创新新材: 2023年度环境、社会及管治(ESG)报告(英文版)

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Innovation New Material   2023 Environmental, Social and Governance Report
                                                                                                Innovation New Material
                                                                                                Technology Co., Ltd.
                                                                                                Environmental,
                                                                                                Social and
                                                                                                Governance
                                                                                                Report
       Email: zqb@innovationmetal.com
       Tel: 010-66536198
       Address: No. 1808, Floor 18, Excel Centre, Wudinghou Street, Xicheng District, Beijing
Innovation New Material   2023 Environmental, Social and Governance Report
Contents
                                                             Message from the
About the Report                            01                                                        03    Key ESG Performances                    89    GRI Standards Index               94
                                                             Chairman
                                                                                                                                                                    Unite Efforts and Join Hands
                   About Innovation New                                      Sustainable Development                     Green-driven Innovation and                      to Forge Development
                                Material                                                 Management                         Product-led Development                                     Together
Company Profile                               07             Innovation Pioneering the Green                Diving Deep into Technological                Empowering Employees' Growth        69
                                                             Aluminum Journey                               Innovation
Company Culture                               09                                                                                                          Protecting Work Safety              79
                                                             ESG Governance                           16    Striving for Excellent Quality           57
Honors & Awards                               10                                                                                                          Facilitating Harmonious Social
                                                             Communications with Stakeholders         17    Providing Quality Services               60   Development
                                                             Materiality Issue Analysis               19                          Practicing Sound
                                                                                                                            Management to Promote
                                                             Innovation New Material in Figures       20                      Responsibility-Driven
                                                                                                                                     Development
                                                                                                            Improving Risk Prevention and Control
                                                                                                            Capabilities                             63
                                                                              Pursuing Green Cycle to
                                                                                      Promote Green
                                                                                                            Strengthening Business Ethics
                                                                                        Development                                                  63
                                                                                                            Construction
                                                                                                            Strengthening Patent and Brand
                                                             Designing Green and Low-carbon                 Protection
                                                             Products
                                                                                                            Stepping Up Information Security
                                                              Actively Responding to Climate Change    41   Efforts
                                                             Practicing Environmental Protection       43   Building a Sustainable Value Chain       65
Innovation New Material    2023 Environmental, Social and Governance Report
About the Report                                                                                                          Feedback on the Report
                                                                                                                          This Report can be downloaded and viewed on the Company's website (http://www.innovationmetal.com/) and the
                                                                                                                          Shanghai Stock Exchange's website (http://www.sse.com.cn/ ). If you have any valuable suggestions on the Report or
Introduction
                                                                                                                          would like to access to other relevant information, please contact us through the following channels:
                                                                                                                                    Email: zqb@innovationmetal.com
The Report is the first Environmental, Social and Governance report prepared and issued by Innovation New Material
Technology Co., Ltd. (hereinafter ''Innovation New Material'', ''the Company'' or ''We''). The Report focus on material
ESG topics of concern to stakeholders, and is intended to disclose the Company's strategies, practices and
performance in Environmental, Social and Governance (hereinafter ''ESG'') in an objective, just and transparent                     Tel: 010-66536198
manner to promote stakeholders to gain a more comprehensive understanding of Innovation New Material.
                                                                                                                                    Address: No. 1808, Floor 18, Excel Centre, Wudinghou Street, Xicheng District, Beijing
Reporting Scope                                                                                                           Index of Abbreviations for Company Members
The scope of the Report includes Innovation New Material and its subsidiaries. The statistical scope of data in the
Report has been marked therein and data is calculated in accordance with national regulations or international
                                                                                                                                     Company abbreviation                                          Full name of company
standards. Unless otherwise stated, the amounts in the Report are denominated in RMB.
                                                                                                                               Innovation New Material, the Company, we                   Innovation New Material Technology Co., Ltd.
                                                                                                                                           Innovation Metal                             Shandong Innovation Metal Technology Co., Ltd.
                                                                                                                                         Innovation Precision                          Shandong Innovation Precision Technology Co., Ltd.
Reporting Period                                                                                                                          Suzhou Chuangtai                                  Suzhou Chuangtai Alloy Material Co., Ltd.
                                                                                                                                      Shandong Sheet Materials                        Shandong InnovationCreative Sheet Materials Co., Ltd.
The information and data contained in the Report covers the period from 1 January 2023 to 31 December                               Yuanwang Electrical Technology                     Shandong Yuanwang Electrical Technology Co., Ltd.
has been extended forward and backward as appropriate.                                                                        Shandong Chuang Yuan Renewable Resources               Shandong Chuang Yuan Renewable Resources Co., Ltd.
                                                                                                                                       Chuanghui New Material                        Shandong Chuanghui New Material Technology Co., Ltd.
                                                                                                                                       Chuangfeng New Material                      Shandong Chuangfeng New Material Technology Co., Ltd.
Basis of Preparation
                                                                                                                                          Innovation Beihai                                   Shandong Innovation Beihai Co., Ltd.
                                                                                                                                          Yunnan Innovation                                     Yunnan Innovation Alloy Co., Ltd.
                                                                                                                                           QingDao Li Wang                               QingDao Li Wang Precision Technology Co., Ltd.
The Report is prepared based on the Global Reporting Initiative Reporting Standards (GRI Standards), the
                                                                                                                                      Inner Mongolia Innovation                         Inner Mongolia Innovation New Materials Co., Ltd.
Self-discipline Regulation of Listed Companies No. 1 - Standardized Operation by the Shanghai Stock
Exchange and the United Nations Sustainable Development Goals (UN SDGs).                                                              Inner Mongolia Lightweight                  Inner Mongolia Innovation Lightweight New Materials Co., Ltd.
Innovation New Material     2023 Environmental, Social and Governance Report
Message from the Chairman
                                                                                                                            A year of accelerating technological innovation and refining quality management.
                                                                                                                            We firmly believe that innovation is the persistent driver for the Company's development, and that quality is the
                                                                                                                            solid foundation of brand reputation. Centering around the core principles of technological innovation and high-
                                                                                                                            quality development, we have continuously improved our innovative capabilities and production efficiency. To
                                                                                                                            maintain a leading position in the fierce market competition, we have introduced and cultivated technical talents
                                                                                                                            while increasing investment in technological innovation and enhancing the level of intelligence in the production
                                                                                                                            process. We have been continuously strengthening our customer-centered philosophy and improving our quality
                                                            As time passes, opportunities are also constantly               management system to ensure that every product and service meets or even exceeds customer expectations, by
                                                            emerging and evolving. The year 2023 witnessed the              which we have established a good brand image in the market. Our commitment to innovation-driven and quality-
                                                            rapid progress of Innovation New Material following its         first principles has injected strong momentum into the sustainable and healthy development of the Company and
                                                            listing on the capital market, and a year when the              the entire industry, which manifest our well-founded confidence and enduring pursuit for the future development
                                                            results of our development are realized. Over the past          of the industry.
                                                            year, we have adhered to the principles of sharing
                                                            future with our employees, growing together with our
                                                            customers, developing alongside our partners, and               A year of strengthening corporate governance and forging an excellent brand.
                                                            progressing in sync with society. We have achieved
                                                            remarkable successes in low-carbon development,
                                                            product manufacturing, technological innovation, and            We have a profound understanding that standardization is the cornerstone of the Company's steady development
                                                            market expansion, which laid a solid foundation for the         and have invested substantial effort in it. We have always adhered to the principle of honest operation by
                                                            Company's long-term development.                                continuously strengthening internal control and risk management to ensure the rationality and compliance of
                                                                                                                            corporate decisions. We firmly uphold a fair and competitive market order with a focus to respect and protect
                                                                                                                            intellectual property rights, creating long-term value for shareholders and customers. We have established long-
                                                                                                                            term and stable cooperative relationships with our suppliers to jointly build a sustainable ecosystem along the
                                                                                                                            industrial chain, promoting the healthy development of the industry. In a complex and evolving market, we have
                                                                                                                            adhered to our original aspirations, operated with integrity, and pressed forward steadily, continuously creating
                                                                                                                            sustainable value for society.
                                                                                                                            A year of fulfilling social responsibilities and building a harmonious community.
                                                                                                     Mr. Cui Lixin
                                                                                                                            As a company full of warmth, we have assimilated social responsibilities into our corporate culture. We recognize
                                                                         Chairman of Innovation New Material                the hard work of every employee and safeguard their workplace rights and interests while enabling their growth
                                                                                                                            and development, to create a working environment characterized by happiness and a sense of belonging.
                                                                                                                            Furthermore, we actively participate in social welfare undertakings to give back to society through public welfare
                                                                                                                            aid, charity donations, and other means. In doing so, we have promoted positive energy and brought warmth and
                                                                                                                            hope to society. We hold the firm belief that fulfilling corporate social responsibilities is our inescapable duty, which
     A year of deepening commitment to green development and leading the low-carbon era.                                    not only benefits employees but also serves as a sincere contribution to society, driving our sustained development.
     Facing the severe challenges of the global climate change, we have been firmly committed to the path of green        We will unswervingly advance ESG practices in our future development, with greater determination and investment in
     development by building a comprehensive development system of green energy, green production, green                  promoting green development, fulfilling social responsibilities, and strengthening corporate governance to capture
     emissions, green products, and green recycling, integrating the philosophy of green development throughout the       the development trends of the new era and accurately seize strategic opportunities. We will continue to collaborate
     entire lifecycle of our products. We have made significant progress in the construction of our industrial chain of   with global partners, with a more open mindset for change and more solid advances for the future, to jointly explore
     green aluminum during the year. Leveraging the unique advantages in resources of Yunnan and Inner Mongolia, we       new paths for the Company's sustainable development. In this process, we will work closely with all sectors of society
     have made full use of hydroelectric, wind and solar power aluminum to continue to expand our presence in the         to anchor our goals and unite our efforts. We will stride forward on the journey of ''becoming an industry leader and
     field of secondary aluminum. Additionally, we have boosted energy conservation and emission reduction in the         building a century-old enterprise'' to create maximum value for shareholders, customers, employees, society, and
     production process while increasing the proportion of renewable energy, which significantly reduced carbon           other stakeholders, ushering in a more brilliant and glorious future!
     emissions throughout the product lifecycle. By doing so, we have provided lightweight and environmentally
     friendly aluminum alloy products to numerous industries domestically and abroad, contributing innovative
     strength to the sustainable, green, and healthy development of the aluminum industry.
                                                                             About          Sustainable   Pursuing Green   Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material   2023 Environmental, Social and Governance Report   Innovation     Development   Cycle to         Innovation and   Management to             Join Hands to
                                                                             New Material   Management    Promote Green    Product-led      Promote Responsibility-   Forge Development
                                                                                                          Development      Development      Driven Development        Together
About
Innovation New
Material
                                                                                                                                About          Sustainable       Pursuing Green      Green-driven       Practicing Sound           Unite Efforts and
Innovation New Material       2023 Environmental, Social and Governance Report                                                  Innovation     Development       Cycle to            Innovation and     Management to              Join Hands to
                                                                                                                                New Material   Management        Promote Green       Product-led        Promote Responsibility-    Forge Development
                                                                                                                                                                 Development         Development        Driven Development         Together
Company Profile                                                                                                                 Milestones
                                                                                                                                               chapter, as we solidified foundations for a century-old enterprise
Innovation New Material is a large-scale, modern and comprehensive enterprise mainly engaged in the production and                             Founded in 2007, Innovation Metal is a technology-based enterprise focusing on research,
operation of aluminum profiles for 3C consumer electronics, aluminum profiles for vehicle lightweighting, sheets and                           development, production, and processing, while providing comprehensive solutions to the
foils, aluminum rods and cables, aluminum alloy rods, structural components, etc. Positioned as one of the world's                             aluminum alloy processing sector. We pioneered a unique procurement model that ensures
largest production and research and development bases for aluminum alloy materials, the Company has maintained a                               liquid aluminum remains untouched by the ground. This innovative approach forged a
leading global market share in aluminum alloy rods for multiple consecutive years. The Company specialises in the                              strategic partnership with Weiqiao Pioneering Group, the world's largest privately-owned
research, development, production, and processing of aluminum alloys and their products, offering comprehensive                                electrolytic aluminum enterprise. This collaboration marked a significant milestone in our
solutions for the aluminum alloy processing industry. Its products are widely used in various fields such as 3C                                journey, as it was the first time we formally set the development goal of ''building a century-
consumer electronics, vehicle lightweighting, construction, and new energy.                                                                    old enterprise.''
Innovation New Material has established 14 industrial parks across 4 provinces (autonomous regions) in China,
including Shandong, Jiangsu, Inner Mongolia, and Yunnan, as well as overseas locations in Vietnam and Mexico. With a                           2013 - Fortifying diversified growth, we surpassed industry
total of 10,724 employees, the Company achieved a total production output of 4.7196 million tons in 2023, which                                benchmarks
involving 3.4093 million tons of rods, 87,800 tons of profiles, 551,500 tons of sheets and foils, 671,000 tons of aluminum
                                                                                                                                               In 2013, we successfully tackled difficulties related to high-strength superconductivity in
rods and cables, and 23.1262 million structural components.
                                                                                                                                               aluminum alloy cables. As such, during the 13th Five-Year Plan period, our products were
                                                                                                                                               chosen by over 70% of the bidding winners for the national west-to-east power
                                                                                                                                               transmission program.
          Ranked 335th in the                       Ranked 169th in the List of                Ranked 98th in the List of Top                  2018 - Navigating the rapids and raising the sails, we
        List of Top 500 Chinese                         Top 500 Chinese                            500 Chinese Private                         established a global presence with vibrant industrial growth
               Enterprises                          Manufacturing Enterprises                   Manufacturing Enterprises
                                                                                                                                               In 2018, we developed as one of the core suppliers to the world's largest 3C consumer
                                                                                                                                               electronics research, development, and manufacturing enterprises. Assuming a pivotal role,
                                                                                                                                               we took on the responsibility of developing, prototyping, and industrializing aluminum
                                                                                                                                               our high-quality customers in the 3C consumer electronics sector and beyond.
                                                                                                  Ranked No. 1 globally in
      Ranked 149th in the List of                 Ranked 16th in the List of Top                   round aluminum alloy
       Top 500 Chinese Private                       100 Shandong Private                            ingot market share
            Enterprises                                   Enterprises
                                                                                                                                               set global benchmarks in technical excellence
                                                                                                                                               Since 2021, we have embarked on a journey to supply aluminum alloy materials in bulk to
                                                                                                                                               responsive to the demands of the high-end market. Throughout this journey, we have
                According to statistics provided by the China Nonferrous Metals Fabrication Industry Association,                              consistently positioned ourselves at the forefront of industry technology.
                innovation metal's products stand at the forefront of the industry in various aspects, such as
                energy consumption per unit product, emissions of pollutants per unit product, raw material
                consumption per unit product, solid waste utilization, and carbon emissions per unit product. This                             2022 - ''Dream-Pursuing Plan'' remained unwavering, as we
                comprehensive commitment to green development places us within the top 10% of the industry.
                                                                                                                                               shaped the future through innovation
                                                                                                                                               The Company's significant asset restructuring was approved by the China Securities
                                                                              Batch of Manufacturing                                           successfully listed on the main board of the Shanghai Stock Exchange, with the stock
                              Ranked No. 3 globally                            Individual Champions                                            abbreviation ''Innovation New Material'' and stock code ''600361''. By leveraging the capital
                              and No. 1 nationally in                        (Aluminum-Magnesium-                                              market, we have achieved continuous optimization of our capital structure and sustained
                                                                                                                                               enhancement of our development momentum.
                               profiles market share
                                                                                                                   About             Sustainable          Pursuing Green        Green-driven          Practicing Sound                Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                       Innovation        Development          Cycle to              Innovation and        Management to                   Join Hands to
                                                                                                                   New Material      Management           Promote Green         Product-led           Promote Responsibility-         Forge Development
                                                                                                                                                          Development           Development           Driven Development              Together
Company Culture                                                                                                     Honors & Awards
                                                                                                                   Innovation New Material has always practiced the sustainable development strategy and is recognized by government
                                                                                                                   and institutions in various aspects. In 2023, the Company and its subsidiaries received a number of honors & awards,
                                                                                                                   including but not limited to:
                                                                         Enterprise
                                                                         Philosophy
                                                                        A beautiful future                                Date         Name of Honors & Awards
                                                                       through innovation
                                                                                                                       In December
                                                                                                                                       Innovation New Material joined the Aluminum Stewardship Initiative (ASI).
                Enterprise
                                                                                                                       In December
                  Ethos                                                                                                    2023
                                                                                                                                       Innovation New Material was nominated for the Shandong Provincial Governor Quality Award.
                Pioneering and
              innovating through                                                                                                       Yunnan Innovation Alloy Co., Ltd.
                 a truthful and
                   pragmatic
                                                                                               Enterprise                                  was shortlisted as No. 29th in the ''2023 Top 100 Yunnan Enterprises'' list, rising by 34 positions from the
                                                                                                Mission
                                                                                                                                       •
                 performance                                                                                                               previous year;
                                                                                                                       In December
                                                                                             Propelling industry                           was ranked 15th in the ''2023 Top 100 Yunnan Manufacturing Enterprises'' list, rising by 18 positions from
                                                                                              progress through
                                                                                                                                       •
                                                                                                                                           the previous year;
                                                                                                scientific and
                                                                                                technological                          •   was shortlisted 8th in the ''2023 Top 100 Yunnan Private Enterprises'' list, rising by 23 positions from the
                                                                                               advancements                                previous year.
       Enterprise
                                                                                                                                       The Code for Control of Wastewater , Waste Gas and Scrap Waste from Aluminum and Aluminum Alloy
       Objective                                                                                                                       Melting and Casting led and prepared by Innovation Metal and Suzhou Chuangtai Alloy Materials Co., Ltd.
     Aspiring to industry                                                                                                              won the first prize of the Excellence Award for Technical Standards awarded by the National Nonferrous
       leadership and                                                                                                 In November      Metals Standardization Technical Committee.
     building a century-                                                                                                  2023
        old enterprise                                                                                                                 Innovation Metal participated in preparing the Aluminum Alloy Ingots for Aviation Products, which won the
                                                                                                                                       second prize of the Excellence Award for Technical Standards awarded by the National Nonferrous Metals
                                                                                                                                       Standardization Technical Committee.
                                                                                       Business
                                                                                      Philosophy
                                                                                         Customer
                                                                                                                      In November
                                                                                     satisfaction is the                  2023
                                                                                                                                       Innovation Metal was awarded the title of ''National Green Factory''.
                                                                                    key driving force for
                                                                                     a wider presence
                                                                                                                       In October      Innovation Metal was funded by 2023 Shandong Provincial Key Research and Development Programme
                                                                                                                                       Innovation Metal
                                                                                                                                           ranked 149th in the List of Top 500 Chinese Private Enterprises for 2023, rising by 23 positions compared
                                                                                                                      In September
                                                                                                                                       •
                                                                                                                                           to the previous year.
                                                                                                                                       •   ranked 98th in the ''List of Top 500 Chinese Private Manufacturing Enterprises in 2023'', rising by 7
                                                                                                                                           positions compared to the previous year.
                                                                                                                      In September
                                                                                                                                       Innovation Metal was successfully selected into the ''Provincial Quality Benchmarking''.
                                                                                                                                         About          Sustainable   Pursuing Green   Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material      2023 Environmental, Social and Governance Report                                                            Innovation     Development   Cycle to         Innovation and   Management to             Join Hands to
                                                                                                                                         New Material   Management    Promote Green    Product-led      Promote Responsibility-   Forge Development
                                                                                                                                                                      Development      Development      Driven Development        Together
Honors & Awards
        Date        Name of Honors & Awards
                    Innovation Precision's project - ''lightweight alloy material application in rail transit with an annual output of
     In September
                    Projects.
     In September   Yunnan Innovation Alloy Co., Ltd. was ranked as the 19th of the Top 100 Non-Public Enterprises in Yunnan
       In August
                    our Company ranked 23rd in the List of China's top 50 nonferrous firms in 2022, advancing by two positions.
       In August    Innovation Metal was shortlisted in the ''Top 100 Shandong Private Enterprises'' list for the 11th consecutive
       In August    Innovation Precision and Yuanwang Electric Power were awarded the Shandong provincial-level ''Green
       In August    the national standard GB/T 13586-2021 secondary aluminum prepared by the Company was approved as
       In June      Innovation Metal and Innovation Precision were selected into the ''Cultivation List of Shandong New Material
       In June      Innovation Precision was accredited in the cultivation list of first batch of ''Morning Star Factories'' for the
       In June      Innovation Metal was awarded as the ''Outstanding Unit for Blood Donation Organisation'' in Shandong
       In June      Innovation Precision was certified as Shandong ''One Enterprise, One Technology'' R&D Centre, and Binzhou
      In February   Innovation Metal was awarded the title of ''National Advanced Private Enterprise in Employment and Social
                    The ''Shandong Engineering Research Centre for New Aluminum Alloy Materials with Ultra-strength and High
      In February
                    Toughness'' was approved the optimization and integration by the Shandong Development and Reform
                    Commission.
      In January
                    Innovation Metal was honored as ''The Most Innovative Enterprise in 2022''.
                                                                             About          Sustainable   Pursuing Green   Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material   2023 Environmental, Social and Governance Report   Innovation     Development   Cycle to         Innovation and   Management to             Join Hands to
                                                                             New Material   Management    Promote Green    Product-led      Promote Responsibility-   Forge Development
                                                                                                          Development      Development      Driven Development        Together
Sustainable
Development
Management
                                                                                                                         About            Sustainable      Pursuing Green       Green-driven         Practicing Sound             Unite Efforts and
Innovation New Material      2023 Environmental, Social and Governance Report                                            Innovation       Development      Cycle to             Innovation and       Management to                Join Hands to
                                                                                                                         New Material     Management       Promote Green        Product-led          Promote Responsibility-      Forge Development
                                                                                                                                                           Development          Development          Driven Development           Together
Innovation Pioneering the Green                                                                                          ESG governance
Aluminum Journey
                                                                                                                         Innovation New Material values ESG governance highly. With the goal of realizing high-quality sustainable
                                                                                                                         development of the Company, we comprehensively integrate ESG concepts into the daily management system of the
                                                                                                                         enterprise, respond to the concerns of customers, employees, investors and other stakeholders about the ESG
                                                                                                                         performance of the enterprise, and continuously create value for all stakeholders.
