Furthermore, through demonstration projects, we have deepened the application of IPD, strengthened market insight, andensured that product innovations have both economies of scale and sustained competitive advantages.
Concept ReshapingCapability ImprovementOrganizational Optimization
System Construction
System Construction: Build the IPD system model, whichincludes four core processes: demand management,planning management, technology development, andproduct development, as well as ?ve supporting modules(Project Management, Standardized Management, Organiza-tional Development, Performance Evaluation, and SustainedImprovement), ensuring the e?ective separation oftechnology development and product development.
Establish a full-chain market-oriented mechanism and acomprehensive quality control system throughout theentire product lifecycle, while innovatively implementinga new product pro?t-sharing plan.
High-Quality Product Creation
Innovation-driven Development
"Interfacial Regulation and Mechanical Performance Enhancement ofUltra?ne-Grained WC-Co Cemented Carbides": In collaboration with Beijing University ofTechnology, this project focuses on understanding the mechanical behavior, deformation, andfailure mechanisms of ultra?ne-grained cemented carbides under various loading conditions.It aims to determine the microstructural characteristics and evolution of the hard phase,binder phase, and interfaces under di?erent loads, thereby providing guidance for the designand preparation of high-performance cemented carbides."Mechanism Study on Composite Material Machining and Optimization of Hole-Mak-ing Tool Structure": Partnering with Shanghai Jiao Tong University, this project explores themechanisms a?ecting the cutting performance of composite material tools. It focuses onoptimizing the structure of hole-making tools used in aerospace composite materials toaddress drilling defects in composite and laminated structures during actual machiningapplications in the aerospace sector."Interfacial Micro/Nanostructure Regulation and Application of Gradient Coatings":
Conducted in collaboration with Wuhan University of Technology, this project targets thedevelopment of coatings for cutting tools. It investigates the formation mechanisms, phasecomposition, and structural e?ects of gradient coating interfaces on microstructure andperformance. The project aims to systematically understand the intrinsic relationship betweeninterface characteristics and coating performance, and to develop high-performance gradientcoatings for typical milling applications."Design and Development of High-E?ciency and High-Precision Tools for High-SpeedMachining": In collaboration with Xiamen University, this project focuses on the design ofcutting tools for high-speed machining of hard-to-machine materials such as superalloys andtitanium alloys. By integrating arti?cial intelligence algorithms with production trials, theproject establishes performance and life prediction models for tools. It examines the impact oftool structure and material parameters on tool performance and proposes new designmethodologies for high-speed cutting tools, supporting the development and application ofe?cient and precise tooling solutions.
Highlight | Collaborative R&D Projects
Establish a multi-layered trainingsystem to break down the "R&D silo"mentality, strengthening marketorientation and cross-departmentalcollaboration.
Implement a product line businessmodel, subdivide accounting units,and establish a product managerresponsibility system.
Build a three-dimensional coursesystem and develop technicaltalents through a combination oftraining and practical combat,creating a versatile innovative team.
To enhance our continuous product innovation capability and build a world-leading frontier core technology platform, we haveintroduced and implemented the Integrated Product Development (IPD) system. This system is designed through ?ve strategicinitiatives: "Concept Reshaping, System Construction, Organizational Optimization, Capability Improvement, and High-QualityProduct Creation," aimed at constructing an innovative ecosystem to achieve scienti?c and e?cient forward development. Ourgoal is to transition from "catching up" to "keeping pace" and ultimately to "leading." The ?ve strategic initiatives are as follows:
Integrated Product Development
Responsible research activities are central to mitigating the risks of non-compliance or infringement, promoting thee?ective conversion and application of research results, and enhancing market competitiveness and in?uence. During thereporting period, we developed the "Guidelines for Responsible Research Behavior," setting principles for research activities,including "advancing human well-being, respecting the rights to life, adhering to fairness and justice, managing risksappropriately, and maintaining openness and transparency." We require researchers to strictly follow scienti?c ethics,research integrity standards, and relevant legal provisions when conducting research activities. The guidelines outlinespeci?c conduct requirements for research topics and implementation, data management, literature application, author-ship, research publication, ethical review, academic exchanges and collaborations, and intellectual property protection.
Responsible Research and Development
We actively promote close collaboration between industry, academia, research, and application by establishing jointlaboratories and o?-campus training bases. We strengthen collaborative research with overseas research institutions andleading domestic scienti?c research institutes in areas such as fundamental research and cutting-edge technologies. Wework closely with universities such as Xiamen University, Fuzhou University, Wuhan University of Technology, BeijingUniversity of Technology, Guangdong University of Technology, and Huaqiao University to carry out project cooperation. Wehave also taken the lead in several national major research projects, including the National Key R&D Program, NationalScience and Technology Major Projects, and the Technology Innovation Guidance Program. During the reporting period, wecarried out ?? R&D cooperation projects.
R&D and Innovation Collaboration
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R&D Project Managers Training
We held ? training sessions for R&D project managers, with ??? participants,all of whom passed the R&D project manager certi?cation.We held ? training session for exceptional systems engineers, with ?? participants,all of whom passed the systems engineer certi?cation.
We held ? training session for IPD advocates and practitioners, with ?? participants.
We have developed and continuously improved the"Science and Technology Innovation Reward ManagementMeasures," setting up Science and Technology InnovationAchievement Awards and Outstanding Scienti?c TalentAwards. R&D personnel are rewarded based on the level oftechnological innovation and economic bene?ts after arigorous evaluation process.
We have developed and continuously improved the "NewProduct Management Measures," implementing aresearch outcome conversion revenue-sharing mecha-nism. For projects successfully converted, ??% of the netannual revenue generated within three years will beallocated as innovation rewards for the R&D team orindividuals.◎ R&D and Innovation AchievementsTechnology OutputResearch Support and Investment
Tech-nicalHonorsPatentsR&D InputTechnology ProfessionalsResearch Platform
?? national-level
platforms
?，??? science andtechnology personnel
Annual investment accounts for
?.??% of the revenue?，??? authorized patents??? technical honors at alllevels
We attach great importance to the cultivation of technical talent and continuously build a high-quality, high-level technicalteam. For the technical research and development team, we rely on research institute platforms and strengthen the basicskills and R&D capabilities of our personnel through project-based research and development. For the technical manage-ment team, we focus on the company's strategic positioning and global perspective. We adopt a problem-orientedapproach and use various training methods, such as group coaching and case analysis, to enhance their technical manage-ment capabilities.We have developed key competency packages for technical talent development to solidify the foundation of talentcultivation, continuously improving the technical talent system and echelon construction. This provides strong talentsupport for our innovative development. During the reporting period, we developed ?? key task learning packages focusedon intellectual property capabilities and organized multiple technical talent training programs:
Technology Talent Cultivation
To continuously stimulate innovation, we have established and improved the R&D innovation incentive mechanism.Through diversi?ed incentive measures, we e?ectively motivate technical personnel, enhancing their enthusiasm andcreativity, which injects continuous talent-driven power into our R&D innovation e?orts and drives technological innovationand the transformation of research achievements. Speci?c incentive measures include:
R&D and Innovation Incentives
TechnicaHonors?? national-level science and technology honors?? provincial and ministerial-level scienceand technology honors?? municipal-level science and technology honors
???? R&Dexpenses are?,???.??million RMB
R&D InputPatents?,??? national patents??? international patents?,??? invention patents??? utility model patents??? design patents
Research PlatformTechnology Professionals
National Enterprise Technology CenterNational Tungsten Materials Engineering Research CenterNational and Local Joint Engineering Research Center forHigh-end Energy Storage Materials? National Technology Innovation Demonstration Enterprise? Postdoctoral Research Workstations? National CNAS LaboratoriesNational Specialized Innovation Space for Rare Metal ApplicationInternational Cooperation and Exchange BaseNational Torch Xiamen Tungsten Materials Featured Industry BaseXiamen Huli District Demonstration Base for the Transformation andUpgrading of Foreign Trade in Non-ferrous Metal Materials
? experts with special allowancesfrom the State Council?? professional level chief engineers?? talents at the provincialand ministerial level?? individuals with doctoral degrees??? individualswith master's degrees
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During the reporting period, we were newly approved for one municipal-level R&D platform, the XiamenAdvanced Electrochemical Energy Storage Technology Innovation Consortium. As of the end of the reportingperiod, we operate a total of ?? R&D platforms, including ?? national-level platforms, ?? provincial-levelplatforms, ?? municipal-level platforms, and ? district-level platforms.
Intellectual
Property
StandardFormulation
andRevision
R&DPlatforms
During the reporting period, we undertook a total of ?? R&D projects at various levels, including ?? at thenational and provincial levels, such as major projects from the Ministry of Industry and Information Technolo-gy, the National Key R&D Program, provincial "Leading in the 'Battle?eld' by Announcing" projects, and majormunicipal science and technology projects. Additionally, ?? were group-level major projects.Scienti?cAwardsHonors
andQuali?cations
During the reporting period, we and our subsidiaries received ?? scienti?c and technological awards atvarious governmental levels, including ? at the provincial level, ? at the municipal level, and ? at the industrylevel. We were also recognized with ?? honors and quali?cations, including National Green Factory, NationalExcellent Smart Manufacturing Scenario, and Fujian Provincial Leading Enterprise in Manufacturing.
R&DProjects
During the reporting period, we ?led ??? new patent applications, including ??? for invention patents, ??? forutility models, and ?? for design patents. We were granted ??? new patents, including ??? invention patents,??? utility model patents, and ?? design patents. Additionally, we ?led ?? new trademark applications,obtained ?? new trademark registrations, and registered ?? new copyrights.As of the end of the reporting period, we held a total of ?,??? patents, including ?,??? invention patents, ???utility model patents, and ??? design patents. We also held ??? registered trademarks and ??? registeredcopyrights.During the reporting period, we and our subsidiaries led or participated in the formulation or revision ofmore than ?? standards.???? Awards for R&D Achievements
Development of High-Performance Ceramic Balls for Miningand Key Low-Carbon Grinding TechnologiesDesign, Development and Application of High-E?ciencyFlotation Reagents for Typical Critical Mineral ResourcesKey Technologies and Industrialization of High-Performance TungstenCarbide and Cemented Carbide New MaterialsParticle Size Gradient Cemented Carbide Prepared by Liquid PhaseIn?ltration and Its Preparation Method (ZL????????????.?)Multi-Component Composite Oxide Material and Its IndustrialPreparation Method (ZL????????????.?)
Key Technologies and Industrialization of High-StrengthMolybdenum Alloy Wire for EDM (Collaborative Project)Localization of Cutting Tools for E?cient Machining ofCritical Aircraft ComponentsKey Technologies and Industrialization of High-StrengthMolybdenum Alloy Wire for EDM (Collaborative Project)Precision Simulation Design, Software Developmentand EngineeringApplication of High-Performance Cutting Tools (Collaborative Project)
Development and Industrialization of Binder-Free TungstenCarbide-Based Cemented Carbide for Ultra-Precision Optical Molds(Collaborative Project)
Key Technologies and Industrialization of Enhanced Fine Tungsten OreHydrophobic Agglomeration Flotation Using Metal-Based ColloidalCollectors (Collaborative Project)
First Prize for China Nonferrous Metals IndustryScience and Technology AwardFirst Prize for Hunan Province Scienti?cand Technological ProgressSecond Prize for Henan ProvinceScienti?c and Technological ProgressSecond Prize for Fujian ProvincePatent AwardThird Prize for Fujian ProvincePatent Award
Third Prize for Scienti?cand Technological Progress in Fujian ProvinceSecond Prize for Fujian Province Scienceand Technology Achievement Transformation
First Prize for Scienti?cand Technological Progress in Xiamen CityThird Prize for Scienti?cand Technological Progress in Xiamen City
First Prize for Scienti?cand Technological Progress in Xiamen City
Second Prize for Scienti?cand Technological Progress in Fujian Province
AwardsProjects
???? Main R&D and Innovation Honors and Quali?cations
LevelAccredited EntityHonor/Accreditation Title
Fujian Provincial Leading Enterprise in ManufacturingEnterprise under the Advanced Manufacturing Industry Multiplication Plan
?th Fujian Provincial Government Quality AwardInnovative SME of Fujian ProvinceNational Green FactoryHenan Province Single Champion Enterprise in Manufacturing
Provincial Green Factory of Henan Province
Enterprise under the Advanced Manufacturing Industry Multiplication PlanEnterprise under the Advanced Manufacturing Industry Multiplication Plan
National High-tech Enterprise
"Top ??? Manufacturing Enterprises in Chengdu" awarded by the Chengdu Enterprise Federation
Excellent Smart Manufacturing Scenario?th Fujian Provincial Government Quality AwardEnterprise under the Advanced Manufacturing Industry Multiplication Plan
National High-tech EnterpriseEnterprise under the Advanced Manufacturing Industry Multiplication PlanProvincial Specialized and Sophisticated "Little Giant" FirmEnterprise under the Advanced Manufacturing Industry Multiplication Plan
ProvincialMunicipalProvincialProvincialNationalProvincialProvincialMunicipalMunicipalMunicipalNationalSub-provincialMunicipalNationalProvincialMunicipalNationalMunicipalProvincialMunicipal
XTC
LuoyangGolden Egret
Golden DragonRare-earth
NinghuaXingluokeng
JiujiangGolden Egret
Haicang Golden EgretXiamen Honglu
Chengdu Dingtai
XWXN
XTC(Hydrogen)XWXN (Ningde)XTC(Jinglu)
"Top ??? Enterprises in Luoyang" awarded by the Luoyang Enterprise Confedera-
tion and the Luoyang Entrepreneurs Association
The "???? Fifth China Nonferrous Metals Innovation Excellence Program Team"
awarded by the Nonferrous Metals Society of ChinaBasic Electronic
Material
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Standards Formulated by Company and Subsidiaries (as Editor-in-Chief or Co-Editor) in ????
Standard NumberType
Entity Serve asEditor-in-Chief orCo-EditorStandard Name
GB/T ?????-????GB/T ????.?-????GB/T ????.?-????GB/T ?????.?-????GB/T ?????.?-????GB/T ?????.??-????
GB/T ?????-????GB/T ?????.?-????WB/T ????-????SN/T ????-????T/CESA ????—????T/DZJN ???—????
National levelNational levelNational levelNational levelNational levelNational levelNational levelNational levelIndustry levelIndustry level
Group levelGroup level
XTC (Co-Editor)Hardmetals—Determination of contents of metallic elements
—X-ray ?uorescence spectrometryMethods for chemical analysis of hardmetals—Part ?:Determination of tantalum and niobium content—Inductively coupled plasma emission spectrometryHardmetals—Metallographic determination of microstructure—Part ?：Photomicrographs and descriptionGrades of cemented carbide—Part ?:Grades of cemented carbide
forrock drilling and engineeringChemical analysis methods for non-rare earth impurities of rare earthmetals and their oxides—Part ??: Determination of minor amounts of?uorineand chlorine in rare earth oxides—Ion chromatography method
Determination of compacted density oflithium-ion battery cathode material powderMethods for chemical analysis of lithium cobalt oxidePart ?:
Determination of cobalt content EDTA titration
and potentiometric titrationNew Energy Vehicle Worn-outPower Battery Logistics Service Quality Evaluation IndicatorsTechnical speci?cation for green-design product assessment
- Lithium ion batteryTechnical requirements for zero-carbon factory evaluation of
lithium-ion battery cathode materials
Determination of cobalt, copper and manganesecontent in crudecobalt hydroxide - Wavelength dispersive X-ray ?uorescence
spectrometry (fused cast bead method)
Chemical analysis methods of mixed rare earth oxide of ion-absorptionrare earth ore—Part ?：Determination of iron trioxide content—Inductively coupled plasma atomic emission spectrometry
XTC (Co-Editor)Xiamen Golden Egret(Co-Editor)Xiamen Golden Egret(Editor-in-Chief)XTC (Co-Editor)Xiamen Golden Egret(Editor-in-Chief)Golden DragonRare-earth(Editor-in-Chief)Golden DragonRare-earth(Co-Editor)XWXN(Editor-in-Chief)XWXN (Co-Editor)XWXN(Editor-in-Chief)XWXN(Editor-in-Chief)XWXN(Editor-in-Chief)
GANPOWER
(Editor-in-Chief)
XTC (Co-Editor)
We place a high value on intellectual property protection and have established clear guidelines through the formulationof the "Patent Management Measures," which address patent ownership, application, utilization, and rewards. Thesemeasures are in alignment with internal management systems related to intellectual property, including the "NewProduct Management Measures," "Technology Innovation Management Implementation Guidelines," and "CommercialSecret Management Regulations," ensuring the standardized management and protection of intellectual property.Furthermore, we have developed the "Five-Year Intellectual Property Development Outline (Trial Version)" andestablished an intellectual property management model to provide strategic direction for the management of intellec-tual property at our headquarters and subsidiaries. We have also created the "High-Value Patent Cultivation Guidelines"to o?er clear guidance and standards for the cultivation of high-value patents at both our headquarters and subsidiar-ies. During the reporting period, we did not face any intellectual property disputes.To e?ectively protect the company's trade secrets from leakage or theft, we have established a strict con?dentialitymechanism for technical secrets. This includes categorizing trade secrets into di?erent levels, with strict restrictions onthe scope of knowledge, custody, usage rights, and approval processes for con?dential personnel. We reward individu-als who promptly report incidents of leakage or take proactive measures to mitigate or reduce losses. On the otherhand, personnel who violate con?dentiality regulations will be penalized, and legal responsibilities will be pursued inaccordance with the law.
◎ Intellectual Property Protection
We place great emphasis on the professional development of our technical research and development personnel in thearea of intellectual property. During the reporting period, focusing on the learning and growth of intellectual propertywithin the group's technical sequence, as well as training practices and assessment management requirements, wedeveloped the Group's "Intellectual Property Certi?cation Implementation Plan for Various Levels of TechnicalSequence." This plan includes multiple normative documents and training materials, such as the "Intellectual PropertyLearning Guidelines for Technical Sequences" and the "Intellectual Property Capability Training and AssessmentPractice Guide." These resources aim to enhance the awareness of intellectual property risk prevention among our R&Dpersonnel and improve their ability to manage and serve intellectual property matters.In addition, we actively promote the development of an intellectual property culture. Led by the company's technologycenter and in collaboration with our a?liated enterprises, we have continuously organized the "XTC IntellectualProperty Awareness Week." This initiative includes a series of activities such as the "IP Torch Relay" lectures, knowledgecompetitions, skill contests, themed salons, and mock court sessions. These activities are designed to strengthen theawareness and education of intellectual property protection, enhance the intellectual property protection conscious-ness of all employees, and establish the philosophy of "respect for knowledge, admiration for innovation, integrity andcompliance, and fair competition." We aim to create a positive corporate environment that respects and protectsintellectual property.
On April ??, ????, our Technology Center, in collaboration with the People'sCourt of Huli District and the Huli District Market Supervision Administration,organized a trade secret mock court. The mock trial simulated a technicalsecret infringement dispute based on a real case. Key employees from oursubsidiaries, including Xiamen Golden Egret, Xiamen Honglu, XWXN, as well asour legal team, attended the trial. After the session, we engaged in discussionswith the judges on legal issues related to trade secrets, gaining deeper insightsinto the practical aspects of trade secret protection.
Highlight | Trade Secret Mock Court
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XWXN implements a multi-dimensional supplier evaluation and tracking mechanism. Based on the selection and evaluationresults, supplier pro?les are established, focusing on factors such as corporate management, the e?ectiveness, compliance, andsustainability of quality management systems, environmentally friendly production practices, and after-sales service quality.Suppliers are required to provide complete supply chain maps to ensure material batch traceability. Annual supplier reviewsand monthly performance tracking are conducted, utilizing surveys, on-site audits, and third-party feedback. Suppliers areregularly evaluated across multiple dimensions, including quality, delivery, price, service, and business growth. Suppliers whoseverely fail to meet agreements or receive an annual evaluation score below ?? points will be eliminated.
We place great emphasis on the security and stability of our supply chain, making risk management and resilience building keyelements of our global supply chain strategy. Through systematic risk management improvements, we ensure that the entiresupply chain process remains secure and controllable. We continuously optimize our global supply chain layout to e?ectivelymitigate potential risks arising from geopolitical factors and unforeseen events. At the same time, we establish long-termcollaboration mechanisms with strategic suppliers to create a global supply network that is both resilient and sustainable.
◎ Supply Chain Security and Resilience
We adhere to the development strategy of "advance steadily, endeavor to enhance the market share, and focus onlong-term interests," focusing on building a customer-demand-oriented supply chain management system to providetop-quality products and services. We have established long-term strategic partnerships with core suppliers, continu-ously enhancing the overall competitiveness of our supply chain through joint research and development, technologysharing, and process optimization. At the same time, we actively listen to customer feedback and integrate it quicklyinto the supply chain improvement process. By deepening supply chain collaboration and innovation, we work withour suppliers and customers to build a sustainable industrial ecosystem.
Suppliers and Clients
Supplier AdmissionDuring the quali?cation review phase, we systematically collect data on the reputation, product quality, and compliancerecords of potential partners, prioritizing those with environmentally friendly practices. Suppliers undergo comprehensiveevaluation prior to collaboration through sample testing, material production line veri?cation, development entry audits,and on-site validation. We also focus on the suppliers' quality and environmental management systems (such as ISO?????, ISO ?????, ISO ????, IATF ?????), as well as certi?cations such as RoHS, HF, SVHC, CNAS, and CMA.We require all quali?ed suppliers to sign agreements, including the Supplier Agreement, Business Ethics Agreement,Supplier Integrity Commitment, and Quality Assurance Letter, committing to comply with our standards on business ethics,environmental protection, occupational safety and health, labor rights, and product quality. We also continuously monitorsuppliers' ESG performance through a dynamic tracking system.Supplier Evaluation
We have established a comprehensive supplier evaluation system that covers multiple dimensions, including qualityperformance, operational e?ciency, environmental management, and social responsibility. We assess suppliersthrough self-evaluation submissions, desk evaluations, and on-site audits. The evaluation considers key performanceindicators such as incoming material acceptance rate, management systems, delivery capability, price levels, after-salesservice, environmental management systems, and R&D capabilities, while also focusing on the environmental andsocial impact of the suppliers' products and services.Based on the evaluation results, we implement a supplier grading system. Suppliers who do not meet the standards arerequired to take corrective actions, and those with unsatisfactory corrective measures may face downgrading, reducedorders, or elimination. Additionally, we have established a supply chain reserve and emergency management mecha-nism, with a list of quali?ed and backup suppliers, and de?ned emergency response procedures to reduce the risk ofsupply chain disruptions and enhance supply chain resilience.
Highlight | Supplier Multi-Dimensional Evaluation and Tracking
In ????, Golden Dragon Rare-earth conducted an emergency drill for a tin metal supply disruption, simulating a scenario wherethe original supplier's supply was interrupted due to a lack of inventory. During the drill, Golden Dragon Rare-earth swiftlyactivated its emergency response mechanism, communicated the urgent procurement needs, and organized relevantdepartments to develop an emergency plan. They also expedited the sourcing of materials from backup suppliers andcoordinated logistics resources to ensure timely delivery of the emergency materials. Based on issues identi?ed during the drill,such as insu?cient safety stock, Golden Dragon Rare-earth improved its safety stock settings and adjusted supplier supplyshare allocations, further enhancing the supply chain's emergency response capabilities.
Highlight | Emergency Drill for Material Supply Disruption
In ????, Golden Dragon Rare-earth conducted a special ESG training for the supply chain, focusing on de?ning responsibilitymanagement objectives, interpreting regulatory elements, and analyzing supplier codes of conduct and cooperationagreement terms. This training aimed to communicate the company’s social responsibility and green supply chain manage-ment requirements to suppliers. By developing a standardized training system, we helped suppliers precisely understandsustainable development demands, signi?cantly improving their awareness of responsibility and their compliance manage-ment capabilities. This initiative facilitated the deep integration of ESG governance, transforming it from a concept intopractical operations.
Highlight | ESG Special Training
We have established a strict Supplier Code of Conduct, setting clear requirements for our partners in areas such as humanrights protection, labor standards, environmental protection, and business ethics. Additionally, we have developed asystematic evaluation and monitoring mechanism to ensure that the principles of sustainable development are integratedthroughout the procurement process, continually improving our responsible sourcing system.Responsible Sourcing
Supplier Training
We have established a regular and diversi?ed supplier communication mechanism through site visits, email communi-cation, industry forums, and on-site audits, fostering long-term and stable partnerships with our suppliers. Additionally,we regularly conduct supplier capability-building training to help our partners improve their ESG managementpractices, working together to build a responsible supply chain ecosystem.
