Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Email address: zqb@innovationmetal.com
Contact number: 010-66536198
Company address: No. 1808, Floor 18, Excel Centre, Wudinghou Street, Xicheng District, Beijing
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Contents
Circular Development for 19 Empowering Employees, 75
About the Report 01 Sustainable Coexistence Creating Prosperity Together Corporate Governance 105
Exploring New Potential of 21 Promoting Workplace Equality and 77
Secondary Aluminum Diversity
Cultivating Holistic Talent 79
Development
Message from the Key ESG Performances 112
Chairman Inherent Safety
Green and Low-Carbon, 31
Building Our Home Together
GRI Index 117
About Innovation New Open Cooperation for a Win- 95
Win Future
Material Building a Green Aluminum 40
Production Chain Sustainable Supply Chain 97
Management
Building a Low-Carbon Product 47 Issue Index Table of the 125
ESG Highlight
Ecosystem Enhancing Customer Privacy 100 Guidelines No. 14 of
Performance in 2024
Protecting the Harmony of Natural 50 Shanghai Stock Exchange
Ecology Striving to Contribute to Social Well- 102 for Self-Regulation of
Being
Listed Companies—
Sustainability Report
Sustainable Development 13 (Trial)
Management Leading with Technology, 59
Driving Innovation Together
Innovation Led by Technology 61
Empowerment
Precision Control Ensures Quality 69
Ensuring a High-Quality Service 74
Experience
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
About the Report
Introduction Index of Abbreviations for Company Members
The Report is the second Environmental, Social, and Governance (hereinafter ''ESG'') report prepared and issued by Innovation
New Material Technology Co., Ltd. (hereinafter ''Innovation New Material'', ''the Company'' or ''we''). The Report focuses on the Company abbreviation Full name of Company
ESG topics of concern to stakeholders and is intended to disclose the Company's ESG strategies, practices, and performance in
an objective, fair, and transparent manner to facilitate a more comprehensive understanding of Innovation New Material by
Innovation New Material, the Company, we Innovation New Material Technology Co., Ltd.
stakeholders.
Innovation Metal Shandong Innovation Metal Technology Co., Ltd.
Reporting Scope Innovation Precision Shandong Innovation Precision Technology Co., Ltd.
The scope of the Report includes Innovation New Material and its subsidiaries. The statistical scope of the data is indicated
Suzhou Chuangtai Suzhou Chuangtai Alloy Material Co., Ltd.
throughout the Report and data is calculated in accordance with national regulations or international standards. Unless
otherwise stated, the amounts in the Report are denominated in RMB.
Shandong Sheet Materials Shandong Innovation Sheet Materials Co., Ltd.
Reporting Period
Yuanwang Electrical Technology Shandong Yuanwang Electrotechnics Co., Ltd.
The information and data contained in the Report covers the period from 1 January, 2024, to 31 December 31, 2024 Chuanghui New Material Shandong Chuanghui New Material Technology Co., Ltd.
(hereinafter ''2024'' or ''this year''). For the comparability and completeness of the Report, the period has been extended
forward and backward as appropriate.
Chuangfeng New Material Shandong Chuangfeng New Material Technology Co., Ltd.
Innovation Beihai Shandong Innovation Beihai Co., Ltd.
Basis of Preparation
Yunnan Innovation Alloy Yunnan Innovation Alloy Co., Ltd.
The report is prepared in reference to the Global Reporting Initiative Reporting Standards (GRI Standards), Guidelines No. 14 of
Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) by the Shanghai Stock
Exchange, and the United Nations Sustainable Development Goals (UN SDGs). Qingdao Liwang Qingdao Liwang Precision Technology Co., Ltd.
Inner Mongolia New Materials Inner Mongolia Innovation New Materials Co., Ltd.
Feedback on the Report
Inner Mongolia Lightweight Inner Mongolia Innovation Lightweight New Material Co., Ltd.
The 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 would like access
to other relevant information, please contact us through the following channels: Hengwang Cable Shandong Hengwang Cable Co., Ltd.
Email address: zqb@innovationmetal.com
Chuangyuan Renewable Resources Shandong Chuangyuan Renewable Resources Co., Ltd.
Contact number: 010-66536198
Company address: No. 1808, Floor 18, Excel Centre, Wudinghou Street, Xicheng District, Beijing
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
The past year was a year of deepening commitment to the The past year was a year of strengthening corporate
green development era. governance and forging an excellent brand.
Faced with the severe challenges of global climate change, we Sound corporate governance is the cornerstone of the
have remained steadfast in pursuing the path of green Company's steady development. In the complex and ever-
development. We have built a ''five-in-one'' development system
changing market environment, we have adhered to our
that includes green energy, green production, green emissions,
original aspirations, operated in a regulated manner, and
green products, and green recycling. This system integrates the
advanced steadily, continuously creating sustainable value
philosophy of green development into the entire product
lifecycle. This year, our efforts in developing a green aluminum
for society. We have always adhered to the principle of
industrial chain have yielded notable achievements. By integrity in business operations, continuously strengthening
leveraging local characteristics and favorable conditions in internal controls and risk management to ensure the
regions such as Shandong, Inner Mongolia, and Yunnan, we have scientificity and compliance of corporate decision-making.
actively developed hydroelectric, wind, and solar-powered We are committed to safeguarding a fair and competitive
aluminum production while continuously expanding the market order, respecting and protecting intellectual property
recycled aluminum operations. This year, the Company rights, creating long-term value for shareholders and
Message from
comprehensively recycled and utilized 1.2109 million tons of customers, establishing long-term and stable cooperative
recycled aluminum. We have boosted energy conservation and relationships with suppliers, jointly building a sustainable
emission reduction in the production process while increasing
the Chairman
industrial chain ecosystem, and promoting the healthy
the proportion of renewable energy, which significantly reduced development of the industry.
carbon emissions throughout the product lifecycle. By doing so,
we have provided lightweight and low-carbon eco-friendly
aluminum alloy products to numerous industries domestically The past year was a year of fulfilling social responsibilities
and abroad, contributing innovative strength to the sustainable and building a harmonious community.
development of the aluminum industry. In 2024, 20 aluminum
alloy products manufactured by 11 factories have obtained the
Mr. Cui Lixin ISO 14067 Product Carbon Footprint Certification, and 15
factories have passed the ISO 14064 Greenhouse Gas Verification
As a compassionate company, we have always embedded
social responsibilities into our corporate culture, which is not
Chairman of Certification. Innovation Metal has been honored as the only the best way to give back to our employees but also a
Innovation New National-Level Single Champion in the Manufacturing Industry. sincere contribution to society and the driving force behind
Four factories have been awarded the title of ''National-Level our sustainable development. We deeply value the
Material Green Factory''. dedication of every employee and safeguarded their
workplace rights and interests, while enabling their growth
and development, to create a working environment
characterized by happiness and a sense of belonging. This
The past year was a year of accelerating technological
Highlighted in 2024 by the 20th anniversary of the ESG principles promoted by the United Nations Global year, the employee satisfaction rate reached 90%.
innovation and refining quality management.
Furthermore, we actively participated in social welfare
Compact, and the 30th anniversary of the entry into force of the United Nations Framework Convention on
undertakings to give back through various means, such as
Climate Change, we were acutely aware of the dual mission entrusted to enterprises in this era: to serve both as We firmly believe that innovation is the persistent driver of the public welfare aid and charity donations, to spread positive
trailblazers driving industrial transformation, and as proactive practitioners championing sustainable Company's development and that quality is the solid foundation corporate energy and bring warmth and hope to society.
development. Innovation New Material has always firmly believed that ESG principles are the cornerstone for of brand reputation. We have consistently enhanced our
enterprises to achieve sustainable value-creation: environmental benefits serve as the benchmark for corporate innovation capabilities and production efficiency by focusing on As the new grand blueprint unfolds, the drums of challenges
innovation, social responsibility constitutes the foundation for enterprises' enduring development, and the core principles of technological innovation and high-quality urge us forward. In our future development, we will
development. By introducing and cultivating technical talents, unwaveringly promote ESG practices, advance green
governance effectiveness acts as the catalyst to transform the former two aspects into commercial value.
increasing investment in technological innovation, and development, fulfill social responsibilities, and enhance
Adhering to the philosophy of ''Innovation Shapes the Future'', we are committed to taking aluminum as our
enhancing the level of intelligence in the production process, we corporate governance with greater determination and
base material and ensuring that every gram of it becomes a key variable in empowering a green future. have transformed the achievements of technological innovation investment. Throughout this process, we will embrace
into a continuous driving force for promoting sustainable social change with a more open mindset and continue to
development. By the end of 2024, the Company held a total of collaborate with global partners from diverse backgrounds.
demonstrating concentrated achievements in management effectiveness. Throughout the year, we have upheld 537 authorized patents and has been awarded titles such as By aligning our goals and working in unity, we will fully adopt
our commitment to a shared destiny with employees, collaborative growth with customers, mutual ''Model Worker Innovation Studio'' and ''Shandong Province
a mindset and action model characterized by the ''highest
development with partners, and collective progress with society. This dedication has yielded significant Academician Workstation''. We adhere to the principle of
standards, utmost simplicity in execution, fastest speed, and
accomplishments, particularly in key areas such as green development, product manufacturing, technological prioritizing quality and establishing a robust foundation,
remarkable outcomes''. We will stride forward on the journey
advancements, and market expansion. In 2024, Innovation New Material maintained its position as one of the continuously enhancing our quality management system, and
of ''Strive to be an industry leader and build a century-old
strengthening our customer-centric service principles, to ensure
Top 500 Chinese Enterprises for the eighth consecutive year, achieving 330th place in the rankings, and the enterprise'' by implementing talent, product, energy, and
that every product and service meets or exceeds customer
Company was recognized as one of the Top 100 Private Enterprises in Shandong Province for the twelfth year in capital transformations. Our aim is to generate maximum
expectations. By the end of 2024, 11 subsidiaries had obtained
a row, securing 17th place in the province's rankings. the IATF 16949 Automotive Industry Quality Management System value for all shareholders, including customers, employees,
certification, covering 15% of the Company's products. and society at large, while collectively exploring new avenues
for sustainable development.
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
ESG Honors & Awards
About Innovation New Material
Innovation New Material has always practiced sustainable development strategy and is recognized by the government and
institutions in various aspects. In 2024, the Company and its subsidiaries received several honors & awards.
Company Profile
Innovation New Material is a large-scale, modern, and comprehensive enterprise mainly engaged in the production and
operation of aluminum profiles for 3C consumer electronics, aluminum profiles for vehicle lightweighting, aluminum rods and
cables, sheets, stripes and foils, aluminum billets, structural components, etc. The Company is one of the largest aluminum
alloy material production and research and development bases in the world. Among them, the market share of its aluminum
billets has ranked first globally for many consecutive years. The Company focuses on the research, development, production
and processing of aluminum alloys and their products, offering comprehensive solutions for the aluminum alloy processing
industry. Its products are widely used in various fields such as 3C consumer electronics, vehicle lightweighting and new energy.
China Enterprise 500, 330th / Innovation National Manufacturing / Innovation National Green Factory, / Yuanwang
The Company went public through a major asset restructuring on the Shanghai Stock Exchange on December 21, 2022 Metal Industry Champion in an Metal becoming the Company's Electrical
(securities abbreviation: Innovation New Material, securities code: 600361). Innovation New Material has established 14 Individual Field fourth National Green Technology
industrial parks across 4 provinces (autonomous regions) in China, including Shandong, Jiangsu, Inner Mongolia, Yunnan, as Factory
well as overseas locations in Vietnam and Mexico, with 11,458 employees, a comprehensive production capacity of 4.8805
million tons, including 140,400 tons of profiles, 995,600 tons of aluminum rods and cables, 3,279,700 tons of billets, 464,800
tons of sheets, stripes and foils, and 33,648,100 pieces of structural components.
Corporate Objective
Striving for industry leadership and building a century-old enterprise
Certified by the China Nonferrous Metals Fabrication Industry / Innovation
Association, the domestic and global market shares of aluminum wire New Material Top 500 Manufacturing / Innovation
and aluminum alloy round ingots were ranked first in 2024 Enterprises in China, 167th Metal
Business Philosophy Corporate Philosophy
Customer satisfaction is the Innovation Shapes the
key driving force for a wider Future
presence Shandong Province / Innovation
Academician Workstation Metal
Corporate Mission Corporate Ethos
Propelling industry progress through Seek Truth and Be Pragmatic
scientific and technological advancements
Company Culture
Hon Hai - Foxconn / Innovation Science and Technology / Innovation Top 500 Private Enterprises / Innovation
Sustainable Excellent New Material Award in China Nonferrous Metal in China, 147th Metal
Supply Chain Award in 2025 Metals Industry, Second Prize
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Environmental（E） Social（S）
Shandong Provincial Green City-Level Green Manufacturing High-Quality Supplier of Automotive Shandong Province Key City-Level Digital 2024 Special Contribution Award
Factory of the Year 2024 Enterprise in 2024 Low-Carbon New Materials Cultivation Enterprise for Workshop of the Year for ''Pioneering Breakthroughs &
Chuanghui New Material, Chuanghui New Material Suzhou Chuangtai High-End Brands 2024 Pursuit of Excellence''
Shandong Sheet Materials,
Innovation Beihai Innovation Precision, Yuanwang
Shandong Sheet Materials Chuangfeng New Material
Electrical Technology
The title of ''National-level Hon Hai - Foxconn Sustainable
Green Factory'' Excellent Supply Chain Award in 2025
Innovation Metal, Suzhou Chuangtai, Innovation New Material
Innovation Precision, Yuanwang
Electrical Technology Pioneering Enterprise in Talent-Led Enterprise that Respects Teachers
Talent Work Enterprise and Values Education
Yuanwang Electrical
Innovation Precision Yuanwang Electrical Technology
Technology
Outstanding Enterprises in ESG Huazheng ESG
Responsibility and Progress – Comprehensive
Golden Responsibility Award (China) Rating: A
Innovation New Material Innovation New Material
Social（S）
Governance（G）
Information Release Quality Benchmark Design Center Billet Enterprises in 2024 Factory'' in Digital Economy
Yuanwang Electrical Technology,
Innovation Precision Innovation Precision Innovation Precision Suzhou Chuangtai Chuangyuan Renewable
Resources, Hengwang Cable
Ranked 28th in Top 100 Industrial
Provincial Enterprise Technology
Enterprises in Shandong Province 2024
The research outcomes from Shandong Center in 2024
Provincial Key R&D Program (Competitive
High-strength and high-toughness
Innovation Platform Project) have been
incorporated into Shandong Major aluminum alloy round ingots have Shandong Province Innovation Metal Suzhou Chuangtai
Scientific & Technological Innovation been recognized as a national patent- Enterprise for All-Staff
Achievements Collection System intensive product Innovation
Innovation Metal Innovation Metal Innovation Metal
Ranked 22nd in the Top 50 Nonferrous Metal
Enterprises by Operating Revenue in 2024
Innovation Metal
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
ESG Highlight Performance in 2024
Circular Development for Sustainable Coexistence Green and Low-Carbon, Building Our Home Together
• The Company has comprehensively recycled and utilized 1.2109 million tons of secondary aluminum. • 5 subsidiaries have carried out Aluminum Stewardship Initiative (ASI) certification audits, among which Suzhou
Chuangtai successfully passed the ASI certification.
Among this, the Company has recovered 807,900 tons of secondary aluminum and has reused
accounting for
By the end of 2024, the Company has put into operation
•
• In 2024,
processing capacity of
certification.
• The Company has achieved 100% utilization of recycled aluminum with grade retention. The number of factories that have passed the ISO 14001 Environmental Management System certification is 13,
•
• Innovation Precision has achieved accounting for 87%.
computers.
• The number of factories that have passed the ISO 50001 Energy Management System certification is
• The Company has participated in the formulation of
The series of recycled aluminum standards has won the second prize for scientific and technological progress • The number of subsidiaries that have obtained National Green Factory certification is
•
from the China Non-Ferromagnetic Metals Industry Association.
that have obtained Provincial Green Factory certification is
• The effective collection rate of unorganized emissions has reached 99.5%, the purification efficiency of oil
mist and fumes has reached over 95%, and the treatment efficiency of exhaust gases has reached over
Green and Low-Carbon, Building Our Home Together • The emissions concentration of particulate matter, sulfur dioxide, and nitrogen oxides from the Company's
operations in the Binzhou area have all been significantly lower than the national standards. Among them, the
• The Company has purchased a total of 3.5025 million tons of molten aluminum, accounting concentration of particulate matter has been 96% lower than the national standard, the concentration of sulfur
for 90.86% of our total electrolytic aluminum raw inputs. dioxide has been 87% lower than the national standard, and the concentration of nitrogen oxides has been
• This year, the Company's total investment in environmental protection has reached RMB
and no incidents of excessive emissions occurred.
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
ESG Highlight Performance in 2024
Empowering Employees, Creating Prosperity Together Leading with Technology, Driving Innovation Together
Total number of employees has reached 11,458, with female employees accounting for 31.8%. • A total of 537 patents have been obtained, including 62 invention patents and 475 utility model patents.
•
•
•
• The number of factories that have passed the ISO 9001 Quality Management System certification is
• 12 factories have passed the ISO 45001 Occupational Health and Safety Management System certification, for 93%.
accounting for 80%, with 46 employees holding Registered Safety Engineer Qualification certificates. • 11 subsidiaries have obtained the IATF 16949 Automotive Industry Quality Management System certification,
covering
• The average number of hours per person involved in safety training has reached about
• Qingdao Liwang has obtained certifications for Information Security Management Systems and Medical Device
Quality Management Systems.
• The coverage rate of employee safety production liability insurance has reached 100%, the coverage rate in • Inner Mongolia Lightweight has obtained Quality Management System Certification for Aviation Industry and Quality
Management System Certification for Organizations of Automotive Production Parts and Related Service Parts.
employee safety training has reached 100%, the qualification rate of safety education and training has • Multiple customer satisfaction surveys were conducted throughout the year, with satisfaction
reached 100%, and the completion rate of emergency drills has reached 100%. levels all above 90%.
The functions of QMS (Quality Management System) have been integrated into the MES
•
(Manufacturing Execution System) to form a ''quality-production'' closed-loop management system.
• There have been
Open Cooperation for a Win-Win Future
• Over 140 various employee activities and more than 40 employee skill competitions were organized.
The Company has promoted the optimization and upgrade of the digital procurement platform, achieving
•
Employee satisfaction surveys have covered 80% of employees, with a satisfaction rate of 90%.
•
• The Company has participated for
cumulatively issued RMB 600,000 in educational grants to students in Zouping City,
• A total of 176 model vehicles were awarded to outstanding employees.
assisting 300 students in continuing their education.
• The Company has purchased 25,000 kg of Hua Niu Apple for the second consecutive
year to support fruit farmers in increasing their income.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Sustainable Development Management
Sustainable Development Strategy
In order to practice the green and high-quality development of the enterprise and accelerate the international market layout,
As a leading enterprise in the aluminum alloy industry, Innovation New Material, with the core philosophy of ''Innovation
the Company officially launched the ''NOVEL'' sustainable development strategy for Innovation New Material in 2024. Focusing
Shapes the Future'', has established a development strategy of ''High-End Orientation, Global Integration, and Eco-Friendly
on the corporate philosophy of ''Innovation Shapes the Future'', the Company has clarified the principle of promoting the
Transformation'' to systematically promote the Company's sustainable transformation. The Company has formulated a
green manufacturing, scaled talent development and high-end market with technological innovation, management innovation
sustainable development strategy plan, improved the governance structure for sustainable development, and established a
and product innovation. Thus, a sustainable development strategy system of ''one core and five sectors'' has been formed.
long-term collaboration mechanism with stakeholders, forming a full-value chain sustainable development model that covers
technological research and development, green production, and low-carbon recycling. This year, Innovation New Material
joined the Aluminum Stewardship Initiative (ASI), committing to the construction of a green aluminum industry chain and
practicing the goals of a circular economy and low-carbon development.
One Strategic Core
Values-based leadership
With a strategic focus on ''High-End Orientation, Global Integration, and Eco-Friendly Transformation'', we
aim to build a world-class aluminum alloy material developer and manufacturer. Employees are a vital support for Innovation New Material. The Company continuously improves its employee rights protection
system and fosters an equal and diverse workplace environment. The Company continuously enhances the level of
occupational health and safety management, providing employees with ideal career paths and benefits packages, which lays a
solid foundation for attracting and retaining talent, and building a high-quality team. This also establishes a good foundation
Five Strategic Pillars
for expanding into overseas markets.
Nature-based approach Eco-efficiency solutions
Low-carbon development is the cornerstone of Innovation New Material's strategy. Seizing the Recycled aluminum is the direction of development for Innovation New Material. Innovation New
opportunities brought by climate change, Innovation New Material integrates upstream Material has strengthened its layout in the field of recycled aluminum, actively promoting the
resources, continuously increases the proportion of low-carbon raw materials such as molten research and application of recycled aluminum, and recycling aluminum scrap from the production
aluminum and green electricity aluminum, adopts short-distance transportation of aluminum process, downstream customers, and external markets for manufacturing, achieving grade
liquid, and deploys renewable energy sources such as hydropower, wind power, and retention utilization of recycled aluminum. The Company fully leverages the advantages of the
photovoltaics. Focusing on green and low-carbon development, the Company creates product industrial chain, integrating the concepts of green and lightweight development into the upstream
advantages, builds industry barriers, and empowers the green transformation of downstream and downstream of the value chain, and promoting the development of the circular economy.
industries such as new energy vehicles, photovoltaics, and 3C electronics.
Open-minded collaboration Leading-edge innovation
Open cooperation is an essential driving force in the process of internationalization. Innovation New Material actively develops Technological innovation is the driving force behind Innovation New Material. The Company continues to advance the
overseas businesses, expands into foreign markets, and serves international customers. The Company focuses on deepening construction of its innovation and research and development system, applying advanced digital tools to business management
supply chain cooperation and integrating into and contributing to the development of local communities as key entry points, and production processes to promote intelligent manufacturing with technology. Through technological and product
helping the Company move towards internationalization and build integrated product offerings. innovation, the Company provides customers with a diverse, high-end, and green range of aluminum alloy products, builds a
rich product matrix, deepens customer cooperation, and works together to achieve sustainable development.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Sustainable Development Governance Framework Stakeholder Communication
Innovation New Material places great emphasis on sustainable development governance, aiming to achieve high-quality and Innovation New Material actively engages in stakeholder communication and continuously enhances its sustainable
sustainable development for the Company. The Company fully integrates the ESG concept into the daily management system, development capabilities based on the expectations and requirements of stakeholders. We identify various stakeholders
actively paying attention to the expectations of stakeholders such as customers, employees, and investors regarding the widely in line with the Company's operational characteristics and business scope, and establish multiple communication
Company's sustainable development performance, and striving to continuously deliver value to all stakeholders. mechanisms to better pay attention to and respond to the expectations and demands of stakeholders. This helps to build
harmonious and friendly cooperative relationships and to achieve a win-win situation for all parties involved.
To better advance sustainable development governance, Innovation New Material has established an ESG management
system that includes the board of directors as the highest governing body, a Strategy and ESG Committee under the board of
directors as the specialized committee, an ESG Task Force to coordinate ESG efforts across various subsidiaries, and each
subsidiary as the primary executing entity. This structure lays a solid foundation for managing ESG-related matters within the Stakeholders Communication Methods Expectations and Requirements
Company.
Shareholders and Shareholders' meeting, Field trips, R&D Innovation, Responding to
Investors Annual/Interim reports, Research and Product management, climate change,
Corporate questionnaire Customer service, Carbon emissions
announcements/Press management
releases,
As the highest decision-making body for the Company's ESG efforts, Board of Directors is
responsible for the Company's ESG strategy and reporting. It regularly listens to and
Government and Regular meetings of Site visits, Business ethics and Public interest
reviews the ESG progress reports from the Strategy and ESG Committee and provides
Regulators regulatory authorities, High-level compliance, initiatives,
Board of Directors guidance and recommendations on the ESG work policies.
Seminars, meetings, Water resource Biodiversity
Regular information Policy advisory management, conservation
reporting, Occupational health and
safety,
The Board of Reporting, The Board of ESG governance, Business ethics and
• As a specialized committee under the board of directors for ESG management, Directors and Directors, compliance,
High-level meetings, Product management,
Strategy and ESG Committee regularly reports significant ESG matters to the board; Corporate Regular Sustainable supply
Management Site visits, R&D Innovation,
questioning chain,
• Conducts ESG-related research and formulates recommendations for ESG strategy,
Energy management
policies, and work plans, reviews major risk response plans related to ESG, ESG
reports, and other significant ESG-related public disclosure documents;
Employees Staff council, Employee Employee rights and diversity,
Strategy and ESG • Oversees the Company's commitments and performance on important issues such as satisfaction survey,
Symposium, Professional health and safety,
Committee climate change and other ESG-related matters; Training,
Employee feedback Talent Training and Development,
• Responsible for ESG risk management, reviews and assesses controls related to mailbox, Internal publication Compensation and benefits
significant ESG risks of the Company, overall controls ESG risks, and continuously Internal office
software,
improves the ESG risk management system.