As global climate change becomes increasingly prominent and the national ''Carbon Peaking and Carbon Neutrality''
                                                                                                                         ESG governance structure
goals make steady progress, the aluminum industry is facing unprecedented challenges in green transformation for its
massive energy consumption and high carbon emissions. This transformation serves as an inevitable trend for industry
development as well as a profound response to environmental protection and sustainable development. Enterprises
in the industry are being driven by the era with an urgent need to accelerate technological innovation to promote
industrial upgrading and facilitate profound transformation.                                                             In order to better promote ESG governance, Innovation New Material has established an ESG management system with
In this transformation, secondary aluminum, as a representative of green and circular economy, is receiving increasing   the Board of Directors as the supreme governing authority, the Strategy and ESG Committee under the Board of
attention. The comprehensive energy consumption of secondary aluminum is only 5% of that of primary aluminum.            Directors as the specialized committee, the ESG Working Group as the coordinating authority for organizing the ESG
Besides, the carbon footprint of primary aluminum is 8.6 tons of CO2 per ton of aluminum, with that of secondary         work of its subsidiaries, and its subsidiaries as the main executing agencies, thus laying the foundation for the
aluminum being only 0.5, which represents a mere 5.8% of the greenhouse gas emissions of primary aluminum. This          management of ESG related matters of the Company.
means that for every additional ton of secondary aluminum utilized, one ton of primary aluminum production can be
avoided, thereby reducing 94.2% of carbon emissions and yielding significant social benefits. The tremendous
potential and advantages of the secondary aluminum industry in energy conservation and environmental protection
are crucial for the healthy, stable, and long-term development of the aluminum market.
As a leading enterprise in the aluminum alloy sector, Innovation New Material has always adhered to the philosophy of
green development. The Company is fully committed to building a green lifecycle for its products and leading the
industry in embarking on a green aluminum journey through developing high-end flagship green products, boosting
                                                                                                                                                                   As the highest decision-making authority for ESG work, it is responsible for the
investment in carbon reduction, and establishing close industry-wide cooperation.
                                                                                                                                                               •
                                                                                                                                                    The            Company's ESG strategy and reporting. It regularly listens to and reviews reports
                                                                                                                                                                   from the Strategy and ESG Committee on the ESG work progress, and provides
                                                                                                                                                 Board of          guidance on the ESG work guidelines.
     Developing high-end flagship green products is the essential core of green development. Innovation                                          Directors
     New Material perceives innovation as the key to green transformation. The Company engages in deep ''industry-                                                          •   Serves as a specialized committee on ESG management under the
     academia-research'' cooperation, initiating collaborative efforts to tackle technical challenges in the industry                                                           Board of Directors, and reports regularly to the Board of Directors on
     with renowned universities and research institutions both domestically and internationally. As a result, the                                                               major ESG matters;
     Company has successfully developed a series of high-performance aluminum alloy products with low energy                                                                •   Researches and proposes ESG strategies, policies and work planning,
     consumption and emissions. These products have not only met the market demand for high-quality aluminum                                                                    and considers ESG-related major risk response programs, ESG reports
     alloys but also effectively reduced the energy consumption and carbon emissions during production. The                                 Strategy and ESG                    and other public disclosure of significant ESG information;
     launch of these high-end flagship green products have enhanced the Company's market competitiveness while                                 Committee                    •   Oversees the Company's commitment and performance to address key
     providing strong support for the industry's transformation.                                                                                                                issues such as climate change and other ESG related matters.
     Boosting investment in carbon reduction is an important means to achieve green development. The                                                                                    •   Researches and drafts ESG strategies, action plans and
                                                                                                                                                                                            management systems, and organizes the preparation of
     Company has entered the secondary aluminum market and made proactive investments leveraging upstream
                                                                                                                                                                                            ESG reports and other ESG disclosures;
     high-quality and green raw materials to expedite the entry of various downstream casting and extrusion
     aluminum alloy products into the fields of green and clean energy, thereby building a green lifecycle for its                                                                      •   Focuses on ESG related risks and issues in daily
                                                                                                                                                                                            management, responsible for liaison and communication
     products. On this basis, the Company continues to expand its investment and construction in secondary
                                                                                                                                                                                            with consulting and rating agencies and ESG management
     aluminum alloy projects, sparing no effort to promote the green development of the aluminum industry chain.
                                                                                                                                           ESG Working Group                                training;
                                                                                                                                                                                        •   Coordinates and promotes the implementation of ESG
                                                                                                                                                                                            related matters, submits the information required for
     Establishing close industry-wide cooperation is a crucial approach to drive green development. The                                                                                     decision-making, and fully fulfils the daily ESG
     Company leverages its advantages to establish close partnerships with upstream and downstream enterprises.                                                                             management duties.
     Through deep cooperation with upstream suppliers, the Company ensures the stable supply of high-quality,
     green raw materials, providing powerful assurances for green production. The Company also actively
     collaborates with downstream customers to jointly develop and promote new products that meet the market's
     demand for green aluminum materials. Simultaneously, the Company engages in vigorous exchanges and
     cooperation with peer enterprises to jointly promote the green transformation and industrial upgrading of the
     aluminum industry.
                                                                                                                        About             Sustainable      Pursuing Green            Green-driven        Practicing Sound            Unite Efforts and
Innovation New Material       2023 Environmental, Social and Governance Report                                          Innovation        Development      Cycle to                  Innovation and      Management to               Join Hands to
                                                                                                                        New Material      Management       Promote Green             Product-led         Promote Responsibility-     Forge Development
                                                                                                                                                           Development               Development         Driven Development          Together
Communications with                                                                                                      Stakeholders
                                                                                                                                                        Communication
                                                                                                                                                                                              Expectations and demands
Stakeholders
                                                                                                                                                        channels
Innovation New Material actively carries out stakeholder communications and responds to the expectations of                                             Staff council,
different stakeholders. Considering the characteristics of the Company's daily operations and business scope, we have
                                                                                                                                                        Symposium,
fully identified stakeholders and established a variety of communication mechanisms to respond to the expectations                                                                            Employee rights and diversity,
and demands of stakeholders, to jointly build a good cooperative relationship, and to strive to achieve win-win                                         Employee feedback mailbox,
                                                                                                                                                                                              Professional health and safety,
cooperation and maximize value.                                                                                          Employees                      Internal office software,
                                                                                                                                                                                              Talent training and development,
                                                                                                                                                        Employee satisfaction survey,
                                    Communication                                                                                                                                             Compensation and benefits
 Stakeholders                                                        Expectations and demands
                                    channels                                                                                                            Training,
                                                                                                                                                        Internal publication
                                    Shareholders' meeting,
                                                                     R&D & Innovation,
                                    Annual/Interim reports,
                                                                     Product management,
                                    Corporate
 Shareholder and investors          announcements/Press              Customer service,
                                                                                                                                                                                              Product management,
                                    releases,
                                                                     Responding to climate change,
                                                                                                                                                        Business communication,               Customer service,
                                    Field trips,
                                                                     Carbon emission management
                                                                                                                                                        Client feedback,                      Circular economy and waste management,
                                    Research and questionnaire
                                                                                                                         Clients
                                                                                                                                                        Client satisfaction survey,           Carbon emissions management,
                                                                                                                                                        Social media                          Responding to climate change,
                                                                                                                                                                                              Energy management
                                    Regular meetings of regulatory
                                    authorities,                     Business ethics and compliance,
                                    Seminars,                        Water resource management,
 Government and regulators          Regular information reporting,   Occupational health and safety,                                                    Bidding and procurement,
                                    Site visits,                                                                                                                                              Sustainable supply chain,
                                                                     Public interest initiatives,                                                       Access and evaluation,
                                    High-level meetings,                                                                 Partners                                                             Product management,
                                                                     Biodiversity conservation                                                          Field trips,
                                    Policy advisory                                                                                                                                           Occupational health and safety manufacturing
                                                                                                                                                        Seminars and forums
                                                                     ESG governance,
                                    Reporting,
                                                                     Product management,                                                                Public welfare activities,
                                    High-level meeting,                                                                                                                                       Actions for the public good,
                                                                     R&D & Innovation,                                                                  Community activities,
 The Board of Directors and                                                                                                                                                                   R&D & Innovation,
                                    Site visit,
 Corporate Management                                                Business ethics & compliance,                       Community and the public       Press releases,
                                    The Board of Directors,                                                                                                                                   Responding to climate change,
                                                                     Sustainable supply chain,                                                          Social media,
                                    Regular questioning                                                                                                                                       Carbon emissions management
                                                                     Energy management                                                                  Seminars
                                                                                                                                  About             Sustainable        Pursuing Green      Green-driven       Practicing Sound           Unite Efforts and
Innovation New Material                      2023 Environmental, Social and Governance Report                                     Innovation        Development        Cycle to            Innovation and     Management to              Join Hands to
                                                                                                                                  New Material      Management         Promote Green       Product-led        Promote Responsibility-    Forge Development
                                                                                                                                                                       Development         Development        Driven Development         Together
Materiality issue analysis                                                                                                        Innovation New Material in Figures
During the year, Innovation New Material analyzed the Company's internal and external sustainable development
                                                                                                                                                                                Green Development
background based on the Company's core business and future development plans, combined with factors such as
industry ESG related policies and standards, and capital market focus. Based on the results of the analysis, the
Company identified a total of 18 material ESG issues.
                                                                                                                                      Low Carbon Materials Use
In order to fully understand the feedback from internal and external stakeholders on the materiality of the Company's                     The total amount of electrolytic liquid aluminum purchased by the Company reached 3.42        million
ESG issues, Innovation New Material conducted a survey on the materiality of the issues to each stakeholder using a
                                                                                                                                      ?
combination of online questionnaires and offline interviews. In response to the feedback from each stakeholder, the
                                                                                                                                          tons, accounting for 76% of the total raw electrolytic aluminum materials.
Company conducted in-depth analyses and formed the following matrix of materiality issue, in order to better respond                      The Company purchased 1.4406      million tons of green-power aluminum and secondary aluminum,
to the needs of the stakeholders.
                                                                                                                                      ?
                                                                                                                                          accounting for 32% of the total raw electrolytic aluminum materials, with 426,700 tons of green-
                                                                                                                                          power aluminum purchased.
                                      Innovation New Material 2023 Matrix of Materiality Issues
                                                                                                                                      Secondary Aluminum Use and Development
                                                                                        ? Product management
                                                                                                                                          The Company comprehensively recycled 1.0139  million tons of secondary aluminum, consisting
                                                                                                           ? Sustainable supply
                                                                                                                                      ?
                                                                             ? Business ethics &             chain                        of 698,900 tons recovered from external sources and 315,000 tons reused from the Company's
                                                        ? Customer service     compliance                                                 own production lines.
                                                                                                            ? R&D & Innovation
                                                                                                                                      ?   The Company launched 7 projects for secondary aluminum, with plans to increase the annual production
                                                                                                                                          capacity of secondary aluminum to 2.05        million tons.
Impact on external stakeholders
                                                                                ? Climate change response
                                        ? Water resources management
                                                                                                                                      ?   The Company has achieved 100% maintenance of quality level for the use of secondary aluminum.
                                                                                              ? Professional health and safety
                                           ? Circular economy and waste                                                               ?   The Company has participated in the formulation of 5 national and industry standards for secondary
                                             management                                                                                   aluminum.
                                                            ? Employee rights and diversity
                                                                                                      ? Resource / Energy
                                                                                                        management
                                                    ? Exhaust emission                                                                Carbon Footprint and Environmental System Certification
                                                                       ? Talent training & development ? Carbon emissions
                                                      management
                                                                                                         management                       The Company has obtained carbon footprint certifications for 19 products.
                                                                 ? ESG governance
                                                                                                                                      ?
                                                                                                                                      ?   2 subsidiaries have obtained national-level green factory certification, with another 2 obtaining provincial-
                                                                                                                                          level green factory certification. On the municipal level, there are 2 subsidiaries with green factory
                                           ? Public welfare actions                           ? Compensation                              certification. Besides, 1 subsidiary has obtained municipal-level green supply chain enterprise certification.
                                                                                                & Benefits
                                                                                                                                      ?   The proportion of the Company's subsidiaries having obtained ISO      14001 environmental management
                                  ? Biodiversity                                                                                          system certification reaches 100%.
                                    conservation
                                                                                                                                      ?   9 subsidiaries have obtained ISO 14064 greenhouse gas emissions accounting certification.
                                                      Impact on Innovation New Material
                                                                                                                                      ?
                                                                                                                                      ?   4 subsidiaries have obtained ISO 50001 energy management system certification.
                                     Environmental Issues               Social Issues                       Governance
                                                                                                            Issues
                                                                                                                     About              Sustainable         Pursuing Green    Green-driven      Practicing Sound          Unite Efforts and
Innovation New Material      2023 Environmental, Social and Governance Report                                        Innovation         Development         Cycle to          Innovation and    Management to             Join Hands to
                                                                                                                     New Material       Management          Promote Green     Product-led       Promote Responsibility-   Forge Development
                                                                                                                                                            Development       Development       Driven Development        Together
Innovation New Material in Figures
                                              Green Development                                                                                               People-centered Philosophy
     Environmental Technology Transformation                                                                             Employment
     ?   The Company has invested 58.9298 million yuan in environmental protection.                                      ?   The total number of employees is 10,724, the proportion of female employees accounts for 31.4%.
     ?   Through waste heat recovery technology, the Company has generated 35.64 million kWh of electricity,             ?   The employee satisfaction survey covers 92% of employees, with a satisfaction rate of 90%.
         saving 10,800 tons of standard coal annually, equivalent to reducing carbon dioxide emissions by                Employee Safety
         approximately 28,000 tons per year.
                                                                                                                         ?   8 of the Company's subsidiaries have obtained ISO 45001 Occupational Health and Safety
         Through clean technology upgrades, the Company can save 1.73 million cubic meters of natural gas                    Management System certification, with the number of employees holding certified safety engineer
                                                                                                                             qualifications exceeding 40.
     ?
         annually, reducing carbon emissions by approximately 3,700 tons.
                                                                                                                         ?   The participation rate for employee safety training is 100%, with 100% of participants completing the
     Low Emission of Waste Gases                                                                                             safety education and training. Besides, the completion rate for emergency drills is 100%.
     ?   The emissions of particulate matter, sulfur dioxide, and nitrogen oxides at the Company's operation sites       ?   There have been no cases of work-related fatal accidents, severe injuries, or occurrences of occupational
         in Binzhou are far below the Shandong provincial standards and national standards. The emission                     diseases.
         concentration of particulate matter and sulfur dioxide are both lower than the 10% of the national
                                                                                                                         Employee Development and Care
         standard, while nitrogen oxide emissions are 50% lower than the national standard.
                                                                                                                             In 2023, the Company organized more than 50 employee activities and 40 employee skill competitions.
         The effective collection rate of waste gas reaches 99.5%,
                                                                                                                         ?
                                                                                                                             In 2023, 98 vehicles were issued to ''loyal teams''.
     ?
         Dust removal efficiency exceeded 99.7%,
                                                                                                                         ?
                                                                                                                             At present, the Company has a total of 2,598 dormitories in various parks, of which 344 dormitories
         Purification efficiency of oil mist and flue gas exceeds 95%.
                                                                                                                         ?
                                                                                                                             will be newly built and put into use in 2023.
                                                 Product Quality                                                                                                  Responsible Operations
     ?   The Company has obtained 445 patents, including 44 invention patents and 401 utility model patents.                 There was no incident of violation against laws and regulations in 2023.
                                                                                                                         ?
         In 2023, the Company obtained
                                                                                                                             In 2023, the Company conducted 18 sessions of training in laws and regulations, with a total of 1,454
     ?
         and 92 are utility model patents.
                                                                                                                         ?
                                                                                                                             attendances.
                                                                                                                             The customer satisfaction rate exceeded 90%.
     ?
         certification.                                                                                                  ?
     ?   8 of the Company's subsidiaries have obtained the         IATF 16949         Automotive Industry Quality
                                                                                                                             In 2023, the Company held 3 supplier symposiums, inviting a total of 35 suppliers.
         Management System certification.
                                                                                                                         ?
                                                                             About          Sustainable   Pursuing Green   Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material   2023 Environmental, Social and Governance Report   Innovation     Development   Cycle to         Innovation and   Management to             Join Hands to
                                                                             New Material   Management    Promote Green    Product-led      Promote Responsibility-   Forge Development
                                                                                                          Development      Development      Driven Development        Together
Pursuing Green
Cycle to
Promote Green
Development
As one of the largest global aluminum alloy material suppliers,
Innovation New Material is well aware that we bear a greater
responsibility in the current era of global climate change and
sustainable development. Practically implementing the green
development philosophy, the Company is committed to building
an industry-leading green aluminum industry chain. We
vigorously develop green-power aluminum, liquid aluminum and
secondary aluminum industries from the raw material side. We
also make full and efficient use of hydroelectric, wind,
photovoltaic power and other clean energy sources during
production. By doing so, we continuously provide lightweight,
low-carbon and environment-friendly aluminum alloy products to
domestic and overseas sectors such as photovoltaics, 3C
electronics and auto manufacturing, thus contributing to the
sustainable development of the aluminum industry and a low-
carbon society.
This chapter responds to the UN SDGs
                                                                                                                        About             Sustainable        Pursuing Green       Green-driven          Practicing Sound           Unite Efforts and
Innovation New Material       2023 Environmental, Social and Governance Report                                          Innovation        Development        Cycle to             Innovation and        Management to              Join Hands to
                                                                                                                        New Material      Management         Promote Green        Product-led           Promote Responsibility-    Forge Development
                                                                                                                                                             Development          Development           Driven Development         Together
                                          Aluminum Industry Chain                                                                        Building the full-process ''green aluminum industry chain'' for ''Carbon Peaking and Carbon
                                                                                                                                 Case
                                                                                                                                         Neutrality'' goals
                                                                                                                           While strictly adhering to the green development philosophy, Suzhou Chuangtai Alloy Materials Co., Ltd.
                                                                                                                           (''Suzhou Chuangtai'') puts efforts in high-quality and green development and upholds the philosophy of green,
                                                                                                                           low-carbon and circular development throughout the product life cycle. In 2023, Suzhou Chuangtai took several
     Procurement of                      Casting                Aluminum alloy              Application                    measures for energy conservation and emission reduction, advancing the rational allocation and
      raw materials                    production                  products                   areas                        comprehensive utilisation of energy and resources in the plant. The Company intends to build the ''green
                                                                                                                           aluminum'' industry chain throughout the processes covering aluminum recycling, casting, extruding and CNC
                                                                                                                           finishing to facilitate the national ''Carbon Peaking and Carbon Neutrality'' strategies. This year, Suzhou
                                                                                                                           Chuangtai was successfully admitted to the national green manufacturing list.
                                                      Use of clean
                                                        energy
                                                       Cast rolling                     Building and
   Green                                                                     Bar
               Electrolytic                                                              structure
   power       aluminum
                                                       Hot rolling                                            PV
 aluminum         liquid
                                                                                         Electronics
                                                                            Profile      and power
                                                       Cold rolling                                           3C
 Non-green                                                                                                electronics
                Aluminum            Aluminu                                Structural     Consumer
   power                                                 Forging                           durables                                                            National ''green factory'' for Suzhou Chuangtai
                   ingot            m alloy                               component
 aluminum
                                                                                         Machinery
                                                                                                                        Designing Green and Low-carbon
                                                       Foil rolling
                                                                          Sheet and         and
                                                                             foil        equipment
                Secondary                               Extruding
                                                                                                                        Products
                aluminum                                                  Aluminum
                                                                                                          Lightweight
                                                                           rod and      Transportation
                                                      Smelting,etc.                                       automobile
                                                                            cable
                                                     Efficient use of                     Packaging
                                                          energy                          container
                                                                                                                        Innovation New Material is committed to the green and low-carbon
                                                                                           Others
                                                                                                                        development philosophy, and strives to develop a systematic
                                                                                                                        aluminum alloy industry that centers on circular economy, enabling
                                                                                                                        the green and circular development of the whole industry chain.
                                                                                                                        Based on the actual processes, the Company actively seeks and has
                                                                                                                        realized the large-scale use of green aluminum materials, the low-
                                                                                                                        carbon and clean production and the systematic recycling of
                                                                                                                        aluminum alloy products, driving the development of the secondary            We have obtained carbon footprint
                                                                                                                        aluminum industry.
                                                                                                                        Innovation New Material makes concrete efforts to promote the                certification for
                                                                                                                        accounting and certification of product carbon footprint,
                                                                                                                                                                                                     cylindrical ingots of secondary aluminum.
                                                                                                                        continuously promoting the ''cradle-to-gate'' carbon footprint
                                                                                                                        certification, in an effort to track the carbon footprint in the whole
                                                                                                                        product life cycle. By the end of 2023, the Company has obtained the
                                                                                                                        obtained the carbon emissions certificate issued by the China Quality Certification Centre (CQC). We have obtained
                                                                                                                        carbon footprint certification for 19 products, including 2 cylindrical ingots of secondary aluminum.
                                                                                                                        By adopting advanced production technology and energy-saving and consumption reduction control measures,
                                                                                                                        combining the high-quality green power aluminum provided by the upstream of the supply chain and the innovative
                                                                                                                        industrial cooperation model, as well as strict carbon emission management, the Company effectively reduces the
                                                                                                                        carbon footprint of its products and provides more low-carbon products for the industrial chain.
