Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved zero wastewater discharge throughout the year. Invested 190,547,500 yuan in environmental protection, including investment in environmental equipment and pollutant treatment facilities.
• Implemented measures to reduce carbon emissions through advanced processes, equipment energy savings, energy efficiency improvements, and energy refined management to reduce energy consumption.

Social Achievements

• Donated a total of 4,300,000 yuan to the Huantai County Red Cross Society and the Huantai County Charity Federation to support local medical and health development.
• Improved employee working environment, conducted health checkups, provided systematic safety education and training for different positions, and established a competitive compensation and welfare system.

Governance Achievements

• Established a performance evaluation and incentive constraint mechanism for directors and senior management personnel, linking their compensation and incentives directly to the company's operating performance.
• Complied with relevant laws, regulations, and the requirements of the China Securities Regulatory Commission and the Shenzhen Stock Exchange regarding listed company governance.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic fluctuations
• Safety and environmental protection risks
• Increased market competition
• Fluctuations in product prices
• Risk of change in actual controller

Mitigation Strategies

• Continued optimization of market layout, innovation of production and operation concepts, and orderly advancement of the “300,000 tons/year organosilicon monomer and 200,000 tons/year organosilicon downstream product deep processing project” trial production and commissioning.
• Strengthening environmental protection investment, improving safety and environmental protection management levels, and enhancing safety and environmental protection capabilities.
• Strengthening the marketing service network, improving the quality control system, and controlling product quality from the source.
• Implementing cost reduction and efficiency improvement measures, increasing R&D investment, developing new application scenarios, and increasing product varieties.
• Strictly controlling various expenses, giving full play to the company's scale advantages in raw material procurement, production management, energy consumption, by-product comprehensive utilization, and market marketing.

Supply Chain Management

Responsible Procurement

• The company has an independent supply chain system and a materials procurement department responsible for controlling the procurement process, selecting, controlling, and evaluating suppliers.

Climate-Related Risks & Opportunities

Awards & Recognition

• Shandong Provincial Clean Production Advanced Unit

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved "National Green Factory" title
• Implemented wastewater zero-discharge project
• Developed and released 13 group standards, participated in drafting 5 group standards and 2 national standards
• Obtained 54 authorized invention patents

Social Achievements

• Donated a total of 4.3 million yuan to the Huantai County Red Cross Society and Huantai County Charity Federation
• Improved employee working environment and conducted health checkups
• Provided systematic safety education and training for employees
• Established a complete supplier evaluation system

Governance Achievements

• Improved internal control management
• Established a sound corporate governance structure and supporting systems

Climate Goals & Targets

Environmental Challenges

• Market competition
• Safety and environmental protection
• Product prices
• Changes in actual controller

Mitigation Strategies

• Expand business scale to meet growing product demand
• Increase product R&D investment
• Improve process technology level and strengthen information construction
• Implement talent cultivation strategy
• Improve internal control system to reduce risks from changes in controlling shareholders

Supply Chain Management

Responsible Procurement

• Independent supply chain system, material procurement department responsible for supplier selection, control, and evaluation

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO9001, ISO14001, ISO50001, ISO45001, ISO10012

Awards & Recognition

• National Green Factory

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved zero wastewater discharge.
• Received the "Shandong Provincial Clean Production Advanced Unit" honorary title.

Social Achievements

• Improved employee working environment and conducted health checkups.
• Provided diversified cultural activities for employees.
• Established a complete employee training system.

Governance Achievements

• Revised and improved a series of safety management regulations.
• Completed the construction of a safety skills training base and the "Silicone Material Cloud Platform" APP.

Climate Goals & Targets

Environmental Challenges

• Market imbalance between supply and demand due to industry capacity expansion, resulting in a significant decrease in product prices.
• Fluctuations in raw material and energy prices.
• Safety and environmental risks associated with chemical production.
• Uncertainty in equity structure due to the restructuring of Xinhua Union Holdings Co., Ltd.