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We adhere to responsible business principles throughout the entire mineral procurement process. We follow guidelines such asthe United Nations Guiding Principles on Business and Human Rights, China's Guidelines for Social Responsibility in OutboundMining Investments, Chinese Due Diligence Guidelines for Mineral Supply Chains, and the OECD Due Diligence Guidance forResponsible Supply Chains of Minerals from Con?ict-A?ected and High-Risk Areas. We are committed to respecting human rightsand avoiding support for con?ict. We explicitly oppose any activities or actions that may fund or potentially fuel con?icts andensure that our supply chain is free from con?ict minerals or mining practices that violate human rights. Currently, we haveestablished a responsible mineral management system that covers aspects such as policy development, supplier management,risk prevention, and emergency response. Through continuously enhancing transparency in the mineral supply chain, wepromote the sustainable development of the resource industry.
◎ Responsible Mineral Management
In addition, we have established a transparent grievance mechanism for procurement to better receive complaints andsuggestions from stakeholders regarding mining, trading, processing, exporting, and responsible minerals. Thismechanism safeguards the legitimate rights and interests of all stakeholders. Upon receiving a grievance, our relevantdepartments initiate a series of procedures including identi?cation, investigation, and corrective actions, while strictlyprotecting the con?dentiality of the complainant’s identity.
The responsible mineral due diligence work carried out in relevant business segments includes:
we have developed a tungsten supply chain due diligence process and created relevant documents such as the "ResponsibleMineral Veri?cation Process Assessment Manual," "Due Diligence Supplier Questionnaire/On-site Investigation Report," and"Identi?cation of Con?ict-A?ected and High-Risk Areas (CAHRA) Process." These documents are used to assess whether the supplychain contains con?ict-a?ected and high-risk areas (CAHRA) de?ned by the OECD guidelines and in line with RMAP standards, andto de?ne the risks associated with the countries of origin and the types of risks involved. Once high-risk factors are identi?ed, wewill conduct enhanced due diligence, participate in upstream veri?cation mechanisms recognized by RMI, and work with relevantparties to develop risk mitigation plans. If the supplier's performance does not improve within the agreed reasonable time frame,or the risks are not mitigated or eliminated, we will activate the risk warning mechanism, temporarily halting or suspendingcooperation with upstream suppliers. Additionally, we compile an annual "Responsible Mineral Supply Chain Due DiligenceManagement Report" every ?? months and disclose it externally.
we conduct quali?cation reviews for all materials containing lithium, nickel, and cobalt, as well as their corresponding supplychain suppliers involved in mining, supplying, purchasing, or processing. Potential suppliers are assessed through theResponsible Cobalt Initiative (RCI), which includes due diligence on environmental and ethical compliance. We implementtraceability management to monitor the supply process and the origin of mineral resources, including transportation routesand mining locations. This is to ensure that cobalt raw material suppliers are not involved in human rights violations such aschild labor or poor working conditions. During the reporting period, our battery material production sites issued ResponsibleMineral Supply Chain Declarations to partnered suppliers and collected signed con?rmations from them. The completion ratereached ???%, and no responsible mineral supply chain risks were identi?ed.
In the tungsten smelting production process
In the battery material production segment
We are committed to treating business partners of all sizes equally. By establishing a transparent supplier evaluationsystem, we ensure that small and medium-sized enterprises (SMEs) have fair opportunities to compete during thebidding process. We provide SMEs with reasonable payment terms and equitable order allocation mechanisms,avoiding discriminatory thresholds or overly burdensome commercial conditions, thereby safeguarding their legitimaterights and fostering a fair and inclusive supplier partnership ecosystem.In dealing with SME suppliers, we strictly uphold our commitment of “no extension of payment terms, no delayedpayments,” ensuring timely ful?llment of payment obligations. We have also implemented an accounts payablemonitoring mechanism, whereby the procurement and ?nance departments of each a?liated entity regularly reviewand audit payment reports, closely track payment progress, and e?ectively ensure the ?nancial stability of SMEsthrough timely fund recovery.
◎ Equal Treatment to Small and Medium-sized Enterprises
XTC Haicang Branch actively builds a responsible mineral management system. The branch has appointed a Supply Chain DueDiligence Manager responsible for overseeing the tungsten product supply chain due diligence management system. This roleensures that all aspects of the supply chain, from supplier development, raw material procurement, logistics and warehousing,production, to delivery, comply with supply chain due diligence management requirements, promoting the in-depthimplementation of due diligence management for tungsten products.
In ????, XWXN organized a specialized training on mineral supply chain due diligence management. The training covered topicssuch as the international mineral due diligence management framework, supply chain risk identi?cation, compliancerequirements, and due diligence processes. It aimed to help employees gain a deep understanding of the key elements ofmineral supply chain management, enhance compliance and control capabilities in practical business operations, and furtherstrengthen the foundation of mineral supply chain management to ensure alignment with industry standards and internationalsustainable development requirements.
Highlight | Tungsten Product Supply Chain Due Diligence
Highlight | Mineral Supply Chain Due Diligence Training
We follow the requirements of the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Con?ict-Af-fected and High-Risk Areas" and have established the "Supply Chain Due Diligence Management System." We regularlycommunicate responsible mineral and supply chain-related policies to upstream suppliers and incorporate due diligencerequirements into legally binding agreements. For suppliers potentially involved in con?ict minerals, they must sign the"Responsible Supply Chain Commitment" after obtaining quali?cation before establishing formal cooperation. We organizeannual visits to major suppliers and incorporate responsible mineral management requirements into the assessment processto avoid potential risks arising from the procurement of minerals that may directly or indirectly fund armed groups or involveserious human rights violations.
Mineral Supply Chain Management
We refer to the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Con?ict-A?ected andHigh-Risk Areas" and the "Chinese Due Diligence Guidelines for Mineral Supply Chain" for framework and implementationsteps. We systematically carry out supply chain due diligence, building a risk management system that covers the entireprocurement cycle. This helps deepen supplier compliance reviews and traceability management to ensure the security ofthe mineral supply chain.
Responsible Minerals Due Diligence
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◎ Safety and Quality of Products and Services
We continuously strengthen our raw material quality control and testing system to ensure that purchased materials fullycomply with relevant quality, safety, and environmental standards. During the production process, we prioritize the useof environmentally friendly materials and clean production processes, ensuring that the entire production processcomplies with regulations on hazardous substance control, relevant laws, and industry standards. We strictly prohibitthe use of low-quality or harmful substances to reduce the occurrence of quality issues and safety risks. Additionally, weenhance the management of raw materials by reviewing suppliers' raw material testing reports and commissioningthird-party organizations for sampling inspections, thereby improving product quality and safety levels.
Material Safety Management
The Fujian Provincial Government Quality Award is the highest honor in the ?eld of quality set up by the The People'sGovernment of Fujian Province in ????. In ????, Golden Dragon Rare-earth and XWXN were honored with the ?th FujianProvincial Government Quality Award for their outstanding quality management practices. Golden Dragon Rare-earth drivesits strategy of "high-quality development in rare earth industry through ?ve modernization" by integrating supply chainresources to achieve complementary advantages and collaborative cooperation. It has established a "Dual I, Dual Full, DualInnovation" quality management model to comprehensively enhance its overall competitiveness. XWXN adheres to thephilosophy of "innovation-driven, quality-?rst" and focuses on the research and production of new energy materials. With themission "To provide advanced material solutions for carbon neutrality," the company has continuously driven technologicalinnovation and management optimization, building a unique quality management paradigm. Both companies are committedto excellence, providing higher-quality products and services to customers, building the Fujian brand, contributing to thecreation of a quality-strong province, and setting higher quality benchmarks for the industry.
Highlight | Fujian Government Quality Award
We have received recognition for several of our products, including the "Jinlu" brand tungsten alloy, "Honglu" brandtungsten-molybdenum wires, and various tungsten oxide products, which have been recognized as national key new productsand Fujian provincial famous products.
Highlight | National Key New Products and Famous Brand Products of Fujian Province
We actively responded to the ???? provincial "Quality Month" campaign, focusing on the goal of "enhancing quality awarenessand improving management levels." We meticulously planned and coordinated various activities, tailoring them to our speci?cneeds. These initiatives encouraged active employee participation, strengthened quality responsibility awareness, andsolidi?ed the foundation of quality management. Our e?orts e?ectively promoted quality improvement and ingrained a strongquality culture, laying a solid foundation for our high-quality development.
Highlight | XTC Quality Month Activities
Golden Dragon Rare-earth has established a comprehensive testing center that covers the entire process from rare earth rawores to downstream products. The testing center conducts a wide range of analyses, including chemical composition, magneticproperties, mechanical properties, thermal properties, powder properties, environmental reliability, microanalysis, andnon-destructive testing. In ????, the testing center received accreditation from the China National Accreditation Service forConformity Assessment (CNAS) and strictly follows the ISO/IEC ????? international laboratory management system standards.This standardized and scienti?c testing approach provides strong technical support for material safety management, ensuringthe safety and quality of the supply chain products from the source.
Highlight | Golden Dragon Rare-earth Testing Center
We have always upheld the principle of "quality ?rst and continuous improvement," in strict compliance with the Law of thePeople's Republic of China on Product Quality and other relevant laws and regulations. We have established scienti?cquality standards and implemented standardized, streamlined, and re?ned management across the entire product lifecycle,including R&D, manufacturing, ?nal delivery, and after-sales services, to enhance overall quality control. We continuouslypromote lean production and smart manufacturing, embed green and low-carbon concepts into production processes, andstrengthen our quality control and risk prevention mechanisms. By actively responding to customer needs, we strive to earnmarket trust through reliable products and high-quality services.We are driven by market demand and actively develop new products to continuously enhance our competitiveness. We areadvancing the International Advanced Manufacturing (IAM) project with the guiding principles of "Customer-centric,goal-driven, self-critical, people-oriented, and continuous improvement." Our goal is to create a manufacturing system thatis "Scienti?c management with structured approach; upscale products with stability; strong pro?tability with sustainability."We focus on ?ve key areas: production processes, production equipment, quality management, lean production, andhealth, safety, and environmental management. With lean production and Six Sigma as our main approaches, we arecomprehensively enhancing our manufacturing capabilities. At the corporate headquarters, we have prepared documentssuch as the " XTC IAM System Planning Guide" and the " XTC IAM Automation Implementation Guide." We also organizeannual IAM planning development and reviews to provide guidance for manufacturing units to implement IAM-related work.During the reporting period, our headquarters organized the product division and manufacturing bases to develop theannual IAM plan, review it, and track the implementation of improvement plans. We have upgraded IAM evaluationstandards and conducted regular evaluations to promote manufacturing improvements. Furthermore, we have launchedand continuously optimized the IAM project management system, and developed the IAM digital implementation guide toassist the product division and manufacturing bases in e?ectively implementing project management.
We have always regarded product safety and quality as the lifeline of our business development. Centered on our three corebusiness segments, namely tungsten and molybdenum, new energy materials, and rare earths, we have established astringent quality control system that covers the entire process from research and development, production, delivery toafter-sales service. This ensures that each stage meets safety standards and performance requirements. Guided by customerneeds, we focus on improving customer service and satisfaction, actively listen to feedback, optimize service procedures,and are committed to providing safe and reliable products and services to customers around the world.Product Quality Management
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To implement information security management responsibilities and ensure the e?ective execution of informationsecurity work, we link information system downtime incidents caused by security issues to the performance of relevantpersonnel. Additionally, we regularly conduct internal control evaluations on the operation and e?ectiveness of ourinformation systems and commission external professional institutions to conduct IT audits. Furthermore, we strength-en information security management by installing security protection equipment, such as network ?rewalls andvulnerability scanning systems, in the data center, as well as through a series of technical safeguards to preventinformation security risks and ensure the security of data information.
XWXN continuously improves its customer service mechanism by conducting regular customer visits and satisfaction surveys.Based on feedback from market customers, the company compiles and forms the "Customer Satisfaction Survey Report,"which serves as an important basis for driving product quality optimization and improvements. In ????, the companyconducted an annual satisfaction sampling survey for key customers, with an e?ective response rate of over ??%. Additionally,the company has established a standardized complaint handling mechanism, committing to a ??-hour response and athree-day feedback promise, ensuring timely and e?ective resolution of complaints. In ????, the ? customer complaintsreceived by XWXN were all properly handled, achieving a customer satisfaction rate of ??.??%.
Highlight | Enhancing Customer Satisfaction
Xiamen Golden Egret is committed to providing professional, e?cient, and sincere services to its customers. Driven by the ?Dquality method, the company relies on structured problem analysis and a closed-loop improvement mechanism to continu-ously enhance quality management e?ciency and customer service quality.In terms of customer service, Xiamen Golden Egret adheres to the "Customer Management Measures" and improves servicequality and e?ciency through customer segmentation and targeted di?erentiated services. The company also uses the CRMsystem to strengthen dynamic customer information management, deepens the localization of the service network, andestablishes solution service centers to provide quick responses, customized delivery, and comprehensive technical support,ensuring precise alignment with customer needs. Additionally, Xiamen Golden Egret regularly conducts customer satisfactionsurveys to understand customer evaluations of products, services, and customer activities, and promptly adjusts any servicede?ciencies based on the feedback.In terms of dealer services, Xiamen Golden Egret dynamically updates the "Dealer Management System" based on markettrends and business needs. The company implements relevant incentive policies to empower dealers to carry out marketpenetration plans and promote new products. By organizing dealer business development plans and providing support in salesand marketing, the company strengthens dealer service capabilities. Xiamen Golden Egret also enhances product ?ow control,curbing the circulation of counterfeit goods, and ensuring a healthy market ecosystem and the consolidation of brand value.
Highlight | Customer-Centric Service
Our executive team serves as the highest decision-making body, the IT center is responsible for guiding and supervisinginformation security management and information system construction, and each subsidiary implements the daily work ofinformation security management and the implementation and operation of information systems within its organization.
Our headquarters has established an operations and maintenance coordination team responsible for the operation, mainte-nance, and auditing of basic data in the information systems. At the same time, each business department and subsidiary setsup dedicated personnel for data auditing according to their actual situation.
In terms of information security management and information system management:
In terms of data management:
◎ Data Security and Customer Privacy ProtectionWe adhere to a customer-centric approach and have established a comprehensive customer service system. Through amulti-channel customer feedback mechanism, we ensure that customer demands are responded to promptly andproperly handled. We regularly conduct customer satisfaction surveys and use the results as a key basis for improvingproduct and service quality. A standardized response process and a professional team have been set up for handlingcustomer complaints, aiming to provide e?cient solutions to customer issues. At the same time, we focus on learningfrom customer feedback to continuously optimize service processes and improve overall service quality.
Customer Rights Protection
We have formulated and implemented internal systems such as the "Group Information Security Management Measures,"
"Group Information System Management Regulations," "Group Information System Data Management Measures," and
"Group Information System Development and Operation Maintenance Management Measures." Based on the subdivision
of information security management, we have clari?ed the management structure and responsibilities at each level to
standardize the information security management work at our headquarters and subsidiaries. Speci?cally:
Information Security Management
We place great emphasis on customer privacy protection and strictly adhere to the requirements of the "Personal Informa-
tion Protection Law of the People's Republic of China" and other relevant laws and regulations. We have established a
comprehensive customer information management system. Our headquarters has formulated the "Headquarters Business
Secret Management Guidelines," which de?ne the scope of business secrets, management structure and responsibilities,
protection measures, and reward and punishment policies, and have established a top-down management structure, from
the Con?dentiality Management Committee and Con?dentiality Work Group to each functional department. Each of our
subsidiaries, based on their own operations and business realities, has also developed relevant regulations such as the
"Customer Management Measures" and "Business Secret Management Measures." Through standardized operational
processes and technical protection measures, we create a safer and more reliable data protection environment for our
customers.
We ensure customer information is protected through organizational safeguards, policy enforcement, and control measures
such as permission-based approval, hierarchical management of con?dential personnel, system and device encryption,
and the signing of con?dentiality agreements. We also implement the principle of least necessity, collecting only the
personal information required for business operations, ensuring that customer information is not misused or leaked.
Customer Privacy Protection
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We are committed to safeguarding information security and protecting the privacy of employees, customers, and other
stakeholders. We strictly adhere to relevant laws and regulations, including the Cybersecurity Law of the People's Republic
of China, the Data Security Law of the People's Republic of China, and the Personal Information Protection Law of the
People's Republic of China. We have established a comprehensive information security management system and imple-
mented multi-layered protection mechanisms, including data encryption, access control, and real-time monitoring, to
ensure the security and integrity of business systems and customer data. By regularly conducting information security risk
assessments, we continuously optimize our protective measures and provide security awareness training for all employees
to strengthen their responsibility for data protection. We have also established a robust emergency response mechanism for
security incidents, ensuring that any abnormalities can be quickly addressed to minimize potential impacts. During the
reporting period, no information security incidents or violations of customer privacy occurred.
To promote industry collaborative innovation, we regularly participate in organizing or co-organizing industry summitsand specialized forums, creating an open and shared platform for communication. By acting as a bridge, we workhand-in-hand with our partners to build a positive industry ecosystem, contributing to the high-quality development ofthe industry.
XTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTCXTC
International Tungsten Industry AssociationTI-CMC (Tungsten Industry - Con?ict Mineral Council)
Xiamen Technology Innovation Association
Xiamen New Materials Industry AssociationChina Tungsten Industry AssociationAssociation of China Rare Earth IndustryXiamen Intellectual Property Association
China Mining AssociationFujian Metallurgical Industry Association
Fujian Provincial Silicate SocietyChina Nonferrous Metals Industry AssociationStrategic Alliance for Technological Innovation of China's Renewable Resources IndustryStrategic Alliance for Technological Innovation of China's Nonferrous Metals Industry
Fujian Mechanical Engineering SocietyFujian Technology Innovation Association of Graphene Industry
Powder Metallurgy Industry Council
Metallic Functional Materials CouncilCemented Carbide Association in CTIA Cemented Carbides Journal
Journal of Materials ChinaFujian Metallurgical and Metallurgy SocietyThe Chinese Society of Rare Earths
DirectorPresidentPresidentVice PresidentVice PresidentVice PresidentExecutive DirectorExecutive DirectorExecutive DirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorDirectorVice DirectorBoard of SupervisorsUnit in Charge of the Board of Directors
Participated AssociationPositionEnterprise
Engagement of Associations
XTCXTCXTCXTCXTCXTCXiamen HongluXiamen Golden EgretXiamen Golden EgretXiamen Golden Egret
Tianjin SofToolTianjin SofToolXWXNXWXN
The Nonferrous Metals Society of ChinaNational Nonferrous Metals Standardization CommitteeMaterials Branch of the Chinese Mechanical Engineering SocietyFujian Industry and Education Integration Promotion Association
Technology Market Association of XiamenXiamen International Talent Exchange AssociationNational Rare Earth Standardization Technical CommitteeNational Nonferrous Metals Standardization Technical CommitteeChina Metal Cutting Tool Engineering AssociationTool Branch of China Machine Tool & Tool Builders’ AssociationNational Technical Committee for Standardization of Cutting ToolMolybdenum Branch of China Nonferrous Metals Industry Association
China Electronics Materials IndustryChinese Association of Vacuum Electronic IndustryChina Metal Cutting Tool Engineering AssociationTool Branch of China Machine Tool & Tool Builders’ AssociationChina Industrial Association of Power SourcesCobalt Branch of China Nonferrous Metals Industry Association
MemberMemberMemberMemberMemberMemberMemberMemberVice ChairmanExecutive DirectorMemberVice PresidentExecutive DirectorExecutive DirectorDirectorMemberDirectorDirector
We participated in co-organizing the ???? China Tungsten Industry Development Conference, hosted by the China TungstenIndustry Association and the Shanghai Futures Exchange. The conference aims to implement the "Development Plan for ChinaTungsten Industry (????-????)," providing a platform for communication between government, industry, academia, research,and application sectors to promote exchange and cooperation in the tungsten industry. Our CEO, Wu Gaochao, attended theconference and engaged in discussions with industry professionals on innovations in the tungsten market mechanism, workingtogether to promote the high-quality development of China's tungsten industry and create an internationally in?uentialtungsten industry cluster.
◎ Promoting Industry Development
Participated AssociationPositionEnterprise
Highlight | ???? China Tungsten Industry Development Conference
Golden DragonRare-earth
Chengdu Hongbo
MolybdenumChengdu HongboIndustrialChengdu HongboIndustrial
Member, Member of Technical Committeeof Tungsten Consortium
Strategic Alliance for Technological Innovation of Compulsory ResourceRecycling Industry of China Resources Recycling Association
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We actively participate in the construction of the industry ecosystem, proactively engage in the formulation and revisionof industry-related standards, and maintain close cooperation with multiple industry associations, holding importantpositions. We provide professional advice and practical experience to promote the healthy development of the industryand are committed to advancing the industry's standardization and regulation. The professional associations thecompany and subsidiaries have joined primarily include：
We participated in the China Materials Conference ???? & The ?ndWorld Materials Conference, hosted by the Chinese MaterialsResearch Society and co-hosted by the European Materials ResearchSociety. The conference focused on cultivating new forms ofproductive forces and building a strong materials nation. It broughttogether top scholars and industry representatives from around theworld to discuss advancing material micro-reconstruction andlow-carbon technology innovations. The aim was to accelerate thepenetration of scienti?c and technological achievements intoindustry and deepen international cooperation between industry,academia, and research, strengthening consensus on the researchand development of strategic materials.
We participated in The ?th China Advanced Material IndustryDevelopment Conference - Powder Metallurgy Advanced Materialsand Manufacturing Technology Sub-Conference, hosted by theChinese Materials Research Society and organized by Central SouthUniversity State Key Laboratory of Powder Metallurgy and CentralSouth University National Engineering Research Center for PowderMetallurgy. During the conference, we engaged with industryexperts and academic scholars to discuss cutting-edge topics suchas green preparation technology for powder metallurgy, innovativeapplications of additive manufacturing, and the development ofhigh-performance alloys. We shared the latest scienti?c researchachievements, industry trends, and innovative ideas, contributingpractical insights to promote the transformation and upgrading ofmaterials science and technology.
???? marks the ??th anniversary of the establishment of diplomatic relations between China and France, with cooperation inthe new energy sector becoming a hallmark of bilateral relations and leading the way for future collaborations. Driven byFrench President Macron and senior government o?cials from both countries, XWXN signed an agreement with the FrenchOrano Group to establish a comprehensive strategic partnership in the battery industry. The two companies also jointly formedthe Neomat joint venture, marking the beginning of in-depth collaboration in the battery industry chain integration and carbonneutrality ?elds. XWXN and Orano jointly participated in the ???? France "Amazing Factory" exhibition, showcasing innovativeproducts such as lithium-rich manganese-based materials and ?V high-voltage materials. This demonstrated XWXN'sforward-looking layout and technological advantages in the new energy materials sector, highlighting its strength in technolog-ical innovation and market competitiveness, and providing innovative solutions for the technological iteration of the newenergy materials industry.
Guided by our principle of "putting people ?rst," we regard our employees as the mostvaluable asset of the company and actively promote a corporate culture that embracesdiversity and inclusion. In terms of safeguarding employee rights, we strictly comply withlabor laws and regulations, and have established comprehensive systems for compensation,bene?ts, and occupational health management. We continuously enhance our managementpractices based on regular employee satisfaction surveys. To support talent development,we have built a multi-channel career development system that o?ers tailored trainingprograms, including professional skills development and management training. We alsoprovide internal promotion and job rotation mechanisms to foster long-term career growth.Through these e?orts, we enable each employee to achieve personal ful?llment whilesharing in the company’s success.◎ Equal Employment
We respect the human rights provisions outlined in international standards such as the"International Covenant on Human Rights", the "United Nations Guiding Principles on Businessand Human Rights", and the "International Labour Organization Conventions". We haveintegrated human rights due diligence into all aspects of our operations, formulated systematicinternal regulations, and established a human rights impact assessment mechanism toregularly identify, prevent, and mitigate potential risks in our business activities.
We prohibit all forms of forced labor, child labor, employment discrimination, workplaceviolence, and harassment. We ensure that employees are entitled to fair compensation, a safeand healthy working environment, and the right to freedom of association. We also provideregular human rights training to enhance compliance awareness among employees andmanagement. In addition, we promote awareness of human rights protection throughout ourvalue chain by implementing a Supplier Code of Conduct, conducting on-site supplier audits,and organizing training programs for our partners.
◎ Human Rights Protection
EmployeesHighlight | China Materials Conference ???? & The ?nd World Materials Conference
Highlight | The ?th China Advanced Material Industry Development Conference - Powder Metallurgy Advanced Materials and Manufacturing Technology Sub-Conference
Highlight | In-depth Collaboration with the French Orano Group
Employee Compositionby Age
We adhere to the principle of equal employment and strictly follow national labor laws and
regulations. In every stage of recruitment, hiring, and promotion, we resolutely eliminate all
forms of discrimination, including but not limited to gender, age, ethnicity, religious beliefs,
geographic origin, and physical condition, to ensure fair employment and development
opportunities for all employees. Based on actual circumstances, we and our a?liated
enterprises have formulated policies such as the "Human Rights Protection Guidelines" and
the "Corporate Social Responsibility Manual," and conduct periodic reviews of employment
policies and practices to ensure alignment with international standards and best practices.
