Zhejiang Jiuli Hi-Tech Metals Co., Ltd.

Share Stock Code：002318

Zhejiang Jiuli Hi-Tech Metals Co., Ltd.Address: (South Gate of Jiuli Industrial Park) No.1899 Zhongxing Road, Wuxing District, Huzhou, Zhejiang, ChinaRegistered address: Shuanglinzhen West, Huzhou, Zhejiang, ChinaTel：0086-572-2539999Postcode: 313028Email：jlgf@jiuli.com

Sustainability

Report 2024

CONTENTSCONTENTS

Strengthening Corporate GovernanceParty Building Leads Development

Enhancing Climate ResilienceOptimizing Energy UseEnvironmental Compliance ManagementPromoting Clean ProductionEcosystem Protection

Upholding Quality,Innovating Leadsthe FutureContinuous R&D and InnovationUpholding Product QualityOptimizing the Customer ExperienceMaintaining Information Security

Protect Occupational HealthProtecting Employee Rights and InterestsEmpowering Employee Development

Responsible Partnership,Gatheringa Force for GoodResponsible Supply ChainIndustry ConnectionFul?lling Social Responsibility

Key Performance Disclosure

Index

Chairman's StatementAbout This Report

About JiuliSustainability Management

Sound Governance,Building SolidFoundation For Development

Low-Carbon andEnvironmental Protection,Building a New Chapterof Sustainability

Safety First,EmpoweringEmployee Development

This is the 2024 Sustainability Report published by Zhejiang Jiuli Hi-Tech Metals Co., Ltd. This report details the compa-ny's sustainable development philosophy and strategy, as well as its efforts in environmental protection, social respon-sibility, and corporate governance in 2024, aiming to respond to the expectations and needs of stakeholders.

For ease of presentation and readability,"Jiuli ", "the Company" and "we" in the report refer to Zhejiang Jiuli Hi-TechMetals Co., Ltd, "Jiuli Group" refers to Jiuli Group Co., Ltd., and "EBK" refers to EISENBAU KR?MER GMBH (a overseassubsidiary of Jiuli).

This report covers the calendar year from January 1st, 2023 to December 31st, 2023, with some contents extended beyondthe above mentioned period for readability.

ABOUT THIS REPORT

ABBREVIATIONS

REPORTING PERIOD

REPORT ACCESS

REPORTING STANDARD

EXPLANATION OF INFORMATION

This report is prepared in accordance with the relevant requirements of the Global Sustainability Standards Board(GSSB) Sustainability Reporting Standards(GRI STANDARDS 2021), the Shenzhen Stock Exchange's Self-Regulatory Guide-lines for Listed Companies No. 1 - Standardized Operations and Self-Regulatory Guidelines for Listed Companies No. 17- Sustainability Reporting (Trial) (hereinafter referred to as the "SZSE Guidelines"), and in light of the company's actualsituation.

This report is compiled based on the company's consolidated statistics. Data is sourced from of?cial company docu-ments and statistical reports, as well as speci?c data provided by relevant functional departments. Unless otherwisespeci?ed, the currency in this report is in RMB.Due to the differences in statistical standards between China and abroad, and to ensure data accuracy and comparabili-ty, in Chapter 4 and the key performance tables only headcount and gender statistics for overseas EBK locations areincluded. Other data items do not currently include information on overseas EBK locations.

The report is published on annual basis in digital format. It can be downloaded from Juchao Information Network（ww-w.cninfo.com.cn）.

0304

In 2024, Jiuli, carrying the mission entrusted by this era, stood bravely at the forefront of industry develop-ment. Through the year, all our colleagues worked together with determination and achieved fruitfulresults. Facing the challenges of development and the test of the times, we have deeply embraced theconcept of sustainability, implemented innovation-driven development strategy, and ?rmly ful?lled ourcorporate social responsibility, contributing the strength of Jiuli to the realization of social sustainabledevelopment.We continuously improve top-level design to strengthen the foundation of modern governance.

While strengthening risk management and internal control compliance systems, we adhere to businessethics, optimize anti-fraud and reporting mechanisms, deepen integrity education for all employees, andpromote the concept of fair competition. The company always follow the leadership of the Party, andintensively promotes ?ve key actions ? Ideological Strength, Solid Foundation, Innovation Leadership,Humanistic Well-being, Integrity Culture, achieving a two-way empowerment of Party building and corpo-rate management.

We actively promote green transformation and implement the dual-carbon strategic goals.

With the goal of creating a "zero-carbon factory," we enhance climate resilience, accelerate the optimiza-tion of our energy structure, and strengthen environmental compliance management. We implement cleanproduction and green operations, optimize our waste management system, and achieve ef?cient recyclingof water resources in our industrial park. In 2024, the company's cumulative carbon emissions werereduced by 9,864 tons, and the carbon emission intensity was less than 1 ton/10,000 yuan.Driven by technological innovation, we have forged the industry quality benchmark.We are actively expanding our scienti?c research platform, attracting technical talent, breaking through keycore technologies, and promoting product intelligence upgrades. We implement full life-cycle quality manage-ment, build a strong information security defense line, optimize our service system, and continuously improvecustomer satisfaction. In 2024, the company's R&D investment reached 360 million yuan. We successfully

developed and delivered corrosion-resistant alloy pipes for the ?rst domestic demonstration unit ofenvironmentally friendly epichlorohydrin, make technical breakthrough in key piping materials manufac-turing for new nuclear energy, and obtained 128 effective patents, earning the title of "National IntellectualProperty Demonstration Enterprise."

We have built a new landscape for co-development to inject new vigor into social progress.We adhere to a people-oriented approach, creating a positive ecosystem with employees, suppliers, andthe community. Internally, we improve the safety production management system, ensure employees'occupational health, and provide clear career development channels. Externally, we optimize supply chainmanagement, strictly control quality risks, and promote the green transformation of the industrial chain.In the community, we actively participate in public welfare, carry out donations and volunteer services,and promote the harmonious coexistence of business value and social value.Setting sail on a new journey, it is the right time for hardwork. Looking ahead to 2025, Jiuli will continue tobe based on scienti?c governance, with a green concept as its soul, adhering to the corporate spirit of"pioneering through hardship, winning with quality, and basing ourselves on integrity," and practicing thebusiness philosophy of " Serving customers, contributing to the society, and developing Jiuli." We will workhand-in-hand with all partners, bravely assume social responsibility, and contribute greater strength topromoting sustainable development.

Li Zhengzhou, Chairman, Zhejiang Jiuli Hi-Tech Metals Co., Ltd.

To all stakeholders: welcome to our 2024 sustainability report. Onbehalf of the board of directors of Zhejiang Jiuli Hi-tech Metals Co.,Ltd., I would like to thank you for your continued care and support.

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CHAIRMAN'S STATEMENT

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Jiuli, the core holding subsidiary of Jiuli Group Co., Ltd., has been committed to quality improvement since its establish-ment in 1987. In 2009, the company was successfully listed (stock code: 002318), focusing on the R&D and production ofstainless steel that are resistant to corrosion, high temperatures, and high pressure and special alloy pipes, wires, bars,pipe ?ttings, forgings, and other products.This has formed a complete industrial chain covering R&D, smelting, forging,and processing services.Since 1997, the company has introduced the ISO 9001 quality management system and continuously improved customersatisfaction by ensuring compliance with customer, legal, and regulatory requirements. Currently, the company haspassed ISO 9001 quality assurance, ISO 14001 environmental management, ISO 45001 occupational health and safetymanagement systems, Civil Nuclear Safety Equipment Manufacturing License, ASME nuclear power certi?cation, specialequipment manufacturing license for pressure pipelines and components, API-5LC/5CT/5LD/5CRA certi?cation, majorclassi?cation society certi?cations, and the TUV (PED/AD - W2000) EU Pressure Equipment Directive certi?cation, etc.Through the development journey, Jiuli Group has successively won the National May 1st Labor Award, been rankedamong the top 500 private enterprises in China, the top 500 manufacturing enterprises in China, named a nationalsupply chain innovation and application demonstration enterprise, and established a postdoctoral research workstationand other honors. At the same time, as the core business unit of Jiuli Group, the company has also been honored as ahigh-tech enterprise, a single-item champion enterprise in manufacturing, a national technology innovation demon-stration enterprise, a national intellectual property demonstration enterprise, a green factory, a Zhejiang ProvincialPeople's Government Quality Award winner, a key enterprise research institute in Zhejiang Province, and a key academi-cian workstation in Zhejiang Province, among other national and provincial honors.Relying on more than 30 years of precision manufacturing experience and innovative R&D capabilities, the company hasbecome a quali?ed supplier for large enterprises such as Sinopec, PetroChina, and CNOOC, thanks to its product quality,customer service, and innovation capabilities. It is also actively expanding its international market, with products soldto more than 70 countries and regions worldwide, and has established long-term cooperative relationships with Fortune500 companies such as Saudi Aramco, Shell, BP, and TotalEnergies.Based in China and with a global perspective, the company will continue to adhere to the enterprise spirit of "workinghard, winning by quality, being trustworthy" and the business philosophy of "serving customers, contributing to thesociety, and developing the company", and implement the development concept of innovation, coordination, greenness,openness and sharing with "intelligent and green manufacturing" as the means to promote transformation and upgrad-ing and to provide high-performance materials for global industries.

COMPANY PROFILE

ACHIEVEMENTS AND HONORS

CORPORATE CULTURE

ABOUT JIULI

MISSION

0708

2024 TOP 500 PRIVATE ENTERPRISES IN CHINA

2024 Huzhou Top 50 PrivateEnterprises by Tax Contribution

JIULI GROUP

2024 Huzhou Top 50 Private

Enterprises by R&D

JIULI GROUP2024 Huzhou Top 50 PrivateEnterprises by Revenue

JIULI GROUP

Excellent Award for Science and Technology Progress byChina Association for PromotingPrivate Sci-Tech Enterprises

JIULI

Zhejiang Provincial ManagementBenchmarking Enterprise by ZhejiangProvincial Department of Economy andInformation Technology

JIULI

2024 Huzhou Top 50 PrivateEnterprises by Employment

JIULI GROUP

"Green Supply Chain ManagementEnterprise" List by Ministryof Industry and Information

Technology

JIULI

2024 NanxunDistrict Enterprise with

Respect for Talent

JIULI

2024 Metallurgical Scienceand Technology Award

JIULI

2024 Wuxing District Science

and TechnologyLeadership Award

JIULI

2024 Wuxing District"Talent-Strong Enterprise"

Top 10

JIULI

2024 Nanxun District Top 10

Foreign Trade Import andExport Enterprises

JIULI

"2024 Top 500 ManufacturingEnterprises in China" - Rank 368

JIULI GROUP

"2024 Top 100 Enterprisesin Zhejiang Province" - Rank 95

JIULI GROUP

"2024 Top 100 ManufacturingEnterprises in Zhejiang Province"

- Rank 65JIULI GROUP

2024 Huzhou City "Golden Elephant & Golden Bull" Enterprise

JIULI GROUP

2024 Huzhou City Major

Taxpayer

JIULI GROUP

2024 Huzhou City "Most Caring

Donor Enterprise

JIULI GROUP

SPIRITWorking hard, winning byquality, being trustworthy

PHILOSOPHY

Serving customers, contrib-uting to the society, anddeveloping JiuliProvide high-performancematerials for the globalindustries

JIULI GROUP

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Jiuli is committed to integrating sustainable development into all aspects and processes of its business operations. Bycontinuously reducing risks, improving operational ef?ciency, and enhancing its own sustainability capabilities, thecompany actively contributes to the harmonious development of society and the environment.

During the annual meeting, the Board of Directors has listened to the report on ESGstrategy implementation.One ESG-related training session was held for members of the Board of Directors.

Adhering to the business philosophy of " Serving customers, contributing to the society, and developing Jiuli," Jiuli inte-grates the concepts of sustainable development and Environmental, Social, and Governance (ESG) into all areas andprocesses of its business operation. Currently, the company is progressively building and improving its ESG manage-ment framework, incorporating it into strategy planning and daily operations. The Board of Directors is responsible forinitiating and setting medium- to long-term ESG strategic goals, ensuring high alignment with the company's overallstrategy. Meanwhile, the company has an ESG working group, composed of representatives from relevant departments,responsible for internal ESG matters, performance data collection and management, and other daily management tasks.Furthermore, the Board's of?ce is responsible for coordinating the ESG practices of various business departments,ensuring that all tasks are carried out as planned.

SUSTAINABILITY GOVERNANCE

Jiuli deeply integrates its sustainability strategy into core strategy such as investment decisions and risk management, systemicallyadvancing in the three major areas of environment, society, and governance. Before making major decisions, the company thoroughlyassesses the potential environmental impact of new projects or business expansions, including carbon emission levels and resourceuse ef?ciency. In risk management, it comprehensively considers environmental risks like energy price ?uctuations, social risks likehuman rights issues, and governance risks like corruption and con?icts of interest, to ensure compliant operations and protect thecorporate reputation.

SUSTAINABILITY STRATEGY

In order to identify and manage issues with signi?cant impacts on the economy, environment, society, and ?nance, while meetingregulatory requirements, Jiuli conducts double materiality assessment on critical business matters. This effectively enhances strategicdecision-making capabilities, increases stakeholder trust, and promotes the company's sustainable development.In 2024, the company conducted a double materiality analysis of its identi?ed sustainability-related issues using questionnaire surveysand quantitative assessments based on the requirements of the Shenzhen Stock Exchange's Self-Regulatory Guidelines for ListedCompanies No. 17 - Sustainability Reporting (Trial) and international standards like the GRI Standards 2021.

DOUBLE MATERIALITY ASSESSMENT ON CRITICAL BUSINESS MATTERS

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SUSTAINABILITY MANAGEMENT

IN 2024

ESG TRAINING CONTENT FOR BOARD MEMBERS

ENVIRONMENTThe company sets phased targets for carbon emissions reduction and increases the proportion of renewable energyuse, including investing in clean technology projects such as solar and energy storage. At the same time, the compa-ny implements measures to improve energy ef?ciency, optimizes operational processes to reduce resourceconsumption, and actively promotes water resource and waste management to minimize environmental impact.

The company continuously improves employee welfare, ensuring a safe, diverse, and fair working environment. Ithas implemented employee skill training and career development plans, actively fostering a diverse and inclusiveatmosphere. At the same time, the company continues to strengthen supply chain management to ensure suppliersmeet ESG standards.

SOCIAL

The company is committed to enhancing transparency and accountability, establishing a clear governance structure,and ensuring compliant operations. Through regular reports and information disclosure, it maintains transparentcommunication with stakeholders.What’s ESG and itsdevelopment trends

Disclosure analysis on

Jiuli ESG

Preliminary proposals fordiscussion points and report outline

Action plans

GOVERNANCE

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①UNDERSTANDING COMPANY ACTIVITIES AND BUSINESS CONTEXT

Develop deep understanding of the Guidelines published by Shenzhen Stock Exchange, while also referencing otherdomestic and international sustainability standards and policies. Further analyze the company's business operations,products, services, value chain, and industry conditions to understand its sustainability context.

②ESTABLISH SUBJECT MATTERS

Update last year’s subject matter lists and conduct impact, opportunity & risk assessment based on the considerationof the company's current situation, stakeholder demands, policy/regulatory requirements and industry trends analysis.

③ASSESSMENT AND FINALIZATION

From the perspectives of "Impact Materiality" and "Financial Materiality," conduct quantitative assessment and rankingof sustainability issues based on stakeholder survey results.

IMPACT MATERIALITY ASSESSMENT:Invite internal and external experts and stakeholders to assess the impact of

each issue on the economy, society, and environment from multiple dimensions, including scale of impact, scope ofimpact, probability of occurrence, and irremediability.

FINANCIAL MATERIALITY ASSESSMENT:Invite the Board of Directors, Board of Supervisors, senior management,

?nance-related personnel, and internal/external experts to assess the ?nancial materiality of each issue from multipletime horizons?, focusing on the likelihood of impact and the degree of ?nancial impact.

④REVIEW AND REPORTING

Company's Board of Directors and internal/external experts will conduct a ?nal review and con?rmation. This forms thebasis for the double materiality issue matrix and serves as a crucial foundation for the company's ESG managementactions.

? THE COMPANY DEFINES TIME HORIZONS AS SHORT-TERM (UP TO 1 YEAR), MEDIUM-TERM (1 TO 5 YEARS), AND LONG-TERM (OVER 5 YEARS).

Jiuli highly values the needs and expectations of various stakeholders, including government bodies, shareholders, customers, employ-ees, suppliers, the environment, industry partners, universities, and communities. By creating economic, social, and environmentalvalue, we contribute to sustainable development. The company maintains transparent channels to actively respond to stakeholderexpectations and demands, continuously improving communication mechanisms and enhancing information exchange ef?ciency.

STAKEHOLDER COMMUNICATION

? Corporate Governance? Business Ethics? Risk Management? Environmental Compliance? Climate Change?Corporate Governance?Risk Management?Business Ethics?Climate Change?Customer Service?Product Quality & Safety?R&D and Innovation?Occupational Health & Safety?Employee Rights & Bene?ts?Employee Hiring & Development?Supply Chain Management?Product Quality & Safety?Industry Cooperation & Development?Environmental Compliance?Climate Change?Energy Management?Waste Management?Water Resource Management?Biodiversity Protection?Green Operations?Industry Cooperation & Development?R&D and Innovation

P?roduct Quality & Safety?Public Charity?Environmental Compliance?Climate Change

?Shareholder Meetings?Site Visits?Press Releases & Announcements?Business Result Announcement?Roadshows

?Information Disclosure?Visits, Surveys, Meetings?Research & Implementation of Policies?Daily Communication & Reporting

?Grievance and Whistleblowing Service?General and Functional Training?Phone Calls & Emails?Employee Satisfaction Surveys?Work Meetings

?Customer Hotlines?Customer Satisfaction Surveys?Of?cial Media Platforms

Government &

Regulators

Community & NGOs

Industry Partners,

Universities, R&D Institutions

Shareholders &

Investors

Customers

Employees

Suppliers

Environment

?Supplier Quali?cation Audits?Supplier Meetings

?Implementing Energy Saving Policies?Forums & Meetings?Environmental Data Collection & Disclosure?Green Public Welfare Activities

?Forums & Meetings?R&D Cooperation?Industry-university-research collaboration?Site Visits?Community Service & Activities

STAKEHOLDER GROUPKEY MATTERSCOMMUNICATION CHANNELS

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To meet regulatory requirements and stakeholder demands, Jiuli strictly following the Shenzhen Stock Exchange Guidelines, and takingin consideration its business operations, products, services, value chain, and industry conditions, has updated its list of sustainabili-ty-related issues from previous years. In 2024, the company identi?ed 19 sustainability-related issues, including 7 environmentalissues, 9 social issues, and 3 governance issues. The company also conducted a preliminary identi?cation and analysis of the impacts,risks, and opportunities for each issue shown in the table below.

SUBJECT MATTERLIST AND IMPACTS, RISKS, AND OPPORTUNITIES ANALYSIS

Through quantitative assessment and ranking of sustainability-related issues, the results of Jiuli 2024 double materiality assessmentare shown in the matrix below. 5 issues were identi?ed as having both ?nancial and impact materiality, 1 issue with only ?nancial mate-riality, and 9 issues with only impact materiality.

For its 2024 ESG report, Jiuli strictly follows the Shenzhen Stock Exchange Guidelines. For the ?nancially material sustainability issuessuch as Product Quality & Safety, Occupational Health & Safety, Climate Change, R&D Innovation, Supply Chain Management, andCorporate Governance, the company has deeply investigated stakeholder demands and expectations, comprehensively identi?ed the"Governance - Strategy - Impact, Risk & Opportunity Management - Indicators & Goals," and presents them in a four-pillar format.

ASSESSMENT RESULTS

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Social

Low-Carbon andEnvironmental

Protection

Safe Operations,EmpoweringEmployeesUphold Quality,Lead with Innova-tionShared Responsi-

bility, PoolingForcesSustainability Management，Sound Governance, Building Solid Foundation for Development

Sound Governance, BuildingSolid Foundation for Development，Assume social responsibility forpositive impact

DIMENSION

ISSUE NAMESCOPE OF IMPACT

TIMEHORIZON

POSITIVE

NEGATIVEIMPACTRISKOPPORUNITY

CORRESPONDING SZSE

GUIDELINE ISSUE?