Mitigation Strategies

• Stabilized production capacity, expanded markets, and reduced costs.
• Improved energy efficiency and reduced energy consumption.
• Strengthened safety and environmental management.
• Implemented various measures to ensure pollution discharge meets national and local environmental quality standards.

Supply Chain Management

Responsible Procurement

• The company has an independent supply chain system and a materials procurement department responsible for controlling and managing the procurement process, selecting, controlling, and evaluating suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO9001, ISO14001, ISO50001, ISO45001, ISO10012

Sustainable Products & Innovation

• Flame-retardant silicone rubber
• Oxygen-based silicone oil
• Silicone defoamer
• Medical silicone gel

Awards & Recognition

• China Fluorine Silicon Industry Leading Enterprise
• Fluorine Silicon Industry New Star

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Employee Well-being
• Safety

Environmental Achievements

• Achieved zero wastewater discharge.
• Received the "Shandong Provincial Clean Production Advanced Unit" honorary title.
• Invested 104,048,200 yuan in environmental protection.

Social Achievements

• Improved employee working environment and conducted health checkups.
• Provided systematic safety education and training for employees.
• Engaged in employee welfare, donations, and poverty relief activities.

Governance Achievements

• Improved corporate governance and standardized operations.
• Strengthened internal control management.
• Ensured compliance with laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic fluctuations.
• Safety and environmental risks.
• Intensified market competition.
• Fluctuations in product prices.
• Change of actual controller.

Mitigation Strategies

• Closely monitoring macroeconomic trends and adjusting business plans accordingly.
• Investing in safety equipment and implementing strict safety management systems.
• Strengthening internal control management and improving corporate governance.
• Monitoring product prices and adjusting product structure and production plans.
• Strengthening internal control management, establishing a sound corporate governance structure, and improving internal decision-making mechanisms.

Supply Chain Management

Responsible Procurement

• Independent supply chain system
• Supplier selection, control, and evaluation

Climate-Related Risks & Opportunities

Awards & Recognition

• China Fluorine Silicon Industry Leading Enterprise

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• 污水零排放
• 废气达标排放
• 投入环保相关费用 7,815.94 万元
• 积极响应国家清洁生产政策，提高单体纯度、降低能耗、提高利用效率

Social Achievements

• 重视人才培养，实现员工与企业的共同成长
• 积极改善职工工作环境，做好健康监护
• 完善具有吸引力和竞争性的薪酬、福利体系
• 建立完善的职业培训制度，内部开展职工梯度培训

Governance Achievements

• 严格按照《公司法》《深圳证券交易所创业板股票上市规则》《上市公司信息披露管理办法》等相关法律法规的要求，不断完善公司治理、规范运作，提高上市公司质量，切实保护投资者和债权人特别是中小投资者的合法权益。

Climate Goals & Targets

Environmental Challenges

• 宏观经济环境风险
• 市场竞争加剧风险
• 原材料、能源价格波动风险
• 安全环保风险
• 股权变动的风险

Mitigation Strategies

• 实施低成本战略，努力做到极高的效率、极低的成本、极优的产品、极稳的运行，牢牢掌握市场竞争主动权。
• 密切跟踪三大原材料金属硅、氯甲烷、甲醇及各类辅助材料、能源价格的变动趋势，及时调整采购和生产计划，节能挖潜、降本增效，减少原材料、能源价格变动带来的风险。
• 从安全设施及安全管理两方面着手，配备安全仪表系统（SIS）、泄漏检测报警系统及各类安全防护设施和防火、防爆设施，建立严格的安全管理组织网络、制度和操作规程，加强员工的安全责任意识。

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• “中国氟硅行业领军企业”
• “中国氟硅行业优秀创新型企业”
• 全球新材料 500 强
• 石油和化工企业 500 强
• 基础化学原料企业百强
• 山东省清洁生产先进单位