Employee Composition
by Gender
■ Male
■ Female
■ Below ??■ ??-??■ Over ??
73.10%
26.90%
63.88%
27.81%
8.31%
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TopicManagement SystemsCompany CommitmentManagement PracticesTopicManagement SystemsCompany CommitmentManagement Practices
We actively conduct human rightstraining and communicate anti-discrimi-nation policies to all managers. Thesepolicies are linked to performanceevaluations for e?ective supervision.We regularly assess social responsibilityrisks related to human rights andsystematically improve internalmanagement practices.Quarterly anti-discrimination audits areconducted across recruitmentplatforms, hiring processes, training,promotions, and compensation toensure that all employees are treatedequally throughout the employmentlifecycle.
We oppose any form ofemploymentdiscrimination. Careerdevelopment is nota?ected by gender, age,ethnicity, nationality,religion, region, orphysical condition.
"Human Rights ProtectionGuidelines""Corporate Social Responsi-bility Manual""Anti-Violence, Anti-Discrimi-nation, Anti-SexualHarassment, and Anti-DrugPolicy""Employee Protection Code""Anti-DiscriminationManagement Guidelines"
EqualEmployment
We fully implement national protectionsfor maternity, including pregnancy,maternity leave, and breastfeedingperiods.We provide "Mother’s Rooms" andnursing rooms to support femaleemployees during special stages.We organize health and legal seminarsfor female employees, provideprofessional medical consultations, andpromote comprehensive care.We raise awareness of legal protectionsby hosting women’s rights lawseminars, empowering employees withknowledge of their rights and self-pro-tection.
We strictly comply withthe "Law of the People'sRepublic of China onthe Protection ofWomen's Rights andInterests," ensuringequal opportunitiesand a safe, respectfulwork environment forall female employees.We are committed togender equality inrecruitment, compen-sation, promotion, andtraining, and ?rmlyoppose any form ofgender discriminationor workplace bias.
"Job Risk AssessmentGuidelines for PregnantEmployees and New Mothers"ProtectionofFemaleEmployees
We enforce strict labor contractprocedures, ensuring all employmentrelationships are voluntary. Practicessuch as con?scation of identitydocuments, restricting personalfreedom, or economic coercion arestrictly prohibited.We maintain open, con?dentialgrievance channels to allow employeesto safely voice concerns. All reports arehandled promptly and fairly.External experts are invited to delivertraining on "workplace violence,discrimination, sexual harassment, anddrug abuse."
"Anti-Violence, Anti-Dis-crimination, Anti-SexualHarassment, and Anti-DrugPolicy""Public Security Manage-ment Regulations""Human Rights ProtectionGuidelines"
Anti-Violence
andForced
Labor
We pledge not tosupport or use forcedlabor, indentured labor,corporal punishment,detention, or any form ofviolence or abuse,including bullying,threats, or intimidation.
We implement strict procedures to avoidchild labor, including ID veri?cation tocon?rm applicant age.HR departments conduct regular checksto prevent accidental hiring of underageworkers. Clear remediation proceduresare in place to address any violations,and we strictly prohibit irresponsibledismissal of child laborers.We prohibit theemployment of childlabor and generally donot hire underageworkers."Child and Juvenile LaborManagement Guidelines""Child Labor RemediationProcedures""Protection Guidelines forChild Labor, JuvenileWorkers, and FemaleEmployees"
Prohibition
ofChildLabor
We have legally established trade unionsand regularly communicate withemployee representatives to listen tofeedback and integrate reasonablesuggestions into company management.We pledge not to interfere with,discriminate against, or suppressemployees’ legal rights to form or joinorganizations. We also provide resourcesand support to ensure they can exercisetheir rights in a fair and secure environ-ment."Freedom ofAssociation Policy"
Freedom
ofAssociation
We provide workplace harassmentprevention training to all employees.We maintain a zero-tolerance policy towardany form of harassment or abuse. Allemployees are required to comply with theanti-harassment and anti-abuse policy, andwe take all reasonable measures to preventsuch behavior from occurring in productionareas or any other workplace settings.We invite external experts to deliver trainingon topics such as "workplace violence,discrimination, sexual harassment, andsubstance abuse."We have established a formal reportingmechanism and con?dential grievancechannels to encourage employees to reportinappropriate behavior they experience orwitness. We are committed to conductingfair investigations of all complaints andprotecting the privacy and legal rights ofwhistleblowers.
We are committed toprohibiting any threats orinhumane treatment ofemployees, including butnot limited to overt orcovert verbal abuse andharassment, psychologi-cal harassment, mentaland physical coercion,and sexual harassment."Anti-Violence, Anti-Discrim-ination, Anti-SexualHarassment, and Anti-DrugPolicy"
Anti-Harassment
We respect and protectemployees' rights tofreedom of associationand collectivebargaining, in fullcompliance withnational laws andrelevant internationallabor standards.
，
Engaging Activities for Female EmployeesTraining for Labor Dispute Mediators
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We have established a comprehensive set of internal policies to support career development, including the "GuidingPrinciples for Building the Group's Job Quali?cation System," the "Implementation Guidelines for Job Quali?cationSystems in Subsidiaries," the "Job Quali?cation Management Measures for XTC Headquarters," and the "Promotion andDemotion Management Measures of the Group." We conduct job competency evaluations (talent assessments) to assessemployees' capabilities and performance in a holistic manner. Each subsidiary develops di?erentiated promotionpathways tailored to its operational context, fostering a merit-based culture where capable individuals are given opportu-nities to advance. Through a combination of job level certi?cations, promotion and demotion evaluations, and opencompetition for leadership roles, we continue to open and optimize career pathways for our people.
Career Development
We have established a multi-level and multi-channel communication system that includes the labor union committee,employee representative meetings, employee forums, harmonious labor relations committee, opinion collection, satisfactionsurveys, democratic evaluations, and internal mailboxes. We respect and protect the democratic rights granted to employeesby the Constitution and the law. Through collective agreements such as the "Collective Contract", the "Enterprise CollectiveWage Agreement", and the "Special Collective Contract for the Protection of Female Employees' Rights and Interests", laborunion representatives sign on behalf of employees. These agreements clearly de?ne terms related to employee compensationlevels, wage payment, workplace safety, occupational health protection for female employees, and leave and bene?ts.
In daily operations, we promote direct dialogue between employees at all levels and the management team through regularlabor union committee meetings, employee representative meetings, employee forums, harmonious labor relations commit-tee meetings, and democratic life meetings. We also provide convenient channels for employees to express their opinionsthrough internal mailboxes and internal social platforms, ensuring that each piece of feedback receives a timely and appropri-ate response. In addition, we regularly conduct employee satisfaction surveys to evaluate the e?ectiveness of communicationand continuously improve our mechanisms, supporting mutual growth between employees and the company.
◎ Employee Communication
We have established a diversi?ed career development system, designing personalized development paths for employ-ees at di?erent levels. In the implementation process, we emphasize aligning individual development goals withorganizational needs, and ensure the e?ectiveness of development plans through regular evaluation and feedbackmechanisms. We continuously optimize training resources and provide a variety of training and learning opportunitiesto help employees enhance their professional skills and overall competencies. We are committed to building XTC into atalent hub that supports the company’s high-quality development with strong intellectual capital.
◎ Employee Development
We have established a strategy-driven performance management system that covers the entire organization and ensuresstrong alignment between corporate objectives and individual performance. Guided by the Balanced Scorecard (BSC)framework, we utilize strategic cascading tools to break down high-level goals across ?ve management levels—Group,subsidiary, business division, department, and position. This system integrates ?ve dimensions: ?nancial, customer, internalprocess, learning and growth, and social responsibility, ensuring close alignment between strategy and execution. Oursystem is designed with a systematic and closed-loop approach. We follow the SMART criteria—Speci?c, Measurable,Achievable, Relevant, and Time-bound—to ensure that performance indicators are well-de?ned and feasible. The PDCA(Plan-Do-Check-Act) cycle enables us to dynamically optimize our performance management process. Meanwhile, weenhance data-driven analysis so that performance evaluations serve not only as the basis for compensation adjustments,promotions, and incentives, but also as a vital reference for business process improvement and organizational e?ectivenessenhancement.To improve the accuracy of performance process management, we have built a performance management platform thatsupports regular business reviews, deviation warnings and interventions, and coordinated resource allocation. This enhanc-es the timeliness and relevance of performance management and helps business units achieve performance breakthroughs.We encourage employees to continuously improve their performance in a fair and transparent environment, using perfor-mance to drive growth and achieving mutual advancement of personal value and corporate development.
Performance Management
Golden Dragon Rare Earth has introduced policies such as the "Management Regulations on Talent Pipeline Development" andthe "???? Job Quali?cation Certi?cation Guidelines," which clearly de?ne the certi?cation procedures, implementationrequirements, and review standards for both operational and non-operational job tracks. These e?orts aim to create transparentand structured career development pathways for employees. Through targeted talent selection programs, job rotationinitiatives, internal secondments, on-the-job coaching, and structured training plans, we are continuously strengthening thedevelopment of high-potential talent. By reinforcing our talent reserves for key positions and systematically identifying,developing, and cultivating our talent pool, we are improving the self-sustaining capabilities of our pipeline and providingrobust human capital support for the company’s long-term sustainable growth.
Highlight | Talent Pipeline Development
To stay attuned to evolving employee needs and e?ectively support the development of corporate culture and manage-ment practices, we regularly carry out employee satisfaction surveys. These surveys aim to gain a comprehensiveunderstanding of employees' perceptions of the work environment, career development, compensation and bene?ts,and corporate culture. The insights gathered serve as an important reference for management decision-making.
Employee Satisfaction Surveys
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We have established a strategy-driven talent development system that integrates our four core management cultures:
comprehensive budget management, performance-based goal management, integrated product development (IPD), andinternational advanced manufacturing (IAM). Guided by this framework, we have formulated a series of training policies,including the "XTC Talent Development and Training Management Measures," the "IAM Talent Development Program forInternational Advanced Manufacturing," the "IPD Talent Development Program for Integrated Product Development," the"Rising Talent Training and Development Program," the "Uni?ed Training Program for Newly Recruited High-PotentialGraduates," and the "Talent Exchange Management Measures." These programs cover the entire training lifecycle,encompassing the job quali?cation system, talent development pathways, points-based management, learning maps,and course frameworks.Relying on the XTC Training Academy platform, we focus on the development of both managerial and professional talentthrough a tiered and categorized training system that includes:
Employee Training
We actively promote university-enterprise collaboration by establishing long-term partnerships with leading domesticuniversities and research institutes. Together, we engage in joint research, technological innovation, internship programs,and talent development, building an integrated platform that connects industry, academia, and research. This approachdrives the coordinated advancement of both technology and talent.
University-Enterprise Collaboration
Launched in January ????, the "???? Rising Talent Program" ran for four years and included six training modules: strategicplanning, budgeting, workplace safety, performance management, IAM & IPD system construction and application, and teamleadership. A total of ?? participants completed the program. The initiative has played a vital role in meeting current and futuretalent needs for key positions and strategic projects, while also establishing a benchmark and providing valuable experience forthe cultivation of future high-potential leaders.
In ????, we launched the Group Human Resources Empowerment Program, attended by over ?? HR managers and key personnelfrom our subsidiaries. The program featured lectures by seasoned HR experts, themed exchange sessions, and production linevisits. These activities provided participants with real-world case studies and practical methodologies for translating HR theoryinto action. The average satisfaction score from participants reached ?.??? out of ??.
Managerial Talent Development
We o?er programs such as the General Manager Class, the Rising Talent Class (reserves for general managers), the Flying DragonClass (for deputy general managers), the Flood Dragon Class (for department managers), the Hidden Dragon Class (forsupervisors), and the Team Leader Class. These programs aim to systematically enhance leadership and business decision-mak-ing capabilities at all levels of management.
Professional Talent DevelopmentWe provide specialized training programs in areas such as quality management, marketing, ?nance, human resources, andsafety to strengthen professional skills and support business growth.Personalized Learning for All Employees
We have launched a job quali?cation system upgrade initiative, implementing a company-wide job level initialization andmatching corresponding course packages. Employees are encouraged to engage in personalized learning according to their owndevelopment paths.
To attract young talent, we continuously re?ne our campus recruitment model. Each year, weorganize campus presentations, internship programs, and open house events at top universitiesacross the country, aiming to identify and recruit high-potential graduates. For new graduates, weprovide systematic training, mentorship, and job rotation opportunities to help them quickly adapt tothe workplace, enhance their professional skills, and improve their overall competencies.Campus Recruitment
In ????, Golden Dragon Rare Earth organized an IPD Product InnovationManagement Workshop attended by ?? core business personnel frombusiness divisions and functional departments. We invited external expertsto provide in-depth training on topics such as customer needs analysis, fullproduct lifecycle management, and building long-term competitiveadvantages. Through self-assessment exercises, participants clari?ed roleresponsibilities and competency requirements within the IPD innovationsystem. This workshop enabled a deeper understanding of productinnovation management, bridging theory and practice.
In ????, Xiamen Golden Egret launched the "Re?ned Excellence, Rising Talents"Reserve Talent Development Program, designed to systematically train recentgraduates as future managerial reserves. We optimized the onboarding trainingsystem and conducted eight in-person public courses. Through a combinationof theoretical learning, mentorship, and rotational practice, trainees gainedhands-on experience and applied knowledge. A total of ?? reserve talentscompleted their ?nal assessments in ????, unlocking their potential andimproving the e?ectiveness and e?ciency of our human capital leverage.
Highlight | "Rising Talent Program"
Highlight | ???? Group HR Empowerment Program
Highlight | IPD Product Innovation Management Workshop
Highlight | "Re?ned Excellence, Rising Talents" Reserve Talent Development Program
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In ????, we hosted the "XTC ???? Campus Recruitment in Beijing," where weintroduced our corporate pro?le, development strategy, technologicalinnovations, and talent development system. The event provided graduatingstudents with valuable face-to-face interaction opportunities with companyexecutives and technical experts, o?ering a platform to gain industry insightsand broaden their career perspectives in the high-tech sector.
In ????, a group of Youth League members from Xiamen University visited ourcompany to experience cutting-edge manufacturing technologies and a fullyintegrated industrial chain. They attended expert-led lectures and learnedabout our development journey, technological innovation, and corporateculture. The visit also fostered in-depth dialogue between the university andour company on topics such as employment trends, campus talent markets,and corporate hiring needs.
We have established a series of compensation-related policies, including the "Total Wage Management System," the"Special Items List and Separate Personnel Management Measures for Total Wages," the "Reward Regulations forGovernment-Subsidized Bonuses," and the "Guidelines on Annual Salary Implementation Plans for Business DivisionLeadership Teams." These systems are built on employee performance and benchmarked against industry salary levelsto form a value-driven and market-aligned compensation mechanism. Based on the ?P model (Position, Pro?ciency, andPerformance), we have developed a diversi?ed compensation system. The core component is position-based skill pay,supplemented by piece-rate and market-based negotiation pay structures. Our compensation framework includes basesalary, performance bonuses, allowances and subsidies, special incentives, and overtime pay. We ensure that allcompensation is paid in full and on time each month, complies with government-mandated minimum wage standards,and adheres to legal requirements for overtime pay to guarantee both fairness and compliance in compensationdistribution.
We apply a variety of performance evaluation methods to continuously enhance our performance management system.We also improve our reward mechanisms for scienti?c and technological achievements and increase technicalincentives. Through ongoing performance discussions and coaching, we stimulate employee innovation and initiative,e?ectively attracting and retaining talent. Key practices include:
◎ Employee Compensation and Bene?ts
BalancedScorecard
We di?erentiate goals across the Group level, subsidiary level, and business division level, establishing a?ve-dimensional objective framework tailored to each business unit's characteristics.???-DegreeEvaluation
We conduct annual competency assessments for management teams and develop individualized trainingand self-improvement plans based on the results.Managementby Objectives
We cascade corporate and business division performance targets down to departments and individualroles, with monthly or quarterly assessments as needed. Project-based performance indicators are brokendown into monthly targets and tracked continuously.
XTC Signature Canteen
Our "XTC Signature Canteen" o?ers employees high-quality, a?ordable, nutritious, and diverse meal options, ensuringconvenient access to dining services near their workplace. We continuously innovate our meal o?erings to enrich employees'culinary experiences. At the same time, we are committed to improving dining environments and strictly managing food safetyand hygiene to ensure healthy eating for all sta?.
Financial Assistance Program
To support employees in need, we have implemented a ?nancial assistance program. We also provide scholarships to the childrenof disadvantaged employees who demonstrate academic excellence, helping them pursue their aspirations of higher education.
Employee Housing Support
The Group and its subsidiaries provide housing bene?ts tailored to local conditions and operational needs by formulatingappropriate welfare policies.
In Xiamen, we provide several employee dormitories and o?er public rental housing to eligible employees.In Jiujiang, we provide free housing to outstanding employees and key personnel, and o?er complimentary single apartmentsto recent graduates.In Changting, Longyan, we have introduced the "Welfare Support Measures for Non-Local Talent," which prioritizes dormitoryarrangements for eligible employees.
"Summer Cooling Care "Heatwave Relief Initiative
Employee Birthday Celebration
Summer Childcare Program forEmployees' Children
Highlight | XTC ???? Campus Recruitment in Beijing
Highlight | Xiamen University Youth League Members Visit XTC
We encourage our employees to fully leverage their individual strengths, drive innovation through creativity, and generatevalue through innovation. By implementing corporate restructuring initiatives, we have established a long-term incentiveand constraint mechanism based on shared bene?ts and shared risks. This approach enables outstanding employees andkey talent to participate in equity ownership, signi?cantly enhancing their motivation and engagement. Through thissystem, we aim to build a high-caliber team with strong independent innovation capabilities, providing robust talentsupport for the achievement of our strategic development goals.During the reporting period, the unlocking conditions for the third vesting period under our ???? Restricted StockIncentive Plan were met. Accordingly, we proceeded with the procedures for lifting the sales restrictions for eligibleincentive recipients. A total of ?,???,??? restricted shares were released from lock-up, accounting for ?.????% of our totalshare capital as of the unlocking date.
Equity Incentives
In addition to fully complying with legal obligations such as contributions to medical and social insurance, housingprovident funds, and statutory leave entitlements, we provide a comprehensive range of employee bene?ts, includingenterprise annuities, accident insurance, birthday gift vouchers, and various forms of care and support.Employee Bene?ts
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We incorporate occupational health and safety performance into the annual key performance indicators (KPIs) of seniormanagement and relevant position holders, linking performance results directly to compensation. All employees arerequired to sign the "Occupational Health, Safety, Environmental Protection, and Fire Safety Responsibility Statement"based on their respective job responsibilities. This document clearly de?nes the responsible person, area of responsibili-ty, performance objectives, safeguards, and evaluation methods. The safety management departments at our headquar-ters and subsidiaries are responsible for annually setting and updating both outcome-based and process-basedindicators related to occupational health and safety. These indicators are implemented by department heads and directsupervisors. Additionally, we track and compile monthly statistics on each subsidiary's safety performance, assessprogress toward safety objectives, and provide improvement suggestions based on evaluation results. During thereporting period, a total of ??,??? "Occupational Health, Safety, Environmental Protection, and Fire Safety ResponsibilityStatements" were signed, covering ???% of our employees.
We strictly adhere to the "Group Safety Supervision and Management Regulations" and apply methods such as JobHazard Analysis (JHA) and Safety Checklist (SCL) to identify risk points and potential hazards throughout the productionprocess. Risk evaluations are conducted using the Likelihood-Exposure-Consequence (LEC) method. After identifyingand classifying occupational health and safety risks by type and severity, we actively carry out hazard inspections andcorrective actions and formulate annual inspection plans. We have developed and implemented a dual preventionmechanism that integrates "graded risk control and hazard identi?cation and remediation," thereby strengthening ourability to manage various work safety risks.
We place great importance on occupational health and safety management, upholding the principle of "safety ?rst,prevention foremost, and comprehensive management." We are committed to creating a safe and healthy workingenvironment for all stakeholders, including employees, suppliers, and contractors. We strictly comply with relevantnational laws and regulations, including the "Prevention and Control of Occupational Diseases Law of the People'sRepublic of China," the "Regulations on Work Safety Licenses," the "Regulations on Supervision and Administration ofCoal Mine Safety," the "Regulations on the Safety Management of Hazardous Chemicals," the "Law of the People'sRepublic of China on the Prevention and Control of Occupational Diseases," and the "Regulations on Work-RelatedInjury Insurance," as well as all applicable laws and regulations at our operating locations. We continuously improve oursafety management systems, with the "Basic Speci?cations for Work Safety" and the "Group Safety Supervision andManagement Regulations" serving as our core frameworks to ensure that safety work is carried out in accordance withthe law. In addition, we have formulated the "XTC Three-Year Action Plan for Fundamental Work Safety Improvements(?????????)" in line with national, Fujian provincial, and governing entity's safety requirements, detailing speci?cmeasures and responsibilities for safety management.
As of the end of the reporting period, a total of ?? of our a?liated entities had obtained ISO ????? Occupational Healthand Safety Management System certi?cation, covering ??% of our major production entities. Additionally, ? subsidiarieshave been certi?ed as Level ? Safety Standardization Enterprises, and ?? as Level ? Safety Standardization Enterprises.
◎ Occupational Health and Safety
We have established a comprehensive occupational health and safety (OHS) management structure to e?ectively control risksthroughout our production and operations. The Work Safety Committee serves as our supervisory and administrative body,chaired by the Chairman of the Board and composed of senior management members. This committee is responsible fororganizing safety inspections, overseeing the implementation of safety protocols, and formulating safety-related managementsystems and emergency response plans. To ensure the e?ective advancement of safety management, we have also assembled aninternal and external team of experts to form a Professional Work Safety Committee. This group is tasked with promoting andreviewing the company's work safety standards, providing professional recommendations, and proposing improvementmeasures. Under the guidance of the Group Work Safety Committee, each of our subsidiaries has established its own work safetycommittee, which operates under the supervision and management of the Group-level committee.
Occupational Health and Safety Management Structure
Professional WorkSafety Committee
Work Safety ManagementDepartments of Subsidiaries
Trade Union
Trade Unions of Subsidiaries
Occupational Health and Safety Management Structure
Leadership TeamWork Safety Committee
Leadership Group ofthe Work Safety CommitteeWork Safety Committees of
SubsidiariesLeadership Group of Subsidiaries'
Work Safety Committees
XTC Group Safety ManagementSafety Incidents with Zero Loss and Property Loss
Laws and Regulations
Technical Speci?cations
Safety Risk Inventory and Database+ Hazard Identi?cation and Management Ledger or DatabaseMajor Safety Risk Control Measures + Safety Risk Grading and Control System+ Hazard Identi?cation and Management System+ Major Hazard Management and Implementation PlanMajor Safety Risk Notice Board + Job Safety Risk Noti?cation Cards+ Enterprise Safety Risk Four-Color Distribution Map+ Enterprise Operational Safety Risk Comparison Chart Information Management System for Safety Risk and Hazard Investigation
Establish Inventory and DatabaseDevelop System PlansRisk Noti?cation and Risk MappingEstablish Management System
Risk Grading
ControlCompany LevelProfessional LevelWorkshop LevelTeam LevelPosition Level
HazardIdenti?cationComprehensive
Specialized
Seasonal
HolidayRoutine Inspection
Hazard Gradingand Classi?cationGeneral HazardsMajor HazardsOn-site ManagementBasic Management
Graded Hazard
ManagementRequirement: Recti?cationmeasures, responsibility,funding, deadlines, andcontingency plans in placeAcceptance: Establish ahazard identi?cation andmanagement ledger
HazardIdenti?cationVariousHazards
Risk LevelClassi?cationExtra-Major Risk
Major Risk
General Risk
Low Risk
Typical Control Measures
Engineering Technical MeasuresManagement MeasuresTraining and EducationPersonal ProtectionEmergency Response
Risk Assessment
Job Hazard Analysis (JHA)Safety Check-List(SCL)LEC Method in RiskAssessment (LEC)
Operational Activities orEquipment and Facilities
Occupational Health and Safety Risk Management
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At our tungsten smelting base in Longyan, we utilize automated process control throughout production.Speci?cally:
We have also equipped the production site and surrounding plant boundaries with a range of criticalalarm systems. These include an ammonia concentration alarm system, as well as real-time monitoringand over-limit alarms for other safety-related parameters such as steam pressure and compressed airpressure. In addition, we monitor and collect real-time data on key operational indicators such as currentand temperature, allowing us to detect equipment anomalies in advance and carry out timely mainte-nance to ensure work safety.We actively promote intelligent safety management by leveraging advanced information technologies to improve thee?ciency of our safety operations. Through the development of a digital safety management platform, we haveintegrated functions such as monitoring, data analytics, and risk warning systems. This platform enables real-timemonitoring of safety conditions throughout the production process, allowing us to accurately identify potential risksand take immediate action to ensure employee safety and operational stability.
