Sustainability Report
Zhejiang Juhua Co., Ltd.
About This Report 01 Appendix 89 ESG Governance 21
Corporate Governance 25
Key Performance Indicators 89
Message from the Chairman 03 Strengthening Governance Business Ethics 28
Indicator Index Table 98
to Safeguard Sustainable Risk Prevention and Control 32
Assurance Report 105
About Juhua Corporation 05 Development
Information Security 34
Feedback Form 107
Company Overview 05
Business Overview 07
Corporate Culture 07 Environmental Compliance Management 37
Honors and Awards 08 Pollution Prevention and Control 38
Protecting the Environment Resource Utilization and Ecosystem Protection 45
and Advancing Green Clean Technology Opportunities 54
Transformation
Climate Governance 11 Chemical Safety Management 57
Strategy 11 Innovation-Driven Development 60
Addressing Climate Impact, Risk and Opportunity Management 16 Strengthening Operations Product Quality 67
Change and Advancing Metrics and Targets 16 and Enhancing Products Customer Relationship Management 69
Low-Carbon Development and Services
Employee Rights and Benefits 71
Talent Development and Growth 74
Fulfilling Social Occupational Health and Safety 76
Responsibility and Creating Resilient Supply Chain 83
Shared Value
Community Contribution 85
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
About This Report
This report is the 2025 Sustainability Report of Zhejiang Juhua Co., Ltd. (hereinafter referred to as “Juhua Corporation”, “the Company”,
or “We”). As the Company’s 16th annual report disclosing Environmental, Social and Governance (ESG) information, this report aims to
provide stakeholders with a comprehensive presentation of the Company’s sustainability philosophy, management practices and
performance during the reporting period.
This report was reviewed and approved at the 25th meeting of the 9th session of the Board of Directors on 21 April 2026.
Reporting Period Information Sources and Reliability Assurance
The reporting period of this report covers 1 January 2025 to 31 December 2025 (the “Reporting Period”). Certain information may be The information disclosed in this report is derived from publicly available information, official corporate documents, financial reports,
retrospectively extended or forward-looking where appropriate. internal management systems, third-party monitoring and evaluation data, as well as statistical data compiled by relevant functional
departments.
Scope of Report The Company hereby confirms that there are no false records, misleading statements or material omissions in this report.
Unless otherwise specified, the information and data disclosed in this report cover Juhua Corporation and its subsidiaries included in the
Basis of Preparation
scope of consolidated financial statements.
This report has been prepared in accordance with the following regulations and standards:
Definitions and Abbreviations • Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No.1 – Standardized Operations (May
For ease of reading, certain entities are referred to by abbreviated names in this report. The definitions are as follow: 2025 Revision)
• Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No.14 – Sustainability Reports (Trial)
Juhua Group Juhua Group Co., Ltd.
Sulfuric Acid Plant Zhejiang Juhua Co., Ltd. Sulfuric Acid Plant
• Shanghai Stock Exchange Sustainability Reporting Guidelines for Listed Companies No.4 (January 2026 Revision)
Electrochemical Plant Zhejiang Juhua Co., Ltd. Electrochemical Plant The report also references:
Juhua Chinlon Company Quzhou Juhua Chinlon Co., Ltd. • United Nations Sustainable Development Goals (UN SDGs)
Jusheng Fluorine Chemicals Company Zhejiang Jusheng Fluorine Chemicals Co., Ltd. • The GRI Standards (2021 Edition) issued by the Global Reporting Initiative
Jinju Chemicals Company Zhejiang Jinju Chemicals Co., Ltd.
• China Enterprise Sustainability Reporting Guidelines (CASS-ESG 6.0): General Framework
Quhua Fluorine Chemistry Company Zhejiang Quhua Fluorine Chemistry Co., Ltd.
• MSCI ESG Rating Methodology
Jusu Chemicals Company Zhejiang Quzhou Jusu Chemicals Co., Ltd.
Ningbo Juhua Chemical Company Ningbo Juhua Chemical & Science Co., Ltd.
Technology Center Company Zhejiang Juhua Technology Center Co., Ltd. Access to the Report
Fluorine New Chemical Company Zhejiang Quzhou Fluorine New Chemical Co., Ltd.
This report is available in both Simplified Chinese and English and can be accessed via:
Lanxi Fluorine Chemicals Company Zhejiang Lanxi Juhua Fluorine Chemicals Co., Ltd.
Tianjin Barrier Company Tianjin Barrier Pack Co., Ltd.
• Company website: http://www.jhgf.com.cn
Lianzhou Refrigerant Company Zhejiang Quzhou Lianzhou Refrigerant Co., Ltd. • Shanghai Stock Exchange website: http://www.sse.com.cn
Feiyuan Chemical Company Zibo Feiyuan Chemical Co., Ltd. In case of any discrepancy, the Simplified Chinese version shall prevail.
New Materials Research Institute Company Zhejiang Juhua New Materials Research Institute Co., Ltd.
Chuangfu High-Tech Company Zhejiang Chuangfu High-Tech New Materials Co., Ltd.
Contact Information
Global Fluorine Company Global Fluorine Chemicals Co., Ltd.
Ningbo Juxie Company Ningbo Juxie Energy Co., Ltd. Address: Kecheng District, Quzhou City, Zhejiang Province, China
Juhua Hong Kong Company Juhua Trading(Hong Kong) Co., Ltd. Tel: 0086-570-3097374 0086-570-3091758
Jian’an Petrochemical Engineering Company Zhejiang Juhua Jian’an Petrochemical Engineering Co., Ltd. Fax: 0086-570-3091777
Jubang High-Tech Company Zhejiang Jubang High-Tech Co., Ltd. Email: jhgf@juhua.com
Middle East Trading Company Juhua Trading Middle East Fze.
Juhui Company Zhejiang Juhui New Materials Co., Ltd.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Message from the Chairman
Creating Value through Responsible Development
Juhua Corporation adheres to a people-oriented development philosophy, promotes coordinated development
through innovation, and actively fulfills its social responsibilities.
During the reporting period, the Company's operating performance grew steadily, and its development quality
continued to improve, generating stable returns for shareholders. At the same time, it actively gave back to society by
paying taxes in compliance with laws and regulations and creating job opportunities, thereby continuously delivering
comprehensive value. Company continuously increased investment in research and development, focusing on key
Chairman of the Board, Zhejiang Juhua Co., Ltd.： technological breakthroughs and the industrialization of scientific and technological achievements, further enhancing
Zhou Liyang
its innovation capabilities. In terms of safety management, the Company continuously improved its safety governance
system, strengthened risk prevention and control mechanisms, and fostered a strong safety culture throughout the
organization. In addition, the Company actively participates in social welfare and community development,
contributing to social progress through initiatives such as rural revitalization support, education assistance programs,
charitable donations, and volunteer services and community engagement activities.
The Company firmly believes that only by continuously creating social value can sustainable and long-term
development be achieved in an evolving economic environment.
Strengthening Governance and Enhancing Development Resilience
At a critical stage of accelerating global green transformation and industrial upgrading, the world economy is entering
a new phase characterized by low-carbon development, technological innovation and high-quality growth. China Juhua Corporation continuously improves its modern corporate governance system, enhances decision-making
continues to advance its “Dual Carbon” strategy and improve its ESG regulatory framework, guiding enterprises to efficiency and promotes standardized management.
actively fulfill their responsibilities in promoting economic development, social progress and ecological sustainability. Sustainable development principles are fully integrated into the Company’s strategy formulation, operational
As an important participant in China’s fluorochemical industry, Juhua Corporation has consistently aligned its management and risk control processes. The Company has further optimized its governance structure and improved
development with national strategies and industry transformation trends. The Company integrates sustainable relevant management systems to strengthen compliance and governance effectiveness. At the same time, the
development principles into its overall business strategy, actively explores opportunities arising from the green Company incorporates key ESG-related indicators—such as energy conservation and emission reduction,
transition, and continuously enhances its core competitiveness through industrial upgrading. Juhua Corporation is environmental protection, workplace safety and compliance management—into its performance evaluation system,
committed to playing a leading role in the transformation and upgrading of the industry in the new development stage. ensuring that sustainability objectives are effectively implemented across all levels of management. The Company also
continues to strengthen its business ethics framework, integrity management system, information security
management and comprehensive risk management capabilities, providing a solid institutional foundation for stable
Promoting Green Development and Advancing Low-Carbon Transformation and sustainable development.
Juhua Corporation adheres to the concept of green development and continuously improves its green manufacturing
system, embedding energy conservation and resource efficiency throughout the entire production and operation Working Together Toward a Sustainable Future
process.
Looking ahead, green development and technological innovation will profoundly reshape the global industrial
During the reporting period, the Company carried out a series of energy-saving and carbon reduction initiatives, landscape. The Company will continue to pursue innovation-driven development, engage in global industrial
including continuous optimization of production processes, upgrading of key production equipment, application of cooperation with a more open perspective, and advance industrial upgrading and value creation with greater
high-efficiency motors and magnetic levitation blowers, implementation of waste heat recovery technologies and determination.
gradual increase in the use of renewable and green electricity. These measures have effectively improved energy
With sustainable commitment, the future is promising. Juhua Corporation stands ready to work hand in hand with all
utilization efficiency and enhanced the Company’s operational sustainability. At the same time, the Company actively
stakeholders to advance the green transformation and sustainable development of the industry, contributing to a
advanced the construction of green factories, and a number of its subsidiaries were newly recognized as provincial or
world of harmony between human and nature.
municipal green and low-carbon manufacturing enterprises and clean production demonstration units.
Leveraging its technological advantages, the Company continues to expand its presence in emerging green application
scenarios. The Company’s independently developed immersion liquid cooling technology has been selected as a
national demonstration project for advanced green and low-carbon technologies, providing efficient and
energy-saving cooling solutions for data centers and other new infrastructure. This innovation further enhances the
green competitiveness of the Company’s fluorochemical industry chain and supports the low-carbon transformation
of the industry.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
About Juhua Corporation
Company Overview
Net Profit Attributable to Shareholders of the Listed Company（RMB 100 million)
Juhua Corporation was established in 1998 and is an advanced integrated manufacturing base in China’s fluorochemical and chlor-alkali 30 23.81
chemical industries. The Company currently has total assets exceeding RMB 38.2 billion and operates 29 wholly owned and controlled 20
subsidiaries. It has also established an overseas production base in Abu Dhabi, the United Arab Emirates, further enhancing its global 5.86 6.02
presence and international operational capabilities. Committed to innovation-driven development strategy, the Company has built a R&D
system spanning Hangzhou and Quzhou, supported by a number of high-level innovation platforms, including a National Enterprise 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Technology Center, the National Fluorine Materials Engineering Technology Research Center, a national pilot-scale platform for the Net Profit Attributable to Shareholders of the Listed Company
manufacturing industry, the China Chemical New Materials (Quzhou) Industrial Park, the postdoctoral research workstation, as well as
provincial key enterprise research institutes.
Cash Dividends Distributed by the Company（RMB 100 million)
The Company is a leading advanced manufacturing base for fluorochemical and chlor-alkali new materials in China. Its principal
businesses cover the R&D, production, and sales of basic chemicals, fluorochemicals, food packaging materials, petrochemicals, and 7.29
downstream products. It has established a comprehensive self-supporting industrial system encompassing chlor-alkali, sulfuric acid, coal 6 4.43 4.22 4.12
chemical, and basic fluorochemical sectors, which underpin a complete fluorochemical value chain. This value chain includes basic 4
supporting raw materials, fluorine-based refrigerants, organic fluorine monomers, fluoropolymers, and fluorinated fine chemicals, while 2 0.31 0
also extending into the petrochemical sector. 0
Building on its integrated industrial chain, the Company focuses on developing green technology application products in new materials,
Cash Dividends Distributed by the Company
environmental protection, new energy, and emerging applications. It continues to increase investment in green industries and R&D,
actively capturing opportunities arising from energy structure transition, clean technologies, and the rapid development of the industrial
internet. Leveraging its unique strengths, the Company is advancing toward high-end, intelligent, and green transformation, striving to
become a leading fluorochemical enterprise in China and a first-class supplier and service provider of chemical new materials.