                                                                                                              About              Sustainable    Pursuing Green       Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material      2023 Environmental, Social and Governance Report                                 Innovation         Development    Cycle to             Innovation and   Management to             Join Hands to
                                                                                                              New Material       Management     Promote Green        Product-led      Promote Responsibility-   Forge Development
                                                                                                                                                Development          Development      Driven Development        Together
                                                                                                              Meanwhile, to further promote and reduce product carbon footprints, the Company leverages renewable energy to
                      Innovation Metal —— Cylindrical aluminum alloy ingot                                    launch high-end flagship green products. Innovation Yunnan has capitalized on the ample local hydropower aluminum
                                                                                                              resources and set carbon footprint objectives for cylindrical aluminum alloy ingots:
                     CO2 equivalent                                    CO2 equivalent
                                                                                           carbon footprint                  Since 2021                     By the end of 2025                         By the end of 2030
                                                                                           reduced by
                                                                                                                     We have achieved an                  The carbon footprint for                   The carbon footprint for
                                                                                                                    yearly carbon footprint                  every kilogram of                          every kilogram of
                                                                                                                   reduction of 0.05                       cylindrical aluminum                       cylindrical aluminum
                                                                                                                        kilograms of CO2                   alloy ingots will have                     alloy ingots will have
                                                        High-content
     Traditional process   Substituted with          secondary aluminum                                             equivalent per kilogram                dropped to 5.64                            dropped to 5.39
                                                                                                                    of cylindrical aluminum                      kilograms of CO2                        kilograms of CO2
                                                                                                                           alloy ingots.                            equivalent.                             equivalent.
                     Suzhou Chuangtai —— Cylindrical aluminum alloy ingot
                                                                                                              Optimization of raw materials structure
                     CO2 equivalent                                    CO2 equivalent
                                                                                           reduced by
                                                                                                              The main upstream raw materials of Innovation New Material's products are electrolytic liquid aluminum, aluminum
                            Substituted with              aluminum                                            encouraging the use of secondary aluminum, and increasing the proportions of green power aluminum and secondary
        aluminum
                                                                                                              aluminum in raw materials, the Company has avoided the increase in carbon footprint within the product life cycle
                                                                                                              while raw materials increase, and provided more low-carbon products to downstream customers to boost the
                                                                                                              transformation of the industry chain. This year, the Company used 1.4406 million tons of green-power aluminum and
                                                                                                              secondary aluminum, comprising 32% of the total raw electrolytic aluminum materials.
                           Innovation Precision —— Profile for 3C electronics
                                                                                                                             The Company used
                     CO2 equivalent
                                                                       CO2 equivalent
                                                                                           carbon footprint                  1.4406 million tons                                               Comprising of
                                                                                           reduced by
     aluminum               Substituted with              aluminum
                                                                                                                          About            Sustainable      Pursuing Green      Green-driven         Practicing Sound           Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                              Innovation       Development      Cycle to            Innovation and       Management to              Join Hands to
                                                                                                                          New Material     Management       Promote Green       Product-led          Promote Responsibility-    Forge Development
                                                                                                                                                            Development         Development          Driven Development         Together
Developing green-power aluminum presence                                                                                                      ''Innovation Model'': An example diagram of upstream
                                                                                                                                                          and downstream collaboration
Innovation New Material has made preliminary efforts in areas such as Inner Mongolia and Yunnan to make full use of
local hydroelectric, wind and photovoltaic power for aluminum production. In addition, the Company has established
in-depth cooperation with electrolytic aluminum suppliers using clean energy to jointly reduce the carbon emissions
throughout the product life cycle. By utilizing the high-quality green-power aluminum resources of Shandong
Innovation Group Co., Ltd. (hereinafter referred to as ''Innovation Group'') in Inner Mongolia, the Company
continuously increases the proportion of green-power aluminum in its raw materials, which will reach 50% by the end
of 2026. The Company also leverages hydropower aluminum resources to actively develop the hydropower aluminum                               Aluminum        Aluminum         Secondary                            Value             High-end
industry and set relevant production capacity goals. Innovation Yunnan plans to boost the production capacity of                              liquid           ingot         aluminum                          technologies           alloy
cylindrical aluminum alloy bars using hydropower aluminum to 600,000 tons and 900,000 tons by the end of 2025 and
                    Intending it to reach  50%    by the end of 2026.                                                                               Short-term transportation                               Deep processing
                    Innovation Yunnan plans to boost the production capacity of cylindrical aluminum alloy
                    bars using hydropower aluminum to    600,000 tons and 900,000 tons
                    by the end of 2025 and 2030 respectively.
                    This year, the Company purchased   425.2 thousand tons of green-power aluminum.                                                                                               Shorten the
                                                                                                                                                                                                  production chain
Optimizing the industrial cooperation model                                                                                              Aluminum                        Aluminum                Aluminum                           Ordinary
                                                                                                                                           liquid                           ingot                  liquid                            ingot
Innovation New Material actively promotes the green transformation and takes full advantage of the aluminum
industry cluster, establishing an ''Innovation Model'' based on short-distance transportation and deep processing in
virtue of co-location with electrolytic aluminum enterprises. Additionally, with aluminum ingots having been replaced
with electrolytic liquid aluminum during production, the coagulation and casting process of electrolytic liquid
aluminum is avoided, reducing carbon emissions in raw material selection. Meanwhile, the short-distance
transportation has substantially cut the carbon emissions from the transport of electrolytic aluminum and reduced the                               Ingot              Transportation        Remelting              Casting processing
carbon footprint of the products. This year, the Company purchased 3.42 million tons of electrolytic liquid aluminum in
total, accounting for 76% of the total electrolytic aluminum.
Innovation New Material also develops the aluminum industry in Yunnan and maintains the cooperation with
Shandong Weiqiao Pioneering Group Co., Ltd. By giving full play to advantages of upstream and downstream industry
clusters, the Company has expanded production capacity and reduced the carbon emissions in production and
operation to drive green development of the industry.
                                                                                       million tons of
                                                                        electrolytic liquid aluminum
                                     of the                                                    in total
                      total electrolytic
                      aluminum
                                                                                                                             About             Sustainable       Pursuing Green      Green-driven       Practicing Sound           Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                                 Innovation        Development       Cycle to            Innovation and     Management to              Join Hands to
                                                                                                                             New Material      Management        Promote Green       Product-led        Promote Responsibility-    Forge Development
                                                                                                                                                                 Development         Development        Driven Development         Together
Expanding the application of secondary aluminum                                                                                   Recycling market waste
                                                                                                                                  The Company has ample sources of market waste and actively promotes its recycling to efficiently use
As a leader in secondary aluminum, Innovation New
                                                                    The Company comprehensively recycled 1.0139                   limited natural resources. We seek to recycle market waste from downstream customers and other third
Material recovers secondary aluminum through industrial
                                                                    million tons of secondary aluminum , with the rest of:        parties to replace electrolytic aluminum as raw materials for casting. In addition, we constantly increase our
leftover materials from downstream customers and waste
                                                                                                                                  recycling efforts.
from external markets. The Company has maintained and
advanced the quality level of the secondary aluminum
using advanced industrial production technologies and
                                                                    its own production lines                                      recycling channels by accelerating the layout and building of domestic recycling stations. We have formed a
equipment. In addition, through the persistent R&D and
                                                                                                                                  recycling team for secondary aluminum, implementing a point-to-point recycling model in major raw
application of technologies, we have been able to
                                                                                                                                  material bases such as Shanghai, Suzhou, Guangdong and Chongqing, in an effort to enable the accurate
manufacture rods, profiles and structural components in
processes such as casting, extruding and finishing with
recovered secondary aluminum, enabling the wide use of                                                       tons were
secondary aluminum in 3C electronics, lightweight                                                            recovered
automobiles, new energy industry, etc. to accelerate the                                                     from
circulation of secondary aluminum and boost its economic                                                     external
value. This year, the Company comprehensively recycled
                                                                                                             sources
the rest of 315,000 tons reused from its own production
lines. Additionally, secondary aluminum accounted for                                                                           To promote sustainable development, Suzhou Chuangtai actively purchased waste aluminum profiles and
                                                                                                                                customers, while specifying that the proportion of secondary aluminum used in some product types must be
By the end of 2023, Innovation New Material has also obtained the SCS Global Services and Underwriters Laboratories             100%. In the meantime, the Company plans to make recycled materials account for 70% of raw materials across
(UL) Certification for some product types.                                                                                      all lines by 2025, with the percentage being 100% for secondary aluminum lines.
                                                                                                                                  Reusing aluminum from the Company's production lines
                                                                                                                                 Innovation New Materials continues to promote circular economy and actively carry out the recycling of
                                                                                                                                 waste aluminum from its own products. For waste materials such as rod heads, rod tails, scraps, and
                                                                                                                                 trimmed edges generated during the production process, the Company has established a scientific and
                                                                                                                                 efficient recycling process. Through continuous technological innovation and process optimization, the
                                                                                                                                 Company ensures that they are reused to the maximum extent, mitigating environmental pollution. This year,
                                                                                                                                 the Company reused 315,000 tons of aluminum from its own production lines.
     Recycling industrial leftover materials
     As the upstream enterprise of the value chain, Innovation New Material has signed strategic cooperation
     agreements with downstream customers to define the roles of the parties involved in aluminum product
     recovery and promote resource recycling. This year, in the procurement contract with downstream
     customers, Inner Mongolia Lightweight specified the proportion of secondary aluminum used in the raw
     materials as well as the requirements for the recycling of industrial leftover materials, in an effort to jointly
     create and expand secondary aluminum channels.
                                                                                                                      About            Sustainable       Pursuing Green     Green-driven         Practicing Sound          Unite Efforts and
Innovation New Material   2023 Environmental, Social and Governance Report                                            Innovation       Development       Cycle to           Innovation and       Management to             Join Hands to
                                                                                                                      New Material     Management        Promote Green      Product-led          Promote Responsibility-   Forge Development
                                                                                                                                                         Development        Development          Driven Development        Together
Carbon reduction throughout production                                                                                                Promoting the production of high-quality secondary aluminum for circular development of
processes
                                                                                                                               Case   the value chain
                                                                                                                         This year, Shandong Chuang Yuan Renewable Resources Co., Ltd. successfully put its first product line of the
Innovation New Material promotes the green and low-carbon transformation through various measures. Resource              500,000-ton high-quality secondary aluminum project into operation. Relying on imported production
                                                                                                                         equipment with high efficiency and low energy consumption as well as other advanced energy-saving
efficiency has been enhanced by actively developing secondary aluminum alloy lines, continuously improving the
                                                                                                                         technologies, the project can realise the minimum consumption of energy and lowest carbon emissions during
energy management system, increasing the proportion of clean energy and vigorously upgrading energy-conserving
                                                                                                                         production. The production process of cylindrical aluminum alloy ingots is further optimized to maximize
technologies. This year, 9 subsidiaries obtained the ISO 14064 greenhouse gas accounting certification.                  resource utilization and production efficiency. Advanced imported equipment such as paint removing furnaces
                                                                                                                         run automatically and enable ultra-low or even zero emissions. Waste gas generated during operation can be
                                                                                                                         used for waste heat recovery and reused for power generation. Every effort is made to minimize resource waste
                                                                                                                         and environmental pollution. The success of the project has advanced the green development of the aluminum
                                                                                                                         alloy industry chain, promoting sustainable development of the whole industry chain and boosting the
                                                                                                                         development of the ''hub of global high-end aluminum bases''.
                        certification and ISO 14067 carbon footprint of products certification.
Secondary aluminum alloy projects
Innovation New Material vigorously develops the secondary aluminum industry and continues to promote the green                                               Secondary aluminum alloy production line
development of the aluminum industry chain with a strong sense of social responsibility. The Company has launched 7
secondary aluminum projects in total and plans to boost the annual secondary aluminum production capacity to 2.05          Quality level maintenance of secondary aluminum
million tons. At present, we have put 2 high-quality secondary aluminum alloy projects into operation with annual
production reaching 600,000 tons.                                                                                          The Company focuses on maintaining the quality level of secondary aluminum and works with downstream
                                                                                                                           customers to ensure the stability and reliability of the feedstock. In addition, we convert the secondary
                                                                                                                           aluminum containing various impurities into the alloyed product with composition and performance within
                                                                                                                           specifications through strict control processes. By introducing state-of-the-art production equipment and
                                                                                                                           processes to the production line, the Company actively makes proactive efforts to recover secondary
                    The Company has launched   7 secondary aluminum projects in total and plans to boost                   aluminum and achieve 100% maintenance of quality level for reuse. With our superior expertise in front-end
                                                                                                                           processes as well as core technologies to purify high-quality aluminum melt and remove impurities in
                    the annual secondary aluminum production capacity to 2.05 million tons.
                                                                                                                           secondary aluminum, the Company can upgrade the quality of secondary aluminum by effectively
                                                                                                                           controlling its chemical composition.
                                                                                                                                       Working with a renowned technology company on the quality level maintenance of 3C
                                                                                                                               Case    electronics for recycling
                                                                                                                         The Company has been working with a renowned technology
                                                                                                                         company since 2017 to recover and reuse the secondary aluminum in
                                                                                                                         a closed loop, leading the maintenance and upgrade of the quality
                                                                                                                         level of secondary aluminum. The Company has formed a mature
                                                                                                                         technology system in terms of secondary aluminum screening,
                                                                                                                         decontamination, impurity removal and purification, and alloying,
                                                                                                                         which has been applied to all products. This system can maintain and            Currently, the Company has
                                                                                                                         even upgrade the quality of secondary aluminum by keeping
                                                                                                                         consistent product performance, maximizing alloy properties,
                                                                                                                                                                                                        achieved
                                                                                                                         effectively removing impurities and ensuring the purity and
                                                                                                                         uniformity among secondary aluminum products. Currently, the                    maintenance of secondary
                                                                                                                         Company has achieved 100% quality level maintenance of secondary                   aluminum for use.            32
                                                                                                                         aluminum for use and become a domestic leader in manufacturing
                                                                                                                         and utilizing secondary aluminum.
                                                                                                                        About             Sustainable         Pursuing Green      Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material    2023 Environmental, Social and Governance Report                                             Innovation        Development         Cycle to            Innovation and   Management to             Join Hands to
                                                                                                                        New Material      Management          Promote Green       Product-led      Promote Responsibility-   Forge Development
                                                                                                                                                              Development         Development      Driven Development        Together
Green energy transformation                                                                                                  Optimising the energy structure
                                                                                                                             The Company continues to optimize its energy structure to promote the construction of new energy projects
Innovation New Material contributes to the national ''Carbon Peaking and Carbon Neutrality'' strategies by vigorously
                                                                                                                             and practice the ''dual carbon'' philosophy. The Company vigorously develops photovoltaic power projects
promoting the green transformation and striding towards green and high-quality development. We strive to reduce the
                                                                                                                             to save energy and reduce emissions. Consequently, we have reduced production costs and boosted the use
consumption of traditional energy in production and operation on all fronts to gradually increase the usage of clean
                                                                                                                             of green energy, achieving economic, ecological, and social benefits. This year, the Company has completed
energy and further enhance our production and operation efficiency.
                                                                                                                             the installation and grid-connected power generation of 22.58 MW of photovoltaic equipment in Shandong
                                                                                                                             Province, which is expected to reduce approximately 13,521 tons of carbon dioxide emissions annually.
     Energy management system
     To carry out energy management systematically and efficiently, the Company has comprehensively planned,
                                                                                                                                                This year, the Company has completed the installation and grid-connected power
     implemented, inspected and improved energy management. The Company scientifically monitors the whole
     process of energy management to effectively control energy consumption and improve energy utilization
                                                                                                                                                generation of
                                                                                                                                                which is expected to reduce approximately 13,521 tons of carbon dioxide
     efficiency. According to laws and standards such as the Energy Conservation Law of the People's Republic of
     China, ISO 50001 Energy Management System and RB/T 117-2014 Energy Management Systems Certification
     Requirements for Nonferrous Industry, the Company has taken into account the actual daily operation of the
     Company to establish a three-level management system including the Company, departments and teams.                                         emissions annually.
                     An energy management leadership group and office have been established, with the                        Innovation First Industrial Park's distributed photovoltaic power generation project has been
                     deputy general manager as the team leader. They are responsible for formulating energy                  successfully connected to the grid.
                     policies and operating guidelines to clearly define and communicate the scope of
                                                                                                                             The Company has signed a cooperation agreement
        At the       responsibility and authority related to energy management within the Company.
                                                                                                                             with a third party for the rooftop distributed
       Company       Meanwhile, they will develop guidelines and methods to ensure effective control and
                                                                                                                             photovoltaic power station project and successfully
         level       operation of the energy management system and regularly report the work progress to
                                                                                                                             connected the photovoltaic power station to the grid
                     the top management.
                                                                                                                             in 2023. All the electricity generated by the project will
                                                                                                                             be supplied to the Company for energy conservation
                                                                                                                             and emission reduction.
                  An energy management team has been established with members from numerous
                  departments to carry out energy management policies. The team is also asked to
                  establish, implement, maintain, and continuously improve the energy management                             Innovation Metal's distributed photovoltaic power generation project has been successfully
                  system in accordance with standards and requirements to plan effective energy                              connected to the grid.
        At the
     departmental management    activities. In addition, the team is in charge of monitoring energy                          This year, the Fourth Park of Innovation Metal, the
         level    performance and evaluating compliance issues to help all employees enhance their                           First Park of Innovation Board Material, the Park of
                  awareness of energy policies and goals and regularly report to the Company level;                          Chuanghui New Material, and the Park of Yuanwang
                                                                                                                             Electrotechnics have been integrated into the grid,
                                                                                                                             with a total installed capacity of 22.58 MW.
                     Energy management specialists are responsible for daily energy management and the
         At the      continuous, effective implementation of energy management within the enterprise.
       team level
                                                                                                                             Suzhou Chuangtai's photovoltaic power generation project has been successfully connected
                                                                                                                             to the grid.
                                                                                                                             Suzhou Chuangtai plans to use the 120,000-square-
                                                                                                                             metre roof in the factory to construct a 12 MW
                                                                                                                             photovoltaic power generation facility with an anuual
                     This year,   4 subsidiaries of the Company have obtained the ISO 50001                                  capacity of 12 million kWh, which can supply about
                     Energy Management System certification.
                                                                                                                     About            Sustainable        Pursuing Green     Green-driven        Practicing Sound          Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                         Innovation       Development        Cycle to           Innovation and      Management to             Join Hands to
                                                                                                                     New Material     Management         Promote Green      Product-led         Promote Responsibility-   Forge Development
                                                                                                                                                         Development        Development         Driven Development        Together
                  Carrying out the construction of the photovoltaic factory to create a low-carbon
          Case    supplier image                                                                                              Case   Using regenerative heating combustion furnaces to reduce natural gas consumption
     In order to effectively promote the Company's low-carbon development, Inner Mongolia Lightweight has added         In order to improve the efficiency of clean energy use, Innovation Metal has carried out successive upgrades of
     rooftop photovoltaic power generation to the new factory's design and invested heavily in the construction of      combustion furnaces, replacing conventional melting equipment with regenerative heating combustion
     waste aluminum recycling production lines. While improving its green and low-carbon development, it also           furnaces to accelerate the internal heating and improve the recovery and utilization rate of waste heat.
     contributes to the green transformation of the value chain.                                                        Compared with traditional furnaces, natural gas consumption has been reduced by about 42%, with the energy
                                                                                                                        efficiency of equipment improved. By the end of 2023, the Company has saved 1.73 million m3 of natural gas
                                                                                                                        annually through clean technology upgrades, reducing carbon emissions by about 3,700 tons.
                                                                                                                                            Natural gas consumption has been reduced by about      42%, saved 1.73
                                                                                                                                            million m of natural gas , reducing carbon emissions by about 3,700 tons.
                                                  Photovoltaic factory
      Energy Efficiency Upgrading
     The Company continues to make energy-conserving technological improvements and upgrade the technology
     of existing production equipment. We are also reducing energy consumption to improve energy efficiency by
     adopting waste heat recovery technology. After the upgrade is completed, the Company will be able to
     generate 35.64 million kWh of electricity by recovering and utilizing the heat of flue gas and steam, saving
     emissions annually.
                      Saving 10,800 tons of standard coal annually, which is equivalent to reducing
                      approximately 28,000 tons of CO emissions annually.
                                                                                                                                                             Regenerative heating combustion furnace
                                                                                                                                        About            Sustainable        Pursuing Green     Green-driven       Practicing Sound           Unite Efforts and
Innovation New Material         2023 Environmental, Social and Governance Report                                                        Innovation       Development        Cycle to           Innovation and     Management to              Join Hands to
                                                                                                                                        New Material     Management         Promote Green      Product-led        Promote Responsibility-    Forge Development
                                                                                                                                                                            Development        Development        Driven Development         Together
           Case     Recovering waste heat to generate electricity and reduce energy consumption
                                                                                                                                        Deepening green application domains
                                                                                                                                        Innovation New Material provides high-performance aluminum alloy products for downstream industries and actively
     Innovation Metal channels the flue gas generated in the production process into the waste heat recovery boiler for steam
     production. After stabilizing the pressure and the fluid, the flue gas is fed into a turbine generator for high-quality power      supports low-carbon development in the industrial chain. With the advantages of aluminum alloy being light-weight
     output, enabling the cascade utilization of energy. The project fully utilizes the medium and low-level waste heat resources       and high-quality, the Company's products are widely used in high-end domains such as photovoltaics, light-weight
     and the heat of high-temperature flue gas discharged from the original production line. With a total installed capacity of 5 MW,   automobiles and 3C electronics. To a great extent, the Company has met the environmental and low-carbon
     the annual power generation reaches 35.64 million kWh, saving up 10,781 tons of standard coal annually.                            requirements of downstream customers for green products and a green industry. Meanwhile, the Company is working
                                                                                                                                        closely with customers in the downstream supply chain to explore possibilities of carbon reduction. We are committed
                                                                                                                                        to cooperating with customers to carry out green and low-carbon production throughout the entire industrial chain to
                                                                                                                                        continuously strengthen the green attributes of the industry.
                                     Reaches    35.64      million kWh, saving up           10,781 tons of                                             Photovoltaics
                                     standard coal annually.