Our Work Safety and Environmental Protection Department of Operations Management Center at headquarters worksclosely with the safety management departments of all subsidiaries to jointly carry out safety inspections in accordancewith the annual inspection plan. Through regular inspection and supervision activities, we aim to identify and eliminatepotential safety hazards in a timely manner, ensuring that safety risks during production are e?ectively controlled. Keyactivities include:
For any safety hazards identi?ed during inspections, we follow the principle of localized management and implement aclosed-loop corrective process. Based on the severity of the hazard, we de?ne corresponding corrective measures andtimelines, while maintaining a detailed hazard identi?cation and recti?cation log to ensure all issues are addressedpromptly and e?ectively. We also encourage employees to use mobile phones, cameras, and other devices to take photosand document safety hazards in the workplace. This information is uploaded to our "EHS" (Environment, Health, andSafety) management information system. The EHS system immediately noti?es the responsible departments and tracksthe progress of corrective actions to ensure timely completion. This approach promotes convenient, e?cient, andcompany-wide participation in safety management, ensuring a safe and stable work environment across all operations.
During the reporting period, we took the following proactive measures to reduce occupational health and safety risks inour production and operational activities:
Prepared a system diagram for graded risk control and hazard remediation, identi?ed and assessed potential hazards in theproduction process, and implemented practical and e?ective control measures;Introduced advanced technologies and equipment to improve production e?ciency and reduce the likelihood of safety incidents;Carried out a dedicated program to improve on-site safety performance, for identi?ed hazards, we set clear deadlines for closureand assigned personnel for follow-up supervision to ensure timely and quality completion of corrective actions.
Weekly self-inspections conducted by each production team at all manufacturing sites;Periodic comprehensive inspections conducted by the safety management departments, along with pre-holiday, seasonal,"Safety Month/Season" campaigns, and other special inspections;Unscheduled spot checks by the headquarters Operations Management Center on the safety performance of subsidiaries,including joint on-site inspections with third-party professional agencies.
At Ninhua Xingluokeng, we continue to improve infrastructure to ensure comprehensive monitoring ofdata such as water levels, phreatic lines, dry beach conditions, and rainfall. A dedicated network hasbeen established to guarantee smooth data transmission to government regulatory platforms. We haveset early warning thresholds that trigger real-time audio, visual, and message-based alerts whenanomalies are detected. Radar monitoring equipment has been installed at mining sites to achieve fullcoverage of slope displacement monitoring. At the waste dump area, we have replaced the traditionaltotal station and prism system with GNSS (Global Navigation Satellite System) technology to avoidabnormal monitoring results caused by extreme weather conditions such as heavy rain or fog.
At our site in Duchang, we strictly follow the "Checklist for Routine Safety Standardization Tasks" toimplement safety standardization practices across open-pit mines, ore processing plants, and tailingspond. We have actively promoted the application of the mine safety standardization information system,signi?cantly improving the digitalization of our safety management processes. During the reportingperiod, we successfully passed the re-evaluation for open-pit mine safety standardization compliance.
At Luoyang Yulu, we have upgraded systems related to the intelligent management of hazardouschemicals and remote operation in high-risk areas, thereby reducing the risks associated with frequentmanual operations. We also make full use of the mine safety standardization information system todigitally manage safety inspections, safety training, pre-shift meetings, shift handovers, andpermit-to-work processes. This has enhanced the e?ciency of our safety management and providedvaluable data support for the development of our future safety evaluation systems.
Mining Operations
AdvancedMaterialsProduction
In terms of hardware con?guration, we haveinstalled pneumatic valves, and use online?ow meters, temperature sensors, pressuresensors, and other instruments to collectreal-time data on key parameters such as?ow rate, temperature, and pressure directlyat the production site.
The on-site production processes arecontrolled through PLC (ProgrammableLogic Controller) programming. Allparameters are connected in real time tothe process monitoring center, enablingcentralized, real-time monitoring of everystage in the production work?ow.
At our Cutting Tool Division in Haicang, we have implemented a visible smoke and ?ame early warningsystem on surveillance cameras positioned at key locations across the plant. In the event of an abnormalsituation, the system immediately alerts the area supervisor and the safety and environmental protectiondepartment, enabling early intervention to contain and extinguish ?res in their initial stages and preventfurther spread. We have engaged third-party agencies to install smoke-temperature composite detectorsin accordance with national standards, with all alarm signals connected to the ?re control center toenhance the plant's early ?re detection capabilities. Alarm signals are also linked to the extrusion andmixing control room to ensure immediate response in the event of hazardous chemical leaks. In addition,we invited a professional lightning protection company to upgrade the lightning protection system forthe hydrogen storage cabinets. Dedicated grounding devices have been installed to signi?cantly improvethe safety of the facility against lightning strikes.
Deep Processing
Intelligent Safety Management
Workplace Safety Inspections
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To ensure workplace safety, Haicang Golden Egret carried out specialized inspections covering areas such as work resumption,electrical safety, ?re protection, major hazard sources, machine equipment safety devices, mechanical injury prevention,equipment grounding, special equipment, hazardous chemicals, gas cylinder storage and use, personal protective equipment,safety signage, dust and vacuum collector cleaning, and emergency exits and ?re?ghting equipment. The company's Safety andEnvironmental Protection Department worked jointly with departmental safety o?cers to form inspection teams of ? to ?people, who conducted on-site walkthroughs and risk identi?cation. For any issues identi?ed, the inspection team immediatelyrequired the responsible departments to develop corrective action plans and monitored the full implementation process toensure that all issues were recti?ed within the prescribed timelines.
At Ninghua Xingluokeng, we deeply understand the importance of safe production and have established a systematic safetymanagement system. We have formulated a set of management rules and procedures, including the "Hazard Identi?cation andRecti?cation Management System," the "Graded Safety Risk Control Management System," and the "Hazard Identi?cation andRisk Assessment Management System." A dual-prevention mechanism has been implemented to ensure e?ective riskidenti?cation and control across all operational levels. In practice, we conduct regular comprehensive inspections and specialsafety checks ahead of ?ood seasons, typhoon events, and other key risk periods. These inspections cover transportation,open-pit slope stability, ?re safety, outsourced projects, and more, aiming to fully identify and mitigate risks in the workingenvironment. Additionally, we have conducted a full-scale risk assessment of our tailings pond, equipment, and work activities.A total of ??? hazard sources were identi?ed, including ? major risks, ?? signi?cant risks, ??? general risks, and ??? low-levelrisks—all of which have now been recti?ed. These e?orts have signi?cantly improved our overall safety management andestablished a benchmark for re?ned, high-standard mine safety practices.
In accordance with the notice issued by the National Mine Safety Administration titled "Criteria for Identifying Major SafetyHazards in Metal and Non-Metal Mines" (Mine Safety [????] No. ??), Duchang Jinding conducted a detailed self-assessmentagainst the standards for open-pit mines and tailings pond to ensure stable and safe mining operations. Ahead of the ?oodseason, we carried out risk identi?cation and special safety inspections at the tailings dam and commissioned the MaanshanInstitute of China Steel Group to perform pre-?ood discharge calculations. We implemented pre-?ood water level reductionsand, during the ?ood season, ensured ??-hour shift coverage by both managers and tailings personnel. Strict water level controlmeasures were enforced to meet safety elevation, dry beach length, and ?ood control capacity standards. We also conductedsystematic inspections of reservoir areas, drainage structures, sub-dams, dam bodies, and online monitoring systems.Discharge operations and sub-dam construction were closely monitored to ensure that the tailings pond operated safely andsteadily throughout the year.
Technology Center Safety Inspection
Plant Safety InspectionConstruction Site Safety Inspection
Highlight | Safety Inspections in Mining Areas
Highlight | Safety Inspection in Haicang Golden Egret
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We actively organized activities in celebration of "Work Safety Month." During the campaign, we displayed themed posters androll-up banners, conducted company-wide safety training sessions, encouraged employees to participate in safety knowledgequizzes on the LianGongBao platform, and promoted the viewing of the "Emergency Escape Training Camp" video series onLittleRedBook. These initiatives further enhanced employees' safety awareness and preparedness.
Highlight | "Work Safety Month" Campaign
We adhere to the principle of "safety ?rst, prevention foremost" and have built a comprehensive safety incident manage-ment system to ensure timely response and e?ective control of accidents. All employees are required to report incidentsimmediately upon occurrence. Each incident is investigated by a designated investigation team, which analyzes the causes,sequence of events, and responsibility, and formulates corrective measures. Depending on the severity of the incident, wehandle the responsible parties in accordance with laws and regulations. We also provide appropriate support to injuredemployees and promptly submit applications for work-related injury recognition to the relevant authorities, therebysafeguarding the legal rights and interests of our employees. We regularly assess our work safety incident managementperformance and continuously improve related policies and procedures to enhance our capabilities in both accidentprevention and emergency response. During the reporting period, there were ?? persons with work-related injuries acrossthe company and subsidiaries, with a total of ?? work-related incidents. No fatalities were reported.
Occupational Health and Safety Incident Management
We place a high priority on occupational health and safety training and strictly comply with the requirements outlined inthe "Group Safety Supervision and Management Regulations" and the "Basic Speci?cations for Work Safety." We continu-ously promote safety education to enhance safety awareness across the organization. During the reporting period, wedeveloped and implemented an annual work safety training plan covering topics such as work safety standardization, thework safety accountability system, work safety management regulations, and emergency response plans. We conductedtargeted training programs in areas including chemical management, electrical safety, working at heights, con?ned spaceoperations, energy isolation, and lockout-tagout procedures and ?re safety, as well as emergency management training.These e?orts have signi?cantly improved employee safety awareness and operational skills. Additionally, we established aSafety Culture Research Group to conduct surveys and gain deeper insights into employees' understanding and perceptionsof safety culture. These ?ndings provide a strong foundation for promoting and embedding safety culture across thecompany. We also strengthened safety training for contractors to reinforce compliance with safety regulations and raiseawareness of safe work practices. During the reporting period, we organized multiple safety training sessions, with a total of??,??? participants.
Occupational Health and Safety Training
We continuously improve our emergency management system and strictly implement the "Group Safety Supervision andManagement Regulations," the "Group Emergency Response Plan Management Guidelines," and the "Emergency Plan forExtreme Weather Events." Both our headquarters and subsidiaries develop risk-speci?c prevention measures, emergencyresponse plans, and handling procedures to ensure swift and e?ective responses in the event of emergencies. Weorganize regular emergency drills to raise employee safety awareness and enhance emergency response capabilities,striving to achieve our safety goal of "safety awareness for all, emergency readiness for everyone."
During the reporting period, in alignment with the Work Safety Month theme, we conducted specialized work safetytraining on emergency management to further strengthen employee preparedness. Together with our subsidiaries, weheld a total of ?,??? emergency drills, covering ?re safety, natural gas boiler leak response, anti-terrorism and anti-riotscenarios, and nighttime evacuation exercises.
Emergency Management and Drills
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Fire Drills
Emergency Drills
At Ninghua Xingluokeng, we have promoted improvements in mine safety management through a structured and systematicapproach to building a strong safety culture. We developed an annual work safety education and training plan and issued the"????????? Safety Culture Development Guidelines" to provide a standardized and systematic framework for advancing safetyculture across operations. In daily work safety training, we consistently organize targeted safety awareness and educationprograms. These include job-speci?c risk prevention training and pre-task KYT (Kiken Yochi Training, or Hazard PredictionTraining) to enhance employees' ability to identify potential risks. For mechanical maintenance teams, we implement a "onetheme per month" program to strengthen job-speci?c safety skills. During daily pre-shift meetings, we include a "three-minutesafety" session to study policy documents and accident case warnings, reinforcing safety awareness at all levels. We also bringin external expertise by inviting safety culture experts from the Ministry of Emergency Management's Public EducationDepartment to conduct policy brie?ngs. Additionally, we organize discussion sessions to analyze weaknesses in our work safetymanagement practices and identify key directions for enhancing our safety culture. Through these comprehensive initiatives,the Xingluokeng Mine has built a solid foundation for a collaborative, company-wide work safety management culture thatemphasizes participation at all levels.
At Luoyang Yulu, we follow the guiding principle of "safety ?rst,prevention foremost, and comprehensive management" byorganizing a range of activities, including the "Everyone TalksSafety—Let Me Speak" short video competition, the "Everyone IsEmergency-Ready—Let Me Practice" emergency drill contest, CPRand AED operation skill competitions, emergency escape trainingcamps, and safety knowledge competitions on the LianGongBaoplatform. These programs help strengthen both safety awarenessand practical skills among employees. In addition, we launched atraveling lecture series in Luanchuan County focusing on safetyeducation for non-coal mines. The program featured videolectures covering key topics such as mine work safety manage-ment requirements, mine safety supervision and emergencyresponse, and interpretation of criteria for identifying major minehazards. These e?orts further enhanced employees' understand-ing and attention to mine safety.
We continue to improve the "Supplier Code of Conduct," which clearly de?nes the requirements for suppliers andcontractors in areas such as emergency preparedness and response, chemical management, and infectious diseaseprevention and control. These measures strengthen work safety oversight and help ensure that potential safety hazards areidenti?ed and eliminated in a timely manner. We require all suppliers and contractors to establish measurable goals suchas zero accidents and zero fatalities, continuously improving their occupational health and safety performance. Together,we aim to build a safe, healthy, and sustainable supply chain system. Some of our subsidiaries have implemented robustmeasures for managing outsourced contractors, including quali?cation reviews, safety management agreement signing,routine supervision and inspection, and monthly safety evaluations. Special safety inspections are conducted foroutsourced activities, which are managed under a "site entry approval?safety agreement?safety brie?ng?safety training"protocol. These e?orts help minimize the risk of work safety incidents involving external contractors. During the reportingperiod, all outsourced units were e?ectively managed, and no work safety incidents occurred.
As a critical component of mining operations, the safe and stable operation of tailings pond is directly linked toecological security and the well-being of surrounding communities. We strictly comply with domestic laws andregulations such as the "Environmental Protection Law of the People's Republic of China," the "Safety TechnicalSpeci?cations for Tailings Pond," the "Guidelines for Safety Standardization in Metal and Non-Metal Mines," and the"Implementation Guide for Tailings Pond in Safety Standardization of Metal and Non-Metal Mines." We have establisheda full-lifecycle management system covering the design, construction, operation, maintenance, monitoring, closure,and post-closure phases of tailings pond. In addition, we actively adopt international standards and best practices,including the "Global Industry Standard on Tailings Management" (GISTM), to implement standardized and modernizedmanagement of our tailings pond. By applying high-standard anti-seepage systems, monitoring and early warninginfrastructure, and optimized drainage and ?ood control designs, we ensure the structural integrity and operationalsafety of each facility. We deploy specialized teams for ??-hour online monitoring and utilize intelligent sensortechnologies to track key parameters such as dam displacement, phreatic levels, and pond water levels in real time. Wealso conduct regular safety assessments and risk inspections to proactively eliminate potential hazards. Furthermore,we are committed to advancing research and development in tailings resource utilization technologies. By exploringnew processes for tailings volume reduction and environmentally friendly treatment, we aim to minimize environmen-tal risks. Through ecological restoration initiatives and the establishment of emergency response mechanisms, wecontinuously strengthen our capacity for environmental risk prevention and control, providing a strong foundation forthe sustainable development of our mining operations.
In ????, XTC Haicang Branch continued to deepen the development of a strong safety culture by organizing four keysafety-themed events: The Environmental Protection and Safety Day, the " Prevention and Control of Occupational DiseasesLaw of the People's Republic of China"Safety Advocacy Week, the Work Safety Month, and the Fire Safety Month. Through acombination of EHS system-based training and assessments, on-site Q&A sessions, case analysis, themed activities, site visits,and employee pledges, we evaluated employees' understanding of fundamental safety knowledge. These activities signi?cant-ly enhanced awareness of environmental protection, improved work safety consciousness, and strengthened employees'operational safety skills.
Contractor Occupational Health and Safety Management
Tailings Pond Safety Management
Highlight | Mining Safety Education and TrainingHighlight | Diversi?ed Safety Culture Initiatives
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In ????, we conducted an emergency drill at the Wangtongkeng Tailings Pond of Ninghua Xingluokeng. The drill simulated anemergency scenario in which continuous rainfall caused the collapse of a ?ood diversion channel, leading to a rising water levelin the tailings pond and the risk of overtopping. In response, we promptly activated our emergency response plan. Rescueteams were mobilized to clear the collapsed diversion channel, remove debris around the drain shaft, reinforce the phreaticsurface, excavate additional drainage ditches, and successfully evacuate residents from downstream villages. These measureseliminated the overtopping risk and restored normal operations at the facility. This exercise veri?ed the operability, coordina-tion, and e?ectiveness of our emergency response plan and signi?cantly improved the responsiveness and incident-handlingcapabilities of our emergency teams.
In ????, Duchang Jinding conducted a high-alert water level emergency drill at the Hushan Tailings Pond. The drill simulated a?ood overtopping risk caused by sustained heavy rainfall and tested the company's emergency response and rescue protocolsunder such conditions. We organized eight coordinated task groups: Emergency Command, Communications, Supplies andLogistics, Alert and Evacuation, Medical Aid, Rescue Operations, Pollution Control, and Incident Documentation. Together,these teams successfully executed the full cycle of emergency response—from risk reporting and emergency plan activation toon-site mitigation actions including ditch excavation, drainage installation, and clearing of drainage wells. The exerciseenhanced employees' understanding of incident reporting and emergency response procedures. It also improved theirfamiliarity with the emergency plan and strengthened their practical response skills. Lessons learned from the drill helpedidentify and address shortcomings, further increasing the scienti?c rigor, practicality, and operability of our emergencyresponse system.
In ????, Duchang Jinding organized an emergency drill simulating slope collapse and landslide scenarios at an open-pitmining site. The primary objectives were to assess the e?ectiveness of the emergency response plan, enhance the emergencyresponse capabilities of personnel under crisis conditions, clarify the roles and responsibilities of departments and individualsinvolved in emergency management, and strengthen coordination and collaboration across teams.
Highlight | Emergency Drill at Wangtongkeng Tailings Pond
Highlight | Emergency Drill for Alarmed Water Level at Hushan Tailings Pond
Highlight | Emergency Drill for Open-Pit Mine Slope Collapse and Landslides
Tailings Pond Safety Monitoring System
We have established a highly responsive and e?cient tailings pond safety monitoring system that integrates network,measurement and control, and communication technologies. This system forms a comprehensive end-to-end monitoringnetwork covering both "front-end real-time monitoring" and "back-end data management." The system consists of a real-timefront-end monitoring and early warning subsystem and a back-end data analysis and sharing platform. It enables automatedmonitoring of key indicators such as surface displacement of the starter dam, internal vertical displacement, phreatic linelevels, pond water levels, dry beach conditions, rainfall, pH levels, water quality, and site imagery across the tailings pond.
Safety and Environmental Risk Inspection
We implement comprehensive safety oversight of tailings pond, including routine patrols and monitoring, ?ood safety checks,dam structure inspections, and general site inspections. A ??-hour on-duty monitoring system is in place to ensure dailyinspections and records of the facility. Each workshop conducts weekly inspections of TSF safety, ?ood control structures,online monitoring systems, emergency supplies, and communication infrastructure. In addition, monthly risk assessments arecarried out at both the departmental and company levels. Ahead of the ?ood season, we intensify special inspections andstrictly enforce a ??-hour leadership duty roster to ensure timely and e?ective resolution of safety and environmental hazards.
Safety Emergency Management
We continuously improve our emergency response mechanisms and regularly update specialized emergency plans for damfailure, environmental emergencies, and on-site incident handling procedures. We actively organize safety emergency drillsand incorporate emergency preparedness into our annual priority work plans and performance evaluations.
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We have implemented the "In?rmary Management Regulations" and the "First Aid Management Regulations,"established on-site in?rmaries, and strategically installed medical kits and automated external de?brillators (AEDs)in workplaces. These resources are regularly inspected and maintained.First Aid
andHealthcare
We continuously upgrade equipment and optimize production processes to reduce occupational risks. Byintroducing advanced technologies and improving the work environment, we lower exposure to harmful factorsand minimize potential hazards.HazardReduction
In ????, Luoyang Yulu optimized its on-site emergency responseinfrastructure by strategically installing Automated External De?brillators(AEDs) across the facility, ensuring that all employees can accessemergency equipment within three minutes. We also conducted trainingsessions and skills competitions on "Cardiopulmonary Resuscitation(CPR) + AED Operation." Pro?ciency in CPR and AED usage has beenincorporated into employee performance evaluations and compensationadjustment criteria, underscoring our strong commitment to employeehealth and workplace readiness.
We strictly comply with national occupational health and safety regulations and, based on industry characteristics andour operational realities, have developed a series of occupational health management systems and operatingprocedures to continuously improve our occupational health management framework. In terms of infrastructure, weconsistently invest in improving the workplace environment. We provide standard-compliant protective equipment andregularly monitor occupational hazard factors such as noise, dust, and toxic or harmful substances in the workenvironment. Employees are equipped with personal protective equipment (PPE) that meets occupational healthrequirements to ensure both the safety and comfort of their working conditions. In the area of health management, wehave established a comprehensive occupational health surveillance system that includes health checks for employeesbefore, during, and after employment. We also maintain individual occupational health records for all employees.Regular training sessions on occupational health knowledge are conducted to enhance employees' self-protectionawareness and capabilities. For employees in high-risk positions, we implement focused monitoring and personalizedhealth management plans to ensure a safer and healthier work environment for all.
Occupational Health
Highlight | AED: Help Within ReachTailings Pond Closure Management
To ensure the long-term safety and stability of tailings pond, we carry out structured closure and remediation work forfacilities scheduled to be decommissioned. These e?orts ensure that the ?ood control capacity and dam stability of thefacilities meet national legal and regulatory requirements. For the Qipanshan Tailings Pond, which has already beenclosed, we conduct regular inspections focused on ?ood prevention and work safety, implement ongoing stabilitymonitoring, and continuously track the e?ectiveness of remediation measures. For the Wangtongkeng Tailings Pond atNinghua Xingluokeng, we initiated closure planning even before the facility reached its design storage height. The closuredesign includes comprehensive plans for dam reinforcement, drainage system upgrades, and ecological restoration. Thisproactive approach aims to establish a full life-cycle safety management loop for the facility. Following the completion ofthe closure design, we carry out construction in strict accordance with relevant national laws and regulations. Uponcompletion, a formal acceptance inspection is conducted to ensure compliance and long-term safety.
Physical and Recreational Activities
To support employees' physical and mental well-being, we provide facilities such as badminton courts, basketball courts,football ?elds, and ?tness centers. In addition, we organize a variety of sports and recreational activities to enrichemployees' leisure time and foster a vibrant workplace culture.
We closely monitor employee occupational health status. For employees in positions involving occupationalhazards, we conduct pre-employment, on-the-job, and exit occupational health check-ups. Examination resultsare documented and archived, and we adjust job assignments as necessary based on employees' healthconditions.EmployeeHealthExaminations
For departments and workplaces involving occupational hazards, we place warning signs at prominent locationsat entry points to alert individuals before entering the area. New employees are required to sign an occupationalhazard acknowledgment form to ensure they fully understand potential occupational disease risks and preventionrequirements associated with their roles.Occupational
HazardWarnings
We regularly conduct occupational health and safety training sessions or seminars to encourage employees toadopt healthy workplace habits. These sessions promote awareness of occupational hazards and preventivemeasures, fostering a proactive approach to occupational health management.Occupational
HealthEducation
In strict accordance with national laws and the "Regulations on the Management of Personal ProtectiveEquipment," we provide employees with certi?ed, job-appropriate labor protection gear. Clear signage is placed inrelevant areas to guide employees on the correct and standardized use of PPE.PPEDistribution
and Use
We engage quali?ed third-party institutions to carry out regular and comprehensive occupational health riskassessments for subsidiaries involved in mineral extraction and processing. These assessments cover productionprocesses, equipment layouts, sanitation conditions, the presence and severity of occupational hazards,protective and emergency response facilities, health monitoring practices, use of personal protective equipment(PPE), and occupational health management. We continuously improve practices based on assessment results.