CORRESPONDINGREPORT CHAPTER

Environment

EnvironmentalCompliance

Own OperationsEnvironmental Compliance

Climate ChangeEnergy UseWater Resource UsePollutant Emissions,Waste Treatment,Circular EconomyEcosystem andBiodiversity Protection

Climate Change,

Energy Use,Water Use, Circular Economy

EmployeeEmployeeEmployeeProduct & Service Safety/

Quality, Data Security& Customer PrivacyInnovationProduct & Service

Safety/QualitySupply Chain Security,

Due DiligenceSocial ContributionSocial ContributionStakeholder Communication

Due Diligence

Anti-bribery &Anti-corruption,Anti-unfair Competition

Sound Governance,Building SolidFoundation forDevelopment

Short-Medium-Long

Short-Medium-Long

Short-Medium-Long

Short-Medium-Long

Short-Medium-Long

Long

Long

Long

Medium

-LongMedium

-LongMedium

-Long

Medium

-Long

Short-Medium-Long

Short-Medium-Long

Medium

-LongMedium

-LongMedium

-LongMedium

-Long

Short-Medium

Own Operations,

Value Chain & CommunityOwn Operations & Upstream Value ChainOwn Operations & CommunityOwn Operations,

Value Chain &

CommunityOwn Operations,

Value Chain& Community

Own Operations &

Downstream

Value ChainOwn OperationsOwn Operations & Downstream Value Chain

Own Operations & Upstream Value Chain

Own Operations &Downstream Value Chain

CommunityOwn Operations

Own Operations &Downstream Value Chain

Own Operations &Downstream Value Chain

Own OperationsOwn OperationsOwn OperationsOwn Operations

Climate ChangeEnergy ManagementWaste Management

BiodiversityProtection

GreenOperationsOccupationalHealth & Safety

Employee Rights & Interests

Employee Employment

& DevelopmentCustomer ServiceR&D InnovationProduct Quality

& Safety

Supply Chain

ManagementIndustry Cooperation

& Dev.

IPublic CharityCorporate Governance

Risk Management

Business Ethics

Water Resource Management

Governance

high

highlow

Occupational Health & SafetyIndustry Cooperation IMPACT MATERIALITY

FINANCIAL MATERIALITY

Employee Rights & InterestsEnvironmental Compliance

Climate ChangeWaste Management

Customer ServiceWater ManagementEmployee Hiring & DevelopmentPublic Charity

Business Ethics

R&D InnovationSupply Chain Management

Corporate GovernanceEnergy ManagemenRisk ManagementBiodiversity ProtectionGreen Operations

Product Quality & Safety

? The company actively responds to government calls and ful?lls its social responsibilities with Jiuli Group as a uni?ed entity. For moreinformation on rural revitalization and social contributions, please visit the of?cial website of Jiuli Group (www.jiuligroup.com). Thecompany is not engaged in research or development in sensitive areas of scienti?c and technological ethics such as life sciences orarti?cial intelligence, and therefore does not disclose related information. As of the end of 2024, the company's accounts payable(including notes payable) do not exceed 30 billion yuan and do not exceed 50% of total assets, therefore information regarding equaltreatment of small and medium-sized enterprises is not disclosed.

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Jiuli strictly adheres to laws, regulations, and supervisory requirements. Taking the stability andsustainability of its operations as fundamental, the company integrates Party building with corpo-rate governance, leading high-quality corporate development through high-quality Party building.Meanwhile, the company continuously re?nes its governance structure, strengthens internal riskmanagement, and upholds business ethics to ensure stable and standardized operations.

Sound Governance, BuildingSolid Foundation for Development

Jiuli complies with laws and regulations such as the Company Law of the People's Republic of China, the Securities Law of the People'sRepublic of China, and the Governance Standards for Listed Companies, as well as normative documents like the Shenzhen Stock ExchangeSelf-Regulatory Guidance for Listed Companies No. 1 - Standardized Operation of Main Board Listed Companies. It has formulated theArticles of Association, established a standardized corporate governance structure and rules of procedure, and formed a system withscienti?cally effective division of duties and supervision and power balancing mechanism, thereby continuously ensuring the company'sstable governance.

STRENGTHENING CORPORATE GOVERNANCE

1718

The company has established a governance structure comprising the Shareholders' Meeting, the Board of Directors, the Board of Supervi-sors, and the management team. The Shareholders' Meeting is the decision-making body, the Board of Directors is the executive body, andthe Board of Supervisors exercises supervisory power. The Shareholders' Meeting is the highest authority in the company, composed of allshareholders, and is responsible for deliberating on major issues such as the company's annual ?nancial budget and ?nal accounting plans,major investments, and major guarantees. The Board of Directors is the company's decision-making body, accountable to the Shareholders'Meeting, responsible for executing its resolutions and reporting on its work. The Board of Directors has established a Strategy Committee, aNomination Committee, a Remuneration and Appraisal Committee, and an Audit Committee, which operate in accordance with their respec-tive detailed implementation rules to provide professional advice and recommendations for the Board's decisions.

GOVERNANCE

The domestic and international economic environments are undergoing complex and frequent changes, the industrial stainless steel tubeindustry is facing a profound structural transformation. Robust corporate governance is particularly crucial under this environment. It isnot only the solid cornerstone of sustainable development but also provides assurance on enterprises＇ effective respond to marketchanges and sound decision making. We are well aware of this, and therefore, we will make scienti?c and ef?cient construction of theBoard of Directors a strategic goal, dedicating ourselves to perfecting the Board's core role in long-term development strategy building andrisk prevention.The company place high importance on standardize the selection and performance management of its Board of Directors. We establishingand continue to re?ne the incentive and restraint mechanisms to ensure that board members can lead the company towards its estab-lished goals with a high sense of responsibility and professional competence. At the same time, we deeply integrate risk management andcompliance internal control requirements into our business processes, building a comprehensive, whole-system risk prevention and con-trol mechanism to ensure that every operational management decision is traceable, thereby enhancing the quality and effectiveness ofdecision-making.In terms of information disclosure, we adhere to the principles of truthfulness and accuracy, continuously expanding disclosure formats,increasing transparency, and strengthening investor relations management to build and maintain investor con?dence. The company strict-ly adheres to the business ethics, practicing self-discipline and self-re?ection, and is committed to fostering a clean and upright businessecosystem.During the reporting period, we upheld the principle of comprehensive risk management, closely followed changes in the external envi-ronment and our own operational realities, systematically assessed risk factors and development opportunities in the ?eld of corporategovernance, and formulated targeted response measures. Through the standardized "Three Meeting" structures (Shareholders' Meeting,Board of Directors, and Board of Supervisors), We have strengthened risk identi?cation and control, and Improved compliance and inter-nal control mechanisms. This ensures that the business management is lawful, compliant, its assets are safe and complete, and itsdisclosed information is truthful and accurate, providing solid support for the realization of the corporate governance strategic goals.

STRATEGY

SHAREHOLDERS' MEETING

BOARD OF DIRECTORS

BOARD OF SUPERVISORS

RISK

OPPORTUNITY

Impact TypeImpact DescriptionCountermeasures

If the governance structure, operational process-es, anti-fraud supervision, and risk managementare not well established and not standardized, itmay lower the quality of corporate decision-mak-ing, increase reputational loss risk and operation-al management costs, and further lead to missedmarket opportunities and damage to long-termshareholder value.

Establish an independent, diverse, and profes-sional governance structure. Strengthen function-al supervision and link remuneration to perfor-mance. Establish a corporate risk identi?cation,assessment, and warning mechanism. Strictlyobject commercial bribery, corruption, unfaircompetition, and other acts that underminebusiness ethics. Enhance information disclosureand transparency.Integrating the concept of sustainable developmentinto the company's strategy to drive long-termvalue creation. Engaging stakeholders in corporategovernance, improving the internal governancestructure, and ensuring diverse backgrounds,professional performance, and independentdecision-making.

Establish a communication platform forstakeholders to collect suggestions and opinionson corporate governance and enhance thelong-term sustainable value. At the same time,promote diversity in gender, background, andskills in board nominations. Establish an inclusivedecision-making mechanism to adapt quickly tomarket changes and conduct regular organiza-tional ef?ciency assessments through perfor-mance appraisals.

SECRETARY TO THE BOARD

GENERAL MANAGER

STRATEGY, NOMINATION, REMUNERATION & APPRAISAL, AUDIT COMMITTEES

AUDIT DEPARTMENT

OFFICE OF THE BOARD OF DIRECTORS

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IMPACT, RISK, AND OPPORTUNITY MANAGEMENTStandardizing the Governance with the "Three Meetings"

BOARD OF DIRECTORSTo ensure that the nomination and selection of members of the Board of Directors and senior management are open, transparent, compli-ant, and ef?cient, the Nomination Committee, under the Board of Directors, studies and decides on the quali?cations, selection procedures,and tenure of directors and senior management based on the company's actual situation. In the selection process, talent needs are clari?edthrough research, and candidates are widely sought through multiple channels. Subsequently, the quali?cations of the candidates arecomprehensively reviewed, and their consent for the position is obtained. Finally, a special meeting is held for quali?cation review, and aftera resolution is formed, it is ?led and submitted to the Board of Directors for approval.To ensure the Board of Directors has comprehensive and thorough views in decision making, the company values the board's independencyand diversity. During the reporting period, the company had a total of 11 directors, including 4 independent directors, accounting for 36.36%,who participated deeply and provided fair and objective decisions. To ensure the diversity of the board's composition and expression ofviews, the company measures the diversity of its board from aspects such as gender, age, cultural and educational background, professionalexperience, and skills. During the reporting period, the board had 2 female directors. Board members possess relevant industry expertise in?elds such as materials metallurgy, steel pipe manufacturing, and environmental management, while also having rich management experi-ence in areas like corporate governance, risk management, and quality management.

RISK MANAGEMENT

To promote the company's sustained, healthy, and stable development and to ensure the business achieve operation objectives, the compa-ny has established a dynamic and systematic risk assessment mechanism based on its established development strategy with the consider-ation of different development stages and business expansion realities. By comprehensively and continuously collecting relevant internaland external information, potential risks are identi?ed in a timely manner, scienti?c risk analysis is conducted. Based on the assessmentresults, the company dynamically optimize its countermeasures. This ensures that the risk management is integrated with the developmentof the company.

The company strictly follows the provisions and requirements of the Articles of Association and Rules of Procedure for the Shareholders'Meeting to standardize the convening, holding, and voting procedures of the Shareholders' Meeting, treating all shareholders equally. TheShareholders' Meeting exercises its rights and obligations granted by the Company Law of the People's Republic of China and the Articles ofAssociation by law, ensuring that all shareholders, especially small and medium-sized shareholders, are treated equally and can fullyexercise their rights. Proposals for discussion matters at the Shareholders' Meeting comply with procedural requirements, and the meetingsdiscuss on the items listed in the meeting notice in sequence.

The company has established a risk team, led by the manager of the Audit Department. The risk assessment is conducted by people fromthe company's Finance Department, Legal Affairs Department, and relevant project personnel, which is performed at ad hoc basis. Followingthe risk assessment, based on the project characteristics, project owner will be assigned, who will be responsible for the risk assessment ofthe project and providing fair and objective assessment opinions and suggestions.During the reporting period, the company has continuously re?ned its risk management system. Relying on the company's Risk Managementprocedure, it has continued to optimize the "Three Lines of Defense" risk control framework. This further clari?es the roles and responsibili-ties of the governance, management, and decision-making levels in risk identi?cation, assessment, and response, promoting the institution-alization and normalization of risk management to safeguard the company's stable development.

Holding responsibility towards all shareholders, the Board of Supervisors diligently performs its functions granted by laws, regulations, andthe company. It supervises major corporate matters, related-party transactions, ?nancial status, and the performance of directors and seniormanagement, effectively safeguarding the legal rights and interests of the company and all its shareholders.

To improve the remuneration and performance evaluation system for directors, supervisors, and senior management, the company hasestablished and implements the Remuneration Management System. The Nomination, Remuneration, and Appraisal Committee under theBoard of Directors is responsible for the performance appraisal of the company's directors and senior management. During the reportingperiod, the remuneration of the company's directors, supervisors, and senior management was determined according to the company'suni?ed remuneration management system, and the allowance standards for directors and supervisors were approved by a resolution of theShareholders' Meeting.

2024

BOARD OF DIRECTORS MEETINGS HELD:7TIMES BOARD MEMBER ATTENDANCE RATE:100%

2024Board of Supervisors Meeting Held:5 times Members of the Board of Supervisors: 3Employee representatives on the Board of Supervisors: 1

2024Remuneration Committee Meetings Held:1time

2024

Shareholders' Meetings Held: 2Times

BOARD OF SUPERVISORS

SHAREHOLDERS' MEETING

RISK IDENTIFICATION AND ASSESSMENT

RISK MANAGEMENT SYSTEM

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THE "THREE LINES OF DEFENSE" FOR RISK CONTROL

INTERNAL CONTROL AND COMPLIANCE

The company has continuously improved its internal control management system by establishing a three-level internal control auditmanagement structure consisting of the Board of Directors, the Audit Committee, and the Audit Department. In terms of routine audits, itregularly conducts self-assessments of various business lines, reports audit progress quarterly, and submits a comprehensive internal auditreport at least once a year. In terms of special audits, in 2024, the Audit Department focused on key areas and conducted audits on CustomsAEO certi?cation management, material management, factory entry and exit safety management, logistics and transportation management,and project establishment and construction management, and proposed speci?c management recommendations.

The company continuously improves its internal control and compliance management system. The overall internal control system iscomplete and can adapt to the current management needs. It plays a good management and control role in key areas such as businessmanagement, related-party transactions, external guarantees, major investments, use of raised funds, and information disclosure. At thesame time, the company has established a sound internal control and supervision mechanism covering all business processes. Relying ontax management and internal control audit functions, it strengthens compliance review and supervision, laying a solid foundation forcompliance management.

ANTI-FRAUD MANAGEMENT

The company has built an anti-fraud management system composed of Board of Directors ,Management, Audit Department and all employ-ees, where all entities work in synergy to form a tight prevention and control network. The Board of Directors promotes anti-fraud culturewithin the company and demand the continuous improvement of the internal control mechanism. The management is responsible forestablishing the anti-fraud system, setting up convenient and effective whistleblowing channels, and strengthening the ability to identifyfraudulent behavior and improve handling process. The Audit Department oversees anti-fraud work as part of their ongoing responsibility.It is responsible for coordinating the investigation of anti-fraud incidents and coordinating involved parties to implement control measuresto ensure that problems can be discovered and handled in a timely manner. All employees are expected to adhere to professional ethics.Any suspicious matters should be reported through the compliant channels to jointly create a clean and upright atmosphere within thecompany.

Honesty is the foundation of self-establishment, and integrity is the foundation of business success. Jiuli strictly complies with laws andregulations such as the Anti-Monopoly Law of the People's Republic of China, the Supervision Law of the People's Republic of China, and theAnti-Unfair Competition Law of the People's Republic of China. We continuously improve the business ethics system, constantly re?nes theanti-fraud and whistleblowing mechanisms, strengthen employee integrity education, and promote the concept of fair competition. Westrive to create an honest, law-abiding, fair, and transparent business environment, ensuring high-quality development of the enterprise.

BOARD OF DIRECTORSAUDIT COMMITTEE

AUDIT DEPARTMENT

REPORT

SUBMIT ANNUAL

AUDIT PLAN

sits under the Board of Directors, supervises thecompany's internal audit system and its imple-mentation, is responsible for communicationbetween internal and external audits, reviews thecompany's internal control system, etc.sits under Audit committee, staffed with 5 auditexperts. Responsible for supervising and inspect-ing the effectiveness of the design and operationof the company's internal controls.

INTERNAL CONTROL AUDIT MANAGEMENT STRUCTURE

In accordance with policy regulations and supervisory requirements such as the Basic Norms for Enterprise Internal Control and theShenzhen Stock Exchange Guidelines for Standardized Operation of Listed Companies (Revised in 2020), and in conjunction with the compa-ny's management practices, the company has constructed a self-evaluation system for the effectiveness of internal control that covers alllevels and departments. Utilizing this system, we have comprehensively evaluated the design and operational status of internal controls asof the end of this reporting period. For issues and potential risks discovered during the process, we have identi?ed corrective measures andthe responsible departments and deadlines to ensure that problems are addressed and closed in a timely manner.

The company strictly complies with national tax laws and regulations. We have further revised the company's Tax Management Policy,standardized tax management responsibilities and standards, strengthened the company's various tax management tasks, ensured lawfuloperation and honest tax payment, and prevented and reduced tax management risks. In 2024, the company was not involved in any tax-re-lated litigation or penalty events.

【HONORS】From 2015 to 2024, Jiuli Group was consecutively honored as a "Golden Elephant" Enterprise and a Major Taxpayerin Huzhou City.

FIRST LINEOF DEFENSE

THIRD LINEOF DEFENSESECOND LINEOF DEFENSE

All business departmentsKey performance management

departments

The Board's Audit Committee

and the Audit Department

INTERNAL CONTROL AUDIT

INTERNAL CONTROL EVALUATION

TAX MANAGEMENT

ENSURING INTEGRITY ACROSS THE BUSINESS

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INVESTOR RELATIONSWe are committed to continuously improves its business integrity management system by formulating and implementing the Anti-Fraud andWhistleblowing Policy to comprehensively regulate employee’s professional conduct and prevent violations that harm the company'sinterests and seek personal gain through fraudulent means. In 2024, the company continued to implement internal policies such as the"Regulations on Employee Integrity and Professional Practice" and the "Several Provisions on Civilized and Thrifty Celebration of HappyEvents." All employees and related parties are required to sign the "Employee Integrity and Self-Discipline Commitment Letter" and the"Family Assistance in Integrity Commitment Letter for Employees in Important/Key Positions" to strengthen the sense of integrity responsi-bility in a contractual form. In the annual performance review of employees in key positions and mid-to-high-level management, a specialsection on integrity and professional practice has been added, and it serves as an important reference for performance appraisal, appoint-ment, promotion, rewards, and discipline. At the same time, the company has further optimized the employee integrity record managementsystem and continued to promote the implementation of the "integrity interview", continuously strengthening the management andimproved guidance of employee’s business integrity.In addition, the company places great importance on building integrity awareness and trainings. Through various forms such as organizingthe viewing of integrity education ?lms, holding forums, and carrying out themed activities. This helps the employees to embed the conceptof integrity into the daily work and life to continuously enhancing the integrity awareness of all staff, so that the culture of integrity is deeplyrooted in people's hearts and becomes the intrinsic spiritual driving force for the enterprise's development.

The company adheres to the Anti-Unfair Competition Law of the People's Republic of China, conducting business activities based on theprinciples of voluntariness, equality, fairness, and good faith. It actively maintains a positive market environment of fair competition and?rmly opposes any form of unfair competition and monopolistic behavior.

We understand the importance of effective communication with investors for the company's development. To this end, the company hasestablished a comprehensive Investor Relations Management Policy to strengthen communication with investors, improve the transparencyof information disclosure to effectively protect the legal rights and interests of investors, especially public investors. The company activelypresents major matters, development strategies, operating performance, and corporate culture to investors through various methods suchas regular and ad-hoc reports, annual report performance brie?ngs, shareholder meetings, the company website, one-on-one communica-tion, telephone consultations, on-site visits and research, analyst meetings, and roadshows. In terms of information disclosure, we adhereto the principles of truthfulness, accuracy, completeness, and timeliness, conducting comprehensive and detailed disclosure of informationthat can be made public. The company ensures that all disclosed information has undergone rigorous review, not only re?ecting the compa-ny's current situation but also indicating its future development direction, thereby helping investors to better understand the company andmake informed investment decisions.

A company’s sustainable development is inseparable from the deep concern for and practical protection of investor interests. While pursu-ing long-term development, we have always considered the interests of investors as paramount importance, making it the fulcrum of ourcorporate strategy and the direction of our value system. In 2024, on the one hand, the company has conducted share buyback, showing tothe market our con?dence in the company future. On the other hand, the company formulated an active dividend distribution plan, decidingto distribute a cash dividend of 0.97 yuan (tax included) per share to all shareholders, ensuring that investors can bene?t from the company'sgrowth. By building a comprehensive investor return system, the company has achieved an organic combination of capital operations andcash returns.

CONDUCTING BUSINESS INTEGRITY EDUCATIONIn February 2024, to further strengthen Party and governance integrityeducation, the company specially invited Mr. Xu Weiming, President of theHuzhou Economic Crime Investigation and Prevention Association, to givea special lecture. President Xu, citing classic cases, deeply explained theserious consequences of corporate duty-related crimes and the key pointsfor preventing legal risks. He also proposed practical prevention andcontrol suggestions, providing important guidance for the company topromote the construction of a clean culture.

Whistleblowing Hotline：0572-2539110Fax：0572-2539110Whistleblowing Address：Business Integrity Management Committee1899 Zhongxing Street, Wuxing District, Huzhou City

Email：jbzx@jiuli.comPostal Code：313028

WHISTLEBLOWINGCHANNELS

INVESTOR COMMUNICATION CHANNELS:

Consultation Hotline:0572-2539041 Consultation Email: jlgf@jiuli.com

2024

TOTAL CASH DIVIDEND TO ALL SHAREHOLDERS (EXCLUDING BUYBACKS)：920,168,522.71RMB

TOTAL AMOUNT OF SHARE BUYBACKS AS A FORM OF DIVIDEND：

383,031,025.28RMB

FAIR COMPETITION

We hold ourselves to the principle of "no miss to investigate any allegations" and continuously improves the whistleblowing mechanism.Whistleblowers can report in person or anonymously through written correspondence, letters, faxes, face-to-face meetings, phone calls, oremails. Upon receipt, the company will conduct an investigation in accordance with the law and coordinate with relevant departments toensure fair and ef?cient handling, with feedback provided within 15 working days. The company strictly treat the whistleblowing informationas con?dential, effectively protecting the legal rights and interests of whistleblowers and creating a safe and transparent supervisoryenvironment.