Clients Business Client satisfaction Product management, Carbon emissions
communication, survey, Customer service, management,
Customer feedback, Social media Circular economy and Responding to
waste management, climate change,
Energy
management
• Research and draft ESG strategies, action plans, and management systems; organize
the preparation of ESG reports and other ESG disclosure information;
Partners Bidding and Field trips, Sustainable supply Occupational health
• Monitor ESG-related risks and matters in daily management, liaise with consulting procurement, Seminars and chain, and safety
and rating agencies, and conduct ESG management training activities; Access and evaluation, forums Product management, manufacturing
ESG Task Force • Coordinate and promote the implementation of ESG-related matters, sort out and
prepare fundamental information required for decision-making, and effectively fulfill Community and the Public welfare Social media, Actions for the public Responding to
daily ESG management responsibilities. Public activities, Seminars good, climate change,
Community activities, R&D Innovation, Carbon emissions
Press releases, management
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Materiality Issue Analysis The Materiality Issue Matrix Diagram of Innovation New Material in 2024
Innovation New Material conducted an analysis of ESG materiality issues by referencing the industry's ESG policy and standard High
system, taking into account the core concerns of the capital market, and integrating deeply with the Company's core business Product
layout and future development planning. A total of 18 key ESG materiality issues were identified. management
To further understand the feedback from stakeholders on the importance of the Company's ESG issues, Innovation New R&D and innovation
Material conducted a survey on the importance of these issues with stakeholders through a combination of online and offline Customer service
methods. The Company conducted an in-depth analysis of the feedback from all relevant parties and created the following Business ethics and Sustainable supply
matrix of key issues to better respond to the demands of stakeholders. compliance chain
Impact on external stakeholders
Climate change
Circular economy and waste response
Water resources Occupational health
management
management and safety
Resource/Energy
Employee rights and diversity management
In line with the latest ESG management trends, the overall industry situation, and
Strategic
the focus of the capital market, clarify the Company's strategic direction and
Planning and
ESG governance
business priorities. Talent training and
Business
Exhaust emission Carbon
Strategy Analysis management development emissions
management
Public welfare
actions
Compensation and
benefits
Collect opinions and suggestions from internal and external stakeholders on ESG
Survey Research
issues through email communication, telephone inquiries, and on-site interviews.
and Stakeholder
Communication Biodiversity conservation
Impact on Innovation New Material High
Evaluate the impact of ESG issues on the Company's operations, focusing on the
Impact
Environmental Issues Social Issues Governance Issues
Significance scope of impact, the likelihood of occurrence, and irreversibility, to identify issues
Assessment that significantly affect the Company's sustainable development.
Highly material issues Moderately material issues Generally important issues
R&D and innovation Talent training and development Public welfare actions
Product management Customer service Biodiversity conservation
Invite third-party experts to provide professional opinions and, in conjunction
Third-Party
with board review, select high-quality suggestions to ensure the scientific and
Expert Opinions
Sustainable supply chain ESG governance
authoritative identification of issues.
and Board
Review Circular economy and waste
Business ethics and compliance
management
Occupational health and safety
Employee rights and diversity
Energy management Compensation and benefits
Based on the assessment results, categorize issues into high, medium, and low
Issue
priority levels, ultimately determining 8 highly material issues, 8 moderately Carbon emission management Exhaust emission management
material issues, and 2 generally important issues, providing a clear direction for
Classification and
Climate change response Water resources management
subsequent ESG management.
Priority Ranking
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
As one of the world's largest suppliers of aluminum alloy materials, Innovation New
Material steadfastly adheres to a green, low-carbon, and sustainable development
path. With the recycling and utilization of secondary aluminum as one of its core
strategies, the Company leverages its integrated upstream-downstream advantages
to comprehensively build a circular ecosystem for the aluminum industry with
''Innovation characteristics''. By expanding recycled aluminum sourcing channels,
establishing high-standard production processes, and promoting industry standards
for secondary aluminum, the Company provides downstream clients with high-quality
secondary aluminum products and delivers green solutions tailored to the industry, to
foster a sustainable aluminum alloy industry chain.
Circular
Development for
Sustainable
Coexistence
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Our Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Exploring New Potential of Secondary In 2024, the Company achieved a reduction in the carbon footprint of some aluminum alloy products by using a high
proportion of secondary aluminum in raw materials.
Aluminum
Alum in um a lloy r oun d in got ( 100% r ecycled a lum in um )
pr oduct ca r bon r eduction effectiven es s m a p
As one of the Company's core business segments, we remain deeply committed to exploring the potential of secondary
aluminum. Through diversifying recycling channels, expanding production capacity, and optimizing the production process for
CO₂e/kg product
grade-preserved secondary aluminum, we are building a green, low-carbon product system with a high proportion of recycled
aluminum. These efforts have earned recognition from internationally renowned 3C and automotive companies, while
contributing innovative solutions to decarbonization pathways for both our industry and downstream sectors.
Achieving a
Expanding Secondary
Aluminum Recycling Channels
emission
reduction per
kilogram of
aluminum alloy
round ingot
Secondary
Aluminum
Grade-Preserving
Integrated Utilization of Products
Secondary Aluminum
By using secondary CO₂e/kg product
Contribute to the Ecological
Construction of Secondary aluminum as raw materials,
Aluminum approximately 96% of the
product carbon footprint in
Through top-level coordination and cross-departmental collaboration mechanisms, the Company integrates its Technology the raw material acquisition
R&D Center, Secondary Aluminum Procurement Department, Marketing Department, Safety and Environmental Protection process can be reduced
Department, and Finance & Administration Department to synergistically advance strategic planning, technological
development, production management, supply chain integration, and environmental compliance. This comprehensive
process management ensures efficient operation of the secondary aluminum business.
Low-Carbon Advantages of Secondary Aluminum
Using secondary aluminum as an alternative to primary
aluminum can yield substantial environmental benefits：
Compared to primary For every1 ton of primary aluminum replaced，we can achieve aluminum alloy round ingot Carbon reduction process aluminum alloy round ingot
aluminum, the carbon
aluminum）
simultaneously reduce 3.4 tons of standard coal energy-
emission intensity is
less than
consumption , 14 cubic meters of water-consumption and
Carbon emissions Carbon emissions from
Carbon emissions from
from raw material waste disposal and logistics
manufacturing
acquisition transportation
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Our Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Secondary Aluminum Certifications The Target of Secondary Aluminum's Proportion
Innovation New Material has obtained SCS Recycled Content Certification and Underwriters Laboratories (UL) Global Recycled The Company continues to explore process optimization while maintaining quality standards, aiming to develop more
Materials Certification for selected products. Several subsidiaries have also completed international secondary aluminum products with higher secondary aluminum content.
system and product certifications.
Innovation Metal successfully passed the ''GRS Global Recycled Standard'' certification audit and
obtained GRS 4.0 certification, and it aims to increase the use of recycled materials in products while
Chua ngyua n
R enew a ble
Achieve a 40% proportion of secondary aluminum raw materials
reducing or eliminating the environmental impact of production. The Company's aluminum ingot and R es our ces used by 2025.
Innovation aluminum billet products can be made with 100% recycled materials.
Metal
S uzhou Achieve a
Chua ngta i materials used by 2025.
certification.
Innovation Secondary Aluminum Production Capacity
Precision
Innovation New Material has vigorously promoted the construction of secondary aluminum production lines. Through the
introduction of world-class equipment and actively research and develop secondary aluminum production technology, the
Company has further enhanced its secondary aluminum production capacity and output. The Company has strategically
deployed 7 secondary aluminum projects with a planned total capacity of 2.05 million tons. By the end of 2024, 6 secondary
Selected products certified with UL certification, the 6R01 product utilizes 100% recycled aluminum. aluminum projects have been put into operation, achieving an annual production capacity of 1.7 million tons.
Suzhou
Chuangtai
Successful Trial Production of 500,000-ton Annual Capacity Secondary
Aluminum Project's Aluminum Alloy Slab Production Line
In July 2024, Innovation New Material successfully completed trial production of the aluminum alloy slab line in its
alloy slabs. This milestone represents another solid step forward in the Company's pursuit of high-quality development.
Upon full completion and reaching designed capacity, the project is expected to achieve a aluminum scrap recovery rate
exceeding 96%, with a metal loss rate maintained at 3% or below, while delivering annual CO₂ emission reductions
exceeding 25,000 tons. Meanwhile, the project utilizes a supporting waste heat power generation system to meet over
technological achievement, namely the ''short-process alloying technology for high-strength and high-toughness
aluminum alloys'', to achieve direct supply of molten aluminum to downstream production. Compared to the traditional
The 6061GR products of Innovation Precision have obtained The 6061 products of Innovation Precision have obtained the
the SCS 100% Secondary Aluminum Certification SCS 100% Secondary Aluminum Certification model, this reduces energy consumption in secondary melting and casting by 20%, promoting the formation of a closed-
loop circulation system of ''resources - products - renewable resources'' across the entire industrial chain.
Innovation New Material successfully completed trial production of the aluminum alloy slab line
in its
Achieving a single production output of 61tons of aluminum alloy slabs
Achieving a aluminum scrap recovery rate exceeding 96%
Metal loss rate≤3%
Innovation Metal has obtained Suzhou Chuangtai's Product A Innovation Precisions' Product A Innovation Precisions' Product B Annual CO₂ emission reductions exceeding 25,000 tons
GRS Global Recycled Standard from the 6-Series has obtained the from the 6-Series has obtained the from the 6-Series has obtained the
Certification UL 100% Secondary Aluminum UL 100% Secondary Aluminum UL 100% Secondary Aluminum
Recycling Content Certification Recycling Content Certification Recycling Content Certification
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Our Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Expanding Secondary Aluminum Recycling Channels Market Waste Recycling
As an industry leader in secondary aluminum, Innovation New Material has established a comprehensive recycling system The Company actively builds market-oriented aluminum scrap recycling channels, establishing stable waste recycling models
encompassing in-house production line scrap, industrial by-products from downstream customers, and external market waste through downstream customer procurement and third-party recycling channels. By setting up specialized recycling teams in
materials. This system ensures stable supply of secondary aluminum raw materials. In the current year, the Company has key raw material distribution centers in Jiangsu and Sichuan, and implementing grid-based fixed-point recycling mechanisms,
significantly increased aluminum scrap recycling across all channels, achieving a total comprehensive recycling volume of the Company achieves precise traceability and efficient circulation of aluminum scrap raw materials, ensuring accurate market
house production line aluminum reuse. compression, to assist in securing the sources of scrap materials, which helps to establish a traceability mechanism for scrap
materials.
Industrial Waste Recycling
In-House Production Line Aluminum Reuse
The Company actively implements a ''six-in-one'' recycling industrial chain operation model for the aluminum processing
industry, continuously promoting the resource utilization of aluminum scrap. We efficiently recycle industrial by-products The Company firmly implements resource recycling during production operations, actively recovering production waste such
generated during its own production processes and have established strategic cooperation agreements with downstream as rod heads, rod tails, aluminum shavings, and aluminum blocks to maximize resource utilization. In addition, the Company
customers to jointly advance resource recycling. By the end of 2024, over 50% of the raw materials for Suzhou Chuangtai came has established an efficient and advanced recycling process, and further promotes the recycling of aluminum scraps and
from industrial scraps provided by downstream customers. The utilization rate of 6013 recycled aluminum reached 100%, enhances resource utilization efficiency through continuous technological innovation and optimization of process flows. In
while the proportion of 6061 and 6063 recycled aluminum used stood at 75%. 2024, the Company reused 403,000 tons of process waste from its own production lines.
Fulian Innovation: Collaborating with Downstream Customers to Build
Aluminum Scrap Recycling Production Lines
In April 2024, Innovation New Material signed a strategic cooperation
agreement with Fulian Yuzhan Technology (Shenzhen) Co., Ltd., a subsidiary
of Foxconn Industrial Internet, to jointly establish Foxconn Innovation. This
venture actively supports end customers' low-carbon development
strategies and has successfully overcome recycling challenges for aluminum
alloy materials used in mobile phones. The partners jointly developed
recycling standards and quality requirements, constructing aluminum
shavings recycling production lines within Innovation New Material's
existing facilities. They established an efficient logistics system, to ensure
effective collection, transportation, and processing of scrap materials. This
year, Foxconn Innovation achieved 100% recycling of aluminum alloy
materials for notebooks and tablets.
? Innovation New Material and Foxconn Industrial Internet signs strategic cooperation agreement
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Our Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Grade-Preserving Integrated Utilization of Secondary Aluminum Production Technology for Product Quality Level Maintenance
Innovation New Material has vigorously promoted technological innovation, overcoming multiple key technical challenges to The Company has pursued full-chain innovation in secondary aluminum, spanning ''fundamental theory-equipment
achieve industry breakthroughs in closed-loop recycling and quality level maintenance and upgrading of secondary aluminum. development-process optimization-application demonstration'', achieving breakthroughs in three core green recycling
Through strict process control and key technologies such as high-quality aluminum melt purification and efficient removal of technologies. By overcoming technical challenges in maintaining the quality level of wrought aluminum alloys recycling, the
impurities in secondary aluminum, the Company formulates secondary aluminum containing various impurities into Company has expanded secondary aluminum applications to high-end manufacturing fields such as 3C electronic
secondary aluminum alloy products with qualified composition and performance, successfully achieving the upgraded components and lightweight parts for new energy vehicles, forming a complete industrial demonstration system covering ''raw
utilization of secondary aluminum. material recycling-process innovation-product application''.
Smart Manufacturing Production Line:
Establishes a closed-loop industrial
Grade Maintenance Process for Secondary Aluminum chain from ''secondary aluminum
purification - high-end profile extrusion
- end-product manufacturing''.
Impurity Removal Deslagging Degreasing Classification
Three Core
Technological Intelligent Pre-Treatment
Impurity removal After impurity removal, Specialized cleaning Strict classification Breakthroughs System: Enables efficient
treatment can eliminate further steps such as equipment and stringent management based on impurity sorting and VOC
other possible metallic chemical leaching and methods (chemical or alloy composition, grade, adsorption purification.
elements or non-metallic refining are carried out to physical) are used to and application Innovative Melt Refining & Casting
impurities in aluminum remove inclusions and thoroughly remove oil requirements enhances Process: Develops high-strength 6/7
alloys, and advanced impurities in aluminum stains from the surface of secondary aluminum series recycled aluminum alloys.
screening and magnetic alloys, ensuring the purity aluminum alloy. utilization rates, as well as
separation technologies of the aluminum alloys. the quality and
are employed to ensure performance of final
Innovation Metal: Grade Maintenance and Upgrading of Recycled
the effective removal of products.
Aluminum & Green Production Technology
impurities.
Focused on quality level maintenance and upgrading of recycled aluminum, Innovation Metal has overcome key
challenges in high-performance 3C product recycling and large-scale production of wrought aluminum alloys. Its R&D
Production Scale of Secondary Aluminum with Maintained Level team developed regenerative central heat exchange technology, recovering waste heat to preheat air to 800–1,000°C,
reducing energy consumption by 10%. EMP pump circulation technology maintains melt temperature differences at 3–
Building on its advanced grade-maintenance processes, Innovation New Material continues to expand its secondary aluminum 7°C, enhancing process stability. Breakthroughs in melt purification, impurity control, homogenized solidification, and
production capacity. In 2024, subsidiaries actively developed secondary aluminum businesses, driving capacity expansion heat treatment ensure effective impurity management and compositional uniformity, achieving a scrap recovery rate
through technological innovation to promote aluminum resource recycling and green, low-carbon production, contributing exceeding 98%. This achievement supports the high-quality development of Shandong's secondary aluminum industry
significantly to sustainable development. and has been included in the ''Shandong Major Scientific and Technological Innovation Achievements Collection
System''.
Innovation Metal Shandong Sheet Materials
Innovation Metal: Upgrade of Green, Intelligent, Low-Energy Pre-
Treatment Equipment for Recycled Aluminum
Achieved record-high recycling rates for aluminum Advanced aluminum scrap recycling technology in
Innovation Metal has upgraded its green, intelligent, low-energy pre-treatment equipment for recycled aluminum,
scrap , with continuous upgrades to quality level 2024, achieving an annual maintained quality-level
establishing one secondary aluminum pre-treatment production line. This system efficiently processes cans and scrap
maintenance equipment and technologies. Its secondary aluminum capacity of 30,000 tons. Each ton
profiles through crushing, magnetic separation, air classification, eddy current separation, and X-ray sorting, achieving
maintained quality level secondary aluminum capacity of recycled aluminum saves approximately 14,000 kWh
has reached 1.5 million tons, demonstrating of electricity.
stainless steel). The Company also developed pyrolysis technology for organic residues and carbon-based precipitates
outstanding results in aluminum resource recycling.
on aluminum scrap surfaces, along with paint removal pre-treatment. One delacquering furnace has been installed to
process crushed aluminum scrap (including cans, extruded profiles, printed circuit boards, cylinder heads, and foil) via
continuous pyrolysis for paint removal and drying, with combustion chambers incinerating pyrolyzed gases.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Our Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Contribute to the Ecological Construction of Secondary Aluminum The Company actively engages in cooperative projects with universities. Focusing on the high-end aluminum profile domain,
we have been exploring sustainable development pathways to support the Company's green transformation.
Innovation New Material leverages the technological advantages of recycled aluminum, taking the lead in formulating national
industry standards for recycled aluminum. The Company has been granted 1 invention patent and 12 utility model patents in
secondary aluminum technologies, driving industry-wide advancement. By the end of 2024, Innovation Metal has won
numerous awards: ''Aluminum'' Path to Low Carbon: The Dual Carbon Innovation Journey of
Tsinghua Students and Innovation Precision
On July 5, 2024, Innovation Precision collaborated with Tsinghua University to launch a carbon neutrality capability
enhancement project, hosting an online project initiation meeting. The participants included practice instructors from
Tsinghua University, corporate instructors, practice management instructors, and five project students. The practice
group students presented their project initiation report titled Assessment of Carbon Emission Effects of Secondary
National Non-Ferromagnetic Metals Technical Aluminum Recycling Based on Different Raw Material Ratios. From July 7 to 13, 2024, the practice group conducted
Standards Excellence Award offline field research. They visited the production workshops of the Shandong factory, learned about the secondary
aluminum recycling process, collected carbon emission data, and preliminarily formulated a carbon emission
Lead author of national standards: Recycled Aluminum,
accounting report.
Secondary Cast Aluminum Alloy Raw Materials, Aluminum
and Aluminum Alloy Terms – Part 4: Recycled Aluminum Through this research project and field investigation, both teachers and students gained a deeper understanding and
recognition of the development of the secondary aluminum recycling industry and energy conservation and emission
reduction. They also won the second prize in Tsinghua University's Carbon Neutrality Capability Enhancement Project.
Innovation Taking this opportunity, Innovation Precision, leveraging its strengths in aluminum alloy material research and
Second Prize, China Non-Ferromagnetic Metals development as well as production, further optimized the secondary aluminum recycling process, established a more
Metal
Industry Science & Technology Award complete closed-loop supply chain for aluminum alloy materials, and reduced energy consumption and carbon
emissions.
Participated in the formulation of the Development and
Promotion of a Series of National Standards for Recycled
Aluminum Raw Materials
Shandong Major Scientific and Technological Achievements Collection System
Executed Shandong Key R&D Program: Process Research & Industrialization of High-Performance Aluminum
Alloys Using Recycled Aluminum
Provincial Quality Benchmark
Exploring the Province's Quality Benchmark - the Practice of Building a 'Six-in-One' High-Quality Secondary
Aluminum Recycling Ecosystem
First Prize, Binzhou Patent Award
Invention patent: Production Process for Electronic-Grade Aluminum Alloys Using Secondary Aluminum
? Innovation Precision has launched a carbon neutrality capacity improvement project with Tsinghua University
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Facing the pressing challenges of global climate change, Innovation New Material, as a
leading global aluminum alloy materials provider, has taken the initiative to align with
China's dual-carbon strategy. Guided by green development principles, the Company
is driving transformation across the aluminum industry value chain. Leveraging clean
energy advantages and industrial cluster effects, the Company has established a
sustainable development model centered on ''green raw materials, low-carbon
manufacturing, and circular recycling''. Building on clean production foundations, the
Company focuses on creating a low-carbon production chain from raw materials to
aluminum alloy products. By providing eco-friendly aluminum alloy solutions, the
Company empowers downstream industries—including new energy vehicles,
photovoltaics, and 3C electronics—to achieve green transformation, contributing to
global climate governance.
Green and Low-
Carbon, Building
Our Home Together
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
List of Climate Risks
Actively Address Climate Change
Physical Risk Assessment Results
Innovation New Material places great emphasis on the impact of climate change on the environment and is committed to Potential Impact
promoting actions to address climate change, continuously transitioning towards a low-carbon economy. In the current year, Risk Risk
with reference to the framework and recommendations outlined in IFRS Sustainability Disclosure Standard No. 2 - Climate- Response Strategies
Type Identified1 Financial Time
related Disclosures issued by the International Sustainability Standards Board (ISSB), the Company has actively assessed the Operational Impact Risk Level
Impact Horizon2
risks and opportunities posed by climate change to its business operations and value chain. We have analyzed its measures to
combat climate change across various time horizons and evaluated corporate resilience, with the aim of comprehensively Strong winds, heavy Increased Short-term Low • When selecting sites for
enhancing its capacity to manage climate change risks and seize opportunities arising from it. rain, and storm surges operational new factories and
may damage buildings, costs, operational locations,
disrupt transportation, reduced assess climate risks in
Governance and in severe cases, revenue advance.
cause casualties. Improve emergency
As the highest decision-making body, the Board of Directors holds ultimate accountability for climate-related issues. To
•
strengthen management efficacy, the Board authorized the Strategy and ESG Committee to oversee climate risk management Typhoon response plans for
systems, review climate targets, track progress, and coordinate risk identification, quantification, and response planning. extreme weather (e.g.,
Through regular specialized reporting, the Committee provides expert decision-making support to the Board, forming a evacuation procedures).
Acute
closed-loop ESG governance model of ''strategic decision-making with professional backing''. Enhance the capability
Risks
•
to respond to extreme
At the operational level, the ESG Task Force serves as the coordinating body for climate initiatives across subsidiaries, which
weather (e.g., stockpile
act as primary implementation units. The Task Force collaborates with subsidiaries to advance climate risk management.
emergency supplies).
Regular climate-focused briefings are held for the Board and senior management to enhance their expertise and competency
in climate-related matters. Infrastructure damage, Short-term Low • Prepare to construct
water/power outages, flood control facilities.
Strategy
Extreme
logistics disruptions, Establish early warning
Rainfall / •
potentially halting systems and
Flooding
Facing the challenges and opportunities brought by climate change, we have deeply integrated climate resilience thinking into operations and causing contingency plans.
the core of corporate governance and strategy. We have established a dynamic closed-loop system of ''climate scenario financial loss.
analysis - risk and opportunity identification - strategic adjustment and response'' to evaluate the strategic impacts of energy
transition, policy changes, and shifts in market preferences under different temperature control targets, identifying major risks The effects of sustained Increased Long-term Low • Enhance the efficiency
and key opportunity areas. To gain a detailed and comprehensive understanding of the Company's risk levels under different high temperatures lead operational of water resource
climate scenarios, this year we prioritized assessing the impacts of key physical and transition risks on our own factories and to reduced precipitation, costs utilization, carry out
offices under both low-emission and high-emission scenarios, considering factors such as risk concentration, impact water scarcity and water conservation
Heatwaves
magnitude, and data availability, to evaluate the risks and opportunities to our operations under different climate conditions. increased energy measures and enhance
/ Drought
demand. the water recycling rate.