HazardAssessment
Prevention of Occupational Disease
We strictly implement the "Basic Speci?cations for Work Safety" and have established a systematic health monitoring andprevention protocol. We proactively identify, assess, and manage occupational health hazards, and have standardizedprocedures for investigating and handling occupational disease-related incidents. These e?orts are aimed at preventingpotential work-related or occupational injuries and health issues. Key occupational disease prevention measures include:
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Governance
Risk ManagementInternal Control and ComplianceCommercial Behaviors
Audit Department and DisciplineInspection & Supervision O?ce(Oversight Departments)
R&D, Manufacturing, Procurement,and Sales DepartmentsResponsible for risk managementintheir respective functions.
Serving as the decision-makingauthority for risk management acrosssubsidiaries, it assumes responsibilityfor the e?ectiveness of risk identi?ca-tion, assessment, and control withinthose entities.
Serving as the company,stopdecision-making authority on riskmanagement, it assumes overallresponsibility for the planning,establishment, and e?ective implementa-tion of the risk management system, aswell as for ensuring its e?ectiveness.
PartyCommitteeMembers
President'sExecutive
TeamMembers
Risk Management Leading Group
PartyOrganizationMembers
ExecutiveCommitteeMembers
Risk Management Leading Group
Supervision Role
Designated RiskControl DepartmentsSubsidiaries
Designated Department(Position)for Risk Control FunctionsOther Functional Departments
Specialized
Support
Functional departmentsserving as the ?rst line of defensewhen performing their own duties,and as the second line of defensewhen undertaking supervisory andcontrol responsibilities
Establish and improve a comprehensive risk managementsystem "centered on business units and goal-oriented,"continuously optimizing risk management policies andprocesses. Through dynamic control covering the entireoperation and business activities before, during, and afterevents, improve the level of risk management.Continuously improve the company's risk managementmechanism by establishing and optimizing a closed-loopmanagement process that includes risk identi?cation, riskanalysis, risk response, risk tracking and reporting,supervision, and continuous improvement.Focus on business objectives, align with the company'smanagement model and business practices, andcontinuously improve the internal control system, drivingthe development of internal control policies and processes.Deepen the implementation of internal inspection andsupervision mechanisms through internal managementaudits, internal control evaluations, and other methods,promptly identify issues, and implement corrective actionsto improve internal controls and enhance businessmanagement levels.
Internal Controland Compliance
We have always regarded improving corporate governance as an important guarantee for achieving sustainable development.By building a modern governance system aligned with international standards, we actively practice the United NationsSustainable Development Goals (SDGs), especially Goal ??, which focuses on building e?ective, accountable, and inclusiveinstitutions. Adhering to the corporate philosophy of "pay attention to details, strive for progressive technology, advancesteadily, endeavor to enhance the markt share, and focus on long-term interests," we continuously establish and improve acomprehensive enterprise risk management system, striving to achieve a dynamic balance between risk prevention and valuecreation. The company abides by the highest standards of business ethics, ensuring compliance and integrity in operations tosolidify the foundation for corporate development. Additionally, through supply chain management and industrial collabora-tion, we extend good governance practices across all links of the value chain, promoting the sustainable development of theentire business ecosystem.
Promote the development of thecompany's comprehensive riskmanagement system and graduallyexpand the scope of pilot projects toinclude a?liated enterprises.
Establish and improve the internalcontrol system, continuouslyenhancing internal control policiesand processes
Always uphold high-standard business ethics as thefundamental principle and code of conduct in businessoperations. Adhere to honest and compliant operations, andestablisha "Code of Business Conduct" to guide and regulatethe behavior of all employees in the company and its a?liatedenterprises at all levels.
Strictly comply with Chinese laws and regulations, as well asrelevant tax laws, regulations, and policies in each businesslocation. Adhere to compliance, honest tax payment, andtransparent management principles in tax matters, activelyprevent and manage tax risks, and ensure tax compliance.Establish and improve a complaint and reporting mechanism,encouraging all stakeholders to report any violations ofbusiness ethics or raise concerns and suggestions regardingbusiness ethics, human rights protection, and other matters.Implement a series of whistleblower protection measures tosafeguard the legal rights and interests of whistleblowers.
Improve a horizontal collaborative supervision mechanism,build a comprehensive integrity supervision network, andestablish and improve mechanisms for cross-checkingsupervision, work exchange, special supervision, and integrityrisk prevention tests, continuously strengthening theprevention and control of integrity risks.Commercial
Behaviors
Eliminate any con?icts of interestEliminate any insider trading incidents
Adhere to legal tax payment and ensureno tax-related violations occurActively conduct integrity educationactivities to ensure ???% employeeparticipationEliminate any involvement in moneylaundering activitiesEliminate any unfair competitionpractices
???? ManagementObjectivesGovernanceMatters
Practical Measures
Risk Management
A comprehensive risk management system is the foundational support for the long-term and stable development of anenterprise. We have established a risk management system that covers all business areas, centered around business units andguided by the achievement of goals, based on our actual business operations and development. In alignment with the ISO????? risk management framework standards, we have developed the "Comprehensive Risk Management System" and the"Operational Guidelines for Comprehensive Risk Management," integrating risk management requirements deeply into dailybusiness decisions and processes. We cultivate a risk management culture that involves all employees, ensuring that businessactivities are carried out in an orderly manner under the premise of manageable risks, thereby building a solid defense for thesustainable growth of the enterprise.
Risk Management
We have established a clear risk management structure and incorporated the e?ectiveness of risk management into theannual performance evaluation system to e?ectively implement risk management responsibilities. In cases where signi?cantrisks arise due to decision-making errors, management negligence, inappropriate actions, or other reasons, resulting in lossesto the company, we will hold the responsible individuals accountable in accordance with internal regulations.
◎ Risk Management Structure
Control Layer
First Line of
Defense
Second Lineof Defense
Third Line of
Defense
Group LevelSubsidiaries Level
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We continuously improve and re?ne a scienti?c risk classi?cation and control mechanism, categorizing risks into di?erenttypes such as strategic, ?nancial, legal and compliance, operational, and integrity risks, and implementing di?erentiatedcontrol measures. For various types and levels of risk, we have established a closed-loop management process of "identi?ca-tion - assessment - response - reporting." By developing a risk database and an early warning indicator system, we achievedynamic monitoring and continuously enhance risk management and control.
We identify and categorize risks through internal and external information collection, risk interviews, scenario analysis, andcase studies. By aligning these insights with our business activities, we further identify speci?c risks under each risk categoryand develop an enterprise risk map. We also update the risk register in a timely manner based on changes in our risk responsestrategies and the evolving business environment.
Risk MatrixHigh
Low
LowHigh
Likelihood of Occurrence
Severity of ImpactComprehensively analyze the likelihood and severity of various risks, and determine risks with priority and develop a risk matrix.
B
D
A
C
◎ Risk Management Procedure
Identi?ed Risk Categories
Strategic Risk
CorporateGovernance Risk
Financial RiskOperational Risk
HumanResources RiskPublic A?airs RiskData Risk
InformationDisclosure Risk
Legal andCompliance Risk
Integrity Risk
Risk Identi?cation
Each functional department at the company headquarters and a?liated enterprises assess and prioritize the identi?ed risksbased on factors such as the likelihood of occurrence and potential impact, in order to determine risk priorities, develop acore risk list and de?ne the responsible parties for risk management. The Risk Management Leading Group is responsible forconducting a comprehensive evaluation across the entire group to identify major risks. Through risk assessments, we lay thefoundation for establishing risk response and tracking mechanisms.
Risk Assessment
We formulate response strategies tailored to di?erent types of risks, aligning with its risk appetite, tolerance levels, andavailable risk management resources. These strategies include risk avoidance, risk transfer, risk mitigation, and riskacceptance. Our subsidiaries formulate risk reponse strategies based on factors such as risk appetite, risk tolerance, likelihoodof occurrence, and potential impact. Corresponding control measures are implemented through red-line prohibitions, internalcontrol optimization, and targeted management initiatives. For example, in the case of Human Capital Risk and Legal &Compliance Risk identi?ed by the Company:
Risk Response
Establish and improve relevant systems andregulations for the protection of trade secrets, set upcon?dentiality mechanisms and reward-punishmentsystems, and take appropriate measures to e?ectivelyprotect trade secrets. Personnel who violatecon?dentiality obligations will be subject tocorresponding penalties. Through various forms ofpublicity and education, communicate the relevantsystems and requirements for trade secret protectionto employees, and enhance their awareness of tradesecret protection.
Implement targeted talent development programsand provide diverse training opportunities.Continuously improve performance managementand promotion mechanisms to create clear careerdevelopment paths for employees. O?er compensa-tion that matches their value contribution and iscompetitive in the external market, and establishlong-term incentive and constraint mechanismsbased on shared interests and mutual risks. Grantincentive equity to fully motivate core personnel andattract and retain professional talents.
As a high-tech enterprise with numerous coretechnologies, the company faces the risk of tradesecret leakage during the R&D phase, patentapplication process, commercial cooperation, anddaily operations. This could lead to economic losses,damage to the company's business reputation, adecline in market share, and hinder the achievementof business objectives.
Trade Secret Risk :
As a national high-tech enterprise, core professionaltalents are a key driver of the company's develop-ment. With the rapid growth of market demand andincreasing industry competition, the demand for R&Dand technical talents within the industry is growingrapidly, leading to intensi?ed competition for talent.The company may face the risk of losing coretechnical and professional personnel, which couldhave an adverse impact on the company'stechnological R&D and innovation.
Key Talent Turnover Risk :
Legal &Compliance
Risk
Human
Capital
Risk
Response MeasuresRisk DescriptionRiskCategory
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We place great emphasis on cultivating risk awareness among all employees and consider risk management an importantpart of employee training. We have established a "Group Policy Portal" platform to release newly added or revised riskmanagement and internal control-related policies in real-time. We also regularly organize specialized risk managementtraining sessions, case studies, and experience-sharing activities to help employees understand the importance of riskmanagement and master basic skills in risk identi?cation and prevention. We actively foster a corporate culture that valuesrisk management, encouraging employees to proactively identify and report potential risks in their daily work to ensure thestable operation of the company. During the reporting period, we conducted ?? sessions of comprehensive risk managementtraining and coaching sessions in pilot companies.
Focusing on key aspects of operations and business activities, we carry out special audits of our subsidiaries to promptlyidentify shortcomings in management and ensure corrective actions are implemented. These e?orts serve to intensifyoversight, enhance the management capabilities of subsidiaries, and improve their ability to manage risks. During thereporting period, we conducted the following special audit activities:
We regularly conduct self-assessments on the implementation of risk management in our a?liated enterprises and acceptsupervision from the risk management functional departments. This allows us to identify and address any gaps in riskmanagement, continuously improving our risk management capabilities. The Audit Department, in conjunction with annualaudits and special audits, supervises and evaluates whether each a?liated enterprise is conducting risk management incompliance with regulations and the e?ectiveness of their risk management e?orts. The ?ndings are then reported to the RiskManagement Leading Group.◎ Risk Control and Compliance Education
Internal Control and Compliance
◎ Special Audit
During the reporting period, we conducted internal control reviews and evaluations at our headquarters and ?? subsidiaries.These evaluations covered key business areas, including procurement, sales, contract management, asset management, andcash ?ow operations. The process enabled the timely identi?cation of de?ciencies in both the design and implementation ofinternal controls, with corrective measures promptly carried out. These e?orts helped strengthen our internal controlframework and enhance overall risk management capabilities.
◎ Internal Control Evaluation
We have established and implemented a risk reporting mechanism to continuously monitor the risk landscape across various areas,track the e?ectiveness of risk response plans, and summarize risk management activities in a timely manner. Additionally, throughemergency drills, we assess the e?ectiveness of risk emergency plans, analyze and summarize the plans, and improve our riskresponse and recovery capabilities. The speci?c management measures of the risk reporting mechanism include:
Risk Reporting
A?liated enterprises must report risk managementstatus in a timely manner through regular reports,annual reports, special reports on major risks, andrisk event reports, as required.
When a major risk event occurs, the department where the risk arisesmust report it to the Risk Management Leading Group immediately,assess the outcome of the event, and develop a response plan. The RiskManagement Department will then coordinate with relevantdepartments to implement risk response measures. In addition, majorrisk events of a special nature must also be reported in a timely mannerto the corresponding functional management departments and theLegal and Risk Management Department at headquarters, in accordancewith the speci?ed time requirements.
We continuously improve our internal control system in align with ouroperational goals, management model, and business practices. We advancethe development of internal control policies and procedures, strengthen theveri?cation and supervision mechanisms, and enhance internal controls toe?ectively mitigate major operational risks. The Board of Directors hasestablished an Audit Committee responsible for overseeing and reviewing theinternal control system and the implementation of our internal controlframework. Our Audit Department supervises and reviews the developmentand execution of internal control systems across our company and oursubsidiaries, and follows up on necessary recti?cations. The Audit Depart-ment reports to the Audit Committee and provides regular updates.We reinforce internal oversight by conducting special audits, internal control evaluations, targeted reviews of major matters,and routine inspections. These e?orts help identify operational risks and any weaknesses or de?ciencies in the internalcontrol system in a timely manner, prompting relevant units to take corrective actions. Together, these actions contribute tothe continuous improvement of internal controls, enhancement of management e?ciency, and prevention of risks.
We conducted special audits on inventory management at ?? subsidiaries, reviewing the soundness of inventorymanagement systems and the e?ectiveness of their implementation. The audits aimed to strengthen demand planning,inbound and outbound approval processes, warehouse operations, and the control of obsolete or slow-moving inventory,thereby improving asset utilization e?ciency.We conducted special audits on project management for two subsidiaries, focusing on project investment planning,early-stage project development, process control during implementation, the formulation and enforcement of projectmanagement policies, payment procedures, ?nal settlement execution, asset authenticity, and project e?ectiveness.These audits aimed to enhance subsidiaries' project management capabilities.We conducted special audits on internal management at two subsidiaries, evaluating the design and implementation ofinternal control systems. Based on the ?ndings, we provided guidance was provided to improve approval procedures andinternal processes, further standardizing subsidiary operations and enhancing risk mitigation capabilities.We conducted accountability audits at seven subsidiaries, aiming to promote improvements in business operations andsupport the achievement of strategic objectives.
Special Auditon InventoryManagementSpecial Auditon ProjectManagementSpecial Auditon InternalManagementAccountabilityAudit
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We regard integrity as a fundamental principle of our operations and have established a high-standard "Code of BusinessConduct" to serve as the foundational guideline for business practices and behavioral expectations. This code de?nes clearethical boundaries for all business activities. In conducting our operations, we adhere to the principles of transparency andfairness, fostering long-term partnerships based on mutual trust. We have also put in place e?ective supervision mechanismsand reporting channels to ensure that ethical standards are rigorously upheld. By regularly promoting ethics awareness andconducting case-based warning education, we strengthen employees' ethical awareness and sense of self-discipline. Aculture of integrity is deeply embedded in our values, helping shape a trustworthy brand image and earning the trust andrespect of stakeholders.
Commercial Behaviors
We maintain a zero-tolerance policy toward all forms of corruption and bribery. We have established the "ManagementRegulations on Anti-Corruption and Anti-Bribery," which clearly de?ne prohibited conduct, including accepting or o?eringbribes, soliciting any direct or indirect bene?ts from individuals or organizations, and misappropriating company assets bytaking advantage of one’s position. All employees are strictly required to comply with our standards of integrity andself-discipline.We have established a four-tier disciplinary supervision structure composed of the Communist Party of China (CPC)Disciplinary Committee of Xiamen Tungsten Co., Ltd. (hereinafter referred to as the "XTC Disciplinary Committee" or"Disciplinary Committee"), regional disciplinary inspection teams, company-level disciplinary bodies, and disciplinaryinspection commissioners at the grassroots level. Innovatively, we have developed a vertically integrated supervisionmechanism known as "O?ce-Team-Enterprise" (referring to the Disciplinary Inspection and Supervision O?ce at XTCheadquarters, regional inspection teams, and disciplinary o?cers at subsidiaries). Meanwhile, we continue to improve ourhorizontally coordinated supervision system. Led by the XTC Disciplinary Committee, this system integrates the e?orts of theDisciplinary Inspection and Supervision O?ce, the Audit Department, functional departments, and relevant positions atsubsidiaries, forming a comprehensive integrity supervision network. A series of institutional mechanisms have been put inplace, including cross-inspection mechanisms, communication and coordination mechanisms, thematic supervisionmechanisms, and walkthrough testing for integrity risk control. These e?orts aim to further integrate discipline inspectionwith our development and strengthen supervisory oversight.We have formulated the "Accountability Management Measures," establishing procedures for holding individuals accountablefor violations of integrity requirements across both our headquarters and subsidiaries. The measures set out detailedprovisions for accountability in areas such as internal management and risk control, labor discipline and behavioralstandards, procurement and sales oversight, safety and environmental protection, and self-discipline in integrity. Violationsare handled strictly in accordance with relevant regulations and disciplinary rules. For individuals held responsible, we may,in accordance with the regulations, impose disciplinary actions including, but not limited to, public criticism, admonition,suspension, job reassignment, demotion, removal from o?ce, deduction or recovery of performance-based compensation orterm-based incentive income, and the clawback of medium- to long-term incentive bene?ts.During the reporting period, we continued to improve our disciplinary supervision system by revising the "AdministrativeMeasures for Regional Discipline Inspection Team Leaders" and the "Work Procedures for Quarterly Thematic WalkthroughTesting on Integrity Risk Control." Through coordinated “O?ce-Team-Enterprise” supervision, walkthrough testing onintegrity risk control, and e?ciency inspections, we urged relevant functional departments and subsidiaries to further re?netheir operational management systems. In addition, we launched a group-wide information system for reviewing andtracking feedback on Party conduct and integrity. During the year, a total of ?,??? responses were issued regarding internalpromotions of cadres at subsidiaries.
◎ Anti-Commercial Bribery and Anti-Corruption
We have established a sound mechanism for identifying and assessing integrity risks, conducting a comprehensive review ofall operational processes. The scope covers ?? business modules, including ?nancial budgeting, corporate governance,procurement management, sales management, manufacturing, and operations management. For each module, we haveidenti?ed potential integrity risk points in key areas and critical steps, and formulated corresponding preventive and controlmeasures. These e?orts are consolidated into the "XTC Integrity Risk Prevention and Control Manual." Based on actualoperational conditions, we conduct integrity risk identi?cation and assessments on an ad-hoc basis and continuously reviewand update the "XTC Integrity Risk Prevention and Control Manual" accordingly.Our Disciplinary Committee continues to improve the audit and oversight mechanism for integrity risk prevention andcontrol, further deepening its implementation. Through pre-event supervision, the Company enhances control over "Majordecision-making, major personnel appointments and dismissals, major project investment decisions, and large fundutilization" decision-making matters at both the Company and its subsidiaries. Relevant functional departments anddisciplinary inspection o?cers at subsidiaries incorporate the implementation of this audit mechanism into their routineinspections to ensure e?ective execution and prevent potential integrity risks. During the reporting period, disciplinaryinspection o?cers attended a total of ??? important meetings at various subsidiaries related to the above matters. A total of??? self-assessment audit checklists were completed, with corrective measures implemented for identi?ed issues. Thesee?orts contributed to the ongoing standardization and re?nement of related decision-making procedures and authority,further improving the precision and e?ectiveness of oversight.Our Disciplinary Committee has established and re?ned key oversight mechanisms, including the "?+X" Special InspectionMeasures for Implementing the Central Eight-point Guidelines and the Quarterly Thematic Walk-through Testing Measures forIntegrity Risk Prevention and Control. These mechanisms are rigorously enforced to strengthen targeted inspections andwalk-through testing focused on integrity risks. We continuously improve our supervision methods and strategies byorganizing regional disciplinary inspection team leaders to carry out supervision and inspection activities within theirrespective jurisdictions. These e?orts aim to promptly identify issues in business operations and potential corruption risks,while urging relevant units to enhance internal systems, optimize work?ows, and reinforce oversight execution. Throughthese measures, we proactively prevent integrity risks and help avoid violations and corrupt practices.
Integrity Risk Management
Special Supervision
We conducted "?+X" special supervision at ?? subsidiaries, issued ?? recti?cation recommendation letters,identi?ed ??? issues, and followed up to ensure corrective actions were implemented.We conducted focused inspections during major holidays—including New Year’s Day, Spring Festival, LaborDay, Dragon Boat Festival, Mid-Autumn Festival, and National Day—at ? subsidiaries through both announcedand unannounced visits, as well as “O?ce-Team-Enterprise” joint supervision supporting Higher-levelDisciplinary Committee. A total of ?? issues were identi?ed and fully recti?ed.In response to irregularities in engineering bidding and procurement, we launched special recti?cationactions. A total of ?? subsidiaries conducted self-inspections jointly with relevant functional departments.Thirteen issues were identi?ed and fully recti?ed.We conducted special supervision on labor employment practices at ?? subsidiaries. Nineteen recti?cationnotices were issued, ?? issues were identi?ed, and corrective actions were implemented.We required subsidiaries to establish and improve approval and registration systems for gift procurement anduse. The giving or receiving of gifts or monetary gifts in o?cial activities or between internal hierarchical levelswas strictly prohibited.We conducted e?ciency supervision on supplier selection and project bidding processes, identifying ???issues that were all recti?ed. A total of ?? internal regulations were introduced across subsidiaries to ensurecompliance in material procurement and project execution.We conducted a special inspection on commissions and intermediary fees related to overseas projects at ??subsidiaries, identifying and rectifying ?? issues. We also carried out a targeted inspection on prominentoverseas corruption risks, with ? overseas entities reviewing ?ve key areas including unauthorized investmentand malicious competition. These e?orts strengthened our overseas integrity risk control.
"?+X" Special SupervisionHoliday InspectionsSupervision ofConstruction ProjectsLabor EmploymentRecti?cation ProjectsRecti?cation on Giftsand Gift MoneyE?ciency Supervisionon Supplier Selectionand Project BiddingOverseas ProjectRecti?cation
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During the reporting period, we conducted "one theme per quarter" walkthrough testing on integrity risk control, covering ?? topics such asoverseas project commissions and intermediary fees, labor employment, bidding management, and scrap material handling. A total of ??subsidiaries were included in the testing, with ??? issues identi?ed. We issued ?? recti?cation notices, required subsidiaries to implementcorrective actions, and facilitated the revision and improvement of ?? internal policies. These e?orts e?ectively promoted standardizedmanagement across subsidiaries.
During the reporting period, we carried out a series of integrity culture education initiatives, including:
We continue to advance the development of an integrity-driven culture, providing strong disciplinary support for high-qualitycorporate development. Our Disciplinary Committee has issued the "Implementation Measures for Integrity Education" andthe "Management Measures for Integrity Education and Promotion." By establishing branded programs for integrity educationand consistently conducting activities such as awareness campaigns, Party discipline learning sessions, cultural promotion,training seminars, and case-based warning education, we ensure full coverage of integrity education and have furtherembedded integrity awareness throughout the organization.
We have formulated and publicly released the "Supplier Code of Conduct", requiring all suppliers to uphold principles ofhonesty and integrity. Suppliers are strictly prohibited from engaging in any form of corruption, extortion, bribery, coercion,embezzlement, or other improper conduct involving undue bene?ts.To mitigate integrity risks in the supply chain, we continue to strengthen supplier management and ethics promotion. Basedon actual business needs, our subsidiaries conduct credit risk assessments on potential suppliers and require newly engagedsuppliers to sign integrity commitments or agreements. We clearly communicate expectations regarding ethical conduct andintegrity, and actively distribute materials such as the "Supplier Management Manual," "Supplier Code of Conduct" toreinforce our standards of business ethics.
Walkthrough Testing on Integrity Risk Control
Supplier Integrity Management
Integrity Culture Development Management
Distributed warning education materials to subsidiaries at key timepoints, and published ?? case-based warning examples and?? integrity-themed posters via the o?cial WeChat account "Clean XTC, " guiding all employees and managers to learn fromreal-life cases.Organized the writing of internal warning case re?ections and released short integrity-themed videos. By highlighting "peoplearound us" and "things around us, " we encouraged employees and managers to strengthen their integrity awareness.
A dedicated "Party Discipline Learning" section was launched on our "Clean XTC" WeChat account, and key content such as the"Regulations on Disciplinary Actions of the Communist Party of China" was distributed through various channels, includingWeChat groups and LED display screens, to help Party members and o?cials understand boundaries and uphold discipline.In collaboration with subsidiaries’ Party, labor union, and youth league organizations, we carried out themed activities such asreading sessions, educational site visits, and knowledge competitions. Examples include a youth forum and Party disciplinelearning reading class held by the XTC New Energy Disciplinary Committee, and the "Dialogue with Honesty, Act with Integrity"warning education event organized by the Chengdu Hongbo Disciplinary Committee. These e?orts ensured full coverage andparticipation in discipline learning activities.