Juhua Corporation was established and The Company initiated its “Third Entrepre- The Company achieved a full portfolio The 30,000-tonne PVDF expansion
listed on the Shanghai Stock Exchange. neurship” phase with the construction of covering first- to fourth-generation project was completed, marking the
the HFC-134a project, marking a new refrigerants, marking a major milestone Company’s strategic expansion into new
stage of industrial restructuring centered in its transformation toward high-end energy materials.
on high-technology development. products.
The Company obtained integrated The Company entered the Clean Devel- Zhongjuxin Technology Co., Ltd. was Annual operating revenue exceeded
certification for quality, environmental, opment Mechanism (CDM) field. The established, enabling the Company to RMB 20 billion, making it the largest
and occupational health and safety HFC-23 decomposition project became enter the electronic chemicals sector and listed fluorochemical company in China. It
management systems, becoming the China’s first CDM project in the form a dual development structure was included in the CSI A100 and CSI 300
first chemical enterprise in China to fluorochemical sector, achieving break- combining basic chemicals and high-end indices, completing its transformation
achieve such integration. throughs in greenhouse gas reduction materials. from a traditional chemical enterprise to
and carbon trading. an innovative enterprise focused on
high-performance fluorine and chlorine
new materials.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Business Overview
As a leading enterprise in China’s fluorochemical and chlor-alkali new materials industries, the Company focuses on its core Honors and Awards
fluorochemical business and has developed a diversified business system encompassing the R&D, production, and sales of basic
chemicals, fluorochemicals, food packaging materials, and downstream products. Through strong integration of chlor-alkali chemistry,
sulfuric acid chemistry, coal chemical processing and fluorochemical production, the Company has built a complete industrial chain from
upstream resources to downstream high-value applications. This chain spans key segments including fluorochemical feedstocks, Top 100 ESG Pioneer Listed Companies Shanghai Securities News
in the Yangtze River Delta (2025) “Golden Quality · ESG Award”
refrigerants, organic fluorine monomers, fluoropolymers, and fluorinated fine chemicals, and extends into petrochemicals and new
materials, enabling vertical integration and synergetic development.
Within the fluorochemical sector, the Company possesses industry-leading integrated capabilities in hydrofluoric acid and chlorinated
products, and has become one of the world’s leading manufacturers of refrigerants, offering a full range of first-to-fourth-generation Shanghai Stock Exchange ESG
Wind ESG Rating: AA
Best Practice Cases
refrigerants, as well as new-generation environmentally friendly alternatives. Its fluoropolymer product portfolio is comprehensive, with
major products ranking among the top in the industry by capacity. Fluorinated fine chemicals continue to move toward high-end and
specialized applications, serving strategic emerging industries such as semiconductors, new energy, and data centers.
In the chlor-alkali and basic chemicals segment, the Company has significant competitive advantages in caustic soda and related Huazheng ESG Rating: A CSI ESG Rating: AA
products. Its production capacity for VDC and PVDC ranks among the global leaders. The coal chemical and sulfuric acid operations
provide stable upstream supply of key raw materials, improving resource utilization efficiency and strengthening industrial chain
coordination. The Company’s products are widely applied across multiple industrial sectors, including national defense, aerospace,
electronic information, environmental protection, new energy, healthcare, and food, providing essential supporting materials for strategic SynTao Green Finance ESG Rating: A- CSI A100 Index
emerging industries.
Corporate Culture Shanghai Stock Exchange Information
China Securities Journal “Golden Bull
Disclosure Rating A (highest rating)
Information Disclosure Award”
for 2024–2025
Spirit
Mission
Self-improvement Top 500 Independent Production and
To create a world-class Operating Petroleum and Chemical Top 100 Fine Chemical Enterprises
Confidence
enterprise with global Enterprises in China(Ranked 29th) in China(Ranked 10th)
competitiveness. Vision Collaboration Top 500 Listed Companies(Ranked 39th)
Integration
To be a respected enterprise.
Securities Times “Top 100 Most Valuable Top 10 Zhejiang Listed Companies Most
Main Board Listed Companies in China” Favored by Institutional Investors
The Ninth Batch of Manufacturing Single 2025 5G Factory
Corporate Values Champion Enterprises List issued by the Directory issued by the Ministry of
Ministry of Industry and Information Technology Industry and Information Technology
To create value and Jusheng Fluorine Chemicals Company Jusheng Fluorine Chemicals Company
contribute to society.
Zhejiang Provincial Green and Low-Carbon Factories Zhejiang Provincial “Benchmark Enterprise
Quhua Fluorine Chemistry Company for Artificial Intelligence Application”
Lanxi Fluorine Chemicals Company Jusu Chemicals Company
Zhejiang Province Fourth Batch of
“Cloud-Based Enterprises” in Manufacturing
and Top 100 Competitive Enterprises
Quhua Fluorine Chemistry Company,
Ningbo Juhua Chemical Company
Jusu Chemicals Company
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
United Nations Sustainable Development Goals (SDGs) Addressed in This Chapter:
PART
Addressing Climate Change
and Advancing Low-Carbon
Development
Highly Material Issues Addressed in This Chapter:
As a leading enterprise in the fluorochemical industry, Juhua Corporation fully recognizes its significant • Response to Climate Change
responsibility in addressing climate change. Centered on “low-carbon development across the entire value
chain, technological self-reliance, and green production”, it actively responds to China’s “Dual Carbon”
strategy and firmly advances the green and low-carbon transformation of its operations. The Company
continuously enhances its overall capability to manage climate-related risks, striving to be an active
practitioner of the clean and low-carbon energy transition and to promote deep decarbonization across the
fluorochemical value chain.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Climate Governance Risk Category & Description Risk Impact
Exposure Under
Different Scenario
Response
High- Low- Measures
Juhua Corporation has incorporated climate change management into key considerations of its operations and strategic Risk Category Risk Description Operational Impact Financial Impact Emission Emission
Scenario Scenario
decision-making. It continuously trackes key indicators such as total energy consumption, energy efficiency, and energy intensity,
promptly identifying abnormal energy consumption and systematically unlocking potential for energy saving and carbon reduction.
Conduct facility
The Board of Directors is the highest decision-making body responsible for climate-related matters. The Board reviews climate Production
climate vulnerability
Increased repair assessments;
strategies, oversees climate performance and ensures that climate-related issues are integrated into the Company’s development interruptions, strengthen flood
Extreme disruptions to raw and reconstruction control and
strategy. Acute Risk weather events material and product costs, revenue Medium High high-temperature
such as transportation, losses from protection design;
typhoons and operational production establish emergency
Climate-related matters fall within the scope of the Strategy and ESG heavy rainfall disruptions in plant interruptions, response plans and
facilities and higher insurance reserve emergency
Committee, which is responsible for reviewing climate-related policies warehouses, expenses supplies; improve
and targets, monitoring implementation progress and evaluating Board of increased safety risks insurance coverage
Directors Physical
climate risks and opportunities. It convenes regularly to hear dedicated
Risk
reports from management on climate-related matters and provides
Implement
guidance to ensure alignment with the Company’s overall strategy, Strategy and ESG water-saving
Rising operating technologies;
regulatory requirements, and stakeholder expectations. Committee Reduced cooling costs, higher
Long-term efficiency, restrictions electricity and upgrade circulating
temperature water systems;
The Management Team has established a coordinated mechanism for Chronic Risk increases and on water usage water prices,
Medium Medium improve energy
water resource affecting continuous increased capital efficiency manage-
climate-related work, responsible for identifying and managing production, increased expenditures for
shortages energy consumption equipment ment; plan
climate-related risks and opportunities. Through regular meetings and The Management Team upgrades operations in areas
with lower water
dynamic monitoring of climate and sustainability indicators, it prepares stress
dedicated assessment reports for submission to the Strategy and ESG
Committee.
Conduct carbon
The ESG Working Group, as the core execution body for climate ESG Working Group inventories and
emissions reduction
management, collaborates with various business units to advance Tightening planning; promote
carbon Restrictions on Higher carbon industrial upgrading;
low-carbon operational initiatives, promptly consolidates and reports emission production of costs; potential increase investment
constraints high-GWP products; asset impairment; High in low-carbon
key progress and potential risks, and supports a closed-loop increased complexity increased Medium
and refrigerant in regulatory compliance and technologies;
management system covering “strategic decision-making – process phase-down compliance penalty costs develop low-GWP
policies refrigerants;
control – implementation – risk feedback.” optimize product
portfolio; strengthen
policy engagement
Strategy
Tightening
environmental Increased Maintain strict
policies, environmental environmental
Transition Policy and stricter Increased operational protection compliance;
Regulato- emission constraints; some investments; higher implement pollution
The fluorochemical industry is closely associated with greenhouse gas emissions and is characterized by high energy intensity, complex Risk ry Risk standards and production processes capital and control measures;
regulatory may require operating strengthen process
production processes, sensitivity to refrigerant and fluorinated materials policies, and significant capital investment requirements. requirements, upgrades; potential expenditures; Medium High
management;
Against the global backdrop of climate action, the industry faces a range of challenges, including increasingly stringent carbon emission highter production potential monitor regulatory
compliance suspension or facility short-term developments;
constraints, market volatility resulting from the energy transition, and growing complexity in resource management. At the same time, obligations phase-out pressure on adopt advanced
pressure on profitability and technologies to
accelerated technological innovation and the development of clean energy systems are creating new opportunities for sustainable chemical cash flow reduce emissions
industrial growth. enterprises
Juhua Corporation attaches great importance to the potential impact of climate-related risks and opportunities on its operations. During
the reporting period, the Company conducted a systematic climate-related assessment, evaluating potential impacts on both operations Stricter energy Upgrade industrial
consumption Operational Increased chains toward
and the supply chain, and developed corresponding response strategies. and carbon constraints for higher-value
control, the certain products; investments and products; implement
operating costs; Medium High
In alignment with the Task Force on Climate-related Financial Disclosures (TCFD) framework, climate-related risks are categorized into production of need for technologi- pressure on profit energy-saving
basic chemical cal upgrades margins retrofits; monitor
physical risks and transition risks. For physical risks, the Company refers to the Shared Socioeconomic Pathways (SSP) outlined in the products faces policy changes and
Sixth Assessment Report (AR6) issued by the Intergovernmental Panel on Climate Change (IPCC). For transition risks, it draws on climate constraints respond proactively
scenarios developed by the Network for Greening the Financial System (NGFS), conducting comparative analyses of potential risks under
baseline scenarios and various climate scenarios for 2030 and 2050.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Strengthen
commercialization of Develop energy
Reduced reliance on Stabilized long-term
third-generation transition roadmap;
Accelerated Increased use of fossil fuels; lower energy costs;
Increased pressure to refrigerants; increase increase the share of
replacement of Increased R&D renewable energy Scope 2 emissions; reduced exposure to Medium High
adjust product R&D investment in renewable energy in
fluorinated investment and and clean electricity improved energy carbon and electricity
Technolo- structure and fourth-generation total energy
refrigerants capital expenditure; Medium High resilience price volatility
gy Risk accelerate develop- refrigerants and consumption
and shorter risk of impairment
ment of new emerging products; Energy
product life of existing assets
products expand pilot-scale Transition
cycles
testing capabilities; and
promote localization Innovation
of key technologies Increase investment
Reduced emissions
Development of Avoided carbon costs in low-carbon
of high-GWP gases
greenhouse gas and regulatory technology R&D;
during production
reduction technolo- penalties; improved High High promote demonstra-
and enhance
Rising prices of gies such as CCUS long-term asset tion projects and
environmental
key raw Optimize cost sustainability commercialization
compliance
materials(e.g., management;
fluorspar, Increased costs, improve energy
Increased production
hydrofluoric reduced profitabili- efficiency;
costs and supply Medium High
acid) and ty, and cash flow strengthen supply
chain instability
energy, and volatility chain coordination
carbon and resource Development of Upgrade product
Transition Enhanced product Strengthen R&D and
emission security low-GWP refrigerants structure and
Product premium and certification of green
Risk controls and environmentally increase proportion Medium High
Market Innovation revenue growth products; expand
friendly fluorinated of high-value
potential commercialization
Risk materials products
Shifts in
customer
Reduced sales Optimize product
demand Shrinking markets for
volumes, increased structure; expand
toward high-emission Strengthen
pricing pressure, downstream markets
low-carbon products; need to Medium High International Improved interna- collaboration with
inventory risks, such as new energy
and environ- adjust product cooperation on tional compliance Expanded market international
potential asset and electronic
mentally portfolio climate initiatives and capabilities and access and reduced Medium Medium organizations,
impairment chemicals
friendly low-carbon brand influence regulatory risks research institutions,
products technologies and industry
partners
Market
Strengthen ESG Expansion
disclosure; improve
ESG Increased financing
Restrictions on transparency of
Reputational performance costs; potential Increase investment
partnerships; environmental Rising demand for
concerns from impact on Low Medium in green technolo-
Risk potential financing performance; environmentally Increased production
investors or corporate valuation gies; strengthen
challenges maintain proactive friendly fluorinated capacity and market Increased revenues Medium High
stakeholders and brand value marketing and brand
stakeholder materials and HFO expansion
development
communication refrigerants
Obtain policy
support related to
Reduced financial Strengthen policy
Exposure Under energy conservation, Access to subsidies,
Opportunity Category & Description Opportunity Impact pressure on engagement and
Different Scenario emission reduction, tax incentives, and Low Medium
technology upgrades project compliance
green manufacturing green financing
Response Measures and R&D management
High- Low- and low-carbon
Opportunity Opportunity technologies
Operational Impact Financial Impact Emission Emission
Category Description
Scenario Scenario
Policy
Incentives
Improved operational Continue Strengthen quota
efficiency; reduced energy-saving management;
Adoption of Adequate HFC Stable production Stable revenues and
energy and raw Lower operating upgrades; optimize product
Resource energy-efficient production quotas planning and potential profitability
material consump- costs and improved Medium High implement refined High Medium structure; accelerate
Efficiency equipment and green supporting stronger market advantages under
tion; improved profit margins energy management development of
technologies operations position quota scarcity
production stability and benchmarking low-GWP alterna-
of key equipment tives
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
To address the risks and opportunities associated with climate change, the Company has systematically incorporated energy transition
and low-carbon development into its medium- and long-term strategic planning, continuously advancing a transition pathway that
balances climate mitigation and adaptation.