                                                                                                                                           The Company's aluminum alloy products are used in key parts such as solar panel frames, photovoltaic
                                                                                                                                           modules, and photovoltaic pillars due to their high durability, light weight, corrosion resistance and
                                                                                                                                           recyclability. Aluminum alloy is capable of improving the overall performance and reliability of photovoltaic
                                                                                                                                           equipment and enhancing its ability to withstand wind and snow loads. Meanwhile, it effectively reduces the
                                                                                                                                           risks of load bearing, thereby expanding the application scenarios of rooftop distributed photovoltaics while
                                                                                                                                           increasing the installed capacity of photovoltaics. In addition, aluminum alloy can significantly reduce carbon
                                                                                                                                           emissions during the product lifecycle compared to steel during transportation. The excellent corrosion
                                                                                                                                           resistance of aluminum alloy can extend the service life of photovoltaic equipment. Moreover, due to the
                                                                                                                                           convenience of recycling, the recovery rate of aluminum alloy in photovoltaic equipment remains high after
                                                                                                                                           years of use, with the energy consumption for recycling being only a small portion of that of steel. These
                                                                                                                                           advantages of aluminum alloy have promised a vast array of its potential applications in the photovoltaics
                                                                                                                                           industry.
                                                                                                                                                       Lightweight automobiles
                                                                                                                                           The aluminum alloy materials produced by the Company are widely used in automotive trim parts, sunroof
                                                                                                                                           guide rails, automobile seats, battery trays, etc. Their strength and other indicators meet the requirements for
                                                                                                                                           automotive rigidity and performance. Additionally, the use of aluminum alloy has replaced that of steel to
                                                                                                                                           reduce the weight of automobiles.
                                                                                                                                           The aluminum alloy products produced by the Company are mainly used for decorative parts, support parts,
                                                                                                                                           shell cases, frame materials, and structural components for various categories of electronic products such as
                                                                                                                                           laptops, tablets, mobile phones, and wearable devices. They have been supplied to many well-known 3C
                                                      Waste heat turbine generator                                                         electronic brands. The light-weight and high-strength aluminum alloy is highly compatible with the trend of
                                                                                                                                           portability and thinness in the development of 3C electronics. The application of secondary aluminum alloy also
                                                                                                                                           helps to reduce carbon emissions in the life cycle of consumer products. Currently, the Company has gained
                                                                                                                                           recognition from global leading customers in 3C electronics for its advanced manufacturing technology and 40
                                                                                                                                           excellent performance of green and low-carbon aluminum products.
                                                                                                                                       About              Sustainable            Pursuing Green         Green-driven         Practicing Sound            Unite Efforts and
Innovation New Material         2023 Environmental, Social and Governance Report                                                       Innovation         Development            Cycle to               Innovation and       Management to               Join Hands to
                                                                                                                                       New Material       Management             Promote Green          Product-led          Promote Responsibility-     Forge Development
                                                                                                                                                                                 Development            Development          Driven Development          Together
Actively Responding to Climate                                                                                                           Risks and potential impacts                                                 Coping strategies
Change
                                                                                                                                         Physical risks
                                                                                                                                                          Climate change has led to an increase in the
                                                                                                                                                          frequency of extreme weather events such as
                                                                                                                                                          floods and typhoons, which may result in power
                                                                                                                                                          outages, water supply interruptions , and damage
This year, in order to systematically analyze the impact and opportunities of climate change on the Company's                                Acute        to logistical routes, potentially disrupting the           The Company will develop contingency plans related to
operations, the Company referred to the Recommendations of the Task Force on Climate-related Financial Disclosures                                        Company's normal operations and causing                    supply chain protection to respond to unexpected
                                                                                                                                                          financial losses.                                          natural weather events and meet the transportation
(TCFD) to proactively identify the risks of climate change and analyze the ability of our measures to cope with the risks.
                                                                                                                                                                                                                     needs.
                                                                                                                                                          Climate change is causing a sustained rise in
                                                                                                                                                          global temperatures, which may lead to chronic             Besides, the Company will carry out equipment
                                                                                                                                                          risks such as the melting of sea ice, rising sea levels,   replacement to improve resilience against natural
 Risks and potential impacts                                            Coping strategies                                                                 and changes in water resource distribution. It may         disasters.
                                                                                                                                            Chronic       also affect the Company's operating costs through
 Transition risks                                                                                                                                         increasing     the    frequency     of     equipment
                                                                                                                                                          maintenance       and    refrigerating     equipment
                                                                                                                                                          purchases.
                    China has launched a national carbon market, with
                    the requirements for controlling carbon emissions
                                                                                                                                       Climate change as an opportunity
                    becoming increasingly strict, which may create an
                    impact on the Company's operations, e.g., higher
                    operating costs due to the need to invest more in       The Company will actively respond to national policies
                    technology improvement.                                 and industry development trends by accelerating the        Innovation New Material is actively responding to the demand for green development in the value chain. By reducing
 Policy and                                                                 green transformation and increasing the use of clean
 Legal
                    Internationally, barriers to carbon-related trade,                                                                 our operational carbon emissions and increasing the use of green energy in production and operations, we are driving
                    such as the EU Carbon Border Adjustment                 energy and green aluminum to reduce carbon emissions.
                                                                                                                                       the green and low-carbon development of the entire value chain. Referring to the TCFD framework, the main climate
                    Mechanism (CBAM), continue to increase. This will
                    not only impact the Company's future exports to                                                                    opportunities we have identified include:
                    overseas markets, but also affect the cross-border
                                                                                                                                        Opportunity
                    transactions in the downstream value chain.                                                                                            Opportunities and potential financial impacts
                                                                                                                                        type
                                                                            The Company will continue to optimise energy                                   Innovation New Material is committed to helping the value chain achieve green and low-carbon development.
                    With China's ''carbon peaking by 2030 and carbon        conservation and emission reduction management,                                We actively promote the use of green and clean energy while upgrading production processes to create low-
                    neutrality by 2060'' goals, the country's carbon        promoting the research and application of aluminum                             carbon products. In addition, we vigorously promote the application of the philosophy of circular economy by
                    emission policies will be gradually tightened,          recycling technology.                                        Products and      signing strategic cooperation agreements on aluminum recycling with downstream customers to enable the
                    putting pressure on the Company to reduce carbon        The Company will continue to conduct research in clean         services        production of greener and lighter aluminum alloy products and provide solutions that better meet low-carbon
     Technology     emissions. In the short and medium term, the            technologies and vigorously optimise the energy                                needs. Meanwhile, we contribute to the high-quality development of the new energy industry by providing
                    Company may have to resort to clean technologies        structure, such as increasing the usage of clean energy,                       high-quality aluminum alloys for industries such as wind power and photovoltaics, to boost the joint creation
                    due to carbon reduction needs, resulting in             including photovoltaic and wind energy. Moreover, the                          of economic and social value along the value chain.
                    increased operating costs.                              Company will accelerate the energy structure                                   To achieve low-carbon development goals, countries and regions worldwide have rendered strong support to
                                                                            adjustment of its subsidiaries .                                               green development in various industries to reduce the consumption of traditional energy. Therefore, the
                                                                                                                                            Markets
                                                                                                                                                           Company vigorously promotes low-carbon transformation by responding to market demands for green
                    The Company's downstream enterprises are placing                                                                                       aluminum alloys and seizing new market opportunities to create new growth drivers for income.
                    greater emphasis on the low-carbon attributes of        The Company already has a production line for
                    their products and services, thus elevating the low-    secondary aluminum alloy. In the future, the Company                           The Company has carried out gradual energy-conserving technological upgrades to improve the energy
                    carbon requirements for upstream aluminum alloy         will gradually increase the use of secondary aluminum in       Resource        efficiency of production, reduce the use of resources, and scaling dowin energy consumption. In the meantime,
                    manufacturers. The shift in market demand is            other production lines as well to enhance the green            efficiency      benefiting from the increase in production capacity, the Company can produce more finished goods within the
       Market
                    accompanied by the emergence of new                     attributes of products and expand the market share of                          same time frame to generate more profits.
                    opportunities, while products not compliant with        the Company's green products.
                                                                                                                                                           The Company is constructing green energy facilities such as photovoltaic and wind power stations in multiple
                    the green attributes face the risk of obsolescence.
                                                                                                                                                           operating locations, planning to gradually replace traditional energy uses in production activities. While
                                                                                                                                         Energy source     reducing our carbon emissions, we also have also mitigated the compliance risks arising from stricter emission
                                                                                                                                                           policies in the future. In addition, the Company continues to increase the usage of clean energy such as
                                                                                                                                                           hydropower in Yunnan Province.
                                                                            The Company will establish special communication
                    Inconsistency between the Company's business                                                                                           The Company actively lays out the low-carbon development of the whole process of products, gives full play to
                                                                            channels with stakeholders. When problems arise, the
                    behaviour and its green and low-carbon philosophy                                                                                      the advantages of industrial cooperation, cooperates with upstream enterprises with a higher proportion of
                                                                            Company will quickly develop and implement remedial
     Reputation     may affect its reputation and image, jeopardizing its                                                                                  clean energy use, expands the proportion of green power aluminum raw materials at source, expands the
                                                                            solutions while providing timely feedback to
                    market performance.                                                                                                                    channels of secondary aluminum, increases the proportion of secondary aluminum raw materials, and realizes
                                                                            stakeholders.
                                                                                                                                           Resilience      the reduction of carbon at source; and continues to increase the investment in and construction of secondary
                                                                                                                                                           aluminum alloy projects, expands the proportion of secondary aluminum alloy products, and produces more
                                                                                                                                                           low-carbon products, so as to enhance the ability of the Company to grasp the new opportunities of low-
                                                                                                                                                           carbon markets such as green aluminum alloys and other new opportunities in the low-carbon market, and
                                                                                                                                                           enhance the Company's resilience to cope with the impact of climate change.
                                                                                                                                                            About             Sustainable        Pursuing Green     Green-driven        Practicing Sound           Unite Efforts and
Innovation New Material            2023 Environmental, Social and Governance Report                                                                         Innovation        Development        Cycle to           Innovation and      Management to              Join Hands to
                                                                                                                                                            New Material      Management         Promote Green      Product-led         Promote Responsibility-    Forge Development
                                                                                                                                                                                                 Development        Development         Driven Development         Together
Practicing Environmental                                                                                                                                    Environmental risk management
Protection
                                                                                                                                                            To prevent and control sudden environmental incidents and risks, the Company has formulated the Contingency Plan
                                                                                                                                                            for Sudden Environmental Incidents and filed it in accordance with legal requirements such as the Management
                                                                                                                                                            Measures for the Filing of Contingency Plans for Sudden Environmental Incidents in Enterprises and Institutions (Trial).
                                                                                                                                                            Considering the Company's characteristics, the Company has identified factors relevant to environmental impact
The Company always adheres to the environmental protection philosophy of ''Lucid waters and lush mountains are
                                                                                                                                                            before screening risks to rectify hidden dangers. We require personnel responsible for environmental protection to
invaluable assets'' through continuous improvement of environmental protection management and persistent efforts
                                                                                                                                                            regularly inspect the operations in workshops and conduct investigations into hidden dangers such as hazardous
to reduce the environmental impacts of production and operation, including formulating strict standards, adopting
                                                                                                                                                            materials, fires, atmospheric impacts, soil environment, etc. For the exposed environmental risks, the Company has
advanced emission reduction technologies, and cultivating employees' awareness of environment protection. In doing
                                                                                                                                                            established strict control procedures for rectification of environmental issues, specifying deadlines for solutions while
so, we have practiced the philosophy of green and sustainable development. This year, 2 subsidiaries have obtained
                                                                                                                                                            requiring all issues to be submitted to the Company's Safety and Environment Supervision Department in the form of
national-level green factory certification, with another 2 obtaining provincial-level green factory certification. On the
                                                                                                                                                            rectification reports for review.
municipal level, there are 2 subsidiaries with green factory certification. 1 subsidiary has also obtained municipal-level
green supply chain enterprise certification.
                       This year,    2 subsidiaries have obtained national-level green factory certification, with another
                       On the municipal level, there are 2 subsidiaries with green factory certification.
                       Besides, 1 subsidiary has obtained municipal-level green supply chain enterprise certification.
Strengthening environmental management
The Company strictly complies with laws and regulations including the Environmental Protection Law of the People's
Republic of China, Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, Law
of the People's Republic of China on the Prevention and Control of Water Pollution, and the Law of the People's
Republic of China on Prevention and Control of Environmental Pollution by Solid Waste. In addition, the Company has
formulated environmental management policies such as the Environmental Protection Management Policy and the
Management Policy for Legal Disclosure of Environmental Information.
In order to carry out refined environmental management, the Company has established the Safety and Environment
Supervision Department that is responsible for the overall environmental supervision, inspection and management,
the handling of environmental protection procedures for construction projects, and the implementation of the ''three
simultaneities''1 . Meanwhile, we dispatch full-time personnel to supervise and inspect the management progress of
waste gas, wastewater and solid waste at each subsidiary according to the Company's environmental policies and
management requirements to screen and rectify potential environmental risks. By the end of 2023, all subsidiaries of
the Company have obtained the ISO 14001 environmental management system certification, and Suzhou Chuangtai is
applying for the certification of ASI PS performance standard management system.
                                  All subsidiaries of the Company have obtained the                ISO 14001
                                  environmental management system certification
                                  Suzhou Chuangtai is applying for the certification of              ASI PS
                                  performance standard management system.
 The facilities for pollution prevention and control in construction projects should be designed, constructed, and put into operation simultaneously with
the main project.
                                                                                                                                     About               Sustainable       Pursuing Green       Green-driven           Practicing Sound             Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                                         Innovation          Development       Cycle to             Innovation and         Management to                Join Hands to
                                                                                                                                     New Material        Management        Promote Green        Product-led            Promote Responsibility-      Forge Development
                                                                                                                                                                           Development          Development            Driven Development           Together
Implementing environmental protection
measures
                                                                                                                                              Case      Adopting the full-oil reclamation and purification system to make full use of waste gas
The Company persistently uses environmental protection equipment with higher efficiency and optimizes policies and                      Innovation Board Material uses a full-oil reclamation and purification system to purify oil mist in waste gas for
management measures to continuously reduce pollutant emissions for scientific and effective waste disposal as well                      utilization. This system purifies the oily flue gas in the purification tower, which uses the purified oil as fuel. In
as reasonable use of water resources, in an effort to maintain ecological balance and protect the natural environment.                  this way, the emission concentration of oily flue gas is reduced, with the resources recycled. With this system,
Waste gas treatment
                                                                                                                                        around 540 tons of rolling oil can be reclaimed every year, which promotes the Company's energy conservation
                                                                                                                                        and emission reduction as well as the sustainable development of circular economy.
The Company strictly implements the Integrated Emission Standard for Air Pollutants, the Emission Standard for Air
Pollutants from Industrial Kiln and Furnace, and local emission standards for air pollutants. The Company has
established a management system for waste gas treatment facilities and requires that emissions from all subsidiaries
shall not exceed relevant national or local emission indicators. In 2023, all pollutant emissions from the Company's
manufacturing bases met the national and local emission standards for air pollutants. At the Company's operational
site in Binzhou, the emissions of particulate matter, sulfur dioxide, and nitrogen oxides were significantly lower than
both the provincial standards of Shandong and the national standards. Specifically, the emissions of particulate matter
and sulfur dioxide were both lower than 10% of the national standard, while nitrogen oxide emissions were lower than
                      The emissions of particulate matter and sulfur dioxide were both lower than   10% of the national
                      standard , while nitrogen oxide emissions were lower than   50% of the national standard.
                      This year, the Company has invested   58.9298 million yuan in environmental protection.
                                                                                                                                                                               Full-oil reclamation and purification system
The Company also continues to upgrade and renovate environmental protection facilities to improve the operating
efficiency of environmental protection equipment. This year, the Company has invested 58.9298 million yuan in
environmental project renovation. Our main measures include:
     Installing and renovating
     equipment for waste gas
                                                     Conducting fuel
                                                    replacement and
                                                                                               Optimizing processes of               Wastewater governance
                                                                                                end-stage treatment
             treatment                             collecting waste gas                                                              The Company strictly complies with the Law of the People's Republic of China on Water Pollution Prevention and
                                                                                                                                     Control and other laws and regulations as well as local discharge standards of wastewater. According to the features of
                                                                                                                                     production processes, the Company has taken various measures for compliant treatment and recycling of wastewater
 The Company has introduced a                The Company opted for natural gas              For waste gas treatment, high-
                                                                                                                                     to discharge less wastewater and promote circular economy.
 regenerative low-nitrogen burner            as the only fuel in the smelting               efficiency cyclone dust collector and
 system to reduce nitrogen oxide             process to generate less waste gas.            bag filters are used for dust removal,
                                                                                                                                     For aluminum profile                                                                                        For wastewater in
 generation by adjusting the air             The efficiency of fugitive waste gas           with the treatment efficiency                                               In dyeing process                In machining process
 combustion ratio, which can reduce          collection has been improved to                exceeding 99.7%. The new full-oil         surface treatment                                                                                           daily operations
 nitrogen oxide emissions by about           99.5% by using larger gas hood on              recovery and purification system is
 upgraded 32 smelting furnaces with          diameter of the main flue and                  achieving an over 95% purification        of its nickel-containing         the wastewater                     wastewater reaches 80%             treated by the septic
 regenerative low-nitrogen burners,          increasing the air volume of the fan.          efficiency of oil mist and smoke.         wastewater after nickel          generated in this                  after treatment, with the          tank in the factory and
 reducing the concentration of                                                                                                        recovery for zero                process and from other             remaining 20% of                   then discharged into the
 nitrogen oxide emissions by about                                                                                                    discharge during                 sources to high-salt               concentrated wastewater            sewage network of the
                                                                                                                                                                       before recycling,                  types will be discharged in
                                                                                                                                                                       achieving a 90%                    the sewage network of the
                                                                                                                                                                       recycling rate.                    Park after compliance with
                                                                                                                                                                                                          treatment standards.
                                                                                                                           About             Sustainable        Pursuing Green      Green-driven        Practicing Sound           Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                               Innovation        Development        Cycle to            Innovation and      Management to              Join Hands to
                                                                                                                           New Material      Management         Promote Green       Product-led         Promote Responsibility-    Forge Development
                                                                                                                                                                Development         Development         Driven Development         Together
                                                                                                                           Waste management
          Case    Optimising the alkaline washing process to reduce wastewater discharge
                                                                                                                           The Company strictly complies with the Law of the People's Republic of China on the Prevention and Control of
                                                                                                                           Environmental Pollution by Solid Waste, the Standard for Pollution Control on Hazardous Waste Storage and other
     To improve wastewater utilization, Innovation Precision uses advanced alkali recovery technology to recycle           laws, regulations as well as national standards, and reduces the amount of waste generated at source and at the end
     alkali in the wastewater generated from mold cleaning. By adopting multi-process chemical and physical                through the improvement of the production equipment and processes, and the resourcefulness and minimization
     processes, Innovation Precision recycles 90% of alkali-containing wastewater from the cleaning process. These         management of the solid waste generated.
     processes also reduce the use of approximately 200 tons of alkali tablets and 90% of sodium hydroxide, thereby
     achieving the reuse and conservation of water and other resources.                                                    For hazardous waste, we strictly abide by the Standard for Pollution Control on Hazardous Waste Storage to build
                                                                                                                           standardized storage warehouses for hazardous waste. Besides, we have made detailed plans and established a
                                                                                                                           standardized system as well as ledger for hazardous waste management, regulating the overall management of
                                                                                                                           hazardous waste. Striving to achieve ''zero landfill'' of waste, we have legally entrusted external qualified third parties
                                                                                                                           for hazardous waste disposal, adhering to the principle of ''organizations capable of comprehensive utilization and
                                                                                                                           disposal come first''.
                                                                                                                           Leftover materials in production are also recycled in a comprehensive way. The Company adopts advanced
                                                                                                                           technologies to screen and recycle aluminum ash. After the screening process, the up-to-standard aluminum ash is
                                                                                                                           processed again, with the remaining scrap waste recycled by qualified third parties for the production of high-value-
                                                                                                                           added products, in an effort to promote the development of circular economy along the value chain. Meanwhile, we
                                                                                                                           continue to upgrade equipment to reduce hazardous waste generation. The replacement of aluminum ash separators
                                                                                                                           has reduced the aluminum content in the secondary aluminum ash to below 5%, reducing the generation of both
                                                                                                                           secondary aluminum ash and hazardous waste.
                                                                                                                                      Case    Accelerating technology upgrades to improve recycling efficiency
                                                                                                                                Innovation Board Material uses aluminum ash separators before using ball milling screeners for aluminum
                                                                                                                                ash extraction, improving the recycling efficiency of aluminum ash. This year, Innovation Board Material
                                                                                                                                recycled more than 8,000 tons of aluminum blocks (including granular), reducing the generation of solid
                                                                                                                                waste while promoting waste recycling.
                                            Alkaline washing device and process
                                                                                                                           The Company collects the general solid waste and domestic waste at fixed sites as required. Waste with recovery value
                                                                                                                           will undergo the comprehensive recycling process, with the rest handed over to a qualified third party for regular
Water resource management
                                                                                                                           disposal. In 2023, Innovation Board Material recycled around 3,000 waste wooden pallets throughout the year.
Strictly abiding by the Water Law of the People's Republic of China, the Law of the People's Republic of China on Water
Pollution Prevention and Control and other laws and regulations, the Company continues to practice refined
management of water resources. The water used by the Company mainly comes from the municipal tap water network,
of which the main purposes are designated for office operations, canteen's catering and production. The Company
attaches great importance to the rational use of water and pays close attention to the management of water
conservation. To enhance employees' awareness of water conservation, the Company has posted signs such as
''Please save water'' near water-consuming facilities to emphasize the importance, calling for joint efforts to protect
the environment.
The Company takes sustained actions to manage water resources. For example, all recirculated cooling water used in
producing aluminum alloy materials is reused rather than discharged, with fresh water regularly replenished.
Innovation Precision has recollected the water used in anodising production for toilet flushing, saving about 1,100 tons
of water annually.
                                                                               About          Sustainable   Pursuing Green   Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report   Innovation     Development   Cycle to         Innovation and   Management to             Join Hands to
                                                                               New Material   Management    Promote Green    Product-led      Promote Responsibility-   Forge Development
                                                                                                            Development      Development      Driven Development        Together
Green-driven
Innovation and
Product-led
Development
In today's ever-changing and challenging era, Innovation
New Material adheres to the spirit of ingenuity, and stays
committed to development driven by both technological
innovation and quality management. We spare no efforts
to accelerate the construction of R&D platforms, overcome
difficulties in process technologies, and actively participate
in the formulation of industry standards, to shape a
healthier and more sustainable industry ecosystem.