Risk and Opportunity Identification and Response • Enhance employees'
awareness of water
This year, based on the Company's strategic development plan and referencing future climate change trends, combined with
conservation.
input from internal and external industry experts and industry development trends, we identified and categorized the impacts Chronic
of climate risks and opportunities on operations and financial performance in the short, medium, and long term. Incorporating Risks Coastal erosion, Increased Long-term Low • Follow up the climate
feedback from business units on risks and opportunities, we conducted assessments to prioritize them, helping the Company saltwater intrusion and operational change situation in the
develop more targeted response measures. inundation of coastal costs operation site.
areas may as a result of • Conduct an EIA at the
Sea Level rising sea-level, pre-feasibility study and
Rise damaging coastal site selection stage of
International Energy Agency (IEA), and Network for Greening the Financial System (NGFS), including their research findings, reports and descriptions of different infrastructure and the project.
emission scenarios. affecting the safety of
coastal business
have set the following timeframes: within 1 year after the reporting period (short-term); 1 to 5 years after the reporting period (medium-term); and more than 5 years
after the reporting period (long-term), to reasonably assess the impact of climate on business development during different periods. operations and people.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Transition risks Climate Opportunity Assessment Results
Potential Impact
In terms of climate opportunities, the industrial chain is accelerating the energy-saving and carbon-reduction process
Risk Type
Risk
Response Strategies throughout the product lifecycle, driving sustained growth in demand for low-carbon aluminum products. This presents
Identified Financial Time
Operational Impact
Impact Horizon
Risk Level significant climate opportunities for the Company in three areas: products and services, market expansion, and climate
May need to purchase Rising cost of Short to Medium • Actively participate in the carbon
resilience. Meanwhile, by implementing energy-saving technological transformations and expanding the use of clean energy,
more carbon credits in carbon medium trading market and rationally plan the Company has effectively improved resource utilization efficiency and optimized its energy mix, providing positive impetus
the market to meet compliance, term strategies for purchasing carbon
for cost reduction and efficiency enhancement.
production needs; rising cost of emission rights.
Carbon
affects exports to purchasing Lay out in advance, explore low-
Trading and •
overseas markets, carbon carbon production modes and
Carbon Type of Operational impact Financial impact Likelihood Response strategy
which in turn affects credits reduce carbon compliance costs.
Adjustment opportunity
cross-border
Mechanism
transactions in the By introducing green and clean energy and Increase sales High • Strengthen R&D innovation,
Company's
optimizing production processes, we create profits, expand continuously optimize product
downstream value
chain. low-carbon products to meet market demand market share, performance and production
for such items. At the same time, we have reduce production processes, and enhance product
Policy and With the introduction Rising cost of Short-term Low • Establish a professional policy signed strategic aluminum recycling costs, and elevate competitiveness.
Legal Risks of information labor, rising research team to interpret the latest
disclosure standards cost of information disclosure requirements Products & cooperation agreements with downstream brand value. • Expand market channels, intensify
by international and information in a timely manner. Services customers to support the production of brand promotion, and increase brand
domestic tracking and • Use digital tools to enhance the greener and lighter aluminum alloy products, awareness.
organizations, maintenance efficiency of information disclosure. providing high-quality aluminum alloy
disclosure Deepen cooperation with upstream
Information materials for downstream customers and
•
requirements for • Strengthen communication with and downstream enterprises to build
Disclosure stakeholders and prepare for fostering the co-creation of economic and
climate change a green and low-carbon industrial
information are information disclosure in advance. social value across the value chain.
ecosystem.
becoming more
stringent, making it Global countries and regions are providing Revenue growth High • Vigorously promote low-carbon
more difficult to track strong support for green development, leading driven by increased transformation, respond to market
and understand the to an accelerated low-carbon transformation product demand. demand for green aluminum alloys,
policy. Markets
of the market and an increased demand for seize new market opportunities, and
With the country's goal Rising cost of Short to Medium • Cooperate with scientific research green aluminum alloys. achieve new growth in operating
of ''carbon peaking by R&D, rising medium institutes to lay out clean technology revenue.
neutrality by 2060'', technology advance. We are implementing energy-saving Lower production Medium • Gradually implement energy-saving
the country's carbon failure, rising • Establish a technology assessment technological upgrades to enhance costs, boost sales technological upgrades to enhance
emission policy will be cost of labor system and fully evaluate new production efficiency, reduce resource usage, profits, and production efficiency, reduce
gradually tightened, Resource
technologies before applying them. and lower energy consumption. Benefiting improve resource resource consumption and energy
resulting in the Efficiency
Cultivate and introduce relevant from increased production capacity, more utilization efficiency. usage.
Clean Company facing •
Technology technical talents to enhance the finished products can be produced in the
Technology pressure to reduce
Risk adaptability of technological
Replacement carbon emissions, and same amount of time.
in the short to medium replacement.
We are constructing green energy facilities Reduce energy Medium Increase investment in green energy
term, the Company
•
may face the need to such as photovoltaic and wind power at costs and mitigate and continuously expand the
reduce carbon multiple operational sites, with plans to future compliance deployment of photovoltaic, wind
emissions, which may gradually replace traditional energy sources risks arising from power, and other green energy
lead to the for production activities. In the Yunnan region, stricter emissions facilities.
replacement of clean Energy we continue to increase the proportion of policies. Collaborate with energy suppliers to
technology. Sources
•
hydropower used to raise the share of clean optimize the energy procurement
Downstream clients Rising raw Medium Medium Strengthen market research and lay energy. structure and reduce energy costs.
•
and consumers are material term out the market for green products in
demanding more costs advance. • Strengthen energy management,
green and low-carbon • Cooperate with suppliers to jointly improve energy utilization efficiency,
Demand for attributes from the explore green raw material supply and minimize energy waste.
Market Risk Green industry chain, which channels.
Products will lead to stricter We are extensively expanding into new energy Strengthen market High • Enhance industrial chain
entry requirements • Enhance the green and low-carbon to diversify energy sources, reduce reliance on competitiveness, collaboration by establishing long-
and the need to attributes of products to meet
market demand. fossil fuels, and enhance operational resilience enhance resilience term, stable partnerships with
purchase more green
amid the rapid development of low-carbon to climate change upstream and downstream
raw materials.
transformation. Through thorough market impacts, and lower enterprises to jointly address market
Business behaviors Lower Long-term Low • Establish a sound stakeholder research, we are gradually expanding into the operational risks. changes.
that are inconsistent revenue and communication mechanism to Resilience recycled aluminum and green aluminum Boost R&D investment to improve the
with green and low- goodwill understand and respond to their •
carbon philosophies concerns in a timely manner. industries, improving downstream resilience in low-carbon performance and quality
Reputation Stakeholder addressing carbon reduction challenges while
may negatively affect Strengthen brand building and stability of products.
Risk Feedback •
the ratings of the highlight the Company's green and also creating new revenue growth
Company by Establish a risk early-warning
low-carbon concepts and practices. opportunities for the Company.
•
stakeholders, resulting mechanism to proactively identify
in damaged goodwill. and mitigate potential risks.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
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Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Climate Scenario Analysis Scenario Analysis Process and Results
To comprehensively assess the Company's risk levels under different climate scenarios, this year, based on risk concentration, Based on the relevant climate parameters in the selected scenarios, the Company comprehensively assessed the impact of the
degree of impact, and data availability, we have focused on analyzing the core physical risks and transition risks faced by our relevant risks on the continuity of operations, the health and safety of personnel, financial indicators, etc., and sorted out the
self-owned factories and offices under low-emission and high-emission scenarios, with a view to identifying risks and risk levels of the Company under different scenarios in 2030 and 2050 3.
opportunities arising from changes in climate conditions.
Climate Scenario Selection and Parameters Risk influence levels
Considering the Company's and industry's energy consumption characteristics, policy sensitivity, and operational distribution, Risk descriptions Low Emission Scenrio High Emission Scenario
we adopted the IPCC SSP1-2.6 and SSP5-8.5 scenarios to analyze the resilience of the business to physical risks. For transition
risks, we utilized the IEA Net Zero Emissions (NZE) Scenario and Stated Policies Scenario (STEPS) to evaluate the Company's
adaptability to different energy structures. Typhoons
Acute Risks
Extreme Rainfall /
Low Emission Scenario High Emission Scenario
Flooding
IPCC SSP1-2.6 IPCC SSP5-8.5
High Temperatures /
Assumes global active emission reduction efforts to Assumes no climate policy intervention Drought
Physical Risk Chronic Risks
meet the Paris Agreement goals (temperature rise (temperature rise >4°C with frequent extreme
Sea Level Rise
<2°C). weather).
IEA Net Zero Emissions（NZE2050） IEA STEPS Carbon Trading &
Policy and Legal Risks Regulatory
Transition Assumes global carbon neutrality by 2050 with Assumes only currently announced policies are Mechanisms
Risk rapidly rising carbon prices and clean technology implemented, with growing energy demand and
adoption. continued dominance of traditional fuels. Clean Technology
Technology Risks
Replacement
Key scenario factors and potential impacts Risk influence levels Low Medium
Risk Types
Low Emission Scenario High Emission Scenario
Temperature rise controlled below 2°C; Temperature rise exceeds 4°C; increased
Extreme reduced probability and intensity of probability and intensity of extreme weather In terms of physical risk, considering the Company's existing geographical location and future development areas, and in the
Weather extreme weather events (floods, storms, events (floods, storms, typhoons, etc.) absence of any significant changes in the business model, there is no significant risk, although the risks of damage to assets
typhoons, etc.) and the health and safety of personnel caused by typhoons, extreme rainfall and flooding are likely to see a small upward
trend in the medium and long term. Although the losses caused by extreme weather cannot be completely avoided, we have
Physical Stable water supply for production with Particularly in drought-prone regions, water formulated relevant emergency plans to ensure the normal operation of our business and minimize the associated impacts.
Risk Water Stress low risk of water shortages supply may be severely affected by heightened
shortage risks In terms of transition risk, under the low emission scenario, the carbon-related policy requirements and market mechanism
will be gradually improved, and the replacement of clean technologies will be more frequent. However, the Company has
Minimal impact on logistics and raw Climate disasters may cause logistics delays accelerated the deployment of clean energy and energy-saving technological transformation, and considering the costs
Supply Chain
material supply; lower disruption risk and raw material shortages; higher disruption required to address the risks, the level of risk under the low emission scenario is consistent with the current assessment, and
Stability
risk the Company can cope with the relevant risks better. In the High Emissions Scenario, the Company is likely to meet regulatory
requirements without additional effort in the long term due to the slower pace of the low-carbon transition, so the overall
Implementation of low-carbon policies Lax implementation of carbon neutrality plans
Policy level of risk is low, and the Company is well positioned to address the risks at this stage of its development plan.
accelerates corporate transformation globally; volatile energy prices with weak
Pressure
decarbonization incentives
Growing demand for low-carbon products The demand for low-carbon products is
Transition
Market drives faster operational transformation slowing down, with enterprises showing less
Risk
Demand demand for such products and the growth of
market opportunities also decelerating 3 2030 is the target year for carbon peaking under China's 'dual carbon' strategy, and 2050 is the year of carbon neutrality under the Paris Agreement. In selecting the
timeframe and scenarios, the Company mainly considered that the timeframe available for analyzing the scenarios is consistent with the national and international
Carbon Rising carbon prices necessitate rapid Carbon prices may remain low, reducing carbon emission targets, as well as the timeframe of the Company's strategic development plan.
Pricing clean energy adoption urgency for clean energy transition
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Risk management Building a Green Aluminum Production
We have fully integrated climate risk management into our corporate environmental management system and proactively Chain
identified and investigated potential risks and development opportunities arising from various climate-related risks based on
the actual business situation and in conjunction with the results of scenario analyses, industry analyses, and advice from
external experts. In response to the identified risks and opportunities, we consider the possibility of their occurrence and the Innovation New Material adheres to the concept of green development, establishing a systematic aluminum alloy industrial
degree of impact on finance and business in conjunction with departmental feedback, prioritize the risks and opportunities, system centered on green and low-carbon practices to promote circular development across the entire industrial chain. Based
and formulate targeted response measures. We monitor climate-related risks on a regular basis to progressively improve the on actual production processes, the Company has developed a large-scale application model for green aluminum raw
Company's resilience to climate change. materials and a low-carbon, clean production framework, providing the ''Innovation New Materials'' solution for the low-
carbon development of the industry chain.
The Board of Directors and the Strategy and ESG Committee are continually briefed on the results of our climate-related risk
assessments, which are considered in management decisions, and targeted management recommendations are made.
By the end of 2024, 5 subsidiaries have conducted Aluminum Stewardship Initiative (ASI) certification audits, of which Suzhou
Chuangtai has successfully obtained the ASI certification.
Metrics and Targets
Casting
Using 2024 as the base year, decrease the greenhouse gas emission intensity
Inner Mongolia
Lightweight (Scope 1 + Scope 2) by Casting
Products
Automotive
Aluminum Billets Lightweighting
Using 2024 as the base year, decrease the greenhouse gas emission intensity
Yunnan
Innovation Alloy (Scope 1 + Scope 2) by
Extrusion Aluminum
Profiles
Electrolytic
Aluminum
Using 2024 as the base year, decrease the greenhouse gas emission intensity
Inner Mongolia New Energy
Melting and
New Materials (Scope 1 + Scope 2) by Casting Aluminum
Alloy
Aluminum Cables
Electrical Round
Aluminum Rod
Cold
Rolling Rail Transit
Secondary Casting and and Strips
Aluminum Rolling
Foil
Rolling
Total GHG emissions Direct GHG emissions Indirect GHG emissions
Industrial
(Scope I) (Scope II) Materials
Hot Rolling Aluminum Foil
……
tons CO2 equivalent tons CO2 equivalent tons CO2 equivalent
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
The Company also promotes low-carbon production process certifications and encourages suppliers to increase their
renewable energy usage, working together to minimize the carbon footprint across the product lifecycle.
Alum inum a lloy r ound ingot (hy dr o-pow er ed a lum inum )
pr oduc t c a r bon r educ tion effec tivenes s c ha r t
CO₂e/kg product
Reduces product carbon footprint by
stage through the use of clean energy
Achieving a 7.335
kg CO₂e emission
reduction per
kilogram of aluminum
alloy round ingot
CO₂e/kg product
Reduces product carbon footprint by
approximately 56% in the raw material
acquisition stage by utilizing hydro-powered
aluminum as raw material
Commitment to Using Green Aluminum
To further reduce the product's carbon footprint, the Company integrates green and low-carbon principles into raw material
selection. We are continuously expanding partnerships for green power aluminum (low-carbon aluminum), with a focus on
regions rich in wind, solar, and hydropower-based aluminum production, such as Inner Mongolia and Yunnan. We actively
collaborate with suppliers that use clean energy for electrolytic aluminum production to reduce greenhouse gas emissions at
the source. Additionally, the Company leverages the green power aluminum supplied by Shandong Innovation Group
(''Innovation Group'') and the hydropower aluminum from Yunnan Innovation Alloy, setting relevant capacity targets to
increase the proportion of green aluminum in our supply chain.
Green Aluminum Launch the 2030 Strategy, focusing on the development of aluminum recycling,
Targets of extruded products, and renewable energy power generation. Increase the
Suzhou proportion of recycled aluminum used, promote the green aluminum market, and
Chuangtai strive to become a pioneer in green aluminum transformation by 2030.
Green Aluminum Yunnan Innovation Alloy leverages its local advantages to purchase raw materials produced via
Capacity Targets hydropower and uses green electricity to produce products.
and Progress of
Yunnan As of 2024, Yunnan Innovation Alloy has achieved a production capacity of 510,000 tons for
Innovation Alloy aluminum billets and aluminum rods produced using green electricity. Aluminum alloy round ingot Carbon Reduction Process Aluminum alloy round
By the end of 2025, the production capacity of aluminum billets utilizing hydropower-based (produced by thermal ingot (produced by
power) hydropower)
aluminum production is expected to increase to
By the end of 2030, Yunnan Innovation Alloy aims to reach 900,000 tons. Carbon emissions
from raw material
Carbon emissions from
Carbon emissions from
waste disposal and logistics
manufacturing
acquisition transportation
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Green Industry Collaboration Model Optimization of energy structure
Innovation New Material leverages its aluminum industry cluster advantages to This year The Company actively responded to the national ''dual-carbon'' strategy, vigorously promoted green and low-carbon
establish an ''Innovation Model'' based on short-distance molten aluminum transformation, and achieved sustainable and high-quality development by continuously optimizing the energy structure and
transportation and downstream manufacturing. By directly supplying molten by comprehensively reducing energy consumption in the production and operation processes. During the year, 4 factories of
aluminum to production workshops, the Company eliminates the energy Company procured the Company obtained ISO 50001 Energy Management System certification.
consumption associated with repeated solidification and remelting of molten
million tons of molten aluminum
aluminum, significantly reducing greenhouse gas emissions. Additionally, the
adoption of short-distance transportation minimizes logistics distances and Energy Management System
lowers greenhouse gas emissions from transport vehicles, thereby decreasing the
accounting for The Company has always implemented the concepts of green management and green development. We have carried out
product's carbon footprint. This year, the Company procured 3.5025 million tons of
comprehensive and systematic planning, implementation, inspection, and improvement of energy use. We also scientifically
molten aluminum, accounting for 90.86% of its total electrolytic aluminum raw total electrolytic aluminum raw
monitor the entire process of energy management to effectively control energy consumption and enhance energy efficiency. In
materials4. materials
accordance with the Energy Conservation Law of the People's Republic of China, ISO 50001 Energy Management System, and
RB/T 117-2014 Certification Requirements for Energy Management Systems in Nonferrous Metal Enterprises, and in
Furthermore, the Company is accelerating the development of Yunnan's green aluminum industry by extending its ''Innovation
combination with the Company's actual daily operations, we have established a three-level management mechanism covering
Model'' partnership with Shandong Weiqiao Pioneering Group Co., Ltd. This collaboration further capitalizes on the strengths
the ''Company-department-team'' levels to achieve effective management of water resources, emissions, wastewater, and
of upstream and downstream industrial clusters, enabling expanded production capacity while continuously reducing
waste.
greenhouse gas emissions in operations. These efforts contribute to the green transformation of the aluminum industry.
Short-distance transportation model of molten aluminum • An Energy Management Leadership Group and an Energy Management Office have been
established, with the Deputy General Manager serving as the group leader.
Innovation Short-term
Downstream manufacturing • Responsible for formulating the energy policy and the operational guidelines for the energy
transportation
management system, clearly defining and communicating the responsibilities and
Model
Company Level authorities related to energy management.
Aluminum Aluminum Secondary Emphasis on High-end
liquid ingot aluminum technology alloy • Regularly report to the top management on the progress of work.
• An Energy Management Team composed of members from multiple departments has been
formed.
Shorten the production chain
• Responsible for carrying out energy management work, implementing the energy policy,
establishing, implementing, maintaining, and continuously improving the energy
Traditional Casting Transportation Remelting Casting and management system in accordance with standard requirements, and planning effective
processing
Model
energy management activities.
Department
Aluminum Aluminum Aluminum Ordinary Level • Responsible for monitoring energy performance and conducting compliance evaluations,
liquid ingot liquid ingot
enhancing all employees' understanding of the energy policy and energy objectives.
• Regularly report to the Energy Management Leadership Group and an Energy Management
Office.
Yunnan Innovation Alloy: Short-distance product transportation model
Yunnan Innovation Alloy adopts a ''door-to-door'' procurement model (with a transportation distance of
approximately 2 kilometers), reducing the transportation distance of high-temperature molten aluminum and
eliminating one remelting process. Approximately 70 m? of natural gas can be saved for every 1 ton of high-
temperature molten aluminum utilized. In 2024, Yunnan Innovation Alloy utilized 367,000 tons of high-temperature • Energy management specialists are responsible for daily energy management work,
molten aluminum, which can avoid approximately 56,000 tons of direct greenhouse gas emissions generated from promoting the continuous and effective implementation of energy management within the
the stationary combustion of natural gas.
enterprise.
Team Level
aluminum scrap .
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
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Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Clean Energy Layout Energy Conservation and Emission Reduction Measures
The Company is accelerating the increase in the proportion of clean energy usage and actively intensifying the optimization
and adjustment of its energy structure. By constructing photovoltaic power generation units and supporting the group's Innovation Precision: Energy-saving Effects of Upgraded Combustion Furnace
integrated wind and solar projects, the Company is promoting the application of green energy to a new level. The Company is
This year, in order to effectively improve energy utilization efficiency, Innovation Precision carried out the
vigorously developing photovoltaic power generation projects to drive energy conservation and emission reduction, reduce
transformation of combustion furnaces, replacing ordinary melting equipment with regenerative combustion
production costs, and enhance green energy utilization, thereby achieving comprehensive low-carbon operations.
furnaces. This change accelerates the internal heating rate and increases the recovery rate of waste heat from exhaust
gases, resulting in a reduction of natural gas consumption by about 42%. The Company can save 1.73 million cubic
Renewable Compared with 2024, the Company expects to increase its photovoltaic meters of natural gas annually, which is equivalent to reducing greenhouse gas emission by 3,700 tons.
Energy
Targets installed capacity by 15% in 2025.
The Company has installed a cumulative total of 57.85 MW of photovoltaic power generation Suzhou Chuangtai: Multi-pronged Approach to Promote Energy Conservation in Aluminum Processing
By the end equipment. To further advance energy conservation and emission reduction, Suzhou Chuangtai upgraded and replaced 8 melting
of 2024
furnaces. After the upgrade, the natural gas consumption per ton was reduced from 110 cubic meters to 70 cubic
The annual power generation reaches meters. Additionally, a new paint stripping furnace was installed to pre-treat raw materials (aluminum shavings) by
reduces the gas consumption of the subsequent melting furnaces.
The new production lines at Suzhou Chuangtai mainly use double-chamber furnaces. By modifying the flue, the
The Company has completed the installation of 34.25 MW of photovoltaic equipment in the Company has improved the yield and saved energy consumption in the production process, thereby reducing
This year Shandong region and achieved grid connection for power generation. greenhouse gas emission in the production stage. The Company also constructed a preheating chamber using the
residual heat from the flue. Raw materials enter the preheating chamber for preheating before being fed into the
It is estimated that about 23,853.11 tons of carbon dioxide emissions can be reduced each year. furnace, which helps to reduce energy consumption.
Chuanghui New Material: Grid-Connected Photovoltaic Power Station Innovation Precision: Switching Production Facilities from Gas to Electricity to Reduce Greenhouse Gas Emissions
In 2024, Chuanghui New Material constructed a photovoltaic power station on the roofs of the cable workshop and Innovation Precision has transitioned its production equipment from being fossil fuel-driven to being electrically
conductor workshop, with a construction scale of 3.5MW. It is expected to provide 3.55 million kWh of green electricity powered, thereby enhancing the Company's energy efficiency and reducing greenhouse gas emission. This change
annually. The clean energy generated by the project will be entirely used for the Company's production, effectively also leads to more stable and efficient production, improves product quality and benefits, lowers operating costs and
promoting the Company's high-quality green and low-carbon development. risks, and strengthens the Company's risk resistance capabilities. Moreover, this shift aligns with the global trend of
green development, helping the Company to establish a positive image, enhance brand value and competitiveness,
attract more customers and partners, create more business opportunities, and drive the Company towards a green,
low-carbon, and sustainable direction.
Innovation Metal: Establishing a Stereoscopic Warehouse to Improve Energy Efficiency
In April 2024, Innovation Metal completed the construction and put into use a stereoscopic warehouse. This
warehouse employs a highly automated and standardized high-speed stacker storage method, consisting of a rack
system, stacker system, overhead and floor tracking system, and conveyor system. Based on strategies such as ABC
classification, minimum path planning, and goods-to-person, and in combination with an information management
system, the project has achieved an efficiency improvement of more than three times compared to the traditional
? Photovoltaic Power Station forklift operation method, effectively reducing energy usage.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Building a Low-Carbon Product By optimizing processes and changing materials, the Company has helped customers achieve carbon
Ecosystem neutrality for their first mini-computer. In terms of processes, the Company upgraded the equipment
energy management system, optimized the production line layout, improved production efficiency,
and adopted low-carbon transportation methods to reduce energy consumption and carbon
emissions. In terms of materials, the Company extensively used recycled aluminum alloy, increased
Sector
product's carbon footprint. Ultimately, the Company successfully achieved the carbon neutrality goal,
To effectively promote the construction of a low-carbon product system along the value chain, Innovation New Material has
demonstrating its commitment to green manufacturing and sustainable development capabilities.
clarified the carbon footprint of existing products. By optimizing energy structure and implementing energy conservation and
emission reduction measures, the Company continuously lowers the carbon emissions of its products. The Company provides
downstream industries with high-performance, green, and low-carbon aluminum alloy products and collaborates with the
value chain to explore future trends in low-carbon development.
Industry Collaboration
Assisting Downstream Industries in Carbon Reduction
The Company fully leverages its own strengths to participate in industry collaboration, actively engages in cooperation with
downstream customers to jointly explore carbon reduction opportunities along the value chain, and works with partners to
promote the development of green products, continuously strengthening the green attributes of the industry.
Leveraging the lightweight and low-emission characteristics of its aluminum alloy products, the Company's products are
widely used in pioneering low-carbon transformation industries such as new energy, automotive manufacturing, and 3C
Chuanghui New Material: Participating in the 2024 China (Guangyuan) Green Aluminum Industry
electronics. This significantly reduces the weight of downstream products, lowers their effective energy consumption during
Development Conference
use, and helps reduce carbon emissions throughout their life cycle, enhancing the low-carbon attributes of the products.