Multi-platform outreach: Ten internal models of diligence and integrity were selected and featured on the "Clean XTC" WeChataccount. Six thematic posters on typical "pro?teering from the enterprise" cases such as—"Improper Interference? AbsolutelyNot!" and "Related-Party Transactions? Absolutely Not! "—were produced and widely disseminated to create a strong culture ofintegrity.Training and education activities: A total of ?? on-site educational sessions themed "Re?ecting on Integrity" were held, reaching?,??? participants. A bidding system guide was compiled and distributed, and ??? key personnel received targeted training.Engaging activities for integrity promotion: Hosted various themed activities such as knowledge quizzes, family letter writingcampaigns, and integrity-themed video contests to foster a culture that values and upholds integrity.Case-based warning education: Published "Integrity in Practice ? Warning Cases Vol. ?" and organized ?? case study sessions forkey personnel, with a total of ?,??? attendees.
We launched three dedicated sections on our "Clean XTC" WeChat account—"Integrity Rhythms," "Figures of Integrity," and"Letters of Integrity to Family"—to showcase employee- and family-created integrity-themed cultural works. These e?ortspromote the concept of "family-enterprise synergy empowered by integrity," extending integrity education beyond workinghours into employees’ personal lives.
Ongoing awareness and education campaigns
Party discipline learning and education
Featured brands for integrity education
Integrity Promotion Month themed "Empowering with Integrity, Advancing with Clarity"
We integrated the "Discipline Classroom" with our specialized procurement training programs to reinforce integrity awareness inprocurement practices. The platform also serves to enhance cross-functional coordination by focusing on topics such as the useof Party and union-related funds, providing guidance and support to subsidiaries.
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We strictly comply with the "Anti-Unfair Competition Law of the People'sRepublic of China," the "Anti-Monopoly Law of the People's Republic ofChina," and other applicable laws and regulations in both domestic andoverseas markets where we operate. We ?rmly oppose all forms of unfaircompetition. We have established the "Code of Business Conduct" thatsets out clear requirements and declarations regarding antitrust andanti-unfair competition practices. We advocate for free and faircompetition, strictly prohibit the use of improper means to obtaincompetitors' trade secrets, the fabrication or dissemination of falseinformation, and any form of fraudulent or illegal conduct that disruptsmarket order. We are committed to maintaining a healthy and orderlycompetitive environment. During the reporting period, we were notinvolved in any unfair competition practices and did not face anylitigation or major administrative penalties related to such conduct.
We strictly abide by China's tax laws and regulations, as well as theapplicable tax policies and regulations in all regions where we operate.We adhere to the principles of compliant operations, honest taxation,and transparent management, ful?ll our obligations as a taxpayer inaccordance with the law, and are committed to becoming a model ofintegrity in tax compliance, contributing to a fair and orderly taxenvironment. During the reporting period, we paid a total of ?,???.??million RMB in taxes and did not experience any tax-related violations.We identify, assess, and manage tax risks in a systematic manner byestablishing and maintaining a sound internal control system andadhering to internal control procedures. We take a proactive approach tothe prevention and management of tax-related risks. In our day-to-daytax management, we continuously monitor and follow updates andchanges in tax laws and policies. We also maintain communication andengagement with tax authorities both at our headquarters and in theregions where our subsidiaries operate. We regularly consult taxauthorities to obtain timely and accurate information on applicable taxpolicies and operational standards, thereby ensuring full tax compliance.We organize and participate in internal and external tax compliancetraining sessions on an ad-hoc basis to enhance the complianceawareness of tax personnel and improve their professional knowledgeand practical capabilities. In addition, we actively participate in researchactivities conducted by national and local tax authorities regarding taxpolicies that support technological innovation and the development ofthe manufacturing industry, the impact of tax policies on the company’s"going global" strategy, and the e?ects of global minimum corporate taxrules. We have contributed insights and recommendations in areasincluding tax policy optimization, implementation of tax incentives, andtax cost management, thereby contributing to improved tax governancewith practical insights.
◎ Tax Compliance
We value feedback from both internal and external stakeholders and encourage employees, customers, suppliers, localcommunities, and other stakeholder groups to continuously monitor our conduct and report any violations of laws,regulations, company rules, or business ethics. We also welcome suggestions and concerns from stakeholders regardingbusiness ethics, human rights protection, environmental responsibility, and occupational health and safety.
Mailing Address: ??st Floor, Tefang Portman Fortune Center Tower A, No. ?? Zhanhong Road, Siming District, Xiamen, Fujian Province, ChinaComplaint and Reporting Hotline: +??-???-???????Complaint and Reporting Email: XWJJ@CXTC.COM
◎ Anti-unfair Competition◎ Complaint Mechanism and
Whistleblower Protection Competition
We have established and continuously improved our complaint and reporting mechanisms, providing stakeholders withmultiple accessible channels. We adhere to the principles of fairness and impartiality, strictly following establishedprocedures for accepting, investigating, and handling complaints, and provide timely feedback to complainants on investiga-tion outcomes and corrective actions taken.Complainants may submit real-name or anonymous reports regarding any individuals or entities suspected of duty-relatedviolations, criminal misconduct, or non-compliant business or investment activities through the following channels:
In addition to the publicly disclosed channels mentioned above, we also provide employees with clear and direct reportingmechanisms through internal platforms such as the OA system and corporate WeChat, enabling them to submit complaintsand suggestions. Subsidiaries have likewise disclosed complaint channels via their o?cial websites and internal networks toreceive complaints and reports from stakeholders. In mining areas where we operate, signage displaying complaint andreporting contact information is clearly posted. We also conduct periodic visits and outreach to local residents to receive theirfeedback and complaints, ensuring timely responses to their concerns.In addition, to encourage and support stakeholders in reporting concerns to us, a whistleblower reward policy has beenestablished. Complainants whose reported issues are substantiated will be granted a monetary reward based on the extent ofdirect economic losses avoided. Business partners who proactively report or provide critical information may also be eligiblefor rewards, subject to case-speci?c evaluation.
Complaint Mechanism
We comply with relevant laws and regulations, as well as internal regulatory documents such as the "Guidelines for HandlingDisciplinary Inspection and Supervision Leads" and the "Code of Conduct for Disciplinary Inspection Personnel." In particular,we have formulated the "Whistleblower Protection and Reward Measures" to safeguard the legitimate rights and interests ofcomplainants.We have implemented the following key measures to protect complainants:
Whistleblower Protection
Anonymous reporting is allowed, andany attempt to obstruct or suppresslawful complaints and reports underany pretext is strictly prohibited.
| 1 | 2 |
Strict con?dentiality protocols areenforced, with rigorous managementof materials and personal informationobtained during the handling,registration, storage, and investigationof complaints.
Serious consequences are imposed forviolations, including the disclosure ofcomplaint-related information orretaliation against complainants.Individuals involved will be heldlegally accountable in accordance withapplicable laws and regulations.
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Appendix
Data OverviewGuidelines No. ?? of Shanghai Stock Exchange for Self-Regulation ofListed Companies-Sustainability Report (Trial) IndexSASB IndexIndicators Reference for ESG Reports ofListed Chinese Central State-Owned Enterprises IndexESRS IndexISDS IndexGRI IndexIndependent Limited Assurance Report
◎ Data Overview / Environmental
Scope ? ? Direct GHG emissions???,???.??
???,???.?????,???.???,???,???.??
???,???.?????,???.?????,???.???,???,???.??
??,???.?????,???.?????,???.??
/
????IndicatorUnit????????????????IndicatorUnit????????????
??,???.?? ???,???.?? ???,???.??
/
Emissions and Discharge
GHG Emissions
[?]
[?]Scope ? ? Indirect GHG emissionsfrom purchased energy(market-based)Scope ? ? Other indirect GHGemissionsEmission intensity
Total GHG emissions (Scope ?+Scope ?)
tCO
?e
Air PollutantsNOx emissionsSOx emissionsPM emissionsAmmonia emissionsCobalt and its compounds emissionsNickel and its compounds emissionsSulfuric acid mist emissionsVolatile organic compounds emissionsHydrogen chloride emissions
??.?? ?.?? ??.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.???.??
??.???.????.???.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.???.??
??.???.????.??////////
??.?? ?.?? ??.??////////
Ton
Wastewater and Wastewater Pollutants
Wastewater discharge volumeAmmonia nitrogen dischargeChemical oxygen demand dischargeTotal nitrogen dischargeTotal lead dischargeTotal arsenic dischargeTotal nickel dischargeTotal chromium dischargeTotal cadmium dischargeTotal cobalt dischargeTotal molybdenum dischargeTotal zinc dischargeTotal copper dischargeTotal manganese dischargeTotal phosphorus dischargeTotal iron discharge
?,???,???.????.?????.?? ??.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.???.??
?,???,???.????.?????.?? ??.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.?? ?.??
?,???,???.????.?????.??
/////////////
?,???,???.?? ??.?? ???.??/////////////
Ton
m?
General Waste
Industrial waste generatedIndustrial waste recycled
??,???.?? ??,???.?? ??,???.?? ??,???.??////Ton
Hazardous Waste
Transfer and disposal volume ofhazardous waste
?,???.?? ?,???.???,???.??/Ton
[ ? ] The amount of industrial waste generated by the company increased compared to ????, mainly due to the growth of the company'sbusiness during the reporting period.
[?]
tCO
?e /hundred-million RMB of
operatingrevenue
?,???.???,???.???,???.???,???.??
Non-methane totalhydrocarbon emissions
Manganese and its compoundsemissions
[ ? ] The total greenhouse gas emissions of the company increased compared to ????, mainly due to the growth of the company'sbusiness during the reporting period.[ ? ] The increase in Scope ? emissions in ???? is mainly due to adjustments in the Scope ? calculation boundaries and the inclusion ofadditional emission types. This change is primarily a result of improved reporting boundaries, rather than a signi?cant increase in actualemissions.The company’s scope ? greenhouse gas (GHG) emissions data is calculated based on widely accepted industry methodolo-gies. As scope ? emissions involve multiple external stakeholders in the value chain, some data is limited by the disclosure level ofsuppliers or third parties. Therefore, indirect estimations using industry average data, models, or reasonable assumptions are employed,which may introduce a degree of uncertainty in the calculation results. The company will continue to optimize data collection methodsand promote supply chain collaboration to enhance transparency.
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????IndicatorUnit????????????????IndicatorUnit????????????
Energy Consumption
Electricity consumption
Green power proportionSteam consumptionNatural gas consumptionCoal consumptionLique?ed gas consumptionGasoline consumptionDiesel consumptionEnergy intensity
?,???,???,???.??
???,???,???.?????,???,???.????,???,???.?????,???,???.????,???,???.??
??.?? ???,???.????,???,???.??
?,???.???.?????,???.???,???,???.??
???.??
?,???,???,???.?????,???,???.?????,???,???.???,???,???.????,???,???.????,???,???.????.?????,???.????,???,???.???,???.??
??.?????,???.???,???,???.??
???.??
?,???,???,???.??
???,???,???.??
////??.?????,???.????,???,???.???,???.????.?????,???.???,???,???.?????.??
?,???,???,???.??
////// ???,???.?? ?,???,???.??
?,???.??/???,???.???,???,???.?????.??
kWh
Water Resources
Water withdrawalWater consumptionWater use intensity
?,???,???.???,???,???.???,???.??
?,???,???.???,???,???.???,???.??
?,???,???.???,???,???.???,???.??
?,???,???.?? ?,???,???.?? ??,???.??m?m?/hundred-million RMB of operatingrevenue
Tailings Slag
Annual waste rock volumeAnnual tailings volumeTotal slag volumeTotal recycled slag volumeUsed tailings pond capacity
?,???,???.???,???,???.????,???,???.??
?,???,???.????,???,???.??
?,???,???.?? ?,???,???.?? ??,???,???.???,???,???.?? ??,???,???.??
/////
/////
Ton
[ ? ] The company's electricity consumption increased compared to ????, mainly due to the growth of the company's business duringthe reporting period.[ ? ] The company's diesel consumption increased compared to ????, mainly due to the growth of the company's business duringthe reporting period.
[ ? ] Other workers include labor dispatch personnel, rehired retirees, interns.
Resource Consumption
[?]
%Tonm?
tce/hundred-million RMBof operatingrevenue
Ton
Litre[?]
????IndicatorUnit????????????
Total number of employees ??,???
??,???
??? ??,?????,????????,???//??,???
//Person
◎ Data Overview / Employment
Total Employees
Under ??Between ??-??Over ??
?,??? ??,???
?,??? ?,??? ??,??? ?,????,?????,???
?,????,????,????,???Person
Employee Composition by Age
Employee CompositionEmployee Composition by Gender
MaleFemale
??,???
?,??? ??,??? ?,?????,???
?,??? ??,??? ?,???Person
[?]
Including: Green electricity consumptionIncluding: Nuclear power consumption
PhotovoltaicpowerconsumptionWind powerconsumptionHydropowerconsumption
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Including: Employees with signed labor contracts
Other workers
????IndicatorUnit????????????????IndicatorUnit????????????
Including: Senior managementIncluding: Female senior managementProportion of female senior management
??????
???.????.??
???
? ??? ???.????.??
???/???
????.??/
//??/??.??/%
Person
Management CompositionEmployee Composition by Nationality
ChinaBrazilGermanySouth KoreaJapanThailandGeorgiaMaltaVietnam
??,??? ?? ? ? ? ?? ? ? ?
??,???
?? ? ? ? ???///
/////////
/////////
Person
Employee Composition by EducationDoctorateMaster's degreeBachelor's degreeCollege degreeBelow college degrees
?? ??? ?,??? ?,??? ??,???
?? ??? ?,??? ?,??? ??,???
??????,????,????,???
??????,????,????,???Person
Production personnelSales personnelTechnical personnelFinancial personnelAdministrative personnelFemale production personnelFemale sales personnelFemale technical personnelFemale ?nancial personnelFemale administrative personnel
??,??? ??? ?,??? ??? ?,??? ?,??? ??? ??? ??? ???
??,??? ??? ?,??? ??? ?,??? ?,??? ??? ??? ??? ???
??,???????,???????,???/////
??,???????,???????,???/////
Person
Employee Composition by Function
Local Employment
??,???
??.?? ?,???
??.??
????.??????.??
??,???
??.?? ?,?????.?????.??????.??
////////
////////
Person%Person%Person%Person%
Employment of Disabled IndividualsNumber of employees with disabilitiesProportion of employees with disabilities
???.?? ???.?????.??//Person%
Signing of Labor ContractsLabor contract signing rate???.?????.??//%
Management team (mid-levelmanagement and above, includingsenior management)Female management (mid-levelmanagement and above, includingsenior management)Proportion of female management(mid-level management and above,including senior management)
Number of employees hired from thelocal provinceProportion of employees hired fromthe local provinceNumber of female employees hiredfrom the local provinceProportion of female employees hiredfrom the local provinceNumber of senior management hiredfrom the local provinceProportion of senior managementhired from the local provinceNumber of female senior manage-ment hired from the local provinceProportion of female senior manage-ment hired from the local province
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????IndicatorUnit????????????????IndicatorUnit????????????
[ ? ] Employee turnover statistics covers sta? with signed labor contracts
Employee Turnover
Number of new hires for the yearNumber of employee departures
Annual turnover rate
??,???
?,????,??? ?,??? ?,????,???
??
??????.??
??,????,????,??? ?,??? ?,??? ?,???
?? ? ?//??.??
////////////
////////////
Person
%
?,???.?????,??????,???
Employee TrainingAnnual investment in employee trainingTotal training hours
?,???.??///// / / /ParticipantHour
Annual work safety investment??,???.????,???.????,???.??/
Ten-thousand
RMB
◎ Data Overview / Occupational Health and Safety
Work Safety Investment
Work Safety Accident
Extra-major accidentMajor accidentSerious accidentNumber of work-related injury accidents
?????
?????
?????
???/Case
Work Safety Training and Emergency DrillsTotal work safety training hoursNumber of safety training sessionsNumber of safety emergency drills
??,??????,????,????,?????,???
??,??????,??? ?,?????? ??,???
??,??? ???,???/???/
??,??? ???,???
///
ParticipantHourTimesTimesParticipant
Occupational Health and Safety PerformanceNumber of work-related injuriesNumber of work-related fatalitiesWork-related fatality rateTotal Lost Worktime RateLost Time Incident Rate (LTIR)
????.???????.???.??
????.??///
????.??///
/??.??///
%Day//
[?]
Person
Number of employees at thebeginning of the year
Including:
Number of Germanemployee departuresNumber of Japaneseemployee departuresNumber of Brazilianemployee departuresNumber of Uruguayanemployee departures
Including:
Ten-thousandRMBTotal number of employeetraining participants
Total number of work safetytraining participants
Number of participants in safetyemergency drills
Total hours lost due towork-related injuries
Number of maleemployee departuresNumber of Chineseemployee departuresNumber of Thaiemployee departures
Number of femaleemployee departures
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????IndicatorUnit????????????????IndicatorUnit????????????
????IndicatorUnit????????????
Volunteer Service
Total number of volunteer participantsTotal volunteer hours
????,???. ?? ?,??? ?,???????,??? ????,???ParticipantHour
National Strategy ResponseGreen and low-carbon industry transitionRural revitalization
???.?????.???,???.?????.??
/???.???,???.??
???.??
////
////Ten-thousand
RMB
Social Donations
Total amount of social donations???.?????.?????.?????.??
Ten-thousandRMB
◎ Data Overview / Market◎ Data Overview / Social Contributions
R&D Investment and PersonnelAnnual R&D investmentNumber of R&D personnelProportion of R&D personnel
???,???.??
///
???,???.???.???,?????.??
???,???.??
///
???,???.??
///%Person%
Non-a?liated Suppliers (By Region)
Number of non-a?liated suppliersin Mainland ChinaNumber of non-a?liated suppliersin other regions
?,???
????,????,???
????,????,??????
?,????,???
????,???Count
R&D investment as a percentage ofrevenue from core business
Intellectual Property
Number of new patent applicationsNumber of new patents grantedNumber of new copyright registrationsNumber of new trademark applicationsNumber of new trademark registrations
Number of intellectual property disputes
??????
???????,???
??????
?
??????
?????
/
/
/
/
??? ???///////
??????///////
Item
CaseInformation Security and Customer Privacy BreachesInformation security incidentsCustomer privacy breaches
??//////
Case
◎ Data Overview / Governance
Violations of Business Ethics
Number of con?ict of interest incidents?
??
///
///
///Case
Ten-thousand
RMB
Number of patents held as ofthe end of ????Number of copyrights held as ofthe end of ????Number of trademarks held as ofthe end of ????
Total number of non-a?liated suppliers
The Belt and Road Initiativeand overseas responsibilityIndustry-speci?c and othersocial responsibilities
Number of incidents involvinglitigation or signi?cant administra-tive penalties due to unfaircompetition practicesNumber of money laundering orinsider trading incidents
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◎ SASB Index
EM-MM-???a.?Total weight of non-mineral waste generated
Waste DisposalData OverviewEM-MM-???a.?：
Total weight of tailings produced
Waste DisposalData OverviewEM-MM-???a.?：
Total weight of waste rock generated
Waste DisposalData OverviewEM-MM-???a.?：
Total weight of hazardous waste generated
Waste DisposalData Overview
Ecosystem andBiodiversity ProtectionNot coveredin this reportNot coveredin this report
EM-MM-???a.?：
Total weight of hazardous waste recycled
Waste DisposalCircular Economy
Data OverviewEM-MM-???a.?：
Number of signi?cant incidents associated with hazardous materials andwaste management
Waste DisposalEM-MM-???a.??：
Description of waste and hazardous materials management policies andprocedures for active and inactive operationsEM-MM-???a.?：
Description of environmental management policies and practices for active sitesEM-MM-???a.?：
Percentage of mine sites where acid rock drainage is: (?) predicted to occur,(?) actively mitigated, and (?) under treatment or remediationEM-MM-???a.?：
Percentage of (?) proved and (?) probable reserves in or near sites withprotected conservation status or endangered species habitat
Waste Disposal
LocationSASB TopicsAccounting Metrics
EM-MM-???a.?：
Gross global Scope ? emissions, percentage covered under emissions-limitingregulationsGreenhouseGas EmissionsAir QualityEnergyManagementWaterManagement
Waste & HazardousMaterialsManagement
Biodiversity Impacts
GHG Emissions
Management
Data OverviewEM-MM-110a.2：
Discussion of long-term and short-term strategy or plan to manage Scope 1emissions,emissions reduction targets, and an analysis of performance againstthose targets
Climate Strategy
EM-MM-???a.?：
(?) Total energy consumed, (?) percentage grid electricity and (?) percentagerenewable
EM-MM-???a.?：
Number of incidents of non-compliance associated with water qualitypermits,standards and regulations
EM-MM-???a.?：
(?) Total water withdrawn, (?) total water consumed; percentage of each inregions with High or Extremely High Baseline Water Stress
Climate Strategy
Energy Usage
Data Overview
EM-MM-???a.?：
Air emissions of the following pollutants: (?) CO, (?) NOX (excluding N,O), (?) SOX,(?) particulate matter (PM??), (?) mercury (Hg), (?) lead (Pb), and (?) volatileorganic compounds (VOCS)
Waste Gas Emissions
Management
Data Overview
Usage ofWater Resources
Data Overview
Usage ofWater Resources
◎ Guidelines No. ?? of Shanghai Stock Exchange for Self-Regulation ofListed Companies-Sustainability Report (Trial) Index
Climate change tackling
Pollutant dischargeWaste disposalEcosystem and biodiversity protectionEnvironmental compliance management
Energy usageUsage of water resources
Circular economy
Climate ResponsePollutant Discharge
Waste DisposalEcosystem and Biodiversity ProtectionEnvironmental Compliance Management
Energy UsageUsage of Water ResourcesCircular EconomyRural revitalizationContributions to the societyInnovation-drivenEthics of science and technologySupply chain security
Employees
Industrial Support for Rural RevitalizationCommunity Engagement for Shared ProsperityInnovation-driven Development
Not Applicable
Safety and Quality of Products and ServicesData Security and Customer Privacy Protection
Employees
Communications with stakeholdersAnti-commercial bribery and anti-corruption
Anti-unfair competition
Communications with StakeholdersAnti-Commercial Bribery and Anti-Corruption
Anti-unfair Competition
Article ??-??
Article ??Article ??Article ??Article ??Article ??Article ??Article ??Article ??Article ??Article ??Article ??Article ??Article ??Article ??Article ??Article ??
Article ??Article ??Article ??
Chapter III Environmental Disclosure
Chapter IV Social Disclosure
Chapter V Corporate Governance Information Related to Sustainable Development Disclosure
Due diligenceArticle ??
LocationTopicsArticles
Equal treatment to small andmedium-sized enterprises
Safety and quality ofproducts and servicesData security and customer
privacy protection
Supply Chain Security and Resilience
Responsible Mineral Management
Equal Treatment to Small andMedium-sized Enterprises
Assessment and Management of Material Matters
Climate-Related Risks, Opportunities, and
Financial ImpactsSupply Chain Security and Resilience
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EM-MM-???b.?：
Number and duration of non-technical delays
Not applicableEM-MM-???a.?：
Percentage of active workforce covered under collective bargaining agreements,broken down by U.S.and foreign employees
Equal Employment
Data OverviewEM-MM-???a.?：
Number and duration of strikes and lockouts.