On the one hand, the Company continues to optimize its energy mix and actively expand the use of clean energy. Through initiatives such
as green electricity procurement, renewable energy certificates (RECs), and the development of photovoltaic power generation projects,
the Company steadily increases the share of renewable energy in its energy consumption and reduces reliance on fossil fuels.
On the other hand, in support of its energy conservation and emissions reduction objectives, the Company has implemented a series of
energy efficiency retrofits and process optimization initiatives across its production facilities. High-energy-consumption and
low-efficiency equipment is being gradually phased out and replaced with advanced technologies, improving both energy utilization Case | Conduct Product Carbon Footprint Certification to Address Emerging Green Trade
efficiency and operational reliability. Regulations
At the same time, the Company is proactively investing in low-carbon technologies and exploring the application of carbon capture,
utilization and storage (CCUS) solutions. The Company has participated in the development of carbon capture technologies and holds a The Company actively responds to the global transition toward a low-carbon economy and the evolving landscape of
patent for “A Carbon Dioxide Capture Device.” These efforts help cultivate long-term emissions reduction potential while supporting the green trade regulations. Focusing on key export products and critical business units, the Company has systematically
development of a “fluorine-based zero-carbon industrial chain” aimed at achieving decarbonization across the entire value chain. conducted life-cycle carbon emissions accounting to quantify product carbon footprints, continuously refining data
boundaries, calculation methodologies, and management processes to enhance the accuracy and comparability of
With technological innovation as the core driving force, the Company is advancing carbon reduction through the coordinated carbon emission information. By the end of the reporting period, the Company has completed carbon footprint
implementation of process upgrades, equipment modernization, and enhanced management systems. While effectively addressing certification for 12 products.
climate-related risks, the Company also actively captures the opportunities created by the global green transition.
Case | Systematic Implementation of the HFC-23 Decomposition CDM Project to Significantly
Reduce Greenhouse Gas Emissions
Impact, Risk and Opportunity Management
Juhua Corporation incorporates climate-related impacts, risks and opportunities into its enterprise risk management system, ensuring
As one of the world’s largest manufacturers of fluorinated refrigerants, Juhua Corporation attaches great importance to greenhouse gas that climate factors are systematically embedded in strategic planning, operational management and investment decision-making
emissions reduction and actively implements the National Plan for China’s Implementation of the Montreal Protocol on Substances that Deplete processes.
the Ozone Layer (2025–2030). The treatment of HFC-23 has been identified as a key climate action for the Company. HFC-23 is a by-product
generated during the production of HCFC-22. It has an extremely high global warming potential (GWP) of approximately 11,700, and its long The Company conducts a comprehensive assessment of climate-related risks and opportunities in relation to its strategy, value chain,
atmospheric lifetime means that unmanaged emissions could have significant adverse impacts on the climate system. and financial position. Leveraging management processes that cover the identification, assessment, prioritization, response, and
Since 2006, the Company’s subsidiary Quhua Fluorine Chemistry Company pioneered the implementation of an HFC-23 decomposition Clean monitoring of sustainability impacts, risks, and opportunities, the Company develops a climate risk register and formulates
Development Mechanism (CDM) project. The project became the first HFC-23 decomposition project in China to receive government approval, corresponding mitigation strategies and management plans. It continuously monitors and evaluates the effectiveness of climate risk
official registration under the United Nations Framework Convention on Climate Change (UNFCCC), and verified carbon emission reductions management, employing a combination of qualitative and quantitative approaches to identify climate-related risks and opportunities.
(CERs). This initiative filled an important technological and policy gap in China’s climate mitigation efforts. Through standardized project
management and ongoing collaboration with international institutions, the Company has ensured that its emissions reduction achievements are
recognized by the international carbon market and regulatory frameworks. Identification Assessment Monitoring Management
To further support national greenhouse gas mitigation targets, the Company has continued to increase investment in HFC-23 decomposition
The ESG Working Group Based on the likelihood of The Company establishes a The Company formulates
facilities. Multiple new decomposition units have been constructed, enabling comprehensive treatment coverage of HFC-23 emissions. The
regularly reviews external occurrence and the magnitude dynamic monitoring mechanism phased emissions reduction
decomposition process achieves a destruction efficiency exceeding 99.99%, with no detectable HFC-23 emissions in the exhaust gas after
information sources, including of potential impact, the to track updates in policies and plans (including energy
incineration. This effectively enables the complete harmless treatment of HFC-23. The high-temperature incineration technology used in the
policies and regulations Company establishes an regulations, technological efficiency improvements and
project has been included in the National Catalogue of Key Low-Carbon Technologies for Promotion. Through its integrated practices in green
related to climate change and assessment indicator system developments, and physical risk process optimization),
and low-carbon manufacturing and intelligent production, Quhua Fluorine Chemistry Company was recognized as a “Zhejiang Provincial Green
low-carbon transition, and applies a risk scoring indicators, while integrating incorporates climate-related
and Low-Carbon Factory” in 2025.
research reports, industry methodology to classify real-time operational data in a targets into executive
During the reporting period, the HFC-23 destruction efficiency remained above 99.99%, and the project achieved 45.85 million tonnes of white papers, and meteoro- identified risks and opportuni- timely manner and regularly performance evaluation, and
CO₂-equivalent emissions reductions, equivalent to the amount of carbon dioxide absorbed by approximately 50 million cubic meters of growing logical data, to comprehen- ties into high, medium and low reviewing progress against actively explores collaboration
forest biomass. sively identify transition and levels. A prioritized list is then emissions reduction targets. on low-carbon technologies.The
Through continuous implementation of the HFC-23 decomposition initiative, the Company has effectively fulfilled its obligations under the physical risks relevant to the developed to identify key focus Company also regularly
Montreal Protocol and related international environmental agreements. In September 2025, the Ministry of Ecology and Environment hosted the Company’s business. areas, providing a basis for the discloses its governance
International Scientific Symposium on HFC-23 Emission Control, during which experts and scholars from the United Nations and leading Climate-related opportunities formulation of subsequent structure, risk mitigation
research institutions visited the Company’s production facilities and environmental protection infrastructure. The delegation reviewed the are also incorporated, forming management strategies. measures, and progress in
Company’s progress in international compliance and conducted in-depth technical exchanges. a consolidated risk and translating climate-related
opportunity inventory. opportunities into business
outcomes.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Metrics and Targets The Company strictly complies with the requirements set out in relevant regulatory documents, including the Notice on Strengthening
Greenhouse Gas Emissions Reporting and Verification for Enterprises in Key Industries (2023–2025) (Huanban Climate Letter [2023] No.
Juhua Corporation systematically implements environmental, health and safety, and corporate social responsibility practices, driving the
Province (Zhe Fa Gai Huan [2018] No. 90). In accordance with the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions
Company’s sustainable development through transformative actions and setting the following targets:
for Chemical Production Enterprises (Trial), the Company conducts annual greenhouse gas emissions accounting and verification. Key
subsidiaries classified as major emitters are subject to annual verification by independent third-party institutions commissioned by
By 2030 By 2060 government authorities, ensuring the accuracy and reliability of emissions data.
The greenhouse gas emissions of Juhua Corporation are presented as follow 1 :
Achieve carbon neutrality and actively participate in
Achieve peak carbon emissions and establish a Indicator Unit 2025 2024 2023
the development of global standards for carbon
low-carbon industrial system.
removal in the fluorochemical industry.
Total greenhouse gas
emissions tCO2 6,137,996.35 6,643,649.67 6,196,018.09
Short-term Target Medium- to Long-term
Indicator Unit Baseline Year (2026) Target (2030) Progress
Greenhouse gas emissions tCO2/RMB million
intensity revenue 227.40 271.59 299.98
Reduction Rate of
Carbon emissions tCO2 2025 ↓1% ↓5% In progress
per unit of output Scope 1 greenhouse gas
emissions tCO2 3,095,471.09 3,341,540.96 3,046,771.08
Scope 2 greenhouse gas
CO₂ recycling and tCO2 3,042,387.80 3,302,108.70 3,149,247.00
tCO2 / 90,000 tCO₂ 140,000 tCO₂ In progress emissions
utilization volume
Scope 3 greenhouse gas
emissions 2 tCO2 137.46 / /
CO₂ recycling and utilization
volume tCO2 145,124.00 129,986.00 108,604.84
Clean electricity purchased
via green certificates kWh 410,000,000 531,120,000 16,992,000
consolidation scope. Due to changes in the statistical scope, historical data have been retrospectively updated.