Besides cultivating technical elites and promoting smart
transition of production to enhance our own technical
strengths, we also contribute to the sustainable
development of the entire industry. Furthermore, due to
strict control of product quality and constant optimization
of customer service, we have won the trust of our
customers, and laid a solid foundation for common
development of the industry.
This chapter responds to the UN SDGs
                                                                                                                        About               Sustainable          Pursuing Green         Green-driven       Practicing Sound             Unite Efforts and
Innovation New Material    2023 Environmental, Social and Governance Report                                             Innovation          Development          Cycle to               Innovation and     Management to                Join Hands to
                                                                                                                        New Material        Management           Promote Green          Product-led        Promote Responsibility-      Forge Development
                                                                                                                                                                 Development            Development        Driven Development           Together
Diving Deep into Technological
                                                                                                                        In 2023, the Company had 110 newly authorized patents, including 18 invention patents, and 92 utility model patents.
                                                                                                                        By the end of 2023, we had obtained 445 patents in total, including 44 invention patents, and 401 utility model patents.
Innovation
                                                                                                                        Innovation Metal's invention patent - ''a process for producing electronic aluminum alloys by using secondary
                                                                                                                        aluminum'' won the first prize of 2023 Binzhou Patent Award. Innovation Precision's invention patent - ''a method for
                                                                                                                        testing coarse crystal layer of aluminum alloy'' won the second prize of 2023 Binzhou Patent Award.
Pursuing the mission of ''innovation makes the future'', the Company has formulated supporting policies and built
innovation platforms to boost independent innovation development. We also promote patent R&D, participate in the
standard formulation, and foster innovative talents, to enhance our abilities to innovate production technologies and
transform results, which strongly bolsters the development of the Company and the industrial chain.                                            The Company has
                                                                                                                                               and 92 utility model patents. We have obtained 445 patents in total, including
                 Key aspects of Innovation New Material's technology R&D                                                                       44 invention patents, and 401 utility model patents.
                                                                                                                        Accelerating the construction of R&D
                                                                                                                        platforms
                                                                                                                        The Company recognizes the importance of building a solid scientific research foundation. In this regard, the Company
                                                                                                                        strives to promote close ''industry-university-research'' cooperation by constructing research institutes, studios,
                                                   Accelerating the
                                                   construction of
                                                                                                                        practice bases, etc., so as to enhance the R&D strengths of the Company and the industry. By the end of 2023, we had
                                                    R&D platforms                                                       established various platforms such as the ''Innovation Alloy Research Institute'', the ''Academician Workstation of
                                                                                                                        Shandong Province'', New-type R&D Institution of Shandong Province, the ''Postdoctoral Research Practice Base of
                                                                                                                        Shandong Province'', the ''Enterprise Technology Centre of Shandong Province'', the ''Shandong Engineering Research
                                                                                                                        Centre for New Aluminum Alloy Materials with Ultra Strength and High Toughness'' and the ''Model Worker Innovation
                       Promoting smart                                            Focusing on                           Studio''. In doing so, we exert ourselves in R&D, to promote the transformation of R&D achievements.
                         transition of                                              key R&D
                          production                                                projects
                                                                                                                                             Promoting industry-university-research cooperation to tackle difficulties of the industry
                                                                                                                                   Case
                                                                                                                                             technologies
                                                                          Participating in                                   This year, the ''Shandong Engineering Research Centre for New
                                 Fostering                                                                                   Aluminum Alloy Materials with Ultra Strength and High Toughness''
                                                                             industry
                                  industry                                                                                   jointly built and operated by the Company and Central South
                                                                            standards                                        University was approved by the Shandong Development and
                                 technical
                                                                           formulation                                       Reform Commission. Focusing on the major strategic needs of the
                                   talents
                                                                                                                             country, the Research Centre is devoted to overcoming the common
                                                                                                                             technical problems that need to be addressed in the aluminum
                                                                                                                             processing industry, considering the technological development of
                                                                                                                             the industry. These problems include producing high-end
                                                                                                                             aluminum alloy products with secondary aluminum, removing
                                                                                                                             damaging elements in the melt, controlling impurity elements,
                                                                                                                             casting with homogenized structure, and the heat treatment
                                                                                                                             technology with multi-scale and microstructure coordinated control
                                                                                                                             of comprehensive performance. By tackling these difficulties, the     Shandong Engineering Research Centre for New
                                                                                                                             Centre aims to boost green and circular economy in recycling         Aluminum Alloy Materials with Ultra Strength and
                                                                                                                             aluminum.                                                                           High Toughness
                                                                                                                                         About              Sustainable         Pursuing Green       Green-driven         Practicing Sound             Unite Efforts and
Innovation New Material         2023 Environmental, Social and Governance Report                                                         Innovation         Development         Cycle to             Innovation and       Management to                Join Hands to
                                                                                                                                         New Material       Management          Promote Green        Product-led          Promote Responsibility-      Forge Development
                                                                                                                                                                                Development          Development          Driven Development           Together
Focusing on key R&D projects                                                                                                             Participating in industry standards
The Company constantly works on the high-end technology R&D, and participates in the research of local and national
                                                                                                                                         formulation
                                                                                                                                         The Company plays an active role in the formulation of industry
key science and technology projects, receiving high recognition from the industry peers. In 2023, Innovation Metal and
                                                                                                                                         technical standards, tapping into the standardized development in
Innovation Precision were selected into the ''Cultivation List of Shandong New Material Leading Enterprises''. To be
                                                                                                                                         key and hot areas, such as high-end alloy manufacturing, secondary
specific, Innovation Metal was honored as ''The Most Innovative Enterprise in 2022'' by All-China Federation of Industry
                                                                                                                                         aluminum manufacturing, and green manufacturing. So, we actively
and Commerce, and its ''R&D and application management team of the key technology in high-end aluminum'' won
                                                                                                                                         participate in the formulation and revision of a number of national,
the honor of ''2023 Binzhou Most Beautiful Science and Technology Innovation Team''. Innovation Precision was
                                                                                                                                         industry and group standards, to promote the high-quality
certified as Shandong ''One Enterprise, One Technology'' R&D Centre, and Binzhou Industrial Design Centre. Its project
                                                                                                                                         development of industry technologies. In 2023, the Company
- ''lightweight alloy material application in rail transit with an annual output of 100 thousand tons'' was selected as the
                                                                                                                                         participated in the formulation and revision of standards related to
Shandong New Material Innovation and Application Demonstration Project.
                                                                                                                                         secondary aluminum, aluminum scrap, environmental indicators and                        The Company participated in
                                                                                                                                         energy consumption indicators for the aluminum industry, quality
                                                                                                                                         measurement and other aspects. The Company participated in the                          the revision of   2national
                                                                                                                                         revision of 2 national standards, namely, the Recycling Material for                    standards,
           Case      Supporting the R&D of key projects to foster industry leader                                                        Cast Aluminum Alloys and the Aluminum and Aluminum Alloy Terms
                                                                                                                                                                                                                                 We also participated in the
                                                                                                                                         and Definitions—Part 4: Aluminum Scrap, the latter of which was
                                                                                                                                         approved as Shandong Original Technical Standard Project. We also
     In 2023, Innovation Metal led academic institutions and third-party professional companies in carrying out the project                                                                                                      revision of
     ''R&D of complete set of technology for manufacturing high-quality secondary aluminum alloy''. The project was funded by            participated in the revision of 3 group standards; the standard that the
     Project). To effectively help the industry to achieve the goal of carbon peak and carbon neutrality, the project focuses on         Award for Technical Standards awarded by the National Nonferrous
     solving key needs in the development and engineering application of the secondary aluminum industry. The project covers             Metals Standardization Technical Committee, and the standard that
     the efficient separation of secondary aluminum, impurity removal, melt treatment, refinement and toughening of anti-                the Company participated in the compilation won the second prize of
     poisoning seed, smelting and casting, intelligent production and typical application demonstration. Meanwhile, based on             the Excellence Award for Technical Standards.
     the ''industry-university-research'' cooperation model, the project is committed to building a sound development and
     industrial application system of complete set of technology for high-quality secondary aluminum alloy manufacturing.
                                                                                                                                                             Participating in preparing technical standards to lead the high-end development of the
                                                                                                                                                   Case      industry
                                                                                                                                              In 2023, the Code for Control of Wastewater , Waste Gas and Scrap Waste from Aluminum and Aluminum Alloy Melting and
           Case      Demonstration projects for common development of the industry                                                            Casting led and prepared by Innovation Metal and Suzhou Chuangtai Alloy Materials Co., Ltd. won the first prize of the
                                                                                                                                              Excellence Award for Technical Standards awarded by the National Nonferrous Metals Standardization Technical
                                                                                                                                              Committee. Innovation Metal participated in preparing the Aluminum Alloy Ingots for Aviation Products, which won the
     This year, Innovation Precision's project - ''lightweight alloy material application in rail transit with an annual output of 100        second prize of the Excellence Award for Technical Standards awarded by the National Nonferrous Metals Standardization
     thousand tons'' was shortlisted for Shandong New Material Innovation and Application Demonstration Projects. As a                        Technical Committee. The awards not only demonstrate the Company's crucial contributions to the national nonferrous
     ''Shandong New Material Leading Enterprise'', Innovation Precision will take the opportunity of being shortlisted for                    metal standardization, but also show full recognition of the Company's efforts in promoting high-quality development of
     Shandong New Material Innovation and Application Demonstration Projects to further replace old growth drivers with new                   the industry.
     ones. By deepening ''industry-university-research'' cooperation, Innovation Precision enhances the R&D strength, and
     makes greater contributions to the new material industry of Shandong Province.
                                          lightweight alloy material application in rail transit                                               The first and second prize of the Excellence Award for Technical Standards awarded by the National Nonferrous Metals
                                                                                                                                                                                        Standardisation Technical Committee
                                                                                                                        About               Sustainable          Pursuing Green       Green-driven          Practicing Sound               Unite Efforts and
Innovation New Material        2023 Environmental, Social and Governance Report                                         Innovation          Development          Cycle to             Innovation and        Management to                  Join Hands to
                                                                                                                        New Material        Management           Promote Green        Product-led           Promote Responsibility-        Forge Development
                                                                                                                                                                 Development          Development           Driven Development             Together
Fostering industry technical talents                                                                                    Promoting smart transition of production
Pursuing ''a beautiful future through innovation'', the Company puts emphasis on cultivating technological innovation   To create a first-class ''excellent operation + intelligent manufacturing'' benchmark factory, the Company is committed
talents that can contribute to the progress of the Company and the industry. To further strengthen the training of      to integrating science and technology application into production and operation, to improve the production and
innovative talents, the Company has formulated the Enterprise Administrative Policy for All Staff Innovation. We also   operation efficiency, and lay the foundation for rapid and high-quality development. In 2023, we carried out digital
carry out multi-dimensional talent training programs, and hold labor competition for excellence, to stimulate           reform of production processes. Specifically, we have launched the real-time tracking system of secondary aluminum
employees to bring out their innovation abilities. Additionally, diversified innovation activities are organized to     and the QR code management system to ensure the traceability of products, which realized the visualization,
advocate innovation culture among all employees.                                                                        standardization and datafication in production. In addition, we developed a production management system with a
                                                                                                                        third-party developer, the Manufacturing Operation Management (MOM) platform. We also introduced an online
                                                                                                                        energy consumption data collection system, to apply the digital concept into the entire process of our production and
                     Holding a recognition meeting for ''outstanding workers'' to mobilise innovation                   operation.
           Case      enthusiasm
                                                                                                                        In 2023, thanks to the potential of industrial data resources and the new data-driven manufacturing model, Innovation
     In July 2023, Shandong Chuanghui New Material                                                                      Precision was accredited in the first batch of ''Morning Star Factories'' for the digital economy in Shandong Province.
     Technology Co., Ltd. held a recognition meeting for                                                                Meanwhile, Innovation Precision was included in the second batch of pilot enterprises certificated by Data
     ''outstanding workers'' in cable workshop, at which 6                                                              Management Capability Maturity Assessment Model (DCMM) in Shandong Province in 2023. This honor provides a
     awards were presented by the general manager. In this                                                              reference for Innovation Precision to enhance its data management capabilities in terms of data standards, data
     activity, the Company's Cable Department learnt from                                                               governance and data quality, thereby promoting its digital, networking and intelligent transformation and upgrading.
     benchmarking enterprises, and adopted a series of
     reform measures such as ''fixed staff, fixed post, and fixed
     value'' for the wire drawing equipment of the workshop,
     which greatly improved the workshop capacity. From the
     study activity, employees were inspired to fully
     implement the production concept of ''reducing cost and
     increasing efficiency with outstanding quality'', to           Recognition meeting for ''outstanding workers''                Case     The MOM system was adopted for a refined operation management
     promote innovation and make breakthroughs.
                                                                                                                             This year, Innovation Precision introduced the MOM system to realize standardized operational processes, transparent
                                                                                                                             management and real-time data analytics. The system contains five modules, namely, planning and scheduling,
                                                                                                                             production management, intelligent equipment, intelligent energy management and intelligent carbon management. By
                                                                                                                             linking and combining the information, the system enables each management unit to identify and solve problems in a
                                                                                                                             timely manner on the same platform and in the same dimension, effectively improving the efficiency of problem solving.
           Case      Collecting ''innovation and breakthrough'' proposals to foster an innovation atmosphere                 The adoption of the MOM system will steadily promote Innovation Precision's digital transformation and upgrading,
                                                                                                                             realizing paperless and automated office, as well as real-time monitoring and refined management of production and
                                                                                                                             operations, and effectively supports its scale development.
     This year, to encourage all employees to innovate,
     Innovation Precision held the ''Innovation and
     Breakthrough'' improvement proposal collection activity,
     with 1,325 participants, and 698 proposals obtained. At
     the recognition meeting, 812 employees of 425 cases
     were rewarded with RMB 61.1 thousand of incentive
     money in total. Besides, the management of Innovation
                                                                                                                                   Case     Automated casting systems were introduced to create a refined production process
     Precision encouraged employees to actively participate
     in the ''innovation and breakthrough'' activity, and put
     the improvement suggestions and programs into                                                                           To ensure continuous quality improvement, the Company introduced the world-leading automated casting system.
     practice to improve work efficiency. In addition, the                                                                   Additionally, the most advanced hardware was equipped to optimize the special software used in direct chill casting,
     general manager of Innovation Precision called on                                                                       creating a ''one-stop'' solution for intelligent manufacturing. This system provided necessary tools and historical data for
     employees to ''review'' the proposed improvement cases,                                                                 the production and manufacture of some products, and helped to improve product quality. Moreover, the Company
     so as to achieve persistence, continuous promotion and          Recognition meeting for the ''innovation and            introduced a new electromagnetic multi-layer filtration system to filter the liquid aluminum by electromagnetic force,
     maximum benefit. Employees were also encouraged to               breakthrough'' proposal collection activity            performs real-time summary and analysis of measurement data through automated sample loading and automated
     continue to put forward more excellent improvement                                                                      sample measurement, to achieve comprehensive monitoring and precise control of product quality.
     suggestions.
                                                                                                                                About                    Sustainable            Pursuing Green          Green-driven              Practicing Sound            Unite Efforts and
Innovation New Material       2023 Environmental, Social and Governance Report                                                  Innovation               Development            Cycle to                Innovation and            Management to               Join Hands to
                                                                                                                                New Material             Management             Promote Green           Product-led               Promote Responsibility-     Forge Development
                                                                                                                                                                                Development             Development               Driven Development          Together
Striving for Excellent Quality                                                                                                  Full-process quality control
                                                                                                                                The Company focuses on the whole process of quality management, from raw materials procurement to supplier
                                                                                                                                classification management, from product quality planning to the quality control of the manufacturing process , from
The Company firmly believes that quality products are the key factor to win customers' trust and competitiveness in             the quality inspection and delivery and the post-delivery service quality, each stage of the process is fully integrated
the market. Adhering to the quality management concept of ''customer orientation, full participation, and continuous            with the concept of the PDCA2 quality management cycle to achieve a comprehensive process of fine quality control.
improvement'', we adopt the quality approach of putting quality first, seeking continuous improvement, complying                In order to promote standardized management, we have formulated a series of operation standards, including
with the law and serving customers. In this way, we aim to optimize the quality management system on a continuous               incoming inspection operation standards, process inspection operation standards and shipping inspection operation
basis. In addition, we have formulated strict product quality requirements that are integrated into the entire                  standards, aiming to ensure that there are clear quality control standards and operation norms for each stage of the
production process to provide high-quality products. In 2023, the Company won the Shandong Provincial Quality                   process from raw material warehousing to product shipment, avoiding the generation and outflow of substandard
Benchmarking Award and was nominated for the Shandong Provincial Governor Quality Award.                                        products, and improving the stability and reliability of product quality.
Quality management system
To continuously strengthen quality management, the Company has formulated internal procedures for quality
management and established a two-tier management structure with a Quality Management Centre and Quality                             Incoming quality inspection                            In-process quality inspection                         Out-going quality inspection
Management Department of subsidiaries to effectively report and present quality management requirements.
Meanwhile, the Company has clarified the quality management requirements for each position, to implement quality                     Clarify the requirements for                           Emphasize the continuous                              Clarify the items, inspection
management measures.                                                                                                                 quality measurement tools,                             quality control in the                                and operation methods and
                                                                                                                                     inspection equipment,                                  production process, including                         judgement standards
                                                                                                                                     inspection standards and                               the inspection requirements                           according to product
                          •    Coordinates the Company's quality management, formulates quality management policy, and               inspection methods,                                    for the first batch of finished                       standards, customer
       Quality                 supervises the quality management performance of business units.                                      standardize the procedures for                         products and the sampling                             requirements, quality plans
     Management                                                                                                                      dealing with anomalies, and                            requirements for each                                 and other information; clarify
       Centre                                                                                                                        emphasize the responsibilities                         production process;                                   the response process for
                                                                                                                                     of relevant inspection                                 emphasize whether the                                 abnormalities found in the
                                                                                                                                     personnel, so as to improve                            inspection of the appearance                          out-going quality inspection,
                                                                                                                                     the accuracy, standardization                          and performance of finished                           including the identification,
        Quality                Communicate and implement quality management in all aspects, including quality control,
                                                                                                                                     and consistency of inspection.                         products meets customer                               isolation, disposal and
                          •
     Management                quality improvement and quality assurance.
                                                                                                                                                                                            requirements; clarify the                             reporting of nonconforming
     Department of                                                                                                                                                                          inspection tools and                                  products, to avoid potential
      Subsidiaries                                                                                                                                                                          equipment, and the manner in                          nonconforming products from
                                                                                                                                                                                            which the results are recorded                        entering the market.
                          •    Include four stages: quality control, quality engineering, document control centre and quality                                                               and reported. Detailed
                               assurance; ensure the implementation of quality management measures at all stages;                                                                           instructions are also provided
       Quality                 implement the quality planning developed by the Company; participate in quality performance                                                                  for dealing with
     Management                assessment and training; accomplish quality management objectives.                                                                                           nonconforming products.
      Positions
                                                                                                                                In order to deepen the lean management of quality, we continue to introduce advanced quality management methods,
By the end of 2023, the Company and its subsidiaries have obtained the ISO 9001 Quality Management System                       including the creation of a ''lean'' quality culture, the establishment of a technical research group, the development of
Certification. Specifically, 8 subsidiaries have obtained the IATF 16949 Automotive Industry Quality Management                 quality control team activities, digital system analysis, etc., to continuously improve the quality management process,
System Certification.                                                                                                           and provide customers with high-quality products.
                                                                                                                                In addition, we have established a highly efficient quality issue handling process to ensure a quick response and
                                                                                                                                effectively prevent recurrence of similar issues. Once we receive a quality complaint, we immediately identify the cause
                                                                                              ISO 9001
                                                                                                                                and specify the responsible department to deal with the customer's problem in a timely manner. Subsequently,
                       The Company and its subsidiaries had each obtained                                            Quality    through the establishment of a quality feedback communication group and the release of monthly quality reports, we
                       Management System Certification.          8 of the Company's subsidiaries have obtained the              work with all departments to improve and prevent the recurrence of problems, so as to realize a virtuous cycle of
                       IATF 16949 Automotive Industry Quality Management System certification.
                                                                                                                                quality management.
                                                                                                                                    The PDCA cycle is a four-step model for quality management, namely Plan, Do, Check and Act.
                                                                                                                                      About               Sustainable         Pursuing Green        Green-driven            Practicing Sound               Unite Efforts and
Innovation New Material         2023 Environmental, Social and Governance Report                                                      Innovation          Development         Cycle to              Innovation and          Management to                  Join Hands to
                                                                                                                                      New Material        Management          Promote Green         Product-led             Promote Responsibility-        Forge Development
                                                                                                                                                                              Development           Development             Driven Development             Together
Hazardous substance control                                                                                                           Providing Quality Services
To provide high quality products, we continuously assess potential health and safety risks during production and use
of our products in accordance with legal and regulatory requirements as well as the requirements of our customers.
The scope of assessment covers raw material inspection, in-process quality inspection, finished product inspection,                   Adhering to the business philosophy that ''customer satisfaction is the key driving force for a wider presence'', the
and by-product inspection during the production. 5 subsidiaries of the Company have passed the QC080000                               Company continuously improves the service quality and actively responds to customer needs, thereby continuously
Hazardous Substance Process Management System Certification.                                                                          increasing customer satisfaction. We have developed a customer relationship management framework in modules
                                                                                                                                      according to business characteristics and processes, covering four areas of sales assistant, field sales assistant, on-site
                                                      Manufacturing process                                                           operations and secondary aluminum recovery, to provide comprehensive quality services. Meanwhile, the Company
         Raw material testing                                                                    Finished product inspection
                                                          monitoring                                                                  provides customers with a variety of feedback and complaint channels, including e-mail, WeChat, fax, telephone and
                                                                                                                                      on-site meetings. These channels enable the Company to listen to customers' demands and provide excellent services
                                                                                                                                      to customers.
