Stock Code：300437
Sustainability Report
Henan Qingshuiyuan Technology Co., Ltd.
Tel: 0391-6088788 Group WeChat Public Platform
Address: 100 meters west of the intersection of Kegong Road and Wenbo
Road, Huling High-tech Zone, Jiyuan City, Henan Province, China Henan Qingshuiyuan Technology Co., Ltd.
Email: dongshihui@qywt.com.cn
Website: http://www.qywt.com.cn
Content
About This Report 01 Governance as the Foundation: Innovation-Driven Leadership, Appendix 95
Upholding Integrity for Long-Term Co-creating Industrial Value
Chairman’s Statement 03
Effectiveness
Key Performance Indicator 95
About Qingshuiyuan 05 Indicator Index 101
Sustainable Development Governance 15 Igniting Innovation-Driven Development 50
Feedback Form 103
Corporate Honors 09 Party Building Leadership 20 Product and Service Safety and Quality 55
Strengthening Compliance Governance 21 Data Security and Customer Privacy Protection 59
Deepening Investor Relations Management 25 Responsible Supply Chain 61
ESG Performance Highlights 11 Adhering to Business Ethics 27
Green Development: Re?ning Uniting Efforts and Ful?lling R
Ecological and Environmental esponsibilities for a Better Future
Protection Practices
Addressing Climate Change 31 Strengthening the Foundation of Talent 77
Environmental Compliance Management 33 Empowering Career Development 83
Prudent Resource Management 45 Strictly Adhering to the Safety Bottom Line 85
Lean Material Management 50 Community Public Welfare 94
About This Report Report Quality Assurance
The Company strives to ensure the completeness, materiality, balance, and comparability of the information presented in this
report, systematically elaborating on the Company’s concepts, systems, practices, and performance in pursuing development,
This report is the annual sustainability report released by Henan Qingshuiyuan Technology Co., Ltd. (hereinafter referred to as economic growth, ecological protection, and social well-being. The Company guarantees the objectivity, accuracy, and complete-
“Qingshuiyuan,” “the Company,” or “we”). Prepared based on the principles of objectivity, standardization, transparency, and ness of the content in this report, confirming that there are no false records, misleading statements, or material omissions.
comprehensiveness, this report provides a detailed disclosure of the Company’s environmental, social, and governance (ESG) Through the release of this report, the Company aims to enhance its social responsibility management, strengthen communication
practices and performance for the year 2025. with stakeholders, and promote sustainable development.
Report Scope De?nitions
The reporting scope covers Henan Qingshuiyuan Technology Co., Ltd. as the parent entity, including its subsidiaries and affiliated
Term De?nition
companies. Unless otherwise specified, the scope of this report is consistent with that of the Company’s annual report.
Qingshuiyuan, the Company, We Henan Qingshuiyuan Technology Co., Ltd.
Report Period Qingyuan Water Treatment Jiyuan Qingyuan Water Treatment Co., Ltd.
Tongsheng Environment Henan Tongsheng Environmental Engineering Co., Ltd.
From January 1, 2025, to December 31, 2025 (hereinafter referred to as the “Reporting Period”). To enhance comparability and
forward-looking insights, certain information may be traced back to previous years or include forward-looking statements where Ande Technological Shaanxi Ande Technological Industry Co., Ltd.
appropriate.
Aichi Environmental Protection Aichi Environmental Protection Co., Ltd.
Siweida Jiyuan Siweida Environmental Protection Technology Co., Ltd.
Report Cycle
Shuiyunzong Henan Shuiyunzong Intelligent Control Technology Co., Ltd.
The sustainability report of Henan Qingshuiyuan Technology Co., Ltd. is an annual report, released once per year, consistent with
Qingshuiyuan Shanghai Qingshuiyuan (Shanghai) Environmental Protection Technology Co., Ltd.
the financial reporting cycle.
Basis of Preparation Report Access
Shenzhen Stock Exchange Self-Regulatory Guideline for Listed Companies No. 17 – Sustainability Report (Trial) This report is published in electronic format. You may download the electronic version of this report from the Shenzhen Stock
Exchange website (www.szse.cn) or the Company’s official website (http://www.qywt.com.cn/) to obtain more information about
Shenzhen Stock Exchange Self-Regulatory Guide for Listed Companies No. 3 – Compilation of Sustainability Reports (2026
the Company. Should you have any questions or suggestions regarding this report, you may send an email to dongshihui@qy-
Revision)
wt.com.cn or call 0391-6089342.
General Framework of China Corporate Sustainability Report Guide (CASS-ESG 6.0) by the Chinese Academy of Social Sciences
Global Reporting Initiative (GRI) Sustainability Reporting Standards (GRI Standards) (2021 Edition)
United Nations Sustainable Development Goals (SDGs) Feedback
Guidelines on High-Standard Fulfillment of Social Responsibilities by Central Enterprises in the New Era issued by the Sta
Should you have any opinions or suggestions regarding the Company’s sustainable development, please feel free to provide
feedback via the contact information below, helping us continuously improve our report.
Data Description Company Telephone: 0391-6089342
Company Website: http://www.qsygroup.cn/
The data used in this report are derived from sources including, but not limited to, the Company’s actual operational raw data,
Company Email: dongshihui@qywt.com.cn
publicly available data from government authorities, annual financial data, internal statistical statements, third-party question-
naires, and third-party evaluation interviews. The financial data presented in this report are denominated in Renminbi (RMB). In Address: 100 meters west of the intersection of Kegong Road and Wenbo Road, Huling High-tech Zone, Jiyuan City, Henan
the event of any discrepancies with the financial reports, the financial reports shall prevail. Province, China
Chairman’s Statement
Talent as the Cornerstone:
The year 2025 marks the final year of China’s 14th Five-Year Plan and a pivotal year for Qingshuiyuan as we forged
ahead under pressure and achieved comprehensive progress on our journey toward the “dual carbon” goals. Gathering Innovation Momentum with the Spirit of Enterprise
Looking back, we have navigated the tides of our time with technology as our oar and sustainability as our sail.
Moving forward, we will continue to uphold our core philosophy of “building a century-old enterprise that benefits We firmly believe that talent is the Company’ s most valuable asset and the wellspring of high-quality development. Adhering
society and serves the world,” breaking new ground amid changes and steadily advancing along the path of to a “people-oriented” approach, the Company has established dual career development pathways, running parallel for manage-
high-quality development. ment and non-management personnel, providing every employee with a ladder for growth. We have continuously improved our
compensation, benefits, and performance management systems, achieving 100% labor contract signing rate, 100% social insur-
ance coverage rate, and 100% employee health examination coverage. In 2025, through regular employee care initiatives, hard-
ship support programs, and a variety of cultural and sports activities, we are committed to fostering an inclusive, fair, and har-
monious workplace where every striving individual can realize their potential and create value on the Qingshuiyuan platform,
Innovation at the Core: collectively building the enduring strength for the Company’ s century-long sustainable development.
Lighting the Way to Green Transformation with Technology
We firmly believe that technological innovation is a powerful driver of green development. During the Reporting Period, leverag-
ing innovation platforms such as the Henan Provincial Water Treatment Agent Engineering Technology Research Center and the Staying True to Our Mission and
Henan International Joint Laboratory of Smart Water Treatment Systems, and deepening industry-academia-research collabora-
Setting Sail on a New Journey
tion with Zhejiang University, the Company advanced the process optimization and upgrading of polymer products including
PESA, AA/MA, and PAA. Our self-developed “Shuiyunzong Industrial Internet Platform” deeply integrates sensors, artificial intelli- At the new starting point of 2026, Qingshuiyuan will continue to safeguard lucid waters and lush mountains with dedication and
gence, and the industrial internet to enable full-lifecycle intelligent control of industrial water systems, driving intelligent drive industrial upgrading with innovation, steadily advancing toward our ambitious vision of becoming a “domestic first-class,
upgrading across the industry. In 2025, the Company was granted 11 utility model patents, 2 software copyrights, and 4 inven- world-leading environmental protection enterprise.” We firmly believe that no matter how long the road, steady steps will lead
tion patents, and took a leading role in participating in the formulation and revision of several national and industry standards. to the destination; no matter how difficult the task, persistent effort will bring success. Let us join hands with all sectors of
Through solid research achievements, we have fulfilled our commitment to driving green industrial upgrading through techno- society, harness the power of technology and the spirit of responsibility, and work together to paint a magnificent picture of
logical innovation. sustainable development, contributing the strength of Qingshuiyuan to building a beautiful China and achieving global carbon
neutrality goals.
Responsibility as the Foundation:
Building a Strong Base for Development with Green Governance
We are deeply aware that protecting lucid waters and lush mountains is a fundamental corporate responsibility. The Company
has placed environmental compliance management at a strategic level and established an environmental responsibility system Chairman: Wang Zhiqing
covering the entire operational process. All five of our subsidiaries have obtained ISO 14001 environmental management system
certification. During the Reporting Period, neither the Company nor its subsidiaries recorded any environmental penalties, and
all pollutants were stably discharged in compliance with relevant standards. Furthermore, we actively promoted cleaner produc-
tion and circular economy principles, implementing energy-saving and waste-reduction projects such as condensate water
recovery and by-product deep processing, while comprehensively promoting the use of electric forklifts, hybrid official vehicles,
and electric stoves, effectively reducing our operational carbon footprint. At the same time, we have actively responded to the
national “dual carbon” goals by integrating climate change response into our governance framework, taking concrete actions to
solidify the green foundation for sustainable development and striving to become a steadfast guardian of a beautiful China.
About Qingshuiyuan Company Culture
Company Profile
Core Philosophy
To build a century-old
enterprise that benefits
Qingshuiyuan was founded in Stock Code Products are exported to
society and serves the world.
and regions
Henan Qingshuiyuan Technology Co., Ltd. was founded in 1995
and is an environmental protection technology enterprise special-
izing in the R&D, production, sales, and service of water treatment
chemicals. The Company is headquartered in the Jiyuan High-tech
Industrial Development Zone, Henan Province, with subsidiaries in
Beijing, Shanghai, Shaanxi, Henan, Hainan, and the United States.
Among these, three wholly-owned subsidiaries are national-level
high-tech enterprises. On April 23, 2015, the Company was listed
on the Growth Enterprise Market (GEM) of the Shenzhen Stock
Exchange (Stock Code: 300437). The Company has obtained AEO
advanced certification, and its products are exported to more than
The Company focuses on innovative development along the
environmental protection industry chain centered on water, with
two core business segments: the industrial water treatment
segment (including chemical R&D, production, and sales; Shuiyun-
zong intelligent services; and treatment of complex industrial wastewater) and the ecological and environmental protection segment
(including municipal engineering, rural domestic sewage treatment, ecological restoration, and river course management). The Company
currently has an annual designed production capacity of over 200,000 tons, covering 8 series and more than 60 types of water treatment
chemicals and derivatives, including scale inhibitors, dispersants, scale and corrosion inhibitors, biocides and preservatives, oilfield auxilia-
ries, daily chemical auxiliaries, textile and printing auxiliaries, and papermaking auxiliaries. These products are widely used in industries Corporate Spirit
such as chemicals, steel, power, metallurgy, daily chemicals, laundry, textiles, and printing and dyeing.
Qingshuiyuan is committed to transforming from traditional chemical production to intelligent terminal services. Leveraging more than Diligence, Perseverance,
Learning, Innovation.
technologies, the Company has independently developed an industrial internet platform for water treatment. This platform consists of
water quality monitoring sensors, intelligent water treatment terminal equipment, cloud service modules, and intelligent operation
systems, enabling online monitoring, intelligent chemical dosing, network transmission, anomaly alerts, and remote control for industrial
water systems. The platform provides customers with value-added intelligent services throughout the entire process, allowing clients to Corporate Vision
experience the value of “products + platform + services” and achieving the effects of “machine substitution” and “intelligent hospital,”
thereby driving the intelligent transformation of traditional water treatment service models. The “Intelligent Water Treatment Service To become a first-class
System Based on Industrial Internet Architecture” has reached the international advanced level for similar technologies.
domestic and world-leading
Qingshuiyuan adheres to a development strategy anchored by the R&D and production of water treatment chemicals and supported by
water treatment engineering. The Company remains committed to high-tech cultivation, asset-light operations, and high-quality develop- environmental protection
ment, striving to set benchmarks in the environmental protection industry and among listed companies. In the future, the Company aims enterprise.
to evolve into a modern environmental protection industry group integrating industrial water treatment, green energy-saving and environ-
mental protection technologies, ecological and environmental governance, new energy raw material production, intelligent water
treatment equipment manufacturing, and digital services, ultimately becoming a domestic first-class and world-leading environmental
protection enterprise.
Development History The Postdoctoral Innovation Practice Participated in and hosted the Symposium on Registration
Base (Qingshuiyuan) of Henan Province System Reform and Financing of Small and Medium-sized
was inaugurated. Enterprises (sponsored by Beijing Reform and Development
Qingshuiyuan hosted the Symposium Research Association).
Water Treatment Technologies, which Hand in Hand for Health” customer gratitude exchange activity
The predecessor of
Engineering Technology
Research Center for Water 2017 experts, scholars and entrepreneurs
from over 150 universities, research
ment.
the Group, Jiyuan Treatment Agents and Henan institutes and relevant enterprises in 26 Held the 2023 Partner “Summer Camp” themed “Building a
Qingyuan Water Provincial Enterprise Technology Fully acquired Shaanxi Ande provinces including Beijing, Shanghai Strong Body and Cultivating Both Civil and Military Skills”.
Treatment Co., Ltd., Center, and awarded the title of Technological Industry Co., Ltd. and Liaoning. Qingshuiyuan organized the launching ceremony of the
was founded. Key High-Tech Enterprise of the Signed a cooperation agreement thematic education on studying and implementing Xi Jinping
National Torch Program. Qingshuiyuan held the inaugural
with the Research Center for meeting of the General Party Branch. Thought on Socialism with Chinese Characteristics for a New
Eco-Environmental Sciences, Era.
Henan Qingshuiyu-
Technology R&D Center for Soil
Awarded the title of “Caring Unit” by the Communist Youth
League Henan Provincial Committee and Henan Provincial
an Technology Co., Youth Development Foundation.
Obtained the certification Pollution Prevention and
Ltd. was officially of the National Sanitation Ecological Remediation. The first table tennis interest class of Qingshuiyuan started.
established and Foundation (NSF) for five
listed. consecutive years.
Listed on the Shenzhen
Stock Exchange. Jointly established
Henan Shuiyunzong
Established Qingshuiyuan Intelligent Control
(Shanghai) Environmental Technology Co., Ltd.
Technology Co., Ltd.
The scientific and
technological achieve-
ment of the intelligent
water treatment service
system passed expert
evaluation.
Selected as one of the
Top 100 Private
Manufacturing
Enterprises in Henan.
Jiyuan Charity Federation · Qingshuiyuan
Fund was launched.
The Secretary of Henan Provincial Party
Committee inspected the R&D Center of
Qingshuiyuan, pointing out that efforts The 2024 Advanced Seminar on Operation
should be focused on key fields such as and Maintenance of Industrial Circulating
high-end instrument and meter manufactur- Cooling Water System and Intelligent
ing, optimize resource allocation, concen- Management Capacity Improvement,
trate efforts on tackling key problems, strive sponsored by the Industrial Water
new breakthroughs, so as to provide strong
Treatment Special Committee of the
Chemical Industry and Engineering Society
Established Aichi Environmental support for high-level scientific and of China and the National Industrial Water
Awarded the title Protection Co., Ltd. in the United technological innovation.
States. Treatment Information Center and undertak-
of National en by Qingshuiyuan, was held in Qingshui-
High-Tech Recognized as an AEO Advanced Certified
Established Beijing Marketing Established Jiyuan Enterprise by the customs. yuan.
Enterprise. Center. Qingyuan Water Treatment To celebrate the 103rd anniversary of the
Fully acquired Henan Tongsheng Co., Ltd., a wholly-owned founding of the Communist Party of China,
Environmental Engineering Co.,
Ltd.
subsidiary.
Established Jiyuan Siweida
and the Party Branch of Henan Yingyu Law
Environmental Technology Firm jointly carried out the “July 1st” Theme
The International Joint Laboratory of Henan Party Day Activity themed “Passing the
Elected as the Vice Co., Ltd., a wholly-owned Provincial Smart Water Treatment System was
Chairman Unit of the subsidiary. Torch to Stay True to the Original Aspira-
approved. tion, Forging Ahead with Majestic Wind to
Industrial Water Treatment
Established Hainan Free
Chemical Industry and Trade Zone Qingshuiyuan Institute of Zhengzhou University was signed and
Environmental Technology The first session of the fourth member
Engineering Society of inaugurated. congress and the first session of the fourth
Elected as a member unit of the Co., Ltd., a wholly-owned
Water Treatment Agent China. Qingshuiyuan hosted the China Industrial WaterCon- council of Jiyuan Quality Association,
subsidiary.
Subcommittee of the National ference and the 40th Annual Meeting, and won the co-sponsored by the Market Supervision
Technical Committee for Technical Innovation Award, Development Leader and Administration Bureau of the Demon-
Standardization of Chemicals. Award, Excellent Member Award, Young Elite Award stration Zone and Jiyuan Quality Associa-
and Outstanding Contribution Award. tion, was held in Qingshuiyuan.
Corporate Honors 2025 Milestones
February
Party Secretary of the Demonstration Zone Management Committee and Secretary of the Municipal Party
Committee visited Qingshuiyuan Technology. He emphasized that enterprises should strengthen technological
innovation capabilities, enhance quality and brand building, continuously improve comprehensive competitive-
ness, and further consolidate Jiyuan’s leading position in advantageous industries.
April
Director of the Demonstration Zone Management Committee and Mayor of the Municipal City conducted an
in-depth inspection of Qingshuiyuan’s Huling intelligent base. He highlighted the need to activate development
momentum through innovation and to cultivate a fertile ground for industry through targeted policies.
June
Qingshuiyuan Environment Governance and Green Development Conference, hosted by Qingshuiyuan and
the Beijing Reform and Development Research Institute and co-organized by the Chinese Academy of Social
Sciences Executive Finance and Economics Training Program and the Industrial Water Treatment Professional
Committee of the Chinese Chemical Society, was held in Jiyuan.
“Water Treatment Chemicals” Recognized as a “Caring Enterprise”
Qingshuiyuan held its 30th Anniversary and 10th Listing Anniversary Cooperation and Development Confer-
Products Received the “Famous Brand for ence.
Export” Designation The Jiyuan Advanced Chemical Materials Industry Chain Deputies Liaison Station was inaugurated at
Qingshuiyuan.
July
The First Election Conference of the CPC Henan Qingshuiyuan Technology Co., Ltd. Committee and Discipline
Inspection Committee was successfully held, electing the first committee leadership teams.
August
The Qingshuiyuan team won the First Prize for Group Taijiquan at the 2025 “Entrepreneur Cup” National
Taijiquan Competition.
The Henan Provincial Committee on Aging held the 2025 “Rural Revitalization · Caring for Education”
donation ceremony. Qingshuiyuan was awarded the title of “Caring Enterprise” by the Henan Provincial
Committee on Aging Foundation.
The Central Plains Doctoral Forum visited Qingshuiyuan, initiating a practical collaboration on deep
industry-academia-research integration.
Elected as “Vice Chairman Unit” of Established the Jiyuan Advanced Chemical November
Henan Private Enterprise Association Materials Industry Chain Deputies Liaison Station Director of the Demonstration Zone Management Committee and Mayor of the Municipal City visited
Qingshuiyuan to conduct a special inspection under the “Learn, Review, Rectify – Serving Enterprises through
Government Reflection” enterprise visit program.
Deputy Secretary of the Henan Provincial Committee of the Communist Youth League and delegation visited
Qingshuiyuan for inspection and discussion.
December
The Finance and Economy Working Committee of the Demonstration Zone People’s Congress conducted an
enforcement inspection of the Patent Law of the People’s Republic of China and the Henan Province Patent
Regulations.
More than 80 faculty and students from Huanghe University of Science and Technology visited Qingshuiyuan
for exchange.
Municipal People’s Congress deputies stationed in Shaoyuan Town conducted an off-site inspection of the
Company.
ESG Performance Highlights
Operating Revenue Total Tax Paid R&D Investment Workplace Safety
Investment
Economic Social
Performance Performance Labor Contract Supplier Integrity
Signing Rate Agreement Signing Rate
Social Insurance
Coverage Rate
Total Environmental Protection Total Greenhouse Gas
Investment Emissions
Environmental Business Ethics Pledge Number of Investor
Performance Total greenhouse gas emissions Sign-off Rate Inquiries Addressed
per million revenue
Coverage Rate
Governance as the
Foundation: Upholding
Integrity for Long-Term
Effectiveness
This chapter covers material ESG issues.