gradually expand to cover more categories and a more comprehensive range.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
United Nations Sustainable Development Goals (SDGs) Addressed in This Chapter:
PART
Strengthening Governance
to Safeguard Sustainable
Development
Highly Material Issues Addressed in This Chapter:
Juhua Corporation adheres to the principle of high-quality development driven by robust governance, • Sustainable Development Governance • Data Security and Customer Privacy Protection
continuously optimizing its governance structure, strengthening risk management, and promoting the • Corporate Governance • Risk Management and Internal Control
systematic integration of ESG principles into corporate strategy and operations. The Company is committed • Anti-Bribery and Anti-Corruption • Due Diligence
to building a transparent, efficient and accountable modern governance system. By improving • Fair Competition and Anti-Unfair Practices • Stakeholder Engagement
decision-making mechanisms, enhancing supervisory systems and strengthening compliance management,
the Company continuously improves governance effectiveness and creates long-term sustainable value for
shareholders, customers, employees and society.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
ESG Governance Strategy
Juhua Corporation adheres to the concept of sustainable development and continuously improves its governance system in alignment Juhua Corporation deeply recognizes sustainable development as a defining theme of the current era. Guided by the strategy of
with its development stage and strategic objectives. The Company has established an ESG strategic framework suited to its business “Digital-Intelligent Transformation, Green Development, and New Juhua Journey”, the Company has established a comprehensive
characteristics and embedded ESG management requirements throughout all aspects of its operations. The Company promotes stable sustainability organizational system and management mechanism. The Company integrates sustainability into governance and
operations, fulfills social responsibilities systematically, and continuously enhances governance standards to advance the coordinated operations, continuously advancing the implementation of its sustainability strategy.
achievement of sustainable development goals. The Company focuses on green technology fields such as new materials, environmental protection, new energy and new applications,
actively aligning with the “Dual Carbon” goals and accelerates its transition toward green and low-carbon development. Leveraging its
Governance strengths in new materials, the Company enhances synergies in the new energy sector, optimizes the application of high-performance
fluoropolymers and green products, and promotes industrial upgrading toward high-end and low-carbon development. At the same
To systematically advance ESG work and improve disclosure quality, the Company has established a three-tier ESG governance structure time, the Company actively responds to domestic and international sustainability initiatives and collaborates with value chain partners to
of “decision – management – execution.” This framework ensures a clear and efficient governance loop through strategic strengthen the foundation for sustainable development and enhance the global influence of Chinese enterprises.
decision-making at the Board level, review and oversight by the Strategy and ESG Committee, coordination and management by the
Management Level and implementation by the ESG Working Group. During the reporting period, the Company revised the ESG
Information Disclosure Management Measures and the Social Responsibility System (2025 Revision), further strengthening internal ESG
governance mechanisms. The Company conducted 2 ESG-themed training sessions to promote the systematic integration of
Double Materiality Assessment
sustainability principles into corporate governance. The implementation of ESG materiality management is a key foundation for advancing ESG strategy, identifying risks and opportunities,
and improving disclosure quality. To further clarify management priorities and enable dynamic optimization, during the reporting period,
• Highest decision-making body for ESG matters the Company conducted a double materiality assessment, evaluating ESG topics from both financial materiality and impact materiality
• Reviews and approves ESG goals, strategies, plans and implementation programs, and based on its business characteristics and industry trends, and incorporating stakeholder feedback.
Decision
allocates ESG-related resources
• Reviews major ESG risks and significant negative events and corresponding response >> Materiality Assessment Process <<
Board of Directors plans
• Reviews and approves ESG reports
• Analyze business activities and relationships;
• Identify external influences based on policy, regulation and industry trends;
Understanding business context • Improve stakeholder engagement mechanisms.
• Reviews ESG strategies, risk identification and assessment results, and confirms risk
control actions
• Oversees ESG governance processes, including identification, assessment, management
Strategy and and implementation progress, reviews ESG development plans and action programs
ESG
Management
• Receives reports from the Management Level and ESG Working Group and reports
Committee
progress to the Board • Identify ESG issues based on Shanghai Stock Exchange guidelines, policy research, due diligence
and peer benchmarking;
• Develop a company-specific list of ESG issues.
• Develops ESG strategy, governance framework, institutional systems and implementation Establishing the list of issues
rules
• Identifies and oversees ESG-related risks and opportunities
Management • Guides and supervises ESG implementation and evaluates overall ESG performance
Level • Reviews ESG reports and major ESG-related matters • Conduct preliminary analysis of the impact level of each issue through questionnaire surveys;
• Organize stakeholder engagement to collect views on the nature of impacts and the likelihood of
occurrence of each issue;
Assessment and validation • Integrate input from internal and external stakeholders as well as experts to form the materiality
assessment results for each issue.
• Identifies ESG material topics based on stakeholder expectations
• Develops ESG plans and coordinates implementation
Execution
• Organizes ESG data collection and prepares ESG reports
• Tracks subsidiary ESG performance and drives improvement
ESG Working • Develop a materiality matrix in alignment with the Company’s risk management and development
Group • Conducts ESG training and communication
strategy;
• Performs other ESG-related responsibilities
• Disclose the results in the ESG report following Board review.
Issue reporting
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
During the reporting period, Juhua Corporation identified a total of 27 ESG issues. Among them, 8 issues are of double materiality, 9 issues
are financially material only, 7 issues are impact material only, and 3 issues are neither financially nor impact materially significant. 3 Stakeholder Expectations Communication Channels
>> Materiality Matrix of Juhua Corporation <<
Compliance with laws and regulations
Tax compliance Stock exchange meetings
Employment generation Government reporting
Government & Environmental protection Government inspections and site visits
Regulators Contribution to local economic development Platform-based disclosures
Response to climate change
Environmental compliance Chemical safety
management Corporate governance Platform-based disclosures
Product and service safety and quality Financial performance Investor meetings and site visits
Stakeholder communication Risk management and compliance SSE E-interaction platform
Sustainable development governance
Water resources Non-financial information disclosure General meetings of shareholders
Shareholders & Investors
utilization Waste disposal Investor feedback Company announcements
Due diligence Energy Occupational health and safety
utilization Talent cultivation and development
Social contribution
Risk management and internal control
Impact Material
Innovation driven
Rural revitalization Employee rights and benefits Pollutant emission
Corporate governance Social contribution Visits and reception
Supply chain security
Environmental impact Environmental information disclosure
Data secutiry and client privacy protection Circular economy Harmonious community development Official social media (WeChat) communication
Communities Public welfare activities
Anti-commercial bribery and anti-corruption
Clean technology opportunities
Ecosystem and biodiversity
conservation Anti-unfair competition
Equal treatment of small and medium-sized enterprises Communication and cooperation
On-site visits and cooperation
Business ethics
Procurement platforms
Transparent procurement
Suppliers & Partners Supplier management training
Supply chain management
Financial Material Customer complaint platforms
Product quality Satisfaction surveys
High-quality service After-sales service
Environmental Social Governance Customers R&D and innovation Telephone follow-ups
Stakeholder Engagement
Occupational health and safety Employee satisfaction surveys
Juhua Corporation is committed to building long-term relationships of mutual trust and mutual benefit with its stakeholders. Guided by Talent development and training Internal and external training
the objective of co-creating value and achieving win-win outcomes, the Company continuously expands and deepens its sustainable Employee rights and benefits Employee representative congress
Employees Diversity and equality Labor union
cooperation ecosystem. The Company has established a systematic stakeholder communication mechanism, maintaining open and
timely dialogue with both internal and external stakeholders. Through these engagements, the Company gains a comprehensive
understanding of stakeholder expectations and responds proactively through concrete actions.
During the reporting period, the Company held 4 performance briefings, organized 3 large-scale investor open-day events, received over
Green products Media coverage
conference calls. Media Social contribution
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Corporate Governance • The Board of Directors serves as the standing decision-making body for the Company’s
operations and is accountable to the General Meeting of Shareholders. The Board has
established four specialized committees, each with clearly defined responsibilities and
Institutional System effective coordination mechanisms, ensuring standardized and efficient corporate
governance.
• The Company has formulated the Rules of Procedure for the Board of Directors, which
Juhua Corporation strictly complies with the requirements of relevant laws, regulations and normative documents, including the regulate the performance of duties by Directors and enhance compliance, standardiza-
tion and scientific decision-making.
Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, the Code of Corporate Governance Effectiveness of
Performance • The Company continuously improves its Director performance evaluation mechanism,
for Listed Companies, and the Law of the People’s Republic of China on State-owned Assets of Enterprises. The Company has conducting regular assessments and comprehensive reviews of Directors’ performance.
The Board of Directors, independent Directors and all specialized committees perform
established a governance structure consisting of the General Meeting of Shareholders, the Board of Directors and its specialized
their duties strictly in accordance with applicable laws and regulations, the Articles of
committees, and continuously optimizes its organizational structure, clarifies the division of responsibilities, and enhances the Association, internal governance rules.
performance of governance bodies, thereby ensuring a balanced protection of the interests of all stakeholders. Board of • During the reporting period: The Board of Directors held 9 meetings; a total of 40
Directors proposals and reports were reviewed or heard; the average attendance rate of Directors
During the reporting period, the Company further optimized its governance structure by completing the abolition of the Board of was 100%; the specialized committees also held 9 meetings, reviewing or hearing 40
proposals and reports.
Supervisors and the transfer of its functions to the Audit Committee. At the same time, the Company revised 13 internal policies, including
the Articles of Association, to further strengthen supervisory effectiveness, improve the governance system, and reinforce accountability
and the protection of shareholders’ rights and interests.
• In the nomination and selection of Directors, the Company comprehensively considers
>> Governance Structure of Juhua Corporation << multiple factors, including gender, age, ethnicity, educational background, professional
Board Diversity experience, skill sets, tenure. This ensures that the Board maintains appropriate diversity
and Profession- in knowledge structure, experience background and decision-making perspectives.
al Composition • As of the end of the reporting period, the Board consists of 12 Directors, members
General Meeting of Shareholders possess expertise in finance, risk management and industry-related fields. The Board
includes 1 employee Director and 4 independent Directors.
Board of Directors
>> Board Composition and Appointment Details <<
Remuneration and Appraisal Professional Background
Strategy and ESG Committee Committee Nomination Committee Audit Committee Independent Age Years of
Name Position Gender
Director or not Service Industry Risk Finance &
Experience Management Accounting
Performance and Composition of Governance Bodies Zhou Liyang No Chairman Male 57 4 √
>> Performance of Governance Bodies of Juhua Corporation in 2025 << Li Jun No Vice Chairman Male 59 4 √
Tong Jihong No Director Male 57 9 √
• As the highest authority of the Company, the General Meeting of Shareholders is
convened and conducted in strict accordance with the Rules of Procedure for the Tang Shunliang No Director Male 49 3 √
General Meeting of Shareholders and other relevant regulations. For matters involving
the interests of minority shareholders, the Company adopts a separate vote-counting
Standardized Han Jinming No Director Male 48 6 √
mechanism and discloses voting results in a timely manner, ensuring that all sharehold-
Operations ers—especially minority shareholders—can exercise their rights in a fair and transparent
environment in accordance with the law.
Wang Xiaoming No Director Male 53 9 √
• During the reporting period, the Company convened 3 General Meetings of Sharehold-
ers, and a total of 15 resolutions were reviewed and approved.
Liu Yunhua No Director Male 55 9 √
General
Meeting of
Shareholders • The nomination and election of Board members are conducted in strict compliance with Gong Liyan No Employee Director Female 48 0 √
the requirements of the Company Law of the People’s Republic of China, Shanghai Stock
Exchange Listing Rules, Articles of Association.Directors are elected and replaced by the
General Meeting of Shareholders, with each term not exceeding three years, and Wang Yutao Yes Independent Director Male 48 3 √
Effectiveness of re-election is permitted upon expiration of the term.
Election • Members of the Board possess professional backgrounds, practical experience and Lu Guihua Yes Independent Director Male 57 3 √
Procedures professional competencies appropriate to their duties, and meet all qualification
requirements. During the reporting period, no Director was subject to administrative
penalties imposed by the China Securities Regulatory Commission (CSRC) or other Zhang Zixue Yes Independent Director Male 57 6 √
regulatory authorities, disciplinary sanctions imposed by stock exchanges,
disqualification under the Company Law or designation as a market entry ban recipient.