In May 2024, the 2024 China (Guangyuan) Green Aluminum Industry Development Conference, themed ''Embracing
Greenness • Aluminum Shapes the Future'', was held in Guangyuan, Sichuan. Jointly organized by the China
Nonferrous Metals Fabrication Industry Association, the People's Government of Guangyuan City, and the
The Company's aluminum alloy products, known for their high strength, lightweight, corrosion
Aluminum Branch of the China Non-Ferromagnetic Metals Industry Association, the conference gathered industry
resistance, and recyclability, are used in key parts such as solar frame, photovoltaic modules, and
leaders and experts. Chuanghui New Material shared its valuable experience in the wide application of aluminum
support structures. Their ability to withstand wind and snow loads enhances the reliability of
alloy cables in the new energy field, as well as in production and quality control, contributing to the effort of
photovoltaic equipment, reduces the risk of structural overload, and expands the application
building a strong country in green manufacturing.
scenarios for rooftop distributed photovoltaics. Compared to steel, the transportation of aluminum
Photovoltaic alloy products significantly reduces carbon emissions. The corrosion resistance of aluminum alloy
Sector extends the equipment's service life, and its high recycling rate and low energy consumption offer
significant environmental advantages throughout its life cycle, supporting the low-carbon
development of the photovoltaic industry.
The Company's aluminum alloy materials are used in the production of automotive trim, sunroof rails,
seats, and battery trays, replacing steel to achieve lightweight goals while meeting performance
requirements. The material reduces the vehicle's weight, thereby lowering energy consumption and
improving vehicle efficiency, aligning with the low-carbon trend of new energy vehicles and
promoting the green upgrade of the automotive industry.
Automotive Lightweighting Weight Reduction Data: The density of aluminum alloy is about
by 30-40%. The reduction in vehicle weight directly lowers fuel consumption and exhaust
Automotive emissions. For every 1% reduction in vehicle weight, fuel consumption can be reduced by 0.6-
Lightweighting 1.0%. For every 100kg of weight reduction, CO₂ emissions can be reduced by about 5g/km. A
Sector
lighter vehicle weight also improves acceleration, handling, and braking performance.
Aluminum forms a dense oxide layer when exposed to air, which effectively prevents the
underlying aluminum from being eroded, thereby enhancing the vehicle's corrosion resistance
and service life. Additionally, aluminum alloy has a high recycling value, which is beneficial for
environmental protection and resource reuse.
? 2024 China (Guangyuan) Green Aluminum Industry Development Conference
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Innovation New Material: Participated in the 19th China International Aluminum Industry Exhibition in 2024 Protecting the Harmony of Natural
The 19th China International Aluminum Industry Ecology
Exhibition in 2024, themed ''Green and Intelligent
Aluminum - Connecting the Globe • Shaping the Future'', Innovation New Material always places As of the end of 2024, the Company has obtained the following Green Factory
brought together high-quality resources from the global environmental protection as a vital part certifications:
aluminum industry and end-user application fields. The of its sustainable development. By
Company showcased the technologies and products of continuously optimizing its
the entire aluminum industry chain, actively promoting environmental management system,
coordinated development between upstream and enhancing its risk management
downstream industries, expanding business capabilities related to the environment, Factories Factories
opportunities, and mapping out a new path for the and improving the management
sustainable development of the global aluminum mechanisms for waste gas, Innovation Suzhou
Shandong Sheet Materials
industry. wastewater, and hazardous waste, the Metal Chuangtai
Innovation New Material was invited to participate and Company ensures compliance and
Innovation Yuanwang Electrical Chuanghui New Innovation
display its latest achievements in the ''green, intelligent, strives to minimize environmental risks. Precision Technology Material Beihai
and digital'' transformation of high-end aluminum alloy Meanwhile, we actively protect
billets, sheets, wires, profiles, as well as 3C electronic biodiversity to achieve harmonious
aluminum alloy materials and automotive lightweight coexistence between the enterprise
aluminum alloy materials. These displays attracted the
? 19th China International Aluminum Industry Exhibition and nature.
Environmental Management System
attention and discussion of experts, scholars, and
industry peers from both domestic and international
circles. Innovation New Material strictly abides by laws and regulations such as the Environmental Protection Law of the People's
Republic of China, the Air Pollution Prevention and Control Law of the People's Republic of China, the Water Pollution
Prevention and Control Law of the People's Republic of China, and the Solid Waste Pollution Environment Prevention and
Control Law of the People's Republic of China. This year, the Company revised the Environmental Protection Management
Carbon Emission Verification and Certification System and established the Environmental Protection Facilities Operation Management System, the Environmental Safety
Hidden Danger Investigation System, the Environmental Hidden Danger Investigation and Management Responsibility
To further optimize the Company's carbon emission management, the Company continuously carries out the certification of System, and the Environmental Management Ledger System to achieve a more standardized and efficient level of ecological
carbon footprint for daily operations and products, gaining a comprehensive understanding of carbon emissions throughout environment management, striving to protect the natural ecological environment. By the end of 2024, 13 factories of
the entire life cycle of products. The work of carbon emission certification not only helps us accurately identify emission Innovation New Material have obtained ISO 14001 Environmental Management System certification, accounting for 87%.
reduction links but also lays a solid foundation for the research and development and promotion of low-carbon products. In
factories received ISO 14064 Greenhouse Gas verification certification. subsidiaries, branches, and their production operations, commercial facilities, products and services, distribution and
logistics, waste management, due diligence, and mergers and acquisitions activities worldwide. The Company also
Certified Entities encourages its customers, suppliers, and internal employees to jointly comply with this statement.
Innovation Metal, Innovation Precision, Shandong Sheet Materials, Yuanwang To effectively implement the environmental management system, the Company has established a three-level management
ISO 14064 structure of '' Leadership Group - Safety and Environmental Department - Subsidiaries''.
Electrical Technology, Chuangfeng New Material, Chuanghui New Material,
Greenhouse Gas
Suzhou Chuangtai, Yunnan Innovation Alloy, Qingdao Liwang, Innovation
Verification Leadership Comprising senior corporate leaders as the group leader and heads of relevant departments as members,
Beihai, Inner Mongolia New Materials, Inner Mongolia Lightweight, Chuangyuan Group responsible for overall planning and decision-making.
Certification Renewable Resources, Inner Mongolia Yuanwang, Hengwang Cable
Safety and
Certified Products Environmental
In charge of the Company's overall environmental supervision, coordination, and management, as well as
handling the ''three simultaneous''5 procedures for construction projects' environmental protection.
Department
Cast aluminum alloy, aluminum alloy cast and rolled coils, cold-rolled sheet
and strip, aluminum alloy foil, aluminum alloy rolling ingot, aluminum alloy
Each subsidiary has established a Safety and Environmental Department, staffed with full-time
ISO 14067 Product hot-rolled coil, aluminum alloy hot-rolled sheet, recycled aluminum alloy environmental management personnel, who conduct regular special inspections for waste gas, wastewater,
Carbon Footprint round ingots, aluminum alloy round ingots, aluminum profiles for tablet Subsidiaries and waste, as well as comprehensive environmental inspections according to the annual environmental
computer casings, aluminum profiles for logistics box plate, aluminum inspection plan. The Company identifies environmental issues in each production link through on-site and
Certification
documentation checks and requires each subsidiary to rectify them within a specified period.
conductor steel-reinforced, enameled aluminum round wire, electrical round
aluminum rod, aluminum alloy profiles, forged bars, battery packs, sill beams,
crash beams simultaneously with the main project.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Environmental Themed Training
The Company regularly conducts training sessions on environmental protection This year Yunnan Innovation Alloy: Organizing Dust Removal Fault, Practical Emergency Drill to Improve Capability
knowledge, covering topics such as newly promulgated environmental laws and
regulations and the study of the Company's environmental protection policies. In May 2024, Yunnan Innovation Alloy organized a ''Dust Removal Fault Emergency Drill''. By simulating a situation
This year, the Company, in collaboration with its subsidiaries, has organized where a dust removal equipment failure leads to excessive exhaust gas emissions or poor dust treatment effects, the
The Company conducted a total of
professional knowledge training on environmental protection to help improve the drill helped relevant personnel to become familiar with the emergency response procedures for abnormal exhaust
management level of dedicated environmental protection personnel and enhance gas emissions, enhancing their ability to respond during incidents and reducing the risk of environmental pollution. It
employees' awareness of environmental protection. This year, the Company also tested the operability of the emergency response plan.
training sessions
conducted a total of 33 environmental protection training sessions, covering
topics such as environmental protection laws and regulations, standardized
management of hazardous waste, emergency response to environmental
emergencies, and prevention and control measures. Over 13,000 employees Over
participated in the training, which significantly enhanced their environmental participated in the training
awareness.
Yunnan Innovation Alloy: Special Training on ''Adhering to the Legal Bottom Line of Environmental
Protection, Safeguarding Green Mountains and Clear Waters, and Blue Skies and Seas''
In March 2024, Yunnan Innovation Alloy organized a special training session themed ''Adhering to the Legal Bottom
Line of Environmental Protection, Safeguarding Green Mountains and Clear Waters, and Blue Skies and Seas'', with a
total of 720 participants. Through systematic study of environmental protection laws and regulations such as the
Environmental Protection Law of the People's Republic of China, skills in identifying and controlling environmental
pollution factors, and procedures for identifying and managing environmental risks and hidden dangers, employees
have enhanced their awareness of environmental protection.
? Dust Removal Fault Emergency Drill
Waste Gas Emission Management
Special Training on ''Adhering to the Legal Bottom Line of Environmental Protection, Safeguarding Green Mountains and Clear Waters, and Blue
Innovation New Material strictly complies with relevant laws and regulations such as the Air Pollution Prevention and Control
?
Skies and Seas''
Law of the People's Republic of China, the Environmental Impact Assessment Law of the People's Republic of China, and the
Regulations on Environmental Protection Management of Construction Projects. The Company also rigorously adheres to
national and local standards including the Integrated Emission Standard of Air Pollutants (GB16297-1996) and the Emission
standard of air pollutants for industrial kiln and furnace (GB9078-1996). We have established a management system for waste
Environmental Risk Management gas treatment facilities and actively promoted the performance grading management of air pollution prevention and control in
The Company strictly abides by relevant laws and regulations such as the Emergency Response Law of the People's Republic key industries. The Company has formulated a ''one factory, one policy'' implementation plan and successfully completed the
of China and the Administrative Measures for Emergency Response to Environmental Incidents, and has established the assessment of four enterprises at performance level B.
General Solid Waste Management System, the Dangerous Waste Pollution Prevention and Control Responsibility System, the To achieve efficient waste gas emission management, the Company has built a systematic environmental protection facility
Emergency Response Plan for Sudden Environmental Incidents, the Environmental Safety Hidden Danger Investigation management system that covers the entire process. This includes standardized operating procedures, dynamic management
System, and the Environmental Hidden Danger Investigation and Management Responsibility System. The Company has also ledgers, safety risk grading assessments, and periodic inspection and maintenance mechanisms. Meanwhile, the Company has
set up an environmental monitoring system and implemented standardized monitoring programs. Adhering to the principle of implemented intelligent upgrades and process optimization of environmental protection facilities based on the process
''prevention first, minimizing harm, unified command, and division of responsibilities'', the Company has arranged for the characteristics and pollution discharge features of each plant, significantly enhancing the efficiency of waste gas purification.
Safety and Environmental Department at the headquarters to oversee the overall management of environmental risk source With regard to the operation site located in Binzhou area, the emission concentrations of particulate matter, sulfur dioxide,
identification, assessment, and emergency plan formulation. Online monitoring systems have been installed at some key and nitrogen oxides are all significantly lower than the national standards. Specifically, the particulate matter emission
locations to achieve dynamic supervision of pollutant emissions, ensuring timely detection and handling of sudden incidents. concentration is 96% lower than the national standard, the sulfur dioxide emission concentration is 87% lower than the
This year, the Company has not experienced any major environmental violations. national standard, and the nitrogen oxides emission concentration is 90% lower than the national standard.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
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Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Provisions for Newly-Built
Water Resource Management
Emission Concentration
Pollution Sources under the
Types of Air Pollutants Limits Fully Achieved by the The Company places great emphasis on the efficient utilization and pollution prevention of water resources, strictly adhering
Integrated Emission Standard of
Company to relevant laws and regulations such as the Water Law of the People's Republic of China, the Water Pollution Prevention and
Air Pollutants (GB16297-1996)
Control Law of the People's Republic of China, and the Regulations on Water Conservation. The Company has established a
Water Resource Management Plan with a focus on water conservation and efficiency enhancement. The Company's water
Sulfur Dioxide (SO₂) 240 mg/m? Within 50 mg/m? supply mainly comes from the municipal water pipeline network and is primarily used for daily office operations, canteen
catering, fire emergency purposes, and manufacturing. Some subsidiaries utilize Yellow River water for manufacturing.
Nitrogen Oxides (NO?) 550 mg/m? Within 100mg/m?
Conservation and Recycling
To effectively strengthen internal water resource management, the Company has set up a Water Resource Management
Particulate Matter (PM) 120 mg/m? Within 10mg/m?
Leadership Group, clarifying responsibilities at the senior management level and working with production, equipment,
procurement, and other departments to comprehensively identify key water usage stages and potential waste points. The
Company vigorously promotes the implementation of water-saving measures through equipment upgrades and process
optimization. The Company continuously enhances employees' water conservation awareness and implements water
Process/Technology Optimization Measures Improvement Achievements recycling management measures, ensuring normal operations and hygiene safety while continuously advancing the refined
management of water resources. This year, Innovation Metal achieved a water recycling rate of 99.6%, and Innovation
Utilizing clean natural gas as fuel
entirely, increasing the area of the Precision achieved a water recycling rate of 99.8%.
Effective collection rate of unorganized
Melting Process furnace door gas collection hood and
waste gas reaches 99.5% This year, Inner Mongolia New Material has already met its 2024 target of not exceeding 0.5 cubic meters of water per ton of
the diameter of the main flue, and
enhancing the fan airflow aluminum, with an actual water usage of 0.48 cubic meters per ton of aluminum.
Employing a full oil recovery and
Rolling Process purification system for waste gas
Purification efficiency of oil mist and Inner Mongolia New Material has set a keep water usage below 0.47 cubic
treatment
smoke reaches over 95% water resource management goal for 2025： meters per ton of aluminum.
Using low-pressure pulse high- PM treatment efficiency reaches over
Dust Removal Technology
efficiency bag dust collectors entirely 99.7%
Enhancing Water Conservation Awareness
Innovation Metal: Low-Pressure Pulse High-Efficiency Dust Removal , Firmly Guarding a Blue Sky
• Post ''Save Water'' signs around water facilities to highlight the importance of water conservation and encourage all
To enhance the efficiency of waste gas treatment in the production workshop, Innovation Metal upgraded the dust employees to practice water-saving measures.
removal facilities for production lines 1 and 2. The ''original cyclone + bag dust removal system'' was replaced with a
low-pressure pulse high-efficiency bag dust removal system. This upgrade significantly improved the dust removal
efficiency, with particulate matter (smoke dust) emission concentration reduced to below 5 mg/m?.
Emergency
Optimizing Production for Measures and
Water Conservation Contingency Plans
• Select valve products for each water outlet that features • Form an emergency response team and clarify the
manual or automatic opening/closing and control of water responsibilities and tasks of each member in the
flow. event of sewage leakage and emergency
treatment.
• Implement 100% recycling of cooling water used in the
aluminum alloy production process. • Stockpile necessary emergency supplies, such as
emergency ponds, pumps, sandbags, and hoses,
Upgrade the pure water preparation system to increase its
to ensure they can be quickly deployed in the
•
efficiency from below 50% to over 70%, thereby reducing the
event of a water resource incident.
consumption of fresh water.
Develop an emergency drill plan and organize at
After treatment at the wastewater treatment plant, some
•
least one practical exercise per year to test and
•
production wastewater or reclaimed water is reused in the
enhance the coordination and response speed of
original production processes. For example, wastewater
the emergency response team.
generated from anodizing is treated and reused, achieving
? Low-Pressure Pulse High-Efficiency Dust Remover an annual water savings of approximately 1,100 tons.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Water Resource Risk Assessment
The Company strictly implements the ''Three Lines and One List'' policy requirements of its operational locations. There are no Three-level Management Structure: ''Leadership Group - Safety and Environmental Department - Departments''
drinking water sources within the scope of the construction project locations. The Company does not involve any special
protection zones or other groundwater environmentally sensitive areas related to groundwater environments set by the
national or local governments. The Company is also not located in the recharge runoff areas outside the quasi-protected Waste
zones of centralized drinking water sources or in the areas of decentralized drinking water sources. The Company's industrial Management Comprising senior corporate leaders as the group leader and heads of relevant departments as
water use is entirely sourced from municipal water networks and Yellow River alternative water, with enhanced water use Leadership members, this group is responsible for overall planning and decision-making.
control. Additionally, the Company has developed a groundwater monitoring plan and regularly conducts groundwater Group
monitoring.
This year, subsidiaries such as Innovation Precision and Inner Mongolia New Material have actively carried out water resource
risk assessments. They have analyzed and evaluated water resource risks by considering dimensions such as the geographical
location of the factory area, surrounding surface water systems, and water sources. They have also formulated water resources Safety and
This department oversees the unified supervision of the implementation of environmental
risk assessment report to conduct production and business activities on the premise of protecting the environment of water Environmental
policies and systems.
sources. Department
Wastewater Discharge Management
The Production Department is Responsible for reducing waste at the source and improving
The Company complies with laws and regulations such as the Water Pollution Prevention and Control Law of the People's
•
the classification, collection, and storage of waste.
Republic of China and the wastewater discharge standards of its operational locations. Based on the characteristics of its
process flows, the Company takes various measures to treat and recycle wastewater in compliance with regulations, thereby • The Safety and Environmental Department oversees daily management responsibilities,
reducing wastewater discharge. formulating relevant policies, monitoring the implementation of these policies, conducting
Responsibilities training and education, and managing and centrally disposing of waste during the closed
After coagulation, sedimentation, filtration, and disinfection treatment , production wastewater is reused for toilet flushing of Departments transportation process.
•
and landscape irrigation, reducing the waste of water resources. in Subsidiaries
The Warehouse Department is responsible for waste management during the storage
Domestic sewage is treated through grease traps and septic tanks to meet the discharge standards before being
•
process.
•
discharged via the municipal sewage pipe network, thereby minimizing the impact on the surrounding environment and
protecting the natural ecology. • The Management Department oversees waste disposal in office areas and publicity and
education efforts.
Waste Management
The Company strictly adheres to the Law of the People's Republic of China on the Prevention and Control of Environmental
Pollution by Solid Waste, establishing a well-structured three-tier management framework consisting of a ''Leading Group, General Solid Waste Management
Safety & Environmental Protection Department, and Subsidiary Execution Departments.'' The Company has formulated the
General Solid Waste Management System and implemented measures such as optimizing processes and upgrading The general solid waste generated by the Company mainly includes waste aluminum profiles, waste aluminum billets, waste
production equipment to reduce waste generation at the source. Meanwhile, the Company has designated fixed storage sites aluminum shavings, sludge, and domestic waste from the production process. The Company takes the following measures to
and specified clear requirements for the classified storage of recyclable and non-recyclable solid wastes, enhancing the fully and reasonably utilize solid waste resources:
recycling and resource utilization of solid wastes. The Company endeavors to comprehensively recycle waste materials
generated during production, including scraps, non-conforming products, aluminum scraps, and packaging materials, to the
greatest extent possible. Additionally, the Company's main business does not involve mineral processing or tailings ponds.
In 2024
The Company has both set and achieved the following waste management targets, and concurrently established them as its The casting workshop reuses Qualified third-party entities The domestic waste generated
waste management objectives for the year 2025: waste aluminum shavings, are responsible for the within the factory area is
waste aluminum profiles, transfer, transportation, and uniformly collected and then
Compliance rate for the disposal of Rate of non-outbound of general solid waste (aluminum shavings, scrap, aluminum waste aluminum billets, and reuse of the generated sludge. regularly cleared, transported,
hazardous waste blocks) from the site other aluminum scrap . and disposed of by the relevant
sanitation department.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Optimizing Production Material Recycling to Promote Solid Waste Resource Circulation Hazardous Waste Management Source Reduction Measures Classification, Storage, and
System Construction for Hazardous Waste Minimization Management
Shandong Sheet Materials optimizes the recycling of production materials, promoting the reuse of solid waste Establish a hazardous waste Improve the aluminum dross Store hazardous waste according
resources. In 2024, Shandong Sheet Materials reused 66,187.53 tons of waste trimmings and other waste materials management team with the separation process to reduce its to its hazardous characteristics.
generated during the production process, 4,820 waste wooden pallets, and 893 waste paper sleeves. Qingdao Liwang general manager as the leader generation and achieve source Upgrade production equipment
reused 174,300 plastic pallets in 2024, reducing the generation of general solid waste. and the deputy general manager reduction of hazardous waste. and processes to achieve resource
in charge of production as the recovery and minimization of
deputy leader. Members include solid waste, striving for ''zero
In 2024，Shandong Sheet Materials In 2024, Qingdao Liwang the heads of production landfill''.
workshops and departmental
divisions. This team reinforces the
Reused Reused Reused responsibility for hazardous waste
Reused
management and implements a
closed-loop management system
from generation to disposal.
of waste trimmings and paper sleeves plastic pallets
wooden pallets
other waste materials
generated during the
production process
Circular Economy Approach Environmental Facility Compliance in Hazardous
to Hazardous Waste Disposal Hazard Screening and Patrol Waste Disposal and Transfer
Inspection
Select disposal units with Develop a system for hazard Based on the prescribed plan,
comprehensive utilization screening and patrol inspection of entrust qualified third parties to
qualifications to maximize the environmental facilities. Conduct handle hazardous waste disposal,
Hazardous Waste Management value of waste utilization and regular inspections and establish ensuring 100% compliance.
promote the circular economy. operation and maintenance
The Company strictly complies with relevant laws and regulations, as well as national standards, such as the Solid Waste This includes using pyrolysis records to ensure the efficient and
Pollution Prevention and Control Law of the People's Republic of China and the Standard for Pollution Control on Hazardous technology to treat oily normal operation of
Waste Storage (GB 18597—2023). The Company has established systems including the Hazardous Waste Inbound and diatomite, separating oil and soil environmental facilities.
Outbound Management System, the Environmental Pollution Prevention and Control Responsibility System for Hazardous for use as building raw materials;
Wastes, and the Hazardous Waste Management Responsibility System. The Company has also developed a hazardous waste and mixing aluminum dross with
management plan and ledger. The Company conducts a comprehensive assessment of hazardous wastes and stores them calcite to synthesize calcium
according to the characteristics of each category, implementing standardized management. aluminate in a rotary kiln,
producing deoxidizer for
steelmaking.
In 2024
Protecting Biodiversity
We generated We recognize the importance of ecosystems and are committed to preserving their integrity and biodiversity. To protect the
diversity of ecosystems, we will take measures to reduce our impact on them, including safeguarding primates and other
endangered species, as well as preserving biodiversity in natural habitats and protected areas.
resource recovery and comprehensive utilization
All of the Company's construction projects comply with national and local ecological protection red line plans and the ''Three
Lines and One List'' policy requirements. We adhere to the requirements of the Ministry of Ecology and Environment's Notice
on Strengthening Environmental Impact Assessment Management with the Core Objective of Improving Environmental
The Company's production and business operations generate hazardous wastes such as waste oil, aluminum dross, dust Quality. Our projects neither involve ecologically sensitive areas such as national parks, nature reserves, World Natural
collector ash, waste emulsion, and waste cutting fluid. To achieve effective resource recovery and utilization, the Company has Heritage sites, natural parks, and ecological protection red lines, nor contravene the environmental quality baseline and
implemented the following hazardous waste management measures: resource utilization cap requirements, and are not included in the negative list for environmental access.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
In the era of technology-driven development, Innovation New Material is committed to
vigorously building an innovation and R&D system, strengthening intellectual property
management, and implementing intelligent production. We are also dedicated to
comprehensively enhancing the Company's innovation capabilities. Furthermore, we
continuously strengthen fine quality control throughout the entire process. By
precisely controlling product quality and continuously optimizing customer service,
we are committed to supporting quality improvement and innovative development.
Leading with
Technology, Driving
Innovation Together
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Innovation Led by Technology In 2024, the Company's subsidiaries achieved the following
Empowerment accomplishments in product and technological innovation：
• Innovation Precision has been recognized as a High-tech Enterprise .
• Innovation Metal's high-strength and high-toughness aluminum alloy round
The Company adheres to the development concept of ''Innovation Shapes the Future'', empowers enterprise growth with ingots have passed national patent-intensive product filing and recognition.
science and technology, and leads enterprise development with innovation. We continue to promote patent development,
• Innovation Metal has been ranked in the top 50 in the Shandong Province-wide
actively participate in scientific research projects and the formulation of new technical standards, strengthen the cultivation of
Innovation Enterprise Competition.
innovative talent, and promote intelligent manufacturing. These efforts aim to comprehensively improve the Company's
innovation ability and the transformation of technological achievements, injecting strong kinetic energy for the Company's • Suzhou Chuangtai has been recognized as a ''2024 Provincial-Level Enterprise
rapid growth and the development of the industrial chain. In addition, by integrating ethical standards into the entire R&D Technology Center''.
process, the Company strengthens risk prevention and control, to ensure that scientific and technological innovation is • Innovation Precision has been honored as a ''Shandong Province Industrial
compliant and controllable. Design Center''.