Sustainable Development Governance
Party Building Leadership
Strengthening Compliance Governance
Deepening Investor Relations Management
Adhering to Business Ethics
Sustainable Development Stakeholder Communication Channels and Frequency Areas of Concern
Harmonious employee relations
Governance
[Regular] Employee satisfaction surveys
Comprehensive compensation and benefits
Employees [Regular/Irregular] Employee representative congresses
Democratic management
[Irregular] Feedback sessions
Training and development
Henan Qingshuiyuan Technology Co., Ltd. has consistently been committed to integrating ESG principles throughout the Compa-
Customer rights protection
ny’s entire development process. The Company has established a comprehensive ESG governance system that not only strictly
[Regular] Customer satisfaction surveys Product quality and safety
adheres to compliance requirements and optimizes the governance framework but also continuously deepens its efforts in
Customers
environmental protection and social responsibility. Furthermore, the Company places great emphasis on the guiding role of ESG [Irregular] Customer meetings and exchanges Innovation-driven development
goals, demonstrating its corporate responsibility through tangible governance outcomes. By advancing its own sustainable devel- Privacy protection
opment, the Company actively promotes social harmony, achieving a mutually beneficial and win-win relationship between corpo-
rate and social value.
[Regular] Financial reports Investor rights protection
Shareholders and [Regular/Irregular] Shareholder meetings, company Information disclosure
announcements
Investors Investor communication
[Irregular] Earnings briefings, investor site visits, roadshows,
Sustainable Development Practices analyst meetings, etc. Shareholder returns
To solidify the foundation for sustainable development, the Company has incorporated ESG training into its management mecha- Suppliers and Business ethics
[Irregular] Supplier conferences, distributor conferences
nisms. Through targeted capacity-building for management and core positions, we strive to enhance the responsibility awareness Partners Supply chain management
and professional competence of all employees, ensuring that ESG goals are effectively integrated into daily operations.
Environmental protection
Communities [Irregular] Public welfare and charity activities
Social welfare
[Case Study] ESG Thematic Training
In 2025, the Company engaged instructors Compliance governance
Government and
from a third-party organization to conduct Tax compliance
Regulatory [Irregular] Research visits, symposiums
ESG thematic training, reviewing previous Party-building leadership
Authorities
ESG strategic achievements and outlining key Rural revitalization
ESG tasks and implementation pathways for
the new year. This initiative injected momen-
tum into enhancing long-term resilience and
fulfilling social responsibilities.
Training Session
Double Materiality Analysis
This year, the Company continued to refer to the assessment methodologies of domestic and international disclosure standards,
Stakeholder Engagement including the Shenzhen Stock Exchange Self-Regulatory Guideline for Listed Companies No. 17 - Sustainability Report (Trial) and
GRI 3: Material Topics 2021, applying the analytical perspectives of impact materiality and financial materiality to identify and
evaluate material topics for the year. The specific implementation steps are as follows:
The Company consistently values constructive interaction with its stakeholders. We have thoroughly identified and defined six
core stakeholder groups and, through diverse communication channels, actively listen, provide sincere feedback, and integrate
the needs of all parties into corporate decision-making. To deepen two-way communication, we have established multiple
communication channels to address stakeholder concerns and expectations. Through open dialogue, we build consensus;
through value co-creation, we seek mutual benefit. We are committed to working hand in hand with all partners to promote
long-term prosperity.
Double Materiality Topics
Topic Assessment Process Analysis Method
Environmental Compliance Management, Energy Utilization, Water Resource Utilization, Pollutant Discharge, Waste
Disposal, R&D Innovation-Driven Development, Responsible Supply Chain
trends, conduct industry analysis, and analyze the Company’s business model to identify
Understanding the stakeholders and the impacts, risks, and opportunities facing the Company.
Company Context
Refer to AA1000 to identif y stakeholders and respond to their demands and expectations. Financially Material Topics
opment Goals (SDGs), SASB, MSCI, Wind, and the latest exchange guidelines to update the
Initial Topic
Company’s topic library for 2025.
Screening
Impact Materiality Assessment Impact Materiality Topics
Review the Company’s performance on relevant topics to determine whether it has a signifi-
stakeholders through expert analysis. of Employees’ Legitimate Rights and Interests, Employee Training and Development, Information Security and
Topic Materiality
Assessment Financial Materiality Assessment Customer Privacy Protection, Product Safety and Quality, Social Contribution, Rural Revitalization, Anti-Bribery and
Anti-Corruption, Anti-Unfair Competition, Due Diligence, Stakeholder Engagement, Protection of Shareholders’
Analyze impacts, dependencies, and other factors, combined with expert judgment, to identify
and assess risks and opportunities under relevant topics, evaluating them based on the Rights and Interests, Standardized Corporate Governance
likelihood of occurrence, impact level, and time horizon of impact.
Topic Confirmation approved by relevant departments to ensure that the topics are disclosed transparently,
and Approval balanced, and comprehensively in the report.
Ethics in Science and Technology, Equal Treatment of Small and Medium-sized Enterprises (SMEs)
To ensure the timeliness and relevance of the topic assessment, during the Reporting Period, the Company prudently
updated and adjusted the materiality topic matrix based on previous years’ materiality survey data.
Notes:1. The Company’s core business does not involve research, development, or other activities in sensitive fields such as life
sciences or artificial intelligence ethics. Therefore, “Ethics in Science and Technology” is included as a related topic. 2. The
Materiality Matrix Company treats SMEs equally and has no overdue payments owed to SMEs. Therefore, “Equal Treatment of SMEs” is included as
a related topic. 3. The Company has not conducted ESG-specific due diligence work. However, the Company continuously carries
out risk management to identify and assess potential negative impacts arising from its operations. For further details, please refer
Circular Economy Information Security to the section on Strengthening Compliance Governance.
Ecosystem and Biodiversity Protec- and Privacy Protection Environmental Compliance Manage-
tion Product Safety and ment
Protection of Employees' Legal Rights Quality 1.Energy Utilization、Water Resource
and Interests Occupational Health Utilization
The
Employee Training and Development and Safety in Produc- 2.Pollutant Discharge
importance 3.Waste Disposal
Protection of Shareholders' Rights tion
of the and Interests 4.R&D Innovation-Driven Development
Social Contribution
economic, Standardized Corporate Governance Rural Revitalization Responsible Supply Chain
social, and Anti-Commercial Bribery and Due Diligence
environ- Anti-Corruption Stakeholder Communi-
Anti-Unfair Competition cation
mental
impacts
Ethics in Science and Technology Climate Change Response
Equal Treatment of Small and Medium-sized Enterprises (SMEs)
The importance to the company's finance
Sustainable Development Goals (SDGs) Party Building Leadership
The Company pays close attention to and actively implements the United Nations Sustainable Development Goals (SDGs),
integrating them into its corporate development strategy. We are unwaveringly committed to promoting green and low-carbon
transformation, actively fostering social harmony and co-creation, and striving for high-quality development. In serving the global
Party Organization Development
process of sustainable development, Qingshuiyuan contributes its responsible actions and pragmatic efforts.
Report Section Material Topics Our Objectives Responsed SDGs
The Company has always adhered to the leadership of the Party and established a robust Party organization framework, strength-
ESG Governance Improve the ESG governance system ening the leadership role of the Party Committee in setting directions, managing overarching priorities, and ensuring implementa-
tion. By consolidating the organizational foundation, strengthening ideological guidance, and building a strong team of Party
Reduce operational risks members, the Company continuously transforms its political advantages into developmental strengths, providing a strong political
guarantee for high-quality development.
Corporate Compliance Governance Ensure timely, accurate, and complete information
Governance disclosure and maintain good relationships with Key Performance
investors
No incidents of commercial bribery, corruption, or In 2025, the Company established the Party Committee Office and the Discipline Inspection Committee Office. It has a
Business Ethics
embezzlement total of 6 Party branches and 77 Party members.
Climate Change Response Reduce carbon emissions
During the Reporting Period, the Company solidly advanced Party discipline education and Party building practice activities.
Through diverse and varied forms, we cultivated the spiritual homeland of Party members, tempered Party spirit and forged team
Environmental Compliance Achieve compliant pollutant discharge with no environ- cohesion through subtle influence, continuously inspiring a vibrant and upward organizational vitality.
Management mental violations
Environmental
Protection
Resource Utilization Conserve energy and reduce consumption [Case Study] Viewing of the Commemoration of the 80th Anniversary of the Victory of the
Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War
Circular Economy and Avoid damage to surrounding ecosystems and environ-
Ecological Protection ment
On September 3, 2025, marking the 80th
anniversary of the victory of the Chinese
Innovation-Driven Develop-
Complete R&D projects on schedule People’s War of Resistance Against Japanese
ment
Aggression and the World Anti-Fascist War, the
Company’s Party Committee organized a viewing
Supply Chain Management Avoid supply chain security or disruption incidents of the military parade live broadcast. During the
event, all Party members wore their Party
Industry badges in an orderly and solemn manner.
Product Safety and Quality Ensure product quality complies with national standards
Value Viewing of the Military Parade
Customer Service Improve customer satisfaction
[Case Study] Patriotic Education Thematic Film Screening
Data Security and Privacy
Avoid data breach incidents
Protection
On September 18, 2025, the Company’s Party
Committee organized a patriotic education
Compliant Employment Avoid employment discrimination incidents
thematic film screening under the theme
“Remember History, Be Grateful to Heroes, Never
Employees Employee Career Develop- Maintain open career development pathways for Forget National Humiliation, Strive for
and ment and Training employees Self-Strengthening.” All Party members, proba-
Human Rights tionary Party members,
Occupational Health and Avoid workplace safety incidents and maintain zero new Film Screening Event
Safety occupational disease cases
Party recruitment targets, and some middle and senior management collectively watched the historical film Unit 731.
Through an immersive historical experience, the activity guided cadres and employees to seek their original aspirations
Give back to society and enhance public well-being from hardship and draw strength from victory, building a solid ideological foundation for resisting corruption and moral
Social
Public Welfare and Charity through sustained charitable donations and public decay. After the screening, participants expressed that they would translate their feelings into work motivation, carry
Contribution
welfare activities forward the red legacy, and continue the spiritual lineage.
Strengthening Compliance Key Performance
Governance
Proportion of I Number of Number of
Special Committee ndependent Directors Meetings Held Proposals Reviewed
Audit Committee 3/3 5 19
Remuneration and Assessment Committee 2/3 1 2
Qingshuiyuan strictly complies with the Company Law, the Securities Law, the Shenzhen Stock Exchange Listing Rules, Strategy Committee 2/5 1 1
and other relevant laws and regulations, and has formulated the Company’s Articles of Association. The Company has Nomination Committee 2/3 3 3
always adhered to Party leadership, continuously improving the governance system comprising the Shareholders’ Meet-
ing, the Board of Directors, and the management level, forming a governance structure with clearly defined rights and
responsibilities, effective checks and balances, and coordinated operations. By improving the comprehensive risk
The Company continuously promotes the diversification of Board member composition. By bringing together diverse professional
management and internal control mechanisms and strengthening internal audit supervision, the Company’s governance
backgrounds and industry perspectives, the Company enhances the scientific and comprehensive nature of decision-making,
efficiency has steadily improved, effectively promoting transformation and upgrading as well as high-quality develop-
stimulates innovative thinking, strengthens keen insight into diverse market demands, and effectively avoids decision-making bias.
ment.
Organizational Structure Chart Key Performance
Shareholders’ Meeting As of the end of the Reporting Period, the Company’s Board of Directors consisted of 9 members, including 3 indepen-
dent directors and 6 non-independent directors (including 1 employee representative director), with independent
directors accounting for 33.33%. In terms of gender composition, there were 6 male directors and 3 female directors,
with female directors accounting for 33.33%.
Board of Directors
Independent directors perform their duties in strict accordance with the Measures for the Management of Independent Directors
Remuneration and and other relevant systems, participating in corporate governance from an independent and objective standpoint, effectively
Strategy Committee Nomination Committee Audit Committee
Assessment Committee supervising the Company’s operations, and genuinely protecting the legitimate rights and interests of minority shareholders.
Leveraging their professional insights and industry resources, they provide recommendations for the Company’s strategy formula-
tion, technological innovation, industrial chain layout, and expansion into emerging fields. By fully exercising their functions in
Chairman of the Board decision-making, supervision, and advisory, independent directors have become a vital force in enhancing the quality of corporate
decision-making and optimizing the governance structure.
Board Secretary President
Key Performance
In 2025, the Company convened 8 Board of Directors meetings, adopted 38 Board resolutions, and achieved an
Office of the Office of Planning and Human Procurement Audit and average attendance rate of 100%.
Operations
Board of the Finance Resources and Tendering Supervision
Department
Directors President Department Department Center Department
Shareholders’ Meeting
Board of Directors As the highest authority of the Company, the Shareholders’ Meeting exercises decision-making authority over major matters in
accordance with the law, is responsible for electing and replacing directors, and reviews and approves financial reports and
amendments to the Company’s Articles of Association, ensuring compliant operations and the maximization of shareholder
The Company’s Board of Directors is the core of strategic decision-making, responsible for defining development directions, interests. The Company has formulated the Rules of Procedure for Shareholders’ Meetings to protect the legitimate rights and
reviewing major investment and operational matters, and supervising management in effective execution. The Company has interests of shareholders, improve the efficiency of Shareholders’ Meeting proceedings, and promote standardized corporate
established systems including the Rules of Procedure for the Board of Directors, the Working System for Independent Direc- operations. During the meetings, the Company’s directors and senior management attend and engage in in-depth exchanges on
tors, and the Detailed Rules for the Work of the Board Secretary, ensuring procedural standardization of decision-making and important issues raised by shareholders.
safeguarding the achievement of corporate goals and the maximization of shareholder interests.
To further enhance the level of governance professionalism, the Board of Directors has established four special committees: Key Performance
the Audit Committee, the Remuneration and Assessment Committee, the Strategy Committee, and the Nomination Commit-
tee. Corresponding working rules have been formulated for each committee to ensure compliant and efficient operations, In 2025, the Company convened 4 Shareholders’ Meetings and approved 18 proposals.
reasonable incentive mechanisms, scientific strategic planning, and manageable risks, collectively promoting efficient and
orderly corporate governance.
Director and Senior Management Remuneration [Case Study] Training on the Corporate Governance Code for Listed Companies (Revised Draft)
Management On November 10, 2025, the Company organized
training on key points of attention in the Corporate
Governance Code for Listed Companies (Revised
The Company has established the Remuneration and Assessment Committee under the Board of Directors, which serves as Draft). Through in-depth interpretation of the
the decision-making body for senior management compensation distribution and performance management, with a special revised content, the training further standardized
leading group established to advance specific work. Pursuant to the Company’s policies, senior management members adopt the conduct of directors, senior management,
an annual salary system, with the compensation structure consisting of a base salary and a performance-based salary, each controlling shareholders, and de facto controllers,
accounting for 50% of the total. The base salary is paid evenly on a monthly basis based on the senior management mem- continuously enhancing the Company’s gover-
ber’s monthly attendance. The performance-based salary is closely linked to the Company’s annual overall operating perfor- nance standards.
Training Session
mance and the achievement of each senior management member’s annual target responsibility agreement, reflecting the
principle of aligning incentives with accountability.
The Company has focused on improving its system and process framework, restructuring key areas such as compliance and legal
affairs, guiding all levels of the organization to complete supporting systems, and continuously refining the “comprehensive risk
control” system. At the same time, the Company has strengthened contract management, leveraging system upgrades and
rigorous review as key drivers to improve both the quality and efficiency of contract management.
Compliance Operations and Internal Control
Key Performance
The Company has established an internal control and risk management system covering risk identification, early warning,
tracking, and control based on the Audit Law, the Basic Standards for Enterprise Internal Control, and other laws and regula- In 2025, the Company conducted 5 legal training sessions.
tions, providing systematic guidance for risk management and ensuring that various risks are detectable and controllable. At
the same time, the Company has formulated rules and regulations including the Measures for Internal Control Management
and the Internal Control Evaluation System to solidify the foundation for internal control operations and improve management
standards. The Company has established an Internal Control Management Group, with the Chairman serving as the highest
leader, and members strictly implement a recusal system when conducting internal control evaluation work within their own
departments.
Internal Audit
[Case Study] Standardized Operations Self-Inspection
The Company’s internal audit work adheres to the twelve-character principle of “providing services, preventing risks, and improv-
During the Reporting Period, the Company organized its subsidiaries to conduct self-inspections on matters ing efficiency.” Based on the Internal Audit System, the Financial Audit Management Regulations, the Construction Project Audit
related to their production and operations, focusing on areas including external guarantees, external loans, finan- Management Regulations, and other policies, the Company continuously strengthens the audit supervision function, ensuring the
cial assistance, related-party transactions, fund occupation, as well as the procedural compliance of major matters orderly and standardized operation of the Company’s economic activities. Through audit supervision, the Company effectively
such as external investments, material contracts, and asset disposals. All subsidiaries completed the self-inspec- upholds the seriousness of national financial laws, regulations, and the Company’s internal rules, promotes integrity construction,
tions as required and submitted the Standardized Operations Self-Inspection Report, with no material violations enhances the Company’s self-discipline and self-supervision capabilities, and continuously improves management standards and
identified. economic performance. The Company has established the Audit and Supervision Department, which independently conducts
internal audit activities under the leadership of the Audit Committee of the Board of Directors.
The Company continuously carries out specialized compliance training, striving to foster a company-wide awareness of Key Performance
compliance, deeply integrating compliance requirements into daily conduct, and promoting the true internalization and exter-
nalization of compliance principles.
In 2025, the Company conducted 9 internal audits (including 5 exit audits), and its subsidiaries conducted 4 internal
audits.
[Case Study] Specialized Training on Standardized Operations and Compliance Performance
On June 26, 2025, the Company organized specialized
training on standardized operations and compliance
performance for listed companies, covering regulatory
environment interpretation, information disclosure
standards, handling of common and special transac-
Tax Management
tions, and key points for the performance of duties by
directors, supervisors, and senior management.
The Company strictly complies with tax laws and regulations, ensuring that all tax filings and payments comply with applicable
legal requirements. The Company has formulated the Financial Management System and the Tax Management System to
Training Session
standardize its tax management practices.
Measures for Preventing Tax Risks Investor Relations Management
fairness, the Company has formulated and strictly implements the Public Opinion Management System, establishing a comprehen-
sive public opinion management mechanism. Through a Public Opinion Processing Leading Group, the Company responds quickly
Conduct regular tax compliance self-inspections to ensure tax activities comply with tax laws and regulations to public opinion and carries out emergency response measures, creating a healthy and stable public opinion environment for
and to legitimately benefit from tax incentives. high-quality corporate development.
Communication and Exchanges
ency, builds consensus through communication, continuously strengthens investor confidence, attracts capital attention, and
safeguards the Company’s steady development and innovation-driven transformation.
Maintain good communication with tax authorities, proactively consult tax authorities on any tax-related uncer-
tainties, and stay informed of changes in tax policies and regulations.
[Case Study] Earnings Briefing
On May 20, 2025, the Company conducted an earnings briefing through the “Investor Relations Interactive Platform” of
Panorama Network, engaging in real-time online exchanges with investors. The Company’s management had candid
Deepening Investor Relations communications with investors on issues of concern, including operating performance, project progress, and industry
development, demonstrating the Company’s strong emphasis on investor relations management and its proactive stance
on transparent communication.
Management
Qingshuiyuan relies on the Investor Relations Management System and adheres to the fundamental principles of compliance,
equality, proactiveness, and integrity, establishing a transparent and smooth communication mechanism. Through timely and [Case Study] National Investor Protection Awareness Day
accurate information disclosure and regular two-way communication, the Company enhances investors’ understanding and recog-
nition of the Company’s strategy and value, continuously consolidates the foundation of mutual trust, and effectively protects the
legitimate rights and interests of investors. In May 2025, the Company organized a series of investor communication and
awareness activities centered around the theme of the seventh National Investor
Protection Awareness Day. During the activities, the Company organized internal
Information Disclosure
training for management and key departments on typical investor protection cases,
policies, and regulations. The Company also released special publicity materials to
expand the reach of its awareness campaign, effectively enhancing investors’
understanding of the Company’s investor protection efforts.
The Company fulfills its information disclosure obligations in a timely manner in accordance with the law, ensuring that disclosed
content is truthful, accurate, and complete, with language that is concise, clear, and easy to understand. By formulating the Internal Training Session
Information Disclosure Management System, the Company ensures that all investors have equal access to information regarding
the Company’s financial condition, operating results, and major matters. The Company publishes regular reports and interim
announcements through official channels and platforms designated by regulatory authorities, continuously maintaining good
communication with investors and steadily enhancing market trust. The Company’s information disclosure work evaluation result
for 2024-2025 was Grade B.