     To ensure that the content of
     hazardous substances in raw
                                                   To minimise safety hazards during
                                                   the manufacturing process, we
                                                                                                 To ensure the safety of finished
                                                                                                 products, we carry out
                                                                                                                                           Customer complaint management process
     materials is lower than the                   monitor key parameters to ensure              comprehensive quality tests at the
     standard amount, we invite                    a reliable and stable production              inspection stage to ensure that           The Company has formulated Customer Feedback Process Control Procedures to standardise the customer complaint
     professional third parties to                 process;                                      the products meet the standards.          management process. The procedures provide detailed rules on the process and timeframe for handling customer
     conduct RoHS testing on relevant                                                                                                      complaints to ensure a timely and proper resolution of each customer complaint.
     suppliers., among which the
     qualified ones can be enrolled;
                                                                                                                                      The Marketing Department                         The Quality Management                               The responsible departments
                                                                                                                                      receives and responds to the                     Department organises a quality                       implement the above measures as
                                                                                                                                      complaint within 24 hours after it               review meeting within 48 hours                       planned within 72 hours. The
                                                                                                                                      happened, and forwards the                       and analyses the cause with the                      Quality Management Department
                                                                                                                                      complaint to the Quality                         relevant responsible departments,                    responds to customers by issuing
                                                                                                                                      Management Department and                        who formulate corrective and                         the 8D report (i.e., a problem
                                                                                                                                      relevant responsible departments.                preventive measures in                               solving method commonly used
                                                                                                                                                                                       accordance with the Process                          by engineers or other
                                                                                                                                                                                       Control Procedures for                               professionals) or by sending
                                                                                                                                                                                       Improvement, Corrective and                          contact letters, and monitors the
                                                                                                                                                                                       Preventive Actions, the Process                      abnormal closure of customer
Quality culture construction
                                                                                                                                                                                       Control Procedures for                               complaints.
                                                                                                                                                                                       Nonconforming Products and
                                                                                                                                                                                       other documents.
The Company continues to strengthen the construction of quality culture, and organises a variety of activities to raise                    Customer Satisfaction Survey
employees' quality awareness. In 2023, we actively carried out activities such as ''Quality Month'' and ''Quality
Champion Competition'' to enhance employees' understanding of quality management throughout the product life                               Meanwhile, the Company listens to the customers. At least once a
cycle.                                                                                                                                     year, the Company conducts satisfaction surveys for all
                                                                                                                                           customers through online questionnaires and offline visits. These
                                                                                                                                           surveys cover four aspects of product quality, service, delivery
                                                                                                                                           and hazardous material control, as well as product appearance,
             Case     Strengthening quality improvement and promoting technological innovation                                             service attitude, packaging and labelling. The Company then
                                                                                                                                           collects, collates and analyses the feedback data to produce
       The Company holds monthly or quarterly quality analysis meetings to summarise the quality performance and optimise                  product and service improvement suggestions and results
       the quality and cost structure, and formulates quality targets and improvement plans. Specifically, the Company had set             reports, which are presented to management as a basis for                     The Company conducted several customer
       up a technical research group dedicated to solving technical problems in production, inspection and internal and external           management improvement. In 2023, the Company conducted                        satisfaction surveys, and received a
       defects. In addition, the Company encourages the QC group to make technical innovations in procedures, energy                       several customer satisfaction surveys, and received a satisfaction
       consumption and process, and actively calls for all employees to put forward valuable suggestions to improve design                 rate of more than 90%.                                                        satisfaction rate of more than
       quality. With these measures, we not only significantly improved the quality of our products, but also effectively reduced
       production costs.
                                                                             About          Sustainable   Pursuing Green   Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material   2023 Environmental, Social and Governance Report   Innovation     Development   Cycle to         Innovation and   Management to             Join Hands to
                                                                             New Material   Management    Promote Green    Product-led      Promote Responsibility-   Forge Development
                                                                                                          Development      Development      Driven Development        Together
Practicing Sound
Management to
Promote
Responsibility-
Driven
Development
Faced with an increasingly complex business environment,
Innovation New Material continues to strengthen its risk
prevention and control capabilities to ensure sound business
operations. Meanwhile, the Company abides by business ethics,
strengthens patent and brand protection and enhances
information security and privacy management, to build a
responsible corporate image in a continuous manner. The
Company also makes sustained efforts to promote the common
development of the industry. By strengthening supplier
management, the Company strives to create a sustainable
ecosystem with suppliers.
This chapter responds to the UN SDGs
                                                                                                                         About             Sustainable        Pursuing Green      Green-driven       Practicing Sound            Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                             Innovation        Development        Cycle to            Innovation and     Management to               Join Hands to
                                                                                                                         New Material      Management         Promote Green       Product-led        Promote Responsibility-     Forge Development
                                                                                                                                                              Development         Development        Driven Development          Together
Improving Risk Prevention and
Control Capabilities
                                                                                                                                                             Email address(sdcxjt@sdcxjt.com)
                                                                                                                                                             Hotline(0543-6981801、0543-6981777)
The Company actively strengthens risk management, and keeps strict compliance with relevant laws and regulations.
In addition, we have formulated internal risk management policies to prevent and control potential risks and
safeguard the sound operation of the Company. To this end, the Company has established three lines of defence:
                                                                                                                         Meanwhile, the Company has established strict requirements to protect the whistleblower privacy and manage the
                                                                                                                         reporting information to ensure that whistleblowers can effectively exercise their legitimate rights. To strengthen the
                                                                                                                         integrity construction of suppliers, the Company attaches the Integrity Agreement to the commercial contracts signed
     The first line of defense            The second line of defense                The third line of defense            with suppliers and conducts integrity related audits on suppliers, to increase transparency and credibility in the supply
                                                                                                                         chain.
     Frontline employees serve as           The finance department, legal           The internal audit department        The Company is actively involved in the development of business ethics and organizes regular training on laws and
     the first line of defense,             department and archive office           acts as the third line of            regulations to continuously raise employees' awareness of legal compliance. This year, the Company carried out 18
     responsible for daily internal         act as the second line of               defense, responsible for the         training sessions on laws and regulations, which were attended by 1,454 middle and senior management personnel,
     control, assess risks and take         defense, monitor and inspect            internal audit and risk              project managers and related personnel. The training covered legal awareness, typical cases, and general knowledge.
     control matters, and report to         the execution situation of the          management review, ensuring          In addition, we conduct special legal and regulatory training for key departments. The training includes explanation of
     the management when                    first line, ensuring the                the rigor of the Company's           laws, regulations or rules, analysis of company cases and summary of lessons learned, to raise the legal awareness of
     necessary.                             complete control of risks.              internal risk controls.              manager personnel and relevant employees.
                                                                                                                         Additionally, the Company gives considerable weight to the protection of trade secrets of its partners. We have a
                                                                                                                         dedicated trade secret protection office that formulates the trade secret confidentiality system and the competition
Meanwhile, to ensure effective risk management, the Company has established a risk management system                     agreement system for our employees to ensure proper management of customer information. This year, the Company
coordinated by the Company's head office to monitor and evaluate the risk management performance of all internal         updated the Bidding and Business Integrity Agreement to further strengthen anti-corruption management at source.
organisations and subsidiaries. After the risk assessment, the Audit Department at the head office will summarize the    Meanwhile, the Company adopts technical measures such as data encryption and two-factor authentication to protect
assessment results and rectification suggestions in a timely manner and report to the Audit Committee. Meanwhile,        customer privacy, and sets access rights to enhance the confidentiality of customer information.
outstanding issues and corresponding actions will be followed up and implemented in a timely manner, forming a
                                                                                                                         Strengthening Patent and
closed-loop risk management system.
Strengthening Business Ethics                                                                                            Brand Protection
Construction                                                                                                             We are committed to protecting our own IP rights and respecting those of others to promote the common and
                                                                                                                         harmonious progress of the industry. In strict compliance with the Patent Law of the People's Republic of China, the
The Company firmly believes that business ethics are the cornerstone of sound business operations and sustainable        Trademark Law of the People's Republic of China and other laws and regulations, we have actively improved the IP
development. We strictly comply with the Company Law of the People's Republic of China, the Anti-Unfair Competition      management system, set up the IP management leading group and established the internal management system for
Law of the People's Republic of China, the Anti-monopoly Law of the People's Republic of China, the Anti-Money           patents, trademarks and software copyrights to protect the IP rights in an all-round way. Moreover, we include
Laundering Law of the People's Republic of China and other relevant national laws and regulations. In doing so, we       restrictive clauses in business contracts with our partners to clarify the allocation of IP rights and interests and the
have formulated policies such as the Code of Business Conduct, the Management Control Procedures for Anti-Foreign        information confidentiality obligations of each party, so as to avoid infringing on the legitimate rights and interests of
Bribery and Anti-Corruption, the Management Control Procedures for Prohibition of Accepting Bribes or Using Other        both parties. To avoid infringing IP rights of others, during the R&D of new products, the Company's technology center
Means to Obtain Improper Advantages and the Control Procedures for the Regulation of Ethical Standards to                strictly reviews and evaluates new product projects before they are launched. At the same time, the IP output and
effectively regulate the operations of the Company and the employees' code of conduct. In 2023, the Company had no       protection are continuously monitored to ensure that the IP risks are controlled. Additionally, the Company has a
violations of corruption, money laundering, unfair competition, bribery, extortion, and fraud that would have a          dedicated department that provides legal advice on IP-related issues involved in operations and assists other
significant impact.                                                                                                      departments with their IP management.
The Company attaches great importance to corporate anti-corruption and integrity. We have established a                  The Company incorporates training on intellectual property rights management and protection into the annual
comprehensive review system for violations of laws and regulations, sets up the Economic Oversight and Inspection        training for employees, organizes them to participate in intellectual property rights management training offered by
Department to take responsibilities in investigating illegal and disciplinary incidents, analyzing the results of        relevant departments, and invites experts to give special lectures. The Company also carries out special training on the
investigations and proposing countermeasures to prevent risks of business ethics. To ensure fair oversight, we provide   creation, application, and protection of intellectual property rights among the employees to enhance their awareness
employees, suppliers and other stakeholders with open reporting channels such as email and telephone.                    of intellectual property rights management and protection.
                                                                                                                           About             Sustainable       Pursuing Green     Green-driven       Practicing Sound          Unite Efforts and
Innovation New Material    2023 Environmental, Social and Governance Report                                                Innovation        Development       Cycle to           Innovation and     Management to             Join Hands to
                                                                                                                           New Material      Management        Promote Green      Product-led        Promote Responsibility-   Forge Development
                                                                                                                                                               Development        Development        Driven Development        Together
Stepping Up Information Security                                                                                           Supplier management and coordinated
                                                                                                                           development
Efforts                                                                                                                    In accordance with the Supplier Control Procedures, we collect information and conduct qualification audits on
                                                                                                                           suppliers before they are admitted, and form audit reports. Upon approval, we conduct comprehensive reviews of
The Company attaches great importance to information security and privacy protection and strictly observes laws and
                                                                                                                           suppliers before formal cooperation and require them to sign the Supplier Social Responsibility Commitment, the
regulations including the Cybersecurity Law of the People's Republic of China and the Personal Information Protection
                                                                                                                           Prohibited Substance Assurance Declaration and HSF Notice and other documents that guide them to improve their
Law of the People's Republic of China. The Company has formulated the Information Security Strategy and                    ESG performance. During the cooperation, we establish supplier audit plans with reference to relevant policies and
Management Policy, the Information Security Education and Training Policy, the Password Management Policy and
                                                                                                                           documents, and continuously monitor suppliers' performance through on-site evaluation, supplier self-evaluation and
other regulations, in order to enhance employees' cybersecurity awareness and ability to protect information.
                                                                                                                           second-party evaluation.
The Company continue to improve information security management and operation systems to avoid the negative
impact of cybersecurity incidents on the Company's operations and customer privacy protection. The Company has an          We also communicate well with our suppliers, sharing our sustainable development concept and listening patiently to
Information Security Working Team, which is headed by the General Manager, who is also the ultimate responsible            their demands. This year, we communicated with our suppliers on the integrity and bidding requirements, and
person for information security. The Team consists of cybersecurity experts, application security experts, data security   common procurement issues by organizing supplier assistance, industry exhibitions, in-person meetings and
experts, and compliance and legal experts to manage information security-related matters separately. In the event of a     exchange seminars, etc., to help both sides maintain close and friendly long-term cooperation. By the end of 2023, the
network security incident, the Company strictly follows the Incident Response Emergency Plan to take action, shuts         Company had successfully organized 3 symposiums, inviting 35 suppliers to discuss cooperation and development
down the failed line or server, remove the viruses and vulnerabilities from the attacked equipment, and makes every        issues, with about 70 participants.
effort to ensure the security of the Company's information system and important data. At the same time, the Company
uses firewalls, IPS, IDS and other facilities to make information more secure, and sets up strict access permissions,
which are managed by the Information Centre. We have established a complete data backup system through the cloud
platform to strengthen data backup capabilities. In addition, the Company regularly conducts information security and
                                                                                                                                                   The Company successfully organized
                                                                                                                                                   discuss cooperation and development issues, with about 70 participants.
data security training among all employees of the Information Centre to improve employees' cybersecurity awareness
and risk prevention and mitigation capabilities. This year's training included phishing websites, email identification,
and password security protection.
Building a Sustainable Value Chain                                                                                         Sustainable value chain collaboration
The Company is committed to establishing good communication channels and close partnership and building a                  Innovation New Material actively engages with professional third parties and downstream customers in collaborative
smooth cooperation model to promote the common development of the value chain by formulating management                    sustainable development projects to achieve synergies in sustainable development with our customers and other
standards, carrying out business cooperation and exchanges, and promoting sustainable development projects. In this        parties across the whole value chain. During the year, the Company developed a digital carbon emission calculation
regard, the Company has formulated management policies such as the Procurement Process Control Procedures, the             tool with a third-party professional organization to accurately calculate and monitor the carbon footprint of products
Supplier Control Procedures, the Supplier Evaluation Management Control Procedures and the Qualified Supplier              and further meet the requirements of downstream customers. At the same time, as a supplier to many industry leaders,
Evaluation Standards to clarify supplier management requirements and standardize the supply chain management               the Company receives social responsibility audits from downstream customers every year, covering environmental
process.                                                                                                                   protection, resource management, human rights, etc., and strives to become a responsible supplier.
                                                                               About          Sustainable   Pursuing Green   Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report   Innovation     Development   Cycle to         Innovation and   Management to             Join Hands to
                                                                               New Material   Management    Promote Green    Product-led      Promote Responsibility-   Forge Development
                                                                                                            Development      Development      Driven Development        Together
Unite Efforts and
Join Hands to
Forge
Development
Together
Adhering to the principle of ''Integrity and Talent, Person-to-post
Matching'', Innovation New Material protects the legitimate rights
and interests of employees, empowers employees' growth in an
all-round way and shape the corporate culture of ''joint
construction, joint creation, shared prosperity, shared benefits''.
These efforts enable us to create a happy workplace and achieve
win-win results with employees. In addition, we shoulder our
social responsibilities and participate in public welfare activities
such as charitable donations, social care and environmental
protection. We also encourage employees to take part in volunteer
activities to build an image of a responsible enterprise.
This chapter responds to the UN SDGs
                                                                                                                              About            Sustainable       Pursuing Green     Green-driven        Practicing Sound          Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                                  Innovation       Development       Cycle to           Innovation and      Management to             Join Hands to
                                                                                                                              New Material     Management        Promote Green      Product-led         Promote Responsibility-   Forge Development
                                                                                                                                                                 Development        Development         Driven Development        Together
Empowering Employees' Growth
                                                                                                                                   Remuneration and benefits
                                                                                                                                  In order to better serve employees, we practice equal pay for equal work, and advocates for a performance-
                                                                                                                                  based salary incentive policy with various bonuses and allowances. This fair pay system can stimulate the
                                                                                                                                  enthusiasm and creativity of employees. We continue to improve the employee benefits based on the
                                                                                                                                  national statutory standards to make our compensation system more competitive.
The Company effectively protects the legitimate rights and interests of employees by providing a fair, just and open
working atmosphere as well as an inclusive and diversified workplace, and locally competitive remuneration packages.
To enhance employees' sense of belonging, we do our best to ensure that they ''work well, eat well, live well, learn well
and grow well''. We care for our employees in all aspects of work and life, creating a healthy, safe, beautiful and happy
working environment.                                                                                                                                                                                          Commercial insurance, holiday gifts,
                                                                                                                                                 Insurance and Housing Fund,                                  private car allowance, free working
                                                                                                                                                 marriage leave, maternity leave,                             meals and accommodations, shuttle
                                                                                                                                Statutory        et cetera.                                  Additional       buses, health check-ups, team
                                                                                                                                 benefits                                                     benefits        building fund, association, etc.
Safeguarding employees' rights and interests
                                                                                                                                   Diversity promotion
                                                                                                                                  The Company values the diversity of employees in terms of age, gender, and background, and has built a
                                                                                                                                  senior management team consisting of promising young talents, experienced middle-aged talents,
Strictly abiding by the International Labor Standard, the Labor Law of the People's Republic of China and other                   professional managers who master management, and senior technologists who are experts in R&D. The
standards, laws and regulations at home and abroad, the Company has formulated the Employee Handbook, the                         workforce is a combination of innovation, experience and wisdom that can improve the operation efficiency.
Corporate Culture Handbook and other rules and regulations which clarify the code of conduct for employees,                       The Company cares for female employees, supporting their career development and providing support roles
emphasizing the management principle of ''policies and procedures go first''. We respect our employees' social                    based on the principle of equal pay for equal work. In addition, the Company has formulated a
backgrounds, nationalities, physical conditions, gender orientations, religious beliefs, etc., and treat all of our               comprehensive and flexible leave policy that provides statutory maternity leave and breastfeeding leave for
employees equally in terms of compensation, recruitment, promotion, and training. By the end of 2023, some                        female employees and their families, and protects employee benefits during special periods.
subsidiaries were certified to the SA8000:2014 Social Accountability International standard.
We strictly enforce standard working hours and arrange holidays for our employees based on statutory holidays and                  Employee communication channels
business conditions. We also pay social security and housing contributions for our employees in accordance with the
relevant standards, and purchase additional commercial insurance to provide our employees with comprehensive                      The Company smooths communication channels for employees and convenes staff congresses regularly to
occupational and social security.                                                                                                 communicate with employee representatives about policies, guidelines, corporate culture, rules and
                                                                                                                                  regulations. To continuously collect opinions and suggestions of employees and fully listen to their voices,
In addition, we fully respect and protect employees' freedom of association, their right to collective bargaining, beliefs,       the Company has set up staff suggestion boxes in the canteen, the staff activity center and production
freedom to form and join labor unions and right to peaceful assembly, based on the labor Union Management Policy                  workshop, as well as a direct telephone line where employees can communicate with the President. In
and other rules.                                                                                                                  addition, the Company conducts an employee satisfaction survey every year, in which employees write down
                                                                                                                                  their opinions and suggestions on the questionnaires. The Enterprise Management Department summarizes
                                                                                                                                  and analyses the questionnaire and submits it to the management. After discussion, the management
     Recruitment and dismissal                                                                                                    determines the improvement, preventive and corrective measures, and the counterparts ensure that the
     The Company has formulated the Recruitment Management Policy, the Separation of Employment Policy                            relevant improvements are put into effect. In 2023, the employee satisfaction survey covered 92% of
                                                                                                                                  employees, and 90% of the surveyed employees were satisfied with the Company.
     and other documents that clarify the process and implementation standards for managing the entry and exit
     of employees. We require recruiters to work in strict accordance with the Recruitment Management Policy.
     We have set up monitoring and reporting mailboxes and a telephone line to accept the monitoring of
     candidates and the community. Employee separation is handled in strict accordance with the relevant
     systems and processes to protect the rights and interests of employees.                                                                      In 2023, the employee satisfaction survey covered
                                                                                                                                                     About             Sustainable           Pursuing Green      Green-driven           Practicing Sound                Unite Efforts and
Innovation New Material           2023 Environmental, Social and Governance Report                                                                   Innovation        Development           Cycle to            Innovation and         Management to                   Join Hands to
                                                                                                                                                     New Material      Management            Promote Green       Product-led            Promote Responsibility-         Forge Development
                                                                                                                                                                                             Development         Development            Driven Development              Together
                                                                                                                                                          Improving the employee training system
             Case      Democratic appraisal for all to promote the participation of all employees in management                                          The Company fosters a love of learning among all employees, and is committed to building the Company
                                                                                                                                                         into a more dynamic and innovative learning organization, providing employees with more opportunities for
      In order to improve the ''everyone advises'' mechanism and promote employee participation in corporate                                             growth and development. We have formulated the Training Management Policy and offer employees
      development, we have conducted a democratic appraisal among all employees, inviting them to evaluate                                               learning resources and platforms. In this way, employees are encouraged to improve themselves and adapt
      the cadres on duty in an anonymous way, and to express their opinions and suggestions on the Company's                                             themselves to the need of the Company's globalization strategy.
      management, safe production, technological innovation, etc. Employees' suggestions were summarized and                                             In order to involve all employee into the training program, we have carried out systematic training programs
      analyzed by the relevant department, and then submitted to the President for review and determination of                                           for employees in different positions and grades, including:
      rectification plans. In 2023, we made adjustments based on employees' suggestions, including increasing
      the frequency of shuttle buses, improving the standard of employees' meals, and improving accommodation,                                                 For middle and senior                                                                 For technical
                                                                                                                                                                                                        For new employees
      and building high-standard employee activity center These efforts were widely praised by employees and                                                       management                                                                    management personnel
      motivated them to become more involved in the Company's development decisions.