Innovation and R&D System
The Company places great emphasis on and is committed to strengthening the construction of its innovation system. In order
to effectively integrate the Company's technical resources and comprehensively enhance its core technological
competitiveness, the Company has established the Innovation Alloy Research Institute. This institute coordinates the
Company's major professional technical fields, deeply integrates cross-departmental R&D resources and information, and
achieves comprehensive sharing and collaborative development of technological capabilities and innovation platforms,
providing strong technical support for the Company's sustainable development. Key Science and Technology Projects
To further enhance the efficiency of innovation and R&D, the Company has established a series of policies, including the The Company has consistently deepened its industry-academia-research collaboration and
Management Measures for Science and Technology Projects, the Management Measures for Science and Technology actively participated in local and national key science and technology projects. The Company's
Incentives and Achievement Review, and the Management Measures for Scientific Research Funds. These policies form a research and development projects have been approved and supported by the Shandong
comprehensive R&D management system that covers the entire process from project application and initiation to process Province's Key R&D Program:
control and final assessment. The Company continues to refine the mechanisms for scientific research project management,
fund utilization, and talent incentives. Through the Company-wide Innovation Management System and the Technical
Innovation Award Management System, the Company has clarified the standards for innovation incentives. The Company also
implements labor competitions that prioritize innovation and excellence, as well as cultural and sports activities, to inspire all
employees to participate in innovation for production and operations.
The Company has been awarded as the ''Model Worker Innovation Studio'', the ''Academician Workstation of Shandong
Province'', the ''New-type R&D Institution of Shandong Province'', the ''Postdoctoral Research Practice Base of Shandong This year, Innovation Metal, leveraging its This year, the Innovation Alloy Research Institute,
Province'', the ''Enterprise Technology Centre of Shandong Province'', and the ''Shandong Engineering Research Centre for Shandong Province Academician Workstation, leveraging its status as a New-type R&D Institution
New Aluminum Alloy Materials with Ultra Strength and High Toughness''. In collaboration with leading academic institutions collaborated with Shandong University and Qilu of Shandong Province, partnered with the
such as Shandong University and Central South University, the Company has strengthened industry-academia-research University of Technology to apply for the Shandong Shandong Academy of Sciences Institute for New
integration to drive scientific innovation and talent development. Province's Key R&D Program (Competitive Materials, Innovation Metal, and Innovation
Innovation Platform) project titled ''R&D of Rare- Precision to successfully apply for the Shandong
Earth Microalloyed 6 Series Aluminum Billet Province's Key R&D Program (Competitive
Processing Technology Without Homogenization Innovation Platform) project titled ''Research and
By the end of 2024, Treatment''. The project has passed the review of Industrial Application of Large-Diameter Thin-
the Shandong Provincial Department of Science Walled Aluminum Round Tube Manufacturing
and Technology and has been approved and Technology for Air Suspension Air Tanks''. The
Had a total of 537 authorized patents, including 62 invention patents, 475 utility model patents supported by the Shandong Province's Key R&D
Program.
project has been approved and supported by the
Shandong Province's Key R&D Program.
Had a total of 87 new patents, including 14 invention patents, 73 utility model patents
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Standard Development Talent Innovation
The Company actively participates in the development of technical standards, strengthening the layout of standards in key The Company places great emphasis on the cultivation of technical innovation talent and has established the Enterprise
areas such as high-end alloy manufacturing, recycled aluminum manufacturing, and green manufacturing. We have been Management System for Full-Staff Innovation. We actively carry out multi-dimensional talent training programs to enhance
engaged in the formulation and revision of multiple national and group standards, contributing to the high-quality employees' independent innovation capabilities. The Company organizes diverse innovation activities and holds labor
development of industry technology. This year, the Company actively participated in the formulation and revision of standards competitions for striving to be pioneers and excellence. We endeavor to build an innovation culture involving all employees
related to recycled aluminum, green and low-carbon aluminum, wrought aluminum, and the evaluation index system for clean and encourage and inspire their enthusiasm for innovation. To further foster an innovative and proactive working atmosphere,
production. The Company has been recognized for its significant contributions to the national non-ferrous metal the Company has formulated the ''Implementation and Reward System for Improvement Proposals,'' encouraging all
standardization work. In the future, the Company will vigorously advance the research and compilation of technical standards, employees to propose improvement plans related to their job responsibilities. These proposals are summarized and reviewed
continuing to drive and lead the high-quality development of the industry. In 2024, some of the Company's participation in the on a monthly basis, and quarterly rewards of varying standards are granted for proposals that are adopted.
development and revision of standards:
One national standard titled GB/T 6519-2024 Non-destructive Testing Method for Ultrasonic Inspection of Wrought Aluminum
and Magnesium Alloy Products. In 2024, Innovation Metal, Innovation Precision, and Yuanwang Electrical Technology were
respectively recognized as a ''Shandong Province Full-Staff Innovation Enterprise'', a ''Talent-
Two industry standards related to Two Standards for Aluminum Alloy Wire Used as Grain Refiners for Aluminum and Aluminum Leading Enterprise'', and a ''Pioneer Enterprise in Talent Work''. Additionally, individuals from
Alloys. The Company was awarded the Second Prize and Third Prize in the National Non-Ferromagnetic Metals Technical
Innovation Metal were honored with titles such as Shandong Province Technical and Skilled
Standard Excellence Award for these contributions.
Master, Taishan Industry Leading Talent (Enterprise Innovation Category) , and Outstanding
The Company participated in the revision of two group standards titled T/CNIA 0245-2024 Guidelines for Green and Low-Carbon Engineer for Shandong Binzhou' s Global and National ''Champion Products''.
Aluminum Evaluation with Traceability Guidance and T/CNIA 0232-2024 Cleaner Production Evaluation Index System for Wrought
Aluminum and Aluminum Alloy Ingot Industry.
The Company revised the Development and Promotion of National Standards Series for Secondary Aluminum Feedstock, for
which it was awarded the Second Prize in the China Non-Ferromagnetic Metals Industry Science & Technology Award.
Innovation Metal: Co-organized National Standard Seminar to Promote High-Quality Industry Technology Shandong Sheet Materials: Launches ''Innovation & Breakthrough'' Improvement Proposal Initiative to
Development Foster Company-Wide Innovation Culture
In March 2024, the National Standard Seminars on several national standards, including ''Recycled Deformable To foster a culture of innovation across the organization, Shandong Sheet Materials launched the ''Innovation &
Aluminum Alloy Ingots'' and ''Recycled Casting Aluminum Alloy Ingots'', were successfully held in Zouping. These Breakthrough'' improvement proposal campaign this year. The proposals covered areas such as process
seminars were hosted by the National Technical Committee for Standardization of Non-Ferromagnetic Metals and co- optimization, equipment automation, cost reduction and efficiency improvement, quality enhancement, as well as
organized by Shandong Innovation Metal Technology Co., Ltd. A total of 50 representatives from 34 leading aluminum improvements in safety and production environment. These initiatives have played an important role in promoting
processing enterprises and research institutes across the country participated in the discussions. Co-organizing the the Company's continuous improvement. In September 2024, Shandong Sheet Materials held a commendation
National Standard Seminars demonstrates the Company's high regard for the formulation and revision of technical ceremony for the winners of the ''Innovation & Breakthrough'' improvement proposal campaign. The Company's
standards and reflects its ongoing efforts to collaborate with multiple parties to continuously improve industry management encouraged all employees to actively participate in the ''Innovation and Breakthrough'' activities,
technical standards. aiming to foster a culture of innovation and continuous improvement among all employees, thereby propelling the
Company's innovative development.
? Co-organized National Standard Seminar ? ''Innovation and Breakthrough'' Improvement Proposal Commendation Ceremony
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Inner Mongolia Lightweight：Launches ''Company-Wide Improvement'' Initiative to Stimulate Employee Aspects Actions Concrete Measures
Creativity
• Establish a dedicated office for the protection of trade secrets, responsible for formulating
To fully mobilize the enthusiasm and creativity of all employees, Inner Mongolia Lightweight has established a ''Full- trade secret confidentiality systems and non-compete agreements for Company employees.
Staff Improvement'' project team and organized ''Full-Staff Improvement'' activities. Inner Mongolia Lightweight • Classify trade secrets into different security levels and establish usage rights. Sign
received a total of 59 proposals from various departments and workshops. These proposals covered multiple aspects, confidentiality and non-compete agreements with employees who handle sensitive
including production site improvements, quality enhancement, efficiency improvement, tooling and molds, Trade information.
packaging and transportation, office supplies, personal protective equipment, waste reduction, recycling of scrap Secret Protection • Establish a dedicated Information Technology Management Department to ensure the
Company's information security through confidentiality management and technical encryption
materials, and energy consumption reduction. Through the ''Full-Staff Improvement'' activities, the Company is able
measures.
to identify ''sources of waste'', ''sources of problems'', ''sources of value'', and ''sources of improvement'' in its Process
Management • Implement customer data access controls, utilizing data encryption and two-factor
operations. These activities help drive the Company's high-quality development. authentication technology to protect customer privacy.
• The Technology Center conducts strict reviews, approvals, and searches before the initiation of
new product projects, proceeding only after assessment.
Project Initiation • Monitor the generation and protection of intellectual property throughout the R&D process.
Approval and
Monitoring • Conduct pre-release approval for new project information to ensure intellectual property
compliance.
• Categorize and file all types of documents, ensuring confidentiality and controlled access.
• The Human Resources department conducts background checks and communicates with key
personnel and individuals with access to confidential information who are being recruited.
Key Personnel • Sign Non-Disclosure and Non-Compete Agreements with technical and quality personnel,
Management conduct intellectual property exit interviews with departing personnel who had access to
confidential information, and document the discussions in Employee Exit Interview Records.
• Effectively control the risk of disclosure of technical and economic intelligence.
Personnel
Management • Integrate intellectual property management and protection training into the annual training
plan, which is divided into two parts: external training and internal training.
Employee
''Full-Staff Improvement'' Summary and Award Ceremony • External training: Relying on relevant departments to offer training programs for enhancing
training and
?
intellectual property management, and inviting experts to give specialized lectures.
awareness
enhancement • Internal training: Organizing employees to participate in special enhancement activities and
technical business training focused on the creation, utilization, and protection of intellectual
property.
The Company encourages technical talents to actively participate in innovation and entrepreneurship competitions. This year, • During project collaboration, we specify the allocation of intellectual property rights among the
individuals related to Innovation Metal were honored with the Excellence Award in the 2024 China Shandong (Post)doctoral parties involved and their confidentiality obligations through contracts.
Contract
Innovation and Entrepreneurship Competition and the Second Prize in the ''Win in Binzhou'' High-Level Talent Innovation and Management • Continuously monitor the intellectual property status of the cooperating party during the
Risk
Entrepreneurship Competition. collaboration period, take immediate remedial measures upon discovery of any breach, and
Prevention and
terminate the cooperation if necessary.
Control
• Establish a dedicated department to provide legal consulting services on intellectual property
Risk Consulting issues arising in operations, and assist other departments in conducting daily intellectual
property management tasks.
Intellectual Property Management
Innovation New Material strictly complies with the Civil Code of the People's Republic of China, the Patent Law of the People's
Digital Intelligence-Driven Transformation
Republic of China, and the Trademark Law of the People's Republic of China, among other laws and regulations. The Company
has established the Patent Management System and the Intellectual Property Protection Control Procedures to actively
improve the intellectual property management system, give full play to the significant role of intellectual property in the
Company's development process, continuously enhance the capabilities of independent innovation and the utilization of
intellectual property, and, at the same time, refrain from infringing upon others' patents, trademarks, copyrights, and other
The Company has deeply restructured its production management system using cutting-edge digital technologies, committed
intellectual property rights.
to building a first-class benchmark factory featuring ''Operational Excellence + Intelligent Manufacturing.'' This year, through
We have established a Leadership Group for Intellectual Property Management and an Office for the Protection of Trade the implementation of a systematic digital upgrading project, including the deployment of an enterprise-level resource
Secrets to ensure the orderly conduct of intellectual property management work. Through training employees on intellectual planning system (ERP), the establishment of a refined cost management system, the advancement of intelligent upgrades to
property management and protection, and trade secret protection, implementing specialized management of key personnel, the manufacturing execution system (MES), and the reliance on digital transformation measures such as industrial
and strengthening contract risk management, we continue to improve our intellectual property management system and collaborative data acquisition, the Company has significantly enhanced its operational efficiency and decision-making
enhance the protection and management of intellectual property. accuracy, driving the enterprise towards lean and intelligent transformation and upgrading.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
QMS operation management system, achieving standardized quality management
Production Process Optimization: Data-Driven Decision-Making:
The Company has implemented the QMS operation management system and achieved digital and automated quality
By leveraging digital methods, the The Company has established a data control through deep integration with MES. This has established a trinity of digital quality encompassing ''prevention-
Company has achieved automation, platform to collect, analyze, and utilize control-improvement'', enabling real-time data monitoring and early warning.
intelligence, and transparency in the production data, providing precise
production process, thereby enhancing decision-making support for The Company has established a closed-loop quality traceability system covering the entire production process from
production efficiency and quality. management. raw materials to finished products through the system: At the raw material stage, inspection tasks are automatically
triggered with dynamically correlated results to establish an intelligent inspection mechanism. During production, real-
time equipment parameter monitoring is implemented through MES, while QMS simultaneously analyzes defect root
causes and provides feedback for process parameter optimization, enabling embedded quality control. For finished
products, the MES drives automated inspection equipment, and the QMS obtains data in real-time to generate quality
Supply Chain Collaboration: Customer Service Innovation:
dashboards and inspection reports. The Company integrates MES-QMS data to build predictive models, enabling
The Company strengthens cooperation By utilizing digital tools, the Company quality early risk notification and continuous iteration of process parameters. This forms a data-driven intelligent
with upstream and downstream enhances the customer service manufacturing optimization system, providing core support for the Company's transition to Industry 4.0.
enterprises to achieve real-time sharing experience and increases customer
and collaborative management of loyalty.
supply chain information.
Innovation Metal: Establishing a Stereoscopic Warehouse to Optimize Spatial Utilization and
This year, the Company has effectively strengthened its full-lifecycle management capabilities for data assets by building a Operational Efficiency
new data-driven industrial model and promoting the digital upgrading of production operations. The Company has Innovation Metal has implemented an automated and
systematically advanced the integrated innovation of equipment interconnection, process optimization, and intelligent intelligent stereoscopic warehouse, significantly
decision-making, laying a solid foundation for the construction of an interconnected and intelligent industrial ecosystem. In improving logistics efficiency and space utilization. The
this year, several subsidiaries have obtained digital intelligence-related certifications: stereoscopic warehouse utilizes robotics, conveyor
systems, and stacker cranes, integrated with
computerized management and advanced algorithms
• Shandong Sheet Materials has been successfully selected as a ''Municipal Digital Workshop for to optimize storage and material handling paths,
operational efficiency and accuracy. Moreover, the real-
• Yuanwang Electrical Technology, Chuangyuan Renewable Resources, and Hengwang Cable time monitoring and data analysis functions assist
have been included in Shandong Province's ''Morning Star Factories'' for the digital economy. management personnel in optimizing inventory levels,
• Inner Mongolia Lightweight has been selected as one of the ''2024 Autonomous Region Digital increasing turnover rates, and reducing costs. The
Workshop and Smart Factory''. vertical storage design of the stereoscopic warehouses
achieves a space utilization rate of 70% to 90%, which is
much higher than that of traditional warehouses. By
optimizing the layout with multi-level racks and
automated equipment, the warehouses enable fast and
accurate storage and retrieval of goods.
SAP Implementation for Precision Business Management
This year, we implemented SAP software, integrating its advanced management concepts with our Company's
management practices to enhance precise business operations and digital transformation. The SAP software has
been successfully implemented at Suzhou Chuangtai, QingDao Liwang, and Inner Mongolia Lightweight. It seamlessly
integrates modules such as finance, supply chain, production, and sales, creating a unified data source. This
integration eliminates data redundancy and conflicts, thereby enhancing cross-departmental collaboration efficiency.
Moreover, by leveraging the standardized process templates built into SAP, the Company can standardize various
business processes, accelerating the digital transformation of the enterprise. Furthermore, SAP's preconfigured legal
and tax compliance modules support multilingual and multi-currency operations, automatically handling exchange
rate conversions and tax regulations. This facilitates localized operations for multinational enterprises and lays the ? Stereoscopic Warehouse
technical foundation for future overseas projects.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
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In addition, in accordance with the requirements of the ISO 9001 Quality Management System, the Company has developed
Precision Control Ensures Quality the Integrated Management Manual. This manual is applied across various stages, including market development, order
review, advanced product quality planning, process design, procurement, production, inspection, delivery, and service, to
further enhance the level of quality management.
By the end of 2024, 93% of the factories have obtained the ISO 9001 Quality Management System certification, with the
certification covering 100% of products. A total of 11 subsidiaries have acquired the IATF 16949 Automotive Industry Quality
Management System certification, covering 15% of their respective product ranges.
The Company adheres to the quality management concepts of ''customer orientation, total employee participation, and
continuous improvement '', implementing the quality approach of ''putting quality first, seeking continuous improvement,
complying with the law, and serving customers''. We have established a robust quality management system, enforcing precise
and stringent product quality controls throughout the entire production process, and are committed to delivering products of Full-process Precision Quality Control
exceptional quality. This year, the Company has not experienced any major safety or quality-related incidents concerning its
products and services. The Company adheres to the lean production concepts and continuously advances standardized quality management
throughout the entire process. Based on the standardized system, the Company constructs a closed-loop quality control
This year, the Company has achieved system covering the entire process from ''incoming, in-process, and outgoing'' through technological upgrades and innovative
remarkable results in the field of methods. Meanwhile, we strengthen supply chain collaboration and data-driven decision-making. Ultimately, this approach
quality, which have been recognized by achieves a comprehensive improvement in quality stability, production efficiency, and customer satisfaction, ensuring the
the industry. Innovation Metal has stability and reliability of product quality and enhancing the overall quality level of products.
been honored with the national title of
This year, in order to comprehensively enhance the quality management level of raw materials, the Company has
''Manufacturing Single Champion
implemented precision controls from three major dimensions: sampling inspection system, internal control standards, and
Enterprise'' and the title of
supplier management. By integrating dynamic sampling rules with internal control standards, potential defects can be
''Outstanding Supplier in Aluminum
anticipated and inspection resource allocation can be optimized, significantly reducing the impact of raw material quality
Processing Industry''. Innovation
Innovation Metal Honored as National Innovation Metal Honored as ''Outstanding fluctuations on production stability. Meanwhile, Innovation Precision has introduced advanced quality management tools
Precision has received the Shandong ''Manufacturing Single Champion Enterprise'' Supplier in Aluminum Processing Industry'' such as SPC (Statistical Process Control), established an SPC project team, and carried out special improvements for quality
Province Quality Benchmark Award
issues.
and the title of ''Key Cultivation
Enterprise for High-End Brands in
Shandong Province''.
Quality Management System
The Company places high importance on the construction of the quality management system. We have established internal
Sampling
procedures related to quality management and formed a two-tier management structure consisting of the Quality inspection
Management Center and the Quality Management Departments of subsidiaries. We have also clarified the quality management system
requirements for different positions to ensure the implementation of quality management measures.
Quality Coordinates the Company's quality management, formulates quality
Management management policy, and supervises the quality management performance of
Center business units.
Internal
Supplier
control
Quality management
standards
Management Implement quality management in all aspects, including quality control,
Department of quality improvement and quality assurance.
Subsidiaries
Ensure the effective implementation of quality management measures across
Quality four key areas: quality control, quality engineering, document control center,
Management and quality assurance; implement the quality planning developed by the
Positions Company; participate in quality performance assessment and training;
accomplish quality management objectives.
Fine-Grained Control over the Quality of Raw Materials
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To promptly identify and resolve quality issues and reduce the rate of non-conforming products, we have further refined and
clarified the quality standards for each stage, including incoming, in-process, and outgoing.
Hazardous substance control
We always focus on customer needs and drive the upgrade of harmful substance management capabilities across the supply
Incoming quality inspection chain by conveying clear raw material environmental standards and quality requirements to suppliers. By the end of 2024, the
number of our subsidiaries that have obtained the QC080000 Hazardous Substance Process Management System Certification
Clarify the requirements for quality measurement tools, This year has reached 6.
inspection equipment, inspection standards and inspection
Innovation Precision revised the Incoming Quality
methods, standardize the procedures for dealing with In accordance with legal requirements and customer demands, we continuously conduct assessments of potential health and
Inspection Operation Procedures for Raw and Auxiliary
anomalies, and emphasize the responsibilities of relevant safety risks associated with the production and use of our products. We carry out evaluation work that covers raw material
Materials, clarified the execution standards for aluminum
inspection personnel, so as to improve the accuracy, inspection, in-process inspection, finished product inspection, and by-product testing during the production process, to
ingots, added acceptance standards for magnesium
standardization and consistency of inspection. provide products that meet the testing standards of all parties.
ingots, and standardized the inspection equipment, tools,
and abnormality handling processes to ensure the
controllability of raw material quality.
In-process quality inspection
Process Control Measure Compliance Standard
Emphasize the continuous quality control in the production This year
Raw material The Company has commissioned third-party agencies to conduct HSF (Hazardous substances free) Supplier
process, including the inspection requirements for the first testing specialized testing in compliance with the RoHS (Restriction of Analysis and Evaluation Management
Innovation Precision introduced the Melting and Casting
batch of finished products and the sampling requirements for Hazardous Substances) and the REACH (Registration, Evaluation, Measures
QC Inspection Standards, clarifying the responsibilities of
each production process; emphasize whether the inspection Authorization and Restriction of Chemicals). We have also established
inspectors. Through initial piece inspection and process
of the appearance and performance of finished products a ''zero-tolerance'' policy for harmful substances as an entry-level red
sampling, the Company strictly controls key indicators
meets customer requirements; clarify the inspection tools and line, and materials are only approved for warehousing after passing all
such as the appearance and performance of finished compliance tests.
equipment, and the manner in which the results are recorded
products.
and reported. Detailed instructions are also provided for
In-process We rigorously monitor the process parameters of key production Management Measures for Identification and
dealing with nonconforming products.
inspection stages to ensure the stability and reliability of the manufacturing Evaluation of Hazardous Substances in
process. Any deviation in process parameters automatically triggers a Processes
machine shutdown alarm, ensuring that in-process risks are
Outgoing quality inspection controllable.
Clarify the items, inspection and operation methods and This year Finished Final inspection of finished products covers low-magnification Requirements of the QC080000 System
judgement standards according to product standards, product structure, microstructure, chemical composition testing, and
The Company formulated the ''Product Protection Work
customer requirements, quality plans and other information; inspection detection of harmful substances such as Pb, Cr, Hg, and Ni. These tests
Standard Book, which improved packaging materials and are conducted in accordance with the Company's Harmful
clarify the response process for abnormalities found in the
methods to ensure better protection of products during Substances Restriction Standards. In addition, the Company
outgoing quality inspection, including the identification,
transportation and storage. commissions a third-party organization to conduct RoHS and REACH
isolation, disposal and reporting of nonconforming products,
testing for each grade to ensure that the finished products are
to avoid potential nonconforming products from entering the
qualified and compliant.
market.
This year, the Company has enhanced its quality control capabilities through technological reinforcement and third-party
verification. Innovation Precision: Full-Process Control of Hazardous Substances to Build a Safety Line for Products
Innovation Precision has established the Management Measures for Identification and Evaluation of Hazardous Substances in
Processes. The Company strictly adheres to the restrictions on hazardous substances at every stage, from raw material procurement
through production to product packaging and transportation, to ensure that its products comply with requirements of directives such
as RoHS.
S upplier H a za r dous S ubs ta nces Ma na gem ent: Innovation Precision has established the HSF Supplier Analysis and Evaluation
Management Measures to systematically enhance suppliers' detection capabilities and compliance levels. By implementing these
measures, Innovation Precision ensures risk control from the source to the end-user, providing downstream customers with safe,
reliable, and high-quality products.
Multi-dimensional Testing Capability Development Third-Party Cross-Validation Mechanism
H S F R is k a nd Oppor tunity As s es s m ent Ana ly s is F or m : Innovation Precision has established the HSF Risk and Opportunity
The Company has equipped itself with advanced devices Each quarter, raw material samples are randomly Assessment Analysis Form based on ISO international standards and industry best practices. This form comprehensively identifies
such as Inductively Coupled Plasma - Optical Emission selected and anonymously sent to international product risks through the following dimensions:
Spectrometer (ICP-OES) , Optical Emission Spectrometer authoritative institutions for parallel testing. The • Hazardous Substance Screening: Identify potentially hazardous chemical components and physical risk factors in products.