Key Performance
Key Performance In 2025, the Company maintained smooth investor communication channels. Throughout the year, the Company held 2
investor exchange sessions and hosted 1 on-site research visit. Through the Interactive Easy platform, the Company
In 2025, the Company disclosed 4 regular reports and 74 interim announcements to the public, and received no responded to 65 investor inquiries, and answered more than 200 investor hotline calls, promptly addressing market
penalties for violations related to information disclosure. concerns.
Adhering to Business Ethics
Complaints and Reporting
Adhering to the principles of “rigorous governance and timely handling,” the Company has formulated the Provisions on Complaint
and Reporting Management to ensure that various violations of rules and disciplines can be promptly discovered and addressed.
For individuals showing early signs of violating rules or disciplines, the Company provides timely education and warnings, guiding
them to strengthen their self-discipline and encouraging management at all levels to perform their duties lawfully, diligently, and
The Company places great emphasis on business ethics governance, strictly complying with the Anti-Unfair Competition Law, the with integrity. At the same time, the Company effectively protects the legitimate rights and interests of whistleblowers, strictly
Anti-Monopoly Law, the Provisional Regulations on the Prohibition of Commercial Bribery, and other relevant laws and regulations. prohibiting retaliation. Personnel accepting complaints must strictly maintain the confidentiality of whistleblowers’ names,
The Company continuously improves its integrity management system, resolutely prohibits illegal activities such as fraud, money workplaces, home addresses, telephone numbers, and other information.
laundering, commercial bribery, and unfair competition, safeguards the achievement of the Company’s operational objectives,
supports the sustained, stable, and healthy development of the enterprise, and effectively protects the legitimate rights and
interests of the Company and its shareholders.
Complaint Channels
Complaint Hotline: 0391-6082008
Email: qsysjb@qywt.com.cn
Complaint Address: Group Audit and Supervision Department
Anti-Corruption and Bribery Management
To prevent fraud, strengthen corporate governance and internal controls, reduce operational risks, and standardize professional
conduct, the Company has formulated the Provisions on the Anti-Fraud and Reporting Mechanism, clearly designating the Audit Anti-Unfair Competition Management
and Supervision Department as the standing body for anti-fraud work. This department is responsible for the organization, imple-
mentation, and independent evaluation of anti-fraud efforts, assists in conducting anti-fraud awareness activities, and reviews and
evaluates the establishment and implementation of anti-fraud control mechanisms. The Company places great importance on building and maintaining a fair and just market environment. It has drafted documents
including the Proposal for Law-Abiding and Compliant Operations and the Commitment Letter for Law-Abiding and Compliant
Operations, pledging to actively participate in market competition in accordance with the principle of fairness, resolutely opposing
Clean Practice in Employment the imposition of unreasonable restrictions on partners, comprehensively eliminating all forms of customer discrimination, and
committing to fostering a healthy and orderly market ecosystem. At the same time, the Company actively conducts training on
To effectively protect the interests of the Company and minority shareholders, the Company has formulated the Management anti-monopoly and fair competition, integrating the concept of anti-unfair competition into the corporate culture. During the
Regulations on Clean Practice in Employment, further strengthening integrity construction, standardizing the professional conduct Reporting Period, the Company was not involved in any lawsuits or material administrative penalties arising from unfair competi-
of key personnel, enhancing employees’ self-discipline and awareness of laws and regulations, effectively safeguarding the tion practices.
Company’s reputation, reducing operational risks, and fostering a clean and efficient working environment. During the Reporting
Period, the Company had no incidents of commercial bribery or corruption.
Supervision of Anti-Corruption and Anti-Bribery Among Business Partners
To regulate the conduct of procurement and tendering personnel, the Company has formulated the Code of Self-Discipline and
Integrity for Procurement Personnel, ensuring that procurement activities are standardized, efficient, and clean, achieving high
procurement quality and reasonable market prices, preventing violations of laws and regulations at the source, eliminating
commercial bribery, and ensuring that tendering and procurement activities are conducted lawfully, compliantly, healthily, and
orderly. At the same time, the Company signs Integrity Cooperation Agreements with its partners, clearly defining the integrity
responsibilities of the cooperating parties, requiring them to strictly comply with integrity management regulations, and encourag-
ing mutual supervision and restraint, continuously solidifying the foundation of clean cooperation.
Key Performance
In 2025, one director and one member of management each received training on anti-commercial bribery and anti-cor-
ruption, with each training session lasting 4 hours.
The signing rate for business ethics documents, including the Clean Practice in Employment regulations, was 100%.
Green Development:
Re?ning Ecological and
Environmental Protection
Practices
This chapter covers material ESG issues.
Addressing Climate Change
Environmental Compliance Management
Prudent Resource Management
Lean Material Management
Addressing Climate Change Risk/Op- Financial Impact Impact Likelihood of
Type Risk/Opportunity Description Response Measures
portunity Impact Cycle Level Occurrence
Continue to promote the
application of the Shuiyunzong
Digital transformation brings industrial internet platform,
Digital new opportunities to the
trans- Medium providing customers with
water treatment industry, value-added services such as
forma- Revenue to Long
Against the backdrop of increasingly severe global climate change and countries actively advancing green and low-carbon transi- helping customers save
Growth High High dynamic monitoring and intelligent
tion energy, reduce consumption, Term
tions, addressing climate change has become a core issue for corporate sustainable development. Qingshuiyuan deeply recogniz- oppor- dosing
and optimize operations
es the profound impact of climate change on the global economy, society, and its own operations. In response to the national tunities through intelligent means. Increase the integration of artificial
“dual carbon” goals and the call for ecological civilization construction, the Company integrates climate change mitigation into its intelligence and water treatment
Oppor-
development strategy. It is committed to enhancing resource utilization efficiency, reducing operational carbon footprints, and technologies
tunity
contributing to the synergistic development of society, the environment, and the enterprise through technological innovation and Focus on developing green water
management optimization. Market Growing market demand for treatment agent products such as
opportu- green and environmentally Medium low-phosphorus, nitrogen-free, and
nities for friendly water treatment Revenue to Long biodegradable ones
Growth High High
green agents provides opportuni- Term Expand the application scope of
product ties for upgrading the
Governance
new and efficient water treatment
demand Company’s product structure agents
Qingshuiyuan regards addressing climate change as a critical long-term sustainable development issue, actively incorporating Note: We define short-term, medium-term, and long-term impact cycles as 1–3 years, 3–5 years, and over 5 years, respectively;
climate-related risks and opportunities into its corporate governance system. The Company continuously identifies, assesses, and the levels of impact—high, medium, and low—are defined as severe, moderate, and slight impacts on the Company’s production
responds to physical and transition risks arising from climate change. The Company is dedicated to integrating low-carbon devel- and operations, respectively; the likelihood of occurrence—high, medium, and low—are defined as highly likely, moderately likely,
opment concepts into its business operations and strategic planning. By improving water use efficiency, optimizing production and unlikely to occur, respectively. The same applies below.
technologies, and exploring low-carbon green products, it steadily reduces its operational carbon emissions, supports the achieve-
ment of national “dual carbon” goals, and contributes to building a climate-resilient future.
Climate Transition Plan
Strategy The Company actively responds to the national carbon peak and carbon neutrality strategy, integrating low-carbon development
into its long-term planning. By continuously advancing energy-saving and carbon reduction technological upgrades, optimizing
production processes, and promoting green operations, the Company steadily improves energy utilization efficiency and reduces
carbon emission intensity. During the transition process, the Company proactively addresses financial and technological challeng-
To effectively address the challenges posed by climate change and seize potential opportunities, the Company has identified and es, adopts strategies such as phased implementation and external cooperation, steadily advances low-carbon goals, and is
analyzed climate-related risks and opportunities based on its specific circumstances. Corresponding implementation measures committed to achieving synergistic development of economic and environmental benefits.
have been formulated to continuously enhance its climate resilience.
Risk/Op- Financial Impact Impact Likelihood of
Type Risk/Opportunity Description Response Measures
portunity Impact Cycle Level Occurrence
Extreme weather events such as
Impact, Risk, and Opportunity Management
Increased Strengthen the disaster resistance
heavy rain, floods, and extreme
production Medium capacity of production facilities
Physical heat may damage production
facilities, disrupt supply chains, costs, to Short High Medium Develop emergency plans for
Risk hinder employee commutes, and extreme weather, conduct regular The Company identifies, assesses, and manages various risks, including climate-related ones, through a dynamic risk assessment
revenue Term
impact normal production and emergency drills to ensure disaster process. It regularly collects and analyzes internal and external information, combining factors such as national industrial policies,
losses resilience
operational activities. market competition, and resource supply to identify potential climate-related risks and opportunities. Develop corresponding
Closely monitor national industrial response strategies for identified significant risks.
As the nation advances its "dual policy developments
carbon" goals and water pollution Continuously increase environmen-
Policy control, stricter carbon emission tal protection investments to ensure
standards, water pollutant Increased Medium Risk Identification Risk Assessment Risk Response
and stable and compliant pollutant
discharge standards, or operational to Long Medium High discharge
Risk Legal environmental inspection costs Term Advance the research and
Risks requirements may be introduced,
development of green water By regularly collecting Use a combination of qualitative Develop differentiated response
increasing the Company’s industry policies, market
compliance costs. treatment agents to reduce the and quantitative methods to measures for risks and opportu-
environmental impact of products dynamics, and climate comprehensively assess nities of varying levels, establish
change-related data, and identified risks and opportuni- specialized task forces to
The accelerated low-carbon Adhere to technological and integrating them with the ties in terms of financial impact, advance implementation, clarify
transition in downstream product innovation, focusing on the Company’s actual production impact cycle, impact level, and responsible departments,
Market industries (such as chemicals, development of low-phosphorus, and operations, comprehen-
Potential likelihood of occurrence. implementation steps, and
and steel, and power) may impact the Medium biodegradable green water sively identify climate-related Determine the importance level timelines; establish emergency
reduction risks and opportunities across
Techno- demand structure for traditional to Long Medium Medium treatment agents of risks, prioritizing those with plans for major risks to ensure
water treatment products and in revenue multiple dimensions,
logical Term Expand applications in niche high impact and high likelihood, rapid response and effective
services. Simultaneously, capacity sources segments such as electronic including policy, technology, as well as high-potential handling when risks occur.
Risks expansions by leading industry market, and natural environ-
chemicals and new energy opportunities.
players intensify competition. materials ment.
Indicators and Targets
Indicators Unit 2025
Total greenhouse gas emissions tCO₂e 44,075.46
Total greenhouse gas emissions per million revenue tCO₂e 50.73 Qingshuiyuan ISO 14001 Shuiyunzong ISO 14001 Qingyuan Water Treatment ISO 14001
Environmental Management System Environmental Management System Environmental Management
Direct Greenhouse Gas Emissions(Scope.1) tCO₂e 97.30 Certification Certificate Certification Certificate System Certification Certificate
Indirect Greenhouse Gas Emissions (Scope.2) tCO₂e 43,978.16
Greenhouse Gas Emissions Management
To effectively manage greenhouse gas emissions, the Company primarily adopts the following measures: First, by optimizing
production processes and upgrading production equipment to improve energy utilization efficiency, thereby reducing emissions
at the source; second, through intelligent means such as the Shuiyunzong Industrial Internet Platform, helping customers optimize
the operation of circulating water systems, reducing energy losses in their industrial production processes, and indirectly achieving
collaborative emission reductions across the entire value chain. Currently, the Company is actively exploring and advancing the Tongsheng Environment ISO 14001 Qingshuiyuan Shanghai ISO 14001 Ande Technological ISO 14001
standardization process of greenhouse gas data accounting and management, laying the foundation for future carbon inventory Environmental Management System Environmental Management System Environmental Management System
and carbon verification work. Certification Certificate Certification Certificate Certification Certificate
During the Reporting Period, the Company did not experience any incidents of penalties imposed by environmental protection or
other relevant authorities due to violations of environmental management laws and regulations related to pollutant emissions,
leaks, or waste generation.
Environmental Compliance
Management Environmental Protection Training and Communication
The Company attaches great importance to environmental protection training and publicity, treating it as a key lever to enhance
the environmental awareness and compliance capabilities of all employees. During the Reporting Period, the Company continued
Qingshuiyuan consistently adheres to the environmental protection principle of “prevention first, combining prevention with to conduct regular environmental protection training. Through specialized lectures and other formats, employees received system-
control,” strictly complies with laws and regulations such as the Environmental Protection Law and the Law on the Prevention and atic training, which effectively strengthened their sense of responsibility for environmental protection and their ability to operate
Control of Environmental Pollution by Solid Waste, and ensures that all operations meet high-standard environmental requirements in compliance. This has driven the full integration of environmental requirements into all aspects of production and operations,
through measures such as improving environmental management systems and strengthening training and education, fully demon- laying a solid foundation for the Company’s environmental compliance management.
strating the Company’s proactive actions and solid achievements in environmental responsibility.
[Case Study] Specialized Training on Hazardous Waste Management Systems
Governance
On July 24, 2025, the Company organized specialized
training on hazardous waste management systems. The
To strengthen the foundation of environmental compliance governance, the Company has formulated and implemented systems training focused on systematically explaining relevant
including the Compilation of Environmental Protection Management Systems, Environmental Protection Assessment and regulations and standards concerning hazardous waste
Reward/Penalty Management System, and the Three Wastes Management System, establishing an environmental responsibility systems and pollution prevention. Relevant personnel
system that covers the entire process and all employees. By clarifying management responsibilities at all levels and strengthening from various departments participated in the training.
system implementation and assessment, the Company ensures that production and operational activities are always under strict This training effectively enhanced employees’ under-
compliance control, effectively enhancing environmental governance efficiency and providing a solid institutional guarantee for standing of standardized hazardous waste management,
the Company’s sustainable development. further solidifying the foundation of the Company’s
environmental compliance management.
As of the end of the Reporting Period, the Company and its five subsidiaries have all obtained ISO 14001 Environmental Manage-
ment System certification.
Strategy
Risk/Op- Financial Impact Impact Likelihood of
Type Risk/Opportunity Description Response Measures
portunity Impact Cycle Level Occurrence
Market Strengthen market research to
Increased national support for understand market demands.
To proactively address risks and opportunities in the field of environmental management, the Company adheres to a forward-look- Expan- the environmental protection Revenue/-
Short- Expand production scale and
ing strategic mindset. It deeply integrates environmental compliance requirements into the entire process of business sion industry and growing demand in Profit High High
term increase production capacity.
Oppor- the environmental protection Growth
decision-making, committed to promoting green and low-carbon transformation while safeguarding economic benefits, thereby market. Strengthen marketing and brand
achieving harmonious coexistence between corporate development and the Earth’s ecology. tunities building.
Actively monitor policy develop-
Obtain ments, strengthen communication
Risk/Op- Financial Impact Impact Likelihood of Oppor-
Type Risk/Opportunity Description Response Measures govern- and cooperation with government
portunity Impact Cycle Level Occurrence tunity Continuous strengthening of departments
environmental protection industry ment
Strengthen policy research, closely Policy Increase investment in environmen-
policies; the Company, leveraging subsidies
monitor developments in Medi- tal technology research and
Support its industry-leading advantages, and tax
Increased environmental policies, and ensure Medium High development to enhance the
Changes in environmental Oppor- is expected to benefit from um-term
Policy company operations comply with incentives environmental performance of
policies (such as stricter emission costs, environmental policy dividends,
and Medi- the latest regulations and tunities to reduce products
standards) may lead to increased reduced Medium Medium gaining more market opportuni-
Legal um-term standards. ties and financial support. operating Expand environmental business
operational costs for the profits. areas, participate in more
Risks Company. Improve the compliance system, costs.
establish and sound environmental environmental projects, and
management systems and improve market competitiveness
processes.
Conduct thorough environmental
Impact, Risk, and Opportunity Management
impact assessments before
introducing new technologies or
Improper application of new Increased processes.
technologies or processes may environ-
Tech- Strengthen the construction and
have negative environmental mental Medi- operational management of
nical impacts, such as exceeding Medium Medium
fines, um-term environmental protection facilities
emission standards for exhaust
Risk
gases or wastewater leading to increased to ensure pollutants are discharged
up to standard.
Environmental Risk Management Process
environmental penalties. costs.
Establish environmental monitoring
and emergency response The Company has established the Environmental Factor Identification, Evaluation, and Control Procedures, creating a systematic and
Risk
mechanisms. standardized environmental risk management process. This process covers four key stages: identification, evaluation, monitoring, and
control of environmental risks, ensuring effective management and mitigation of environmental risks.
Strengthen environmental
management and safety production
management to ensure company Risk Identification Risk Assessment Risk Monitoring Risk Management
operations comply with environ-
Environmental issues or safety mental and safety requirements.
Reputa- Medium
incidents may damage the Revenue Establish crisis response mecha- Comprehensively For identified environmental Continuously track Based on the results of risk
tion to Long High Medium identify environ- factors, a combination of the operational identification, assessment, and
Company’s reputation and affect Reduction nisms to promptly address and
Risk customer trust. Term handle environmental issues. mental factors in qualitative and quantitative status of risk points monitoring, the Company
Actively participate in environmen- activities, products, scoring methods is used. Direct through various implements tiered and catego-
tal protection public welfare or services through qualitative judgments are made methods, including rized risk control measures. For
activities to enhance social methods such as first, followed by scoring daily inspections, significant environmental factors,
recognition. process flow evaluations for the remaining special checks, key control measures are
analysis, on-site factors. The qualitative method online monitoring, implemented, including setting
inspections, and primarily employs the “Direct and third-party objectives and targets, develop-
Strengthen market research and questionnaires. Qualitative Judgment Method,” testing. ing management plans, improv-
flexibly adjust product structure and while the quantitative method ing operational control proce-
market strategies. mainly uses the “Multi-Factor dures or systems, conducting
Intensified market competition, Scoring Method” with five-di- emergency drills, and enhancing
Medium Reduce product prices through
changes in customer demands, Revenue
mensional quantitative scoring. personnel training.
Market technological innovation and cost
and fluctuations in raw material to Short High High
Risk Reduction control to enhance competitiveness.
prices may lead to product price Term
declines and reduced sales. Strengthen customer relationship
management, continuously improve
customer satisfaction and loyalty to
ensure stable market share. Environmental Hazard Investigation and Monitoring
Increase R&D investment and The Company has established a multi-level environmental hazard investigation mechanism, implementing a regular inspection
Increased
Techno- The continuous emergence of introduce outstanding talents and system with team-level inspections per shift, workshop manager inspections weekly, and environmental department inspections
production technological resources. monthly. Key areas such as leaks and spills from production equipment and pipelines, implementation of environmental manage-
logical more efficient and environmen-
tally friendly water treatment efficiency, Strengthen cooperation with ment measures, standardized management of hazardous waste, and configuration of environmental facilities are thoroughly
Oppor- Innova- Long
technologies provides opportuni- reduced High Medium universities, research institutions, investigated.
tunity tion ties for the Company’s -term etc., to jointly develop new
costs, and In 2025, the Company conducted a total of 14 monthly and comprehensive inspections, identifying and completing rectification
Oppor- technological upgrades and technologies and products.
increased for 12 environmental hazards, achieving a 100% rectification rate. For identified hazards, the Company strictly adheres to the “Four
tunities innovation. Promote and apply new technolo- No-Let-Go” principle, formulates specialized rectification plans, clarifies responsible departments and deadlines, and organizes
profits.
gies and products. follow-up inspections and acceptance to ensure closed-loop management from discovery to rectification, effectively preventing
environmental risks.
[Case Study] Environmental Hazard Rectification in 2025 Environmental Emergency Plan and Drills
The Company strictly complies with laws and regulations such as the Emergency Response Law and the Management Measures
During the Reporting Period, the Company carried out systematic rectification work for hazard points identified during
routine environmental inspections. For issues such as leaks at the soft connection flange of the Y metering tank on the for Emergency Plan for Emergencies. It has formulated the Emergency Plan for Sudden Environmental Events, the Management
third floor of Jiacha, leakage risks due to single valves on the gas phase pipe drain valves of the solid mother liquor kettle, System for Reporting Information on Sudden Environmental Events, and the Management System for Environmental Emergency
unsealed windows on the west side of the liquid chlorine storage area, and the absence of wooden drainage plugs in pump Plans, clearly defining the emergency response procedures and handling processes for sudden environmental events to ensure
containment dikes in the raw material area, the Company implemented targeted rectification measures, including replac-
ing PP elbows, adding double valves, closing windows, and replacing drainage plugs. Through these rectifications, the clear responsibilities and orderly response. Simultaneously, the Company conducts emergency plan training, promotion, and
Company promptly eliminated environmental risks in production processes, effectively preventing potential environmental practical drills to continuously test the feasibility and effectiveness of the plans. It conducts retrospective evaluations at least every
incidents such as material leaks or pollution spills due to equipment defects or management oversights, further enhancing three years, timely optimizes emergency mechanisms, and continuously enhances environmental emergency response and risk
the inherent environmental safety level of production facilities.
control capabilities.