Liu Li Yes Independent Director Male 46 6 √
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Performance and Remuneration Information Disclosure
The Company incorporates ESG-related issues—such as sustainable development governance, corporate governance, innovation-driven The Company strictly complies with relevant laws and regulations, including the Administrative Measures for Information Disclosure of
development and workplace safety—into the performance evaluation system for management. Remuneration is determined based on Listed Companies and the Shanghai Stock Exchange Listing Rules, as well as internal policies such as the Articles of Association and the
assessment results, thereby promoting the effective implementation of the Company’s sustainability strategy. Information Disclosure Management Measures, to fulfill its information disclosure obligations in accordance with the law and
continuously improve the quality, transparency and effectiveness of its disclosures.
ESG Topic Performance Indicator Weight The Company further enhances voluntary disclosures by enriching the content and formats of disclosures, improving the completeness
and readability of non-financial information in periodic reports, and strengthening the relevance and effectiveness of ad hoc
Sustainable development Failure to meet targets results in corresponding deduction announcements. These efforts enable investors to gain a comprehensive and accurate understanding of the Company’s operating
ESG information disclosure compliance
governance of performance bonuses
performance, value creation logic and development prospects.
Corporate governance Reform tasks Scored based on task completion results (up to +10 points) The Company has received an “A” rating (the highest rating) from the Shanghai Stock Exchange for 11 consecutive years in information
disclosure. During the reporting period, 4 periodic reports were disclosed as well as 111 interim announcements and online disclosure
R&D investment and intensity 20 points awarded upon achievement; no points if unmet documents were published.
Innovation-driven
development
Business Ethics
Technology innovation tasks Scored based on task completion results (up to +20 points)
Performance in major safety responsibility events Baseline indicator: if breached, overall performance score
Workplace safety
and “risk prevention and safety assurance” work is reduced by 10%
Anti-Bribery and Anti-Corruption
During the reporting period, the Company continuously improved its performance evaluation mechanism by incorporating sustainability
performance indicators into the remuneration structure of Directors, Supervisors and senior management. This ensures a clear linkage Governance
between compensation incentives and sustainability objectives. The evaluation covers key sustainability topics. Annual performance
assessments are conducted for Directors, Supervisors and senior management in accordance with relevant requirements, and year-end The Company strictly complies with relevant laws and regulations, including the Anti-Money Laundering Law of the People’s Republic of
performance-based remuneration is determined accordingly. China and the Anti-Unfair Competition Law of the People’s Republic of China, and has established and continuously improved its
business ethics management system as well as strengthened governance mechanisms related to anti-bribery and anti-corruption.
>> Remuneration of Senior Management in 2025 (Unit: RMB 10,000) <<
Implementation Rules for Board Specialized Committees
Total Pre-tax Remuneration Received from the Internal Audit Management Measures
Name Position Company (Including Fixed and Variable Pay) Period of Remuneration
Internal Control Evaluation Management Measures
Han Jinming General Manager 72.72 Full Year
Internal Audit Management Measures
Zheng Jilin Deputy General Manager 68.99 Full Year Employee Reward and Discipline Management Measures
Key Policies Include
Anti-Fraud and Whistleblowing Management Measures
Han Jianxun Deputy General Manager 60.63 Full Year
Party Discipline and Conduct Supervision Management Measures
Hu Xiaowen Deputy General Manager 62.75 Full Year
The Audit Committee, under the leadership of the Board of Directors, performs supervisory duties. Through its audit working group, it
oversees the operation of key mechanisms such as anti-bribery and anti-corruption, whistleblowing and complaint handling, internal
Wang Xiaoming Chief Financial Officer 60.32 Full Year
accountability, and reports directly to the Board of Directors, ensuring the independence and authority of audit and supervisory
functions.
Liu Yunhua Board Secretary 60.32 Full Year
Audit Committee Audit Working Group
Hong Jiangyong Deputy General Manager 90.46 Full Year
Fully responsible for overseeing matters related to business ethics Responsible for leading and coordinating cross-departmental
Zhou Qiang Deputy General Manager 89.82 Full Year and anti-corruption, the Committee convenes regular meetings to efforts on anti-corruption, prevention of financial fraud, integrity
formulate and implement relevant policies and initiatives. It organiz- governance, and response to major public opinion risks, and for
es internal self-assessments, conducts internal investigations or regularly reporting on the progress of business ethics management
Variable remuneration is determined based on the achievement of assessment indicators set at the beginning of the engages independent third-party institutions where necessary, and to the Audit Committee.
Note
year. During the reporting period, senior management completed the targets set at the beginning of the year. promotes the establishment, improvement and rigorous enforce-
ment of internal accountability mechanisms.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
The Company has established a normalized whistleblowing mechanism, providing multiple reporting channels—including telephone,
email and WeChat—for both internal employees and external stakeholders. The scope of reporting includes corruption and bribery,
Supplier Integrity Management
fraud, misconduct in duty performance, other behaviors that negatively affect business operations. All reports are handled promptly, and
The Company implements systematic integrity and compliance management for its business partners. All suppliers and customers
investigations are conducted in accordance with laws and regulations to ensure integrity and fairness in operations.
participating in quotation and bidding through the digital procurement platform are required to sign an Integrity Commitment Letter.
These requirements are further extended to all suppliers, service providers and contractors, with whom the Company signs Integrity
Whistleblowing hotline 0570-3092098 Agreements that include provisions on ethical business conduct and anti-bribery. As of the end of the reporting period, the coverage rate
of supplier integrity agreements reached 100%.
In terms of anti-corruption governance within the supply chain, the Company continuously conducts supplier anti-corruption training
>> Anti-Corruption Supervision and Reporting Handling Process <<
and communication and regularly organizes business ethics training and anti-fraud awareness sessions. Suppliers are explicitly required
to establish and implement internal anti-bribery and anti-corruption policies, and to carry out regular ethics training covering all
employees. The Company reserves the right to review suppliers’ anti-corruption management systems and to introduce independent
Registration and Acceptance third-party assessments where necessary.
Reports are registered and assigned a reference number by the discipline inspection unit of subsidiaries and During the reporting period, the Company conducted a total of 5 supplier integrity training sessions.
reported to the Group’s discipline inspection office within 5 working days.
Business Ethics Training
Juhua Corporation has established a comprehensive business ethics training system, requiring Directors, Supervisors, senior
Formation of Investigation Team
management and all employees to complete annual training on business ethics and anti-corruption.
A dedicated investigation team is established by the Group’s discipline inspection office to conduct preliminary
inquiries and evidence collection. During the reporting period, anti-bribery and anti-corruption training covered 9,093 employees, including 583 management personnel
and 12 Directors, achieving a 100% employee training coverage rate.
Key initiatives in business ethics development during the reporting period included:
• organizing 2 special training sessions on Party discipline and anti-corruption for members of the Party and management leadership teams, as well as
Investigation and Preliminary Conclusion
secretaries and deputy secretaries of Party branches and relevant responsible personnel;
The investigation team completes evidence verification within the specified timeframe and submits preliminary • organizing newly appointed junior managers to watch integrity education case videos, conduct integrity assessments, and sign the Position Integrity
findings to management and supervisory bodies. Commitment Letter;
• conducting company-wide business ethics training, organizing employees to sign integrity commitment letters, and collectively watch warning and
education videos, thereby continuously strengthening integrity awareness and professional ethics.
Collective Review and Decision-making
Case | Conference on Party Discipline and Anti-Corruption Work and Warning Education
The discipline inspection committee convenes a special meeting to review findings and make decisions in Training
accordance with regulations.
On 21 April 2025, Juhua Corporation convened a Conference on Party Discipline and Anti-Corruption Work, along with a Warning Education
Training Session. Attendees included members of the Company’s Party and management leadership team, secretaries and deputy secretaries of
Party branches, heads of major departments, and representatives of Party discipline and conduct supervisors. The meeting reviewed the work
Feedback and Archiving carried out in the previous year, outlined key priorities for the current year, and conducted warning education training. It aimed to provide a
strong disciplinary safeguard for the Company’s efforts to build a world-class, leading and exemplary enterprise.
Results are communicated to the whistleblower where appropriate, and all documentation is archived to form a
closed-loop management process
Whistleblower Protection
The Company has established the Anti-Fraud and Whistleblowing Management Measures, which define reporting procedures and
protection mechanisms. The Company encourages employees, suppliers and service providers to report misconduct through formal
channels. The Company strictly protects the confidentiality of whistleblowers and provides appropriate incentives to individuals who
make valid contributions.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Fair Competition and Anti-Unfair Practices Risk Prevention and Control
The Company explicitly prohibits any conduct that harms national interests or infringes upon the legitimate rights and interests of other
market participants or consumers. It strictly prevents the abuse of market position to impose unfair trading terms and actively safeguards Risk Management
the lawful rights and interests of all stakeholders in the market. During the reporting period, the Company was not involved in any
litigation or subject to any major administrative penalties arising from unfair competition practices. The Company places great importance on the development of its risk management and internal control system and continuously
improves a risk management framework aligned with its strategic development and operational objectives. The Board of Directors, as the
The Company continuously improves its intellectual property (IP) management system, with coordinated responsibilities shared among
leadership and decision-making body for risk management and internal control, oversees the overall development of the system. Under
the Production and Operations Department, the Marketing Department, and the Investment and Development Department. These
the governance framework of the Board, the Company has established a risk governance structure centered on the “Three Lines of
departments jointly manage IP-related matters, including application and registration, protection and enforcement, utilization and
Defense” model, clearly defining risk management responsibilities across all levels and departments.
licensing, anti-infringement, anti-counterfeiting and anti-unfair competition. The Company firmly opposes infringement activities such
as counterfeiting and piracy. All matters related to the acquisition, use, transfer and licensing of intellectual property strictly comply with >> Risk Governance Structure – Three Lines of Defense <<
applicable laws, regulations and industry standards. For infringement cases, the Company actively safeguards its rights in accordance
with the law. When authorizing third parties to use its intellectual property, the Company strictly follows contractual and compliance
procedures to ensure legality and compliance.
First Line of Defense: Second Line of Defense: Third Line of Defense:
Case | Upholding Responsibility to Safeguard Industry Integrity Business Departments Internal Audit and Internal Audit Function
Control Department
Business and functional depart- Conducts independent and
ments, in coordination with the Establishes unified risk manage- objective review and supervision
The Company continues to promote anti-counterfeiting initiatives for its “Juhua” brand refrigerants.
Internal Audit and Control ment frameworks, systems and of major risks and the effective-
As of the end of the reporting period, 17 counterfeit production and sales sites were investigated and penalized by market supervision Department, are responsible for processes; formulates risk manage- ness of internal controls; reports
authorities at provincial and municipal levels, more than 10 civil trademark infringement lawsuits were filed, criminal cases were involved. These risk information collection, ment standards; supervises and directly to the Board to ensure
actions have effectively deterred illegal and infringing business activities. At the same time, the Company has implemented multiple measures, assessment and prevention in guides the implementation of the independence and authority.
including reward-based whistleblowing mechanisms, establishment of anti-counterfeiting platforms, upgrading anti-counterfeiting traceability daily operations. first line of defense.
systems. The Company has established a “one product, one code” brand management system, which allows consumers to verify product
authenticity conveniently. These efforts contribute to continuously purifying the market environment and enhancing brand credibility and
recognition.
As of the end of the reporting period, Quhua Fluorine Chemistry Company, Jusu Chemicals Company, Jusheng Fluorine Chemicals The Company implements closed-loop risk management across the entire process of risk identification, risk assessment, risk response,
Company, Technology Center Company, Ningbo Juhua Chemical Company have obtained certification under the GB/T 29490-2013 continuous improvement and conducts regular re-assessments to continuously optimize risk management strategies.
Intellectual Property Management System.