WHISTLEBLOWING PROCEDURE

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The company continuously strengthens its self-regulatory management and enhances the scienti?c nature of its governance. It has setmanagement goals and achieved certain progress in dimensions such as board construction, risk internal control mechanisms, anti-corrup-tion and integrity, investor communication, and information disclosure, steadily enhancing the effectiveness of its corporate governance.INDICATORS AND GOALS

Directors, supervisors, and senior management must undergo performance appraisalsby the Nomination, Remuneration, and Appraisal Committee. Their allowancestandards are approved by the Shareholders' Meeting, and their remuneration isuniformly determined by the company's remuneration management policy.Established Risk Management Department . Members include the audit, ?nance, andlegal departments, as well as relevant project personnel, to coordinate the risk assess-ment and control for the entire project lifecycle.The overall internal control system is complete and can meet to the current manage-ment needsThe company has not had any incidents of unfair competition or any public litigationor penalties resulting from corruptions.Held 1 performance brie?ng session, received over 200 institutional research visits,received 38 investor questions, and answered 38 questions, with a response rate of100%.

Scienti?c and Ef?cient Board of Directors ConstructionConstruction of Risk Assessment and Control MechanismImprovement of Compliance andInternal Control SystemStrengthening of Anti-corruptionand Integrity BuildingStrengthening Investor Communicationand Information Disclosure

MANAGEMENT GOAL2024 PROGRESS

Jiuli Special Material deeply implements the philosophy of "Red does not rust, Steel is toughened by repeated tempers" as our main line ofwork, anchoring the goal of "Staying committed and enhancing Party consciousness, forging ahead for development". we vigorously promotethe "Strengthens the Red Foundation" action, holistically advance ?ve major special actions: Ideological Strength, Solid Foundation, Innova-tion Leadership, Humanistic Well-being, Integrity Culture, continuously improving the new model of two-way empowerment between Partybuilding and business management.

PARTY BUILDING LEADS DEVELOPMENT

EDUCATIONAL CAMPAIGN IN RESPONSE TO THE CALL FROM THE JIULI GROUP PARTY COMMITTEE

In February 2024, the company actively responded to the call of the Jiuli Group Party Committee, taking "Forge Our Soul ToEnhance Party Consciousness, Uphold Fundamental Principles and Drive Development through Innovation,"as the theme,and organized the "First Party Lecture" to systematically study and implement Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era.

第一堂党课主题教育活动

The company has always closely followed the general requirement of the Jiuli Group Party Committee to "Forge Our Soul To Enhance PartyConsciousness, Uphold Fundamental Principles and Drive Development through Innovation." We continuously promote knowledge buildingof the Party members and enhance their Party consciousness. By organizing centralized study sessions on Xi Jinping Thought on Socialismwith Chinese Characteristics for a New Era and through various forms such as thematic Party Day activities and special Party lectures, weencourage Party members to learn, think, and practice, using learning to promote action, further solidifying the ideological foundation, andenhancing their sense of purpose and service.

IDEOLOGICAL STRENGTH

The company proactively implements the Jiuli Group Party Committee's responsibility transmission mechanism for Party building. By formu-lating the "Responsibility Letter for Party Branch Work Assessment," it includes Party building work as part of the business performancereview. The company establishes Party member responsibility zones in key areas, and ensures the team stability in key positions. At the sametime, the company's Party branches created "Pioneer Party Member Posts" and the "Pairing and Assistance" program to fully leverage theexemplary role of Party members in technical breakthroughs and management optimization, promoting the transformation of organizationaladvantages into development effectiveness.

SOLID FOUNDATION

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Guided by the "Dual Carbon" strategy and centered on full life-cycle green and low-carbon management, Jiuliis deeply engaged in green manufacturing and energy transformation. The company reduces carbon emis-sions and energy consumption by improving its environmental management system and optimizing energyuse, thereby increasing our resilience facing climate change challenges and opportunities. At the same time,the company properly handles pollutants and waste in accordance comply with regulatory requirements,continuously striving to mitigate its negative environmental impact and steadily advancing on the path ofgreen development.

Low-Carbon and Environmental ProtectionBuilding a New Chapter of Sustainability

In light of the global climate change, we have developed deep understanding of the importance of climate change for strategic planning andbusiness operations. The company actively responds to "Dual Carbon" policy that is strategically deployed national wide by continuouslyimprove its climate risk management system, and constructing a scienti?cally sound plan and implementation strategy for green andlow-carbon development. At the same time, we comprehensively examine the opportunities and challenges brought by climate change, fullsteam ahead to drive the transition to green and low-carbon operation, and actively responding to the various challenges brought by climatechange, with the aim of achieving sustainable development in the new green economic landscape.

ENHANCING CLIMATE RESILIENCE

2930

The company has established a low-carbon working group directly led by the General Manager, which coordinates various workstreams suchas energy conservation and emission reduction, energy optimization, safety and environmental protection, and technology research anddevelopment. At the same time, the company collaborates with external research institutions and industry experts to jointly formulate theenterprise's green and low-carbon development plan, ensuring that it is forward-looking and feasible.

GOVERNANCE

The company incorporates science based carbon reduction into its core strategy, comprehensively reviewing the list of carbon reductiontechnologies for the steel industry. The company has developed a low-carbon and energy-saving development plan centered on the coreideas of improving energy ef?ciency, optimizing energy structure, building a carbon management system, and tracking product carbonfootprints. We strive to become the industry benchmark for green development by 2025. By 2030, we aim to achieve the "carbon peak", reducecarbon emission intensity by 2.23% and carbon footprint by 4.07% compared to 2023 and “Net Zero” by carbon offsetting and purchasinggreen electricity purchasing.

STRATEGY

JIULI LOW-CARBON WORKING GROUP

GENERAL MANAGER

LOW-CARBON WORKING GROUP

MANAGEMENT R&D CENTER

SAFETY &ENVIRONMENTAL DEPARTMENT.

EXTERNALRESEARCH INSTITUTE

EXTERNAL EXPERTSPUBLICFACILITIES DEPARTMENT

Low-Carbon and

Energy-Saving Development Plan

Improve energy ef?ciency for energy conservation.Clean production to reduce pollutant emissions.Strengthen comprehensive resource utilization to continuously promote circular development.Reduce greenhouse gas emissions and actively promote a low-carbon transition.Enhancing technological level to drive green innovation.

In the light of intensifying global climate change, we pay close attention to the actual and potential impacts of climate change on theproduction, operations, and value chain. Based on the type of risk and its evolution over time, and in accordance with the actual conditionsof its operating locations, we have identi?ed several climate-related risks that may affect the production and operations, and has formulatedcorresponding mitigation measures. At the same time, we actively seize the opportunities brought by climate change and are graduallybuilding development model that is adaptive to the climate change.

Risk TypeTime FramePotential Risk DescriptionMitigation Measures

Chronic Risk

Acute Risk

PHYSICAL RISKTRANSITION RISK

Technology Risk

Market Risk

Reputation Risk

Policy & Legal Risk

Rising temperatures and sea levels mayweaken foundation stability, damagingthe infrastructure of the East Chinacoastal plantThe production base in East China mayface severe climate change and extremeweather events such as typhoons andheavy rainfall, which could lead tofactory shutdowns, equipment damage,and supply chain disruptions

Traditional high-carbon productionmethods may be restricted, while rapidtechnological advancements in theindustry are expected to intensifypressure on R&D investments.

With the tightening of carbon emissionpolicies, the EU’s Carbon Border Adjust-ment Mechanism (CBAM) is expected tohave potential impact for productioncapacity and exports.

Establishing weather forecasting andearly warning systems, enablingproactive preparation with reference tometeorological data.Key equipment to be waterproof andmoisture-proof; regularly dredge andinstall new rainwater drainage pipelinesDiversify supply chain layout.

Market preference for green andlow-carbon products may lead to adecline in the competitiveness oftraditional products, potentiallyresulting in the loss of some marketshareRaw material prices volatility maydirectly affect production costsRegulatory requirements are becomingincreasingly stringent, and variousstakeholders are paying more attentionto corporate sustainability. If a compa-ny's acts slowly in green transitionprocess, it will face potential risks suchas damage to its brand image

Pay close attention to disclosurerequirements related to sustainabledevelopment and climate change.Ensure compliance and regularlydisclosing information and expandingexternal communication channels onsustainable matters.

Develop green and low-carbon steelproducts, achieve a reduction in carbonemission intensity in long-processproduction, and enhance productcompetitiveness.Establish long-term supply contractswith partners and improve internalinventory management to reduce risks.

Set clear emission reduction targets andplansEstablish a carbon tariff working groupto address the challenges of carbontariffs on exported products.Continuously carry out product carbonfootprint assessments to promotecarbon footprint management acrossthe value chain.

Strengthening plant constructionstandards, formulating emergencyplans, reducing risk exposure of produc-tion facilities, and enhance disasterresilience

Focusing on the development oftransitional technologies and increaseinvestment in green process R&D, suchas ultra-low CO2 emission steelmakingtechnologies and hydrogen-basedsteelmaking to proactively position forpotential opportunities.

Mid- toLong-term

Mid- toLong-term

Mid- toLong-term

Mid- toLong-term

Short- to

Mid-term

Short- to

Mid-term

CLIMATE RISK IDENTIFICATION AND RESPONSE

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Opportunity TypeTime FramePotential Opportunity DescriptionCountermeasures

Policy-DrivenOpportunity

Long-term

Market Opportunity

Energy Optimization

Opportunity

TechnologicalInnovation Opportunity

The "dual carbon" policies favor greenfactories and low-carbon technologicaltransformation projects. Breakingthrough international green tradebarriers can increase market share inthe EU

The value chain favors green, low-car-bon supply partners. Clear marketpreference for low-carbon productsmeans incremental market opportuni-ties

Promote a circular economy and reducecosts through measures like scrap steelutilization and metal recycling, andincrease production ef?ciency throughprocess improvements and digitalenergy management

The domestic substitution of newmaterials has become a growth engine,and digital production promotesautomation and production ef?ciency

Accelerate the R&D of low-carbonproduct lines such as hydrogen ornuclear power tubes, and actively obtainproduct carbon footprint certi?cationand/or low-carbon certi?cationPromote the joint construction of a fulllife-cycle low-carbon managementsystem in the supply chain, prioritizingthe procurement of low-carbon rawmaterialsPhase out high-energy-consumptionproduction technology and equipment,explore traditional energy substitution,and promote intelligent production lineconstructionDevelop a circular economy, increaserecycled steel content and resourceregeneration and reduce raw materialenergy consumption

Keep updated with domestic andinternational carbon managementpolicies and regulations, comply withrelevant regulatory requirements, andstrengthen internal management

Strengthen R&D in low-carbonmetallurgy and clean energy utilizationtechnologies, focusing on nuclearpower and new energy tubes toenhance competitiveness in high-endmarkets.

Mid-term

Mid-term

Mid-term

CLIMATE OPPORTUNITY IDENTIFICATION AND RESPONSET

We grasp the opportunity of the low-carbon transition by systematically formulating six major "low-carbon actions," focusing on three maindirections: energy ef?ciency improvement, energy structure transformation, and strengthening carbon management, all driven by digitaliza-tion and clean technology to promote full life-cycle emission reduction. In terms of energy ef?ciency, we optimize equipment operatingparameters, strengthen regular maintenance, and achieve precise energy consumption control through an intelligent carbon managementsystem. In terms of energy structure transformation, we are increasing the proportion of renewable energy sources such as solar and windpower, and implementing clean transformations for transportation vehicles and factory machinery. At the same time, the company isbuilding a comprehensive carbon management system that covers carbon emission accounting, emission reduction target setting, anddynamic monitoring, forming a closed-loop carbon management mechanism from production to operation, systematically promoting thecompany's green transformation.

IMPACT, RISK, AND OPPORTUNITY MANAGEMENT

JULI’S SIX MAJOR LOW-CARBON ACTIONSEQUIPMENT OPERATIONOPTIMIZATIONREGULAR EQUIPMENTMAINTENANCEDIGITAL TRANSFORMATIONOF ENERGY AND CARBONMANAGEMENT

MAJOR LOW-CARBON ACTIONS

I

MPR

OVING

ENERGY

USE

CARBON

MANAGEMENT

LOW-CARBON

ENERGY

E

FFI

C

IENCY

EFFICIENCY

STRUCTURE

S

YSTE

M

C

O

N

STRUCTION

At the same time, we have established a carbon tariff reporting task force to proactively address the challenges brought by global climatechange, especially international carbon barriers such as the EU's Carbon Border Adjustment Mechanism (CBAM). The carbon tariff reportingtask force is composed of cross-departmental members responsible for compliant reporting for the EU's CBAM, production carbon emissionveri?cation and data reporting, product carbon footprint calculation, and report preparation. Additionally, the company has introducedorganizational carbon and product carbon management software systems to improve the accuracy and ef?ciency of carbon emissionaccounting and to achieve online veri?cation of carbon data, ensuring compliance for international market access.

To integrate climate change into our development strategy and governance system, we tracks national policy trends and combines them withthe business and operational conditions to develop a carbon neutrality roadmap. In 2024, we have made certain progress in emission reduc-tion. In addition, the company has established a regular annual carbon veri?cation plan to improve carbon data management, providing afoundational support for achieving long-term carbon reduction goals.

INDICATORS AND GOALS

SHORT-TERM

THE COMPANY DEFINES TIME HORIZONS AS SHORT-TERM (1 TO 3 YEARS), MEDIUM-TERM (3 TO 5 YEARS), AND LONG-TERM (OVER 5 YEARS).

GREEN ELECTRICITYPURCHASECLEAN ALTERNATIVEFOR MOBILE SOURCESCARBON MANAGEMENTSYSTEM CONSTRUCTION

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MANAGEMENT GOAL2024 PROGRESS

he company has reduced its cumulative carbon emissions to 82,842 tons throughmicro management of energy consumption, optimization of production processes,and improvement of equipment ef?ciency. It has achieved an 11% reduction ingreenhouse gas emission intensity through energy conservation, emission reduc-tion, and green transformation.The company has obtained a series of carbon labels. Based on total carbonemissions assessment, the company currently holds a "low-carbon" level label. Ithas also obtained a level 3 ef?ciency label, which is considered a medium level.。

As of the end of 2024, the company has conducted greenhouse gas emissionaccounting for nine consecutive years. Additionally, the company has established asound carbon data management system to provide data support for formulatingscienti?c emission reduction strategies.

Create a carbon neutrality roadmapto build a "dual carbon" ?ag factoryand lead the industry to transforminto a green, and low-carbonoperation.

Actively promote Carbon FootprintVeri?cation and regularly compileprofessional greenhouse gasemission reports

INDICATOR UNIT202420232022

Direct (Scope 1) GHG EmissionsIndirect (Scope 2) GHG EmissionsTotal GHG Emissions (Scope 1 and 2)

GHG Emission Reductions

TCOETCOETCOETCOE/10,000 RMB

TCOETONS / 10,000 RMB

22,67678,227100,903

0.092

991.86

0.41

20,24873,39293,640

0.109

996.57

0.46

18,13864,91783,055

0.127

10,294

0.42

GHG Emission Intensity (Scope 1 and 2) (per unit of operating revenue)

Carbon Emissions per Unit of IndustrialValue Added

GREENHOUSE GAS EMISSIONS IN THE LAST THREE YEARS

IN 2022, 2023, AND 2024, CHINA'S ELECTRICITY EMISSION FACTORS DECREASED SEQUENTIALLY, AT 0.7035, 0.5703, AND 0.5366 TCOE/MWH,HE COMPANY'S TOTAL GREENHOUSE GAS EMISSIONS HAVE INCREASED WITH THE GROWTH IN PRODUCTION CAPACITY AND OUTPUT, BUT THE GREENHOUSE GAS EMISSION INTENSITY SHOWS A DOWNWARD TREND DUE TO IMPROVED ENERGY EFFICIENCY AND THE PRODUCTION.

We continuously optimizes our energy management system by improving the energy management regulatory framework and strengtheningintelligent monitoring and management. Relying on energy structure transformation and innovative technological applications, we furtherprogress in energy transition and improve energy ef?ciency. Build on above, the company sets scienti?cally sound energy-saving andconsumption-reduction targets, promotes industrial upgrading and green transformation, and injects lasting momentum into sustainabledevelopment.

OPTIMIZING ENERGY USE

The company strictly follows national and industry-related standards, has formulated theEnergy Saving and Emission Reduction Management Policy and Energy Management Policy ,etc. and has built a clean and ef?cient energy system. Through promoting renewable energysubstitution, improving energy ef?ciency, and digital management all together, we havesigni?cantly reduced the carbon footprint while reducing production costs, continuouslydriving the green development and environmental friendliness in our operation. During thereporting period, we conducted an energy audit and obtained ISO 50001 Energy Manage-ment System certi?cation.

ENERGY MANAGEMENT SYSTEM

We actively promote the substitution of clean energy use. Through measures such asbuilding rooftop photovoltaic power stations, deploying green hydrogen production andenergy storage projects, and bulk buying of green electricity and certi?cates, it systematicallyadvances clean energy substitution. By the end of 2024, the company has cumulatively usedapproximately 90 million kWh of green electricity and holds 1,111 green certi?cates. Theproportion of energy from photovoltaics and lique?ed natural gas has increased to 15% and60% respectively. Compared to 2023, the natural gas consumption per ton of steel producedhas decreased by 5.0%, and electricity consumption per ton of steel produced has decreasedby 2.13%. At the same time, through technological innovation, the company has builtmultiple all-hydrogen protective atmosphere heat treatment production lines and vacuumheat treatment production lines in its core seamless steel pipe park, signi?cantly increasingthe use of clean energy.

DEEPENING THE ENERGY TRANSITION

ISO 50001 ENERGYMANAGEMENT SYSTEM CERTIFICATION

JIULI DEPLOYS PHOTOVOLTAIC POWER STATIONS AND ENERGY STORAGE PROJECTSJiuli has built a solar-storage integrated project with a total installed capacity of 19.8 MWh of photovoltaic power stations and a4MW/8MWh energy storage system. It absorbs and stores excess electricity generated by photovoltaics during the day or electricityfrom the grid during low-load periods at night, achieving the goal of peak shaving and valley ?lling. This reduces greenhouse gasemissions, decreases reliance on the municipal grid, and increases the proportion of clean energy. As of December 2024, the totalinstalled capacity of the solar-storage integrated project reached 26 MW, with an annual power generation of approximately 26million kWh. This has reduced electricity costs by 23%, with photovoltaic power accounting for 15.6% of energy consumption andreducing carbon dioxide emissions by approximately 16,310 tons per year.

ROOFTOP SOLAR PANELSENERGY STORAGE SYSTEM INTERFACE

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We actively conduct energy-saving technological transformations, updating and renovatingenergy-consuming equipment, and establishing a phase-out mechanism for high-ener-gy-consumption equipment. We have carried out comprehensive transformations ontransformers, motors, lighting systems, and special equipment. As of the end of 2024, wehave phased out 5 transformers and 119 motors, completed lighting retro?ts for about1,000 lamps, and replaced equipment such as forklifts (from oil to electric). This results inan annual electricity saving of approximately 2.84 million kWh, equivalent to 809 tons ofstandard coal.

Phased Out

5transformers

Phased Out119motors

Annual Electricity Saving~2.84million kWh

Equivalent To

809tons

Lighting Retro?ts~1,000lamps

TECHNICAL UPGRADE TO HEAT PIPE STEAM GENERATORSIn October 2024, due to the shutdown of theNantaihu Thermal Power Plant, we havepurchased high-ef?ciency natural gas heatpipe machines to replace the traditionalcoal-?red boilers for steam supply, achiev-ing independent steam production. Allemissions meet environmental protectionrequirements. As of the end of 2024, thistechnical modi?cation project hadproduced 19,500 tons of steam.

HEAT PIPE STEAM GENERATOR INTERFACE

The company has deployed an intelligent energymanagement system based on the industrialinternet. By constructing a three-level meteringnetwork, it achieves ?ne-grained monitoring ofmajor energy-consuming equipment. This intelli-gent energy system has functions such asreal-time data collection, dynamic energyconsumption analysis, and energy ef?ciencydiagnosis. It has enabled precise identi?cation ofenergy-saving potential through big data analysis,optimization of operational and production plansbased on data analysis, and improvement ofenergy management ef?ciency, providing ascienti?c basis for formulating energy-savingplans and strategies.

ENERGY MONITORING PLATFORM

As of the end of 2024, the company has obtained a series of honors in green development:

Since 2018, it has been awarded the title of "Green Factory" by the Ministry of Industry and Information Technology.The solar-storage integrated project was selected as a "2023 Carbon Ef?ciency Forerunner Case" by the China Associationof Industrial Energy Conservation and Clean Production.In 2023, it was awarded the title of "Green Product Design Demonstration Enterprise" by the Ministry of Industryand Information Technology.