Before Remediation After Remediation
Emergency Organization System Diagram
Emergency Rescue Command
Emergen- Emergen- Emergen- Volunteer Environ- Logistics Site Environmen-
The pp elbow connected to the soft connection at the flange of the y metering tank v1006 on the third
cy cy Rescue cy Fire mental Support Secu- tal Protec-
floor of jiacha was replaced due to leaks.
Command Team Medical Brigade Monitor- Team rity tion Facilities
Center Team ing Team Team Management
Office Team
Based on the degree of harm to the environment and people caused by sudden environmental events, the Company classifies
emergency response levels into Level 1, Level 2, and Level 3.
Replace the drain valve at the U-bend of the gas phase pipe of the solid mother liquor kettle with a Emergency resources required for mobilization
double valve.
Response Level Affected Scope Emergency resources required for mobilization
Level 1 Response Factory Area and Company emergency agencies, government departments, fire
(Social Level) Surroundings brigade, hospitals, neighboring friendly units, external experts, etc.
Level 2 Response Workshop and Company emergency agencies, nearby hospitals, other neighbor-
(Enterprise Level) Factory Area ing friendly units, etc.
Level 3 Response Local work
Company emergency agencies
(Workshop Level) or positions
Adjust the unsealed condition of the windows on the west side of the liquid chlorine storage.
For different types of environmental accidents, the Company initiates corresponding emergency procedures according to the
graded response requirements and carries out emergency response work.
Change the anti-spill containment for pumps in the raw material area to wooden drain plugs.
Emergency Response Procedure for Sudden Environmental Events [Case Study] Comprehensive Emergency Drill for Liquid Chlorine Leakage Accident
Accident Occurs On June 27, 2025, the Company organized a comprehensive emergency drill for liquid chlorine leakage, simulating a sudden
environmental event scenario where a leak occurred at the bottom discharge flange of Liquid Chlorine Tank B, leading to
On-site personnel report personnel poisoning. The drill covered the entire process, including hazard discovery, initial response, escalation of the
incident, emergency response, and on-site cleanup. Each emergency team had clear division of labor, coordinated effective-
Workshop director and Emergency Command Center Office take appropriate measures to control accident escalation ly, and successfully completed tasks such as personnel rescue, leak plugging, on-site decontamination, and environmental
and implement emergency isolation of the surrounding area monitoring. This drill effectively tested the feasibility and effectiveness of the emergency plan, honed the practical capabili-
ties of the emergency rescue team, and enhanced employees’ awareness and proficiency in emergency response during
unforeseen events. In response to issues identified during the drill, such as insufficient proficiency in operating fire hoses,
the Company promptly conducted specialized training and implemented corrective measures, achieving continuous improve-
Emergency Command Center Office reports to the Emergency Rescue Command Center ment and enhancement of emergency capabilities.
Emergency Rescue Command Center issues emergency response directives
Level I Response Level II Response Level III Response
All emergency teams take
their positions; report to All emergency teams take All emergency teams take
environmental protection their positions their positions
authorities
Indicators and Targets
Determine protection Determine protection Determine protection
distance and accident distance and accident distance and accident To continuously improve environmental performance, the Company has set clear annual environmental protection goals.
control plan control plan control plan Based on these goals, specific quantifiable management indicators have been established for various pollutants and resource
consumption to guide daily environmental management and clean production efforts. The main environmental protection
goals for 2025 include:
Carry out disposal,
rescue, evacuation, and Carry out disposal, Carry out disposal,
monitoring rescue, evacuation, etc. rescue, evacuation, etc. No occurrence of general or above-level environmental emergencies;
Effective operation of the environmental management system with continuous improvement, and no serious or
On-site protection and Issue emergency Issue emergency recurring non-conformities;
decontamination termination order termination order
Effective control of significant environmental factors, with a 100% environmental hazard rectification rate;
Issue emergency Accident investigation and Accident investigation and
termination order post-incident handling post-incident handling Solid waste and hazardous waste disposal in compliance with national requirements;
Follow-up monitoring,
personnel withdrawal
Accident investigation and
post-incident handling 100% compliance rate for exhaust gas and wastewater discharge standards;
Social-level accident Company-level accident Workshop-level accident 100% compliance rate for production wastewater, initial rainwater, and accident water discharge standards.
Performance Table
Pollutant Discharge
Key Indicators Unit 2025
Environmental Protection Investment RMB10,000 100.26
Pollution Discharge Status
Environmental Protection Training
As a key pollutant discharging entity, the Company strictly complies with the stipulations of the pollutant discharge permit to
control the total pollutant emissions. The Company’s primary gaseous pollutants are volatile organic compounds (VOCs), with an
Key Indicators Unit 2025
annual permitted total emission of 7.6893 tons. Other characteristic gaseous pollutants include formaldehyde, hydrogen chloride,
chlorine, methanol, chlorobenzene compounds, non-methane total hydrocarbons (NMTHC), ammonia, odor concentration, and
Number of environmental protection training sessions Times 27 hydrogen sulfide. The primary wastewater pollutants are chemical oxygen demand (COD) and ammonia nitrogen. Other character-
istic wastewater pollutants include pH, suspended solids (SS), five-day biochemical oxygen demand (BOD5), total phosphorus,
Number of participants in environmental protection training Person-times 754
volatile phenols, aniline compounds, total organic carbon (TOC), total nitrogen, petroleum hydrocarbons, sulfides, etc. According
to the technical specifications of the pollutant discharge permit, the wastewater discharge outlet is designated as a general
Duration of environmental protection training Hours 54
discharge outlet and does not have a permitted emission limit.
During the Reporting Period, the Company commissioned third-party agencies to conduct self-monitoring of waste gas, wastewa-
Waste Gas Emission ter, noise, soil, and groundwater, and obtained the Environmental Monitoring Report, Analysis Summary Report for the Leak
Detection and Repair (LDAR) System Construction Project, and the Self-Monitoring Report on Soil and Groundwater Environment.
The monitoring results indicate that all pollutants met the discharge standards.
Key Indicators Unit 2025
Waste Gas Emission Volume Tons 1.3
Volatile Organic Compounds (VOC) Tons 1.3
Pollutant Management
The Company prioritizes compliant pollutant management, having established and implemented the Three Wastes Management
Wastewater Discharge
System to standardize the full-process management of waste gas, wastewater, and solid waste generated during production and
operational activities. By equipping and continuously operating various environmental protection treatment facilities, and conduct-
Key Indicators Unit 2025 ing regular pollutant emission monitoring, the Company ensures stable and compliant discharge of all pollutants, and continuously
advances transparent environmental performance management and compliance improvement.
Wastewater discharge volume Tons 61,979.57
Chemical Oxygen Demand (COD) Tons 0.669
Ammonia Nitrogen (NH3-N) Tons 0.026 “Three Wastes” Management
Total phosphorus (calculated as P) Tons 0.01
Process tail gas generated from production and R&D activities is subject to strict control, requiring
Solid Waste Emissions environmental protection treatment facilities to operate around the clock. Key tail gas emission
Waste Gas points, such as those from the HEDP unit, are equipped with treatment facilities like two-stage
water spray absorption, and detailed operational records are maintained to standardize chemical
Key Indicators Unit 2025 Management dosing. Regular monitoring of fugitive and organized emissions at the plant boundary is conducted,
covering characteristic pollutants such as hydrogen chloride, NMTHC, arsenic, and lead, to ensure
Amount of hazardous waste generated Tons 96.514 stable and compliant waste gas emissions.
Hazardous Waste Disposal Volume Tons 96.514
Wastewater is collected and treated by category: production wastewater, equipment maintenance
Waste Engine Oil (HW08 Category Substances) Tons 0.555 wastewater, and the initial 30-minute rainwater runoff are directed to the wastewater treatment
station; domestic sewage is treated to meet standards before discharge. Chemical waste liquids
Waste Activated Carbon (HW37 Category Substances) Tons 93.35 Wastewater from R&D and laboratory processes are collected separately by category; waste acid and alkali
Management liquids, among others, are discharged into the chemical wastewater sump. Regular monitoring is
Phosphorus Slag (HW37 Category Substances) Tons 1.693 conducted on sewage discharge outlets, regulating tanks, and clear water tanks, with indicators
including COD, ammonia nitrogen, total phosphorus, heavy metals, and characteristic pollutants
such as acrylonitrile and adsorbable organic halides, to closely monitor water quality.
Sludge (HW37 Category Substances) Tons 0.466
Waste Filter Cloth (HW37 Category Substances) Tons 0.2
Solid waste is strictly classified according to the National Hazardous Waste List. The temporary
Online Monitoring Waste Liquid (HW49 Category Substances) Tons 0.25 storage facility on-site is constructed in compliance with the Pollution Control Standards for
Management of Hazardous Waste Storage, equipped with leak prevention, odor emission control, and exhaust gas
Other Pollutants recovery facilities to ensure environmental safety during storage. The safe disposal rate for both
general industrial solid waste and hazardous waste has reached 100%. In addition, regular monitor-
ing of noise at the factory boundary is conducted to ensure compliance with the Environmental
Conduct technical, environmental, economic, and comprehensive evaluations of implemented clean production solutions;
Waste Disposal Perform technical assessments of clean production solutions during the clean production audit process to provide feasibility
basis for company decision-making;
Establish a clean production information system to provide the entire plant with information on clean production technolo-
gies, processes, equipment, and products;
Waste Management System and Regulations Use non-toxic or low-toxicity, low-hazard raw materials to replace highly toxic and severely hazardous raw materials;
Adopt processes and equipment with high resource utilization rates and low pollutant generation to replace those with low
The Company has established a comprehensive waste management system, particularly for hazardous waste. A series of regula- resource utilization rates and high pollutant generation;
tions, including the Hazardous Waste Pollution Prevention and Control Responsibility System and the Hazardous Waste Manage- Comprehensively utilize or recycle waste, wastewater, and waste heat, etc. generated during the production process.
ment System, have been formulated to standardize the entire lifecycle management of hazardous waste, from generation, collec-
tion, and storage to transfer and disposal. Adopt pollution prevention and control technologies that can meet the national or local pollutant emission standards and
total pollutant discharge control targets.
Organizational Chart for Hazardous Waste Management Green Transportation
The Company actively takes measures to promote green transportation. By integrating transportation resources and optimizing
Principal Responsible Person transportation routes, transportation efficiency is improved. For transportation within a certain range, priority is given to new
energy vehicles. For heavy-duty transportation tasks, vehicles meeting China VI or higher emission standards are preferred, to
reduce carbon emissions and pollutant emissions during transportation. In daily operations, the Company strictly adheres to emer-
Deputy General Manager of Production Deputy General Manager of Materials gency control requirements for heavily polluted weather, suspends transportation by China V and lower-standard vehicles during
warning periods, and minimizes road transport volume as much as possible to reduce the impact of regional vehicle emissions.
Head of Environ-
mental Protection
Head of
Production
Head of
Equipment
Head of
Materials Green Office Office computers, printers, and other equipment are turned off promptly
Department Department Department Department The Company actively Electricity after work, eliminating standby power consumption.
advocates the concept of Conservation
Make rational use of natural light to reduce unnecessary lighting.
green office, integrating
energy conservation and
Environmental Director of Director of Director of consumption reduction into Water Strengthen daily inspections to prevent leaks and spills; turn off water
Director of Warehouse Conservation
the details of daily opera- fixtures immediately after use.
Protection Packaging PBTC PCL3 Work- Maintenance Supervisor
Officer Workshop Workshop shop Workshop tions. Through institutional-
ized management and full
participation, it continuous- Paper Promote double-sided printing; use recycled paper or electronic circulation
ly reduces resource Conservation for informal documents to reduce paper consumption.
consumption in office
processes, fostering a Office Standardize the item requisition process; implement an old-for-new princi-
low-carbon and environ- Supplies ple for non-planned labor protection supplies to reduce waste.
Waste Management Measures mentally friendly work
atmosphere.
During the Reporting Period, the Company strictly implemented the hazardous waste management plan, with all hazardous waste
being disposed of by qualified units. In 2025, the hazardous waste generated by the Company mainly included harmful compo-
nents such as phosphorus, organic phosphorus compounds, petroleum hydrocarbons, and polycyclic aromatic hydrocarbons from Green Products and Services
waste like phosphorus slag, spent activated carbon, waste filter cloth, sludge, and waste oil. All transfers of hazardous waste were
recorded and processed through the National Hazardous Waste Information Management System using electronic transfer As a leading enterprise in the manufacturing of specialized chemical materials for environmental pollution treatment, the Company
manifests, and external units were entrusted for compliant disposal. is consistently committed to the innovation and development of green products and services. By developing efficient and environ-
mentally friendly water treatment agent products, the Company provides customers with green solutions such as industrial water
treatment and circulating water reuse, assisting downstream enterprises in achieving water resource recycling and compliant
pollutant discharge. The Company’s products are widely used in areas such as scale and corrosion inhibition, sterilization and
preservation, and metal ion chelation. While meeting customer needs, they effectively reduce the environmental burden on
end-users, collaboratively addressing challenges in water resource protection and environmental management, and continuously
Green Operations contributing professional value to society’s green development.
Environmentally Friendly Green Chelating Agent
Water Treatment Agents Products
By studying the impact of catalyst microstructure on The Company has developed two novel green chelating agents
reaction mechanisms, the Company has successfully and their synthesis processes. The products feature environ-
Clean Production developed a novel corrosion inhibitor based on
low-cost, phosphorus-free, bio-based raw materials,
mentally friendly characteristics such as easy biodegradability
and non-toxicity. The new process produces fewer by-prod-
along with a green, low-energy consumption synthesis ucts, has a simple workflow, and a short production cycle,
To further advance clean production, the Company formulated and implemented the Clean Production Management System, process. This achievement represents a key technologi- meeting global green regulatory requirements. This product
establishing a clean production office within the production department to systematically promote the effective implementation cal breakthrough in the field of phosphorus-free water can efficiently replace phosphates in detergents, offering
of various clean production measures. Additionally, the effectiveness of clean production was incorporated into the performance treatment corrosion inhibitors, providing an innovative excellent chelating performance and rapid action on both
pathway to promote the industry’s development inorganic and organic stains, thereby strongly advancing the
appraisal system, forming an institutionalized and normalized management mechanism. towards environmental protection and high efficiency. greening process of the water treatment industry.
Ecosystem and Biodiversity Protection Strategy
The Company systematically identifies and assesses risks and opportunities related to resource utilization efficiency, formulating
As a company deeply rooted in water treatment and ecological environmental protection, Qingshuiyuan integrates biodiversity specialized management strategies to continuously enhance comprehensive resource utilization efficiency, thereby supporting the
protection into all aspects of its business development and daily operations. Leveraging its core business layout in industrial water
treatment and ecological restoration of river management, the Company safeguards ecological foundations and maintains ecosys- steady advancement of its green, low-carbon transformation and high-quality, efficient development.
tem balance through technological innovation and engineering practices. The Company is deeply engaged in the field of water
environment governance and has established a comprehensive technical system for river and black-odorous water body manage-
ment. Starting with external source pollution control and interception, and internal source dredging as prerequisites, it carries out Risk/Op- Financial Impact Impact Likelihood of
water environment governance to reduce the impact of water pollution on aquatic habitats from the source. Through water Type Risk/Opportunity Description Response Measures
portunity Impact Cycle Level Occurrence
ecological restoration, it reconstructs the aquatic ecological chain, contributing to the improvement of the water environment and
the stability of aquatic biological communities.
Establish facilities such as
Simultaneously, the Company strictly adheres to environmental compliance management requirements, following ecological water storage tanks and
protection regulations throughout the entire production and operation process. The entire lifecycle of its products has no impact rainwater collection systems
on ecosystems, species and their habitats, or biological genetic resources. Furthermore, by continuously optimizing environmental to cope with unexpected
measures in production and operations, implementing projects such as condensate water recovery and by-product deep process- water supply interruptions
ing for energy conservation and waste reduction, the Company reduces its impact on the surrounding ecological environment at and reasonably adjust
the operational level, earnestly fulfilling its responsibilities in the field of biodiversity protection as an environmental enterprise. In production processes during
the future, the Company will continue to be guided by the concept of green development, deeply integrating biodiversity protec- outages.
tion requirements into the research, development, and practices of businesses such as ecological restoration and water treatment. In the Company’s produc- Direct
tion process, key process economic Develop detailed emergency
It will empower ecological protection with technology, continuously contributing to maintaining ecosystem integrity and promot- plans for water and power
ing harmonious coexistence between humans and nature. facilities rely on stable losses
electricity and water caused by outages, clarifying the
supply. Power or water produc- emergency organizational
Physical outages can halt facility Medium structure, personnel responsi-
tion to Short High High
Risk operations, leading to interrup- bilities, and emergency
Term response procedures.
production line shutdowns, tions and
potential impacts on equip- Ensure power supply stability
product quality, and ment by relying on dual power
equipment damage. damage. sources from the Qingyuan
and Zhidu substations. Equip
key process facilities with
backup power sources such
Prudent Resource Management
as UPS and diesel generators
to ensure quick deployment
during power outages,
maintaining continuous
production line operation.
Qingshuiyuan adheres to laws and regulations such as the Water Law and the Energy Conservation Law, anchoring its direction
towards green energy development. Focusing on continuously improving its internal energy management system as a core
initiative, the Company steadily advances energy conservation, consumption reduction, and low-carbon development throughout Regarding energy manage-
its production and operation processes. ment, the Company may Strengthen technological
Risk face challenges such as research, development, and
immature application of innovation capabilities to
new energy technologies enhance the core competi-
(e.g., solar, wind), bottle- This may tiveness of proprietary
necks in energy storage lead to technologies.
Governance technology, and difficulties
in integrating with smart
invest-
ment
Medium
Introduce external technical
cooperation to learn from
Techni- grids. In terms of water failure
resource management, the and to Long High Medium and absorb advanced
cal Risk technologies and experienc-
Company may encounter increased Term
The Company has established Energy and es.
Resource Management Regulations, Energy
Energy Measurement Management Organization technical challenges such opera-
as high costs of membrane tional Establish a technology risk
Measurement Management Regulations, and technology, low treatment costs. assessment and early
Water Usage Management Regulations. It has efficiency, failure to meet warning mechanism to
built a full-process management system covering Deputy General Manager of Production promptly identify and
water quality standards,
the measurement, monitoring, conservation, and instability of intelligent address potential technical
utilization, consumption control, supervision, monitoring and control risks.
assessment, and accountability for energy and Production Department Equipment Department systems.
water resources. This system clarifies institution-
al responsibilities, daily supervision, record
management, energy and water-saving Enhance market research
measures, and reward/punishment mechanisms. and analysis to accurately
Regular professional training on energy measure- Trichlo- HEDP Workshop PBTC Packag- Energy Electrical Mainte-
rophos- (Hydroxye- Work- ing Measure- and nance
grasp market changes and
ment is conducted, covering basic knowledge, trends.
professional skills, and management capabilities, phane thylidene shop Work- ment Instru- Work- Market risks primarily stem
Diphosphonic shop Adminis- mentation shop
Resulting Establish flexible pricing and
to promote efficient resource utilization, energy from price fluctuations and in rising Medium
conservation, cost reduction, and efficiency Acid) trator Workshop Market marketing strategies to
demand changes in the costs and to Short Medium High adapt to changes in market
enhancement, ensuring sustainable business Risk energy and water resource declining Term
operations. demand.
markets. revenue
Diversify product lines and
service types to improve the
The Company’s Equipment Department is responsible for daily water usage management and supervision, completing daily water Company’s market adapt-
data recording and log maintenance. Each department manages and maintains the water facilities in its respective area, promptly ability.
identifying potential issues and continuously improving water resource utilization efficiency.
Risk/Op-
portunity
Type Risk/Opportunity Description
Financial
Impact
Impact
Cycle
Impact
Level
Likelihood of
Occurrence
Response Measures
Indicators and Targets
In the energy sector, the
rapid development of clean
energy technologies (such
as solar and wind power) Water Resource Management Goals
and smart grid technolo-
gies provides opportunities Conduct independent or
for the Company to reduce collaborative research and
energy consumption and development, focusing on By leveraging advanced water-saving technologies, optimizing production processes, and upgrading
Techno- improve utilization clean energy and water high-water-consumption equipment, we continuously enhance water resource utilization efficiency and
logical efficiency. In the water recycling technologies to
Growth gradually replace traditional the recycling of production wastewater.
Innova- resources sector, advance- in
tion ments in water recycling Long- energy sources and
revenue High High inefficient water usage
Oppor- technologies (such as and term
tunities membrane technology and measures. We scientifically formulate annual water usage control plans, establish a full-process water ledger
profit.
advanced oxidation Establish intelligent energy management system, and implement regular dynamic monitoring and refined control of water usage
processes) and efficient and water resource across the entire plant area.
water-saving technologies management systems to
Oppor- (such as smart irrigation achieve refined control and
tunity systems) create possibili- management. Through the stable operation of supporting water treatment facilities such as circulating cooling towers,
ties for enhancing water
resource utilization we deepen the tiered recycling of water resources, effectively reducing reliance on fresh water resources
efficiency and reducing in production operations.
consumption.