(OES) , and Scanning Electron Microscope-Energy- successful correlation comparison indicates the
• Health and Safety Impact Assessment: Quantitatively analyze the potential impacts on user health, production environment, and
Dispersive Spectroscopy (SEM-EDS). These tools enable objectivity and reliability of the testing system. social responsibility.
precise detection of key indicators such as heavy metal
Risk Level Classification: Categorize risks into high, medium, and low levels based on probability of occurrence and degree of
content, chemical composition, and microstructure,
•
harm. For high-risk products, we implement enhanced controls, including increased inspection frequency, upgraded process
making the inspection report cover all-dimensional error-proofing mechanisms, and establishment of health monitoring records. For low-risk products, we focus on process
quality characteristics. optimization to continuously reduce risk exposure.
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Cultivation of Quality Awareness Ensuring a High-Quality Service
The Company places emphasis on cultivating employees' quality awareness. Organizing a series of activities enhances Experience
employees' awareness and capability in quality control, thereby promoting the improvement of product quality.
Quality Enhancement Meetings Professional Knowledge Training Quarterly Skills and Knowledge
Competitions The Company adheres to a customer-centric service concept, emphasizing the principle of ''Customer Experience First''.
Guided by customer demands, the Company continuously enhances its service level to promote ongoing improvement in
customer satisfaction. We have developed a customer relationship management framework in modules according to business
The Company regularly holds quality The Quality Department conducts a The Company holds a quarterly skills
enhancement meetings to address issues Company-wide professional knowledge and knowledge competition with characteristics and processes, covering four areas: sales assistant, field sales assistant, on-site operations and secondary
identified in the manufacturing process training session once a month. The awards. By combining theoretical aluminum recovery, to provide customers with comprehensive and high-quality services. Meanwhile, the Company provides a
and finished products, and to establish training content includes the use and knowledge and practical operation, diverse range of customer feedback channels and communication pathways, including email, WeChat, fax, phone, regular
corrective and preventive actions. These maintenance of testing equipment, these competitions motivate all meetings, customer review platforms, and a complaint-handling system. These multiple avenues enable the Company to
meetings also focus on optimizing professional testing theory, and internal members of the Quality Department to listen to customer needs from various angles and provide high-level customer service.
Standard Operating Procedures (SOPs) department safety. In addition, the improve their professional level.
to achieve quality improvement. This Company offers targeted technical To improve the management of customer service complaint processes, the Company has established the Customer Feedback
year, a total of 36 sessions of quality training. This year, an 8-week Process Control Procedure, which standardizes the complaint handling process and time limits. This ensures that customer
enhancement were conducted. professional training on aluminum alloy complaints are handled promptly, orderly, and effectively, thereby forming a closed-loop management system. Additionally,
technology was conducted for middle- we regularly conduct post-mortems on complaint cases to continuously optimize processes and products. We also conduct
and upper-level managers of the
personalized follow-ups based on customer preferences to enhance the customer experience.
production department.
Within 24 hours of the complaint Within 48 hours Within 72 hours
The Marketing Department is responsible The Quality Management Department The responsible departments implement
for receiving complaints and forwarding organizes a quality review meeting and the above measures as planned. The Quality
Innovation Precision: Organizing QC (Quality Control) Skills Training to Enhance Product
them to the Quality Management analyses the cause with the relevant Management Department responds to
Quality Control Capabilities Department and the respective responsible responsible departments, who formulate customers by issuing the 8D report (i.e., a
Innovation Precision schedules weekly training sessions for QC departments. For high-priority complaints corrective and preventive measures in problem-solving method commonly used
(such as significant quality issues), an accordance with the Process Control by engineers or other professionals) or by
employees, covering the Company's regulatory requirements,
emergency handling process is initiated. Procedures for Improvement, Corrective sending contact letters, and monitors the
drawing interpretation skills, in-process technology learning,
and Preventive Actions, the Process Control abnormal closure of customer complaints.
quality management procedures, and control procedures for Procedures for Nonconforming Products
material mix-ups and errors. The Company implements a and other documents.
''Master-Apprentice'' mentorship program to help QC
employees quickly familiarize themselves with work processes,
master inspection skills, and develop quality awareness and Innovation Precision: Optimization and Upgrade of Customer Service System
problem-solving capabilities, enabling them to independently This year, Innovation Precision has continued to advance the construction of a high-quality customer service system
On-Site QC Skills Training
and accurately perform quality control duties. and has optimized the complaint handling process:
?
• Increased the timeliness requirements for each stage of complaint handling. Customer service is responsible for
tracking and following up to ensure that every customer request is completed and responded to on schedule.
Introduced an escalation mechanism for complaint handling to promptly inform senior management and involve
Innovation Precision: Organizing Skill Training for Quality Engineering Employees to Enhance Product
•
them in the process, preventing further escalation of losses on the client side.
Competitiveness
• Implemented an assessment system to warn employees who handle complaints passively, fail to submit materials
To implement the Company's key customer development on time, or repeatedly submit non-compliant reports. This measure aims to boost employee enthusiasm and
strategy, focus on customer needs, and maintain precise efforts, prevent the recurrence of issues.
while also firmly establishing a ''zero defects'' quality awareness • Strengthened customer service supervision over the implementation of improvement actions, including random
among all employees, further enhancing product quality control on-site inspections to ensure the effectiveness of these actions and their long-term integration into operations.
capabilities and product competitiveness, the Company has
planned to offer multiple courses for training. Adopting a
closed-loop model of training, practice, assessment, and The Company places high importance on customer feedback and conducts at least one comprehensive customer satisfaction
competition, and utilizing a mentorship approach, the Company survey annually. These surveys combine online questionnaires with offline site visits, covering aspects such as product quality,
has assigned instructors to each group of trainees to facilitate technical services, delivery times, and hazardous substances management. The Company organizes, summarizes, and
both in-class and after-class learning, thereby improving the analyzes the feedback data to form a report on product and service improvement suggestions, which is then presented to the
trainees' practical skills. management. This year, the Company has conducted multiple customer satisfaction surveys, all of which have yielded
On-site Skill Training for Quality Engineering Staff
satisfaction rates above 90%.
?
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Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
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Innovation New Material adheres to the talent philosophy of ''integrity and capability,
matching people with positions'', ensuring the legal rights and interests of employees,
strengthening talent development, and enhancing employee welfare. We actively work
on building an equal, diverse, and happy workplace environment. At the same time,
we maintain a commitment to safe production, and improve the safety management
system, actively carry out hidden danger inspections, comprehensively enhance
employee safety awareness, and are dedicated to creating a safe working environment
for our employees.
Empowering
Employees, Creating
Prosperity Together
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Promoting Workplace Legal Benefits
Supplementary
Benefits
Equality and Diversity Paid annual leave, marriage leave, Commercial insurance, holiday gifts,
maternity leave, paternity leave, breast- vehicle subsidies, free meals, shuttle bus
feeding leave, etc. services, health check-ups, team-building
funds, sports club memberships, etc.
The Company strictly complies with relevant laws and regulations such as the Labor Law of the People's Republic of China, the
Labor Contract Law of the People's Republic of China, the Law of the People's Republic of China on the Protection of Women's
Rights and Interests, and the Special Regulations on Labor Protection for Female Employees. The Company respects and
protects human rights, providing all employees with equal employment opportunities, competitive salaries, and continuously
Employee Communication and Exchange
expanding communication channels to effectively safeguard the legal rights and interests of employees. The Company continuously improves the employee rights protection system, formulates normative documents such as the
Trade Union Management System and the Freedom of Association Management Control Procedures, clearly safeguarding
employees' freedom of association and the right to collective negotiation, and builds a fair and open working environment. To
ensure smooth communication channels, the Company has established a direct line to the Chairman and has equipped digital
suggestion boxes in various production workshops, employee activity centers, and cafeterias, forming a network for collecting
This year employee opinions that covers all areas, ensuring that voices from the grassroots reach management.
To further protect employee rights, the Company has established the Employee Grievance Management System, creating a
the Company employed helped diversified grievance channel that includes department supervisors, the human resources department, the economic
with disabilities apply for rental housing inspection department, grievance email, and telephone. We encourage employees to put forward rationalization suggestions
on the development of the Company or file complaints about their salary and performance appraisal results, and we are
resolved the nearby school enrollment committed to dealing with each complaint on the principle of openness and fairness, and to deal with and give feedback on
provided 48 local rural assisted a total of
them within seven working days, so as to effectively safeguard the rights and interests of the employees and maintain the
issues for employment opportunities in difficulty stable operation of the enterprise.
The Company actively collects and listens to employee voices, conducting annual employee This year
satisfaction surveys at the end of each year, summarizing employees' opinions and
Respect and Protect Human Rights suggestions, and formulating feasible improvement measures based on the results of the Company's employee
The Company follows international standards such as the International Labor Standards, as well as domestic laws and satisfaction survey to promote the continuous improvement of the Company's management satisfaction survey covered
regulations like the Labor Law of the People's Republic of China and the Labor Code of Vietnam. The Company has established level. This year, the Company's employee satisfaction survey covered 80% of employees, with
rules and regulations including the Employee Handbook, Corporate Culture Handbook, Female Employee Protection an overall satisfaction rate of 90%. At the same time, for specific issues, the Company conducts
Procedures, Anti-Discrimination Management Control Procedures, Child Labor Remediation Procedures, and Minor Worker irregular satisfaction surveys and makes targeted improvements based on the actual needs and
Protection Procedures. Adhering to the management principle of ''policies first, processes foremost'', the Company ensures opinions of employees to ensure that employees' voices can truly become the driving force for
With an overall satisfaction
company development. Innovation Metal, Innovation Precision, and Shandong Sheet Materials
the protection of employee rights. We prohibit discrimination against any employee during the recruitment and employment
process based on race, color, age, gender, sexual orientation, ethnicity, disability, religion, political affiliation, trade union regularly conduct democratic evaluations covering 100% of employees to collect and
rate of
membership, nationality, marital status, gender identity, etc., ensuring that everyone is treated equally and fairly. At the same understand employees' suggestions on company development and the senior management
time, we strictly comply with labor laws and regulations to ensure that employees' labor rights are respected and protected, team, and adopt effective suggestions to improve company development.
including but not limited to wages, working hours, and working conditions. We prohibit the use of any form of forced labor and
child labor, and when establishing cooperative relationships with suppliers, we ensure that they also adhere to this principle. Innovation Metal: Holding a Staff Representative Assembly to Listen to Public Opinion
Since its establishment in 2009, the labor union of Innovation
Compensation and Benefits Metal has fully exercised its functions in safeguarding the legal
The Company provides competitive compensation to fully recognize the contributions of its employees. To better stimulate rights and interests of employees, distributing salary and
benefits, participating in Company management and
the potential of employees, this year, the Company continues to optimize the compensation incentive mechanism and build a
construction, and engaging in the democratic management of
performance-oriented distribution system. The Company deeply links employee compensation with performance outcomes,
the Company. The union regularly organizes activities to
establishes a diversified bonus pool, and offers special rewards to those who make outstanding contributions, ensuring that collect public suggestions for improvement, systematically
value-creators receive corresponding returns. This year, the Company organized several special training sessions on gathering employees' reasonable suggestions on labor rights
compensation and performance reform, guiding employees to use professional tools and methods to help them scientifically protection, career development, and production
set performance indicators, conduct process evaluations, and provide feedback on results, ensuring objective and fair improvements. The summarized information is then
performance management. documented and publicized at meetings, with continuous
improvements made based on public opinion. This approach
We strictly follow national laws and regulations to provide employees with various benefits and protections, including social strengthens the sense of ownership among employees and
insurance, housing provident funds, and statutory leave. We also continue to optimize employee benefits, offering effectively promotes the scientific decision-making and
supplementary benefits such as commercial insurance, holiday gifts, team-building funds, and educational assistance for operational efficiency of the enterprise, forming a distinctive ? On-site of the Staff Representative Assembly at Innovation Metal
children's academic achievements, comprehensively enhancing the level of employee benefits. model of employee democratic participation.
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Cultivating Holistic Talent Development
Employee Development Pathways
The Company adheres to a culture of ''co-creation and sharing'', and has established a career growth model of ''dual tracks,
four pathways'', providing differentiated promotion ladders for managerial and technical talents, encouraging employees to
enhance their work capabilities and achieve full career development. The Company has set up internal recruitment channels,
regularly posting internal job openings and encouraging employees to apply voluntarily, aiming to provide employees with
broader development opportunities. In addition, the Company has obtained the qualification for independent skill assessment
The Company adheres to the talent philosophy of ''integrity and capability, matching people with positions'', and has built a in Shandong Province, offering more learning and development opportunities for skilled talents. By the end of 2024, the
closed-loop talent development system of ''empowerment-growth-win-win'' to empower employees in all aspects. The Company has assessed 526 skilled talents through independent evaluation.
Company focuses on shaping a development culture of ''co-creation and sharing'', and strives to create a culture that is
''attractive, appetizing, fun, educational, and promising'' to provide employees with a healthy, safe, beautiful, and happy The Company focuses on building a fair, just, and transparent promotion system. We introduce a democratic assessment
working environment, achieving a win-win situation for both employees and the Company. mechanism for all staff, conducting a fair evaluation of employee performance based on a comprehensive range of factors
including job requirements, individual work performance, achievements, and departmental evaluations. At the same time, we
conduct thorough investigations on employees who are intended for promotion and publicize promotion information and
methods for handling objections company-wide, opening up supervisory channels such as suggestion boxes to ensure that the
Talent Development promotion process is fair and transparent.
The Company is committed to creating a fair and transparent recruitment environment, continuously improving the employee
promotion mechanism and a learning system for all staff, and establishing a learning organization to stimulate employees'
potential and promote the enhancement of their work skills and professional quality.
Dual-Track Promotion Pathway
Fair Recruitment and Diverse Backgrounds
The Company has established documents such as the Recruitment Management System and the Resignation Management
System, specifying the processes and execution standards for employee onboarding and resignation. During the recruitment Management Professional Technical Management Skill
process, the Company requires the recruitment team to strictly adhere to the principle of openness and transparency, select Pathway Pathway Pathway Pathway Pathway
talents based on established systems, and has set up a dedicated reporting email and hotline to actively accept supervision
from applicants and all sectors of society, ensuring the fairness and impartiality of the entire recruitment process.
Senior Senior Chief
This year Management Management Technician
The Company practices a diversified talent development concept, building an
intergenerational talent echelon. The senior management team integrates young Special
We absorbing a total of Technician
talents, middle-aged backbones, professional managers, and senior technical
experts, forming a decision-making mechanism where the innovation power of the employment difficulty personnel Middle Principal Director Middle Senior
times and the wisdom of industry experience are organically coordinated, recognized by the government's labor Management Specialist Engineer Management Technician
effectively driving the improvement of organizational efficiency. In the field of and social security department, paying Senior Senior
gender equality, the Company has established a systematic protection system: their social insurance and housing Technician
Specialist Engineer
strictly implementing equal pay for equal work, improving support policies for provident funds in full, effectively
Intermediate Intermediate Senior
female employees' childbirth, and legally implementing benefits such as maternity alleviating regional employment
Specialist Engineer Worker
leave and nursing leave, to build a fair and inclusive workplace environment. pressure.
Assistant Assistant Intermediate
Frontline Frontline
Specialist Engineer Worker
Junior
Worker
Apprentice
Dual Tracks Promotion Pathways
Employee
Functional Track: Management Pathway, Professional Pathway, Technical Pathway Employee Level
Level
Production Track: Management Pathway, Skill Pathway Functional Track Positions Production Track Positions
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Employee Training System Establishment of Online Training Platforms
The Company adheres to the principle of applying knowledge and learning for practical use, systematically constructing a The Company has established online training platforms ''Magic College''
comprehensive learning and development system for all employees. The Company designs a hierarchical and categorized and ''DeChuang Business School'' to continuously enrich employee
training system, creating differentiated training programs for employees at various levels such as new hires, technical staff, and training resources and methods, promoting the improvement of the
middle to senior management. These programs cover a diverse range of areas including vocational skill certification, Company's training standards and employee satisfaction. In addition, to
leadership enhancement, and innovative thinking training, ensuring that the training content is deeply integrated with actual stimulate employees' enthusiasm for learning, we have formulated the
business operations. ''Educational Incentive System'', which standardizes the criteria for
learning subsidies including professional title allowances, registered
safety engineer certificate subsidies, and other corresponding
Conduct orientation meetings, discussions, and team-building activities to enhance mutual occupational skill subsidies, providing full support for employees' Online Training
professional skill enhancement and progress.
?
understanding between the Company and employees; continuously update and enrich the content
of new employee training programs to help new hires quickly grasp common knowledge and skills
New needed for their work, and implement a ''mentorship'' model for new employees after they join the
Organizing Middle and Senior Management to Participate in Principal EMBA and Condensed EMBA Training
employees Company to assist them in better integrating into the Company.
Courses to Build a Benchmark Team
To further enhance the management capabilities of
leading cadres, the Company organized middle and
Organize various specialized management training sessions to strengthen the management team
senior management to participate in the Principal
and optimize corporate management. This year, the Company has conducted multiple leadership
EMBA series training and Condensed EMBA training
training sessions for management staff:
from Action Education. The learning outcomes were
• To further consolidate the ''extremely high standards, extremely simple actions, extremely fast then shared with internal employees through internal
speed, and extremely great results'' four-level thinking theory, the Company conducted a training to unify thinking and language, forming the
special training on ''The Five Managements of High-Efficiency Individuals'', with more than 170 ''extremely high standards, extremely simple actions,
employees participating. This training shared knowledge and experience on ''goal extremely fast speed, and extremely great results'' four-
management, mindset management, time management, learning management, and behavior level thinking theory, which reshaped the innovation
management'', providing efficient work methods for employees and supporting the high-quality team. This year, middle and senior management
development of the Company. attended 12 external training sessions and organized 7
internal training sessions, with a total of approximately
• Innovation Metal organized a training session on the theme of ''Performance Growth Model'',
with over 50 participants. The training focused on the four core steps of performance growth,
The expenditure on Action Education special training
namely ''Goal, Measure, Evaluation, and Incentive''. Taking these four steps as the main line, ? Condensed EMBA Training
Middle and reached RMB 2,191,600.
Innovation Metal elaborated on the bottlenecks of each step and the implementation tools, key
senior actions, and methods to overcome these bottlenecks and achieve goals from the three major
management
This year
directions of ''What, Why, and How''. Innovation Metal also explained the logic behind
performance growth, enhancing the awareness of leading cadres regarding the role of
performance management. Middle and senior Organized With a total of The expenditure on Action
Qingdao Liwang organized a training activity on the theme of ''How to Be a Good Manager'', management attended Education special training
training sessions
•
with a total of 98 employees participating. The training revolved around seven major themes: approximately reached RMB
''Self-Positioning of a Manager'', ''What a Manager Should Do'', ''How to Do It'', ''What
Qualifications Are Required'', ''What Not to Do'', ''How to Manage Indicators and On-Site sessions
participants in the Action
Education series training 2,191,600
Operations'', and ''How to Conduct Work''. This training broadened employees' understanding
of the importance of management, enhanced the overall quality of Qingdao Liwang's
management personnel, and improved the combat effectiveness of the production team.
Employee Well-being
The Company values employee communication and provides a variety of non-monetary benefits in addition to basic welfare to
comprehensively enhance employees' happiness and sense of belonging.
Conduct ''Team Leader Training'' and ''Furnace Plan''talent reserve training classes, and use the
Grassroots ''Skilled Talent Self-Assessment'' platform to cultivate reserve talents for the production Employee Benefits
Management management system.
The Company adheres to a people-oriented philosophy and practices the culture of ''attractive, appetizing, fun, educational,
and
and promising'', continuously improving employees' work and living environments to comprehensively enhance their well-
Technicians being.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Attractive Appetizing Festival Activities
We have created beautiful garden-style factory areas and a We provide our employees with a pleasant dining
comfortable working environment for our employees. environment and high-standard, complimentary daily work Lantern Festival Activities
meals.
The Company organized celebrations for the Lantern Festival, setting up popular games such as guessing lantern
riddles and ring toss, combining them with knowledge about Company safety and culture, allowing everyone to gain
knowledge while playing games.
? Garden-style Factory Area ? Employee Cafeteria
Fun
This year, the Company has established To promote a healthy lifestyle and enhance The Vietnam subsidiary organizes reunion
an ''Innovation Basketball Team'', employees' physical fitness, the Company activities for employees during the Spring
injecting new vitality into the employees' has established sports clubs such as Festival, allowing them to feel the
leisure life. badminton and table tennis clubs, ''homely'' atmosphere of the Company,
organizing club activities monthly to enrich enhancing their sense of belonging and ''March 8th Traditional Chinese Medicine Cultural Science
employees' leisure time. satisfaction. Popularization and Free Clinic'' Event
The Company invited a team of doctors from Zouping City Hospital of Traditional Chinese Medicine to conduct a
cultural science popularization and free clinic event for female employees of Innovation. Nearly 60 female employees
from Innovation Metal and Innovation Precision participated in the event.
? ChuangXin Basketball Team ? Employee Sports Clubs ? Photos from the Vietnamese New Year
Reunion Event
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Team Building Activities
Labor Day Sports Meeting Distribution of Pioneer Vehicles
Various subsidiaries carry out ''Celebrate Labor Day'' activities to enhance employees' cohesion, centripetal force, To recognize outstanding employees who have made significant contributions to their work, the Company rewards
and combat effectiveness. Through a series of activities, employees' cultural life is enriched, and their spirit of and distributes 176 all-aluminum electric new energy vehicles, acknowledging employees' efforts for the Company's
tenacious struggle and sense of collective honor is strengthened. development.
Skills Competition
The Company holds competitions for grinding wheel static balance, forklift, and crane operation skills. Participants
demonstrate focus and craftsmanship in grinding wheel static balance operations, precisely adjusting to ensure
Other activities
production quality; participants skillfully maneuver to efficiently transport goods in the forklift skills competition;
Participants show precise control and smooth lifting of heavy objects in crane operation skills competitions. These
activities identify technical experts, stimulate employees' enthusiasm for learning, create an atmosphere for skill The Company has established team-building funds for each department, allowing for flexible organization of various
improvement, and support the Company's innovative development and production efficiency enhancement. forms of team-building activities based on job tenure. These activities encompass outdoor development exercises,
short-distance trips, and cultural and sports events, providing employees with opportunities to relax and unwind
amidst their busy work schedules and enhancing team cohesion.
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Implementing the Concept of Inherent Safety Management System
Safety The Company has established safety management regulations, including systems for production safety responsibility, risk
assessment and control management, management of special operations personnel, operation safety management,
occupational health management, safety production assessment management, emergency management, and safety
performance evaluation management. At the same time, the Company has established a top-down management model, led
and planned by the Safety Committee, with unified supervision by the Safety and Environmental Department, and
The Company always adheres to the safety management policy of ''safety first, prevention as the main approach,
autonomous management by each subsidiary to implement health and safety management measures.
comprehensive management, continuous improvement, people-oriented, and safe development''. We practice the safety
management concept that ''all risks can be controlled, and all accidents can be prevented''. The Company continuously The Company has built a ''dual-wheel drive'' safety management system, with the Company's unified management and the
improves the safety assessment and inspection mechanisms, enhances the safety level of production equipment, and overall management by the heads of various subsidiaries, and the branch-level management and 12 safety management
promotes health and safety training for employees, all to create a safe and healthy production environment. elements as the driving wheel. Under the joint drive of the overall production safety responsibility system and the safety
performance competition mechanism, a tightly linked production safety management model is formed to ensure that
production safety management measures are effectively implemented.