Risk Risk Risk Continuous
Identification Assessment Response Improvement
Based on actual business Risks are classified and Based on assessment Based on internal and
conditions, the Company graded based on their results, the Company external audit findings and
collects risk information likelihood and potential implements preventive and improvement recommenda-
through both internal and impact. Risk levels, response corrective measures in tions, the Company
external channels on a costs and response timelines accordance with continuously optimizes risk
regular or ad hoc basis to are comprehensively established response plans. management practices to
identify potential risks. considered to formulate reduce risk exposure and
contingency plans and enhance effectiveness.
response strategies.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Tax Risk Management Information Security
To strengthen tax risk prevention and standardize tax-related business management, the Company has formulated and strictly
Juhua Corporation places great importance on corporate and personal information security and privacy protection. The Company strictly
implemented the Tax Risk Management Measures.
complies with relevant laws and regulations, including the Cybersecurity Law of the People’s Republic of China and Data Security Law of
A dedicated tax management position has been established, responsible for daily tax management and tax declaration. This department the People’s Republic of China. The Company has established an information security and privacy protection management system
operates in coordination with the tax payable group of the shared service center, forming a vertical management model of “headquarters covering the entire business process, based on internal policies such as Information Security Management Regulations and Information
coordination + shared service support + unit-level execution”. Technology Management Measures and aligned with industry best practices. The General Management Department is responsible for
The Company has established a coordinated supervision mechanism combining internal and external oversight, including internal control coordinating cybersecurity-related work, while subsidiaries establish supporting systems and dedicated teams to ensure effective
reviews, evaluations by external audit institutions and independent verification by professional tax advisory firms. This ensures full implementation.
compliance in tax-related matters. In addition, the Company has proactively entered into a Tax Compliance Cooperation Agreement with The Company implements multi-layered security protection mechanisms in daily operations to ensure the security of data throughout its
tax authorities, promoting mutual trust and transparency between the enterprise and regulators. lifecycle.
Internal Control Adoption of Advanced Technologies
The Company has established an internal control system covering 5 key elements, including control environment, risk assessment, control Apply data encryption technologies to ensure the security of data transmission and storage;
activities, information and communication and monitoring. This system provides safeguards for asset security, operational efficiency and introduce technologies such as secure storage chips and trusted computing to reduce the
risks of information leakage and tampering.
compliant business practices. The Internal Audit and Control Department, based on the Company’s strategic objectives, annual operating
plans and regulatory requirements, organizes the preparation of the annual internal control self-assessment report, which is reviewed
and confirmed by independent audit institutions.
Key Internal Control Activities During the Reporting Period:
User Authentication and Authorization Mechanisms
Communicated with the Board of Directors and the Audit Committee regarding audit plans and implementation, maintained Implement strict identity authentication and access control management to ensure that only
complete records, and participated in the review of periodic reports. authorized personnel can access relevant data.
Conducted internal control self-assessments, evaluated internal control systems of subsidiaries, reviewed the implementation of
nearly 300 internal policies, and implemented corrective actions as required, submitting working papers to external auditors.
Performed system effectiveness evaluations and completed the revision and update of over 400 internal policies across the
Company.
Conducted special audits covering headquarters and all wholly owned and controlled subsidiaries, focusing on key areas such as Data Backup and Disaster Recovery Mechanisms
sales and procurement, contract management, asset management, related-party transactions as well as high-risk processes.
Establish data backup and disaster recovery systems to respond to system failures or
Organized special inspections on contract management, conducted post-investment evaluations of equity-participating emergencies, ensuring the stable operation of information systems.
companies, and carried out a special audit on forward foreign exchange transactions for 2024.
Case | “Top 30 Listed Companies in Zhejiang Province for Internal Control” ranking for 9 Strengthening Security Awareness and Capabilities
consecutive years.
Regularly conduct training on data security, privacy protection and compliance management
to enhance employees’ cybersecurity awareness and skills, covering key concepts such as
data protection, privacy management, data integrity, confidentiality and availability.
The Company has established a multi-level protection mechanism through institutional development, training programs and contractual
constraints. By clearly defining employees’ confidentiality responsibilities and behavioral standards, and regularly conducting
information security training, the Company enhances all staff’s awareness of information protection. At the same time, it strictly fulfills its
obligations to maintain the confidentiality of business information, effectively safeguarding sensitive data.
During the reporting period, the Company did not experience any data security incidents or customer privacy breaches.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
United Nations Sustainable Development Goals (SDGs) Addressed in This Chapter:
PART
Protecting the Environment
and Advancing Green
Transformation
Highly Material Issues Addressed in This Chapter:
Juhua Corporation consistently upholds its mission of “Green Chemistry for a Better Life”, and systematically • Waste Management • Environmental Compliance Management
integrates the concept of green development into its strategic planning and the entire production and • Pollutant Emissions • Energy Utilization
operational lifecycle. The Company continuously improves its environmental management system, embeds
• Circular Economy • Water Resource Management
ESG governance requirements into operational management and decision-making processes, and
• Clean Technology Opportunities • Ecosystem and Biodiversity Protection
comprehensively advances cleaner production, energy conservation and carbon reduction, as well as
resource recycling and reuse. Through these efforts, the Company strives to continuously reduce its
environmental footprint and promote high-quality development characterized by harmony between
humanity and nature.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Environmental Compliance Management Environmental Audits
To ensure the effective operation of its environmental management system, Juhua Corporation has established a three-tier governance The Company has established and continuously improved a normalized and comprehensive internal environmental audit mechanism,
structure with clear responsibilities and vertical integration, consisting of the General Manager, the Environmental Protection Committee, conducting annual specialized environmental audits to achieve 100% coverage of all operating production sites.
and the ESG Working Group. The General Manager, as the primary person responsible for environmental protection, oversees
environmental management in a comprehensive manner. The Environmental Protection Committee performs supervisory functions, Operating Sites Newly Established Sites
including setting management objectives, reviewing implementation plans, and making environmental decisions on key projects. The
ESG Working Group, in coordination with the Health, Safety and Environment (HSE) Department, is responsible for the planning,
organization and implementation of specific environmental management measures. Key audit focus includes the implementation of environmen- Key focus is placed on the compliance and completeness of
tal management system documentation, as well as the environmental approval procedures, as well as the imple-
Guided by the principle of “coordinated carbon reduction and pollution control with efficiency enhancement”, Juhua Corporation
operational status and maintenance of treatment facilities mentation of environmental design standards, enabling the
systematically advances pollution prevention and control initiatives and continuously improves its environmental management system.
for exhaust gas, wastewater and solid waste. identification and prevention of environmental risks at the
The Company strictly complies with applicable laws, regulations and standards, including the Environmental Protection Law of the
source.
People’s Republic of China, the Environmental Impact Assessment Law of the People’s Republic of China, the Regulation on the
Administration of Environmental Protection for Construction Projects. In addition, the Company has established and continuously
updated 20 internal environmental management policies, covering areas such as environmental protection management, pollutant
At the same time, the Company carries out quarterly inspections on integrated safety and environmental performance management
discharge permits, the “three simultaneous” system for construction projects (design, construction and operation of environmental
targets, supplemented by routine supervision and inspections. For identified issues, the Company establishes corrective action lists,
facilities), water and air pollution prevention and control, and overhaul and accident management. These measures ensure that
implements dynamic tracking and closed-loop management, and continuously enhances environmental performance and risk
environmental management requirements are fully covered and effectively implemented.
management capabilities.
As of the end of the reporting period, 18 subsidiaries with stable operations and active
production have obtained ISO 14001 Environmental Management System certification.
Other newly established or under-construction bases are also advancing system
development in alignment with ISO 14001 standards.
浙江巨化股份有限公司
兹 证
统一社会信用代码：91330000704204554C
明
其环境管理体系符合：GB/T 24001-2016/ ISO 14001:2015 标准
该环境管理体系适用于：
工业氢氟酸、工业无水氟化氢、甲烷氯化物、氟制冷剂（含充装）、五氟丙烷、七氟丙烷（HFC227ea灭火剂）、烧
碱、液氯、盐酸、聚偏氟乙烯（PVDF)、次氯酸钠、偏二氯乙烯共聚乳液、偏二氯乙烯共聚树脂、偏二氯乙烯、工
业氢、高纯氢、氯化钙系列、工业三氯乙烯、四氯乙烯、正丙醇、工业用异丙醇、工业硫酸、氯磺酸、聚四氟乙烯
系列、聚全氟乙丙烯系列、氟橡胶系列、可熔性聚四氟乙烯系列、含氟精细品（包含工业六氟丙烯、工业用八氟环
丁烷等）、工业用液态氯化氢、己内酰胺、环己酮、环己醇、环己烷、硫酸铵、丁酮肟、工业用环氧氯丙烷、液体
附件一
浙江巨化股份有限公司的环境管理体系认证证书还包括以下场所：
浙江兰溪巨化氟化学有限公司:浙江省兰溪经济开发区宝龙路10号,氟制冷剂、工业用液态氯化氢
的设计、生产和技术服务以及相关管理活动
宁波巨化化工科技有限公司:浙江省宁波市镇海区澥浦镇石化经济技术开发区跃进塘路501号,甲
烷氯化物、四氯乙烯、正丙醇、工业用异丙醇的设计、生产和技术服务以及相关管理活动
浙江巨化新材料研究院有限公司:浙江省杭州市临安区青山湖科技城聚贤街258号,氟聚合物及复
合材料、新型环保氟制冷剂、高分子改性树脂和膜材料及其制品的研发和科研性试生产以及相关
管理活动
Pollution Prevention and Control
无水氨、氨水、工业用甲醇、氧、氮、氩、食品添加剂液体二氧化碳、二氧化碳、液体二氧化硫、液体三氧化硫、 淄博飞源化工有限公司:山东省淄博市高青县高城镇高青化工产业园高淄路1983号,工业无水氟化
工业用氟硅酸、三氟化学品（三氟乙酸、工业用三氟三氯乙烷(R113a)等）、甘油、全氟聚醚油、全氟聚醚电子流 氢、工业硫酸、氟制冷剂、工业氢氟酸、氯化钙系列、工业用氟硅酸、工业用环氧氯丙烷、三氟
体的设计、生产和技术服务以及相关管理活动。 化学品（三氟乙酸、工业用三氟三氯乙烷(R113a）等)、甘油、次氯酸钠的设计、生产和技术服
所属浙江巨化检安石化工程有限公司化工设备的安装、维护和检修服务以及石油化工工程总承包管理以及相关管理
活动。 务以及相关管理活动
浙江巨化股份有限公司机关、浙江衢化氟化学有限公司、浙江衢州氟新化工有限公司、浙江巨化
The Company actively implements cleaner production requirements. All subsidiaries
所属浙江巨化技术中心有限公司（浙江巨化新材料研究院有限公司）氟聚合物和精细化工产品、复合材料、新型环
Continuously strengthening environmental management and effectively controlling the environmental footprint of operations are key
保氟制冷剂、高分子改性树脂和膜材料及其制品的研发和科研性试生产以及相关管理活动。 股份有限公司电化厂、浙江衢州巨塑化工有限公司、衢州巨化锦纶有限责任公司、浙江晋巨化工
所属浙江巨化化工材料有限公司经营范围内的大宗原料（不含危化品）、生产辅料（不含危化品）、设备材料的采
购、仓储、销售、配送及供应链集成服务以及相关管理活动。 有限公司、浙江巨化股份有限公司硫酸厂、浙江巨圣氟化学有限公司、浙江衢州联州致冷剂有限
固定场所范围： 公司、浙江巨化检安石化工程有限公司、浙江巨化技术中心有限公司、浙江巨化化工材料有限公
浙江省衢州市柯城区（注册地址） 司、浙江创氟高科新材料有限公司:浙江省衢州市柯城区公司界内
浙江省衢州市柯城区公司界内（审核地址） 编号：1323E10329R7L
及附件所示场所
邮编：324004 颁证日期：2023年10月27日 有效期至：2026年10月31日
编号：1323E10329R7L 换证日期：2024年11月04日
颁证日期：2023年10月27日 有效期至：2026年10月31日
换证日期：2024年11月04日
conduct rolling cleaner production audits every three years. During the reporting priorities for Juhua Corporation in advancing green development. The Company promotes the coordinated reduction of pollutants and
period, the Electrochemical Plant, Jusu Chemicals Company, and Lanxi Fluorine resource recovery of waste, integrating source prevention, process control and circular utilization to achieve synergistic improvements in
Chemicals Company completed cleaner production audits organized by the Quzhou environmental performance and operational efficiency.
municipal authorities and successfully passed acceptance.