We have built clear energy-saving and emission reduction roadmaps and targets that covers the entire life cycle of design, R&D, production,packaging, and sales with the emphasis on promoting strategic measures such as green product design and process R&D, green andenvironmentally friendly project construction, introduction of advanced energy-saving equipment. We actively promoting energy-savingtechnological transformations. Guided by the goal of creating a "zero-carbon factory," we aim to achieve the following targets by the end of2027:

ENERGY SAVING TARGETS

ENERGY SAVING TARGETS

Reduce energy consumption per unit of product (industrial value-added) by 13%, from the current 0.15 tons of standard coal per 10,000 RMB to 0.13 tons of standard coal per 10,000 RMB.Reduce raw material consumption per unit of product by 7%, from the current 1.2 tons per ton of output to 1.1 \tons per ton of output.Increase the proportion of renewable energy use by 10%, from the current 6% to 16%.

ItemUnit202420232022ElectricityNatural GasSteamEnergy Consumption

Industrial Value Added

10,000 kWh10,000 m?GJ10,000 RMBtons of standard coaltons of standard coal

14,8811,048114,467244,678.360,252.57

0.25

12,972

99,414204,93852,742.52

0.26

11,400

84,773197,55846,379.86

0.23

Omprehensive EnergyConsumption (Equivalent Value)Energy Consumption per Unitof Industrial Value Added

ENERGY CONSUMPTION IN THE LAST THREE YEARS

HUZHOU CARBON ACCOUNT PLATFORM- JIULI ENTERPRISE CARBON ACCOUNTINFORMATION

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Jiuli is committed to the ef?cient recycling and utilization of water resources in its production processes to reduce water consumption, whilealso eliminating water waste at the source. The company has established a full-process pollution prevention and control mechanism, imple-menting ?ne-grained control over wastewater, waste gas, solid waste, and other pollutants generated during production. It continuouslyimproves its waste management system to ensure that pollutant emissions meet standards and that waste is disposed of safely and incompliance with regulations.

PROMOTING CLEAN PRODUCTION

3738

ENVIRONMENTAL EMERGENCY RESPONSE MANAGEMENT PLAN

When a pollution accident or other environmental emergency occurs, each factory/depart-ment should immediately take emergency measures to prevent the accident from escalat-ing, contain the spread of pollution, and reduce or eliminate the impact of the accident.Within 2 Hours of an Incident Each factory/department shall ?ll out the "EnvironmentalAccident Report Form" and report it to the company's Safety and Environmental Departmentand the Head of Business Division. Each factory/department shall actively assist in theinvestigation and handling. In the event of a major personal injury accident or a majorenvironmental pollution accident, it must be reported to the General Manager and simulta-neously reported to the local environmental management department.The Safety and Environmental Department will organize a review meeting with relevantpersonnel to analyze the environmental accident, identify the cause, and propose preven-tive measures and make decisions to the responsible units and individuals. Fill out the"Environmental Accident Investigation and Handling Report Form" and submit it for approvalby the Deputy General Manager of Jiuli The investigation report for major personal injuryaccidents or major environmental pollution accidents shall be submitted for approval by theGeneral Manager of Jiuli.After an Incident Ends

Within 2 Hours of an Incident

As the Incident Occurs

JIULI CONDUCTS ENVIRONMENTAL EMERGENCY RESCUE DRILL IN RESIDENTIAL AREAIn March 2024, Jiuli Special Materials held an environmental emergency rescue and evacuation drill. This drill simulated acomposite environmental event of a water pipe rupture caused by a ?re, leading to smoke diffusion. The entire drill wasconducted with live-action. On-site safety personnel quickly activated the emergency plan and organized personnel evacua-tion; ?re?ghters simultaneously carried out ?re extinguishing and water leak control; other personnel urgently closed thesewage system to prevent pollutants from escaping; the maintenance team rapidly repaired the damaged pipeline; therescue team set up clear zone on the smoke diffusion area, removed contaminated materials and equipment to prevent thespread of pollution. After the drill, the surrounding air quality, pH value of surface water, and water quality of rainwater wellswere comprehensively tested to ensure environmental safety. This drill effectively tested the ability of multiple departmentsto coordinate in handling sudden environmental incidents and strengthened employees' awareness of environmental safetyand compliance.

ENVIRONMENTAL EMERGENCY RESCUE AND EVACUATION DRILL

We place high importance on the sustainable use and management of water resources. In accordance with laws and regulations such as theWater Law of the People's Republic of China and the Law of the People's Republic of China on the Prevention and Control of Water Pollution,we have established a sound water resource management system. In 2024, a water-saving target was set to reduce the unit product waterintake from the current 7.4 tons/ton of output to 6.6 tons/ton of output by 2027, a reduction rate of 10%.We continuously improve production water ef?ciency. We have invited industry experts and partner universities such as Zhejiang Universityand Zhejiang University of Technology to develop plans for water circulation and wastewater utilization. It has successfully improved thecooling circulating water process in the industry park, increasing water resource utilization ef?ciency and alleviating local water pressure. In2024, the company's total water intake was 861,601 tons, a decrease of 11,828 tons from 2023. In 2024, the company's water use intensity was

8.4 tons per ton of output, showing a year-on-year decrease in water resource use intensity from 2022 to 2024.

WATER RESOURCE MANAGEMENT

The company strictly complies with the Environmental Protection Law of the People's Republic of China, the Environmental Impact Assess-ment Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of AtmosphericPollution, the Law of the People's Republic of China on the Prevention and Control of Water Pollution, the Law of the People's Republic ofChina on the Prevention and Control of Soil Pollution, the Law of the People's Republic of China on the Prevention and Control of Environ-mental Pollution by Solid Wastes, and other relevant environmental laws, regulations, and local environmental compliance managementsystems. We fully adherent to the concepts of green development and ecological civilization, constructing an environmental compliancesystem to prevent and resolve environmental protection risks.The company has improved its environmental safety management system, formulating the Compilation of Enterprise Management policy(Safety and Environmental Protection Volume), which includes the Environmental Protection Management policy and the Safety HazardInvestigation and Governance policy. At the same time, based on ISO 14001:2015 Environmental Management Systems - Requirements withGuidance for Use, we have compiled the Environmental, Occupational Health and Safety Management Manual, comprehensively standardiz-ing environmental management activities from the perspectives of management responsibilities, policies and objectives, and risk control.We have established an environmental management responsibility system involving the whole company, building an environmental compli-ance management structure where General Manager takes full responsibility, actions are cascaded and implemented through each levelwith full employee participation. As the primary person in charge, the General Manager coordinates environmental strategies and resourceallocation. The deputy general manager in charge is responsible for daily execution. The chief engineer provides technical support. Eachbusiness unit/plants manages the implementation within their remit. The safety and environmental department provide supervision. Teamleaders are responsible for implementing measures on the front line. Each employee is expected to ful?ll their responsibilities. This systemensures environmental compliance from decision-making to operation, ultimately achieving the coordinated development of environmentalprotection and production operations.We continue to improve the environmental emergency management systems. Based on the implementation of the environmental emergen-cy plan, we conduct a retrospective evaluation of the environmental risks and emergency plan at least once every three years and revises itin a timely manner according to changing circumstances. In February 2025, the Wuxing branch made revisions to the Emergency Plan forEnvironmental Incidents (V4.0) to ensure that in the event of an environmental emergency, all emergency work can be initiated quickly andexecuted ef?ciently and orderly, avoiding and minimizing the damage and harm caused by the incident to the environment.In 2024, thecompany did not receive any major administrative penalties from environmental authorities or face criminal prosecution for environmentalincidents.

ENVIRONMENTAL COMPLIANCE MANAGEMENT

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We strictly comply with the provisions on pollutant emissions in laws, regulations, and policy documents such as the Environmental Protec-tion Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of Water Pollution, andthe Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution. We resolutely ful?lls the provisionsconcerning waste disposal in policy regulations like the Law of the People's Republic of China on the Prevention and Control of Environmen-tal Pollution by Solid Wastes and the Administrative Measures for the Transfer of Hazardous Wastes. Based on our business nature, we haveestablished a series of waste management policies, including the Solid (Hazardous) Waste Management Policy, Major Hazard SourceManagement Policy, Hazardous Chemicals Management Policy, Precursor Chemicals Management Policy, and Explosive Precursor ChemicalsManagement Policy, to strictly manage each production stage and reduce environmental impact. During the reporting period, all pollutantindicators of the company met emission standards, and there were no major penalties or criminal liabilities for pollutant emissions.

POLLUTION AND WASTE MANAGEMENT

KPI itemUnit202420232022

Total Water ConsumptionWater Use IntensityTotal Water Intake

TONSTONS / TON OF OUTPUT

TONS

1,151,126

8.4

861,601

1,102,500

8.6

873,429

1,023,800

8.8

713,543

WASTEWATER MANAGEMENTWe strictly implement national and industry standards such as the "Integrated Wastewater Discharge Standard." We emphasize the construc-tion of the wastewater treatment system and strictly implements wastewater reduction measures. In terms of management, there are 4technicians take shifts to 24 hours monitor the quality of external drainage, ensuring compliance of discharge requirement. In terms oftreatment technology, during the pre-treatment stage, wastewater undergoes physical and chemical treatment to reduce heavy metals andCOD. In the biochemical treatment stage, a combined process is used, such as oxidative decomposition of organic matter, physicochemicalremoval of heavy metals, biological decomposition of organic matter, and denitri?cation and decarbonization, with a COD removal rate ofover 90%. In terms of pollution control facility construction, the company has invested 6.98 million RMB to build a degreasing wastewatertreatment plant with a daily capacity of 650 tons, which complies with the Level III standard of the Integrated Wastewater Discharge Standard(GB8978-1996). Total nitrogen is strictly controlled according to the Class C standard of the Water Quality Standard for Wastewater Dischargedinto Urban Sewers (GB/T 31962-2015). At the same time, the company has added remote water quality monitoring equipment and a self-con-trol system to enhance the automated operation and management of the degreasing wastewater station, ensuring that the upgradeddegreasing wastewater can be treated independently and achieve stable, compliant discharge.

EXHAUST GAS MANAGEMENTWe strictly adhere to national standards such as the Integrated Emission Standard of Air Pollutants and implement in depth treatment toindustrial exhaust gases. For the exhaust gas generated from the pickling process, it is collected through sealed pipelines and sent to theexhaust gas treatment system. Using SCR technology, it ef?ciently puri?es nitrogen oxides, ?uorides, and other exhaust gases. The puri?edgas is then returned to the gas-to-gas heat exchanger for waste heat recovery and ?nally discharged through the chimney in compliancewith standards. We ask third party to test the fugitive emissions at the plant boundary annually to ensure timely discovery and resolutionof potential environmental problems, safeguarding the air quality around the plant and avoiding negative impacts on the health and qualityof life of employees and local residents.

ACTUAL VIEW OF THE WASTEWATER REDUCTION FACILITY

Wastewater DischargeConcentration Indicator

Before UpgradeAfter UpgradeReduction Rate

PH VALUECOD（MG/L）SS（MG/L）PETROLEUM (MG/L)TOTAL NITROGEN (MG/L)

7-9≤600≤125≤40≤50

6-9≤500≤100≤35≤45

≤15%≤16.67%≤20%≤12.5%≤10%

WASTEWATER REDUCTION ACHIEVEMENTS

No. ItemLimitUnit

Pickling Exhaust Gas VolumeExhaust Gas TemperatureInlet NOxInlet HFOutlet NOx (Emission Concentration)Outlet Fluoride (Emission Concentration)Outlet NOx (Emission Rate)

5,000

5,000

1.3

m

/h

o

C

mg/m

mg/m

mg/m

mg/m

kg/h

EXHAUST GAS EMISSION LIMIT SETTINGS

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WASTE MANAGEMENTWe have created the "Solid (Hazardous) Waste Management Policy" to regulate the solid and hazardous waste management processes forourselves and our subsidiaries, reducing waste generation at the source. At the same time, through ledger-based management and afull-process traceability system, we ensure that information on waste type, quantity, ?ow, storage, utilization, and disposal is traceable,achieving 100% code-based traceability targets.We follow the relevant management requirements of the Standard for Pollution Control on the Storage and Land?ll of General IndustrialSolid Wastes and strictly manage the general solid waste. We actively adopts relevant pollution prevention measures, collecting and storinggeneral solid waste by category, and requires that industrial solid waste not be dumped or piled up arbitrarily, and prohibits mixing industrialsolid waste with domestic garbage.We comprehensively implement standardized hazardous waste management requirement. In terms of storage management, storage zonesare set up and isolated based on the category, quantity, and form of hazardous waste. Hazardous waste is labeled and equipped withemergency facilities such as diversion channels and collection pools. In terms of transfer and disposal management, in accordance with theNational Hazardous Waste Directory (2021 Edition), electronic manifests will be ?lled out for the transfer of hazardous waste and quali?edthird parties are contracted for compliant disposal. At the same time, through regular ?ling, it ensures the completeness of commissioningprocedures and records.

We care about biodiversity protection, adhering to relevant laws and regulations such as the Law of the People's Republic of China on thePrevention and Control of Soil Pollution, the Wildlife Protection Law of the People's Republic of China, the Regulations of the People'sRepublic of China on Nature Reserves, the Biosafety Law of the People's Republic of China, and policy documents such as the Opinions ofthe General Of?ce of the State Council on Further Strengthening Biodiversity Protection. We are committed to reducing the negative impactof our business activities on the natural environment.In the early stage of the project, sensitive areas are avoided through ecological surveys and environmental impact assessments. During theconstruction and operation phase, full-process ecological monitoring and early warning are implemented. During the reporting period, allof the company's production bases and operating sites were not located in nature reserves or other areas rich in biodiversity, and no signi?-cant negative impacts of the company's operating activities, product production, or transportation on biodiversity were found. At the sametime, the company extends its environmental protection requirements to its supply chain partners, continuously improving its biodiversityprotection system, and is committed to achieving the coordinated development of business operations and ecological protection.

ECOSYSTEM PROTECTION

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Jiuli ?rmly believes that technological innovation is the core driving force for enterprise development. Itshoulders the responsibility of "providing high-performance materials for global industry," activelyexplores cutting-edge technology ?elds, strictly adheres to the bottom line of product quality and safety,and promotes product upgrades with quality as the foundation. By pursuing excellence in quality, we aimto enhance our core competitiveness and drive the Company toward high-quality development.

Upholding Quality,Innovating Leads the Future

Jiuli leads industrial upgrading through technological breakthroughs, strengthen innovation foundation with talent cultivation, playinga critical role in "Pillars of a Great Power" and actively strives for the driving seat in global competition.

CONTINUOUS R&D AND INNOVATION

4546

Technological innovation is the cornerstone of Jiuli existence and also a microcosm of Zhejiang's role as a major contributor to thenation's revenue. The company continuously optimizes the organizational structure and functional positioning of its research centre,strengthens the construction of its R&D system, and continues to increase its R&D investment. We have launched and implementsinternal management systems such as the Management Measures for Scienti?c Research and Innovation Projects and the InterimMeasures for New Product R&D, Sales Management, and Rewards. It standardizes the management of technological innovationprojects, clari?es implementation standards and acceptance processes, and established detailed rules for innovative achievementsreward, encouraging all employees to actively participate in technological (and managerial) innovation activities, thus providing astrong guarantee for the company's continuous innovation and development. In 2024, with the research center as the innovationplatform, we work with expert consultants, research entities, external cooperation, and other forces to comprehensively form a sound,cooperative, and ef?cient innovation system.

GOVERNANCE

Jiuli Research Center Organizational Chart

Jiuli Scienti?c Research and Innovation System

Obtain High-tech Enterprise Certi?cate

DIRECTORSENIOR PROJECT

MANAGER

SENIORCHIEF ENGINEER

DEPUTY DIRECTORLAB MANAGE

INTELLIGENTEQUIPMENTDEPARTMENT

DIVISION OF

WELDINGTECHNOLOGYRESEARCH

DIVISION OF

MATERIALRESEARCH

DIVISION OF

BUSINESSDEVELOPMENT

DEPUTYLABMANAGER(BALI SITE)

DEPUTYLABMANAGER(ZHENXI SITE)DIVISION OF

PROCESSRESEARCH

LAB MANAGE

PROCESSINGTEAM

CHEMISTRYTEAM

CORROSION

TEAM

MECHANICS

TEAM

METALLOGRAPHICTEAMGENERALAFFAIRSOFFICEMECHANICS

TEAM

METALLOGRAPHICTEAM

EXPERT CONSULTANTS

Decision-making project initiationgate keeping.

Research center/subdivisions and project teams asresearch entities with clearobjectives,de?ned responsibilities,and division of labor andcooperation.

EXTERNALCOOPERATION

RESEARCH ENTITIES

PLATFORM

Cooperation with universi-ties and research institu-tions to form "Industry-Ac-ademia-Research-Applica-tion" module

-Coordination and decision making-Innovation through collaboration-All- member participation-Review and evaluation

Research Center asthe innovation platform

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Jiuli focuses on the research and manufacturing of high-end industrial stainless steel and special alloy materials. We committed toproduce long, special, superior and high-end product to serve national strategic needs. We continue to invest in advanced materialsR&D, and have broke monopolies to achieve domestic production. This allows us to leap from follower to leader position in the indus-try, contributing Jiuli's strength to the high-end development of Chinese manufacturing.We have precisely identi?ed the risks and opportunities in the ?eld of technological innovation and formulated a series of targetedresponse measures. These strategies have pointed out the development direction for the company, optimized resource allocation,improved the scienti?c nature of decision-making, and enhanced the company's market competitiveness. On this basis, the companyalso actively promotes a culture of innovation, injecting inexhaustible momentum into the enterprise's continuous innovation andlong-term development.

STRATEGYIMPACT, RISK, AND OPPORTUNITY MANAGEMENT

RISK

OPPORTUNITY

Impact TypeDescriptionCountermeasures

To deliver the high-end products strategy,we must rely on high-level R&D andinvestment to drive innovation, createleading R&D results to meet customerneeds.

Continuously developing forward-lookingproducts, actively serving major nationalprojects, responding to the developmentneeds for green and low-carbonproducts, and always being guided bycustomer needs and closely followingmarket development trends, therebyeffectively enhancing market competi-tiveness.

Actively participate in national "14thFive-Year Plan" projects, national keyR&D programs, and Zhejiang Province's"Jianbing Lingyan" key R&D programprojects, continuously maintaining a highlevel of industry standing and innovationvitality.

If trademarks or patents are notregistered in a timely manner, our ownrights and interests may not be fullyprotected.During the R&D process, failure toconduct a thorough search of existingtechnologies may lead to redundant R&Dor the inability to protect R&D results.

Keep an open mind in innovation, contin-uously advancing in-depth cooperationwith universities and research institu-tions.Introduce high-end talent, build ahigh-capability innovation team, estab-lish an "Innovation Contribution Award"to stimulate innovative vitality, andpromote the company's technologicaldevelopment and sustainable develop-ment.

Place a high importance on intellectualproperty management, actively protect-ing proprietary IP from infringement,respecting the intellectual property ofothers, and jointly maintaining a goodindustry competition order.

R&D PLATFORMS AND TALENTJiuli has established an Academician and Expert working grop, a Postdoctoral Research working group, and a CNAS-certi?ed laboratory.It has also co-established joint R&D centers with institutions like the University of Leeds in the UK and the Central Iron and SteelResearch Institute in Beijing. As of the end of2024, the company's laboratory has integrated platforms for material calculation, micro-structural characterization and chemical analysis, high-temperature long-term service performance evaluation, and material corrosionevaluation. It has also established research and development base for advanced welding technology research and pipe formingprocess development, possessing full-process capabilities for development, manufacturing, inspection, and testing in the ?eld ofindustrial stainless steel pipes.

We adheres to the principlethat "talent is the primaryresource," actively introducingdozens of high-level domesticand overseas talents. Weassembled an R&D team led byan CAS Academician, focusingon key areas such as materialcalculation and characteriza-tion, service performanceevaluation, and weldingtechnology R&D, to conductin-depth research oncutting-edge technologies. Atthe same time, the companyworks closely with universitiesto implement the "ExcellentEngineer Training Program,"training over 200 core technicaltalent on average each year,laying a solid talent foundationfor the company's develop-ment.

JIULI NDUSTRY-UNIVERSITY-RESEARCH COLLABORATION” PLATFORM

Collaborate with the University of Leeds (UK), establishing the "Jiuli Corrosion and Integrity Centre" as an overseas R&D

institution.

Jointly established the Special Stainless Steel and Alloy Material Technology Innovation Center with units like the Central

Iron and Steel Research Institute, promoting innovation and leapfrog development with partners.

Led the establishment of the Yangtze River Delta Ultra-High Purity Stainless Steel Material Innovation Consortium to

help realize the domestic production of high-purity and ultra-high-purity stainless steel tubes for high-precision

semiconductor equipment.