By the end of 2024,
completed the second-level safety standardization acceptance; Dual-Wheel Drive Safety Management System
Innovation Metal, Shandong Sheet Materials, Innovation Precision, and Suzhou Chuangtai have all passed the assessment and
acceptance of the ''Second-Level Safety Production Standardization Enterprise''; The safety production
responsibilities of all employees
The number of factories that have passed the ISO 45001 Occupational Health and Safety Management system certification is
Five levels
Two''One'' of safety
of control
Occupational Disease Number of Fatalities per Average Safety Training management
Incidence Rate Hundred Million in Hours per Person
Revenue
Injury Incident Rate
The driving wheel Safety performance The driven The driven
Rate per Million Working Hours
evaluation wheel 1 wheel 2
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The Company has established a safety assessment and reward and punishment mechanism, formulating systems such as the Third-Party Personnel Work Safety Management
Safety Performance Assessment Measures, and operates mechanisms for safety performance assessment, dual-system
operation assessment, and accident assessment. We also strengthen supervision, inspection, and assessment, with a focus on The Company also focuses on the safety management of third-party personnel working on-site, incorporating external
rewarding more and punishing less, to fully leverage the guiding and motivational role of performance assessment. The construction units into daily safety management and the assessment management of the responsible department,
Company's Safety and Environmental Department regularly organizes safety management personnel and technical staff from implementing comprehensive safety management covering the entire process including procurement bidding for external
subsidiaries to conduct monthly inspections, comprehensive inspections, special inspections, and re-inspections. Based on construction, signing of safety agreements, on-site training, supervision of the construction process, and acceptance of
the performance of safety production responsibilities, education and training, hidden danger rectification, emergency drills, construction safety. In addition, the safety department has established a ''one company, one file'' mechanism for the safety of
on-site safety status, work injuries, and other safety management situations, they organize the calculation of performance external construction, including the qualifications of construction units, personnel certificates, insurance materials,
scores and implement rewards and punishments based on the annual achievement of targets at the Company, workshop, and construction plans, safety training, hidden danger inspections, violation assessments, and safety performance evaluations, to
team levels. implement the safety management of third-party personnel working on-site.
Safety Hazard Identification
Compliance Rate for Safety Production
The Company establishes and improves a long-term mechanism for self-inspection and self-correction by formulating an
Safety
Responsibility Control Responsibilities Annual Hazard Identification Plan. The Company conducts multi-level and categorized hazard identification work
System Target：100% Safety Education and Training Qualification independently, through a combination of routine and regular inspections, special and comprehensive inspections, group and
Achievement in Rate 100% branch-level self-inspection, and workshop and team inspections. Special safety inspections including major accident hazard,
special equipment, electrical, fire, and external construction are implemented as planned. Additionally, we carry out deep-well
Certification Compliance Rate for Special
casting special inspections and gas special inspections in conjunction with industry accident cases and policy requirements to
Operations Personnel strengthen the closed-loop management of hazards and promptly eliminate accident risks. For identified hazard issues,
Company analyzes the causes and formulates rectification plans, conducts regular re-inspections, publicizes the results of
hazard identification and management, and forms a closed-loop management system. At the same time, the Company
Control Compliance Rate for Hazard Control Measures 100% regularly organizes full-time safety management personnel and professional technicians to conduct on-site special hazard
identification, comprehensive inspections of safety production responsibility fulfillment, and routine inspections in
Target：100% First Re-inspection Rectification Rate (Including deferred
subsidiaries to fully implement hazard identification.
rectification) 98.21%
Comprehensive Inspection, Monthly Inspection
Emergency Drill Completion Rate
Control
(Group Safety Expert)
Safety Equipment, Safety Signs, Emergency Facilities Integrity
Target：100%
Group Safety Diagnostic Services
Risk Level (External Expert)
Rate
Classification
Group Daily Inspection (On-site
+ Monitoring)
Risk
Classification
Comprehensive, Analyze Hidden Re-inspection Hidden Analyze
Company
Management
Special, Seasonal, and Danger and Danger and
Hidden Level Improve Management Acceptance Elimination Improve
and Control
Danger Holiday Inspections
Work Injury
Investigation
plan
Management Work-related Fatal Accidents (cases) Hidden Workshop Level
Achievement in Control Danger
Hidden Danger Inspection
Workshop
Occupational Disease Incidence Rate Investigation
Level
and
Safety Personnel
Management
Daily Inspection
Risk
Serious Injury Accidents (cases) System
Identification
Team Level Hidden
Danger Inspection
Team
Level
Daily In-Shift Patrol
Control Per Thousand Light Injury Rate (including minor
Target：1% injuries) 0.881%
Management System for Risk Classification Control and Hidden Danger
Investigation and Governance
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By the end of 2024 Innovation New Material Safety Training Highlight Courses
the Company has achieved a with a first re-inspection rectification
development for technical professionals and enforce
certification requirements for special equipment
operators.
Safety Technical Transformation The Company and its various subsidiaries entrust
Professional professional training institutions to organize the
Adhering to the concept of safe production, the Company continuously improves the level of intelligence and safety in the professional technical knowledge safety training for the
Technical
production process through technological transformation and equipment innovation. This year, the Company, in conjunction Company's special operation personnel and obtain the
Position Training
with accident cases in the aluminum processing industry and considering strategic planning and equipment production safety, qualification certificates for special operations.
carried out production line transformations from two aspects: essential equipment safety and structural adjustment of
The Company organizes professional knowledge exams
production capacity.
for professional technical personnel every quarter, and
the pass rate of the exams is included in the safety
performance assessment of Company.
R enova tion of P r oduc tion L ine Inc r ea s e the U s e of Autom a tion
Transformed fixed melting furnaces,
E quipm ent
wire rope casting production lines Improved the automation and
into tilting furnaces, and continuous intelligence level of equipment, and The Company organizes pre-job ''three-level'' (i.e.,
casting and rolling production lines. enhanced safety facilities and company-level, workshop-level, and team-level) safety
automatic control of interlocking education for newly hired employees to ensure that they
devices. receive a systematic and comprehensive safety
New Employee management education. For subsidiaries involving
Onboarding molten metal, the pre-job training for new employees
Safety Education should be no less than 72 hours, while for other
subsidiaries, the pre-job training for new employees
Strengthening Safety Awareness
and Training
should be no less than 24 hours. This ensures that the
''three-level'' safety education rate for new employees
The Company adheres to the safety philosophy that ''those who manage production must also manage safety'' and ''those reaches 100%. Employees who fail the safety training
who manage safety must understand safety''. We are committed to enhancing employees' safety awareness and continuously and education assessment will not be arranged to take
advancing comprehensive safety education and training management to ensure that every employee can master the up their posts.
necessary safety knowledge and skills. At the same time, the Company actively conducts safety emergency drills to strengthen
employees' ability to respond to emergencies and to build a comprehensive safety production defense line.
The Company places great emphasis on the prevention
and control of occupational diseases, requiring its
Special Training subsidiaries to formulate annual occupational health
This year for the training plans, which are then implemented by the
Prevention and safety departments according to the plans. The training
Control of should be no less than 4 hours per year, conducted in
Occupational two phases, with each phase organizing multiple
the Company achieved a the Company has a total of batches of occupational health and safety training for all
Diseases
employees, and each batch should be no less than 2
hours.
employee safety training Engineer qualification
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Shandong Sheet Materials: ''company-level'' Safety Awareness Training Yuanwang Electrical Technology: ''company-level'' Occupational Health Management Training
In January 2024, Shandong Sheet Materials conducted training on the analysis of causes and hazards of ''three In August 2024, Yuanwang Electrical Technology
violations'' (violations of instructions, operations, and labor discipline), road traffic safety, psychological counseling for conducted occupational health management training on
safety, analysis of typical accident cases, the Regulations on Safety Management of Confined Space Operations in occupational health laws and regulations, occupational
Industrial and Commercial Enterprises (Emergency Management Department Order No. 13), and the Safety Standards for health management systems, job operating procedures,
and emergency rescue plans for occupational disease
Confined Space Operations in Industrial and Commercial Enterprises. By helping employees learn and reflect on the
hazard accidents. By promoting laws and regulations,
causes and severe consequences of ''three violations'' and master the safety requirements and measures for confined
management systems, and other content to employees,
space operations, Shandong Sheet Materials enhanced employees' awareness of safe production. This training covered
the training aimed to enhance employees' awareness of
rescue skills in the event of occupational disease hazard
accidents, thereby improving employees' occupational
safety protection from both institutional and self-
protection aspects. The training covered 691 employees
exposed to occupational hazard factors, with a
participation rate of 100%. ? On-site Training Photos
Safety Emergency Drills
The Company has established a clearly defined emergency drill operation system to ensure the efficient implementation of
safety management work.
The company-level emergency drill The safety departments of The team leaders of subsidiaries
activities are uniformly deployed subsidiaries organize and implement organize and implement on-site
and organized by the Company to comprehensive emergency drills and disposal plans according to the
formulate plans for comprehensive special emergency drills according to plan, and the safety department
conducts spot checks on the
emergency drills, special the plan, while the Safety and
effectiveness of these drills.
emergency drills, and on-site Environment Protection Department
disposal plan drills. conducts spot checks on the
? Safety Awareness Training Site effectiveness of these drills.
The Company places a high priority on the health and safety of its employees, continuously improving their working
environment, and actively conducting occupational health management knowledge training for personnel exposed to At the drill site, a combination of centralized lectures and on-site simulated operations is employed. Employees are instructed on the
occupational hazard factors. The training covers basic knowledge of occupational disease prevention laws and regulations, drill procedures and emergency response measures, and are guided through on-site simulations of various emergency first aid
workers' rights and obligations regarding occupational health protection, main occupational hazard factors and preventive methods. This approach enhances employees' awareness of production risks, equips them with emergency response methods, and
strengthens their ability to perform emergency self-rescue in critical situations. After the drill, relevant personnel organize the drill
measures in their respective positions, as well as the use and maintenance of personal labor protection equipment. By
records and assess the effectiveness of the activity. They then refine the activity setup and content to continuously improve the
popularizing health and safety knowledge, the Company enhances employees' ability to manage their own occupational
effectiveness of the emergency drills.
health. This year, the Company conducted occupational disease examinations for 9,078 employees during their employment,
with no confirmed cases of occupational diseases.
Shandong Sheet Materials, Innovation Beihai: Special Emergency Response Drill for Molten Metal Companies
Shandong Sheet Materials held a special emergency response drill for natural gas leakage, fire, and explosion accidents.
Shandong Sheet Materials: ''company-level'' Occupational Health Management Training
By simulating a natural gas pipeline valve malfunction that led to leakage and fire, the drill enhanced employees'
In May 2024, Shandong Sheet Materials conducted occupational health management training on basic knowledge of awareness of such dangers and trained their emergency response and handling skills in critical situations. Shandong
occupational disease prevention regulations, the rights and obligations of workers' occupational health protection, Sheet Materials also improved employees' abilities to evacuate and self-rescue in emergencies and strengthened inter-
main occupational disease hazard factors and preventive measures in positions, and the use and maintenance of departmental coordination.
personal labor protective equipment. This training aimed to enhance employees' awareness of their rights and During the ''Workplace Safety'' month, Innovation Beihai conducted an emergency drill for high-temperature aluminum
obligations in occupational health protection, improve their ability to identify occupational disease hazard factors in liquid leakage in the casting workshop. The drill simulated an abnormality in the furnace eye control rod that caused
their positions, and encourage them to consciously fulfill their occupational health protection duties. The training aluminum liquid to overflow. This exercise heightened employees' awareness of the dangers of high-temperature
covered 1,300 employees exposed to occupational hazard factors, with a participation rate of 100%. aluminum liquid leakage and honed their emergency response capabilities in urgent scenarios.
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Innovation New Material prioritizes the development of collaborative partnerships,
working hand-in-hand with partners to build a sustainable supply chain. While
pursuing growth, the Company remains committed to social responsibility, sharing the
fruits of progress with society, and contributing to the building of a better society.
Open Cooperation
for a Win-Win Future
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Supplier Performance Evaluation
Sustainable Supply Chain Management
We conduct regular performance assessments of suppliers with whom we are collaborating, implement tiered supplier
management based on the evaluation results, and continuously eliminate non-compliant suppliers to minimize supply chain
risks. This year, we have vigorously advanced the optimization and upgrade of the digital procurement platform, achieving
ensuring the traceability and query-ability of records, and has propelled the systematization and standardization of the
The Company continues to strengthen its supplier management systems and mechanisms, actively advancing sustainable Company's annual supplier audit process.
supply chain management. While enhancing its own sustainable development capabilities, the Company focuses on driving
comprehensive sustainability throughout the entire supply chain.
The Company has formulated management policies such as the Procurement Process Control Procedures, the Supplier
Control Procedures, the Supplier Evaluation Management Control Procedures, and the Qualified Supplier Evaluation
Standards to standardize the supply chain management process.
The Company has established a comprehensive supplier assessment and scoring system, which
regularly assesses and scores suppliers in terms of product quality, delivery time, price, after-sales
Supplier Qualification service, cooperation and business ethics, etc. According to the assessment results, we categorize
Assessment and suppliers into excellent suppliers, qualified suppliers and suppliers to be improved.
Scoring
Information Source Preliminary Screening On-site Inspection
The Company obtains The Company requires potential For suppliers who have passed
information on potential suppliers to provide detailed the qualification audit, the
suppliers through various information, including business Company will arrange a
channels, including participation licenses, production licenses, professional team to conduct on-
site inspections at their
in industry exhibitions, peer quality management system
production sites. The inspection
recommendations, and self- certificates, product test reports,
covers production equipment,
nominations from suppliers. etc., and conducts a rigorous
process flow, quality control
review of the relevant systems, environmental
information. For excellent suppliers, the Company will provide more order share, priority payment and other
management systems, employee
preferential policies, and maintain a good cooperative relationship with them.
working environments, welfare,
etc., to ensure that the suppliers For qualified suppliers, the Company maintains normal business dealings with them, pay attention
have good production conditions to their performance in cooperation in a timely manner, and prompt them to improve through
and management capabilities.
regular communication and feedback.
Tiered
For suppliers to be improved, the Company will put forward specific requirements for
Management
improvement and deadlines for completion, and consider suspending or terminating the
cooperation relationship if the requirements cannot be met within the specified time.
Public Bidding Qualified Supplier List Inclusion Trial Verification
The Company explicitly defines The Company includes suppliers After passing the on-site inspection,
bidding requirements and whose products have been the Company will sign a small-batch
evaluation criteria to ensure verified through small-batch trial contract with the supplier and
transparency, fairness, and trials, meet the Company's purchase a certain number of
impartiality in the bidding requirements, and have products for trial verification. In the
process, thereby attracting more demonstrated good performance trial process, the Company will Based on the assessment results, the Company will resolutely terminate the cooperation
qualified suppliers to compete during the on-site inspection, in comprehensively test and evaluate relationship with any supplier whose product quality is unqualified for a long period of time, whose
and securing superior products the qualified supplier list. product quality, performance, delivery date is frequently delayed, whose after-sales service is poor, who does not comply with
and services. stability and other indicators, while our business ethics and the relevant regulations of the Company, and who fails to make any
also paying attention to the Exit Mechanism
significant improvement after repeated communication and improvement.
supplier's delivery time, after-sales
service and other performance.
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Supplier Training and Communication
Enhancing Customer Privacy Protection
The Company is committed to carrying out friendly exchanges and cooperation with suppliers, and promotes healthy
communication with suppliers by organizing regular supplier training, carrying out business exchange meetings, and
participating in industry exhibitions and annual meetings.
Optim iza tion of the S upplier Deepening of B us ines s Integr a tion of Indus tr y E xhibitions The Company is firmly committed to safeguarding information security by continuously improving and optimizing
T r a ining S y s tem E xc ha nge Meetings a nd Annua l Confer enc es management measures to reduce information security risks and effectively protect customer privacy. The Company complies
with the Cybersecurity Law of the People's Republic of China, the Personal Information Protection Law of the People's
In alignment with our business The Company regularly convenes The Company actively organizes
development plans and the current business exchange meetings, inviting supplier participation in industry Republic of China, and other relevant laws and regulations. We have formulated policies including the Information Security
capabilities of our suppliers, the suppliers to participate. These exhibitions and annual conferences. Strategy and Management Policy, the Information Security Education and Training Policy, the Password Management Policy,
Company regularly organizes specialized meetings focus on analyzing pain These platforms enable suppliers to the Network Information Security Emergency Response Implementation Policy, and the Management Structure and Measures
training sessions. The training content points in the cooperation process and comprehensively demonstrate their
for Information Security and Privacy Protection, all aimed at building a comprehensive and effective information security and
includes interpretation of new product discussing improvement measures, product and technological capabilities,
development directions, upgraded while simultaneously sharing market expand industry networking channels, privacy protection system to provide strong support for the Company's secure operations. This year, the Company has
quality standards, guidance on the developments and industry trends. This and foster a conducive external updated and refined the Cybersecurity Management System, further optimizing the cybersecurity management framework by
application of new technologies, and approach deepens mutual trust environment for long-term strategic detailing management processes, enhancing technical measures, and clarifying responsibility assignments, thereby making
analysis of the latest industry regulations between both parties and lays a solid collaboration between the Company
cybersecurity management more standardized, systematic, and efficient.
and policies. This initiative aims to help foundation for the steady progress of and its suppliers.
suppliers accurately grasp our business cooperation.
requirements and development trends,
while enhancing their ability to In 2024, Qingdao Liwang passed the ISO 27001 Information Security Management System certification.
undertake business.
Supplier ESG Management
The Company has integrated ESG principles into supplier management, requiring suppliers to sign the Prohibited Substance
Assurance Declaration and HSF Notice, the Environmental Notification Letter for Related Parties, the Supplier Social
Responsibility Commitment, and other documents. Among them, the Supplier Social Responsibility Commitment clearly
defines the red line of suppliers' responsibility, covering areas such as environment, business ethics, and conflict minerals6:
Promotion of labor-management cooperation and respect
Prohibition of child labor and any
for employees' rights to freedom of association and
form of forced labor.
collective bargaining.
Provision of an equal and fair Timely and complete disclosure to the Company of any
working environment, prohibiting relevant business relationships with other suppliers,
any form of discrimination. subcontractors, and downstream suppliers.
Ensuring safe and hygienic living A firm commitment to not support or procure any metals
conditions to safeguard the safety originating from conflict-affected areas, illegal mining, or
and health of employees. mines with deplorable working conditions.
The Company actively collaborates with third-party audit institutions commissioned by downstream customers to conduct
The Company has established an Information Security Working Team, with the Company's primary leadership serving as the
comprehensive audits of its own supply chain conditions. The audits focus on key areas such as labor rights protection, health
first responsible person for information system management and cybersecurity, responsible for the comprehensive
and safety measures, environmental protection effectiveness, adherence to business ethics, and the operation of
management, operation, and maintenance of computer application systems and network security. The Computer System
management systems. For small and micro enterprises within the supply chain, the Company provides professional guidance,
Administrator provides technical assurance for the secure operation of the Company's internal network. The Information
technical support, and necessary resource assistance to help them optimize production processes and enhance overall supply
Security Officer is responsible for reviewing all application records related to the Company's informatization, auditing the
chain management capabilities.
rationality of user account usage and permission allocation, conducting security classification of the Company's critical
information, and periodically reviewing inspection records compiled by System Administrators. In accordance with the
its neighboring countries, such as Rwanda, Uganda, Burundi, Tanzania, and Kenya. These minerals include tin, tantalum, tungsten, and gold (collectively known as principle of ''whoever uses it bears responsibility'', the Company designates user departments as the responsible units for
degradation.
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Striving to Contribute to Social Well-Being
Develop Confidentiality Policies Sign Confidentiality Agreements
Clearly define data classification, access permissions, Require employees to sign confidentiality agreements and
and usage rules to standardize information policy. include confidentiality clauses in contracts with business
partners.
File Encryption and Access Control
Enhance Permission Management Use strong encryption algorithms to ensure that files are
Implement role-based access control and adhere to encrypted during creation, storage, and transmission.
Community Management and Communication
the principle of least privilege.
As a core industrial force driving regional economic development, the Company fully recognizes its responsibility for the
Physical Security Management
Network Security Protection sustainable development of surrounding communities and indigenous populations. Adhering strictly to internationally
Enhance access control and properly arrange recognized social responsibility standards, the Company integrates indigenous rights protection into its operational
Strengthen network protection with security devices
equipment to ensure the security of devices. framework. For new, modified, expanded projects, and resource development activities, the Company commits to fully
such as firewalls and intrusion detection systems.
safeguarding the legal rights of indigenous peoples to ''autonomous decision-making, prior consultation, and informed
consent'' at all stages involving their lands, territories, and traditional resources. We have formulated the Indigenous Peoples
Real-time Monitoring and Alerting
Protection and FPIC (Free, Prior, and Informed Consent) Rights Management Procedures, ensuring institutionalized
Utilize monitoring functions to promptly detect and
Develop Emergency Response Plans arrangements to fully respect community participation rights and benefit-sharing mechanisms.
prevent potential information leaks.
Create detailed plans for responding to information To deepen corporate-community collaboration mechanisms, the Company has established a deunity Relations Management
leaks, including rapid response procedures. Team and developed a multi-dimensional communication and collaboration platform. This team oversees and implements
Business Partner Security Management community development programs, and through regularized communication mechanisms, shares in a timely manner the
Regular Training and Education Assess and audit the information security Company's practical achievements in livelihood improvement, environmental protection, and related fields with the public,
Conduct information security training to management systems of business partners. shaping a responsible corporate citizen image.
enhance employees' awareness of security. To advance community governance innovation, we implement the ''Community Co-governance Initiative'', establishing a
resident council system that invites community members to actively participate in development planning, public decision-
making, and other critical processes. The Company operates an integrated online-offline public feedback system, including
This year, the Company continued to enhance information security protection capabilities in both software and hardware, community suggestion boxes, hotlines, and online platforms, forming an efficient demand-response mechanism. The
upgraded system architectures, constructed a digital hyper-converged platform, deployed backup hosts, implemented latest- Company applies closed-loop management to resident concerns, ensuring that every concern is addressed, and every
generation firewalls, and continuously refined and optimized its information security protection framework to ensure the response is provided, thereby enhancing the transparency of community governance and resident satisfaction.
secure and stable operation of business operations.
Establishing a New Data Center to Enhance Data Processing
Capacity and Information Security Protection Capabilities Social Care
This year, the Company established a new data center to enhance data processing capacity and information security
protection capabilities, ensuring the stable operation of corporate information systems, providing robust support for The Company adheres to the ''Business for Good'' development philosophy, continuously deepening its commitment to public
business development, and elevating the Company's overall informatization level. The newly built data center has welfare initiatives and prioritizing the creation of social value. We focus on socially vulnerable groups, and by establishing a
achieved significant results in improving data processing efficiency, reducing operational costs, enhancing business systematic philanthropic framework, we precisely implement public welfare programs such as educational assistance and
flexibility, and driving industrial upgrading. Additionally, the data center positively impacts the Company's overall elderly support, effectively improving the living conditions of underserved populations. This year, the Company donated RMB
information security and cybersecurity management standards, strengthens cybersecurity governance, improves 200,000 to an education foundation to specifically support basic education development and contributed another RMB
emergency response capabilities, and promotes regulatory compliance, all of which hold critical importance for the 200,000 to the Shandong Provincial Public Security Officers Welfare Foundation, dedicated to the compensation and welfare of
Company's long-term development and market competitiveness. public security police officers.
Nursing Home Visits: Warming the Hearts of the Elderly
This year, the Company conducted cybersecurity attack-defense simulation training for all employees in the Information The Company upholds the spirit of ''patriotism and family values'' and remains committed to caring for the elderly. In
Center, covering cybersecurity fundamentals, cybersecurity laws and regulations, practical attack-defense techniques, and February 2024, the Company organized employees to visit nursing homes in Gaoxin Subdistrict, Xidong Subdistrict,
cybersecurity strategy and planning. Through a theory-practice integrated training model, the program equipped employees Jiaoqiao Town, and Weiqiao Town in Zouping City, delivering financial subsidies, flour, and cooking oil to elderly
with foundational cybersecurity knowledge and hands-on skills, strengthened team collaboration and innovation capabilities, residents. Employees also engaged in warm conversations to understand the residents' recent living conditions and
and enhanced the Company's cybersecurity protection standards. convey New Year greetings.
This year, the Company has not experienced any data security incidents or breaches of customer privacy.
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Six Consecutive Years of Participating in the ''Sanyi of Sponsorship'' to
Support Underprivileged Students in Completing Their Education
Rural Revitalization
The Company actively engages in poverty alleviation and educational support initiatives, as well as other activities aimed The Company actively implements the national rural revitalization strategy and innovatively launches the ''Consumer-Assisted
at helping students from financially disadvantaged families who are diligent in their studies and have outstanding Agriculture'' initiative. By establishing a ''direct procurement from production origins + employee sharing'' model, the
academic and moral performance to successfully complete their education. Over the past six years, the Company has Company not only delivers fresh agricultural products directly from farms to employees' tables but also expands sales
allocated a total of RMB 600,000 in scholarships to students in Zouping City, supporting 300 students in continuing their channels through large-scale procurement, effectively helping farmers resolve sales challenges and achieve income growth.
education. This initiative establishes a sustainable development mechanism for corporate participation in rural revitalization.
Conducting Consumer-Assisted Agriculture to Promote Rural Prosperity and Development
In October 2024, the Company continued its ''Consumer-Assisted Agriculture'' initiative by directly procuring 25,000
kilograms of Huaniu apples from the origin of production. These specialty agricultural products, carrying profound
support for rural communities, reached employees' tables through a ''farm-to-table'' supply chain system. This approach
not only allowed all employees to share the sweetness of the harvest but also helped orchard farmers increase output
value. Over two consecutive years of implementation, this measure has effectively driven the standardization and
branding of the Huaniu apple industry, injecting sustained momentum into the transformation and upgrading of regional
specialty agriculture.