Pollutant Emissions
Environmental Emergency Management and Awareness Enhancement
Juhua Corporation strictly complies with applicable laws, regulations and standards, including the Water Pollution Prevention and Control
In the area of environmental emergency management, the Company has formulated and continuously improved the Measures for Law of the People’s Republic of China, the Air Pollution Prevention and Control Law of the People’s Republic of China and has established
Emergency Management of Environmental Pollution Incidents, establishing a full-process emergency management mechanism covering and implemented internal management systems such as Regulations on Air Pollution Prevention and Control, Measures for Water
pre-incident prevention, in-incident response and post-incident handling. Through this mechanism, the Company continuously Pollution Prevention and Control, Regulations on Soil Pollution Prevention and Control. On this basis, the Company has established a
enhances its capabilities in early warning, response and mitigation of environmental emergencies. All subsidiaries have developed three-tier environmental management network covering the Company, subsidiaries, and workshops. The Health, Safety and Environment
environmental emergency response plans for environmental incidents and have filed them with the competent ecological and (HSE) Department is responsible foroverall coordination. At the subsidiary level, environmental protection departments are responsible
environmental authorities in accordance with regulatory requirements. for the daily supervision and dynamic monitoring of wastewater, exhaust gas and waste emissions in accordance with local regulatory
The Company places strong emphasis on enhancing environmental awareness and professional capabilities. During the reporting period, requirements. At higher management levels, environmental management units perform overall coordination, supervision and guidance,
a total of 36 environmental training sessions were conducted, cumulative participation reached 8,286 person-times and the training ensuring that environmental management covers all personnel and spans the entire operational process.
coverage rate reached 91.12%. Training topics covered key areas including environmental compliance management, practical pollution The Company adheres to systematic control and full-process management, continuously improving management systems for
prevention and control, and standardized management of solid waste and hazardous waste. wastewater, exhaust gas and groundwater. By strengthening pollution source control and ensuring the stable operation of environmental
The Company is dedicated to environmental compliance, pollution prevention and control upgrades, environmental risk management, protection facilities, the Company strictly enforces compliance requirements for wastewater and exhaust gas discharge, while also
and the enhancement of emergency response capabilities. During the reporting period, the Company did not experience any major enhancing groundwater pollution prevention and conducting regular groundwater monitoring and assessment. In terms of emissions
environmental violations, nor was it subject to administrative penalties by ecological and environmental authorities or criminal liability control, the Company continuously optimizes its emissions management system, advances the remediation of key environmental risks,
arising from environmental issues. and upgrades wastewater and exhaust gas treatment facilities in an orderly manner, thereby enhancing end-of-pipe treatment capacity
and environmental risk prevention capabilities. At the same time, the Company has installed online monitoring systems at key wastewater
and exhaust gas discharge outlets, with data connected to monitoring platforms. It also conducts regular environmental air and
groundwater monitoring, establishing a normalized monitoring network covering major emission sources, ensuring that the entire
During the reporting period, the Company’s total investment in environmental protection amounted to RMB 200 million. discharge process is controllable and traceable.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
>> Pollutant Reduction Targets and Progress <<
Pollutant Emission Management Requirements and Treatment Methods
Main Management Policy Emission Indicators Treatment Method Indicator Unit Target Year Target Progress
Pollutant
Wastewater discharge compliance rate % Long-term 100 Achieved
Chemical Oxygen Demand (COD), After pre-treatment, wastewater is
Biochemical Oxygen Demand (BOD), discharged into the municipal
Industrial Ammonia Nitrogen (NH?-N), Total pipeline network and conveyed to
wastewater Measures for Water Nitrogen (TN), Total Phosphorus (TP) Exhaust gas discharge compliance rate % Long-term 100 Achieved
third-party wastewater treatment
Pollution Prevention
Wastewater plants, where it is treated using a
and Control (2022
combined process of denitrification
Edition)
Chemical Oxygen Demand (COD), + aerobic carbon removal + activat- Average VOC concentration within plant area % 2026 ↓4% compared to baseline year (2024) In progress
Domestic Biochemical Oxygen Demand (BOD), ed carbon adsorption + high-den-
wastewater Ammonia Nitrogen (NH?-N) sity sedimentation + cloth filtration.
Number of key enterprises reaching Grade A 2 (Juhua Chinlon Company, Jinju Chemicals
environmental performance units 2026 Company) In progress
Sulfur oxides (SOx)
During the reporting period, the Company’s pollutant emissions were as follow:
Emissions are treated through
Regulations on Air Nitrogen oxides (NOx) processes such as condensation,
Exhaust gas
Pollution Prevention adsorption, incineration, desulfur- >> Pollutant Compliance Discharge Statistics <<
and Control (2022 ization, denitrification and dust
Edition) Particulate matter (PM) removal to ensure compliance with
discharge standards. 2025 Approved Approved 2024 2023
Pollutant Type Unit Exceedance
Emissions Annual Quota Annual Total Emissions Emissions
Volatile organic compounds (VOCs)
Sulfur dioxide tonnes 42.82 Yes 172.68 None 47.44 35.34
（SO2）
Air Nitrogen oxides
Case | Soil and Groundwater Pollution Control and Remediation pollutants （NOx）
tonnes 143.14 Yes 425.80 None 169.24 138.95
Volatile organic compounds
tonnes 660.66 No / / 686.11 708.34
To implement the requirements of the Soil Pollution Prevention and Control Law of the People’s Republic of China and the Action Plan for Source （VOCs）
Control of Soil Pollution, the Company has systematically advanced the prevention, control and remediation of soil and groundwater pollution.
By establishing a groundwater flow and contaminant migration model for the Juhua Corporation industrial area, the Company has scientifically Chemical oxygen demand
（COD） tonnes 251.80 Yes 847.76 None 275.10 273.35
developed pollution control and remediation plans. Based on the extent of contaminant plume dispersion, pollutant concentration levels and Water
migration trends, the Company identifies and delineates key high-risk areas, and implements graded and categorized control measures. At pollutants
Ammonia nitrogen
present, the first phase of pilot projects has been carried out in key areas, including Quhua Fluorine Chemistry Company, Electrochemical Plant （NH3-N） tonnes 7.68 Yes 95.43 None 12.57 4.81
and Jusu Chemicals Company. These pilot projects provide technical experience and engineering demonstration for the subsequent systematic
governance of soil and groundwater pollution.
Waste Management and Circular Economy
During the reporting period, the Company coordinated and implemented 16 key environmental risk mitigation projects. The compliance Juhua Corporation adheres to the principles of the circular economy, implementing a systematic, full-process management approach to
rate of pollutant discharge monitoring reached 100%. The environmental compliance rate of newly constructed projects remained at 100%. waste, and establishing a comprehensive system covering the entire lifecycle of generation, classification, storage, transfer and disposal.
The Company did not cause any significant adverse impacts on employees or surrounding communities due to pollutant emissions, nor Through strengthened source classification, process supervision and standardized disposal, the Company ensures that waste is managed
was it subject to administrative penalties or criminal liability related to environmental issues. in full compliance with applicable regulations. At the same time, it enhances the traceability of hazardous waste throughout its lifecycle
and improves the resource recovery and utilization of solid waste, thereby advancing circular economy practices.
Governance
Juhua Corporation strictly complies with applicable laws and regulations, including the Law of the People’s Republic of China on the
Prevention and Control of Environmental Pollution by Solid Waste, Measures for the Prevention and Control of Environmental Pollution by
Hazardous Chemicals Waste, the Standard for Pollution Control on the Storage and Landfill of General Industrial Solid Waste. The Company
has formulated and implemented internal policies such as the Measures for the Management of Industrial Solid Waste Disposal, ensuring
standardized operation of waste management.
To promote effective implementation, the Company advances waste traceability and refined management practices, conducting
comprehensive screening of waste generation points, types and quantities across all production and operational units, and mapping a
“waste inventory map”.During the reporting period, the Company implemented refined classification management for solid waste
generated during manufacturing, identifying and defining more than 10 categories of solid waste, and matching each category with
appropriate resource utilization solutions and compliant disposal pathways.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Strategy Impact, Risk and Opportunity Management
The Company has established an intelligent, full-lifecycle waste management system, covering 6 key stages, including generation, The Company adheres to the principles of “Reduction, Reuse and Harmless Treatment”, continuously reducing the generation of general
collection, storage, transportation, utilization, and disposal. Through standardized facilities, digital traceability, intelligent monitoring and industrial solid waste in production processes, optimizing packaging materials, and promoting recycling and reuse to enhance resource
closed-loop evidence management, the Company ensures that waste is fully controlled from source to final disposal. efficiency. Based on the recyclability value and hazard level of waste, the Company implements classified collection and differentiated
treatment, effectively controlling environmental risks and achieving standardized and refined management.
>> Waste Management Strategies <<
In daily operations, the Company implements comprehensive waste sorting management across office, production and living areas,
establishes recyclable waste collection points, and promotes the reduction and resource utilization of municipal waste. The Company
• Precise classification at source: Implementation of the Measures for the Management of Industrial
Solid Waste Disposal ensures that hazardous waste such as fluorinated waste and
actively promotes the “Clean Plate Campaign” to reduce food waste. Kitchen waste is entrusted to qualified third-party entities for
high-concentration organic liquid waste is classified and sealed at the point of generation. resource utilization, where it is converted into products such as organic fertilizers and soil conditioners through processes such as
• Intelligent monitoring: Continuous upgrading of the “Zhegu Code” system to enhance reporting biological fermentation, achieving closed-loop management and resource recycling.
Generation and Collection models, enabling digitalized management of the entire process, including storage entry (QR code
scanning), transport coding and disposal verification.
>> Types of Waste and Treatment Methods <<
Type Treatment Method
• Standardized storage facilities: Construction and upgrading of hazardous waste storage facilities
in accordance with the Standard for Pollution Control on Hazardous Waste Storage, including
Municipal waste: food waste, office waste, etc.
exhaust gas collection systems and anti-seepage and anti-corrosion measures.
Storage and Management Collected and transported by municipal sanitation
authorities.
Non-hazardous Food waste is processed by qualified third-party
waste General industrial solid waste : calcium carbide entities into organic fertilizers through biological
slag, fly ash, furnace slag, packaging materials, fermentation.
etc.)
• Full-process intelligent monitoring: Use of GPS positioning for transport vehicles and integration
of data at key nodes to ensure full-chain traceability, monitoring and early warning capabilities.
Transportation and Transfer Point-to-point disposal through qualified
third-party recyclers or internal utilization.
Hazardous waste : spent catalysts, sludge,
Hazardous residual liquids, waste activated carbon, waste
waste lubricants, waste packaging, etc.
Handled by qualified third-party hazardous waste
disposal entities in compliance with regulations.
• Internal circular utilization network: Establishment of a circular system of “resources – products –
recycled resources – products”, prioritizing the internal reuse of specific solvents, waste acids and
other materials among subsidiaries.
Resource Utilization Juhua Group actively implements the concept of ecological civilization and has taken the lead in the province in promoting the
development of a “Zero-Waste Group”. As the primary implementing entity, Juhua Corporation has developed management guidelines
based on the 4R principles—Reduce, Reuse, Recycle and Remanufacture—and established a zero-waste model characterized by waste
reduction and carbon reduction synergy, resource sharing and intelligent supervision. The Company continuously improves the reduction,
• Dynamic management of disposal vendors: Implementation of access review and supervisory resource utilization and harmless treatment of solid waste, and incorporates circular economy indicators into the annual KPI assessment
audit mechanisms for third-party disposal entities handling general and hazardous waste, with
annual performance evaluations and elimination of non-compliant providers.
system of subsidiaries. Focusing on pathways such as source reduction, facility sharing, water–solid synergy and point-to-point resource
• Closed-loop evidence management: Standardized declaration and transfer via the Zhejiang
utilization, the Company systematically develops and implements solid waste management and resource utilization programs, forming 11
Final Disposal Provincial Solid Waste Platform, combined with cross-verification against weighing records, typical best-practice cases, including the reuse of calcium fluoride sludge.
ensuring each batch of waste has a complete and compliant “end-point” certification.