Established industry-university-research collaboration with 44 design institutes, universities, and research institutes,

including Tsinghua University, Peking University of Science and Technology, Shanghai Jiao Tong University, Zhejiang

University, China Institute of Atomic Energy, and Shanghai Nuclear Engineering Research & Design Institute.

Appointment Ceremony for Liu Zhengdong, CAS Academician

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We have established an "Innovation Contribution Award." Through various forms such as R&D achievement commercialization bene?tsand equity incentives, it fully mobilizes the innovative enthusiasm of the research team, encouraging researchers to be patient notdefeated at the developing phase and to devote in research, injecting powerful momentum into technological innovation andlong-term development.

We have achieved fruitful scienti?c research results in 2024, including leading the 2030 National Key Science and Technology Projectfor oil country tubular goods, completed the domestic development and delivery of C22 for the ?rst 50,000-ton environmentally friend-ly epichlorohydrin demonstration unit of Sinopec Hunan, and achieved signi?cant results in research projects such as integrated KDcomponent structural materials and evaporator heat transfer tubes. We also completed multiple batches of composition smelting fornew welding materials like 9Ni, as well as performance evaluations for deposited metal and welded joints.

2024

Internal professional skills training sessions: 23 External professional skill certi?cations obtained: 137 Engineers, 4 Senior Engineers

2024

New R&D projects established: 30 International PTP testing projects with satisfactory results: 2

PRODUCT TECHNOLOGY BREAKTHROUGHS

Jiuli has always made serving major national projects andsubstituting imports its core direction for technologicalinnovation, aiming to "replace the industrial arteries withChinese pipes." In recent years, the company has under-taken or participated in several national key R&Dprograms and Zhejiang Province's "Jianbing Lingyan" keyR&D programs, making progress in R&D work on keysubjects such as materials for service in extreme environ-ments and high-quality pipe precision forming.In the ?eld of advanced energy materials, the companysuccessfully conquered the technology for U-shaped heattransfer tubes for nuclear power steam generators, break-ing foreign monopolies and achieving domestic produc-tion. The products are used in major national nuclearpower brand projects such as "Hualong One," helping ourcountry completely shake off its reliance on imports forthis product. In the ?eld of oil and gas transportation, thecompany has independently developed high-end pipelineproducts such as duplex stainless steel and nickel-basedcorrosion-resistant alloys, which are used in major oil andgas projects, contributing to the nation's energy securitystrategy.

Certi?cate of MetallurgicalScience and Technology Award

SUCCESSFUL DEVELOPMENT OF HIGH-PRECISION, ULTRA-THIN-WALLED AVIATION TUBESJiuli ultilized its advantageous R&D resources to establish a project to tackle high-precision, high-strength stainlesssteel tubes for aerospace applications. We broke through industry quali?cation barriers to become a core supplier ofkey aerospace components. In 2024, We successfully developed a series of high-precision, ultra-thin-walled aviationtube products, contributing to our nation's aerospace industry.

High-Precision, Ultra-Thin-Walled Aviation Tube Products Series

LOW-CARBON PRODUCT INNOVATION

Located in the nation's ?rst green and smart manufacturing pilot demonstration city, we ?rmly adherent to the concept that "lucidwaters and lush mountains are invaluable assets" and translates it into the practice that "green pipes are the green future." We contin-uously optimize material formulas and performance to provide high-performance metal material solutions for ?elds such as hydrogenenergy storage and transportation, photovoltaics, solar thermal, and thermal power, helping downstream industries reduce emissionsand increase ef?ciency, and promoting the green and sustainable development of the entire value chain. In recent years, the companyhas participated in the national "14th Five-Year" plan project led by Sinopec. By developing the domestic production technology ofHastelloy N06022 material for tubular epoxidation reactors, we have solved the bottleneck in the domestic design and manufacturingof core reactors for national green and low-carbon special projects, providing certain technical reserves and application experiencefor related industries.

Awarded "Industrial Product Green Design Demonstration Enterprise" by the Ministry of Industry and Information Technologyof the People's Republic of China.Seamless steel tubes for ultra-low temperature liquid hydrogen containers passed the Zhejiang Provincial New IndustrialProduct Certi?cation and obtained the 2024 Zhejiang Province First Batch of New Materials Certi?cation.

[Honors]

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POSITIVE OUTCOMES FROM AUTOMATION TRANSFORMATION

In 2024, the automation transformation of Jiuli workshops and processes delivered signi?cant results, achievingimprovements in production ef?ciency and cost reduction, showcase development fueled by new technology. Thecompany's processing workshop has been relocated and optimized which has resulted in labor intensity reduction andproduction ef?ciency increase. Automated the polishing process lead to increase ef?ciency by 20%. By optimizing thecutting process parameters, it reduced costs by 30%. The automatic hardness testing equipment increased work ef?cien-cy by 10% after the upgrade.

Automated Grinding and Polishing of Pipe Fittings

INTELLIGENT MANUFACTURING TRANSFORMATION

Jiuli vigorously promotes digital construction and automation transformation. It has built the ?rst "5G + Industrial Internet" platformfor stainless steel tubes in China, achieving full-process quality traceability, AI optimization of process parameters, and AI detection ofsurface defects, which has signi?cantly improved production ef?ciency and product quality.

INTELLECTUAL PROPERTY MANAGEMENTTo standardize and strengthen intellectual property (IP) management, enhance innovation capabilities and core competitiveness, Jiulistrictly adheres to laws and regulations such as the Patent Law of the People's Republic of China and the Copyright Law of the People'sRepublic of China. It has formulated internal management policies such as Intellectual Property Management Measures and Manage-ment Measures for Scienti?c Research and Innovation Projects, following the principle of "uni?ed management, full participation,division of labor and cooperation, and process driven." It continuously improves the three-tier IP management structure of"decision-making, management, and execution," clarifying implementation details for IP assessment, searching, retrieval, archiving,contract management, transfer, and protection.

The company has demonstrated excellence performance in intellectual property creation, application, protection, and management.We have developed a high-value patent portfolio and recognized as a National Intellectual Property Demonstration Enterprise and aZhejiang Provincial Intellectual Property Demonstration Enterprise, and is certi?ed under the Intellectual Property ManagementSystem (GB/T 29490). In 2024, the company completed the declaration for the "Case of High-Ef?ciency Heat Exchange New High-Tem-perature Alloy Tube Materials Patent commercialization," ?led information for patent-intensive products, and submitted excellent caseof patent industrialization, thereby obtaining data intellectual property rights from Zhejiang Province.

[Honors]Awarded "Intelligent Manufacturing Demonstration Factory" by the Ministry of Industry and Information Technologyof the People's Republic of China.

IP WORK LEADING GROUPDECISION-

MAKING

LEVEL

Responsible for the review and approval of major matters such asIP work strategic planning, annual plans, systems, budget execution,and reward and punishment schemes.

TECHNOLOGY MANAGEMENT

DEPARTMENT

Responsible for the comprehensive management and protection ofIP; the formulation and implementation of various IP managementsystems; the establishment and operation of the IP managementsystem.

IP INTERNAL AUDITORS/LI-

AISONS

Responsible for cooperating with the Technology ManagementDepartment on IP management-related work; assisting the Technol-ogy Management Department in complying with and implementingrelevant laws and regulations; system formulation, and IP reportingtasks.

MANAGEMENTLEVELEXECUTION

LEVEL

Certi?cate: Intellectual Property Management

System Certi?cationCerti?cate: Zhejiang Provincial Intellectual Property

Demonstration Enterprise

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Jiuli regards quality as a vital part of the enterprise, upholds the corporate spirit of "winning through quality," and strictly controlsproduct quality. Leveraging its robust quality management system and reliable delivery capabilities, the company has successfullyearned the trust of its customers, signi?cantly enhanced its own market competitiveness, and promoted high-quality corporate devel-opment with outstanding quality.

UPHOLDING PRODUCT QUALITY

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To clarify the direction of scienti?c research and innovation and enhance market competitiveness, Jiuli has established managementgoals, focusing on key areas of R&D innovation, precisely allocating resources, accelerating the output of innovative achievements, andensuring that intellectual property rights are not infringed.INDICATORS AND GOALS

Jiuli strictly complies with laws and regulations such as the"Company Law of the People's Republic of China" and the"Contract Law of the People's Republic of China." It fully imple-ments quality management systems like ISO 9001, AS9100D, andadheres to relevant standard requirements such as TSG 07-2019"Licensing Rules for Special Equipment Manufacturing andFilling Units." At the same time, we continuously improve prod-uct quality and safety management systems, drafting andimplementing quality management manuals like the "ISO 9001Quality Management System Quality Manual," and other qualitymanagement manuals, as well as over 40 proceduraldocuments like "Control Procedure for Monitoring andMeasurement of Processes and Products," "Control Procedurefor Monitoring and Measurement Resources," and "ProcurementControl Procedure," hundreds of SOP documents. This compre-hensively guarantees the operation of the quality managementsystem and effectively ensures the outstanding quality andsafety of its products.

GOVERNANCE

Continuously enhance R&Dcapabilities and build ahigh-quality R&D talent team.Continuously improve the patentapplication and layout of propri-etary R&D achievements toachieve comprehensive protec-tion of intellectual property in keytechnology areas.

Management Goal2024 Progress

R&D investment amount: 360 million RMBAssembled an R&D team led by CAS academician.Total of 128 effective patents42 new patent applications, achieving 185% of the annual target60 new proprietary technology applications, achieving 240% of the annual target.

ISO9001 QUALITY MANAGEMENT SYSTEM CERTIFICATE

The Chairman, as the primary person responsible for the company's product quality and safety, has "one-vote veto" right to quality andsafety, establishes a comprehensive quality and safety management system and implements standardized management to ensure thequality and safety of every process, every link, and every product throughout its entire life cycle. At the same time, each departmentof the company, based on its own responsibilities and management documents, implements detailed management for variousprocesses such as raw material procurement, inspection, process control, process inspection, ?nished product acceptance, labelling,and shipping, continuously improving the conformity, suitability, and effectiveness of the product management system.

ADMINISTRATIVE MANAGEMENTLIAISON AND COORDINATION,QUALITY CONTROL SUPERVISIONQuality Management System Organizational Structure and Relationships

Legal RepresentativeGeneral Manager

Management Representative

AssistantTo TheGeneralManager

Assistant

To TheGeneralManager

Assistant

To TheGeneralManager

FinancialDirector

ChiefEngineer

QualityDirectorExecutive

Deputy

Gm

Archives

Sales Depar

Ment

Administrative

Of?ce

InformationDepartment

Human Re

SourcesDepartment

PublicFacilitiesDepartment

InfrastructureDepartment

Safety &EnvironmentDepartment

PmcDepartment

Technical Commercial Department

SteelResearch Lab

Metrology

Of?ce

Equipment

DeptTechnicalDepartment

ProductionDepartment

Production

Branches

SupplyDepartment

FinanceDepartment

ResearchCenter

QualityInspectionDepartment

QualityAssuranceDepartment

CorporateManagementDepartment

BusinessDivision

NuclearPowerOf?ce

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The company deeply embeds the national strategies of "Manufacturing Power" and "Quality Power" and practices the corporate spiritof " working hard, winning by quality, being trustworthy ." We strictly abide by laws and regulations, follow industry standards, incorpo-rate quality and safety goals into the core indicators of our development plan, and are committed to realizing the mission of " Providehigh-performance materials for the global industries.To enhance market competitiveness and protect the company's brand image, we accurately identify potential risks and opportunitiesin the production process, establishes full life-cycle control measures and a series of preventive and improvement mechanisms, andcontinuously reduces quality and safety risks.

STRATEGY

Risk

Opportunity

IMPACT TYPEDESCRIPTIONCOUNTERMEASURES

With the continuous strengthening ofpolicy supervision, if product quality andsafety do not meet standards or if manyserious problems occur, the companymay face regulatory penalties, a declinein customer trust, and damage to itsreputation.If the company is unclear about marketdemand, product competition, etc., it mayface strategic and operational risks,leading to a loss of customer trust and?nancial losses.With reliable product quality and safetyand outstanding performance thatexceeds industry standards, the companycan win a competitive advantage indomestic and international markets,which means more development oppor-tunities.

Implement full life-cycle quality controlfor products to cover each steps from rawmaterial procurement to post-deliveryuseImprove the product complaint handlingprocess, strictly managing products withpotential quality problems and prioritiz-ing the resolution of customer needs.Regularly conduct quality training toenhance employees' quality awarenessand professional skills.Increase R&D investment. Drive businessdevelopment from both R&D and sales.Establish multiple specialized laboratoriesfor timely product testing and continuousImprovement of product quality.Actively adopt quality testing and certi?ca-tion testing and certi?cation to ensureproducts meet or even exceed industrystandards.

IMPACT, RISK, AND OPPORTUNITY MANAGEMENTPRODUCT FULL LIFE-CYCLE QUALITY CONTROLJiuli proceeds from four dimensions: "duties in place, documents in place, work in place, and records in place," promoting the imple-mentation of the system in each management department and operation post, with detailed roles and responsibilities. Each Businessdivision , based on its business situation and product speci?cations, document production operation procedures such as the ExtrusionProcess Operation Procedures and Cold Working Process Operation Procedures, and adopts a combination of planned inspection,mutual inspection, and random inspection (patrol inspection) to achieve full life-cycle quality control of products.

QUALITY INSPECTION AND CERTIFICATIONTo ensure product quality meets standards and to continuously improve quality stability, the company is equipped with comprehensiveinspection equipment, with 4 inspection labs and over 100 inspection items. The inspection center is equipped with internationallyadvanced instruments such as an electrically cooled gamma-ray spectrometer and a high-temperature creep testing machine. At thesame time, the company collaborates with multiple domestic and international laboratories. It has co-established the "ZhejiangMoore-Jiuli Engineering Materials Joint Laboratory" with Xi'an Moore Petroleum Engineering Laboratory and established a metal mate-rials testing cooperative laboratory with T?V Rheinland Group from Germany, continuously strengthening its technical strength andproduct quality. In 2024, the company's laboratory will complete the CNAS reassessment and certi?cate renewal.

PRODUCT DISPUTE RESOLUTION PROCESSThe company has established "Quality Management Policy," "Customer Communication and Satisfaction Measurement Control Proce-dure," and other quality control procedures. It strictly adhere to product quality management process, clarifying that external qualitydisputes are solely managed and coordinated by the company's Quality Inspection Department. Relevant personnel such as sales areto communicate with customers in a timely manner, and the Business Division and other related departments will action based on theaudit and processing opinions.

Jiuli Finished Product Inspection Procedure

2024 ACHIEVEMENTS

NSF-61 Certi?cate for Seamless/Welded Pipes

ULTRASONIC PHYSICAL & CHEMICAL EDDY CURRENT HYDROSTATIC SURFACE INSPECTION X-RAY

Received NSF-61 certi?cation for seam-less/welded pipe products.Completed Norsok M650 certi?cationextension for welded pipes.

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Quality Dispute Resolution Process

1. Receive Information

2. Fill out Review Form

3. Review outcome

4.Take Actions

5.Case Review

6.Case close

Receive customer feedback.Fill out the "Customer Feedback (Complaint) Review Form."

Based on the review outcome, implement recommended actions.If necessary, visit the site immediately. Respond within 24 hours, provide a reply within72 hours.

In principle, close within one month. Special circumstances require reporting andapproval.

Provide feedback on the handling result and have the Quality Assurance Departmentidentify and organize corrective measures, or convert it into an internal experiencefeedback case.

Jiuli Service Quality Improvement PracticesImplement Customer RelationshipManagement (MAS) System

Record and analyze customer pro?le, provide personalized services,and meet unique needs.Provide timely feedback and guidance to sales staff on issues encounteredin their work, prompting them to improve their work methods and thuseffectively enhance service quality.Track market dynamic data and adjust sales strategies in a timely mannerto ensure products and services always meet market demand.Provide regular training on product technical parameters and other relatedknowledge supported by the 0technical department. At the same time,provide sales training to sales staff.Increase introduction of participating projects and enhance productvisibility in related ?elds.

Regular Meetings and Weekly ReportsUtilize Sales Data Analysis ToolsProduct Knowledge and SalesKnowledge TrainingUtilize Social Media and OtherNew Marketing Tools

PRODUCT QUALITY TRAINING

In 2024, the company held multiple quality management-related training sessions, covering topics such as process quality issue analy-sis and summary, quality assurance management, nuclear-grade pipe quality control, equipment maintenance, and metrology, as wellas control of hydrostatic pressure, ultrasound, and material delamination defects.

PROCESS QUALITY PROBLEM ANALYSIS AND SUMMARY TRAININGIn March 2024, Jiuli based on the Standard Operating Procedure Guide, organized a hands-on assessment training onprocess quality issue analysis and summary, with a total of 15 employees participating. During the training, the companyfocused on analyzing and improving common quality problems, clarifying the functions and responsibilities of eachposition to ensure they meet job requirements. At the same time, the company compiled statistics on quality losses andimplemented corrective measures, thereby continuously enhancing the quality management capabilities and profes-sional skills of its employees.

The company sets key performance indicators to measure development trends, pays attention to process performance and productservice compliance, benchmarks with industry peers and development trends, improves product quality performance, and enhancesproduct competitiveness.INDICATORS AND GOALS

Management Goal 2024 Progress

Production bases have passed ISO 9001, APIQ1, and other quality management systemcerti?cations, and continuously improvetheir quality management level.Product quality is certi?ed by authoritativeindustry bodies such as NSF and Norsok,ensuring a high level of product quality inthe industry.Continuously provide high-performance andstable materialsProduct inspection pass rate: Welded pipeproducts >98.5%, Seamless pipe products>93%, Pipe ?tting products >93%, Nuclearpower precision tube products >93.5%

There have been zero recorded incidents of product qualityaccidents.Holds API Q1 certi?cate, NADCAP-NDT non-destructive testingcerti?cate, NADCAP-HT heat treatment certi?cate, NADCAP-MTLlaboratory certi?cate, NADCAP-WLD welding process certi?cate,UKCA certi?cate, etc.Products have passed authoritative industry certi?cations suchas NSF and NORSOK.Most of the company's set product inspection pass rate targetshave been achieved, demonstrating good quality control levels.The company has made positive progress in product qualitycontrol and still needs to strive to ensure the overall pass rateis comprehensively improved.

Jiuli adheres to a customer-demand-oriented approach, continuously optimize its service concepts and models, fully safeguardscustomer rights and interests, places high importance on customer feedback, and is committed to providing customers with conve-nient, ef?cient, and personalized service experiences.

OPTIMIZING THE CUSTOMER EXPERIENCE

Jiuli puts the customer at the center, continuously optimizing service quality and management ef?ciency. The company has issued aSales Management Policy, which details the operational procedures for after-sales services such as service and technical support,complaint handling, customer satisfaction surveys, and product returns, ensuring the entire service process is ef?cient and standard-ized, and providing customers with comprehensive and high-quality support.

The company develop annual sales strategy based on market dynamics, covering key dimensions such as pricing strategies and saleschannel management, to ensure the business activity compliance.

CUSTOMER SERVICE AND RIGHTS

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Jiuli continuously improves its product quality and service levels, placesgreat importance on customer feedback, and constantly optimizes thecustomer experience to enhance customer satisfaction. The companyregularly conducts customer satisfaction surveys, using the "CustomerSatisfaction Survey Form" to conduct a comprehensive evaluation from?ve dimensions: product quality, product condition, product cost-effec-tiveness, delivery time, and overall service. This allows for precise accessto customer satisfaction data, which is then used to compile a "CustomerSatisfaction Survey Results and Analysis Report." The analysis reportdetails the improvement measure plans and implementation results,ensuring that customer opinions are addressed and recti?ed. At thesame time, the company sends satisfaction surveys to customersquarterly and pays close attention repeat issues in two consecutivecustomer satisfaction feedbacks, taking practical and effective measuresto address them.In 2024, the company collected a total of 309 Customer SatisfactionSurvey Forms with customer satisfaction reaching 98.26 points, ayear-on-year increase of 0.66 percentage points, achieving the target ofcustomer satisfaction being higher than 96 points. In addition, thecompany received 39 thank-you letters from domestic and internationalcustomers such as Shell, Yantai West Port, and China United EngineeringCorporation.

CUSTOMER SATISFACTION

Customer complaints are a direct and important channel for the company to address its own product and service issues, which can help thecompany improve its overall service quality and improve customer relationships. To ensure the openness of the customer complaintchannels, the company clari?es the primary responsibilities of each department in handling customer complaints and has developed the"Customer Communication and Satisfaction Measurement Control Procedure" accordingly. This procedure details the customer complaintshandling process to resolve them ef?ciently and properly.

The company provides public complaint hotlines through its of?cial website, after-salesservice commitment letters, and other channels to ensure that customers can providefeedback at any time. At the same time, the company clearly stipulates that staff mustrespond within 24 hours of receiving a customer complaint; for major quality issues, relevantpersonnel must arrive at the customer's site within 48 hours to handle it (for exportproducts, the speci?c response time is determined based on communication with thecustomer).In 2024, customer feedback received by the company was mainly around product dimension-al deviations and surface quality. In response to the above complaints, the company hasactively analyzed and investigated the root causes of the problems and taken effectivemeasures to resolve them, avoiding the recurrence of similar incidents.