With increasing global We regularly conduct water-saving themed promotions and specialized skill training to continuously
Strengthen market research
emphasis on environmental and analysis to accurately strengthen awareness of water conservation and consumption reduction among all employees, fostering
protection and sustainable grasp market demand and an enterprise culture of water conservation with full participation and practice.
Market development, more development trends.
enterprises and individuals Increase
Expan- sales
sion are beginning to focus on Expand new products and
the conservation and revenue Medium services to meet the The above comprehensive control measures aim to systematically reduce water resource consumption and
Oppor- and Medium High
tunities efficient utilization of to Long differentiated needs of water pollutant emissions in production operations, ensuring the full implementation of the Company’s
energy and water resourc- enhance Term various customers.
market water resource management goals.
es, providing opportunities Enhance brand building and
for the Company to expand share.
market promotion to
its market share and improve the Company’s
explore new business visibility and reputation.
areas.
Impact, Risk, and Opportunity Management Energy Consumption Situation
Key Indicators Unit 2025
To ensure the sustainable use of resources, the Company has established standardized and systematic management processes to
comprehensively and effectively manage resource risks. Purchased Steam Million Kilojoules 325,834.03
Photovoltaic Electricity Consumption Ten Thousand Kilowatt-hours 100.5196
Risk Identification Risk Assessment Risk Monitoring Risk Management
Total Purchased Electricity Ten Thousand Kilowatt-hours 15,436.20
Natural Gas Ten Thousand Cubic Meters 4.5
The Company addresses Based on risk identifica- The Company Based on the results of
both macro and micro tion, the Company establishes an energy resource risk assessment, Total Purchased Heat Gigajoule 325,834.03
levels, focusing on employs a combination measurement system, the Company has
external factors such as of quantitative and regularly conducting formulated a series of Comprehensive Energy Consumption Tons of Standard Coal Equivalent 13,197.96
climate change, policy qualitative methods to statistical analysis of specific risk management
and regulatory changes, assess identified energy measurement measures, including the Comprehensive Energy Consumption Density Ton of Standard Coal/RMB Million Revenue 15.19
and uneven water resource risks. By and monitoring data to transformation and
resource distribution, as establishing a risk ensure accuracy and optimization of produc-
well as internal factors assessment model, we reliability. tion processes, strength-
like water usage, energy comprehensively ening water quality
consumption, and consider factors such as monitoring and energy Water Usage Status
resource utilization the likelihood of risk management, to
efficiency in the produc- occurrence, impact level, effectively prevent risks.
tion process. Through and duration to rank and Simultaneously, we have Key Indicators Unit 2025
regular research, data classify risks, clarifying established an emergen-
collection, and analysis, the priorities and focus cy response mechanism
we comprehensively areas for resource and developed detailed Total Water Consumption Ten Thousand Cubic Meters 28.80
identify potential risks in management. contingency plans to
the resource utilization address sudden resource Water Consumption Intensity 10,000 Cubic Meters/ RMB Million 0.033
process. shortage incidents.
Total Water Cycle and Reuse Tons 138,767.45
Water Resource Management Measures
Energy Saving and Emission Reduction Measures
During the Reporting Period, the Company established a water resource recycling system across multiple links and scenarios,
implementing various measures to enhance the efficiency of water reuse. Specific measures are as follows:
To further implement the concept of green development and continuously advance energy conservation, emission reduction, cost Establishing a circulating water tower to recycle water resources
reduction, and efficiency improvement, the Company will carry out comprehensive electrification transformation in 2025 across
all production and operation processes. This will focus on three core areas: kitchen energy, commuting vehicles, and production
equipment. By replacing traditional high-energy-consuming equipment such as fuel and gas-powered devices, the Company aims
Using circulating water from the recycling pool to regularly irrigate green belts and improve water quality
to optimize its energy usage structure. This initiative will not only effectively reduce environmental pollution and carbon emissions
but also significantly lower operational costs, achieving simultaneous improvements in both ecological and economic benefits.
Condensed steam from reaction kettles in various workshops is channeled into the circulating water system for reuse
[Case Study] Promotion of Electric Forklifts The closed-loop hot water from the initial cooler of the chlorination production line is channeled into the underfloor
heating system for cooling and heating in the office building.
In terms of production equipment, the Company’s
production department has fully replaced the
original diesel forklifts with electric forklifts.
Electric forklifts are powered by electricity,
producing zero exhaust emissions and operating
with low noise, aligning with the requirements for
clean production and green manufacturing in the
Lean Material Management
workshop.
Qingshuiyuan deeply recognizes the core value of efficient material utilization in resource conservation and ecological environ-
Electric Forklifts Used by the Company
mental protection. It strictly standardizes the entire process material management system, continuously improves the comprehen-
sive utilization efficiency of materials, and steadily promotes the transformation of the enterprise toward a green, low-carbon
circular economy development model.
[Case Study] Promotion of Hybrid Electric Vehicles
Material Management System
For official commuting purposes, the Company has replaced traditional fuel The Company has established systems such as the Warehouse Management System, clarifying the entire process of material
vehicles with hybrid electric vehicles. Hybrid electric vehicles combine the storage, inbound and outbound operations, inspection, inventory counting, safety, and hygiene. It clearly defines the responsibili-
advantages of both fuel and electric power, significantly reducing fuel ties and operational standards of various departments and ensures standardized and efficient management of warehouse materi-
consumption and exhaust emissions during operation. Energy costs are als through the control requirement of consistency between accounts, physical goods, and records. In addition, as of the end of
approximately 30%-40% lower compared to traditional fuel vehicles, effective-
the Reporting Period, the Company has obtained the Intermediate Bulk Container Certi?cate, certifying that the relevant compos-
ly reducing the Company’s carbon footprint.
ite intermediate bulk containers comply with the requirements of Chapter 6.5 of the International Maritime Dangerous Goods
Hybrid Electric Vehicles Used by Code, providing compliance and safety assurance for maritime transportation.
the Company
[Case Study] Promotion of Electric Stoves
In terms of logistics and catering support, the Company has fully replaced
traditional gas stoves with electric stoves. After switching to electric stoves,
open flames and exhaust emissions have been eliminated, significantly reduc-
ing kitchen fumes and harmful gas emissions, thereby optimizing the working
environment in the kitchen.
Electric Stoves Used by
the Company
Intermediate Bulk Container Certificate
Storage Management Hazardous Chemical Management
Through full-process control, regular supervision, and a closed-loop responsibility system, the Company ensures the effective Based on systems such as the Laboratory Chemical Management, Chemical Reagent Management and Safe Storage and Usage
implementation of both warehouse management and tax management systems, providing solid support for compliant operations. Regulations, and Security System for Access to Hazardous Waste Warehouses, the Company implements standardized manage-
ment and monitoring of the entire process of hazardous chemicals procurement, storage, usage, and recycling, effectively reduc-
ing storage and usage safety risks in production and operational activities.
Storage Inbound Outbound
Hazardous Chemical Procurement Management Hazardous Chemicals Storage Management
Strictly adhere to the Warehouse management Implement the principles
principles of “reasonable and personnel daily statistics of “first-in-first-out and Strictly screen suppliers with hazardous chemical Hazardous chemicals shall be stored in
safe placement, convenient on inventory and replacing the old with the production or sales qualifications. Procurement accordance with the principles of “classifica-
inspection, and formulate procurement new.” Designated and storage quantities are jointly verified by the tion, categorization, dedicated cabinets, and
first-in-first-out,” storing plans. Inbound operations personnel from the purchaser and the responsible person, and dedicated storage”, with clear hazardous
materials in designated areas are processed with production department overstocking is strictly prohibited. chemical lists posted. They shall be managed
based on their attributes. documentation, rejecting retrieve materials with by professionally trained personnel under a
Standardize material labeling substandard or incom- documentation, verify dual-person, dual-lock control system.
to ensure consistency plete materials. Procure- information, and
between accounts, records, ment orders are verified complete outbound
and physical goods, regulate against physical goods, operations. Administrators
handling operations, conduct and special materials issue documents and Hazardous Chemicals Usage Management Hazardous Chemicals Recovery Management
regular inventory checks, and require inspection and complete registration and
promptly address errors or documentation by accounting entries.
omissions. relevant departments.
Develop a usage plan specifying storage Implement unified recovery for hazardous
duration, location, and quantity, implementing a chemicals and their post-use packaging,
‘use-as-needed’ requisition system. Operators residual liquids, cleaning wastewater, etc.
must wear specialized protective equipment Designated personnel shall be responsible for
before commencing work. recovery and treatment, maintaining compre-
hensive records of the entire process.
Key Indicators Unit 2025
Total Usage of Packaging Materials Items 913,077
Paper-based packaging materials (woven bags, inner bags, etc.) Items 462,369
Hazardous Chemicals Storage Management Safety Notice Signage
Plastic-based packaging materials (packaging barrels, ton barrels) Items 440,363
Wood-based packaging materials (wooden pallets) Pallets 10,345
Consumption of Toxic and Hazardous Materials Tons 120,530.07
Innovation-Driven
Leadership, Co-cre-
ating Industrial
Value
This chapter covers material ESG issues.
Igniting Innovation-Driven Development
Product and Service Safety and Quality
Data Security and Customer Privacy Protection
Responsible Supply Chain
Igniting Innovation-Driven Strategy
Development The Company deeply implements the innovation-driven development strategy, comprehensively assesses potential risks and market
development opportunities in R&D, and formulates targeted measures around breakthroughs in core technology bottlenecks and
Qingshuiyuan positions scientific research and innovation as its core engine for growth, continuously strengthening the professional addressing actual market needs. It strives to accelerate technological iteration and upgrades, as well as the transformation and imple-
development of its R&D team. By optimizing R&D processes and improving collaborative mechanisms, the Company enhances mentation of R&D achievements, continuously consolidating its leading edge in product technology and steadily enhancing its core
research efficiency and the quality of outcomes. It also focuses on the transformation and industrial application of scientific and market competitiveness.
technological achievements, injecting momentum into the sustainable Shuiyunzong and healthy development of the industry.
Risk/Op- Risk/Opportunity Financial Impact Impact Likelihood of
Type Response Measures
portunity Description Impact Cycle Level Occurrence
Continuously enhance the Company’s
Governance technological R&D capabilities and
consolidate its leading advantage in new
technology fields. This includes increasing
R&D funding, attracting and cultivating
The Company strictly adheres to laws and regulations such as the Science and Technology Progress Law and has established a high-caliber R&D talent, and building an
efficient R&D management system.
regulatory system including the R&D Management System and the Research and Development Management System. This solidifies Decline in
Insufficient R&D investment or sales, Actively expand cooperation channels with
the foundation of R&D management, ensures the soundness and completeness of the R&D system, and clarifies that the R&D Center
process defects may affect compensa- domestic and international research
oversees core tasks such as company-wide R&D project management and R&D archives management. Additionally, the Company has Tech- Medium institutions, universities, and industry
product quality and production tion Medium
nical to Long Medium peers. Utilize models such as technology
formulated incentive systems like the Innovation Technology Reward Measures to fully mobilize employee’s enthusiasm and initiative safety; losses due to expenses,
Risk Term introduction and joint R&D to reduce the
slower-than-expected technolog- increased
in conducting scientific research, development, and technological innovation. This drives continuous advancement in enterprise ical innovation iteration. operational difficulty and uncertainty of technology
costs. development.
technological innovation, accelerates the transformation, implementation, and application of scientific and technological achieve-
ments, and empowers scientific enterprise management through technological innovation, steadily enhancing the Company’s Conduct comprehensive technical
feasibility studies before initiating
technological capabilities. This further strengthens the Company’s operational efficiency and core competitiveness. technological innovation projects to ensure
the practicality of the technical path and
The Company’s subsidiaries, Anda Technological,Shuiyunzong and Qingshuiyuan shanghai have obtained high-tech enterprise anticipate potential technical challenges in
advance.
certification.
Conduct in-depth market research in the
early stages of technological innovation
projects to accurately grasp market
Risk demands, competitive landscape, and
consumer preferences, ensuring high
alignment between innovation direction
and the market.
Intensified market competition, Decrease in Establish an agile response mechanism to
Market Short High
accelerated iteration of customer revenue High dynamically adjust product pricing and
Risk Term
Anda Technological High-Tech Qingshuiyuan Shanghai High-Tech Shuiyunzong High-Tech Enterprise demands. and profit. marketing strategies based on market
Enterprise Certificate Enterprise Certificate Certificate changes, enhancing market adaptability
and response efficiency.
Build an online and offline integrated
Company R&D Building multi-channel sales network to expand
market coverage and reduce dependence
on a single market.
Closely monitor national and local policy
and regulatory developments, regularly
conduct legal and regulatory learning and
training to ensure full compliance of
business operations.
Fines, Hire a professional legal advisory team to
Policy
compensa- provide comprehensive legal consultation
and Adjustments in laws, regulations, Medium
tion, and Medium Medium and support throughout the process,
legal and industry regulatory policies Term
impact on effectively preventing legal and compli-
risks
financing ance risks.
Establish a policy response mechanism to
optimize corporate strategies and business
models in a timely manner based on policy
changes, ensuring stable operations under
the policy environment.
Indicators and Targets
Risk/Op- Risk/Opportunity Financial Impact Impact Likelihood of
Type Response Measures
portunity Description Impact Cycle Level Occurrence
Establish a full-process intellectual
property monitoring mechanism to In the coming year, the Company will focus on improving quality and efficiency as its core objective, concentrating on the entire chain
promptly identify and address infringe-
Decline in ments, safeguarding the Company’s management of intellectual property to establish the following goals:
Repu- Reputation decline due to sales, legitimate rights and brand reputation. 1. Maintain an average annual growth rate of 10% in patent applications, intensify the cultivation of invention patents, increase the
Risk Long Low
tation technology R&D infringement or market Low
Term Build a strict technical quality manage- proportion of invention patents, and build a high-value patent pool.
Risk technical defects share, and
ment system covering all stages of the
brand value 2. Promote the industrial application of core patents, ensure that the patent implementation and conversion rate remains stable
R&D process to reduce reputation risks
caused by technical defects through above 40%, and maximize the value of intellectual property.
high-standard control.
Continue to increase investment in 5. Coordinate high-level paper publications and award applications, strive for Jiyuan City, Henan Province patent awards, and related
technological innovation resources, awards from the Provincial Chemical Industry Association, to enhance brand influence and industry discourse power.
Tech- comprehensively enhance the Company’s
nologi- R&D capabilities and technical level to
Technological advantages are
cal prominent, innovation achieve-
cope with increasingly fierce market Key Indicators Unit 2025
Revenue competition and complex, ever-changing
Opportu- break- ments are abundant, effectively
increases, Long policy environments.
nity throug supporting domestic and High High R&D Investment RMB 10,000 893.15
costs Term
hs and international market expansion Strengthen the talent recruitment and
decrease
market and consolidating the industrys cultivation system, build a high-quality,
leading position.
Proportion of R&D investment to operating revenue % 1.03
leader- professional team of technical and
ship management talents to provide solid talent
support for the Company’s long-term Total number of R&D team members Persons 94
sustainable development.
Proportion of R&D personnel to total employees % 11.14
Number of new product development projects Units 16
Sales revenue from new products RMB 10,000 2,621.11
Specialized, Refined, Distinctive, and Innovative (SRDI) Enterprise Enterprises 1
Impact, Risk, and Opportunity Management National High-Tech Enterprise Enterprises 3
The Company establishes a full-process, systematic risk control system. By accurately identifying key risk factors, scientifically
assessing risk levels, strengthening dynamic monitoring, early warning, and closed-loop management, it builds a solid safety barrier
for R&D and innovation activities, effectively mitigating various uncertainties, continuously stimulating innovation momentum, and
comprehensively consolidating and enhancing core market competitiveness.
Encourage R&D and Innovation
Risk
Identification
Risk
Assessment
Risk
Monitoring
Risk
Management
Innovation Platform Construction
The Company has established a full-chain system covering R&D, design, production, and engineering support, possessing compre-
Integrate various innovation During the evaluation Conduct regular risk Building upon the solid hensive research and testing capabilities ranging from the detection of macroscopic physicochemical indicators of pollutants to the
elements into the project process, prioritize risks monitoring and review foundation of risk identifica-
analysis of microscopic compositions such as molecules and ions. Relying on solid technical R&D capabilities, the Company has been
evaluation system, focusing on based on the likelihood of activities, leveraging data tion and assessment, we
key dimensions such as occurrence and potential analysis and efficient have optimized innovation successively recognized as the Henan Province Enterprise Technology Center, Henan Province Water Treatment Agent Engineering
technical feasibility, market impact, ensuring decisions feedback mechanisms to management processes and
Technology Research Center, Henan Province Smart Water Treatment System International Joint Laboratory, and approved as the
adaptability, and policy are grounded in in-depth closely track risk situations policy direction, strength-
environment, and identify data analysis to facilitate and their evolving trends, ened team collaboration and Eighth Henan Province Postdoctoral Innovation Practice Base. Simultaneously, in collaboration with Zhengzhou University, the
critical risk points in the effective allocation of ensuring that the R&D team efficient information sharing,
Company co-established the Qingshuiyuan-Zhengzhou University Ecological Environment Research Institute, continuously solidifying
innovation process, such as innovation resources and can respond swiftly, flexibly significantly enhancing the
uncertainties in technological strategic adjustments. adjust strategies, and flexible adaptability to the core foundation for technological innovation and the integrated development of industry, academia, and research.
advancement, fluctuations in continuously optimize respond to sudden risks.
market demand, and dynamic innovation pathways.
changes in industry competi-
tion.
Approved to Establish the Postdoctoral Innovation Practice Base Research Equipment
Technology Cooperation Projects R&D Achievements
The Company places high importance on cultivating young scientific research talents, actively building professional growth platforms The Company has carried out multiple research projects in the field of water treatment, with representative achievements as follows:
to help young researchers rapidly enhance their professional capabilities and achieve career development. During the Reporting
Period, the Company carried out industry-university-research cooperation with Zhejiang University, focusing on process optimization
[Case Study] Achievement Appraisal of the Online Intelligent Control
and upgrading for polymer products such as PESA, AA/MA, and PAA, and conducted research and development of new multifunc-
System for Inorganic Salt Precipitation Rate in Water Quality
tional general-purpose water treatment agents. The Company has currently completed the construction of standardized laboratory
experimental setups, effectively improving the repeatability and accuracy of experiments, successfully achieved the industrial trial
production of AA/MA products, and steadily advanced the catalyst replacement R&D related to PESA process improvement. During the Reporting Period, the Company completed the achievement appraisal of the Online Intelligent Control
System for Inorganic Salt Precipitation Rate in Water Quality. Its supporting intelligent operation and maintenance
platform, relying on core technologies such as online monitoring, intelligent dosing, and remote control, innovates
traditional industrial water treatment models and plays a key role in fostering new quality productive forces, promot-
ing coordinated economic, social, and environmental development, and benefiting all stakeholders. The system
reconstructs operational processes digitally to improve efficiency and quality, drives industry transformation, and
fosters new business models. It also reduces costs and increases efficiency, promotes industrial synergy, ensures
production safety, supports dual carbon goals and green development, enables precise chemical control, water
conservation, and emission reduction, benefiting enterprises, clients, employees, the government, and the public.
Simultaneously, the system faces challenges such as technological iteration, data security, job transformation, indus-
try adaptation, and lagging standards, requiring continuous R&D and refinement to address them.
Cooperation Project Meeting Site Product Photos
Furthermore, the Company places high importance on the construction of industry technical standards and actively leads and partici-
The Company actively participated in the aforementioned industry summits, technical forums, and standard discussion activities,
pates in various standard-setting activities. In 2025, the Company participated in the formulation and revision of one national
continuously deepening industry-university-research exchanges and cooperation, expanding industry resources in fields such as
standard, Hydroxyethylidene Diphosphonic Acid, and one industry standard, Method for Determination of Coagulation Performance
green and low-carbon development, intelligent manufacturing, and quality improvement, demonstrating the Company’s technical
of Water Treatment Agents.
strength and sense of responsibility.
Intellectual Property Protection
The Company attaches great importance to intellectual property protection in project R&D and production operations. It has not only
formulated the Intellectual Property Management System, establishing a comprehensive intellectual property management frame-
work covering management structure and protection requirements, but also introduced supporting systems such as the Research
Achievement Protection System and the R&D Center Confidentiality System. These systems specify detailed requirements for classi-
fying, archiving, and compliantly using R&D achievements, delineate the scope of R&D confidentiality, and standardize the manage-
ment of confidential materials and the confidentiality responsibilities of relevant personsnel.