                                                                                                                                                            We adopt a ''input and                   We hold seminars,                         We carry out the ''team
                                                                                                                                                            output'' training method.                symposiums and team                       leader training'' and ''furnace
Prioritising employee development
                                                                                                                                                            They are required to                     building activities to listen to          program'' training session for
                                                                                                                                                            participate in the                       their voices. We continue to              reserve talents, and cultivate
                                                                                                                                                            ''condensed EMBA'' training,             update the training PPT and               reserve talents in the
                                                                                                                                                            and transfer the learning                enrich the training courses so            production management
The Company ensures that employees ''learn well'' and ''grow well''. Adhering to the principle of ''learn to use and use                                    results to the whole staff. In           that new employees have an                system through the
what has been learned'', we are committed to providing employees with a smooth promotion path and a sound                                                   this way, we try to promote              in-depth understanding of                 ''independent evaluation of
                                                                                                                                                            consistency between the                  the Company. We also adopt                skilled talents'' platform.
training system to improve their work skills and professionalism, stimulate their potential, and lay a solid foundation
                                                                                                                                                            thinking of the management               an ''instructor'' approach to
for the long-term development of the Company and employees.
                                                                                                                                                            and that of the working level.           help them integrate into the
                                                                                                                                                                                                     Company more quickly after
      Smooth employee development paths                                                                                                                                                              joining.
      The Company is committed to building a fair, just and transparent promotion system. In order to ensure the
                                                                                                                                                         To improve the training efficiency and enrich the content, the Company has built online training platforms
      fairness of the promotion process, we have introduced an all-employee democratic assessment mechanism,
                                                                                                                                                         such as the ''Magic School'' and ''Dechuang Business School'' to continuously explore training resources and
      which combines multiple factors to make a comprehensive assessment of the employee's performance,
                                                                                                                                                         methods and improve employees' satisfaction. Moreover, in order to motivate our employees to learn, we
      including job requirements, performance, and departmental evaluations. In addition, we fully investigate the
                                                                                                                                                         have set up the Academic Upgrading Incentive Policy, which standardizes study subsidies, including
      employees to be promoted and have established a promotion publicity system to publicize promotion
                                                                                                                                                         subsidies for titles, certificates of certified safety engineers, and other skills of other corresponding
      information as well as the handling of objections within the Company to ensure that the promotion process
                                                                                                                                                         occupational grades.
      is fair and transparent.
      The Company continues to improve diversified paths, including the four channels under the ''dual
      sequences''3, internal recruitment and independent evaluation platform for skilled personnel, in order to
      achieve person-to-post matching. To boost employee development, the Company has established an
      internal recruitment method where internal recruitment information is regularly released and employees are                                               Case     A symposium on innovative reserve talents to strengthen talent team development
      encouraged to apply for positions, thus providing employees with more development opportunities. The
      Company has obtained Shandong Enterprise Skills Self-evaluation Qualification, which provides more
      opportunities for skilled personnel to learn, evaluate and develop. By the end of 2023, more than 300 skilled                                       This year, Innovation Sheet Material organized a
      personnel had passed through independent evaluation, further promoting internal development.                                                        symposium for reserve talents to help them fully
                                                                                                                                                          understand the training requirements, adapt to the
                                                                                                                                                          new working environment as soon as possible and
                                                                                                                                                          develop a high-quality talent pool. At the
                                By the end of 2023, more than           300
                                                                        skilled personnel have passed through
                                                                                                                                                          symposium, the General Manager emphasized the
                                                                                                                                                          requirements for the reserve talents in terms of
                                independent evaluation, further promoting internal development.                                                           working conditions, mind expansion, working
                                                                                                                                                          habits, etc. The leaders of each department clarified
                                                                                                                                                          the training objectives and habits for the reserve
                                                                                                                                                          talents in their departments and encouraged them
                                                                                                                                                          to develop with a positive and peaceful mindset,
  ''Four channels'' under the ''Dual sequences'': ''Dual sequences'' refer to functional sequence and production sequence. The functional sequence                                                                                      Symposium for reserve talents
includes professional channel and management channel while the production sequence includes skill channel and management channel.
                                                                                                                                                          demonstrating the Company's focus on talent.
                                                                                                                          About             Sustainable        Pursuing Green      Green-driven       Practicing Sound          Unite Efforts and
Innovation New Material      2023 Environmental, Social and Governance Report                                             Innovation        Development        Cycle to            Innovation and     Management to             Join Hands to
                                                                                                                          New Material      Management         Promote Green       Product-led        Promote Responsibility-   Forge Development
                                                                                                                                                               Development         Development        Driven Development        Together
                                                                                                                                             A training course on ''Lean Management Enhancement'' to strengthen management's
          Case      The ''Furnace Program'' reserve talent training session                                                          Case
                                                                                                                                             knowledge and skills
     This year, Innovation Metal successfully held the second training session of the ''Furnace Program'' for                  This year, Innovation Precision successfully held the third ''Lean Management Enhancement'' training, with a
     reserve talents and selected 41 trainees through competitive examination and departmental                                 total of 66 participants. The training included the Quality Management - Six Sigma System, Lean Production
     recommendation. This training session is based on the vision of ''building passionate team, creating core                 Management Practice, Four Steps to Project Management and Lean Production Technique, which conveyed
     value'' and includes a curriculum designed to help trainees pursue ''exercise, practice, breakthrough,                    the basic knowledge and skills of lean management to the participants in the form of work-based lectures.
     innovation, value'' with the core objective of ''lower costs, higher efficiency, and more benefits''. The training        This course provided knowledge and technical support for systematic lean management, and laid a solid
     program aims to enable employees to benefit from what they learn, and to build a solid talent base for the                foundation for lean management.
     Company's scientific and technological innovation.
                 Opening ceremony of the second training session of the ''Furnace Programme'' for reserve talents                                         ''Lean Management Enhancement'' training completion ceremony
                                                                                                                      About             Sustainable       Pursuing Green     Green-driven        Practicing Sound          Unite Efforts and
Innovation New Material    2023 Environmental, Social and Governance Report                                           Innovation        Development       Cycle to           Innovation and      Management to             Join Hands to
                                                                                                                      New Material      Management        Promote Green      Product-led         Promote Responsibility-   Forge Development
                                                                                                                                                          Development        Development         Driven Development        Together
Caring for employees                                                                                                  Play well
                                                                                                                      We provide employees with high-standard apartments as well as well-equipped recreational facilities, including
The Company always adheres to the principle of ''people-oriented'' and places great importance on the well-being of
                                                                                                                      gymnasiums, indoor basketball courts, badminton courts, billiard court, Table tennis court, audio-visual room,
employees. To this end, the Company ensures that employees ''work well, eat well, play well'', creating a better
                                                                                                                      reading room, yoga room, laundry room, etc., of which the gym is equipped with multifunctional treadmill, elliptical
working and living environment for employees.
                                                                                                                      machine, mountaineering machine, waist and back multi-functional abdominal muscle trainer, shoulder press
                                                                                                                      bench, barbell bench and other equipment, letting employees fully enjoy leisure times besides work.
Work well
We create a garden-style factory and office environment for employees and provide them with a favorable working
environment.
                                                 Garden-style factory
Eat well
We provide employees with high-standard and free working meals, so that they can eat well.
                                              Daily meals for employees                                                                                               Employee Activity Center
                                                                                                                          About             Sustainable         Pursuing Green        Green-driven         Practicing Sound             Unite Efforts and
Innovation New Material    2023 Environmental, Social and Governance Report                                               Innovation        Development         Cycle to              Innovation and       Management to                Join Hands to
                                                                                                                          New Material      Management          Promote Green         Product-led          Promote Responsibility-      Forge Development
                                                                                                                                                                Development           Development          Driven Development           Together
                                                                                                                                     Case    Enrolment celebration activities for employee's children to show humanistic care
We provide high-standard apartments to employees. At present, the Company has a total of 2,598 dormitories in
various parks. To continuously improve employee living conditions and meet the accommodation needs of new                      In 2023, a total of 108 employees and their children visited the high-strength and high-toughness aluminum
employees, the Company has built and put into use 344 dormitories this year.                                                   alloy rod production workshop in Innovation Metal, the No. 1 and No. 2 aluminum extrusion workshops in
                                                                                                                               Innovation Precision, and the cold rolling production workshop and product display zone in Innovation
                                                                                                                               Sheet Material. During the activity, representatives of employees' children delivered rousing speeches,
                                                                                                                               sharing their learning experiences, expressing their gratitude to their parents and wishing the Company a
                       At present, the Company has a total of
                       The Company has built and put into use 344 dormitories this year.
                                                                                                                               prosperous future. This activity has further strengthened the cohesion and centripetal force of the Company,
                                                                                                                               stimulated the staff's sense of identity and belongingness, and delivered the Company's humanistic care for
                                                                                                                               employees.
                                                                                                                                                               Enrolment celebration activity for employees' children
                                                                                                                                             Holding campaigns of ''Health Education on Traditional Chinese Medicine for the
                                                                                                                                     Case
                                                                                                                                             International Women's Day'' to advocate right idea on health
                                                 Employee Apartments
                                                                                                                               In March 2023, the Company joined hand with Zouping Hospital of Traditional Chinese Medicine to hold two
The Company attaches great importance to employees' workplace happiness and sense of belonging, and organizes a                campaigns of ''Health Education on Traditional Chinese Medicine for the International Women's Day'',
variety of cultural and sports activities, so that employees work in innovation, happiness in innovation. In 2023, we          involving more than 140 female employee participants. Doctors from the hospital educated female
have carefully organized more than 50 various types of employee activities, more than 40 employee skills competitions,         employees on the prevention and treatment of common female diseases and shared daily self-care
including the annual summary of the General Assembly, the Company's annual meeting, the 8th of March Women's                   programs to promote a healthy life for them. In addition, doctors interpreted in detail the commands and
Day activities, the May Day Workers' Sports Day, Mid-autumn Festival activities, Thanksgiving Day activities, Christmas        movements of the ''Baduanjin Qigong'' to help employees cultivate good living habits to achieve physical
activities, New Year's Day Tea Party, reward activities for employees' children's advancement to higher education,             and mental health and family harmony.
seminars for graduates, knowledge competition activities, etc., aiming at enriching the life of employees, promoting
the friendship of colleagues, conveying the Company culture, and further enhancing the sense of identity and
reputation of employees to the Company. This year, we also rewarded a total of 98 vehicles for the Company's loyal
team role models, recognizing their consistent hard works.
                  In 2023, we have carefully organized more than       50 various types of employee activities
                  More than 40 employee skills competitions
                  We also rewarded a total of 98 vehicles for the Company's loyal team role models
                                                                                                                                         Campaigns of ''health education on traditional Chinese medicine for the International Women's Day''
                                                                                                                            About              Sustainable      Pursuing Green     Green-driven       Practicing Sound              Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                                Innovation         Development      Cycle to           Innovation and     Management to                 Join Hands to
                                                                                                                            New Material       Management       Promote Green      Product-led        Promote Responsibility-       Forge Development
                                                                                                                                                                Development        Development        Driven Development            Together
Protecting Work Safety                                                                                                             Safety Committee
                                                                                                                                                                         Safety and Environmental
                                                                                                                                                                          Supervision Department
                                                                                                                                                                                                                         Each subsidiary
                                                                                                                              The head of the safety                 The Department of Safety and                 Be fully responsible for its
                                                                                                                              committee holds quarterly              Environmental Supervision acts as            own safety work, carries out
Attaching great importance to production safety and employee health, the Company adheres to the health and safety             meetings to summarize,                 the office of the Safety Committee,          the main safe production
                                                                                                                              deploy and coordinate the              plays the role of unified deployment         activities, accepts the Group's
management policy of ''safety first, prevention at the core, comprehensive management, continuous improvement,
                                                                                                                              promotion of safety                    of safety management,                        supervision on safety
people centricity, and safe development''. We adhere to the safety management concept of ''all risks can be controlled
                                                                                                                              management, formulates                 coordination of services, training           management, and undertakes
and all accidents can be prevented'', and continuously optimize the safety risk identification and control process.           annual work safety objectives          and guidance, and comprehensive              the safety management tasks
Besides, we implement the work safety responsibility system, improve the work safety protection and management                and plans, to promote safety           supervision, and performs the                assigned by the headquarter.
capacity, and strengthen the monitoring of occupational health, to provide employees with a safe and healthy working          management in each                     function of safety services. The
environment. By the end of 2023, the Company's head office and 9 subsidiaries had completed the acceptance of                 subsidiary;                            Department also continuously
safety standardization (level III) and actively submitted the application for acceptance of safety standardization (Level                                            improves the work safety system
II) to the respective provincial departments of emergency management. Due to the existing reconstruction and                                                         and optimizes the workflow
expansion projects, the respective emergency management departments did not arrange acceptance for the rest                                                          according to the actual production
subsidiaries. However, the safety standardization system had been established, improved and effectively operated in                                                  needs;
such subsidiaries. At present, 9 of the Company's subsidiaries have obtained ISO 45001 occupational health and safety
management system certification.
                          By the end of 2023, the Company's headquarter and    9 subsidiaries had completed the
                          acceptance of safety standardization (level III).
                                               the Company have achieved    ISO 45001 Occupational
                          Health and Safety Management System certification.
                                                                                                                            ''Double-wheel driving'' structure of production
The Company continues to improve its safety management rules and regulations and has formulated a series of
policies with respect to work safety responsibility, risk assessment and control management, special operation
                                                                                                                            management for all employees
personnel management, operation safety management, occupational health management, work safety assessment
                                                                                                                            The Company builds a ''double-wheel driving'' system for safety management, with the unified management of the
management, emergency management, and safety performance evaluation management. In order to effectively
                                                                                                                            Group and managers of subsidiaries as the active wheel, and the hierarchical management of subsidiaries and the 12
implement health and safety management, the Company has established a top-down management model with unified
                                                                                                                            elements of safety management as the passive wheel. Under the joint effect of the work safety responsibility system for
leadership and formulation of work safety objectives and plans by the Safety Committee, unified supervision and
                                                                                                                            all employees and the performance evaluation, the Company creates a progressive production safety management
management by the Safety and Environmental Supervision Department, and independent management by each
                                                                                                                            mode to effectively conduct work safety management measures.
subsidiary.
In addition, the Company emphasizes the core concept of ''whoever manages production must manage safety'' and
''whoever manages safety must understand safety'', and continuously strengthens the construction of the safety                                                                             Team
management team. The Company implements the title subsidy system for Certified Safety Engineers (CSE) and                                    Centralised
provides subsidies for examination and training costs to encourage full-time safety management personnel to take the                        management
                                                                                                                                            by the Group
CSE examination. In recent years, a total of 57 safety management personnel and production management cadres
have participated in CSE studies, trainings and examinations, and more than 40 employees are certified safety
                                                                                                                                                                                           Five                                 12 elements
engineers.                                                                                                                                 Two''One''                                    levels of                               of safety
                                                                                                                                                                                          control                               management
                                                                                                                                            Management
                                                                                                                                           Management by
                                                                                                                                           Branch leaders
                                                                                                                                      The driving wheel                             The driven wheel 1                          The driven wheel 2
                                                                                                                            About                  Sustainable            Pursuing Green          Green-driven            Practicing Sound                  Unite Efforts and
Innovation New Material      2023 Environmental, Social and Governance Report                                               Innovation             Development            Cycle to                Innovation and          Management to                     Join Hands to
                                                                                                                            New Material           Management             Promote Green           Product-led             Promote Responsibility-           Forge Development
                                                                                                                                                                          Development             Development             Driven Development                Together
                                                                                                                            Controlling safety risks
To efficiently implement the work safety responsibility system for all employees, the Company adheres to the positive
incentive concept of ''reward first, penalty second'', and has established a safety performance assessment system and
formulated the Measures for Safety Performance Assessment to clarify the requirements on safety responsibility, zero
tolerance of accidents, and the target reward and punishment mode, so as to drive all employees to fulfil their duties in
work safety independently. The Company organizes quarterly comprehensive inspections for safety management                  The Company continuously improves the identification, assessment, management and monitoring of occupational
personnel and technicians of each subsidiary and implements daily management safety performance appraisal. Based            health and safety risks. We have formulated the Graded Risk Management and Control List to manage the safety risks
on indicators such as work injuries, performance of safety responsibilities, training, controlled sources of danger, and    hierarchically based on the industry practices on accidents and the hazards identified. For different risk sources, we
                                                                                                                            have formulated the Records of Identification, Evaluation and Analysis on Risks, which clarifies the engineering and
rectification for hazards, the Company evaluates on-site safety management, performance of safety responsibilities,
                                                                                                                            technical measures, management measures, training and education measures, individual protection measures and
and achievement of goals. Based on the year-end comprehensive assessment, the Company rewards middle and                    emergency response measures for preventing each risk, to ensure the rationality and operability of the control
senior management (including general managers of subsidiaries) and grass-roots cadres in accordance with the rules          measures. In addition, to continuously enhance its risk identification and management capabilities, the Company
and regulations.                                                                                                            establishes a pool of internal safety experts, and carries out monthly inspections, regular comprehensive inspections
                                                                                                                            and special safety inspections. At the same time, the Company employs qualified external units to carry out
                                                                                                                            inspections every six months to comprehensively identify safety risks.
Key Performance Indicators for Health and Safety
                                                                                                                            For the subsidiaries, we emphasize that all levels attach great importance to the investigation and management of
                                                                                                                            health and safety hazards. And we require our subsidiaries to organize safety inspection once every month, under the
                                                                                                                            leadership of the main managers and the engagement of the heads of workshops. Workshops are required to organize
                                                                                                                            safety inspection once every month, under the leadership of the workshop directors and the engagement of the team
                             Evaluation indicators                                                     Control objectives   leaders. By the end of 2023, the Company had achieved 100% rectification for hazards, with over 95% of hazards
                                                                                                                            rectified in first re-inspection. If an accident occurs, the Company requires all subsidiaries to seriously implement the
                             Qualified rate of compliance with the work safety responsibility system   100%                 principle of ''No Forgiveness''4. While investigating accidents and tracing work safety loopholes, we strive to further
                                                                                                                            promote safety training, preventive measures, and hazard detection and rectification, to resolutely avoid any ''gap'' in
                             Pass rate of safety education and training                                100%
                                                                                                                            responsibility or any ''blind spot'' in management. This year, the Company had no work fatalities or serious injuries.
                                                                                                                            In response to potential safety emergencies, the Company has established comprehensive emergency rescue,
                             Percentage of special operation personnel licensed to work                100%                 mitigation and remediation measures and requires each subsidiary to formulate an Emergency Plan for Work Safety
                                                                                                                            Accidents based on their actual situation, and to set up emergency facilities, prepare emergency equipment and
                             Rate of controlled sources of danger                                      100%                 reserve emergency materials at the site.
     Safety responsibility
            system
                             Pass rate of one-time review of hazards (including deferred
                             rectification)
                                                                                                                                                   The Company had achieved
                             Completeness rate of complete devices, safety signs and emergency
                             facilities
                             Completion rate of emergency drills                                       100%
                                                                                                                            Intelligent safety management
                             Work-related fatalities                                                   0
                             Occupational disease rate                                                 0
     Management of work
          injuries
                             Serious accidents                                                         0                    Adhering to the principle of ''replacing labor with mechanization, reducing labor with automation, and realizing
                                                                                                                            unmanned operation with intelligence'', the Company continuously carries out technological transformation and
                             Minor injury rate per one thousand people                                 10%                  equipment upgrading. to promote intelligent and automatic equipment in part of the production process, so as to
                                                                                                                            ensure the safety by mitigating work safety risk through labor intensity reduction.
                                                                                                                            This year, the Company vigorously promoted the construction of the intelligent monitoring information platform,
                                                                                                                            integrating the safety detection alarm data and linkage data into the safety management platform to realize the daily
                                                                                                                            centralized control and management of health and safety. At the same time, we have implemented intelligent
                                                                                                                            surveillance violation detection and early warning, and used intelligent analysis technology to analyze and determine
                                                                                                                            behavioral violations in the surveillance area. We have set up electronic fences to detect violations such as off-duty,
                                                                                                                            overcrowding and lack of labor protection in real time. If relevant behaviors occur, the system will immediately send
                                                                                                                            out on-site alarms to stop and correct the violations.
                                                                                                                             Namely, no forgiveness for the following situations: the cause of the accident has not been investigated; no preventive measures have been taken; the
                                                                                                                            person responsible for the accident has not been punished; and lessons have not been learned from the accident.
                                                                                                                                About             Sustainable        Pursuing Green     Green-driven         Practicing Sound           Unite Efforts and
Innovation New Material      2023 Environmental, Social and Governance Report                                                   Innovation        Development        Cycle to           Innovation and       Management to              Join Hands to
                                                                                                                                New Material      Management         Promote Green      Product-led          Promote Responsibility-    Forge Development
                                                                                                                                                                     Development        Development          Driven Development         Together
Improving safety awareness                                                                                                                 Case    Organizing emergency management training to enhance safety awareness of employees
The Company attaches great importance to the cultivation of employees' health and safety awareness, and regularly
                                                                                                                                     This year, Innovation Sheet Material organized offline training on emergency management for 1,300 workers
carries out a variety of occupational health and safety training for employees. We have formulated the Safety Education
                                                                                                                                     in production line and those in charge of work safety. The training includes the general knowledge of
and Retraining Program for Practitioners, which includes monthly training for all employees, team activities, ''three-
                                                                                                                                     emergency, emergency plans (emergency response duties, emergency response procedures and measures,
level'' safety education for new employees, as well as competence training for personnel in different positions. The
                                                                                                                                     etc.), self-rescue and mutual rescue and escape techniques. It also includes the correct use of protective
Company requires subsidiaries to conduct monthly meetings on safety to share and learn the knowledge of safety
                                                                                                                                     facilities such as air respirators, fire extinguishers and safety belts, as well as analyses of typical accident
management. As required by the Company, for companies involved in molten metal production, the total duration of
                                                                                                                                     cases.
training for all employees shall be no less than 20 hours per year; for companies in non-high-risk industries, the total
duration of training for all employees shall be no less than 8 hours per year. During 2023, the Company's employee
safety training participation rate was 100%.
                                         During 2023, the Company's employee safety
                                         training participation rate was     100%.