Customer Complaint Handling Process Flowchart

Awarded "Excellent Supplier"

Receive and record thecomplaint.

Customer Complaint Hotline0572-2539247

Jiuli places great importance on data and network security management, monitoring in real-time to prevent network attacks and dataleakage risks. It effectively responds to information system emergencies, ensuring the integrity and con?dentiality of data, and providing asolid guarantee for the company's stable development and customer trust.

MAINTAINING INFORMATION SECURITY

Jiuli continuously strengthens its data security management, having formulated internal management systems such as the "InformationSystem Management policy" and the "Con?dentiality Management System for Information Systems, Information Equipment, and StorageDevices." These policies regulate the security and con?dentiality management of the company's information systems, equipment, andstorage devices, providing strong support for the sustained development of the company's business. The company stipulates that all servicedata are backed up will be managed by information department, who will decide on the backup strategy, and dedicated network storagespace is set up for synchronous data backup. Based on the importance and retention period of the data, the company sets appropriatebackup methods for various types of data, such as network storage backup, mobile storage backup, and optical disc burning backup, with keybusiness data requiring off-site storage. At the same time, the company formulates corresponding backup strategies according to the backuplevels of different systems, regularly checks the data backup situation, and promptly handles backup failures.The company places great importance on customer data and privacy protection, clearly requiring operators to strictly adhere to con?dential-ity regulations and eliminate the risk of system passwords and data information leakage. The MAS system, as the relationship managementsystem between the company and its customers, undertakes important functions such as collecting, storing, processing, and analyzingcustomer data. In addition, the company's sales staff are equipped with dedicated sales phone sims, which have a higher level of securityprotection and can effectively protect user information security during data transmission.

DATA AND NETWORK SECURITY MANAGEMENT

Determine the responsibledepartment for handling thecomplaint and report to theup-level.

Root Cause Analysis.

Propose resolution recom-mendation.Company review the recom-mendation.Communicate and con?rm thesolution with customer.

Resolve the complaint issue.

Conduct internal re?ectionand case sharing.

Record the complaint handlingprocess, and archive it.

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Mas System Safeguard Customer Security

DATA ENCRYPTION

ACCESS CONTROL

DATA ANONYMIZATIONAND DESENSITIZATION

SECURITY AUDIT

Customer data is encrypted during storage and transmission. Advanced encryptionalgorithms are used to convert raw data into ciphertext for storage in the databaseand for encryption during network transmission, ensuring that even if data is stolen,attackers cannot obtain the plaintext information.

Establish a strict user identity authentication and authorization mechanism. Onlyauthorized employees can access customer data, and their access to data is restrictedbased on their job responsibilities and permission levels. For example, customerservice staff can only view basic customer information and consultation records; dataanalysts are limited to accessing data relevant to their analysis tasks.When processing and analyzing data, sensitive information involving customerprivacy is anonymized and desensitized. For example, customer names, ID numbers,and other sensitive information are replaced with anonymous identi?ers, andinformation such as phone numbers and addresses is partially hidden, so that theprocessed data cannot be used to directly or indirectly identify customer identities.A comprehensive security audit mechanism is implemented, recording all operationsrelated to customer data in the system, including data access, modi?cation, deletion,etc. Through audit logs, every operation can be traced to the operator, time, location,and speci?c action, so that in the event of a data breach or other security incident,the problem can be quickly located and corresponding measures can be taken.

Information System Emergency Prevention and Response Coordination GroupCommand GroupBusiness SystemEmergency RepairGroup

Power Supply Group

Security Group

InfrastructureEmergency Repair Group

Analyzes the emergency situation, determines the incident level, and directs and coordinates the emergencyresponse actions; supervises the actions of emergency operators and ensures personnel safety.Responsible for resolving faults found in business systems and handling system failure reports from businessdepartments; performs diagnosis, troubleshooting, and recovery of information system failures.Responsible for the con?guration of the company's network security protection and timely handling and repairof network security vulnerabilities. Performs daily maintenance and handles abnormal situations for securitymonitoring, smart park, and other systems.Ensures power input to the computer room.Supervises the ?re protection facilities in the computer room and ensures on-site safety during emergencies.

2024Customer privacy leakage incidents: 0

To ensure network security, the company requires that networks for different business operations be isolated and partitioned. It allocatesreasonable permissions and security policies for devices accessing the company network and adds hardware ?rewalls or network gatewaysat key network nodes to ensure network security and reliability and effectively resist unauthorized intrusions. At the same time, the companyregularly conducts network security risk assessments to accurately identify potential security hazards and vulnerabilities and promptly takestargeted measures to reduce risks. In addition, the company also regularly organizes training on speci?c network security risks to improveemployees' security awareness and skills, enhancing their ability to identify and respond to common network security threats.

ORGANIZING SPECIAL TRAINING TO ENHANCE NETWORK SECURITY AWARENESS

In January 2025, Jiuli Group invited an external network security expert to hold a

Network Security Awareness Training, in which all employees of Jiuli participated.

This training, with the goal of "making network security awareness a habit," was

dedicated to maximum reducing the risk of corporate and individual network attacks

or data breaches, and effectively preventing the occurrence of network security

incidents and accidents. The training content covered aspects such as identifying

information leakage hazards, the principle of minimal software installation, and

identifying and preventing phishing emails, to comprehensively improve employees'

network security awareness.

DATA BACKUP AND RECOVERY DRILL

To test the feasibility and effectiveness of the server emergency plan, in October 2024, Jiuli in conjunction with a third party, conducted abackup server recovery drill. The drill aimed to improve the response speed and coordination in dealing with emergency. The drillsimulated a ?le loss scenario on a hyper-converged virtual machine server, and the lost ?les were recovered by restoring from a backupof the virtual machine server. The drill concluded successfully. The results showed that the total time from restoring the virtual machineserver to the complete recovery of the lost ?les was 2 hours and 48 minutes, and the veri?cation of relevant ?les on the recovered virtualmachine was normal, meeting the target.

To enhance the ability to respond to information security emergencies, the company has developed the Information System Emergency Response Plan,established a prevention and response mechanism, and set up a special coordination group responsible for preventing and handling information systememergencies. The company categorizes information system emergencies into eight types, including network attacks, information sabotage, informationcontent security incidents, network failures, software system failures, catastrophic events, and other incidents. Based on the severity of the impact of theinformation system interruption, the incident level is divided into four grades: general, major, critical, and catastrophic, and targeted emergency responseprocedures are created. In addition, the company conducts at least one disaster recovery drill and risk assessment annually, completes data backups ontime, and includes backup and recovery technical support clauses in equipment procurement contracts to further improve the level of emergencyresponse and ensure data and information security.

INFORMATION SYSTEM EMERGENCY RESPONSE

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Jiuli regards talent as a vital asset of the enterprise. It focuses on employee occupationalhealth and safety, promotes standardized management and safe production, and creates asafe and healthy working environment for employees. We also focus on employees' rightsand interests' protection, create a diverse and inclusive workplace atmosphere, and acceler-ating the construction of a talent hub and innovation center to provide a broad platform foremployee development and drive the continuous progress of the enterprise.

Safety First,Empowering Employee Development

Jiuli considers safety and occupational health of its employees as a bottom line. By establishing a sound occupational health andsafety management system, promptly controlling hazards and risk sources, ensuring the safe conduct of production and operationactivities, timely eliminating occupational health hazards, and enhancing employees' awareness of occupational health and safety, itbuilds a solid line of defense for corporate safety.

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The company has established an occupational health and safety management system and hasclearly de?ned various requirements in the HSE Management Manual. The occupational healthmanagement system covers 4,509 people, with a coverage rate of 100%. In 2024, the companypassed the ISO 45001 occupational health and safety management system certi?cation.The company advocates that "safety is everyone's responsibility" and has established an occupa-tional health and safety management system headed by the General Manager. It clari?es theresponsibilities of management, department heads, safety specialists, and employees, and signup safety production responsibility commitment at each level. The General Manager is fullyresponsible for the effectiveness of the management system, the approval and release of theoccupational health management policy, ensuring the formulation and implementation of goals,indicators, and management plans, and supporting the establishment and operation of the Healthand Safety Committee. The Safety and Environmental Department is responsible for the speci?cimplementation of occupational health and safety management work, composing relevantmanagement documents, carrying out the identi?cation and control of relevant risks and oppor-tunities, and organizing relevant departments to develop goals, indicators, and managementplans. The Human Resources Department, by implementing education, training, and communica-tion at different levels, strengthens the publicity and implementation of occupational health and safety work. Other departments ful?lltheir respective responsibilities and coordinate with the Safety and Environmental Department to carry out occupational health andsafety work.

Governance

Juli has passedISO 45001 Certi?cation

The company adheres to the policy of "safety ?rst, prevention foremost, and comprehensive governance," and insists that "productionand safety management must happens hand in hand throughout the entire production process." We improve and strengthen the safetyproduction responsibility system, strictly control and eliminate occupational disease hazards, ensures the normal operation of enter-prise production, and protects the health of workers. At the same time, the company conducts annual safety risk identi?cation, estab-lishes a risk control mechanism, and through scienti?c assessment, levels of control, and continuous improvement, ensures thatoccupational health and safety are integrated into the company's long-term development strategy, balancing production ef?ciencywith employee well-being.

Strategy

Impact TypeImpact DescriptionCountermeasures

Establish and improve the emergency management system, emphasizethe construction of the company's internal emergency response team,and conduct regular reviews, training, and drills for emergency plans.Organize team-level environmental emergency and safety training toenhance emergency awareness.Equip with appropriate emergency equipment and conduct regularinspections and checks.Provide corresponding training to operators.Personnel handling hazardous chemicals must be certi?ed; ?lling andloading should be done according to the SOP.Conduct daily supervision and inspection or random checks.

After a ?re, explosion, orenvironmental accident,the emergency plan isnot activated effectively.Spillage or leakage ofchemicals during product?lling, loading, ortransportation.

Internal Risk

Impact TypeImpact DescriptionCountermeasures

Establish a full life-cycle equipment management system, and conductregular preventive maintenance and key component inspectionsIntroduce intelligent monitoring systems (e.g., vibration analysis,temperature sensors) to monitor equipment operating status inreal-time.Implement lock-out/tag-out (LOTO) procedures to ensure safety duringmaintenance operations.Implement classi?ed storage for chemicals (e.g., isolating ?ammableand oxidizing substances), and con?gure spill containment pallets andventilation systems.Use electronic tags (RFID) to manage hazardous chemical inventoryand monitor storage conditions (temperature, humidity, pressure) inreal-time.Regularly conduct chemical compatibility assessments and emergencydrills.Conduct functional safety certi?cation (e.g., SIL level assessment)for automation systemsInstall redundant control and emergency stop devices, andconduct regular logic safety tests.Operators must undergo special training for the Human-MachineInterface (HMI) and be certi?ed to operate.Select legally quali?ed suppliers, collecting their business licens-es, relevant engineering construction quali?cation certi?cates,safety production licenses, etc.Provide training to the contractors, complete the training recordform, safety noti?cation letter, and external personnel safetyeducation test.During construction, issue work permits as required and arrangefor dedicated personnel for supervision and inspection.Material supplier should be contracted for material delivery. Theirvehicles and logistics transporter must comply with nationalchemical transportation requirements.The supplier requires transportation personnel to operate safelyduring transportation, establish an emergency mechanism, andimmediately activate emergency response plans in case of anaccident.Establish a sound occupational health management system,standardize daily management, and ful?ll all compliance obliga-tionsStrengthen daily training and education, inspections, and hazardinvestigation, and make timely corrections for continuousimprovementEnsure proper operation of on-site occupational hygiene equip-ment, monitor equipment operation through inspections, andconduct annual regular equipment maintenance to prevent occu-pational disease accidentsDistribute PPE in a timely mannerEquip with appropriate emergency supplies and conduct regularinspections and maintenance.

Heavy machinery failureleading to productioninterruption or personalinjury.

Improper storage ofhazardous chemicalscausing chemical reactionsor leaks.

Maloperation of automat-ed equipment or programvulnerabilities causingsafety incidents.

Potential safety risksduring on-site construc-tion activities by externalcontractors.

Accidents during thetransportation of chemi-cals, potentially causingchemical spills.

Increasingly strict occupa-tional health management.Preventing occupationaldisease from happening.

Internal Risk

External Risk

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Impact TypeImpact DescriptionCountermeasures

Establish a diversi?ed supplier base and sign long-term supplyagreements with core suppliers.Maintain a safety stock of key raw materials and regularly assesssupply chain resilience.Proactively deploy advanced waste gas/wastewater treatmenttechnologies (such as high-ef?ciency denitri?cation technologyConduct third party compliance audits to ensure conformity with the"Guiding Principles for the Investigation and Governance of SafetyRisks in Hazardous Chemical Enterprises."Establish a warning and coordination mechanism with meteorologi-cal departments and formulate emergency plans for extreme weatherEquip transport vehicles with GPS and temperature/humidity moni-toring, providing real-time feedback to the dispatch center.

Conduct training and publicity on all relevant safety laws, regula-tions, and requirements for all employeesRegularly organize professional personnel to attend internationaland domestic technical exchange conferences and exhibitions fornew processes and equipment.Rely on the research center to develop new processes.Build a safety production information platform, integrating riskmonitoring, hazard investigation, and emergency commandfunctions.Apply digital twin technology to simulate high-risk work scenariosand optimize emergency plans.Cooperate with scienti?c research institutions to develop low-toxici-ty, biodegradable alternative chemicalsApply for government subsidies for green manufacturing specialprojects to reduce the cost of technological upgrades.Apply for intelligent factory/digital workshop demonstration projectsto strive for policy and ?nancial supportIntroduce AI visual recognition systems to automatically captureunsafe behaviors (e.g., not wearing PPE).Enhance market competitiveness through ISO 45001 and ISO 14001system certi?cations.Regularly publish ESG reports to disclose occupational health andsafety performance.

Supply chain may beinterrupted, leading to ashortage of chemical rawmaterials.Upgrades in environmentalregulations may lead tonon-compliant emissions.Extreme weather (e.g.,heavy rain, high tempera-tures) may affect thetransportation and storageof hazardous chemicals.Increased awarenessamong management andthe general workforce.Improved safety protec-tion equipment.Introduction of newenvironmental manage-ment technologies andconcepts.The Industrial Internetenhances safety manage-ment ef?ciency.The Industrial Internetenhances safety manage-ment ef?ciency.National promotion of thedeep integration ofintelligent manufacturingand safe production.Increased customerdemand for ESG (Environ-mental, Social, Governance)performance.

External Risk

Opportunity

Impact, Risk, and Opportunity Management

Risk and Opportunity Management Procedure

Each department, based on the company's internal and external environmental factors, the needs and expectations of interestedparties, as well as the results of hazard identi?cation and legal and regulatory compliance requirements, preliminarily analyzes andassesses the risks and opportunities within its department. The Safety and Environmental Department collates the risks and opportu-nities reported by each department, organizes relevant personnel from each department to conduct an assessment, and determinesthe risks and opportunities. For the determined risks and opportunities, the Safety and Environmental Department speci?cally imple-ments the Risk and Opportunity Control Procedure.At the same time, the company develop the Safety Risk Hierarchy of Control, using hierarchy of control measures to control risks, deter-mines the risk level based on the probability and severity of potential accident types, forms a risk list, and determines risk controlmeasures.Emergency ManagementThe company has created the Emergency Preparedness and Response Control Procedure and the Production Safety Accident Emergen-cy Plan. It has established a hierarchical of control emergency response management system based on the hazard level of potentialaccidents and has developed speci?c emergency plans for potential accident types, which are regularly tested to ensure a rapidresponse and management in emergency situation. The company has established an emergency command center responsible fororganizing and commanding emergency rescue work. It also de?nes the duties of each department and relevant personnel, and setsout rules for information reporting, early warning, emergency response, rescue, post-incident handling, and emergency support afteran accident, ensuring the ef?cient implementation of emergency management work. The company regularly revises these documentsand conducts emergency drills to enhance its emergency management capabilities.In 2024, the company organized a total of two emergency drills and assisted the sub-production sites in conducting 14 emergency drills,promptly addressing and correcting any issues.

Accident Hazard InvestigationThe company has created the "Accident Hazard Investigation and Governance Management Policy." Based on the governance principlesof "area owner owns the responsibility" and "all employees engagement, all-round, and ongoing," it conducts hazard investigationsthrough a combination of regular and irregular checks, as well as specialized and comprehensive investigations. It investigates hazardsin areas such as the implementation of the safety production responsibility policy, the implementation of laws and regulations, theprovision of emergency supplies and the formulation and drilling of emergency plans, the maintenance of facilities and equipment,the management of hazardous operations, and the provision of labor protection equipment and safety education and training, andcarries out timely recti?cation.In 2024, the company conducted investigations into work-related accidents that occurred during production, analyzed the causes of theaccidents, and hold responsible individuals accountable as stated in the safety production responsibility policy. After an accident, thecompany carries out actions for recti?cation, provides safety education to employees to improve their safety protection awareness,and improves potentially hazardous work processes and environments to prevent similar accidents from recurring. It strengthens theon-site hazard investigation for similar positions and promptly recti?es any discovered hazards. It also improves safety operationtraining, which is updated with the ?nding from the hazard investigation.

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Jiuli obtains HuzhouCity Work Safety Standardization LevelThree Enterprise (Machinery) certi?cation.

Work Safety ManagementThrough the development of Work Safety Management Policy, Work Safety Responsi-bility System, Contractor Management Policy, and Special Operations ManagementPolicy. Jiuli has established management systems for work safety responsibility, worksafety education, work safety inspection, and PPE management. All engineeringprojects must be reviewed and approved from work safety, ?re protection andoccupational health＇s perspective. At the same time, the company carries out worksafety education and campaign to improve the safety awareness of all employees,strengthen accident management to eliminate accident hazards and address on-sitemanagement and infrastructure construction to ensure the safety of productionoperations. The company has obtained the Huzhou City Safe Production Standardiza-tion Certi?cation. In 2024, the company completed the construction of a micro ?restation and introduced water-swellable bags to enhance its ?re emergency capabili-ties.

Occupational Health ProtectionThe company keeps improving employee occupational health and hygienemanagement level. An occupational health management ?le system wascreated with a 100% ?ling rate. Each role is equipped with an occupationalhazard noti?cation board, and AED de?brillators are installed in public areasthroughout the company. At the same time, it strengthens the managementof employees and third-party labor, ensuring that proper personal protectiveequipment is used. Regular and ad hoc inspections for occupational healthhazard are conducted monthly. Occupational disease prevention measures(such as for dust, noise, and chemical management) are implemented andregular health monitoring and psychological support are provided.In 2024, the company conducted safety campaign among several of itssubsidiaries on occupational disease hazard detection and occupationalhazard assessments. It organized examinations of working stations expose tohazards, and occupational health examinations for 1,158 general workers, 115polishing laborers. Through cross-checks, 1,721 hazards were identi?ed, witha 100% recti?cation rate.

2024

Incidence rate of occupational disease:0

2024Total hours of occupational health and safety training:54,326hoursAverage hours of occupational health and safety training per person:

10hours or moreIn 2024, the company continued to strengthen safety education,with a safety education coverage rate of99%

AED device installed in a

public area of Jiuli

Occupational Health and Safety TrainingThe company has established the Safety Education and Training Policy, conducting tiered safety training (such as new employee induc-tion, special training for high-risk operations). It launches "Safety Month" campaign, and carries out occupational health and safetytraining that includes practical driving training, cardiopulmonary resuscitation (CPR) training, emergency rescue, andworking-at-heights training. In 2024, the company built a driving training base and conducted ground-operated driving training for atotal of 382 people. Additionally, the company also held "Safety Month" and "Fire Safety Month" activities, inviting the ?re brigade toprovide training to the team leaders, and workshop manager, enhancing the ?re safety awareness of front-line personnel.

Jiuli Invites Wuxing District Fire Rescue Brigade for Fire Emergency Knowledge TrainingIn November 2024, Jiuli held a National Fire Safety Awareness Month event, inviting the Wuxing District Fire RescueBrigade to conduct ?re emergency knowledge training. A total of more than 110 team leaders from different productionsites have participated in this training. During the training, instructors from the Wuxing District Fire Rescue Brigade,combining case studies of ?re incidents from recent years, detail explained ?re emergency rescue knowledge and theuse of emergency ?re station equipment. Through on-site demonstrations, employees learned the skills of using ?reequipment, further enhancing their ?re prevention awareness and ability to handle ?re emergencies, and fostering aculture of "Everyone owns ?re safety and Life is the top priority."

Fire safety training

The company's main goal for occupational health and safety is to "eliminate safety hazards, promote work safety, and ensure safety inproduction." At the same time, we have set clear management goals such as accident rates, injury and fatality rates, and equipmentintegrity rates, to protect the life and health of employees, improve safety management levels, and eliminate accidents and occupa-tional diseases.