Participated in the City-Academy Cooperation and the Participated in the 2025 Annual Meeting and Standard
Green and Low-Carbon Innovation Technology Review Conference of the Water Treatment Agent
Additionally, upon employee onboarding, the Company signs differentiated confidentiality agreements based on the nature of their
Achievement Roadshow of the Jiyuan Production-City Subcommittee of the National Technical Committee
Integration Demonstration Zone for Chemical Standardization positions. Regarding intellectual property protection work, the Company has concurrently established a special reward mechanism.
Employees in the Technology R&D Department are required to sign additional Intellectual Property and Achievement Protection
Agreements to further clarify ownership and protection requirements for achievements.
Key Performance
In 2025, Qingshuiyuan obtained 11 utility model patents, 2 software copyrights, and 4 invention patents. 10 inven-
tion patents and 17 utility model patents were submitted for acceptance and review. As of December 31 , 2025, the
Company possessed 28 invention patents, 139 utility model patents, 3 design patents, and 35 software
copyrights. Three wholly-owned subsidiaries are recognized as National High-Tech Enterprises.
The Company conducted technical exchanges with the Participated in the Artificial Intelligence Empowering
Vice Chairman of the Transportation and Environment New Industrialization Event in Henan Province
Working Committee of the Tianjin Refrigeration Society
Product and Service Safety Indicators and Targets
and Quality
Indicators Unit 2025
Product Qualification Rate % 98.9
Number of Annual Internal Quality Audits Times 1
Number of Third-Party Sampling Inspections Commissioned Times 1
Qingshuiyuan strictly controls product quality by implementing full-process control from raw material inspection upon arrival,
production process quality management, to product inspection management. Production adheres to high standards to provide Number of Participants in Quality Training Person-times 63
customers with superior products and continuously build an excellent brand image.
Total Duration of Quality Training Hours 35
Number of Quality Training Sessions Times 13
Quality Management System
The Company has established a relatively comprehensive quality management system, setting up a Quality & Technology Depart-
Product Quality Control
ment and a Testing Center. Internal management systems such as the Product Inspection Management System, Non-conforming
Product Disposal Management System, and Raw Material Incoming Inspection Management System have been formulated to clearly Full Lifecycle Management of Product Quality
define the inspection processes, methods, and standards for the entire product production cycle. The Company strictly conducts raw
material incoming inspections to control product quality from the source and continuously improve quality management levels. The Company has established a full lifecycle management system for product quality covering raw material procurement, production
process control, product inspection, and non-conforming product disposal. Through institutionalized management and a multi-de-
The Company and X subsidiaries have obtained ISO 9001 Quality Management System certification. Major water treatment agent partment collaboration mechanism, product quality is controlled throughout the entire process. The Company’s testing center, quality
products have obtained NSF certification and EU REACH certification registration. technology department, production department, and related departments carry out quality management in accordance with estab-
lished management systems to ensure that product quality meets national standards, industry standards, or corporate standards.
Control Points Control Measures
The testing center conducts quality inspections on raw materials and auxiliary materials used in
production. Depending on material characteristics, full inspection, sampling inspection, or
exemption from inspection is applied to ensure raw materials comply with procurement require-
Incoming Raw
Material Inspection ments.
Ande Technological ISO Shuiyunzong ISO 9001 Qingshuiyuan ISO 9001
The quality technology department, production department, and various workshops jointly
System Certification System Certification System Certification
manage process quality. The enterprise management office organizes quality procedure audits
annually, the production department inspects workshop process records monthly, and each
Production Process
Quality Control workshop reports production indicators daily.
Product inspection methods, inspection items, and testing equipment are clearly defined.
Monitoring and measurement are conducted on reactor products and finished products to
Product Inspection ensure product quality meets relevant standard requirements.
Management
A management mechanism for non-conforming products is established. The quality technology
department, material department, production department, and sales department are responsi-
Qingshuiyuan Shanghai ISO Tongsheng Environment ISO Qingyuan Water Treatment ISO
Non-conforming
System Certification System Certification System Certification Product Disposal their duties to prevent their misuse or delivery.
Product Recall Customer Communication Channels
If product issues seriously endanger health and safety, the Company will immediately recall and inspect the products for confirma-
The Company actively listens to customer opinions and feedback through various forms and channels.
tion. The general manager is responsible for forming a product recall task force, with personnel from the marketing department,
supervision department, procurement department, and other departments assisting in the work. If the issue is attributable to the
Company’s responsibility, technical personnel will be organized to improve processes, develop preventive and corrective measures, Customer Communication Channels
and conduct comprehensive inspections of production processes to prevent similar problems from recurring. Additionally, the
product recall team organizes recall drills annually to ensure the recall procedure is timely and effective. Customer Complaint Hotline ：0086-0391-6082211 Customer Complaint Email：sales@qywt.com.cn
Customer Service Assurance
Customer Satisfaction
Qingshuiyuan is committed to enhancing the customer service experience and promptly responding to customer complaints through The Company consistently aims to enhance customer satisfaction as its service goal, continuously optimizing the customer service
various communication channels. The Company has obtained a commodity after-sales service certification and provides services to experience. For different categories of customers (A, B, C, D), the Company regularly conducts questionnaire surveys using customer
customers with professional standards. At the same time, the Company has established a product recall mechanism, regularly satisfaction survey forms. During the Reporting Period, the Company conducted customer satisfaction surveys, including one for the
conducts customer satisfaction surveys, and adheres to a customer-centric approach to safeguard customer rights and interests. International Trade Department. The customer satisfaction rate was 95.69%, maintaining an overall high level of satisfaction.
Regarding demand feedback, over 79% of customers expressed a desire for price support and raised further requirements concern-
ing product types, product quality, and new product development. The Company continuously explores customers underlying needs
Customer Service Management through questionnaire surveys and subsequent email communication, and relays relevant market information to departments such
as R&D to continually optimize products and services, meeting customers multi-level needs.
The Company adheres to a customer-centric philosophy, designates the sales
department as the primary responsible unit for after-sales service, and has formu-
lated the Customer Service System and the Customer Health, Safety Assurance,
and Product Recall Procedures to standardize service processes and define service
standards. Simultaneously, the Company regularly organizes customer training to Indicator Unit 2025
enhance the teams professional service capabilities and continuously improve
customer satisfaction
customer satisfaction.
Ande Technological Five-Star Product
Number of customers participating in surveys Persons 218
After-Sales Service Certification
customer satisfaction % 95.69
Customer Complaint Management
The Company attaches great importance to customer complaint management. Throughout the entire complaint handling process,
relevant personnel are required to promptly and comprehensively record the details of each stage on the customer complaint
handling form, ensuring the process is traceable and verifiable. The Company proactively updates customers on the progress,
safeguarding their right to information and ensuring their reasonable demands receive an efficient response.
Customer Complaint Response Mechanism
Transmit information to Salesperson fills in Contact the responsible
Record complaint relevant salespersons and the abnormal department according to the
content department leaders accident form accident type
Fill in the problem summary and
responsible department on the
accident form
Communicate solutions Inform the customer The responsible
and compensation plans after the accident is department investigates In case of quality issues: the
with the customer clarified the cause of the accident joint laboratory inspects and
verifies the retained samples
workshop conducts
self-inspection and reviews
production records
Responsible Marketing Data Security Risk Management
The Company consistently adheres to the concept of responsible marketing, integrating customer safety and the protection of the
right to know into the entire process management of marketing and promotion. During the promotion of new products, sales person-
Through the Group Information Management System, the Company implements unified management of information systems and
nel must provide customers with complete product technical specifications, clearly disclose product hazard categories, safety
data centers, establishing a risk management mechanism for data security and information system operations. As the designated
protection requirements, and relevant technical parameters. Additionally, they must proactively inform customers of potential risks
management department, the Information Center is responsible for planning, operation, maintenance, and information security
during product use and emergency response measures. Relevant information is delivered through formal written documents or
supervision and inspection of information systems, as well as the unified management of software, hardware, and equipment for
emails, with confirmation that customers have reviewed and understood the safety guidelines.
information systems, servers, and data centers. Meanwhile, the Company strengthens the identification and monitoring of informa-
By standardizing marketing practices, strengthening information disclosure, and safeguarding customers right to know, the Company tion system operation risks through measures such as server inspections, data backups, permission management, and data center
effectively fulfills its corporate social responsibility, promotes the construction of a safe, transparent, and compliant marketing management to ensure stable system operation and data security.
system, and protects customer rights and the healthy development of the industry.
Risk Identification
Data Security and Customer
The Information Center centrally manages the groups information systems, data center network systems, and related hardware and
software equipment, identifying system operation risks through daily checks, registration, and maintenance.
Privacy Protection Risk Assessment
Inspect and record the operating status of information systems, equipment conditions, and system anomalies. When anomalies occur,
handle them promptly according to system operation instructions and report to superiors or contact system service providers for
resolution.
Qingshuiyuan strictly guards against information leakage risks, complies with laws and regulations such as the Data Secu-
rity Law, and comprehensively safeguards corporate information security, laying a solid foundation for the sustainable
development of information security. Risk Monitoring
Conduct irregular server inspections, establish data server backup plans, perform daily incremental data backups while retaining
backup data from the past 15 days, and conduct at least one off-site data backup per month with data retained for three years.
Data Security Management System
Risk Management
To strengthen information management and ensure the security of information systems and servers, the Company has
established internal management systems such as the Information Management System, Information Security System, and
Computer Equipment Management System, creating an information security management mechanism that covers daily Manage information system accounts and module permissions, using the OA system for account applications, permission configura-
tions, account adjustments, and deactivation to standardize system usage behavior.
management and emergency response.
The Company’s Information Center is responsible for overseeing information security management, conducting daily
supervision and inspection of information security planning and implementation, maintaining corporate information Emergency Plan
security, and protecting customer privacy information.
The Company formulates emergency response plans for information and network security incidents, responding to emergencies such
as natural disasters, power outages, equipment failures, and human sabotage, and establishes emergency organizational structures and
handling procedures.
集团信息中心主任
Information Center Organizational Structure
Director of the Group
Information Center
The Company continuously strengthens data security management, ensuring stable information system operation through institu-
tional development and technical operations and maintenance. The Company establishes server data backup plans, conducts regular
Information IT Information IT Manage- Information Technology
Management Post Management Post ment(seconded) Post Training Post server inspections, performs daily incremental data backups while retaining backup data from the past 15 days, and conducts at least
one off-site data backup per month with data retained for three years. Account management and data center operations and mainte-
nance measures are also implemented to ensure system and data security.
Management Areas Management Measures Governance
The Company continuously improves the supplier management system by formulating and implementing relevant regulations such
as the Supplier Management System, Procurement Management System, and Bidding Management System to standardize supplier
Conduct regular server inspections and establish data server backup plans; perform scheduled daily management and procurement activities. Meanwhile, the Company has established a Bidding and Procurement Center responsible
incremental data backups, with at least the past 15 days of backup data retained locally on the server;
conduct at least one off-site data backup per month with data retained for three years.
for managing and supervising various bidding and procurement tasks. A comprehensive procurement organizational structure is built
Data Backup around this center to ensure standardized procurement activities and foster stable, long-term cooperative relationships with suppli-
Management ers.
Organizational Structure of the Company’s Bidding and Procurement Center
After employees join, the Human Resources department initiates the account activation process via
the OA system. System administrators activate accounts and configure permissions based on approv-
al results; account users must promptly change initial passwords, securely manage account informa-
tion, and regularly update passwords; when employees change positions or leave, system administra-
System Account tors adjust or deactivate their accounts.
Management Procurement Specialist
(Group Headquarters)
Director of Deputy Director Procurement Specialist
Procurement & Bidding Procurement & of Procurement
Information processes are proposed by the requesting department, which drafts process plans. After Center Staff Structure (Subsidiary)
Bidding Center & Bidding Center
review and confirmation by the Information Center, the processes are implemented and launched. The
processes involve node permissions, operator scope, form requirements, and are managed according
Information System to approval workflows. Procurement Specialist
Process Management (Subsidiary)
Information Center management personnel inspect the data center environment and equipment
operation status on each working day and maintain records; external personnel entering the data The Company employs various procurement methods tailored to different needs to ensure flexibility and efficiency.
center must be accompanied throughout and registered; equipment failures in the data center are
Data Center Operations handled promptly, and maintenance activities are recorded.
and Maintenance Procurement Methods
Management
Local Government
Designated Websites
Engineering, Open Bidding
Customer Privacy Protection
Services, Company Platform
Bidding Categories
Equipment
Invited Bidding
The Company implements hierarchical management of information system administrative permissions based on security levels and
applicable subjects, ensuring the standardization and rationality of permission configuration and control. Simultaneously, conduct
Procurement Methods Open Inquiry
rigorous qualification and credit reviews of cooperative professional institutions, and sign service contracts and confidentiality agree-
ments.
Single Source Procurement
Non-Bidding Sporadic Source
Bulk Materials
Categories Procurement
Responsible Supply Chain E-commerce Procurement
Qingshuiyuan continuously strengthens supply chain management, advances the construction of digital platforms, achieves full-pro-
cess visual control of the supply chain, strictly reviews supplier entry conditions to ensure cooperation quality, adheres to the princi-
ple of transparent procurement, and focuses on creating an open, fair, and transparent procurement environment.
During the Reporting Period, the Company organized a series of procurement system training sessions through the Qingshuiyuan Risk/Op- Risk/Opportunity Financial Impact Impact Likelihood of
Cloud Classroom platform. The training covered topics such as transparent procurement, supply chain ecosystem, supply chain Type Response Measures
portunity Description Impact Cycle Level Occurrence
diagnostics and upgrades, supplier assessment, and procurement risk management, further enhancing the professional theoretical
knowledge and practical capabilities of procurement personnel. Digital
trans- Digital transformation
[Case Study] Supply Chain and Procurement Management Capability Enhancement Training forma- supports the Company in Reduction in
supply chain Refine the supply chain access process,
tion of building a more flexible supply Long
manage- High High standardize supplier access and evaluation
the chain, improving procurement Term
ment costs procedures.
During the Reporting Period, to improve the Company’s procurement management level and supply chain collabora- supply efficiency and transparency
tion capabilities, the Company organized internal training on supply chain and procurement management. The chain
training focused on procurement system construction, transparent procurement, supplier management, strategic Opportunity
procurement, cost analysis, and procurement risk prevention and control. Through systematic course explanations
and case studies, it helped procurement personnel deeply understand the important role of procurement in the Enhance the
Focus on technological Improve the layout of the upstream and
corporate value chain and master key methods such as supplier classification management, procurement cost product Company’s
research and development, downstream industrial chain.
core Long medium
analysis, and performance evaluation. Additionally, the training incorporated practical experiences such as central- up- conduct product upgrades, High
competitive- Term to high
grade and reduce raw material Enrich the variety of company products.
ized procurement, e-procurement, and procurement process risk control, guiding employees to establish a transpar- ness in the
costs
market
ent procurement philosophy, strengthen compliance awareness, and further enhance the standardization and
professionalization of procurement management.
Impact, Risk, and Opportunity Management
The Company relies on its supply chain risk identification system to identify and assess potential risks such as supply disruptions,
logistics obstructions, and cost fluctuations. Through dynamic monitoring, it continuously tracks risk changes, enhancing supply
Training Images chain resilience and flexibility, thereby providing strong support for the stable operation of the supply chain.
Risk Identification
Strategy Collect data on supply chain operations, including supplier information, logistics data, market demand, etc., and
analyze the external environment, such as market trends, policies, regulations, and technological developments, to
The Company thoroughly analyzes and assesses the risks and opportunities faced by the supply chain, closely monitors potential risks identify factors that may impact the supply chain.
from raw material price fluctuations and storage/transportation links, actively adopts effective countermeasures, explores transfor-
mation and upgrading opportunities in practice, and promotes the sustainable and healthy development of the supply chain.
Risk Assessment
Risk/Op- Risk/Opportunity Financial Impact Impact Likelihood of
Type Response Measures Assess the potential impact of each risk on supply chain operations, including financial impact, operational efficiency,
portunity Description Impact Cycle Level Occurrence
and customer satisfaction. Evaluate the likelihood of each risk occurring using historical data, expert opinions, or statis-
Strengthen long-term cooperation with tical models, and prioritize risks based on impact and likelihood.
Profit high-quality customers and seek new
Raw Some of the Company’s raw margins are qualified suppliers.
Materi- materials are significantly squeezed,
affected by environmental Adjust procurement strategies based on Risk Monitoring
al Price with risks of medium raw material prices.
policies, leading to substantial declining to long High High
Fluctu-
price fluctuations in key raw gross profit term Improve production processes and
ations materials. Regularly review the risk landscape, including market changes, supplier performance, and logistics conditions. For
margin. enhance cost control.
critical risks, implement real-time monitoring to enable rapid response.
Risk
Raw Implement comprehensive safety
Material Increased measures, establish accident warning and
Some of the Company’s raw storage and
Storage emergency response mechanisms. Risk Management
materials are flammable, transporta-
and Long High High
explosive, corrosive, or toxic, tion costs, Closely monitor industry policies,
Trans- Term
requiring special handling for heightened scientifically formulate preventive
porta- storage and transportation. risk of safety
Establish a risk reporting mechanism to ensure all relevant parties receive timely risk information. Develop correspond-
measures, and enhance employee safety
tion incidents awareness. ing response strategies based on risk assessment results.
Supplier Qualification Process
Indicators and Targets
Supplier
Access Process
Key Performance
General Procurement New Supplier
Indicator Unit 2025
Number of Suppliers by Region
Qualified Supplier Suppliers submit
Total number of suppliers Suppliers 635 Database of Youyun access applications on
Procurement Platform the digital platform
Supplier Review
Number of suppliers with quality management system certification Preliminary Review by
Suppliers 148
the Procurement
Department
Number of suppliers with environmental management system certification Suppliers 148
If on-site inspection
Number of suppliers with occupational health and safety management system certification Suppliers 148 is required
Number of suppliers whose cooperation was suspended due to non-compliance Suppliers 0
Approval by Youyun Supplier Inspection and
Procurement Platform Assessment
Number of potential suppliers rejected due to non-compliance Suppliers 0
Assessment score reaches 80 points
Performance of local suppliers
Ratio of procurement expenditure directed to local suppliers % 53 Supplier Evaluation
Annual evaluation and rating of suppliers are conducted, focusing primarily on qualifications, product pricing, delivery timeliness, and
Procurement Training product quality. Suppliers are managed by tier based on comprehensive evaluation results:
Duration of procurement training Hours 40
Transparent Procurement
Tier A
Signing rate of procurement integrity commitment letters % 95 Excellent supplier, total score
≥ 90
Tier B
Qualified supplier, total score
≥ 70
Tier C
Pending, total score Tier D
≥ 60
Unqualified supplier, total score
< 60
Supplier Full Lifecycle Management
Supplier Qualification
The Company has established a standardized supplier qualification management mechanism, clarifying supplier qualification
standards and procedures. Suppliers intending to participate in the Company’s procurement must register and submit applications
through the Qingshuiyuan Youyuncai platform, complete and upload relevant supporting documents as required, and can only be Qualified Supplier Database Management
included in the Company’s supplier management system after passing the review. Furthermore, the Company stipulates that suppli-
ers registered for less than three years are not eligible for qualification, and suppliers on the blacklist are prohibited from re-qualifica- Suppliers that pass the cooperation review are included in the Company’s Youyuncai platform qualified supplier database. In princi-
tion. If suppliers in the qualified supplier database undergo information changes, they must undergo re-review according to the new ple, procurement activities for the group and its subsidiaries select suppliers from this qualified supplier database for procurement
supplier qualification process. cooperation.
Supplier Exit and Restrictions Supply Chain Resilience Building
Regarding supplier access restrictions and dynamic management, suppliers newly registered for less than three years are not eligible
The Company emphasizes industry exchanges, continuously deepening technical communication and industrial collaboration with
for access, and suppliers on the blacklist are prohibited from re-entering. If any changes occur in the information of suppliers in the
supply chain partners. This approach enhances supply chain stability and project implementation capabilities, further strengthening
qualified supplier database, they must undergo re-evaluation according to the supplier access process.
supply chain resilience.
[Case Study] Water Treatment Product Promotion Conference
Supplier ESG Management On September 23, 2025, the Company held a water
treatment product promotion conference to engage in
technical and application exchanges with industry
The Company continuously strengthens ESG management in the supply chain, prioritizing cooperation with suppliers that possess chain partners. The conference focused on the market
environmental, quality, and occupational health and safety management system certifications. This collaborative effort aims to application of reverse osmosis membranes in the water
promote the development of a sustainable business ecosystem and foster green, efficient, and safe growth within the supply chain. treatment field and discussed the product perfor-
mance and typical application scenarios of LG high-ef-
Transparent Supply Chain ficiency reverse osmosis membranes. On-site Photos
To standardize procurement practices and enhance integrity management in the supply chain, the Company has established systems
such as the Integrity Cooperation Agreement and the Integrity and Self-Discipline Management Standards. Procurement personnel Additionally, the Company utilizes a digital procurement platform, which features full-process management, supplier resource
are required to sign integrity commitment letters, which clearly define ethical conduct requirements, strictly prohibit commercial integration, and digital collaboration functions. This platform helps the Company achieve efficient and standardized digital procure-
bribery and improper benefits, ensure an open, fair, and transparent procurement process, and promote the establishment of a ment, thereby improving overall operational efficiency and economic performance.
standardized and transparent supply chain cooperation environment.