Not covered
in this reportEM-MM-???：
(?)MSHA all-incidence rate, (?) fatality rate (?) near miss frequency rate (NMFR)and (?) average hours of health, safety, and emergency response training for(a) full-time employees and (b) contract employees
Data OverviewEM-MM-???a.?：
Description of the management system for prevention of corruptionand bribery throughout the value chain
Anti-CommercialBribery and
Anti-CorruptionEM-MM-???a.?：
Production in countries that have the ??lowest rankings in TransparencyInternational's Corruption Perception index
EM-MM-???a.?：
Summary of tailings management systems and governance structure used tomonitor and maintain the stability of tailings storage facilities
Not coveredin this report
EM-MM-???a.?：
Percentage of (?) proved and (?) probable reserves in or near areas of con?ictSecurity, Human Rights& Rights ofindigenous Peoples
Community Relations
Labour Relations
WorkforceHealth & Safety
Business Ethics& Transparency
Tailings StorageFacilities Management
Not applicableEM-MM-???a.?：
Percentage of (?) proved and (?) probable reserves in or near indigenous land
Not applicable
EM-MM-???b.?：
Discussion of process to manage risks and opportunities associated withcommunity rights and interests
CommunityEngagementfor Shared Prosperity
EM-MM-???a.?：
Discussion of engagement processes and due diligence practices with respect tohuman rights, indigenous rights, and operation in areas of con?ict
CommunityEngagementfor Shared ProsperityResponsible MineralManagement
EnvironmentalCompliance
Management
Tailings PondSafety Management
Tailings PondSafety Management
EM-MM-???a.?：
Tailings storage facility inventory table: (?)facility name, (?) location,(?) owner ship status, (?) operational status, (?) construction method,(?) maximum permitted storage capacity, (?) current amount of tailings stored,(?) consequence classi?cation,(?) date of most recent independent technical review,(??) material ?ndings, (??) mitigation measures (??) site-speci?c EPRP
◎ Indicators Reference for ESG Reports ofListed Chinese Central State-Owned Enterprises IndexEnvironmental
LocationSASB TopicsAccounting MetricsLocationPrimaryIndicators
TertiaryIndicatorsSecondaryIndicators
E.?.?.? Fresh-water consumptionE.?.?.? Circulating water usage
E.?.?.? Material consumption intensity
Data Overview
E.?.?.? The total energy consumptionE.?.?.? The energy consumption intensity
E.?.?Water Resource
E.?.?Materials
E.?.?Energy
E.?.?Packagingmaterials
E.?ResourceConsumption
???? Economic, Environmental and Social Impact
Data Overview
E.?.?Wastewater
E.?.?Exhaust Air
E.?.?Solid waste
E.?Pollutionprevention
andcontrol
Usage of Water ResourcesData OverviewUsage of Water ResourcesData Overview
Energy UsageData Overview
Energy UsageData OverviewClimate StrategyEnergy UsageClimate StrategyEnergy UsageData OverviewE.?.?.? Non-fossil energy consumption
???? Economic, Environmental and Social Impact
Data OverviewCircular EconomyWastewater Discharge ManagementWastewater Discharge Management
Data OverviewWastewater Discharge ManagementWastewater Discharge ManagementWastewater Discharge Management
Waste Disposal
Waste Disposal
Waste Disposal
Data OverviewNot covered in this reportNot covered in this report
E.?.?.? The proportion of circulatingwater usageE.?.?.? Water resource consumptionintensity
E.?.?.? Fossil energy consumption
E.?.?.? Consumption of non-renewablematerialsE.?.?.? Consumption of toxic andhazardous materials
E.?.?.? The proportion of non-fossilenergy consumption
E.?.?.? The amount of packagingmaterials usedE.?.?.? Light-weighting and reductionof packaging materialsE.?.?.? The compliance status ofwastewater dischargeE.?.?.? Wastewater management andemission reduction measuresE.?.?.? Volume of pollutants dischargedin wastewaterE.?.?.? Concentration of pollutantsdischarged in wastewaterE.?.?.? Compliance status of exhaustgas emissionsE.?.?.? Volume of air pollutants emittedE.?.?.? Compliance with legal regulationson solid waste disposalE.?.?.? Concentration of air pollutantsemittedE.?.?.? Management of generaindustrial solid wasteE.?.?.? Disposal volume of generalindustrial solid wasteE.?.?.? Management of hazardous wasteE.?.?.? Volume of hazardous wastedisposed
E.?.?.? Volume of wastewater discharge
Wastewater Discharge Management
Data Overview
Wastewater Discharge Management
Data Overview
Waste Disposal
Data Overview
Waste Disposal
Data Overview
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
E.?.?.? Sources and types of GHG emissionsE.?.?.? Scope ? emissionE.?.?.? Scope ? emissionE.?.?.? Scope ? emissionE.?.?.? GHG emission intensityE.?.?.? GHG emission reduction
Climate StrategyClimate StrategyNot covered in this report
E.?.?GHG emissions
E.?.?Emissionreductionmanagement
E.?.?Environmentalrights trading
E.?.?Climate riskmanagement
E.?Climatechange
???? Economic, Environmental and Social Impact
Data Overview
E.?.?.? Participation in the energy rights,water rights, and pollution rightstrading marketsE.?.?.? Participation in the carbonemissions trading marketE.?.?.? Participation in green electricitytradingE.?.?.? Climate risk management
E.?.?.? GHG Emissions ManagementManagement of greenhouse gas emissions
E.?.?.? Management of GHG emissionreduction
E.?.?.? Environmental violations
Environmental Compliance Management
Climate StrategyClimate StrategyEnvironmental Compliance ManagementEnvironmental Compliance Management
E.?.?Green Low-CarbonCerti?cationE.?.?Legal compliancein environmentalmatters
S?.?.? Employee structureS?.?.? Avoiding child labor and forced laborS?.?.? Compensation philosophy and policyS?.?.? Working hours and rest and leaveS?.?.? Compensation and bene?ts securityS?.?.? Employee democratic managementS?.?.? Employee safety risk preventionS?.?.? Employee care and assistanceS?.?.? Employee education and trainingS?.?.? Employee satisfaction surveyS?.?.? Labor disputesS?.?.? Employee turnover situation
Human Rights ProtectionEmployee Compensation and Bene?tsEmployee Compensation and Bene?tsEmployee CommunicationOccupational Health and SafetyOccupational Health and Safety Risk Management
Occupational Health
Employee Development
Employee Development
Employee Development
Employee Communication
Employee CommunicationData Overview
S?.?Employeerecruitmentand employment
S?.?Employeecompensationand bene?ts
S?.?Employee healthand safety
S?.?Employeedevelopmentand training
S?Employee rights
S?.?Employeesatisfaction
Social
E.?Biodiversity
E.?.?Impact of production,services, and productson biodiversity
E.?.?.? Impacts of production, services,and products on biodiversity
Ecosystem and Biodiversity Protection
E.? Measures forresource andenvironmentalmanagementsystems
E.?.?.? Water resource managementE.?.?.? Material use managementE.?.?Resourcemanagementmeasures
E.?.?Setting Low-CarbonDevelopmentGoalsand StrategicMeasures
E.?.?
Greenenvironmentalactions andmeasures
E.?.? Energy-saving and carbonreduction monitoring, statistical reporting,and assessment system
E.?.?.? Setting low-carbon developmentgoals and strategic measures
E.?.?.? Energy use and energy e?ciencymanagement
E.?.?.? Green technology upgradingand recycling
E.?.?.? Green procurement and greensupply chain managementE.?.?.? Environmental conservationpublic activities
E.?.?Energy-saving andcarbon reductionmonitoring, statisticalreporting, andassessment system
E.?.?.? Clean productionE.?.?.? Green building renovationE.?.?.? Green o?ce and operations
Usage of Water ResourcesEnergy Usage
Pollutant Discharge
Energy Usage
Not covered in this report
Climate Strategy
Energy Usage
Climate StrategyCircular Economy
Energy UsageUsage of Water Resources
Climate StrategySuppliers and Clients
Climate Strategy
Circular Economy
Usage of Water Resources
Pollutant DischargeClimate-Related Risks, Opportunities,
and Financial Impacts
Climate Strategy
GHG Emissions ManagementGHG Emissions ManagementGHG Emissions Management
Data OverviewGHG Emissions Management
Data OverviewGHG Emissions Management
Data Overview
Equal Employment
Data Overview
Employee Compensation and Bene?ts
Occupational Health and Safety
Occupational Health and Safety
Incident Management
Equal EmploymentHuman Rights ProtectionEmployee DevelopmentS?.?.? Corporate recruitment policyand implementation
S?.?.? Employee occupational healthand safety managementS?.?.? Response to safety incidents andwork-related injuriesS?.?.? Employee motivation andpromotion policyS?.?.? Employee career planning andjob change support
E.?GreenLow-CarbonCerti?cation
LocationPrimaryIndicators
TertiaryIndicatorsSecondaryIndicators
LocationPrimaryIndicators
TertiaryIndicatorsSecondaryIndicators
LocationPrimaryIndicators
TertiaryIndicatorsSecondaryIndicators
E.?.?.? Environmental ManagementSystem Certi?cationE.?.?.? Green and Low-Carbon EnterpriseCerti?cationE.?.?.? Green and Low-Carbon Productand Service Certi?cationE.?.?.? Emergency Response Plan forEnvironmental Incidents
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
Governance
S?Product and
servicemanagement
S?.?Product safetyand quality
S?.?Customer service
and rights
S?.?Innovationdevelopment
S?.?upplierManagement
S?.?Supply ChainManagementS?Supply ChainSafety andManagement
S?Socialcontribution
S?.?Tax payment
situation
S?.?Communityco-building
S?.?Social welfareactivities
S?.?National strategyresponse
Safety and Quality of Products and ServicesSafety and Quality of Products and ServicesSafety and Quality of Products and ServicesSafety and Quality of Products and ServicesSafety and Quality of Products and ServicesData Security and Customer Privacy Protection
R&D and Innovation System
Intellectual Property ProtectionSupply Chain Security and Resilience
Data Overview
Rural Revitalization and Social ContributionsRural Revitalization and Social ContributionsRural Revitalization and Social Contributions
Carbon Reduction ActionsRural Revitalization and Social ContributionsPromoting Industry DevelopmentRural Revitalization and Social Contributions
???? Economic, Environmental and Social Impact
Tax Compliance
R&D and Innovation Achievements
Data OverviewR&D and Innovation Achievements
Data Overview
Supply Chain Security and ResilienceResponsible Mineral ManagementSupply Chain Security and ResilienceResponsible Mineral ManagementSupply Chain Security and ResilienceResponsible Mineral Management
Rural Revitalization and Social Contributions
Data OverviewRural Revitalization and Social Contributions
Data Overview
G?.?.? Governance strategy formulation
G?.?.? Party-building leadershipG?.?.? Ownership responsibilities
Governance Structure and MechanismsGovernance Structure and Mechanisms
Party BuildingG?.?Governancestrategyand processes
G?.?Organizationalcomposition andfunctions
G?.?Compensationmanagement
G?Governancestrategy andorganizationalstructure
G?Standardizedgovernance
Governance Structure and Mechanisms
Energy UsageOccupational Health and Safety
G?.?.? Board of directors,supervisoryboard, and managementorganizational structure and functions
G?.?.? Governance strategysupervision processG?.?.? Governance strategyapproval and review process
G?.?.? Compensation plan fordirectors and supervisorsG?.?.? Transparency of the board'scompensation
G?.?.? Appointment procedures andcomposition of the board of directors,supervisory board, and management
Anti-Commercial Bribery and Anti-CorruptionComplaint Mechanism and Whistleblower ProtectionAnti-Commercial Bribery and Anti-CorruptionComplaint Mechanism and Whistleblower Protection
G?.?Internal controlG?.?IntegrityconstructionG?.?Fair competition
G?.?.? Regular supervision, audit, andevaluation of all disclosed information
G?.?Quality of informationdisclosure
G?.?Informationdisclosure systemG?Informationdisclosuretransparency
G?Investorrelationsmanagementandshareholderrights
G?.?Investor relationsmanagement
G?.?Shareholder rights
G?.?Creditor rights
Governance Structure and MechanismsShareholder Rights Protection
Governance Structure and Mechanisms
Risk Management
Shareholder Rights ProtectionCommunications with Stakeholders
Internal Control and Compliance
Internal Control and ComplianceAnti-Commercial Bribery and Anti-Corruption
Anti-unfair Competition
Investor Relations Management
Investor Relations Management
Investor Relations ManagementShareholder Rights ProtectionShareholder Rights ProtectionNot covered in this reportNot covered in this reportShareholder Rights ProtectionShareholder Rights Protection
G?.?.? Internal auditG?.?.? Reasonableness of managementcompensationG?.?.? Internal control structure,mechanisms, and processesG?.?.? Integrity construction systemstandardsG?.?.? E?ectiveness of integrityconstruction measuresG?.?.? E?ectiveness of fair competitionmeasuresG?.?.? Investor relations managementstrategyG?.?.? Construction of investorrelations management departmentG?.?.? Shareholder (general) meetingsituationG?.?.? Shareholder's right to knowand participate in decision-makingG?.?.? Shareholder communicationsituation
G?.?.? Investor communication
G?.?.? Credit situationG?.?.? Bond market performance situationG?.?.? Financial information disclosureG?.?.? Non-?nancial information disclosure
G?.?.? Fair competition system standards
LocationPrimaryIndicators
TertiaryIndicatorsSecondaryIndicators
LocationPrimaryIndicators
TertiaryIndicatorsSecondaryIndicators
S?.?.? Quality managementS?.?.? Product recall and withdrawalS?.?.? Customer satisfactionS?.?.? Customer complaints and handling
S?.?.? R&D investmentS?.?.? Innovation achievementsS?.?.? Intellectual property protectionS?.?.? Supplier selection and managementS?.?.? Number and distribution of suppliers
S?.?.? Major risks and impacts (supply chain)S?.?.? Tax payment situation
S?.?.? Industrial transformation
We did not collect relent data duringthis reporting period
S?.?.? Production standard managementpolicies and measures
S?.?.? Negative incidents related toproducts or services
S?.?.? Customer information andprivacy protectionS?.?.? R&D and innovationmanagement system
S?.?.? Supply chain managementpolicies and measuresS?.?.? Supply chain security assuranceand emergency plan
S?.?.? Policies and measures for partici-pating in local community constructionS?.?.? Policies and measures forparticipating in social welfare activitiesS?.?.? Investment and e?ectiveness inparticipating in social welfare activitiesS?.?.? Construction of an accessibleenvironmentS?.?.? Rural revitalization and regionalcollaborative developmentS?.?.? Belt and Road initiative andoverseas responsibility ful?llmentS?.?.? Industry characteristics and othersocial responsibility ful?llment situations
S?.?.? Contribution and impact on thelocal community
Governance Structure and MechanismsGovernance Structure and MechanismsGovernance Structure and MechanismsGovernance Structure and Mechanisms
We have already disclose in our ???? annual report
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
◎ ESRS Index
BP-?BP-?GOV-?
GOV-?GOV-?
About This ReportGeneral basis for the preparation of sustainability statementsDisclosures in relation to speci?c circumstancesThe role of the administrative, management and supervisory bodies
Statement on due diligence
ESRS ? General Disclosures
Location/omissionEuropean sustainability reporting standards (ESRS)
Location/omissionEuropean sustainability reporting standards (ESRS)
Governance Structure and Mechanisms
Risk ManagementGovernance Structure and Mechanisms
Energy UsageOccupational Health and SafetyAssessment and Management of Material MattersClimate-Related Risks, Opportunities, and Financial Impacts
Supply Chain Security and Resilience
Risk ManagementInternal Control and ComplianceClimate-Related Risks, Opportunities, and Financial Impacts
About XTC
Climate StrategySupply Chain Security and ResilienceSafety and Quality of Products and ServicesCommunications with StakeholdersAssessment and Management of Material Matters
Risk ManagementClimate-Related Risks, Opportunities, and Financial ImpactsAssessment and Management of Material Matters
Risk ManagementAssessment and Management of Material Matters
Appendix
Integration of sustainability-related performancein incentive schemesGOV-?
Interests and views of stakeholdersStrategy, business model and value chainSBM-?SBM-?
SBM-?
Disclosure requirements in ESRS covered bythe undertaking’s sustainability statementIRO-?
Governance Structure and MechanismsNot covered in this report
Description of the processes to identify and assess material impacts,risks and opportunitiesMaterial impacts, risks and opportunities and their interactionwith strategy and business modelIRO-?
Information provided to and sustainability matters addressed bythe undertaking’s administrative, management and supervisory bodiesGOV-?
G?Compliantoperation
and riskmanagementG?.?.? Risk identi?cation and early warningG?.?.? Risk control and tracking
Risk ManagementRisk Management
G?.?Compliantoperation
G?.?Risk management
Risk ManagementInternal Control and ComplianceAnti-Commercial Bribery and Anti-Corruption
Risk ManagementInternal Control and ComplianceAnti-Commercial Bribery and Anti-Corruption
Risk ManagementInternal Control and ComplianceAnti-Commercial Bribery and Anti-Corruption
Risk ManagementAnti-Commercial Bribery and Anti-Corruption
Anti-unfair CompetitionData Overview
G?.?.? Compliant operation systemG?.?.? Construction status of thecompliance systemG?.?.? Speci?c process ofcompliance review
G?.?.? Risk reporting and management
E?-?E?-?E?-?E?-?E?-?E?-?E?-?E?-?E?-?
Climate StrategyClimate StrategyClimate StrategyClimate Strategy
Not covered in this reportNot covered in this report
Transition plan for climate change mitigationPolicies related to climate change mitigation and adaptationActions and resources in relation to climate change policiesTargets related to climate change mitigation and adaptationEnergy consumption and mixGross Scopes ?, ?, ? and Total GHG emissionsInternal carbon pricing
ESRS E? Climate Change
GHG Emissions ManagementData Overview
Climate-Related Risks, Opportunities, and Financial ImpactsAssessment and Management of Material Matters
E?-?E?-?E?-?E?-?E?-?
Usage of Water ResourcesUsage of Water ResourcesEnvironmentalData Overview
Policies related to water and marine resourcesActions and resources related to water and marine resourcesTargets related to water and marine resourcesWater consumption
ESRS E? Water and Marine Resources
Climate-Related Risks, Opportunities, and Financial ImpactsAssessment and Management of Material Matters
E?-?E?-?E?-?
Policies related to pollutionActions and resources related to pollutionTargets related to pollution
Substances of concern and substances of very high concern
ESRS E? Pollution
Climate-Related Risks, Opportunities, and Financial ImpactsAssessment and Management of Material MattersAnticipated ?nancial e?ects frompollution-related impacts, risks and opportunities
Anticipated ?nancial e?ects from water andmarine resources-related impacts, risks and opportunities
Pollutant DischargeWaste Disposal
Pollutant DischargeWaste Disposal
Pollutant DischargeWaste DisposalEnvironmental
E?-?E?-?
Pollutant DischargeWaste DisposalEcosystem and Biodiversity ProtectionPollution of air, water and soilE?-?
Energy UsageData Overview
LocationPrimaryIndicators
TertiaryIndicatorsSecondaryIndicators
Risk management and internal controlsover sustainability reporting
Anticipated ?nancial e?ects from material physical andtransition risks and potential climate-related opportunities
GHG removals and GHG mitigation projects?nanced through carbon credits
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
E?-?E?-?E?-?
Policies related to resource use and circular economyActions and resources related to resource use and circular economyTargets related to resource use and circular economy
ESRS E? Resource use and circular economy
S?-?S?-?S?-?S?-?S?-?S?-?S?-?S?-?S?-?S?-??S?-??S?-??S?-??S?-??S?-??S?-??S?-??
Characteristics of the undertaking’s employeesCharacteristics of non-employees in the undertaking’s own workforceCollective bargaining coverage and social dialogueDiversity metricsAdequate WagesSocial protectionPersons with disabilitiesTraining and skills development metricsHealth and safety metricsWork-life balance metricsRemuneration metrics (pay gap and total remuneration)Incidents, complaints and severe human rights impacts
Policies related to own workforceProcesses for engaging with own workforce and workers’ representatives about impactsProcesses to remediate negative impacts and channels for own workforce to raise concernsTargets related to managing material negative impacts,advancing positive impacts, and managing material risks and opportunities
ESRS S? Own workforce
Taking action on material impacts on own workforce, and approaches to managing materialrisks and pursuing material opportunities related to own workforce, and e?ectiveness of those actions
S?-?S?-?S?-?
Policies related to value chain workersProcesses for engaging with value chain workers about impacts
ESRS S? Workers in the value chain
Supply Chain Security and ResilienceResponsible Mineral ManagementSupply Chain Security and Resilience
Responsible Mineral ManagementSupply Chain Security and ResilienceResponsible Mineral ManagementSupply Chain Security and ResilienceResponsible Mineral Management
Safety and Quality of Products and ServicesData Security and Customer Privacy ProtectionSafety and Quality of Products and ServicesSafety and Quality of Products and ServicesSafety and Quality of Products and ServicesData Security and Customer Privacy Protection
Supply Chain Security and Resilience EqualTreatment to Small and Medium-sized EnterprisesAnti-Commercial Bribery and Anti-CorruptionComplaint Mechanism and Whistleblower ProtectionAnti-Commercial Bribery and Anti-Corruption
Data Overview
Social
Social
Social
Taking action on material impacts on value chain workers, andapproaches to managing material risks and pursuing materialopportunitiesrelated to value chain workers, and e?ectiveness of those actionProcesses to remediate negative impacts and channelsfor value chain workers to raise concernsTargets related to managing material negative impacts,advancing positive impacts, and managing material risks and opportunitiesS?-?S?-?S?-?
Community Engagement
for Shared ProsperityCommunity Engagementfor Shared ProsperityCommunity Engagementfor Shared ProsperityPolicies related to a?ected communitiesProcesses for engaging with a?ected communities about impacts
ESRS S? A?ected communities
Taking action on material impacts on a?ected communities, and approaches to managing material risks and pursuing materialopportunities related to a?ected communities, and e?ectiveness of those actionsProcesses to remediate negative impactsand channels for a?ected communities to raise concerns
Processes to remediate negative impacts and channelsfor consumers and end-users to raise concernsTargets related to managing material negative impacts,advancing positive impacts, and managing material risks and opportunities
Targets related to managing material negative impacts,advancing positive impacts, and managing material risks and opportunities
G?-?G?-?G?-?G?-?G?-?G?-?
Commercial Behaviors
Not covered in this report
Business conduct policies and corporate cultureManagement of relationships with suppliersPrevention and detection of corruption and briberyIncidents of corruption or briberyPolitical in?uence and lobbying activitiesPayment practices
ESRS G? Business Conduct
S?-?S?-?S?-?
Policies related to consumers and end-usersProcesses for engaging with consumers and end-users about impacts
ESRS S? Consumers and end-users
Taking action on material impacts on consumers and end-users, andapproachesto managing material risks and pursuing materialopportunitiesrelated to consumers and end-users, and e?ectiveness of those actions
E?-?E?-?E?-?E?-?E?-?
Ecosystem and Biodiversity ProtectionEcosystem and Biodiversity ProtectionEcosystem and Biodiversity Protection
EnvironmentalEcosystem and Biodiversity Protection
Policies related to biodiversity and ecosystemsActions and resources related to biodiversity and ecosystemsTargets related to biodiversity and ecosystemsImpact metrics related to biodiversity and ecosystems change
ESRS E? Biodiversity and ecosystems
Climate-Related Risks, Opportunities,and Financial Impacts Assessmentand Management of Material Matters
Anticipated ?nancial e?ects from resource use andcircular economy-related impacts, risks and opportunitiesE?-?
Resource out?owsResource in?owsE?-?E?-?
Location/omissionEuropean sustainability reporting standards (ESRS)Location/omissionEuropean sustainability reporting standards (ESRS)
Anticipated ?nancial e?ects from biodiversity andecosystem-related risks and opportunities
Transition plan and consideration of biodiversity andecosystems in strategy and business modelE?-?
Climate-Related Risks, Opportunities,and Financial Impacts Assessmentand Management of Material Matters
Circular EconomyCircular Economy
Environmental
Employee Compensation and Bene?tsEmployee Compensation and Bene?ts
Data Overview
Employee Compensation and Bene?tsNot covered in this report
Data Overview
EmployeesEmployee Communication
Energy UsageUsage of Water ResourcesCircular EconomyPollutant DischargeWaste DisposalCircular Economy
Employee CommunicationHuman Rights Protection
Equal Employment
Data OverviewEqual Employment
Data Overview
Employee Development
Data OverviewOccupational Health and Safety
Data Overview
Employees
Social
Data OverviewEmployee Communication
S?-?S?-?
S?-?S?-?
Community Engagement
for Shared Prosperity
S?-?S?-?
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
Equal Treatment to Smalland Medium-sized Enterprises
◎ ISDS IndexIFRS S?