? Ceremony of ''Sanyi of Sponsorship'' ? The Company procures apples to support increased income for farmers.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
By building a compliance management system and adhering to business ethics
principles, Innovation New Material will continue to build the image of a responsible
market entity, steadily improve the level of corporate governance and risk
management, and create long-term value for shareholders and society.
Corporate
Governance
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Enhancing the Corporate Governance Board Diversity
Structure We place great emphasis on the diversity of the Board of Directors. When electing or appointing board members, we consider
factors such as age, gender, industry experience, and professional qualifications.
Innovation New Material strictly complies with the Company Law of the People's Republic of China, the Securities Law of the
People's Republic of China, the Code of Corporate Governance for Listed Companies, and other laws and regulations. The Committee Memberships
Company has established and refined a robust corporate governance structure, forming a decision-making, oversight, and
operational management framework centered on the Shareholders' General Meeting, Board of Directors, Supervisory Board, Compensation
Name Position Gender Age
and senior management. This framework effectively safeguards the legitimate rights and interests of the Company and its Audit Nomination Strategy and ESG
and Evaluation
shareholders. To ensure the Board of Directors fulfills its duties effectively, the Company regularly conducts operational Committee Committee Committee
Committee
efficiency evaluations of the Board and produces dedicated evaluation reports. The Company requires independent directors
and the Audit Committee to conduct annual performance reviews, with independent directors also undergoing independent Cui Lixin Chairman Male 56
reviews, all of which are documented in publicly disclosed special reports. For issues identified during evaluations, the
Company develops targeted improvement plans to continuously optimize the governance system. At the same time, the Wang Wei Director Male 58
Company actively fulfills its information disclosure obligations, continuously strengthens institutional development and
investor relations management, rigorously implements social responsibilities, and consistently elevates corporate governance Xu Feng Director Male 63
standards. For detailed information regarding the corporate governance structure, please refer to Chapter 4, ''Corporate
Governance'', in the 2024 Annual Report. Zhao
Director Male 49
Xiaoguang
Innova tion N ew Ma ter ia l' s Cor por a te Gover na nc e S tr uc tur e
Gao
Director Male 48
Shanghui
Shareholders' Meeting Audit Committee
Yin Qi Director Male 48
Board of Supervisors
Nomination Committee Independent
Xiong Hui Female 57
Board of Directors Director
Compensation and
Evaluation Committee Luo Independent
Male 60
Bingqin Director
Strategy and ESG
Senior Management Tang Independent
Committee Male 49
Jianguo Director
Board of Directors and Board of Supervisors
In accordance with national laws and regulations and the relevant provisions of the Articles of Association, the Company has
formulated internal control policies such as the Rules of Procedure for the Board of Directors, the Independent Directors Work As of the end of the reporting period,
Guidelines, and operating rules for specialized committees, establishing a scientific, effective, and accountability-driven
institutional framework. The Company continues to clarify the organizational structure, responsibilities, authorities, and
The Company's Board of Directors comprises including And
working procedures of each specialized committee of the Board of Directors to ensure standardized performance of duties.
During the reporting period, the Company's Board of Directors held 7 meetings, and specialized committees convened 8
meetings, reviewing and approving proposals including periodic reports, related-party transactions, revision of the articles of
association, external guarantees, use of raised funds and completion of some of the raised-capital investment projects. The
convening and conducting of the Board of Directors and specialized committee meetings were all in compliance with laws and
regulations.
Specialized Committees of the Board of Directors
The Board of Supervisors is responsible for exercising the independent oversight duties delegated by the Shareholders' The Company's Board of Directors has established four specialized committees—Strategy and ESG, Audit, Nomination, and
General Meeting, effectively overseeing corporate operations, financial management, internal control mechanisms, and the Compensation and Evaluation—to assist the Board in corporate governance. These committees fulfill their oversight and
performance of duties by directors and senior management. The Company's Board of Supervisors comprises 3 supervisors, deliberation responsibilities in accordance with the law, regularly report to the Board, and provide expert recommendations to
including 1 employee representative supervisor. During the reporting period, the Board of Supervisors held 7 meetings, with all support informed decision-making. The Audit Committee is composed entirely of Independent Directors, while the
convening and conducting procedures as well as proposal deliberation processes fully compliant with the requirements of the Nomination Committee, and Compensation and Evaluation Committee are chaired by Independent Directors.
Company's Articles of Association and the Rules of Procedure for the Board of Supervisors.
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Building a Robust Defense Line for
Enhancing Risk Management Capabilities
Business Ethics
The Company continuously strengthens its risk management capabilities, strictly complies with relevant laws and regulations, The Company places upholding business ethics at the core of its operations and resolutely opposes all unethical practices,
and has established internal risk management policies and procedures. By integrating the enterprise risk management including but not limited to bribery and corruption, asset misappropriation, and abuse of power for improper advantages. We
framework and risk management standards, the Company has built a comprehensive risk management system to ensure its strictly comply with the Company Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's
long-term development. Republic of China, the Anti-monopoly Law of the People's Republic of China, the Anti-Money Laundering Law of the People's
Republic of China and other relevant national laws and regulations. In doing so, we have formulated policies such as the Code
To strengthen prevention against potential risks, the Company has established the three lines of defense for risk management:
of Business Conduct, the Management Control Procedures for Anti-Foreign Bribery and Anti-Corruption, the Management
Control Procedures for Prohibition of Accepting Bribes or Using Other Means to Obtain Improper Advantages, the Control
Procedures for the Regulation of Ethical Standards to effectively regulate the operations of the Company and the employees'
Employees serve as the first line of defense, are responsible for daily internal code of conduct.
The first
line of defense controls, assess risks and take control of matters, and report to the
We continuously strengthen the development of anti-corruption and anti-monopoly management systems, establishing
management when necessary.
robust compliance review mechanisms for legal and disciplinary violations. The Company has designated the Board of
Directors as the highest authority overseeing business ethics and has established an Economic Oversight Department
responsible for investigating violations, as well as documenting investigation results and implementing corrective measures.
The finance department, legal department, and archive center act as the second
The second These efforts ensure comprehensive prevention and control of business ethics risks. Meanwhile, the Company conducts
line of defense, monitoring and inspecting the execution situation of the first
line of defense annual education and training programs on business ethics, integrity, and ideological and conduct standards, covering topics
line, ensuring comprehensive control of risks.
such as anti-corruption, anti-monopoly, and anti-unfair competition. These initiatives enhance employees' legal and
disciplinary awareness and ethical consciousness, establishing a comprehensive, multi-layered system to prevent and mitigate
The internal audit department acts as the third line of defense, responsible for ethical risks. During the reporting year, the Company conducted 10 business ethics-related training sessions, targeting middle
The third and senior management as well as personnel in marketing, procurement, engineering project management, human resources,
line of defense the internal audit and risk management review, ensuring the rigor of the
Company's internal risk controls. and finance, with a total participation of 944 employees. The training content covered legal knowledge dissemination and case
studies of typical scenarios. This year, the Company participated in the anti-monopoly training organized by the Shandong
Administration for Market Regulation.
In 2024, the Company had no violations of corruption, money laundering, unfair competition, bribery, extortion, and fraud that
would have a significant impact.
To further strengthen internal oversight and risk control, the Company has established a risk management system, responsible
for supervising and evaluating the risk management practices of internal departments and subsidiaries. The Company
conducts regular risk assessments and implements reporting and corrective actions for identified risks.
During the reporting year, the
Company conducted 10 business
Regular Assessments Reporting and Remediation Awareness Enhancement
ethics-related training sessions
The Company conducts an annual The Audit Department compiles The Company provides regular
focused risk assessment, assessment results and corrective internal compliance training
evaluating financial risks under a action recommendations and (online and offline) to strengthen
three-tier classification (critical, submits them to the Audit employees' legal and regulatory with a total participation of
significant, and general). Based on Committee. the Company compliance awareness and risk
the assessment results, the monitors the progress of prevention capabilities. employees
Company continuously improves remediation efforts, ensuring
the internal control system. closed-loop risk management.
laundering, unfair competition, bribery,
Furthermore, the Company has integrated ESG risk management, including climate change risks, into its overall risk
extortion, and fraud that would have a
management framework and established the Strategy and ESG Committee to oversee the identification, assessment, and
significant impact
control of ESG risks, thereby building comprehensive risk resilience across the enterprise.
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Supplier Integrity Initiatives Key ESG Performances7
The Company actively promotes supplier integrity initiatives, communicating As of the end of the reporting period,
integrity requirements to suppliers during the bidding process and requiring them
to sign an Integrity Commitment Agreement. Suppliers are also required to fully
Environmental KPIs
disclose to the Company any relevant business relationships they have with other
The signing rate of the Integrity Key Performance Indicators Unit 2024
suppliers, subcontractors, and sub-tier suppliers. When signing commercial
Agreement among all suppliers
contracts with suppliers, the Company mandates that all suppliers sign an Greenhouse Gas (GHG) Emission8
conducting business with the Company
Integrity Agreement as an annex to the contract. Additionally, the Company
has reached Total GHG emission (Scope 1+Scope 2) Tons (CO2 equivalent) 965,260.04
conducts regular compliance reviews related to supplier integrity to enhance
supply chain transparency and to severely crack down on any acts of corruption
or unfair competition. In strict compliance with the Company's relevant 100% Direct GHG emission (Scope 1) Tons (CO2 equivalent) 418,154.31
Indirect GHG emission (Scope 2) Tons (CO2 equivalent) 547,105.73
regulations, during the cooperation process, both parties are prohibited from
soliciting or accepting kickbacks, bribes, or other improper benefits in any form GHG Emission Intensity
during the collaboration. They must refrain from participating in activities such as
Aluminum billets Tons (CO2equivalent)/tons 0.14
banquets, entertainment, tourism, or other consumption-related events that
could compromise impartial decision-making. Additionally, both parties are Aluminum rods and cables Tons (CO2equivalent)/tons 0.12
strictly prohibited from engaging in any non-professional conduct that violates
Aluminum profiles Tons (CO2equivalent)/tons 0.85
national policies, laws, or regulations. In case of non-compliance, the supplier
must implement corrective and preventive action plans. If the supplier fails to Sheets, stripes, foils Tons (CO2equivalent)/tons 0.54
meet the Company's requirements, the Company will promptly terminate the
Tons (CO2equivalent) /10,000
relationship with the non-conforming supplier. Structural components 7.14
pieces
Energy
Total energy
Tons of standard coal 354,873.92
consumption
Total direct energy
Tons of standard coal 256,298.47
consumption
Gasoline Tons 246.53
Diesel Tons 1,004.84
Natural gas Cubic meters 208,787,380.19
Liquefied Petroleum Gas Tons 381.33
Acetylene Tons 18.17
Propane Tons 7.03
Total indirect energy
Tons of standard coal 98,575.45
consumption
Whistleblowing and Handling Mechanism Self-owned photovoltaic
kWh 42,339,896.00
power generation
The Company has continuously improved its whistleblowing mechanisms and formulated the Internal and External Grievance
Management and Control Procedures, providing dedicated whistleblowing email and hotline channels for employees,
suppliers, and the public. We encourage all stakeholders to actively report any potential legal or disciplinary violations or
breaches of business ethics through these transparent channels and commit to addressing complaints in a fair and
transparent manner, dedicated to building a clean business environment. Meanwhile, the Company has further strengthened
whistleblower privacy protections and standardized the management of whistleblowing information, supports anonymous
discrepancy between the total sum and the sum of the listed values in the data and ratios disclosed in this chapter, it is due to rounding.
reporting, and strictly prohibits any retaliation against whistleblowers. Any individual who engages in retaliation or
intimidation against whistleblowers or individuals involved in investigations will face penalties under the Company's Employee
and carbon neutrality data as well as energy data.
Reward and Disciplinary Policies. In severe cases, the Company will report to the public security authorities to handle and
firmly safeguard the whistleblowers' lawful rights to exercise their legal protections.
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Social KPIs
Key Performance Indicators Unit 2024 Key Performance Indicators Unit 2024
Energy Employment
Purchased electricity9 kWh 702,596,073.84 Total employees Person 11,458
Purchased steam GJ 205,826.94 Male Person 7,811
By gender
Water Resource Usage10 Female Person 3,647
Full-time employees Person 11,458
Total water withdrawal Tons 2,897,496.95 By employment type
Part-time employees Person 0
Wastewater
Dispatched workers Person 264
Total industrial wastewater discharged in compliance Tons 73,160.00 Workers besides employees Dispatched workers from
Concentration of Person 823
Ammonia Nitrogen Kg 175.07 contractors
substances in
wastewater by Number of new employees Person 6,699
Chemical Oxygen Demand Kg 3,832.00
category
Male management level employees Person 192
Waste Gas
Female management level
Person 27
Sulfur oxides (SOx) emission Tons 32.23 employees
Management level employees13 number and
Nitrogen oxides (NOx) emission Tons 189.53 proportion by gender Proportion of male management
% 87.67
level employees
Particulate matter (PM) emission Tons 57.57
Volatile organic compound (VOC) emission Tons 13.62 Proportion of female management
% 12.33
level employees
Waste
Mainland China employees Person 11,191
Total hazardous waste generated11 Tons 68,527.44 By region
Overseas Territories employees Person 267
Total hazardous waste treated Tons 69,174.44
Number of local staff employed Person 10,162
Total general industrial solid waste generated Tons 464,377.97
Total general industrial solid waste recycled Tons Employee turnover
Secondary Aluminum Recycling12 Employee turnover rate % 34.24
Total secondary aluminum recycled Tons 807,900.00 Employee Training
Training coverage % 100
Total employee training hours Hours 535,762
Male Hours 354,021.69
Total training hours by gender
Female Hours 181,740.31
generated by the Group's self-built power plants. Training hours per employee by gender
Female Hours 49.83
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Key Performance Indicators Unit 2024 Key Performance Indicators Unit 2024
Employee Training Suppliers
Production personnel Hours
Sales personnel Hours Total key tier 1 suppliers16 Units 86
Proportion of procurement from key tier 1 suppliers % 60
R&D personnel Hours
None-tier 1 key suppliers Units 0
Training hours per employee Finance personnel Hours
by employment type
Procurement personnel Hours Suppliers that passed onsite evaluation Units 1,364
Number of suppliers assessed to have significant
Management personnel Hours Units 0
Number of
Other admin and logistics Hours suppliers Percentage of suppliers with significant actual or potential
personnel participating in negative impacts that have taken corrective action or % 0
Employee Health and Safety evaluation and improvement plans
training
Number of suppliers with significant actual/potential negative
Lost work time due to work injuries Days 10,068 Units 0
impacts terminated
Employee
Cases 93 Total number of suppliers supported in corrective action plan
Number of work injury Units 32
implementation
incidents Contractor
Cases 0
Proportion of total transaction value attributed to suppliers based in main operating
% 77
Number of work-related Number of deaths region (Shandong province)
Person 0
fatalities
Anti-corruption
R&D Investment
Number of corruption lawsuits filed and concluded against the Company or its
Cases 0
Total R&D investment RMB 10,000 29,615.27 employees during the reporting period
Number of discrimination or harassment lawsuits filed and concluded against the
Total employees on R&D positions Person 493 Cases 0
Company or its employees during the reporting period
Social welfare Number of customer privacy data lawsuits filed and concluded against the Company or
Cases 0
its employees during the reporting period
Number of people assisted in social support programs Person 103
Number of conflict of interest lawsuits filed and concluded against the Company or its
Cases 0
Suppliers employees during the reporting period
Number of money laundering or insider trading cases filed and concluded against the
Total suppliers14 Units 2,539 Cases 0
Company or its employees during the reporting period
Mainland China Units 2,491
By region
Overseas Territories Units 48
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
GRI Index
For the 2024 reporting period, Innovation New Material prepared the Report with reference to the GRI Standards Disclosure Chapter(s)in the Report
Statement of Use
GRI Standards.
GRI 1 Used GRI 2 Governance
GRI 1: Foundation 2021
Enhancing the Corporate Governance,
GRI Standards Disclosure Chapter(s)in the Report 2-13 Delegation of responsibility for managing impacts Innovation New Material 2024 Annual
Report
GRI 2 The Organization and Its Reporting Practices
Role of the highest governance body in sustainability
reporting
Entities included in the organization's sustainability
reporting
Entities included in the organization's sustainability 2-16 Communication of critical concerns Sustainable Development Management
reporting
Collective knowledge of the highest governance
Evaluation of the performance of the highest
governance body
GRI 2 Activities and Workers
Promoting Workplace Equality and
Activities, value chain and other business About Innovation New Material, 2-19 Remuneration policies
relationships Sustainable Supply Chain Management
Innovation New Material in Figures
Key ESG Performances 2-21 Annual total compensation ratio /
GRI 2 Strategy, Policies, and Practices
GRI 2 Governance
Sustainable Development Management,
Building a Robust Defense Line for
Enhancing the Corporate Governance Business Ethics
Activities, value chain and other business
relationships Promoting Workplace Equality and
Innovation New Material 2024 Annual Diversity
Report
Building a Robust Defense Line for
Enhancing the Corporate Governance, 2-24 Embedding policy commitments
Nomination and selection of the highest governance Business Ethics
body
Annual Report 2-25 Processes to remediate negative impacts /
Enhancing the Corporate Governance,
Building a Robust Defense Line for
Business Ethics
Report
Compliance with laws and regulations Compliance
Enhancing the Corporate Governance, 2-27 No major incidents of violation
Role of the highest governance body in overseeing with laws and regulations
the management of impacts
Report 2-28 Membership associations /
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
GRI Standards Disclosure Chapter(s)in the Report GRI Standards Disclosure Chapter(s)in the Report
GRI 2 Stakeholder Engagement GRI 205: Anti-Corruption
Business Ethics
Promoting Workplace Equality and
Diversity 205-2
policies and procedures Business Ethics
GRI 3 Material Topics Building a Robust Defense Line for
Business Ethics
Stakeholders Communications,
Materiality Issue analysis GRI 206: Anti-Competitive Behavior
Stakeholders Communications, Legal actions for anti-competitive behavior, anti- Building a Robust Defense Line for
Materiality Issue analysis trust, and monopoly practices Business Ethics
GRI 207：Tax
GRI 201: Economic Performance
Innovation New Material 2024 Annual Stakeholder engagement and management of
Report concerns related to tax
Financial implications and other risks and 207-4 Country-by-country reporting /
opportunities due to climate change
GRI 301: Materials
Defined benefit plan obligations and other Promoting Workplace Equality and Designing Green and Low-carbon
retirement plans Diversity Products
Aluminum
GRI 202: Market Presence Building a Green Aluminum Production
Chain
Ratios of standard entry level wage by gender
compared to local minimum wage
Aluminum
Proportion of senior management hired from the Building a Low-Carbon Product
local community Ecosystem
Building a Green Aluminum Production
GRI 203: Indirect Economic Impacts
Chain
GRI 302: Energy
GRI 204: Procurement Practices 302-2 Energy consumption outside of the organization /
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
GRI Standards Disclosure Chapter(s)in the Report GRI Standards Disclosure Chapter(s)in the Report
GRI 302: Energy GRI 305：Emissions
Actively Address Climate Change ESG Highlight Performance in 2024
Building a Green Aluminum Production Actively Address Climate Change
Chain Building a Low-Carbon Product
Ecosystem
Innovation Led by Technology
Nitrogen oxides (NOx), sulfur oxides (SOx), and other
Empowerment 305-7 Key ESG Performances
significant air emissions
Actively Address Climate Change
GRI 306： Waste
Building a Green Aluminum Production
Reductions in energy requirements of products and
services 306-1
Building a Low-Carbon Product impacts Ecology
Ecosystem
Protecting the Harmony of Natural
GRI 303：Water and Effluents Ecology
Protecting the Harmony of Natural
Ecology 306-4 Waste diverted from disposal Key ESG Performances
Protecting the Harmony of Natural 306-5 Waste directed to disposal Key ESG Performances
Ecology
GRI 308：Supplier Environmental Assessment
New suppliers that were screened using
environmental criteria
Negative environmental impacts in the supply chains
GRI 304: Biodiversity and actions to be taken
Operational sites owned, leased, managed in, or GRI 401 Building a Sustainable Value Chain
New Employee Hiring Rate and Employee Turnover
biodiversity value outside protected areas 401-1 Key ESG Performances
Rate
Significant impacts of activities, products and
services on biodiversity 401-2
Temporary or Part-Time Employees) Diversity
Promoting Workplace Equality and
IUCN Red List species and national conservation list Diversity
species with habitats in areas affected by operations
GRI 402：Labor/Management Relations
GRI 305：Emissions
Minimum notice periods regarding operational
Implementing the Concept of Inherent
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
GRI Standards Disclosure Chapter(s)in the Report GRI Standards Disclosure Chapter(s)in the Report
GRI 403：Occupational Health and Safety GRI 409： Forced or Compulsory Labor
Hazard identification, risk assessment, and incident Implementing the Concept of Inherent Promoting Workplace Equality and
investigation Safety 409-1 Diversity,
Implementing the Concept of Inherent incidents of forced or compulsory labor
Safety
Worker participation, consultation, and Implementing the Concept of Inherent GRI 410： Security Practices
communication on occupational health and safety Safety Security personnel trained in human rights policies
Implementing the Concept of Inherent or procedures
Safety
GRI 411： Rights of Indigenous Peoples
Implementing the Concept of Inherent
Safety Incidents of violations involving rights of indigenous
Prevention and mitigation of occupational health 411-1 /
Implementing the Concept of Inherent peoples
Safety
relationships GRI 413 ：Local Communities
Workers covered by an occupational health and Implementing the Concept of Inherent Operations with local community engagement,
safety management system Safety impact assessments, and development programs
Implementing the Concept of Inherent
Safety 413-2 /
negative impacts on local communities
Implementing the Concept of Inherent
Safety GRI 414： Supplier Social Assessment
GRI 404：Training and Education New suppliers that were screened using social
criteria
Negative social impacts in the supply chain and
Programs for upgrading employee skills and 414-2 Sustainable Supply Chain Management
actions taken
assistance programs GRI 415: Public Policy
Percentage of employees receiving regular 415-1 Political contributions /
performance and career development reviews
GRI 416：Customer Health and Safety
GRI 405： Diversity and Equal Opportunities
Assessment of the health and safety impacts of
product and service categories
Ratio of basic salary and remuneration of women to
men 416-2 No occurrence of such incidents
and safety impacts of products and services
GRI 406： Non-discrimination
GRI 417： Marketing and Labeling
Incidents of discrimination and corrective actions Promoting Workplace Equality and
taken Diversity, 417-1
and labeling Experience
GRI 407：Freedom of Association and Collective Bargaining Incidents of non-compliance concerning product
and service information and labeling
Operations and suppliers in which the right to
Promoting Workplace Equality and Incidents of non-compliance concerning marketing
freedom 417-3 No occurrence of such incidents
of association and collective bargaining may be at
Sustainable Supply Chain Management
risk GRI 418：Customer Privacy
GRI 408： Child labor Innovation Led by Technology
Substantiated complaints concerning breaches of
Operations and suppliers at significant risk for customer privacy and losses of customer data
incidents of child labor
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Issue Index Table of the Guidelines No. 14 of Shanghai Stock Dimension Item No. Disclosure Topic Chapter(s) in the Report
Exchange for Self-Regulation of Listed Companies—
Sustainability Report (Trial)
Dimension Item No. Disclosure Topic Chapter(s) in the Report 13 Supply Chain Security Sustainable Supply Chain Management
Social 14 Sustainable Supply Chain Management
Medium-sized Enterprises
Protecting the Harmony of Natural
Ecology 15 Precision Control Ensures Quality
Quality
Protecting the Harmony of Natural
Ecology 16 Enhancing Customer Privacy Protection
Protection
Protecting the Harmony of Natural
Ecology 17 Employees
Cultivating Holistic Talent Development
Environmental
Protecting the Harmony of Natural
Ecology 18 Due Diligence Sustainable Supply Chain Management
Building a Green Aluminum Production 19 Stakeholder Engagement Stakeholder Communication
Chain related to
Anti-Commercial Bribery and Anti- Building a Robust Defense Line for Business
sustainable 20
Protecting the Harmony of Natural Corruption Ethics
Ecology
Building a Robust Defense Line for Business
Exploring New Potential of Secondary Ethics
Aluminum
Sustainable Circular Development Green and Low- Leading with Empowering Open Cooperation Corporate
Development for Sustainable Carbon, Building Technology, Driving Employees, Creating for a Win-Win Future Governance
Management Coexistence Our Home Together Innovation Together Prosperity Together
Innovation New Material Technology Co., Ltd. | 2024 Environmental, Social and Governance Report
Email address: zqb@innovationmetal.com
Contact number: 010-66536198
Company address: No. 1808, Floor 18, Excel Centre, Wudinghou Street, Xicheng District, Beijing
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