Supplier Training
The Company places great emphasis on ESG communication and exchange with suppliers. By establishing learning and communica-
tion platforms, it promotes suppliers understanding and application of green development concepts, low-carbon technologies, and
environmental governance innovations, thereby driving the overall green transformation of the supply chain and enhancing its
sustainable development capabilities.
[Case Study] Environmental Governance and Green Development Conference
During the Reporting Period, the Company organized the Qingshuiyuan Environmental Governance and Green
Development Conference, inviting experts and scholars from government agencies, research institutions, and indus-
try organizations to engage in exchanges and sharing with corporate representatives. Focusing on the theme of
environmental governance and green development, the conference addressed key topics such as innovations in
water treatment technology, industrial cooling water treatment, low-carbon economic development, and carbon
market development. Through specialized reports and discussions, it systematically shared cutting-edge industry
technologies and green development concepts.
At the conference, multiple industry experts delivered specialized presentations on topics such as intelligent evalua-
tion of water treatment effectiveness, industrial cooling water treatment technologies, pathways for low-carbon
economic development, and trends in carbon market development. These presentations helped participating compa-
nies gain a deeper understanding of the direction of green technology development and emerging trends in environ-
mental governance.
On-site Photos
Uniting Efforts and
Ful?lling Responsibilities
for a Better Future
This chapter covers material ESG issues.
Strengthening the Foundation of Talent
Empowering Career Development
Strictly Adhering to the Safety Bottom Line
Strengthening the Foundation 2025Key Indicators
of Talent Total Employees 844 Persons Number of Ethnic Minority Employees 3 Persons
Number of Employees by Gender
Qingshuiyuan strictly adheres to laws and regulations such as the Civil Code, Labor Law, and Labor Contract Law, consis- Female 287 Persons Male 557 Persons
tently upholding the core business philosophy of “people-oriented” principles. The Company continuously optimizes its
human resource management system, effectively safeguards the legitimate rights and interests of employees, and strives
Number of Employees by Age
to achieve the talent development goal of “uniting people with corporate philosophy, attracting people with career oppor-
tunities, and selecting people with professional and vocational requirements.” Under 30 109 Persons 30-40 Years Old 356 Persons 40-50 Years Old 245 Persons 50 Years and Abov e134 Persons
Labor Relationship Management By Educational Background
Doctorat 2 Persons Master’s Degree 24 Persons Bachelor’s Degree 300 Persons Associate Degree and Below 518 Persons
To meet the talent needs for the Company’s sustained and stable development, the Company continuously improves its
human resource management system, formulates specialized regulations such as the Recruitment Management System Employee Turnover Situation
and Employee Relationship Management System, and establishes a scientific employment mechanism. The Company
consistently standardizes the entire recruitment process, carrying out recruitment through diversified methods and chan- Number of New Employees 98 Persons Number of Departing Employees 98 Persons Employee Turnover Rate 11.49 %
nels, adhering to the principles of fairness, impartiality, and transparency throughout the process to ensure the standard-
ized and orderly advancement of recruitment efforts.
External Recruitment
Employee Diversity
Internal Recruitment
The Company formulates the Interview Process Management Measures and the Prohibition of Child Labor Recruitment
Release internal recruitment informa- Talent Agency Headhunter Online Platform Campus Policy and Remedial Measures Procedure, resolutely opposing any form of employment discrimination. The scope of
tion according to the process Recruitment discrimination includes gender, age, race, religious beliefs, marital and childbearing status, disability, nationality, region,
family background, etc. The Company actively attracts and retains diverse talents, injecting multifaceted vitality into the
Company’s healthy and sustainable development.
Personnel Personnel At the same time, the Company regularly organizes specialized training for interviewers, focusing on strengthening the
Submit Formulate Release Selection Selection promotion and implementation of the principle of equal employment. It explicitly stipulates that sensitive personal
Recruitment (Including Resume
Recruitment Recruitment information such as birthday, family situation, religious beliefs, and parents’ nationality should not be inquired about or
Screening, Interview,
Demand Plan Information Written Test, Physical recorded during the recruitment process, effectively respecting and protecting the privacy rights of applicants. On July 30,
Examination)
the Company organized training on topics such as anti-discrimination, equal employment, anti-harassment and workplace
bullying, and employee privacy protection, further reinforcing the concept of equal employment among all employees and
fostering an inclusive, fair, harmonious, and transparent workplace environment.
To strengthen internal supervision and compliance evaluation of the recruitment process, the Company’s Human Resources
Recruit- Confirma- Compre- Department regularly conducts specialized reviews of interview records. Additionally, the Company has established an
tion of Probation hensive
ment Work anonymous complaint channel, encouraging applicants to provide feedback on any potential discriminatory behaviors
Evaluation Employment Evaluation
during the recruitment process, thereby solidifying the institutional safeguards for equal employment.
Recruitment Process Anti-Child Labor
The Company strictly implements the Regulations on the Prohibition of Child Labor, fully complies with the relevant
requirements of the SA8000 Social Accountability Standard, resolutely prohibits the use of child labor, and does not
ny rigorously verifies the identity information of all applicants to ensure compliance with labor regulations from the source.
Labor Contract Signing Rate 100 % Social Insurance Coverage Rate 100 % If child labor is employed due to negligence, the Company will immediately terminate the child’s work, promptly report the
incident to the local Human Resources and Social Security department, and contact the child’s parents or legal guardians
in a timely manner to implement subsequent remedial measures in accordance with regulations.
Protection of Women’s Rights and Interests Performance Management
The Company has established a comprehensive system for protecting the rights and interests of female employees. Relying
The Company formulates the Performance Management System covering all employees, designating the Compensation
on multiple systems such as the Leave Management System, Labor Contract Management System, and Recruitment
and Assessment Committee as the highest decision-making body for assessments and the Management Office as the
Management System, the Company has formed an all-round protection mechanism covering dimensions such as employ-
specific implementation department. Assessments are conducted following principles such as strategic orientation, objec-
ment equality, labor protection, and exclusive benefits.
tivity and fairness, and integration of performance and incentives. Monthly and annual assessments are implemented by
The Company strictly implements national regulations on maternity leave, miscarriage leave, and breastfeeding leave. It organization and employee category. Senior management and department heads are assessed using the BSC method,
establishes nursing rooms for breastfeeding female employees and provides flexible clock-in conveniences. During mater- while frontline employees are assessed using KPI+GS.
nity leave, salaries are calculated and disbursed by the maternity insurance fund based on the Company’s average monthly
The Company directly links performance assessment results with employees’ monthly performance pay, year-end bonuses,
employee wage from the previous year. The Company also provides exclusive allowances and subsidies for female employ-
and salary grade adjustments. Simultaneously, these results serve as the core basis for position transfers, training and
ees, such as hygiene fees. Simultaneously, the Company formulates specific labor protection requirements based on the
development, and reserve talent selection. The Company also implements proportional control on assessment grades,
physiological characteristics of female employees. It prohibits assigning female employees during menstruation, pregnan-
constructing a multi-dimensional system for applying performance results.
cy, and breastfeeding periods to perform prohibited tasks. Employees more than seven months pregnant are not assigned
night shifts or extended working hours. The Company explicitly prohibits workplace sexual harassment, and any violations
discovered are dealt with seriously. Furthermore, the Company resolutely eliminates gender discrimination in recruitment
Employee Performance Appeal Mechanism
and hiring processes, ensuring women enjoy equal employment opportunities. It integrates the “people-oriented” employ-
To ensure the fairness of performance evaluations, the Company has established a standardized employee performance
ment philosophy into the entire process of protecting women’s rights and interests, effectively safeguarding the legitimate
appeal mechanism. If an employee disagrees with the evaluation result, they may submit a written appeal. The Enterprise
rights and interests of female employees.
Management Office accepts, investigates, and coordinates the handling of such appeals within the stipulated timeframe.
Appeals from non-senior management personnel are ultimately reviewed and decided by the Compensation and Perfor-
mance Leadership Group, effectively safeguarding the legitimate rights and interests of employees.
Compensation and Benefits
To fully motivate and guide employees to exert their subjective initiative, the Company has formulated the Compensation Management Measures, Democratic Management
establishing a dual mechanism of efficient compensation incentives and constraints. It implements four compensation models: annual salary system,
performance-based salary system, special zone salary, and agreement-based salary system. The Company comprehensively considers multiple
The Company establishes diversified internal communication channels, providing employees with an open and inclusive
factors such as the nature of the employee’s position, work performance, professional competence, and overall quality. It objectively and fairly
environment for communication to enhance their sense of belonging.
evaluates employees’ value creation achievements and historical contributions, consistently adhering to the value distribution principle of perfor-
mance priority while considering fairness, thereby ensuring employees receive reasonable compensation commensurate with their efforts.
Formal Communication
Annual Salary System Efficiency-Based Wage Agreement-Based Wage
Special Zone Wages System Pre-Onboarding Pre-employment Communication During Regularization Exit Interview
System
Communication Training Communication the Probationary Period Communication
Compensation Structure Compensation Structure Compensation Structure Compensation Structure
Base Annual Salary + Position Salary + Seniority Pay Fixed Salary + Performance Executed According to the
Performance Annual Salary + + Performance-based Salary + Salary + Allowances and Agreement
Overtime Reward + Allowances Year-end Bonus + Allowances Subsidies + Benefits Informal Communication
and Subsidies + Benefits and Subsidies + Special Major Celebratory Events The Human Resources Department conducts irregular
Applicable Personnel Democratic Symposium
Rewards
interviews with employees.
Applicable Personnel Applicable Personnel Personnel who have made Applicable Personnel
significant contributions to the
Senior Management Personnel Administrative Sequence, R&D Scarce Professional Personnel
Company, are scarce in the The Company strictly implements relevant laws and regulations such as the Trade Union Law and the Regulations on the
Sequence Positions
market, or are retired and
rehired Congress of Enterprise Employees, establishes and improves the Employee Congress System, and enhances the mecha-
nisms for employee democratic management and supervision, effectively safeguarding employees’ legally entitled rights
Simultaneously, the Company has established a comprehensive benefits system to achieve common development for both
such as the right to know and the right to participate. During the Reporting Period, the Company’s Employee Congress
the Company and its employees.
reviewed and approved 2 projects, and the proportion of union members among the Company’s employees reached 90 %.
Five Social Insurances
and Housing Fund Simultaneously, the Company formulated and implemented the Factory Affairs Disclosure System, specifically establishing
Education and a Factory Affairs Disclosure Working Group and a Factory Affairs Disclosure Supervision Group. This fully mobilizes
Professional Title Accident
Allowance Insurance employees’ enthusiasm and initiative to participate in Company management, further solidifying the foundation for demo-
cratic management within the enterprise.
Communication Benefits
Labor Protection
Allowance System Supplies
Factory Affairs Disclosure Working Group Factory Affairs Supervision Group
Meal Allowance Birthday
Wishes Handles specific matters related to the content of Supervises the timeliness and authenticity of the disclosed factory
Holiday
Benefits factory affairs disclosure and proposes solutions. affairs content, ensuring that employee feedback is addressed.
The Company has established a Labor Dispute Mediation Committee, responsible for mediating employee labor disputes
and conflicts to promote the construction of harmonious labor relations. During the Reporting Period, no labor disputes or
Employee Activities
conflicts occurred within the Company.
During the Reporting Period, the Company organized various activities such as table tennis summer camps, sports meets,
dumpling-making events for the winter solstice, and recitation competitions, aiming to strengthen connections between
employees and departments, foster friendship, create a healthy and positive work atmosphere, and promote a collaborative
team spirit.
Labor Dispute Mediation Committee
Sports Meet
Employee Satisfaction
The Company actively listens to employee demands and concerns, primarily through questionnaires, regularly organizing
employee satisfaction surveys. This helps the Company comprehensively and accurately understand employees’ genuine
needs and reasonable expectations, providing solid data support and a basis for decision-making in formulating subse-
quent management strategies that are more aligned with employee realities and more targeted.
Employee Care
Table Tennis Summer Camp
Health Check-up Mental Health
The Company regularly organizes free physical health The Company periodically offers psychological training
check-ups for all employees, focusing on and courses to alleviate employees’ psychological risks.
safeguarding their physical health to enhance their
health awareness.
Support for Employees in Difficulty
When employees or their families encounter
significant difficulties, the Company extends
condolences and care, providing varying levels Dumpling Making on Winter Solstice
of material assistance.
Qingyuan Water Treatment Visits Qingyuan Water Treatment Visits
Employees in Difficulty Retired Employees
Empowering Career Development New Employee
New employees must undergo at least two days of onboarding training before starting their
positions and can only begin work after passing the assessment.
Training
Qingshuiyuan is committed to establishing a comprehensive career development and training system to enhance employ-
When employees transfer to new positions within the Company, the head of the new department
ees’ overall competencies, fully unleash their potential, support them in steadily achieving their personal career goals, and
provides job-specific knowledge and skills training according to the requirements of the new
ultimately realize a win-win scenario where individual value aligns with the Company’s development objectives. Job Transfer
Training role, and employees can only start work after passing the training.
Career Development
On-the-Job
Job Skill Training, Professional Knowledge Training, General Competency Training
To help employees achieve steady career advancement, the Company has formulated the Career Development Manage- Training
ment System, establishing dual career pathways for both management and non-management tracks, supporting employ-
ees in vertical promotions and horizontal rotations, and encouraging growth across different career paths.
Additionally, to further expand employees’ career development opportunities, the Company implements a “Five Levels,
[Case Study] New Employee Corporate Culture and System Training
Three Tiers” management model for professional competency levels. Within the same professional role, employees are
categorized into five levels based on their professional competence, and within each level, they are further divided into
three tiers, ensuring precise alignment between capability and development. In March 2025, Ande Technological organized specialized training on corporate culture and systems for new
employees, systematically explaining the Company’s core cultural concepts and various regulations. This
initiative helped new employees quickly familiarize themselves with operational norms and integrate into
Professional Track the corporate culture, laying a solid cognitive foundation for their efficient performance in their roles.
Technical Track R&D Sequence
Management Non-Manage-
Track ment Track
Marketing Sequence Operations Sequence
Career Development Pathways
Training System
The Company has established specialized systems such as the Training Management System and the Interim Regulations
on Internal Trainer Management, creating a systematic training framework with clear classifications and levels. By combin-
ing internal mentorship with external trainers and leveraging diverse teaching methods, the Company continuously
enhances employees’ job skills and overall professional competencies. Simultaneously, the Company has established a
scientific and comprehensive training effectiveness evaluation mechanism to promptly gather feedback, continuously
Training Venue
optimize training content and delivery methods, and ensure the practicality and relevance of training initiatives.
Internal Trainer Strategy
To efficiently develop internal training resources and establish a sustainable talent cultivation mechanism, the Company
adheres to the principles of “fairness and voluntariness, value demonstration, and growth for mutual benefit.” It strength-
The Company deeply recognizes the importance of occupational health and safety issues for its sustainable development.
ens the internal trainer system, encouraging employees with professional expertise to serve as internal trainers, thereby
It comprehensively carries out the identification and assessment of risks and opportunities related to occupational health
facilitating the deep integration of corporate culture and fostering the development of a learning-oriented organization.
and safety and has formulated targeted strategies.
The Human Resources Department organizes an annual assessment of internal trainers’ qualification levels. Based on the
evaluation results, adjustments such as promotion, demotion, or dismissal of their qualifications are implemented. Simulta- Risk/Op- Risk/Opportunity Financial Impact Impact Likelihood of
Type Response Measures
neously, quarterly and annual ‘Gold Trainer’ and ‘Gold Course’ awards are established, providing corresponding economic portunity Description Impact Cycle Level Occurrence
incentives to winners. Annual award-winning individuals and courses receive honorary certificates, fully motivating internal Conduct regular comprehensive mainte-
trainers’ enthusiasm for teaching and course development. nance and inspection of equipment to
ensure good operational condition.
Chemical leakage may harm Strengthen employee training on
Chemical Increased
employee health and even lead Short- operational standards, establish strict
Leakage expenses, Large Medium
to serious consequences such term operating procedures, and supervise their
Internal Trainer Level Gold Senior Intermediate Entry Risk rising costs
as explosions and fires. implementation.
Level Level Level Level
Improve emergency plans, equip sufficient
emergency response supplies, and
conduct regular emergency drills.
Risk
Install advanced and sufficient ventilation
Strictly Adhering to the
and air exchange systems to ensure
Production processes often workplace air quality meets standards.
Toxic and generate toxic and harmful
Harmful Increased
gases, which can easily lead to Provide employees with high-quality,
Safety Bottom Line
expenses, Long-
Gas employees inhaling excessive Medium Medium suitable personal protective equipment
rising costs term
Exposure amounts, causing occupational and supervise their correct use.
Risk diseases and affecting their
physical health. Organize regular occupational health
examinations for employees to detect and
address health issues early.
Qingshuiyuan strictly abides by laws and regulations such as the Occupational Disease Prevention and Control Law and
the Work Safety Law, adhering to the work safety policy of “Safety First, Prevention Foremost, and Comprehensive With technological advance-
ments, new safety production Stay updated on the latest safety
Management.” The Company coordinates high-quality enterprise development with high-level safety construction, solidly Upgrade technologies such as production technology trends in the
of safety intelligent monitoring systems Decrease in industry and actively conduct technology
fortifies the work safety defense line, and is committed to achieving long-term stability in work safety. produc- Medium to
and automated operation manage- assessments and introductions.
Large Medium
tion equipment continue to ment costs long-term
Governance technol-
ogy
emerge. Applying these
technologies can effectively
Allocate special funds for safety produc-
tion technology upgrade and transforma-
tion projects.
reduce the probability of safety
incidents.
Opportu-
The Company has formulated systems such as the Compilation of Occupational Health and Safety Systems and the Hazard nity
Strengthen occupational
Identification, Risk Assessment, and Control Procedures, designating the Safety Department as the primary responsible health management by
Optimi- improving health monitoring Costs
department for work safety. The work safety responsibility system is reinforced at every level, integrating safety manage-
zation of systems, enhancing the increase
ment into the performance appraisal system. This continuously improves the management level of the dual prevention Improve the layout of upstream and
occupa- working environment, and initially and
Short-ter downstream industrial chains.
providing more comprehensive then
mechanism, comprehensively safeguarding employees’ occupational health and safety. tional m Medium High
health benefits. These decrease, Enrich the variety of Company products.
health measures increase employee while
During the Reporting Period, the Company and its subsidiaries—Qingshuiyuan Shanghai, Qingyuan Water Treatment, manage- satisfaction and loyalty while benefits
ment reducing production increase.
Shuiyunzong, and Ande Technological—have obtained ISO 45001 Occupational Health and Safety Management System
interruption risks due to
certification. employee health issues.
Impact, Risk, and Opportunity Management
The Company establishes and improves a dual prevention mechanism for safety production risk classification control and
Qingshuiyuan Shanghai ISO Qingyuan Water Treatment Shuiyunzong ISO 45001 Ande Technological ISO Qingshuiyuan ISO 45001 hidden hazard investigation and management. It regularly conducts effectiveness evaluations of the dual prevention mech-
and Safety Management Health and Safety Safety Management System and Safety Management Safety Management System
System Certification Management System Certification System Certification Certification further enhance the management level of the dual prevention mechanism.
Certification
In accordance with GB18218-2009 Identification of Major Hazard Installations for Hazardous Chemicals, the
Company establishes risk lists for operational activities and equipment facilities. It forms a leadership group
and an identification team for hazard source identification and risk assessment. Through on-site observa-
Zero production safety accidents above the general level; zero general AB-level accidents.
tions, safety checklists, and job hazard analysis methods, the Company comprehensively conducts hazard
source identification. Based on human behavior, equipment conditions, working environment, safety
management, and other factors, the Company ensures comprehensive, accurate, and compliant analysis
Risk through reasonable methods. During the Reporting Period, the Company developed an occupational health Zero general CD-level accidents.
Identification and safety hazard identification and risk assessment survey form.
Zero fire and explosion accidents.
Zero traffic accidents where our party bears primary responsibility.
The Company implements a mechanism for investigating and managing hidden hazards of production safety
incidents. It compiles a hidden hazard investigation list, conducts regular inspections, and focuses on
checking electrical equipment, machinery, special equipment, production processes, major hazard installa- Zero occupational disease incidence.
tions, and key areas in various workshops. Identified hazards are publicly disclosed and rectified according
Hazard to the five implementations principle to eliminate accident risks promptly and achieve closed-loop manage-
Investigation ment of hazards. Timely rectification rate of safety and environmental hazards reaches 100%.