Indicators and Goals

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Management Goal2024 ProgressReduce hazards, regularly distribute protective equipment.Emergency facility provision rate: 99%Protective equipment integrity rate: 100%Annual inspection rate for special equipment: 100%Equipment normal operation rate: 95%

Work-related deaths: 0Recordable work injuries: 2 peopleRecordable work injury rate: 0.04%Lost workdays due to work injury: 37 days

Work injury insurance and safety production liabilityinsurance investment amount: 5.747 million RMBCoverage rate for work injury insurance and safetyproduction liability insurance: 100%Reduce accident occurrence rate.Zero major accidents causing death or injury.Zero ?re and explosion accidents.Minor injury accident rate <5‰

Jiuli always stick to a people-oriented development philosophy and guarantees the legitimate rights and interests of its employees.The company strictly follows a fair and just recruitment process, creates a safe, fair, and respectful working environment, opposes allforms of discrimination and forced labor. Work contracts are signed in accordance with the law, and effectively protects the employees'right. At the same time, the company has established a competitive salary and bene?ts system, providing security and care to theemployees. The company also cares for the physical and mental health and career growth of employees, promoting the constructionof a diverse, equal, and inclusive corporate culture, and achieving the common progress of employees and the enterprise.

Protecting Employee Rights and Interests

We comply with laws and regulations such as the Labor Law of the People's Republic of China, Labor Contract Law of the People'sRepublic of China, and Employment Promotion Law of the People's Republic of China. we have formulated measures such as theHuman Resources Management Policy and Employee Recruitment and Employment Guidance, signing and performing labor contractsin accordance with the law. The company has clear and standardized employment procedures. During the recruitment process,background check are conducted as speci?ed in the guidance, and the identity documents of newly hired employees are strictlyreviewed. If false information is found, the labor contract can be terminated. The company resolutely prohibits the use of child laborand forced labor. In 2024, the company had no incidents of using child labor or forced labor, no labor arbitration cases throughout theyear, and no major employee complaints.

Employment Compliance

The company adheres to the principle of "recruiting on merit, combining ability with integrity, and making the best use of talent." It hasbuilt a recruitment system that is open, fair, and just. We ensure that in processes such as talent recruitment, training and develop-ment, performance management, and salary and promotion, there is no discrimination based on gender, age, ethnicity, birth place,religious belief, physical condition, or other factors. The company advocates for a diverse and inclusive corporate culture, respectingdifferences and embracing diversity, encouraging employees from different backgrounds and with different perspectives to worktogether and stimulate team innovation and vitality. At the same time, Jiuli thoroughly implements the spirit of the document issuedby the General Of?ce of the State Council, Action Plan for Promoting the Employment of Persons with Disabilities (2022-2024). Focusingon equal employment opportunities for disadvantage groups, increases efforts to recruit persons with disabilities, and providesemployment positions for those of working age who have the desire and ability to work.

Diversity and Equality

2024Total number of employees (including BK company): 4,509Employee Gender distribution （including BK）MaleFemale

14.15%

85.85%

Mid-level and above management personnel (e.g., managers, department heads): 221Management Level Gender Distribution

MaleFemale

15.38%

84.62%

Employees from ethnic minorities such as Yi, Miao, and Tujia:78Foreign employees: 1 Discrimination incidents: 0

Employee Age Distribution

15.26%57.45%27.29%

50 and above30Female30-50

Management level Age Distribution

23.98%75.11%0.91%

50 and above

30Female

30-50

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The company respects employees' freedom of association and democratic management rights, striving to protect their legitimate rightsand interests. In 2024, the company held 3 employee representative congresses with a total of over 300 participants. The employeerepresentatives reviewed and passed motives such as the "Collective Contract," "Wage Agreement" (draft), and special working hourapproval policies.

2024

Conducted Employee Satisfaction Survey in November 2024Surveyed3,385 people

Participation rate:

98.35%

Overall employee satisfaction rate: 97.57%An increase of 1.57% compared to 2023.

In terms of salary, bene?ts, and social security, the company has formulated regulatory documents such as the Regulations on Employ-ee Participation in Urban Employee Basic Medical Insurance, Regulations on Employee Housing Provident Fund Management, andRemuneration Management System. This ensures equal pay for equal work and the payment of ?ve social insurances and one housingfund. It also implements various remuneration models such as an annual salary system, a performance-based salary system, apiece-rate payment system, and a contract-based wage system according to different job positions. The company also adjusts theoverall salary level in a timely manner based on annual business performance to ensure that the remuneration system is bothexternally competitive and internally aligned with job characteristics. In terms of working hours, the company adopts standardeight-hour workday policy, and at the same time, implements a comprehensive working hour system based on production characteris-tics and actual needs. In 2024, the company paid employee wages and social insurance on time, with a total welfare expenditure of

81.6273 million RMB.

Remuneration and Bene?ts

The company has always adhered to a "people-oriented" management philosophy, placing high importance on the physical andmental health and comprehensive development of its employees. We are committed to creating a warm and caring work environment.In 2024, the company continued to improve its employee care mechanism, actively assisting 15 employees in dif?culty. Throughorganizing women's health check-ups and providing ?tness facilities, we provide physical and mental health to the employees, givesspecial care and attention to female employees, and creates a harmonious, positive, and inclusive corporate atmosphere, enhancingemployee satisfaction and happiness.

Employee Care

"Hercules Cup" Tug-of-War CompetitionIn 2024, Jiuli organized the fourth "Hercules Cup" tug-of-war competition. In the ?nal, the JCO factory team won therunner-up, and the large welded pipe factory team won the "Hercules Cup" championship for the second consecutiveyear in production division. The tug-of-war competition was not only a contest of strength but also a showcase of thecompany's team spirit and cohesiveness. It also added color to the employees' lives outside of work.

Championship awardsTug-of-War Competition

March 8th Goddess Day" EventIn March 2024, the Jiuli Group Labor Union held a "Uniting Hearts - Spicy Goddess, Passion fo Life" event for Internation-al Women's Day. We have organized varies activities, including "guess the song" mini-game, "She Power, She De?nes"inspirational story sharing session, and "Cake DIY". The event has successfully encouraged sharing and celebrationamong the female employees.

Group photo of the eventCake DIY

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"High-school graduate visit & Appreciation to Parents" EventIn 2024, Jiuli Group, along with its employees and their children who had taken the college entrance exam, joined theseventh " High-school graduate visit & Appreciation to Parents" event. The employees' children visited the Jiuli exhibi-tion center, experienced the Jiuli spirit, and were deeply inspired. The parents and children strengthened their bondingthrough completing craft projects together. This event is not only a recognition and reward for the hard work of theemployees but also where we express our sincere expectation and best wishes to the young talents who are about tostart the next chapter of their life.

The chairman presents gifts to the employees' children.

Retired Employees EventOn September 27, 2024, Jiuli Group helda retirement appreciation meeting tosincerely appreciate the employeeswho honorably retired in the thirdquarter. The company took portraits foreach retired employee to preserve theirbest moments at Jiuli. They also visitedthe Jiuli exhibition center together,looking back to Jiuli's 37-year develop-ment history. The company expressedits most sincere gratitude and blessingsto each retired employee, wishing thema happy, ful?lling, and healthy retire-ment.

"Those who govern the world value talent, and those who cultivate the world's talent value education." Jiuli has always regarded talentas the most precious resource of the enterprise, making the cultivation and development of talent a key pillar of our corporate strategy.The company adheres to the talent philosophy of "building the business with talent, prioritizing both integrity and ability, and makingthe best use of talent." We continue to focus on key areas such as optimizing the organizational structure, expanding career pathways,and talent develoopment. By improving the talent management as a whole, including talent cultivation, deployment, and retention, itcreates a positive culture that respects talent and encourages growth, continuously consolidating the intellectual foundation andtalent support for the high-quality development of the enterprise.

Empowering Employee Development

The company attracts talent through various channels such as campus recruitment and social recruitment. At the same time, thecompany also focuses on work with university research institutions to create an open and collaborative innovation ecosystem. Thecompany has established close cooperative relationships with universities such as Beijing University of Science and Technology andZhejiang University of Technology, forming a virtuous cycle through close industry-university-research collaboration, injecting continu-ous momentum into the high-quality development of the enterprise.

Talent Attraction

2024

Total new employees:629New full-time employees with a bachelor's degree or above:

Form an industry-university-research collaborationwith Beijing University of Science and Technology.

Jiuli and Zhejiang University of Technology'sMaterials Science and Engineering College build student

internship and practice base.2024 Third Quarter Retired Employees Appreciation Meeting

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In terms of career path development, the company has continued its "dual-channel" management system where the administrativemanagement channel and the technical channel are interconnected. Furthermore, the company has carried out individual talentcultivation plans for four work streams including production, technology, administration, and marketing. This not only promotes theimplementation of the career development channel system but also lays an important foundation for employees to have a clear careerdevelopment direction and promotion path.

An effective talent incentive mechanism is key to stimulating employee potential and promoting continuous organizational innovation.To this end, the company has also built a scienti?c and comprehensive incentive system. Through multiple means such as amarket-competitive salary structure, performance incentive policies, career development channels, and employee recognition mecha-nisms, it ensures that employees' contributions are fairly recognized and rewarded, achieving synergistic development betweenindividuals and the enterprise. The company has established incentive measures like ef?ciency awards and lean proposal awards toencourage employees to actively participate in daily management optimization, promoting a closed-loop management model of"discovering problems - solving problems - receiving awards" and enhancing the participation and sense of ownership of all employ-ees. Furthermore, to further improve the scienti?c and transparent nature of the incentive mechanism, since 2023, the company hasoptimized the "dual-channel" career development mechanism and integrated it with the remuneration system. The company hasannual performance review on employee professional competency. The review results serve as an important basis for salary adjust-ments and position promotions, providing strong support for employees' career growth paths.

Job System Construction

The company has always regarded talent as a key resource for enterprise development and continues to improve a diversi?ed trainingsystem that covers employees at all levels. Through a combination of online and of?ine methods, and coordination of internal trainingand external resources, the company systematically carries out various forms of learning activities such as course training, expertlectures, and hands-on learning. This continuously enhances the professional abilities and overall capability of employees, helpingthem to grow and develop in synergy with the enterprise.

Talent Training

Dual-Channel Mechanism:

Technical Talent: The company cultivates their professional skills to enhance their competitivenessin speci?c sub-?elds.Management Talent: The company encourages them to leverage their professional strengths,provides a development platform, and offers a management channel for promotion.

Y-shaped Dual Career Development Channels

Entry-level

Senior ManagerSenior ExpertMiddle Manager Expert

Key member

Experienced EmployeeJunior Employee

Management ChannelExpert Channel

2024

Number of employee training sessions:836 Total training investment: 4.97 million RMBAverage training hours per employee:

22.57hours

Average training hours for female employees:

11.03 hours

Average training hours for male employees:

30.99 hours

Average training hours for management:

11.62 hours

Average training hours for junior employees:

27.63 hours

Training plan completion rate:

100%

Spring Training for SalesTo strengthen the business knowledge of sales staff, improve their understanding of product features, R&D situations,and to improve their information security awareness, Jiuli held a spring training for all sales staff in 2024. The coursefocused on the future application of alloy products, the overview and quality control points of bimetallic compositepipes, information security, the application, market, and R&D of high-performance nickel-based alloy welding materials,the current situation and future development of high-ef?ciency heat exchange, and business etiquette. It providedcomprehensive training and guidance for the sales staff of the company and its subsidiaries.

Spring training sessionSales staff listening attentively during

the spring training

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Siemens Hand-on Technical TrainingIn April 2024, Jiuli held a Hand-on technical training on the application and common troubleshooting of Siemensfrequency converters, aiming to enhance the technical pro?ciency and practical skills of its technical staff and ensurethe application of theoretical knowledge into practical skills. To fully evaluate the training effectiveness, the companyconducted a rigorous test assessment for the 35 participating technical staff. Among them, 30 technical staff successfullypassed the assessment. The company recognized their achievement and awarded them completion certi?cates toencourage their progress in the technical ?eld.

Siemens Hand-on Technical Training

Seamless Pipe Production Process Technology TrainingTo improve the understanding and mastery of seamless pipe production process technology and production speci?ca-tions for relevant staff, Jiuli held a seamless pipe production process technology knowledge training in the summer of2024. This training covered all employees of the seamless pipe business unit and production department, ensuring thatevery employee received systematic and comprehensive training. The training content was tailored with actual produc-tion needs, explaining the important aspects of seamless pipe production in a simple and profound way. All participat-ing staff passed the assessment with excellent result.

Technical staff training session

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Jiuli actively undertakes its social responsibilities, participates in industry develop-ment to promote progress, builds a sustainable supply chain, assist the sustainabletransformation of industry partners, and actively engages in public welfare, contrib-uting to social harmony, development, and progress.

Assume Social Responsibility

For Positive Impact

Jiuli continuously strengthens its supply chain sustainability management capabilities, incorporating sustainable development into itssupply chain management system. It actively implements environmental and social risk management for its suppliers, helping theindustrial chain achieve a sustainable transformation.

Responsible Supply Chain

8384

The company has developed the Supplier Management Policy and Procurement Policy. The Supply Management system has Supplydepartment taking overall responsibility and Quality and Technical Departments as support functions to manage the end-to-endsupply parocess, including supplier development, performance evaluation, and supplier exit. This collaboration enhances supply chainresilience, promotes sustainable supply chain management, and fosters synergy with suppliers.

Governance

The company upholds the corporate mission of "Provide high-performance materials for the global industries " and actively establish-es partnerships with suppliers. We aim to improve supply chain product quality and enhancing supply chain resilience as our strategicgoals, and continuously strengthen the full life-cycle supplier management. At the same time, guided by the concept of sustainabledevelopment, we implement the national "dual carbon" strategy. We focus on building a responsible supply chain as at the key driverto deliver our sustainable strategy. We strengthen the management of suppliers' conduct in terms of environment, society, and gover-nance, promotes responsible mineral management, and jointly advances green supply chain construction.The company update "Risk Identi?cation and Assessment Form" annually to identify and develop countermeasures for risks in procure-ment, suppliers, warehousing, and product transportation.

Strategy

Impact, Risk, and Opportunity Management

Full Lifecycle Supplier Management System

Supplier Approval

The company conducts an initial evaluation of suppliers through the information survey forms they ?ll out. We assess suppliers inaspects including but not limited to business risk, quality risk, product risk, and social responsibility. Suppliers that passed the assess-ment is categorized as potential suppliers. Potential suppliers are then sub-categorized and on-site audit are conducted to furtherassess supplier's products quality against the requirements for supply. Suppliers with an on-site review score of 70 or above will beapproved as quali?ed suppliers. Those with a score below 70 are categorized as non-compliant supplier or have their supplier quali?-cations revoked if they are existing suppliers, which will not be allowed to supply to us. Non-compliant suppliers are not allowed toparticipate in re-audit within six months. At the same time, the company regularly conducts re-audit of suppliers, with the interval notexceeding 3 years.The company develops an annual supplier audit plan based on customer requirements, supplier evaluation results, and legal andregulatory requirements. In 2024, the company conducted audits on 6 suppliers and implemented timely corrective measures for anynon-conformities found during the audits.

Impact TypeImpact DescriptionCountermeasures

Assess production capacity, price, and transportation performance offoreign suppliers, placing orders with multiple suppliers for bulkorders.For critical materials that could cause a complete company shutdown,use long-term contract suppliers or develop inhouse productioncapability.

Use the same currency for import and export business to allow FinanceDepartment to arrange hedging activities.

Promote joint development with suppliers to drive the domesticproduction ofAvoid using a single supplierBalance the procurement ratio of imported and domestic products,based on the consideration on quality and price.Single source suppliersupply risk.

Supply chain sustainability.

Exchange rate ?uctuationrisk.

Risk

Impact TypeImpact DescriptionCountermeasures

Strengthen daily supplier management, improve the full life-cyclesupplier management system, strengthen supplier product qualitymanagement, optimize supply chain con?guration, and at the sametime enhance the assessment of suppliers' sustainable developmentcapabilities to ensure supply chain security and stability.

Select reliable warehouses and conduct joint inventory counts everyquarter.Promote the trial use of green, low-carbon raw materials with rawmaterial suppliers and promote customer certi?cation.

Strengthen warehouse receiving management and conduct regularinventory counts of warehouse materialsImprove the gate pass management system to ensure a closed loopweight management at entry and exit.Risk of theoretical weight vs.actual weight.

EU carbon tax and otherpolicy risks.

Risk of loss of goods inexternal warehouses.

Good supply chain securitycontributes to the stabledevelopment of thecompany's business,reduces procurement andlogistics costs, andimproves productionef?ciency.

Risk

Opportunity

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Supplier Assessment

The company conducts regular supplier assessment based on documents such as the "Raw Material Supplier Evaluation Form," "Auxil-iary Material Supplier Evaluation Form," and "Service Supplier Evaluation Form." It comprehensively evaluates suppliers from source topayment across key dimensions including price, quality, on-time delivery rate, emergency order response capability, complainthandling, and supply quantity. Based on the evaluation results, the company categorizes suppliers into excellent, quali?ed, restricted,and unquali?ed, and implements corresponding actions such as purchase through preferred supplier, feedback to supplier for correc-tive actions, cap the purchased volume, and freezing of accounts. In 2024, the company conducted performance evaluations for 112 rawmaterial suppliers. No restricted or unquali?ed suppliers were identi?ed, and timely corrective measures were implemented for quali-?ed suppliers with non-conforming items.

Promote Sourcing TransparencyWe continuously strengthens the integrity and compliance of its supply chain, opposing corruption and unfair trade. We collaborateswith suppliers to maintain a fair and competitive principle, achieving win-win cooperation and jointly building a standardized, just, andtransparent business environment. The company co- sign "Partner with Integrity commitment" with its suppliers, requiring them tocomply with anti-corruption requirements and regulating the conduct of both company and supplier personnel. It is clearly stated thataccepting bribes strictly prohibited by Jiuli in any form, and violators will be subject to disciplinary measures such as job transfer,performance management, or termination of the employment contract. Severe cases will be handed over to judicial authorities forhandling. The company opposes suppliers offering bribes through various means and will take measures such as issuing notices,warnings, suspending business, terminating contracts, and even revoking quali?cations for violators. By the end of 2024, referencingthe company's signing requirements, we have signed the " Partner with Integrity commitment " with over 410 suppliers.

Termination PolicyIn the product acceptance process, the company will immediately revoke the quali?cation of any supplier found to have intentionallyprovided counterfeit or substandard products, or to have seriously breached contract terms or refused to perform the contract withoutforce majeure. Such suppliers will be banned from the quali?ed supplier list for ?ve years.

Supply Chain Sustainable Development ManagementThe company integrates ESG management into the entire procurement process, including supplier development, selection and evalua-tion, management and audit, and exit, covering the full lifecycle management. In the supplier assessment, the "Supplier Social Respon-sibility Evaluation Form" is used to assess a total of 50 items related to the code of conduct. The company uses methods such as suppli-er self-assessment, on-site auidt, and remote audits to screen and approve suppliers with a score of 70 or above as quali?ed. At thesame time, the company will review the supplier's business ethics, intellectual property, labor, safety, and environmental records overthe past 3 years by checking the supplier survey form and relevant public websites for any complaints or penalties from the govern-ment, customers, or other related parties.The company speci?es ESG-related clauses in its procurement contracts and incorporates ESG into supplier performance assessments.Suppliers with good ESG performance will be the preferred supplier to gain more purchase volume and priority in business coopera-tion opportunities. For suppliers with poor ESG performance, especially those who violate ESG bottom lines, a deadline for recti?cationwill be required, while their procurement volume will be reduced or business cooperation opportunities will be limited until thepartnership is terminated. For suppliers who violate environmental, labor, and personnel-related clauses, the company will suspendtheir quali?cations and prohibit re-assessment for one year. In cases of serious violations, their quali?cations will be revoked.

2024Number of suppliers found to have actual or potential signi?cant negative ESG impacts:0

Jiuli Supplier Code of Conduct

Prohibition of forced labor,Prohibition of child labor,Lawful arrangement of work andrest times,Compliant provision of salary andbene?ts,

Upholding integrity and honesty,Protection of intellectual property,Adherence to fair trade, marketing, and competition standards, Protection ofwhistleblower identity and establishment of a no-retaliation policy,Responsible sourcing of minerals,Protection of private information

Provide of healthy and safe working conditions,Provide of clean living conditions,Emergency readiness,Requirement for employees to comply with safety rulesObtaining and maintaining environmental permits and reports,Compliance with product environmental requirements,Prevention of environmental pollution,Energy saving and emission reduction

Compliance with company commitments and management responsibilities,Risk assessment and management,Management of upstream suppliers,Internal audits and management reviews

Against violence, harassment, andother inhumane treatmentAnti- discrimination,Respect for freedom of association andcollective bargaining rightsLabor and Human Rights

Health and Safety

EnvironmentalProtection

Business Ethics

Management Systems

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Green Supply ChainWe believe it is important that the suppliers has environmental protection built in their corporate culture and business philosophy,and are committed to building a green supply chain. When selecting suppliers, we look at to their low-carbon strategies and products,purchasing products that use energy-saving and carbon-reducing technologies such as zero-carbon cold rolling and internal circula-tion of coke oven gas to replace natural gas. Selected suppliers have obtained ISO 14001 environmental management system certi?ca-tion.