          Innovation new material's highlight health and safety training courses
         Professional Technical                   Training for Front-line                    Training for New
            Safety Training                            Employees                                Employees
       To enhance the                          The Company requires                     The Company requires all
       professional competence of              team leaders of each shift               new employees to receive
       business personnel, the                 to carry out safety                      systematic and
       Company employs                         education activities in the              comprehensive safety
       qualified external training             morning meeting,                         management education
       agencies to provide training            informing about the                      before work. Among these,
       on safety management and                situation of on-site safety              the duration of pre-service
       safety technology review for            production and problems                  training for employees
       full-time safety                        in the previous shift. The               involved in molten metal
       management personnel,                   team leaders are required                operations shall be no less
       production management                   to declare the risk points,              than 72 hours; and the
       cadres and special                      key preventive measures                  duration of pre-service
       operation personnel.                    and emergency response                   training for employees of
                                               measures of the team,                    companies in non-high-risk
                                               check the working status of              industries shall be no less
                                               the participants, and                    than 24 hours. New
                                               conduct random checks on                 employees will be allowed
                                               the key work of safety                   to start work only after
                                               production for the team                  passing a training test.
                                               members.
We require production and operation units to organize comprehensive or special emergency drill at least once every
year, as well as to organize full special drill at least once every three years. We require each production and operation
unit to establish an emergency drill record after the drill and evaluate the drill effect, so as to identify deficiencies and                                                Emergency management training
make continuous improvements.
                                                                                                                           About          Sustainable   Pursuing Green   Green-driven     Practicing Sound          Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                               Innovation     Development   Cycle to         Innovation and   Management to             Join Hands to
                                                                                                                           New Material   Management    Promote Green    Product-led      Promote Responsibility-   Forge Development
                                                                                                                                                        Development      Development      Driven Development        Together
Safeguarding occupational health
With regard to occupational hazards, the Company adheres to the comprehensive principles of prevention, control,
reduction and elimination to prevent occupational diseases. In order to effectively deal with the occupational hazards
of different positions, the Company regularly issues standardized occupational protective equipment to employees
and, through education, urges them to use and keep the equipment correctly. At the same time, the Company has
standardized the management of pre-service, in-service and off-service occupational health check-ups, and
established personal health file for every employee. This year, no one in the Company suffered from occupational
diseases.
          Case     Occupational health management training
     In September 2023, Innovation Sheet Material organized offline occupational health management training
     for all workers in production line and those in charge of work safety. The training comprehensively covers
     the basic knowledge of occupational disease prevention and control regulations, the rights and obligations
     of workers in occupational health protection, the main occupational disease hazards and preventive
     measures for jobs, as well as the use and maintenance of personal labor protective equipment. The purpose
     of the training is to raise employees' awareness of occupational health and to assist them in better
     understanding and fulfilling their responsibilities in occupational health.
                                         Occupational health management training
Third-party safety management
The Company incorporates dispatched labors, third-party employees, external construction parties, and other
externally hired personnel into the unified safety management system. The selection of cooperative constructors
requires verification of their qualifications and personal injury insurance covering the construction personnel, and the
licensing of special operators, to ensure that their employees gain the health and safety protection. The Company
signs safety management agreements with external construction units and jointly formulates plans for dangerous
operations, and requires them to carry out safety notification training and assessment before entering the production
plant. In addition, the Company conducts daily and regular safety inspections for external construction units, and
carries out on-site pre-operation hazard inspections monthly to ensure the safety for third-party construction
personnel.
                                                                                                                          About             Sustainable        Pursuing Green     Green-driven        Practicing Sound              Unite Efforts and
Innovation New Material     2023 Environmental, Social and Governance Report                                              Innovation        Development        Cycle to           Innovation and      Management to                 Join Hands to
                                                                                                                          New Material      Management         Promote Green      Product-led         Promote Responsibility-       Forge Development
                                                                                                                                                               Development        Development         Driven Development            Together
Facilitating Harmonious Social                                                                                            Charitable donations
Development                                                                                                               The Company has always insisted on giving back to the society and actively engaged in charitable donations. Based on
                                                                                                                          our advantages in resources, we have set up ''Lvxingren'', a public welfare organization, to share our achievements
The Company is deeply engaged in public welfare projects, and calls on employees to actively participate in voluntary     with the society.
activities to build an image of responsible corporate citizenship. This year, the Company organized and participated in
various projects covering charitable donation, social care, environmental protection and others, in a bid to fulfil its
social responsibility from all aspects and enhance its brand image and social influence.
                                                                                                                                     Case    ''Lvxingren'' raised fund to help patients overcome difficulties
Social care                                                                                                                    To help employee relatives suffering from cerebral
                                                                                                                               haemorrhage, ''Lvxingren'' issued a fund-raising
                                                                                                                               initiative, which was supported by the Company's
The Company always pays attention to the needs of disadvantaged groups, and delivers social care in various public             cadres and employees with donations. In August 2023,
welfare activities, actively creating a fair and harmonious social atmosphere.                                                 ''Lvxingren'' handed over the raised fund to the
                                                                                                                               beneficiaries, embodying the spirit of solidarity and
                                                                                                                               fraternity.
          Case     Visiting homes for the elderly and warming the hearts of the seniors
                                                                                                                                                                                                       Charitable donation ceremony
     Caring about the seniors, the Company organized
     employees to the homes for the elderly in Gaoxin
     Town, Xidong Town, Jiaoqiao Town and Weiqiao
     Town in Binzhou to visit seniors under centralized
                                                                                                                          Environmental protection
     support and people in exceptional poverty. The
     Company's consolation team went with flour, cooking
     oil and consolation money, and gained in-depth
     understanding of the daily life of the seniors there,
     demonstrating our employees' exemplary role in                                                                       The Company attaches great importance to environmental protection and encourages employees to protect the
     dedicating to the society and helping the seniors.                                                                   environment. We extend the concept of environmental protection to public welfare activities to promote the green and
                                                                   Distribution of consolation money to the seniors
                                                                                                                          sustainable development of the society.
                                                                                                                                     Case    Enhancing environmental protection awareness to jointly build an innovative home
          Case     Holding the ''Trinity of Sponsorship'' to help poor students make dreams come true
                                                                                                                               In November 2023, ''Lvxingren'' carried out activities
     Adhering to the concept of ''no poor student dropping
                                                                                                                               themed on ''Enhancing environmental protection
     out of school'', the Company actively carries out the
                                                                                                                               awareness to jointly build an innovative home''. A total
     ''Trinity of Sponsorship'' activity to provide more
                                                                                                                               of 81 employees participated in the activities. They
     opportunities for good-performance students from
                                                                                                                               picked up rubbish at designated places and cleaned
     disadvantaged families in poverty-stricken areas to
                                                                                                                               up along the roads, contributing to the protection of
     study, so as to promote equality in education and fulfil
                                                                                                                               urban ecology.
     its social responsibility.
                                                                        Ceremony of ''Trinity of Sponsorship''                                                                              Public welfare activities for environmental protection
Innovation New Material              2023 Environmental, Social and Governance Report
Key ESG Performances5
Environmental KPIs
    Key Performance Indicators                                                                        Unit                         2023                     Key Performance Indicators                                                                     Unit                                 2023
    Greenhouse Gas (GHG) Emission                                                                                                                           Water Resource Usage9
    Total GHG emission                                                                   Tons (CO2 equivalent)                  865,967.35                  Total water withdrawal                                                                         Tons                             2,647,465.33
    •   Direct GHG emission (Scope 1)                                                    Tons (CO2 equivalent)                  387,053.55                  Wastewater
    •   Indirect GHG emission (Scope 2)                                                  Tons (CO2 equivalent)                  478,913.80                  Total compliant industrial wastewater discharges                                               Tons                               19,499.00
    GHG Emission Intensity                                                                                                                                                                               Ammonia Nitrogen Discharge
                                                                                                                                                                                                                                                            Kg                                  69.05
                                                                                                                                                            By contents of substances in                 in Wastewater
    •   Aluminum rods                                                                 Tons (CO2 equivalent)/tons                    0.12                    wastewater
                                                                                                                                                                                                         Chemical oxygen demand                             Kg                                1,851.89
    •   Aluminum rods and cables                                                      Tons (CO2 equivalent)/tons                    0.13
                                                                                                                                                            Waste Gas
    •   Aluminum profiles                                                             Tons (CO2 equivalent)/tons                    1.09
                                                                                                                                                            Sulfur oxides (SOx) emission                                                                   Tons                                 20.72
    •   Aluminum sheets and foils                                                     Tons (CO2 equivalent)/tons                    0.52
                                                                                                                                                            Nitrogen oxides (NOx) emission                                                                 Tons                                208.86
                                                                                    Tons (CO2 equivalent) /10,000
        Structural components                                                                                                      10.47
                                                                                               pieces                                                       Particulate matter emission                                                                    Tons                                 43.78
    •
    Energy                                                                                                                                                  Volatile organic compound (VOC) emission                                                       Tons                                  2.01
    Total energy consumption                                                             Tons of standard coal                  272,109.36                  Waste
    Total direct energy consumption6                                                     Tons of standard coal                  203,646.04                  Total hazardous waste generated                                                                Tons                               61,141.56
    •   Gasoline                                                                                      Tons                        190.56                    Total hazardous waste treated                                                                  Tons                               61,676.64
    •   Diesel                                                                                        Tons                        698.16                    Total general industrial solid waste generated                                                 Tons                              637,436.18
    •   Natural gas                                                                           Cubic meters                    166,541,868.00                Total utilization of general industrial solid waste                                            Tons                              562,552.41
    Total indirect energy consumption7                                                                kWh                     576,592,451.99                Secondary Aluminum Recycling11
    •   Solar power                                                                                   kWh                     19,527,164.00                 Total recycling of secondary recycling                                                         Tons                              698,900.00
    •   Purchased electricity8                                                                        kWh                     557,065,287.99
 The coverage of the following KPIs is the same as that of the consolidated statements. In case of any discrepancies between the total number and the
sum of the data and ratios disclosed herein, it is due to rounding.
 Direct energy consumption covers gasoline, diesel and natural gas. The result is calculated in accordance with the General Rules for Calculation of the
Comprehensive Energy Consumption(GB/T2589-2020).
 Indirect energy consumption covers solar power and electricity consumption. The result is calculated in accordance with the General Rules for
Calculation of the Comprehensive Energy Consumption(GB/T2589-2020).                                                                                        10 Hazardous   waste mainly includes aluminum ash, dust removal ash, oil-containing diatomaceous earth, waste oil, waste sludge, and waste rolling oil.
Innovation New Material        2023 Environmental, Social and Governance Report
Social KPIs
 Key Performance Indicators                                                          Unit     2023     Key Performance Indicators                                                       Unit        2023
 Employment                                                                                            Employee Training
 Total employees                                                                     Person   10,724
                                                                                                       Training coverage                                                                  %          100
                                   Male                                              Person   7,361
 By gender                                                                                             Employee training total time                                                     Hours      310,553
                                   Female                                            Person   3,363
                                                                                                                                                Male                                    Hours      207,967
                                   Full-time employees                               Person   10,724   Total training time by gender
 By employment type                                                                                                                             Female                                  Hours      102,586
                                   Part-time employees                               Person     0
                                                                                                                                                Male                                    Hours       38.76
                                   Dispatched workers                                Person    212
 Workers besides employees                                                                             Training time per capita by gender
                                   Dispatched workers from contractors               Person    409                                              Female                                  Hours       37.88
                                   Male management level employees                   Person    198                                              Production personnel                    Hours       49.91
 Management level employees        Female management level employees                 Person    24                                               Sales personnel                         Hours       60.47
 number and proportion by
 gender                            Proportion of male management level employees       %      89.19
                                                                                                                                                R&D personnel                           Hours       69.99
                                   Proportion of female management level employees     %      10.81
                                                                                                       Training time per capita by employment
                                                                                                                                                Finance personnel                       Hours       35.95
                                                                                                       type
                                   Chinese mainland employees                        Person   10,671
 By region                                                                                                                                      Procurement personnel                   Hours       48.48
                                   Overseas Territories employees                    Person    53
                                                                                                                                                Management personnel                    Hours       71.46
 Employee Health and Safety
 Lost work time due to work injuries                                                 Days     5,710                                             Other admin and logistics personnel     Hours       62.11
                                   Employee                                                    53      R&D Investment
 Number of work injury
 incidents
                                   Contractor                                                   0      Total R&D investment                                                           RMB 10,000   51,431.25
 Number of work-related
                                   Number of deaths                                             0      Total employees on R&D positions                                                Person        814
 fatalities
Innovation New Material                2023 Environmental, Social and Governance Report
                                                                                                                             GRI Standards Index
     Key Performance Indicators                                                                               Unit   2023
     Suppliers
     Total suppliers12                                                                                               2,233
                                                                                                                                                                      For the 2023 reporting period, Innovation New Material prepared report
                                                                                                                             Statement of Use
                                            Chinese Mainland                                                         2,221                                            with reference to the GRI Standards.
     By region
                                                                                                                             GRI 1 Used                               GRI 1: Foundation 2021
                                            Overseas Territories                                                      12
                                            Total level 1 suppliers13                                                2,233
                                                                                                                             GRI
                                                                                                                                             Disclosure                                                 Chapter(s) in the Report
                                            Total key level 1 suppliers14                                             91     Standards
                                            Proportion of procurement from key level 1                                       GRI 2 The Organization and Its Reporting Practices
 By level                                                                                                      %     74.02
                                            suppliers
                                            None-level 1 key suppliers                                                0
                                                                                                                                             Entities included in the organization's sustainability
                                            Key suppliers (include level 1 and none-level 1)                          91     2-2                                                                        About the Report
                                                                                                                                             reporting
                                            Suppliers that passed onsite evaluation                                  1,500   2-3             Reporting period, frequency and contact point              About the Report
                                            Number of suppliers assessed to have significant                                 2-4             Restatements of information                                /
                                            actual/potential negative impacts
                                            Percentage of suppliers with significant actual or
     Number of suppliers
                                            potential negative impacts that have taken                         %      0      GRI 2 Activities and Workers
     participating in evaluation and
                                            corrective action or improvement plans
     training
                                                                                                                                                                                                        About Innovation New Material, Building a Sustainable
                                            Number of suppliers with significant                                             2-6             Activities, value chain and other business relationships
                                            actual/potential negative impacts terminated
                                                                                                                                                                                                        Innovation New Materials in Figures
                                            Total number of suppliers supported in corrective                                2-7             Employees
                                            action plan implementation
 By main operating region (Shandong province) of supplier, proportion of total
                                                                                                               %      43
 transaction amount                                                                                                          GRI 2 Governance
 Anti-corruption                                                                                                                                                                                        Sustainable Development Management, Innovation
                                                                                                                                                                                                        New Material 2023 Annual Report
     Number of corruption lawsuits filed and concluded against the Company or its
     employees during the reporting period                                                                                                   Nomination and selection
                                                                                                                                             of the highest governance body
     Number of discrimination or harassment lawsuits filed and concluded against the
     Company or its employees during the reporting period                                                                    2-11            Chair of the highest governance body                       Innovation New Material 2023 Annual Report
     Number of customer privacy data lawsuits filed and concluded against the Company                                                        Role of the highest governance body in overseeing the
     or its employees during the reporting period.                                                                                           management of impacts
     Number of conflict of interest lawsuits filed and disposed of against the Company or                                    2-13            Delegation of responsibility for managing impacts          Innovation New Material 2023 Annual Report
     its employees during the reporting period
                                                                                                                                             Role of the highest governance body in sustainability
     Number of money laundering or insider trading cases filed and concluded against                                         2-14                                                                       Sustainable Development Management
     the Company or its employees during the reporting period
                                                                                                                                             Evaluation of the performance of the highest
Innovation New Material        2023 Environmental, Social and Governance Report
 GRI                                                                                                                            GRI
                  Disclosure                                              Chapter(s) in the Report                                              Disclosure                                                 Chapter(s) in the Report
 Standards                                                                                                                      Standards
                                                                                                                                                Proportion of senior management hired from the local
                                                                                                                                                community
 GRI 2 Strategy, Policies, and Practices                                                                                        203-1           Infrastructure investments and services supported          Facilitating Harmonious Social Development
                                                                          Strengthening Business Ethics Construction,
                                                                          Empowering Employees Growth
                                                                                                                                GRI 205: Anti-Corruption
                                                                                                                                                Communication and training about anti-corruption
 GRI 2 Stakeholder Engagement                                                                                                   205-3           Confirmed incidents of corruption and actions taken        Strengthening Business Ethics Construction
                                                                                                                                GRI 206: Anti-Competitive Behavior
                                                                                                                                                Legal actions for anti-competitive behavior, anti-trust,
 GRI 3 Material Topics                                                                                                                          and monopoly practices
                                                                          Communications with stakeholders, Materiality issue   GRI 207: Tax
                                                                          analysis
                                                                          Communications with stakeholders, Materiality issue   207-1           Approach to tax                                            /
                                                                          analysis
                                                                                                                                                Stakeholder engagement and management of
 GRI 201: Economic Performance                                                                                                  207-3                                                                      /
                                                                                                                                                concerns related to tax
                  Financial implications and other risks and
                  opportunities due to climate change                                                                           GRI 301: Materials
                  Defined benefit plan obligations and other retirement                                                                                                                                    Designing Green and Low-carbon products, Practicing
                  plans                                                                                                                                                                                    Environmental Protection
                                                                                                                                                                                                           Designing Green and Low-carbon products, Practicing
                                                                                                                                                                                                           Environmental Protection
 GRI 202: Market Presence
                  Ratios of standard entry level wage by gender                                                                                                                                            Designing Green and Low-carbon products, Practicing
                  compared to local minimum wage                                                                                                                                                           Environmental Protection
Innovation New Material         2023 Environmental, Social and Governance Report
 GRI                                                                                                                                 GRI
                   Disclosure                                                 Chapter(s) in the Report                                                Disclosure                                                 Chapter(s) in the Report
 Standards                                                                                                                           Standards
 GRI 302: Energy                                                                                                                     GRI 306: Waste
                                                                                                                                                      Waste generation and significant waste-related
                                                                                                                                                      impacts
                   Reductions in energy requirements of products and                                                                 306-4            Waste diverted from disposal                               Key ESG Performances
                   services
 GRI 303: Water and Effluents                                                                                                        306-5            Waste directed to disposal                                 Key ESG Performances
                                                                                                                                                      criteria
                                                                                                                                                      and actions to be taken
                                                                                                                                     GRI 401: Employment
 GRI 304: Biodiversity
                                                                                                                                                      Benefits provided to full-time employees that are not
                   Operational sites owned, leased, managed in, or                                                                   401-2                                                                       Empowering Employees' Growth
                                                                                                                                                      provided to temporary or parttime employees
                   biodiversity value outside protected areas
                                                                                                                                     GRI 402: Labor/Management Relations
                   Significant impacts of activities, products and services
                   on biodiversity                                                                                                                    Minimum notice periods regarding
                                                                                                                                                      operational changes
                                                                                                                                     GRI 403: Occupational Health and Safety
                   IUCN Red List species and national conservation list
                   species with habitats in areas affected by operations
 GRI 305: Emissions
                                                                                                                                                      Hazard identification, risk assessment, and incident
                                                                                                                                                      investigation
                                                                                                                                                      Worker participation, consultation, and
                                                                              Innovation New Materials in Figures, Designing Green   403-5            Worker training on occupational health and safety          Protecting Work Safety
                                                                              and Low-carbon products
                   Nitrogen oxides (NOx), sulfur oxides (SOx), and other                                                                              Prevention and mitigation of occupational health and
                   significant air emissions                                                                                                          safety impacts directly linked by business relationships
Innovation New Material        2023 Environmental, Social and Governance Report
 GRI                                                                                                                            GRI
                 Disclosure                                                Chapter(s) in the Report                                             Disclosure                                               Chapter(s) in the Report
 Standard                                                                                                                       Standard
                 Workers covered by an occupational health and safety                                                           GRI 411: Rights of Indigenous Peoples
                 management system
                                                                                                                                                Incidents of violations involving rights of indigenous
 GRI 404: Training and Education                                                                                                                Operations with local community engagement, impact
                                                                                                                                                assessments, and development programs
                                                                                                                                                Operations with significant actual and potential
                 Programs for upgrading employee skills and transition                                                                          negative impacts on local communities
                 assistance programs
                                                                                                                                GRI 414: Supplier Social Assessment
                 Percentage of employees receiving regular
                 performance and career development reviews                                                                     414-1           New suppliers that were screened using social criteria   Building a Sustainable Value Chain
 GRI 405: Diversity and Equal Opportunities
                                                                                                                                                Negative social impacts in the supply chain and
                                                                                                                                                actions taken
                                                                                                                                GRI 415: Public Policy
                 Ratio of basic salary and remuneration of women to
                 men
 GRI 406: Non-discrimination
                                                                                                                                GRI 416: Customer Health and Safety
                 Incidents of discrimination and corrective actions
                 taken                                                                                                                          Assessment of the health and safety impacts of
                                                                                                                                                product and service categories
 GRI 407: Freedom of Association and Collective Bargaining
                                                                                                                                                Incidents of non-compliance concerning the health
                 Operations and suppliers in which the right to freedom    Empowering Employee Growth, Building a Sustainable                   and safety impacts of products and services
                 of association and collective bargaining may be at risk   Value Chain
                                                                                                                                GRI 417: Marketing and Labeling
 GRI 408: Child labor
                 Operations and suppliers at significant risk for                                                                               labeling
                 incidents of child labor
                                                                                                                                                                                                         No occurrence of such incidents
 GRI 409: Forced or Compulsory Labor                                                                                                            service information and labeling
                 Operations and suppliers at significant risk for          Empowering Employee Growth, Building a Sustainable   417-3           Incidents of non-compliance concerning marketing         No occurrence of such incidents
                 incidents of forced or compulsory labor                   Value Chain                                                          communications
 GRI 410: Security Practices                                                                                                    GRI 418: Customer Privacy
                 Security personnel trained in human rights policies or                                                                         Substantiated complaints concerning breaches of
                 procedures                                                                                                                     customer privacy and losses of customer data
Innovation New Material   2023 Environmental, Social and Governance Report
                                                                                                Innovation New Material
                                                                                                Technology Co., Ltd.
                                                                                                Environmental,
                                                                                                Social and
                                                                                                Governance
                                                                                                Report
       Email: zqb@innovationmetal.com
       Tel: 010-66536198
       Address: No. 1808, Floor 18, Excel Centre, Wudinghou Street, Xicheng District, Beijing

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