The current and anticipated e?ects of sustainability-related risksand opportunities on the entity’s business model and value chain,and where in the entity’s business model and value chainsustainability-related risks and opportunities are concentrated.b)Assessment and Management
of Material MattersClimate-Related Risks, Opportunities,and Financial ImpactsAssessment and Management
of Material MattersClimate-Related Risks, Opportunities,
and Financial ImpactsAssessment and Management
of Material MattersClimate-Related Risks, Opportunities,
and Financial ImpactsAssessment and Management
of Material MattersClimate-Related Risks, Opportunities,
and Financial Impacts
Assessment and Management
of Material MattersClimate-Related Risks, Opportunities,and Financial Impacts
The quantitative and qualitative e?ects of sustainability-related risks andopportunities on the entity’s ?nancial position, ?nancial performance andcash ?ows for the reporting period, and the sustainability-related risks andopportunities identi?ed for which there is a signi?cant risk of a materialadjustment within the next annual reporting period to the carrying amountsof assets and liabilities reported in the related ?nancial statements, and howthe entity expects its ?nancial position, ?nancial performance and cash ?owsto change over the short, medium and long term, given its strategy tomanage sustainability-related risks and opportunities.
d)
How the entity has responded to, and plans to respond to, sustain-ability-related risks and opportunities in its strategy anddecision-making, and the progress against plans the entity hasdisclosed in previous reporting periods, including quantitative andqualitative information, and trade-o?s between sustainability-relatedrisks and opportunities that the entity considered.c)
The resilience of the entity’s strategy and its business model to thosesustainability-related risks.
e)
The governance body(s) (which can include aboard, committee orequivalent body charged with governance) or individual(s) responsi-ble for oversight of sustainability-related risks and opportunities.a)
Management’s role in the governance processes, controls andprocedures used to monitor, manage and oversee sustainability-re-lated risks and opportunities.b)
Governance Structure and Mechanisms
Risk ManagementGovernance Structure and Mechanisms
Risk Management
Metrics required by an applicable IFRS Sustainability Disclosure Standard.a)
Metrics the entity uses to measure and monitor sustainability-related
risks or opportunities and its performance in relation to that
sustainability-related risk or opportunity.b)
GHG Emissions ManagementData Overview
Any targets the entity has set it is required to meet by law or regulation.c)
EnvironmentalSocialGovernance
???? Economic, Environmentaland Social ImpactGHG Emissions ManagementData Overview
The sustainability-related risks and opportunities that could
reasonably be expected to a?ect the entity’s prospects within the
time horizons—short, medium or long term.a)
Assessment and Management
of Material MattersClimate-Related Risks, Opportunities,and Financial Impacts
Disclosure
PlacementCoreElements
DisclosureRecommendations
The processes and related policies the entity uses to identify, assess,prioritize and monitor sustainability-related risks, including informationabout: the inputs and parameters the entity uses，whether and how theentity uses scenario analysis to inform its identi?cation of sustainabili-ty-related risks, whether and how the entity prioritizes sustainability-re-lated risks, how the entity assesses the nature, likelihood andmagnitude of the e?ects of those risks.
a)
The processes the entity uses to identify, assess, prioritize and monitorsustainability-related opportunities, including: whether and how theentity uses scenario analysis to inform its identi?cation of sustainabili-ty-related opportunities.b)
The extent to which, and how, the processes the entity uses to identify, assess,prioritize and monitor sustainability-related risks and opportunities areintegrated into and inform the entity’s overall risk management process.
c)Climate-Related Risks, Opportunities,
and Financial ImpactsRisk Management
Governance
Strategy
RiskManagement
Metrics
andtargets
Assessment and Managementof Material MattersClimate-Related Risks, Opportunities,and Financial Impacts
Risk Management
DisclosurePlacementCoreElements
DisclosureRecommendations
IFRS S?
The current and anticipated e?ects of climate-related risks andopportunities on the entity’s business model and value chain, andwhere in the entity’s business model and value chain climate-relatedrisks and opportunities are concentrated.b)
The quantitative and qualitative e?ects of those climate-related risksand opportunities on the entity’s ?nancial position, ?nancialperformance and cash ?ows for the reporting period, the climate-relat-ed risks and opportunities identi?ed in paragraph ??(a) for which thereis a signi?cant risk of a material adjustment within the next annualreporting period to the carrying amounts of assets and liabilitiesreported in the related ?nancial statements, and how the entityexpects its ?nancial position, ?nancial performance and cash ?ows tochange over the short, medium and long term, given its strategy tomanage climate-related risks and opportunities.
d)
Information about how the entity has responded to, and plans torespond to, climate-related risks and opportunities in its strategyand decision-making, including how the entity sets targets, how theentity is resourcing and quantitative and qualitative informationabout the disclosed progress of plans.c)
The governance body(s) (which can include a board, committee orequivalent body charged with governance) or individual(s) responsiblefor oversight of climate-related risks and opportunities.a)
Management’s role in the governance processes, controls andprocedures used to monitor, manage and oversee climate-related risksand opportunities.b)
Governance Structure and Mechanisms
Risk ManagementGovernance Structure and Mechanisms
Risk Management
The cross-industry metric categories of greenhouse gas emissions, internalcarbon prices, the percentage of executive management remunerationrecognized in the current period that is linked to climate-related consider-ations, capital deployment towards climate-related risks and opportunities,the amount and percentage of assets or business activities vulnerable toclimate-related risks and opportunities.a)
Industry-based metrics that are associated with one or more particularbusiness models, activities or other common features that characterizeparticipation in an industry.b)
GHG Emissions Management
Data Overview
The quantitative and qualitative climate-related targets the entityhas set or it is required to meet by law or regulation, progresstowards reaching the target, information about its performance,and each greenhouse gas emissions target.
c)
EnvironmentalSocialGovernance
???? Economic, Environmental
and Social ImpactGHG Emissions Management
Data Overview
The climate-related risks and opportunities that could reasonably beexpected to a?ect the entity’s prospects within time horizons—short,medium or long term, whether the entity considers the risk to be aclimate-related physical risk or climate-related transition risk.
a)
The processes and related policies the entity uses to identify, assess,prioritize and monitor climate-related risks, including informationabout: the inputs and parameters the entity uses, whether and howthe entity uses climate-related scenario analysis to inform itsidenti?cation of climate-related risks, whether and how the entityprioritizes climate-related risks, how the entity assesses the nature,likelihood and magnitude of the e?ects of those risksa)
Assessment and Management
of Material MattersClimate-Related Risks, Opportunities,
and Financial Impacts
Risk ManagementThe processes the entity uses to identify, assess, prioritize andmonitor climate-related opportunities, including information aboutwhether and how the entity uses climate-related scenario analysisto inform its identi?cation of climate-related opportunities.b)
The extent to which, and how, the processes for identifying, assessing,prioritizing and monitoring climate-related risks and opportunities areintegrated into and inform the entity’s overall risk management process.
c)Climate-Related Risks, Opportunities,
and Financial Impacts
Risk Management
Governance
Strategy
RiskManagement
Metricsand targets
Assessment and Management
of Material MattersClimate-Related Risks, Opportunities,
and Financial ImpactsAssessment and Management
of Material MattersClimate-Related Risks, Opportunities,
and Financial ImpactsAssessment and Management
of Material MattersClimate-Related Risks, Opportunities,
and Financial ImpactsAssessment and Management
of Material MattersClimate-Related Risks, Opportunities,
and Financial ImpactsThe entity’s assessment of its climate resilience, including the entity’sassessment for its strategy and business model, the signi?cant areas ofuncertainty considered in the entity’s assessment of its climateresilience and the entity’s capacity to adjust or adapt its strategy andbusiness model to climate change over the short, medium and longterm. The entity shall use climate-related scenario analysis to assess itsclimate resilience and disclose how and when the climate-relatedscenario analysis was carried out, including information about theinputs the entity used, the key assumptions the entity made in theanalysis and the reporting period in which the climate-related scenarioanalysis was carried out.
e)
Assessment and Management
of Material MattersClimate-Related Risks, Opportunities,
and Financial Impacts
Assessment and Management
of Material MattersClimate-Related Risks, Opportunities,and Financial Impacts
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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◎ GRI Index
?-?? Annual total compensation ratio
Not covered in this reportClimate StrategyEnvironmentalSupply Chain Security and ResilienceResponsible Mineral ManagementSafety and Quality of Products and ServicesData Security and Customer Privacy Protection
Equal EmploymentHuman Rights ProtectionEmployee DevelopmentEmployee Compensation and Bene?ts
Occupational Health and Safety
Commercial Behaviors
Climate Response
Energy UsageUsage of Water Resources
Pollutant Discharge
Waste DisposalEnvironmental Compliance Management
Circular EconomyCommunity Engagement for Shared ProsperitySupply Chain Security and ResilienceResponsible Mineral ManagementSafety and Quality of Products and ServicesData Security and Customer Privacy Protection
Equal EmploymentHuman Rights ProtectionEmployee DevelopmentEmployee Compensation and Bene?ts
Occupational Health and Safety
Risk ManagementInternal Control and Compliance
Commercial Behaviors
Climate ResponseEnergy UsageUsage of Water Resources
Pollutant Discharge
Waste DisposalEnvironmental Compliance Management
Circular EconomyCommunity Engagement for Shared ProsperitySupply Chain Security and ResilienceResponsible Mineral ManagementSafety and Quality of Products and ServicesShareholder Rights ProtectionData Security and Customer Privacy Protection
Human Rights ProtectionOccupational Health and Safety
Risk ManagementInternal Control and ComplianceCommercial Behaviors
?-?? Policy commitments
?-?? Embedding policy commitments
?-?? Processes to remediatenegative impacts
We did not collectrelevant data duringthe reporting periodGeneral Disclosures
LocationOmissionGRIStandards
DisclosuresLocationOmission
GRIStandards
Disclosures?-? Organizational details
?-? Reporting period, frequency and contact point?-? Restatements of information?-? External assurance
About XTCAbout This ReportAbout This ReportNot covered in this report
Governance Structure and MechanismsGovernance Structure and MechanismsCommunications with StakeholdersGovernance Structure and MechanismsNot covered in this reportGovernance Structure and MechanismsGovernance Structure and Mechanisms
?-?? Role of the highest governance body inoverseeing the management of impacts
?-?? Role of the highest governance body insustainability reporting
This report does notcover restatementsof information
We did not collectrelevant data duringthe reporting period
About XTCChairman's StatementSuppliers and Clients
Governance Structure and Mechanisms
Energy UsageUsage of Water ResourcesPollutant DischargeWaste DisposalOccupational Health and Safety?-?? Con?icts of interest?-?? Communication of critical concerns
?-?? Remuneration policies?-?? Process to determine remuneration
?-?? Delegation of responsibility formanaging impacts
?-?? Collective knowledge of thehighest governance body?-?? Evaluation of the performance of thhighest governance body
GRI ?:
GeneralDisclosures????
GRI ?:
GeneralDisclosures
????
About This Report
Human Rights ProtectionData Overview?-? Activities, value chain and otherbusiness relationships?-? Employees?-? Workers who are not employees?-? Governance structure and composition
?-?? Chair of the highest governance body
Data OverviewGovernance Structure and MechanismsGovernance Structure and MechanismsGovernance Structure and MechanismsGovernance Structure and Mechanisms
?-? Entities included in the organization’ssustainability reporting
?-?? Nomination and selection of the highestgovernance body
?-?? Statement on sustainabledevelopment strategy
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
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Market presence
Indirect economic impact
Procurement practices
GRI ?:
MaterialTopics ????
GRI ???:
Market
Presence????
Human Rights Protection?-? Management of material topics
???-? Proportion of senior management hiredfrom the local community???-? Ratios of standard entry level wage bygender compared to local minimum wage
???-? Infrastructure investments andservices supported
???-? Operations assessed for risks related tocorruption???-? Con?rmed incidents of corruption andactions taken???-? Communication and training aboutanti-corruption policies and procedures
We did not collectrelevant data duringthe reporting period
We did not collectrelevant data duringthe reporting period
Not covered in this reportData Overview
GRI ?:
MaterialTopics ????GRI ???:
Anti-corruption????
Anti-Commercial Bribery and Anti-Corruption?-? Management of material topicsAnti-Commercial Bribery and Anti-CorruptionAnti-Commercial Bribery and Anti-Corruption
GRI ?:
MaterialTopics ????
GRI ???:
Indirect
Economic
Impacts????
Industrial Support for Rural Revitalization?-? Management of material topics
GRI ?:
MaterialTopics ????
Supply Chain Security and Resilience
Responsible Mineral Management?-? Management of material topics
GRI ???:
Procurement
Practices????
Not covered in this report???-? Proportion of spending on local suppliers
???-? Signi?cant indirect economic impacts
Anti-competitive behavior
GRI ?:
MaterialTopics ????
Anti-unfair Competition?-? Management of material topics
GRI ???:
Anti-competitiveBehavior ????
Anti-unfair CompetitionData Overview???-? Legal actions for anti-competitivebehavior, anti-trust, and monopoly practices
Anti-corruption
Industrial Support for Rural RevitalizationIndustrial Support for Rural Revitalization
LocationOmissionGRIStandards
DisclosuresLocationOmission
GRIStandards
Disclosures
?-?? Mechanisms for seeking adviceand raising concerns
Communications with StakeholdersShareholder Rights ProtectionCommunity Engagement for Shared ProsperitySupply Chain Security and Resilience
Responsible Mineral ManagementSafety and Quality of Products and Services
Human Rights ProtectionEmployee CommunicationComplaint Mechanism and Whistleblower Protection
Governance Structure and MechanismsShareholder Rights ProtectionClimate ResponseUsage of Water Resources
Pollutant DischargeWaste DisposalEnvironmental Compliance Management
Responsible Mineral ManagementSafety and Quality of Products and ServicesData Security and Customer Privacy Protection
Equal EmploymentHuman Rights ProtectionOccupational Health and SafetyAnti-Commercial Bribery and Anti-Corruption
Anti-unfair CompetitionTax Compliance
?-?? Compliance with laws andregulations
?-?? ?-?? Approach to stakeholderengagement
Promoting Industry DevelopmentCommunications with StakeholdersEmployee Communication?-?? ?-?? Membership associations?-?? ?-?? Collective bargaining agreements?-? Management of material topics?-? List of material topics
Material topics
Assessment and Management of Material Matters
Communications with StakeholdersAssessment and Management of Material MattersGRI ?:
MaterialTopics ????
Economic performanceGRI ?:
MaterialTopics ????
GRI ???:
EconomicPerformance????
Governance Structure and MechanismsClimate-Related Risks, Opportunities, and Financial Impacts
Risk ManagementInternal Control and ComplianceEmployee DevelopmentCommunications with Stakeholders?-? Management of material topics
???-? Financial implications andother risksand opportunities due to climate change???-? Direct economic valuegenerated and distributed???-? De?ned bene?t plan obligationsand other retirement plans???-? Financial assistance receivedfrom government
???? Economic, Environmental and Social Impact
Employee DevelopmentNot covered in this report
We have alreadydisclose in our ????annual report
Climate-Related Risks, Opportunities,
and Financial Impacts
Risk Management
Anti-Commercial Bribery and Anti-Corruption
Data Overview
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Tax
GRI ?:
MaterialTopics ????
GRI ???:
Tax ????
Tax Compliance
Not covered in this report
?-? Management of material topics???-? Approach to tax
???-? Country-by-country reporting???-? Stakeholder engagement andmanagement of concerns related to tax
???-? Reclaimed products and their packaging materials
???-? Reductions in energy requirements ofproducts and services
???-? Energy consumption outside of theorganization
???-? Tax governance, control,and risk management
Tax ComplianceTax Compliance
GRI ?:
MaterialTopics ????
GRI ???:
Materials
????
Circular Economy?-? Management of material topics???-? Materials used by weight or volume???-? Recycled input materials used
Materials
Energy
GRI ?:
MaterialTopics ????
Energy Usage
Climate Strategy
?-? Management of material topics
GRI ???:
Energy????
Not covered in this report???? Economic, Environmental and Social Impact
???-? Energy consumption within the organization
???-? Energy intensity???-? Reduction of energy consumption
LocationOmissionGRIStandards
DisclosuresLocationOmission
GRIStandards
Disclosures
Tax ComplianceCommunications with Stakeholders
Circular Economy
Data Overview
Circular Economy
Data Overview
Circular Economy
Data Overview
Energy Usage
Data Overview
Climate StrategyEnergy Usage
Biodiversity
GRI ?:
MaterialTopics ????
Ecosystem and Biodiversity Protection?-? Management of material topics
GRI ???:
Biodiversity????
Ecosystem and Biodiversity ProtectionEcosystem and Biodiversity ProtectionEcosystem and Biodiversity ProtectionNot covered in this report
???-? Operational sites owned, leased,managed in, or adjacent to, protected areasand areas of high biodiversity value outsideprotected areas
???-? IUCN Red List species and nationalconservation list species with habitats inareas a?ected by operations
Our operating sites andsurrounding areas donot involve anya?ected habitats
???-? Signi?cant impacts of activities, products and services on biodiversity???-? Habitats protected or restored
GRI ???:
Water and
E?uents????
Usage of Water Resources
???-? Water withdrawal???-? Water discharge???-? Water consumption
???-? Interactions with water as ashared resource???-? Management of waterdischarge-related impacts
Wastewater Discharge Management
Data OverviewUsage of Water Resources
Data OverviewWastewater Discharge Management
Data OverviewUsage of Water Resources
Data Overview
Water and e?uents
GRI ?:
MaterialTopics ????
Usage of Water Resources?-? Management of material topics
Emissions
GRI ?:
MaterialTopics ????
GRI ???:
Emissions????
GHG Emissions ManagementWaste Gas Emissions ManagementGHG Emissions Management
Data Overview
GHG Emissions ManagementData Overview
GHG Emissions Management
Data Overview???? Economic, Environmental and Social Impact
Data Overview
Waste Gas Emissions Management
Data Overview
?-? Management of material topics???-? Direct (Scope ?) GHG emissions???-? Energy indirect (Scope ?) GHG emissions???-? Other indirect (Scope ?) GHG emissions???-? GHG emissions intensity???-? Reduction of GHG emissions???-? Emissions of ozone-depleting substances (ODS)
Our operations do notinvolve such emissions???-? Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi?cant air emissions
Climate StrategyNot covered in this report
We did not collectrelevant data duringthe reporting period
We did not collectrelevant data duringthe reporting period
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Supplier environmental assessment
GRI ?:
MaterialTopics ????GRI ???:
SupplierEnvironmentalAssessment
????
Supply Chain Security and Resilience
Responsible Mineral ManagementSupply Chain Security and Resilience
Responsible Mineral ManagementSupply Chain Security and Resilience
Responsible Mineral Management
?-? Management of material topics
???-? Negative environmental impactsin the supply chain and actions taken???-? New suppliers that were screened usingenvironmental criteria
WasteGRI ?:
MaterialTopics ????
GRI ???:
Waste????
Waste Disposal?-? Management of material topics
???-? Waste generated???-? Waste diverted from disposal???-? Waste directed to disposal
Waste DisposalWaste Disposal
Diversity and equal opportunity
GRI ?:
MaterialTopics ????
GRI ???:
Diversityand EqualOpportunity????
Supply Chain Security and Resilience
Responsible Mineral Management
Equal EmploymentHuman Rights Protection?-? Management of material topics???-? Diversity of governance bodies and employees
Not covered in this report
We did not collectrelevant data duringthe reporting period
Waste DisposalData OverviewWaste DisposalData OverviewWaste DisposalData Overview
Labor management relations
GRI ?:
MaterialTopics ????
Equal EmploymentHuman Rights Protection?-? Management of material topics
GRI ???:
Labor/ManagementRelations ????
Not covered in this report???-? Minimum notice periods regardingoperational changes
We did not collectrelevant data duringthe reporting period
Employee
GRI ?:
MaterialTopics ????
Equal EmploymentHuman Rights Protection?-? Management of material topics
GRI ???:
Employment????
Data OverviewEmployee Compensation and Bene?ts
Data Overview
???-? New employee hires and employee turnover
???-? Parental leave???-? Bene?ts provided to full-time employeesthat are not provided to temporary or part-time employees
???-? Waste generation and signi?cantwaste-related impacts???-? Management of signi?cantwaste-related impacts
Occupational Health and Safety
GRI ?:
MaterialTopics ????
Occupational Health and Safety?-? Management of material topics
GRI ???:
Occupational
Health andSafety ????
Occupational Health and Safety
Occupational Health
Occupational Health and Safety Training
Occupational Health
???-? Occupational health and safetymanagement system???-? Occupational health services???-? Hazard identi?cation, risk assessment,and incident investigation
???-? Worker training on occupationalhealth and safety???-? Promotion of worker health
???-? Work-related injuries???-?? Work-related ill health
???-? Worker participation, consultation, andcommunication on occupational health and safety
???-? Prevention and mitigation ofoccupational healthand safety impactsdirectly linked by business relationships???-? Workers covered by an occupational healthand safety management system
Occupational Health and Safety
Data Overview
Training and education
GRI ?:
MaterialTopics ????
GRI ???:
Training andEducation????
Supply Chain Security and Resilience
Responsible Mineral ManagementHuman Rights ProtectionEmployee DevelopmentOccupational Health and Safety?-? Management of material topics???-? Average hours of training per yearper employee???-? Programs for upgrading employeeskills and transition assistance programs
???-? Ratio of basic salary and remunerationof women to men
???-? Percentage of employees receiving regular performance and career development reviews
Data OverviewEmployee DevelopmentEmployee Compensation and Bene?ts
Data Overview
Human Rights Protection
Data Overview
LocationOmissionGRIStandards
DisclosuresLocationOmission
GRIStandards
Disclosures
Occupational Health andSafety Risk Management
Occupational Healthand Safety Management Structure
Data Overview
Occupational Health
Occupational Health
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Non-discriminationGRI ?:
MaterialTopics ????
Equal EmploymentHuman Rights Protection?-? Management of material topics
GRI ???:
Non-discrimination
????
Human Rights Protection???-? Incidents of discrimination andcorrective actions takenFreedom of association and collective bargaining
GRI ?:
MaterialTopics ????GRI ???:
Freedom of
Associationand CollectiveBargaining ????
Human Rights ProtectionEmployee CommunicationEmployee Communication
3-3 Management of material topics
???-? Operations and suppliers in which theright to freedom of association and collectivebargaining may be at risk
Forced or compulsory labor
GRI ?:
MaterialTopics ????
Human Rights Protection?-? Management of material topics
GRI ???:
Forced orCompulsoryLabor ????
Human Rights Protection???-? Operations and suppliers at signi?cantrisk for incidents of forced or compulsory labor
Security practicesGRI ?:
MaterialTopics ????
Human Rights Protection?-? Management of material topics
GRI ???:
Security
Practices????
Human Rights Protection???-? Security personnel trained in humanrights policies or procedures
Right of indigenous peoples
GRI ?:
MaterialTopics ????
Community Engagement
for Shared Prosperity?-? Management of material topics
GRI ???:
Rights ofIndigenousPeoples ????
Community Engagementfor Shared Prosperity???-? Incidents of violations involving rightsof indigenous peoples
Child labor
GRI ?:
MaterialTopics ????
Responsible Mineral Management
Human Rights Protection?-? Management of material topics
GRI ???:
Child Labor????
Responsible Mineral Management
Human Rights Protection???-? Operations and suppliers at signi?cantrisk for incidents of child labor
Local communities
GRI ?:
MaterialTopics ????
GRI ???:
LocalCommunities????
Community Engagement forShared ProsperityCommunity Engagement forShared ProsperityCommunity Engagement forShared Prosperity
?-? Management of material topics???-? Operations with local community engagement,impact assessments, and development programs???-? Operations with signi?cant actual andpotential negative impacts on local communities
Marketing and labeling
GRI ?:
MaterialTopics ????
GRI ???:
Marketingand
Labeling????
Safety and Quality of Products and Services?-? Management of material topics???-? Requirements for product and serviceinformation and labeling???-? Incidents of non-compliance concerningmarketing communications???-? Incidents of non-compliance concerningproduct and service information and labeling
Safety and Quality of Products and Services
SocialSocial
Customer health and safety
GRI ?:
MaterialTopics ????GRI ???:
CustomerHealth andSafety ????
Safety and Quality of Products and ServicesSafety and Quality of Products and Services
Social
?-? Management of material topics
???-? Incidents of non-compliance concerning thehealth and safety impacts of products and services???-? Assessment of the health and safetyimpacts of product and service categories
Supplier social assessment
GRI ?:
MaterialTopics ????
GRI ???:
SupplierSocialAssessment
????
Supply Chain Security and Resilience
Responsible Mineral ManagementSupply Chain Security and Resilience
Responsible Mineral ManagementSupply Chain Security and Resilience
Responsible Mineral Management
?-? Management of material topics???-? Negative social impacts in the supply chain and actions taken???-? New suppliers that were screenedusing social criteria
Public policy
GRI ?:
MaterialTopics ????
Not covered in this report?-? Management of material topics
GRI ???:
PublicPolicy ????
Not covered in this report???-? Political contributions
We do not involvedin the relevant matterWe do not involvedin the relevant matter
Customer privacy
GRI ?:
MaterialTopics ????
Data Security and Customer Privacy Protection?-? Management of material topics
GRI ???:
CustomerPrivacy ????
Data Security and Customer Privacy Protection???-? Substantiated complaints concerningbreaches of customer privacy and lossesof customer data
LocationOmissionGRIStandards
DisclosuresLocationOmission
GRIStandards
Disclosures
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
◎ Independent Limited Assurance Report
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
◎ Independent Limited Assurance Report
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
◎ Independent Limited Assurance Report
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report
◎ Independent Limited Assurance Report
PrefaceSocialAppendixGovernanceEnvironmentalSustainability-RelatedGovernance
??????
????Sustainability Report