Utilize Information TechnologyImprove production and

logistics ef?ciency

Product Design

Reduce energyconsumption during use

extend service life

packaging

low-carbon packagingreduce packaging procedures

Raw Material Input

Low-carbon raw materialsrecyclable materials

recycle and reuse

increase recycled

and reuse ratereduce carbon emission

through recycling

Production

Energy-saving through

production processreduce raw material wasteLogistics Management maintain reasonable inventoryclean energy substitution

Establish a low-carbon supply

chain evaluation system

Conduct supplier carbon

disclosure

Selection and assessment

Build a Low-Carbon Supply Chain System

Jiuli was selected as a "Green Supply Chain Management Enterprise" for the year2024 by the Ministry of Industry and Information Technology of the People's Republic of China.

[Honor]

Supplier Product Quality Management

The company strictly manages the quality of supplier products. During the supplier approval phase, the company requires all rawmaterial suppliers to have ISO 9001 quality management system certi?cation, and all raw material and service suppliers must beequipped with suf?cient quality inspection capabilities and have acceptable business performance in supplying the same material.When necessary, the company will collect samples for testing and evaluation. Based on the various requirements of the materials orservices and the supplier's quality-related documents and requirements, etc., we formulate "Auxiliary Material Procurement andAcceptance Criteria" or related technical requirements for different categories of suppliers to clearly states the acceptance criteria.

Supplier Training

We build long-term relationships with suppliers to create a sustainable supply chain and jointly respond to market ?uctuations.Through collaboration in technical and training sessions, we developed better understanding of each other's needs and challenges,improving the supply chain's agility and resilience, and jointly improve product quality and performance. This enables the company tomeet market demand and achieve our strategic development goals. It also promotes win-win situation with suppliers, maintaining thecompany's competitiveness in the market and creating maximum value for customers. During the reporting period, the companyorganized monthly on-site collaboration sessions with suppliers for discussion and learning.

The company takes ensuring the quality, stability, and safety of its supply chain products as its main goal for supply chain management.At the same time, we set relevant indicators for raw material defect rate, on-time delivery target, and ESG evaluation, and continuouslymonitors the implementation progress to enhance supply chain resilience.Indicators and Goals

Management Goal2024 Progress

Strengthen supply chain product qualitymanagement, ensure the stable operation ofthe supply chainRaw material acceptance rate (quality) 98%On-time delivery rate of raw materials 90%

The company has a total of 1,410 suppliers, of which 570 arelocal suppliers in Zhejiang, accounting for 40% of the totalnumber of suppliers.Raw material acceptance rate(quality) 99.32%On-time delivery rate of raw materials 96.44%

100% of new suppliers were screened using environmentalstandards.100% of new suppliers were screened using social standards.Strengthen supplier ESG management,enhance supplier access thresholds and ESGperformance evaluation mechanisms

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Jiuli actively participates in industry connection to drive industry development. We have attended industry events and participated inthe formulation of industry standards and has led or participated in the formulation of more than 40 national and industry standards,contributing to the development of the industry.

Industry Connection

The company actively responds to the government's call, taking the Jiuli Group as a uni?ed entity to earnestly ful?ll its social responsi-bilities and promote sustainable corporate development. In 2024, the company continuously developed public welfare projects,promoting the spirit of volunteering and hardworking through supporting rural revitalization, practicing vocational education, engagingin charitable donations, and participating in volunteer services. The company proudly undertakes the responsibilities of a corporatecitizen, striving to contribute social value and contribute to the harmonious development and progress of society.

In terms of rural revitalization, Jiuli Group continued to carry out party-building co-construction and village-enterprise pairingassistance activities with Tushan Village in Shuanglin Town. Jiuli subsidiary, Qiancheng Company, also carried out village-enterprisepairing activities with Yushan Village in Daixi Town, and donated 20,000 yuan to support the construction of Yushan Village.

Ful?lling Social Responsibility

8990

2024

Led or participated in national standards formulation: 3Industry/group standards forumation: 5 Filed enterprise standards: 8Jiuli Participates in the Second PetrochemicalEquipment Industry Standardization ConferenceIn August 2024, Jiuli's Chairman, Li Zhengzhou, participated in the "Second Petrochemical Equipment Industry Standard-ization Conference" hosted by the China Petroleum and Petrochemical Equipment Industry Association. During theconference, Liu Hongbin, President of the China Petroleum and Petrochemical Equipment Industry Association, togetherwith more than 100 experts and representatives from the petrochemical equipment industry visited Jiuli. The grouptoured the Jiuli Exhibition Center, Research Institute, and other locations, gaining a detailed understanding of Jiuli'sdevelopment history, industrial system, production processes, and product application areas. They experienced closelythe efforts and achievements made by Jiuli in product innovation, technological innovation, and standard innovation.

Participation in the China Society for Metals Carbon Neutrality BranchOn November 27, 2024, the inaugural meeting of Carbon Neutrality Branch of the China Society for Metals was held inBeijing. With the theme of practicing the carbon neutrality development strategy, promoting the coordinated develop-ment of carbon neutrality and new productive forces, and boosting future economic and social development, theconference focused on discussions and exchanges on basic theories around “carbon neutrality”, and the discussion ofdevelopment and application of cutting-edge technologies and key equipment. The aim was to accelerate the researchand development of low-carbon technologies and the construction of an ecological chain, and jointly explore the pathof green development. The deputy director of the Jiuli Research center attended the conference as the company repre-sentative. The chief engineer and director of the Jiuli Research center, was successfully elected as a member of the ?rstcommittee of the Carbon Neutrality Branch of the China Society for Metals based on their professional in?uence in theindustry.

In 2024, Jiuli Group donated a total of 2.95 million yuan and wasjointly awarded by the Huzhou Charity Federation and the CharityUnited Association with “Annual Pioneer Company Member”

[Honor]

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We upholds our value of giving back to society and caring for education, actively cooperates with the Huzhou Municipal EducationBureau and the Municipal Charity Federation, deeply participates in vocational education public welfare projects, and invest in thecultivation and growth of talents. Taking our industrial advantages, we provide educational resources, and assists in the practicalimplementation of "science education" related policies. Through the actions, the company not only create pathways for young peopleto succeed, but also nurtured a large number of young talents with practical skills and innovative abilities for society, fully demonstrat-ing the company's responsibility and commitment in the ?eld of public welfare and charity.

Assisting Education

In 2024, Jiuli Group further spread the concept of charity, promoted the traditional Chinese virtue of helping those in need, and activelyorganized and participated in various types of donation activities. In 2024, Jiuli Group's investment in the ?eld of public welfare andcharity amounted to 2.95 million RMB.Public Welfare Donations

On January 6, 2025, Jiuli once again won the title of "Huzhou's Most Caringand Donating Enterprise."[Honor]

Shuanglin No. 2 Middle School Teachers and Students Visit Jiulifor a Science EducationJiuli actively cooperates with the Education Bureau's "science education" related policies and has become an importantacademician science education base. In October 2024, teachers and students from Nanxun Shuanglin No. 2 MiddleSchool came to Jiuli Group for a visit, getting a close-up experience of how "amazing steel pipes" are created. This activi-ty enhanced the students' interest in science and promoted the cultivation of technology-oriented talents.

Group photo of Shuanglin No. 2 MiddleSchool Teachers and Students’ Juli Visit

Blood Donation ActivityOn October 19, 2024, Jiuli Group organized its 2024 annual blood donation activity, with a total of 50 employees partici-pated. 2024 is the 25th year that Jiuli Group has carried out blood donation activities. The people of Jiuli act on theirsense of responsibility, practicing their reverence for life and their responsibility to society.

Jiuli Group Blood Donation Activity Photo

The 6th "Jiuli Craftsmanship" Vocational Education Talent AwardOn November 26, 2024, the award ceremony for the 6th "Jiuli Crafts-manship" Vocational Education Talent Award was held at ZhejiangInformation Engineering School, where relevant leaders presentedawards to 31 award-winning teachers and students. The "Jiuli Crafts-manship" Vocational Education Talent Training Award (Charity) Fundwas jointly established by Jiuli Group, the Municipal Education Bureau,and the Municipal Charity Federation in 2017. So far, a total of 72students and 83 supervising teachers in the city have received awards.This initiative re?ects Jiuli people's unremitting pursuit of the spirit ofmodel workers and craftsmanship, and shows the company's advocacyof skills and respect for talents.

The 6th "Jiuli Craftsmanship" Vocational

Education Talent Award Ceremony

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To further ful?ll its corporate social responsibility and promote the spirit of volunteer service, Jiuli Group actively organizes variousvolunteer service activities, conveying the warmth of the enterprise with practical actions, serving the public, and letting volunteersmeasure warmth with their footsteps and interpret their commitment with their actions.Volunteer Activities

Charity Day Donation" Activity“Love carries us forward and every bit counts”. In mid-to-late September 2024, Jiuli Group launched the 2024 "CharityDay Donation" activity throughout the company. A total of 3,654 people participated in this fundraising activity, with adonation amount of 391,725 yuan. The people of Jiuli contributed to the cause of charity with practical actions, creatinga strong atmosphere of "everyone is charitable, everyone does good."

"Charity Day Donation" Activity Photo

Learning from Lei Feng, Delivering LoveTo promote the spirit of Lei Feng in the new era and inherit the traditional Chinese virtue of respecting and loving theelderly, on March 1st, on the occasion of the 61st Lei Feng Memorial Day, the Party Committee of Jiuli Group organizedvolunteers to go to the New Era Civilization Practice Station in Loucun Village to carry out the theme activity of "Learningfrom Lei Feng in Spring, Sending Warmth and Love," sending care and blessings to the elderly over 90 years old.

Photo of Learning from Lei Feng Activity Members

Visiting the Elderly on the Double Ninth FestivalDeep affection for the Double Ninth Festival, warming hearts with visits. On October 9, 2024, volunteers from the PartyCommittee and Labor Union of Jiuli Group went to Zhenggang Village in the high-tech zone to carry out a visit to theelderly with the theme of "Practicing Zhejiang's Etiquette, Respecting and Loving the Elderly, and Inheriting ChineseVirtues," to make the elderly in the village fully feel the care and warmth from the caring enterprise. Jiuli Group hasalways dedicating themselves in giving back to the society, being enthusiastic about public welfare, and deeply practic-ing the "Ten Etiquettes of Zhejiang," striving to build a civil and happy atmosphere.

Photo of Jiuli Group Volunteers Visiting the Elderly on the Double Ninth Festival

2024Registered volunteers: 2,200 Total investment in volunteer services: 50,000 RMBEmployee volunteer service hours:

38,890hours

Average volunteer service hours per person:

18 hours

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Environmental matters

Key ESG Performance Disclosure 2024

9596

Environmental Protection Capital InvestmentNumber of Environmental Trainings ConductedNumber of Participants in Environmental TrainingDirect (Scope 1) Greenhouse Gas EmissionsIndirect (Scope 2) Greenhouse Gas EmissionsTotal Greenhouse Gas Emissions (Scope 1 and Scope 2)

Greenhouse Gas Emission Intensity (Scope 1 and Scope 2) (per unit of operating revenue)Greenhouse Gas Emission ReductionsCarbon Emissions per Unit of Industrial Added ValueElectricityNatural GasSteamIndustrial Added ValueComprehensive Energy ConsumptionEnergy Consumption per Unit of Industrial Added ValueTotal Water ConsumptionWater Use IntensityTotal Water WithdrawalTotal Wastewater DischargeDischarged Wastewater COD (Chemical Oxygen Demand)Discharged Wastewater Ammonia NitrogenTotal Waste Gas EmissionsNitrogen Oxides (NOx) EmissionsSulfur Oxides (SOx) EmissionsVolatile Organic Compounds (VOCs) EmissionsSuspended Particulate Matter (PM) EmissionsTotal Waste GeneratedTotal Hazardous Waste Generated

10,000 RMBTimesPerson-timesTonnes of CO2 equivalentTonnes of CO2 equivalentTonnes of CO2 equivalent

Tonnes of CO2 equivalent /

10,000 RMB

Tonnes of CO2 equivalent

Tonnes / 10,000 RMB10,000 kWh10,000 m?Gigajoules (GJ)10,000 RMBTonnes of standard coalTonnes of standard coal /10,000 RMBTonnesTonnes / Tonne of output

Tonnesm?TonnesTonnes

m?TonnesTonnesTonnesTonnesTonnesTonnes

4,090

3,98620,24873,39293,640.05

0.109

996.57

0.46

12,972

99,414204,93852,742.52

0.26

1,102,500

8.6

873,429114,389

26.04

0.56

277,842

1.69

0.05

0.19

23,0767,076

5,980

4,68822,67678,227100,902.93

0.092

991.86

0.41

14,8811,048114,467244,678.3060,252.57

0.25

1,151,126

8.4

861,601208,380

39.89

2.76

159,362

12.22

0.24

1.3

24,546.718,422.71

Subjectmatter

Subject Matter InformationUnit20232024EnvironmentalComplianceManagement

ClimateChangeResponse

EnergyManagement

WaterResourceManagement

WasteManagement

Social matters

Work Safety Investment

Investment in Work Injury Insurance & ProductionSafety Liability InsuranceInvestment in Work Injury Insurance & ProductionSafety Liability InsuranceNumber of Employees Covered by OccupationalHealth and Safety Management SystemCoverage Ratio of Employees by OccupationalHealth and Safety Management SystemNumber of Recordable Work-related InjuriesRecordable Work-related Injury RateLost Work Days Due to Work-related InjuriesNumber of Work-related FatalitiesNumber of Occupational Disease CasesOccupational Disease Incidence RateTotal Safety Training HoursAverage Safety Training Hours per CapitaTotal Number of Employees

Number of Ethnic Minority EmployeesRatio of Ethnic Minority EmployeesNumber of Disabled EmployeesRatio of Disabled EmployeesNumber of Locally Hired Employees

10,000 RMB10,000 RMB％People%People%DaysPeoplePeople%HoursHoursPeople

%%%%%People

%People

%People

FemaleMaleBelow 3030-50 years oldAbove 50

1,520.50

205.23

4,126

0.07

41,970

4,126

14.49

85.51

25.02

58.63

16.35

/////

1,722.5

574.7

4,509

0.04

54,326

4,509

14.15

85.85

27.29

57.45

15.26

1.91

1.17

3,219

Occupational

Healthand Safety

Subject

matter

Subject Matter InformationUnit20232024

Total Non-hazardous Waste GeneratedTotal Waste Recycled and ReusedTotal Waste DisposedProportion of Renewable Resource Consumptionto Total Consumption

TonnesTonnesTonnes%

16,0006,879

10.03

16,1248,161

8.68

Subject

matter

Subject Matter InformationUnit20232024

WasteManagement

Employee Ratio by GenderEmployee Ratio by Age

TalentEmploymentandDevelopment

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9798

Subjectmatter

Subject Matter InformationUnit20232024

%%

//

24.72

72.36

ManagementEntry Level

Ratio of Employees ReceivingRegular Performance and CareerDevelopment Reviews Category

10,000 RMB

People10,000 RMB

%/%/////%///%%%%10,000 RMB

/RMB

HoursHours

7,784.30

/33,934.50

4.2

12.22

97.60

1,016

/

/

2,16020,00038,880

8,162.73

36,172.89

3.46

12.40

98.26

1,410

40.43

2,20050,00038,890

Amount of Welfare Bene?ts DistributedNumber of Employees in Need AssistedR&D Investment AmountR&D Investment as a Percentage of Main Business RevenueNumber of R&D PersonnelR&D Personnel RatioNumber of New Invention Patent ApplicationsNumber of New Invention Patents GrantedNumber of New Utility Model Patent ApplicationsNumber of New Utility Model Patents GrantedTotal Number of Valid PatentsCustomer SatisfactionNumber of Customer ComplaintsNumber of Customer Complaints ResolvedTotal Number of SuppliersSupplier Localization RatioLocalized Procurement Ratio

Percentage of new Suppliers Screened withEnvironmental Standards

Percentage of New Suppliers Screened with Social Standards

Total Charity donation

Number of Employees Participating in Volunteer Activities

Company's Total Investment in Volunteer ActivitiesTotal Employee Volunteer Service HoursAverage Volunteer Service Hours per Employee

EmployeeRightProtection

Research

andInnovation

Customer

Service

Supply

ChainManagement

Public Welfare

Ratio of Locally Hired EmployeesTotal Number of Management Staff

Total Number of New Employees

Total Number of Career Development TrainingsTotal Investment in Career Development TrainingEmployee Career Development Training Coverage Rate

Average Career Development Training Hours per Employee

Percentage of Employees Receiving RegularPerformanceand Career Development Reviews

%People

%

%

%

%

%People

%

%

%

%

%Times10,000 RMB

％Hours

%

%

%

/

11.27

88.73

0.49

80.39

19.12

12.31

87.69

59.72

39.06

1.22

484.37

12.15

97.85

//

78.72

15.38

84.62

0.91

75.11

23.98

10.97

89.03

63.91

35.45

0.64

22.57

97.09

14.04

83.05

Subjectmatter

Subject Matter InformationUnit20232024

Management Staff Ratioby GenderManagement Staff Ratio by Age

FemaleMaleBelow 3030-50 years oldAbove 50New Employee Ratio by GenderNew Employee Ratio by Age

FemaleMaleBelow 3030-50 years oldAbove 50

FemaleMale

Ratio of Employees Receiving RegularPerformance and CareerDevelopment Reviews by Gender

TalentEmployment

andDevelopment

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99100

TimesTimes

%TimesPeoplePeoplePeopleTimesTimesTimesTimesTimesPerson-times

1,800

CorporateGovernance

Business

Ethics

Number of Shareholders' General Meetings HeldNumber of Board of Directors' Meetings HeldAttendance Rate of Board of Directors' MembersNumber of Supervisory Committee Meetings HeldNumber of Board of Directors' MembersNumber of Independent DirectorsNumber of Female DirectorsNumber of Audit Committee MeetingsNumber of Remuneration Committee MeetingsNumber of Nomination Committee MeetingsNumber of Strategic Decision Committee MeetingsNumber of Anti-corruption Trainings ConductedNumber of Participants in Anti-corruption Training

Governance Matters

INDEX

Report SectionGRI Standards

Shenzhen Stock Exchange GuidelineNo. 17 ? Sustainability Report(Trial)

About This ReportChairman's AddressAbout JiuliSustainability Management

Key Performance TableIndex

2-1、2-2、2-3、2-42-6、2-16、2-17、2-222-1、2-62-23、2-29、3-1、3-2、3-3

—

3-3、302-1、302-3、302-4、302-52-27、3-3

3-3、302-4、304-23-3

2-23、2-24、2-25、3-3—

3-3、404-1、404-2、404-3

3-33-3、203-1、203-2、413-1——

Articles 4, 6——Articles 5, 9, 53

—

Articles 20, 34-36Articles 29

Articles 29, 34,36Articles 41, 42

Articles 44, 47Articles 48

Articles 50

—Articles 38, 40——

Sound Governance,Building SolidFoundation forDevelopment

Low-Carbon andEnvironmentalProtection, Buildinga New Chapterof Sustainability

Upholding Quality,Innovating Leadsthe Future

Safety First,EmpoweringEmployeeDevelopmentResponsiblePartnership,Gathering a Forcefor Good

2-9、2-10、2-11、2-12、2-13、2-20、2-23、2-24、2-25、2-26、3-3、205-1、205-2、205-3、207-1、405-1

2-27、3-3、301-2、303-1、303-2、303-3、303-4、303-5、305-7、306-1、306-2、306-3、306-4、306-5

3-3、201-2、302-1、305-1、305-2、305-4、305-5

2-23、2-24、2-25、2-27、3-3、416-2、418-1

2-27、3-3、403-1、403-2、403-3、403-5、403-6、403-7、403-9、403-102-7、2-23、2-24、3-3、401-1、401-2、407-1、408-1、409-12-23、2-24、2-25、2-27、3-3、204-1、308-1、308-2、414-1、414-2

Articles 2, 51, 53, 54,55

Articles 30-31,33-35,37

Articles 20-28

Articles 44, 47,48

Party BuildingLeads DevelopmentOptimizing Energy Use

EnvironmentalCompliance Management

PromotingClean ProductionPractice GreenOperationContinuous R&Dand InnovationOptimizing theCustomer ExperienceProtect InformationSafey

EmpoweringEmployee DevelopmentIndustry ConnectionFul?lling SocialResponsibility

StrengtheningCorporateGovernanceEnhancingClimate Resilience

Upholding ProductQuality

ProtectOccupational HealthProtectingEmployee Rightsand Interests

ResponsibleSupply Chain

Articles 50Articles 49-50

Articles 44-45

Subjectmatter

Subject Matter InformationUnit20232024

SustainabilityReport 2024Sustainability

Report 2024