Three-level safety education for new employees and safety training for on-duty personnel reaches 100%.
The Company classifies risks using quantitative evaluation methods and controls them based on the Zero administrative penalties.
principles of “classification, layering, and specialization.” Control measures are implemented in areas such as
engineering technology, management systems, education and training, personal protection, and emergency
response. The effectiveness of risk control is monitored and evaluated to ensure the measures are targeted,
effective, and operable. Control levels and responsible personnel are clearly defined.
Key Performance
Risk
Assessment Major Risk Significant Risk Moderate Risk Low Risk In 2025, the Company underwent 12 special safety inspections by higher-level units, with 96 identified
hidden hazards and a timely rectification rate of 100 %.
The Company creates four-color risk maps and bar charts, which are displayed prominently in visible Organized 14 monthly and comprehensive inspections, issued 128 Company-level hidden hazard
rectifications, with a timely rectification rate of 100 %.
locations. Workstations are equipped with must-know cards to inform employees of major hazards, harmful
factors, consequences, and risk control measures. Emergency response cards are also provided, clearly
outlining emergency response procedures and measures.
Indicator Unit 2025
Production Safety Accidents Pieces 0
The Safety Department is responsible for communicating risk assessment results to relevant departments.
For unacceptable risks, control measures are implemented through establishing objectives, management
Risk plans, developing operational control procedures or systems, formulating emergency measures, conducting Safety Emergency Drills Times 252
Management training and education, and enhancing monitoring.
Amount of Safety Production Investment RMB 10,000 475.1
Proportion of Safety Production Investment to Operating Revenue % 0.55
Total Investment in Safety Training RMB 10,000 8.00
Indicators and Targets
Number of Safety Training Sessions Sessions 84
During the Reporting Period, the Company signed the 2025 Safety Target Responsibility Agreement, implementing and Number of Participants in Safety Training Person-times 5,712
achieving safety production targets in areas such as production safety accidents and timely rectification rates of hidden
hazards. Total Duration of Safety Training Hours 191
Average Safety Training Duration per Person Hours 40
Indicator Unit 2025
Employee Coverage Rate of Safety Training % 100 Emergency Response Plan System
Coverage Rate of Safety Risk Protection Training % 100
Work Safety Emergency Plan
Certification Rate for Special Operations Personnel % 100
Investment Amount in Work-Related Injury Insurance RMB 10,000 29.90
Comprehensive Emergency Plan Specialized Emergency Plan
Coverage Rate of Work-Related Injury Insurance % 100
Investment Amount in Production Safety Liability Insurance RMB 10,000 4.24
Coverage Rate of Production Safety Liability Insurance % 100 Special Emergency Special Emergency Special Plan for
Special Plan for Special Plan for Special Plan for
Plan for Rain, Snow Plan for Flood Control Confined Space
Special Equipment Fire and Explosion Major Hazard Source
and Freezing and Severe Convective Poisoning and
Employee Physical Examination Coverage Rate % 100 Weather Prevention Accidents Asphyxiation Accidents
Accidents Accidents
Prevention
Detection Rate of Occupational Disease Hazards % 100
Qualification Rate of Occupational Disease Hazard Monitoring % 100
Number of New Occupational Diseases Cases 0
Emergency Response Process
Information Receipt, Disposal and Assessment
Emergency Management Whether the Response Activation Conditions Are Met
Yes
The Company has formulated the Emergency Response Plan for Production Safety Accidents to standardize the manage-
Response Activation
ment processes of key aspects such as emergency preparedness, emergency response, and recovery and reconstruction.
It clarifies core elements including the emergency organizational structure, division of responsibilities, resource allocation,
and information transmission, ensuring effective prevention, rapid response, and proper handling of various emergencies. Emergency Response Escalated Emergency Response
The Company is committed to building a comprehensive, multi-layered production safety protection network.
No
No Is the Situation Under Control? Emergency Support
Yes
Emergency Organizational Structure Emergency Termination
Emergency Command Headquarters Post-Incident Disposal
Emergency Management Conclusion
Office / Emergency
Command Office
Security & Emergency Environmental
Materials & Funds Process Rescue & Monitoring & During the Reporting Period, the Company proactively conducted safety emergency drills, further enhancing all employ-
Logistics Response
Support Team Disposal Team Emergency Team Disposal Team ees’ awareness of prevention and self-rescue capabilities. This improved employees’ emergency rescue skills and special-
Support Team Technical Team
ized qualities in emergency response, effectively reducing accident hazards and ensuring the Company’s safe, healthy, and
orderly development.
Before construction, outsourced units should identify hazards based on the construction content, formu-
[Case Study] Emergency Fire Evacuation Drill
late construction plans and corresponding safety technical measures.
In March 2025, Qingyuan Water Treatment organized a practical emergency fire evacuation drill in the office Strengthen on-site inspection and supervision, promptly rectify accident hazards, and conduct safety
building. The drill simulated a fire scenario in the Materials Department of the office building and involved assessments for construction management personnel when necessary.
full-process operations such as fire handling, personnel evacuation, and emergency rescue. This effectively
During the Reporting Period, the Company provided safety training for external construction personnel, who
enhanced employees’ emergency response and evacuation capabilities, tested the practicality and operabil-
were allowed to work only after passing the assessment.
ity of the emergency plan, and further strengthened the Company’s production safety defenses.
Digital Empowerment
The Company has established a smart safety control platform covering eight major modules, including basic
safety management, major hazard source safety management, intelligent inspection, and video intelligent
analysis. It achieves full-process intelligent data control of “rapid perception + real-time monitoring + early
warning + emergency response + system evaluation”, focusing on strengthening the Company’s precise
safety risk prevention and control capabilities, and comprehensively improving the professional level and
operational efficiency of safety management.
Pre-Drill Training Emergency Personnel Conduct Temporary Disposal
Basic Safety
Management
Contractor
Management
Safety Education System
and Training
System
Organize Personnel Evacuation Emergency Teams Carry Out Disposal Major Hazard
Source Safety
Intelligent Video Managemen
Analysis
Contractor Safety Management Special Operation
Dual Prevention Management
Mechanism
The Company has formulated the Contractor Management System, which clarifies contractor safety management responsi-
bilities, strictly reviews contractors’ safety qualifications and operational capabilities, specifies safety requirements in
contracts, and simultaneously signs safety management agreements and conducts safety technical briefings to define the Personnel
Positioning
safety responsibilities of all parties. Intelligent Management
Inspection
The Company continuously strengthens the management of outsourced engineering construction to improve on-site
management levels and ensure the safety of construction work.
Increase on-site safety management supervision and implement professional division of labor for safety
management personnel.
After entering the Company, outsourced units receive safety technical briefings from the competent
department to understand the Company’s safety and environmental requirements, methods for
Nine Major Systems of the Smart Safety Control Platform
controlling on-site hazards, etc.
Organize pre-employment, on-the-job, and post-employment occupational health examinations for workers exposed to
Enhancement of Safety Awareness occupational hazards and establish occupational health monitoring records.
Prioritize the adoption of new technologies, processes, and materials that are conducive to preventing and controlling
The Company regularly carries out safety education activities and training, strictly implements the three-level safety occupational diseases and protecting employees’ health, gradually replacing those with severe occupational hazards.
education at the Company, department, and team levels. The learning content covers safety technical knowledge, equip- Truthfully inform employees about the occupational hazards associated with processes, technologies, and materials.
ment performance, operating procedures, etc., and personnel can only enter operational positions after passing the Safety officers identify monitoring points for occupational hazards, organize the monitoring and hierarchical manage-
assessment. ment of occupational hazards in workplaces, conduct annual inspections of occupational hazards, and make the results
public.
[Case Study] Shuiyunzong’s “Safe Production Month” Activity
Implement effective occupational disease prevention facilities, conduct regular self-inspections and checks to ensure
In June 2025, Shuiyunzong carried out the Safe Production Month activity closely centered on the theme normal and safe equipment operation.
‘Everyone Talks Safety, Everyone Can Handle Emergencies—Identify Safety Hazards Around You’. Activities Display warning signs and instructions in prominent locations where occupational hazards may occur, and provide
included safety pledges, safety publicity, safety education training and assessments, distribution of employees with occupational disease protective equipment.
heatstroke prevention items to employees, and comprehensive safety production inspections to promptly
eliminate accident hazards. This activity effectively enhanced the overall safety awareness and emergency Equip employees with proper and effective personal protective equipment that complies with national standards.
response capabilities of all employees, solidly consolidated the Company’s safety management foundation, Regularly organize education and training on the correct use and maintenance of occupational disease prevention
promoted the implementation of various safety production measures, and strengthened the enterprise’s facilities.
safety production line of defense.
During the Reporting Period, Qingyuan Water Treatment commissioned a qualified third party to conduct inspections of
occupational hazard factors, with reports issued and made public.
Community Public Welfare
Adhering to the core philosophy of “building a century-old enterprise that benefits society and serves the world,” Qing-
Safety Publicity Banners Safety Pledge Activity shuiyuan integrates ESG concepts into its development strategy and embeds philanthropy into its corporate culture. The
Company established the “Jiyuan Charity Federation · Qingshuiyuan Fund,” continuously engaging in public welfare initia-
tives such as flood prevention and disaster relief, educational support, rural revitalization, and new rural construction.
Through active practice in the field of social responsibility, the Company has been honored with titles such as “Advanced
Unit for Donating to Education,” “Advanced Unit for the Ten Thousand Enterprises Revitalize Villages Initiative,” “Brave and
Compassionate Enterprise,” and “Advanced Unit for Targeted Poverty Alleviation.”
Safety Education and Training
Occupational Health Management
The Company continuously standardizes the management of warnings and notifications regarding occupational disease
hazards in the workplace, strictly implements the “three simultaneous” requirements for occupational disease prevention
facilities in construction projects, and ensures the comprehensive protection of employees’ health through multiple
Title of “Compassionate Enterprise”
measures. It focuses on preventing, controlling, and eliminating occupational disease hazards while precisely managing
various occupational risk factors in the working environment.
Appendix
Topics Indicator Unit 2025
Number of Remuneration and Assessment
Committee Meetings Held Times 1
Number of Proposals Approved by Remunera- Proposals 2
tion and Assessment Committee
Key Performance Indicator
Number of Strategy Committee Meetings Held Times 1
Strengthening
Compliance Number of Proposals Approved by
Proposals 1
Governance Strategy Committee
Governance Dimension Indicators Number of Nomination Committee Meetings Held Times 3
Number of Proposals Approved by Proposals 3
Nomination Committee
Topics Indicator Unit 2025
Number of Regular Reports Disclosed Reports 4
Operating Revenue RMB10,000 86,879.38
Number of Interim Announcements Disclosed Reports 74
Operational
Net Profit RMB10,000 -4,057.55
Performance Number of Investor Exchange Sessions Held Sessions 2
Total Tax Paid RMB10,000 2,721.61
Number of On-site Research Visits Hosted Visits 1
Deepening Investor
Number of Party branches Branches 6 Relations Management Number of Investor Inquiries Responded Through
Party-building Responded 65
the Interactive Easy Platform
leadership
Number of Party members Persons 77
Cash Dividend per Share CNY Per Share 0
Number of Shareholders’ Meetings Held Times 4
Total Pre-tax Cash Dividends RMB1,000 0
Number of Approved Proposals Proposals 18
Ratio of Dividends to Consolidated Net Profit % 0
Number of Board Members Persons 9 Number of Directors Trained in Anti-Brib-
ery and Anti-Corruption Persons 1
Number of Board Members by Gender
Training Duration Hours 4
Male Persons 6 Adhering to Number of Senior Management Trained in
Anti-Bribery and Anti-Corruption Persons 1
Business Ethics
Female Persons 3
Training Duration Hours 4
Number of Board Members by Type
Strengthening Business Ethics Pledge Sign-off Rate % 100
Compliance Independent Directors Persons 3
Governance
Non-independent Directors Persons 6
Environmental Dimension Indicators
Number of Board of Directors Meetings Held Meetings 8
Topics Indicator Unit 2025
Number of Approved Proposals Proposals 38 Total greenhouse gas emissions tCO₂e 44,075.46
Board member attendance rate % 100 Climate Change Direct Greenhouse Gas Emissions (Scope 1) tCO₂e
Response 97.30
Special Committees of The Board of Directors
Indirect Greenhouse Gas Emissions (Scope 2) tCO₂e 43,978.16
Number of Audit Committee Meetings Held Times 5 Total greenhouse gas emissions per million revenue tCO₂e 50.73
Number of Proposals Approved by Audit Committee Proposals 19 Environmental Compli-
ance Management Environmental Protection Investment RMB10,000 100.26
Topics Indicator Unit 2025 Topics Indicator Unit 2025
Environmental Protection Training Total Purchased Heat Gigajoule 325,834.03
Number of environmental Tons of Standard Coal
protection training sessions Times 27 Comprehensive Energy Consumption 13,197.96
Equivalent
Number of participants in environmen- Ton of Standard Coal/RMB
Person-times 754 Comprehensive Energy Consumption Density Million Revenue 15.19
tal protection training
Duration of environmental protection training Hours 54 Prudent Resource Water Usage Status
Management
Ten Thousand
Waste Gas Emission Total Water Consumption 28.80
Cubic Meters
Waste Gas Emission Volume Tons 1.3 Water Consumption Intensity RMB Million 0.033
Volatile Organic Compounds (VOC) Tons 1.3 Total Water Cycle and Reuse Tons 138,767.45
Wastewater Discharge Total Usage of Packaging Materials Items 913,077
Paper-based packaging materials (woven
Wastewater discharge volume Tons 61,979.57 bags, inner bags, etc.) Items 462,369
Lean Material Plastic-based packaging materials
Chemical Oxygen Demand (COD) Tons 0.669 (packaging barrels, ton barrels) Items 440,363
Management
Environmental Ammonia Nitrogen (NH3-N) Tons 0.026 Wood-based packaging materials (wooden pallets) Pallets 10,345
Compliance
Management Total phosphorus (calculated as P) Tons 0.01 Consumption of Toxic and Hazardous Materials Tons 120,530.07
Solid Waste Emissions
Amount of hazardous waste generated Tons 96.514
Hazardous Waste Disposal Volume Tons 96.514
Social Dimension Indicators
Waste Engine Oil (HW08
Category Substances) Tons 0.555 Topics Indicator Unit 2025
Waste Activated Carbon (HW37
Category Substances) Tons 93.35
R&D Investment RMB 10,000 893.15
Phosphorus Slag (HW37 Category Substances) Tons 1.693 Proportion of R&D investment to
% 1.03
operating revenue
Sludge (HW37 Category Substances) Tons 0.466
Total number of R&D team members Persons 94
Waste Filter Cloth (HW37
Category Substances) Tons 0.2
Proportion of R&D personnel to total employees % 11.14
Online Monitoring Waste Liquid (HW49 Igniting Innova-
Category Substances) Tons 0.25
tion-Driven Develop- Number of new product development projects Units 16
ment
Energy Consumption Situation
Sales revenue from new products RMB 10,000 2,621.11
Purchased Steam Million Kilojoules 325,834.03 Specialized, Refined, Distinctive, and
Innovative (SRDI) Enterprise Enterprises 1
Prudent Resource
Photovoltaic Electricity Consumption Ten Thousand Kilowatt-hours 100.52
Management National High-Tech Enterprise Enterprises 3
Total Purchased Electricity Ten Thousand Kilowatt-hours 1,543.62
Product Qualification Rate % 98.9
Product and Service
Natural Gas Ten Thousand Cubic Meters 4.5 Safety and Quality
Number of Annual Internal Quality Audits Times 1
Topics Indicator Unit 2025 Topics Indicator Unit 2025
Number of Third-Party Sampling
Inspections Commissioned Times 1 50 Years and Above Persons 134
Number of Participants in Quality Training Person-times 63 By Educational Background
Total Duration of Quality Training Hours 35 Doctorate Persons 2
Product and Service
Safety and Quality Master’s Degree Persons 24
Number of Quality Training Sessions Times 13
Bachelor’s Degree Persons 300
Total number of suppliers Suppliers 635
Number of suppliers with quality Associate Degree and Below Persons 518
Strengthening the
management system certification Suppliers 148
Foundation of Talent
Employee Turnover Situation
Number of suppliers with environmental
management system certification Suppliers 148
Number of New Employees Persons 98
Number of suppliers with occupational health and
safety management system certification Suppliers 148
Number of Departing Employees Persons 98
Number of suppliers whose cooperation
was suspended due to non-compliance Suppliers 0
Employee Turnover Rate % 11.49
Responsible Number of potential suppliers
Suppliers 0 Number of Projects Company's Employee
rejected due to non-compliance Porjects 2
Supply Chain Congress Reviewed and Approved
Ratio of procurement expenditure Proportion of Union Members Among
% 53 % 90
directed to local suppliers The Company's Employees
Duration of procurement training Hours 40
Signing rate of procurement
% 95 Topics Indicator Unit 2025
integrity commitment letters
Labor Contract Signing Rate % 100 Production Safety Accidents Pieces 0
Social Insurance Coverage Rate % 100 Safety Emergency Drills Times 252
otal Employees Persons 844 Amount of Safety Production Investment RMB 10,000 475.1
Number of Ethnic Minority Employees Persons 3 Proportion of Safety Production Investment to Operating Revenue % 0.55
Total Investment in Safety Training RMB 10,000 8.00
Number of Employees by Gender
Strictly
Adhering to Number of Safety Training Sessions Sessions 84
Female Persons 287
Strengthening the the Safety
Foundation of Talent Bottom Line Number of Participants in Safety Training Person-times 5,712
Male Persons 557
Total Duration of Safety Training Hours 191
Number of Employees by Age
Average Safety Training Duration per Person Hours 40
Under 30 Persons 109
Employee Coverage Rate of Safety Training % 100
Coverage Rate of Safety Risk Protection Training % 100
Certification Rate for Special Operations Personnel % 100
Topics Indicator Unit 2025
China Corporate Social Self-Regulatory Guidelines No.17 for
Responsibility Companies Listed on Shenzhen Stock
Content （GRI Standards）
Reporting Guidelines Exchange—Sustainability Report (For
Investment Amount in Work-Related Injury Insurance RMB 10,000 29.90
(CASS-ESG 6.0) Trial Implementation)
Coverage Rate of Work-Related Injury Insurance % 100
Governance as the Foundation: Upholding
Sustainable Develop-
Integrity for Long-Term Effectiveness
ment Governance
Investment Amount in Production Safety Liability Insurance RMB 10,000 4.24
Strictly Party Building
Leadership / / /
Coverage Rate of Production Safety Liability Insurance % 100
Adhering to
the Safety
Employee Physical Examination Coverage Rate % 100 Strengthening Compli- 2-9/2-10/2-11/2-12/2-13/2-14/
Bottom Line / Article 12
ance Governance 2-16/2-17/2-18/2-19/2-20/2-21
Detection Rate of Occupational Disease Hazards % 100 Deepening Investor
Relations Management
Qualification Rate of Occupational Disease Hazard Monitoring % 100
Adhering to Business
Ethics
Number of New Occupational Diseases Cases 0
Community Addressing Climate
Ecological and Environmental
Green Development: Refining
Public Welfare Number of Participants in Volunteer Activities Person-times 15 Change
Protection Practices
Environmental Compli-
ance Management
Prudent Resource
Management
Lean Material
Indicator Index 301 E3.3 Article 34 and 37
Management
Igniting Innovation-Driv-
Innovation-Driven Leadership,
Co-creating Industrial Value
en Development
China Corporate Social Self-Regulatory Guidelines No.17 for Product and Service
Companies Listed on Shenzhen Stock Safety and Quality 416/417 S3.3 Article 47
Content GRI Standards Responsibility
Reporting Guidelines Exchange—Sustainability Report (For
(CASS-ESG 6.0) Trial Implementation) Data Security and
Customer Privacy 418 S3.4 Article 48
Protection
About This Report 2-1/2-2/2-3 P1.1/P1.2 Article 3, 4, 6 and 7 Responsible Supply
Chain
Responsibilities for a Better Future
Chairman‘s Statement 2-22 P2.1 / Strengthening the
Uniting Efforts and Fulfilling
Foundation of Talent
Company Profile 2-1/2-6 P3.1 / Empowering Career
Development
Company Culture 2-6 P3.2 /
Strictly Adhering to the
S4.2 Article 50
Safety Bottom Line 403
About Qingshuiyuan
Development History 2-1 Community Public
P3.1 / Welfare 413 S1.2 Article 38 to Article 40
Corporate Honors / Key Performance
/ / 2 A2 Article 6
Indicator
Appendix
ESG Performance Feedback Form
/ / / / A6 Article 53
Highlights
Feedback Form
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