During the reporting period, the comprehensive utilization rate of general industrial solid waste reached 96.46 %.
• Lifecycle data analysis: Establishment of a waste management database to analyze key indicators
The landfill rate of hazardous waste was reduced to 0.97 %.
such as waste generation volume, disposal cost and resource utilization rate.
• Reduction targets and internal audit: Annual waste reduction targets are set for each production
Data Analysis and unit based on data analysis. Internal compliance audits are conducted, and results are incorporated
Continuous Improvement into performance evaluations.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
• Promote process upgrades to
reduce solid waste generation, Juhua Corporation’s waste treatment performance is as follows:
including the transition from
ore-based acid production to
sulfur-based acid production,
thereby reducing both general >> Hazardous Waste Treatment Statistics (Unit: tonnes) <<
industrial solid waste and
hazardous waste.
By Disposal Method By Disposal Location
Year Incineration
Landfill On-site disposal Off-site disposal
Excluding energy recovery With energy recovery
Reduce
• Implement catalyst regeneration
and recycling, and adopt advanced 2024 81.67 25,345.44 2,368.38 15,250.87 12,544.62
reaction technologies to reduce the
• Achieve industrial remanufac-
generation of residual liquids.
turing and upgrading through Reman- Circular • Utilize by-product hydrogen from 2023 1,600.12 27,879.65 579.51 22,587.54 7,471.74
facility retrofits, value chain
ufacture Reuse
extension, and management Economy coal chemical and chlor-alkali
processes to produce petrochemi-
re-enginnering.
cal products such as cyclohexa-
none, caprolactam, cyclohexanol
and hydroxylamine. >> Non-Hazardous Waste Treatment Statistics (Unit: tonnes) <<
Recycle By Disposal Method By Disposal Location
Year
Landfill On-site utilization Off-site utilization On-site disposal Off-site disposal
• Expand comprehensive utilization pathways for bulk solid wastes such as fly ash,
calcium carbide slag, salt sludge, and industrial by-product fluorogypsum, and 2024 5,425.84 5,187.45 271,035.62 5,187.45 276,461.46
achieve the purification and resource utilization of calcium fluoride sludge.
• Convert H₂S waste gas from sulfuric acid plants into liquid sulfur dioxide through
incineration, reducing the consumption of sulfur paste. 2023 6,769.08 8,883.46 239,103.86 8,883.46 245,872.94
• Treat waste salts using wet catalytic oxidation technology and reuse them as raw
materials for ion-exchange membrane caustic soda production.
• Process high-boiling residues and column bottom residues through on-site inciner-
ators with energy recovery, thereby reducing the need for outsourced disposal.
Metrics and Targets
During the reporting period, the comprehensive utilization rate of solid waste at the Company’s production bases reached 98.69%. The
intensity of hazardous waste generation was 0.009 tonnes per RMB 10,000 of industrial output value, representing a decrease of
approximately 30% compared to 2024. The intensity of non-hazardous waste generation was 0.085 tonnes per RMB 10,000 of industrial
output value, representing a decrease of approximately 29% compared to 2024.
>> Pollutant Reduction Targets and Progress <<
Medium- to Long-term
Indicator Unit Baseline Year Progress
Target (2030)
Solid waste disposal compliance rate % 2024 100% Achieved
Comprehensive solid waste utilization rate % 2024 ≥97% 98.69%
Landfill rate of general solid waste % 2024 Maintain<5% 1.31%
Landfill rate of hazardous waste % / Maintain<3% 0.97%
tonnes / RMB 10,000
Solid waste generation intensity 2024 Maintain≤0.4 0.093
industrial output value
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Resource Utilization and Ecosystem Protection Energy Saving and Carbon Reduction
To enhance the effectiveness of energy management, the Company has established a full-process monitoring mechanism covering data
Juhua Corporation integrates environmental management deeply into its operational system, systematically addressing key issues such
monitoring, equipment maintenance and energy efficiency analysis.
as energy consumption, water resource utilization and ecosystem protection. The Company continuously optimizes resource allocation
efficiency and promotes the coordinated development of operational activities and the natural environment.
Energy Utilization Data Monitoring and Calibration and Maintenance Energy Efficiency Indicator
Statistical Analysis of Measuring Instruments Tracking and Analysis
Efficient energy utilization is a fundamental prerequisite for achieving green manufacturing. Adhering to the new development Establish an energy metering system, Regularly calibrate and maintain energy Continuously monitor key indicators
regularly aggregate and analyze various monitoring instruments to ensure the such as comprehensive energy
philosophy of "Innovation, Coordination, Green, Openness and Sharing", Juhua Corporation continuously enhances energy efficiency and energy consumption data, and accuracy and reliability of data consumption, energy efficiency of key
generate energy utilization reports to collection. equipment, and energy consumption
low-carbon performance through strengthening management mechanisms, building green manufacturing capabilities, promoting support management decision-making. per unit of product; promptly identify
energy-saving technological upgrades, and applying advanced energy-saving “Four New” technologies (new technologies, new abnormal energy consumption points
and unlock energy-saving potential
processes, new materials and new equipment). to drive continuous improvement.
Governance
To systematically advance energy management, the Company has formulated the Regulations on Total Energy Consumption Balancing The Company primarily uses electricity, coal and natural gas in its production processes. In daily operations, the Company promotes the concept
and Statistical Management, based on its operational needs. The Company has established a three-tier energy management governance of “Saving Electricity Through Collective Action”, incorporating measures such as reducing standby power consumption of equipment,
structure, consisting of the Board of Directors, Senior Management and the Production and Operations Department, with clearly defined prohibiting the use of unnecessary electrical appliances, and implementing practices such as “turn off lights when leaving” into institutional
responsibilities at each level. This structure forms an energy management system that is vertically integrated, clearly accountable and management. These initiatives are reinforced through prominent signage across office and production areas, fostering the normalization of
efficiently operated. green practices.
>> Energy Management Governance Structure << In the production and manufacturing process, the Company focuses on core production units such as ammonia synthesis and fluoropolymer
production, and continuously implements energy-saving and carbon reduction technological upgrades. By improving reaction efficiency and
Responsible for reviewing the Company’s energy management strategy, medium- and equipment stability, the Company reduces energy consumption per unit of product. At the same time, the Company advances upgrades of
Board of
long-term targets and major energy-saving policies, and for providing oversight and utilities and auxiliary systems, promoting the application of advanced energy-saving technologies, including magnetic levitation blowers,
Directors guidance on energy performance. nano-aerogel materials and high-efficiency motors. It has also implemented the Pump Energy Efficiency Upgrade 2.0 Project, reducing energy
consumption associated with fluid transportation and system losses. The Company continues to cultivate benchmark projects in green
Responsible for formulating energy management implementation plans, coordinating manufacturing, adding 2 provincial-level green and low-carbon factories—Quhua Fluorine Chemistry Company and Lanxi Fluorine Chemicals
cross-departmental resources, promoting the breakdown and implementation of
Senior Management Company—and 1 municipal-level green and low-carbon factory, Chuangfu High-Tech Company.
energy-saving targets, and ensuring the effective operation of the energy management
system. The Company promotes systematic energy audits across subsidiaries to improve closed-loop energy management. During the reporting period,
Quhua Fluorine Chemistry Company, Jusu Chemicals Company and Jusheng Fluorine Chemicals Company completed annual energy audit pilot
Acts as the coordinating and executing department for energy-saving initiatives; subsid- programs, covering major energy types such as electricity, steam and natural gas. Based on the audit results, the Company evaluates the
Production and Operations Department iaries establish dedicated energy management positions responsible for energy data achievement of energy-saving targets, scientifically formulates targets for the following year, and continuously optimizes energy performance.
collection, statistics and analysis, preparation of energy reports, and daily monitoring
and evaluation of energy use; promptly identifies and rectifies energy waste to ensure
effective implementation of management systems and technical measures.
Case | Building a Deeply Rooted Energy-Saving Culture
At the same time, the Company continues to promote the
standardization and certification of its energy
To enhance energy management effectiveness and strengthen a company-wide culture of energy conservation, the Company focuses on
management system in accordance with GB/T 23331-2020 professional capability development and low-carbon awareness cultivation, with particular emphasis on building a talent pool aligned with the
/ ISO 50001?2018. During the reporting period, Quhua “Dual Carbon” goals, thereby strengthening the internal driving force for green transformation. During the reporting period, the Company organized
Fluorine Chemistry Company, Jusu Chemicals Company, multiple specialized energy management training sessions, covering key areas such as energy metering standards, energy-saving operational
Jusheng Fluorine Chemicals Company obtained energy techniques and data analysis methods, ensuring that personnel in relevant roles possess the necessary professional knowledge and skills.
management system certification, further enhancing the In addition, leveraging the National Energy Conservation Publicity Week, Juhua Corporation carried out diversified promotional activities to
standardization and systematic management of energy encourage employees to fulfill their green responsibilities and integrate energy-saving practices into both work and daily life.
management.
The Company participates in the following energy-related organizations:
• China Energy Conservation Association • Zhejiang Energy Conservation Association
• Quzhou Energy Conservation Association • Zhejiang Society for Electric Power
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Green Certificate Trading
During the reporting period, Juhua Corporation implemented 2 energy efficiency optimization projects, achieving annual Juhua Corporation participates in market-based
energy savings of 699.51 tonnes of standard coal equivalent. green electricity procurement to further optimize its
energy structure.
Case | Energy Equipment Upgrade at Jusu Chemicals Company
Jusu Chemicals Company carried out energy-saving and carbon reduction upgrades for its existing PVDC and calcium chloride production facilities.
A total of 81 sets of outdated and inefficient equipment, including pumps, compressors, motors, heat exchangers, and pelletizers, were phased out
and replaced with an equivalent number of high-efficiency energy-saving equipment, all meeting or exceeding energy efficiency benchmark
standards. Upon completion, the project is expected to achieve annual savings of 494.76 tonnes of standard coal equivalent. 410,000,000 kWh of green electricity certificates,
During the reporting period, the Company purchased a total of
corresponding to a reduction of approximately 203,900 tonnes of CO₂ emissions.
Case | Quhua Fluorine Chemistry Company Recognized as “Provincial-level Green and
Low-Carbon Factory”
Metrics and Targets
As one of the largest fluorochemical industrial bases in China and one of the first national clean and During the reporting period, in accordance with the requirements of the Zhejiang Provincial Energy Bureau, the Company’s energy consumption
environmentally friendly chemical production facilities, Quhua Fluorine Chemistry Company has deeply
budget for 2025 was set at 1.76 million tonnes of standard coal equivalent (tce). Through stringent control and optimized energy dispatch, the
integrated green development concepts into its strategy and operations. Quhua Fluorine Chemistry
Company has established dedicated management structures, clarified its sustainability direction, and
Company’s actual annual energy consumption was 1.34 million tce, successfully achieving the established energy consumption target.
systematically advanced the development of green factories. It continues to increase R&D investment, build
a technological innovation system, and actively develop strategic emerging industries. As of the end of the >> Energy Utilization Targets and Progress <<
reporting period, Quhua Fluorine Chemistry Company has obtained 92 national invention patents,
recognition as “National Intellectual Property Demonstration Enterprise” and “Key High-Tech Enterprise
Short-term Medium- to Long-term
under the National Torch Program”. Indicator Unit Progress
Target (2026) Target (2030)
Energy-saving projects number 1 5 In progress
Clean Energy Utilization
Renewable energy consumption MWh 50,000 300,000 In progress
The development of solar photovoltaic (PV) power generation and wind
power generation is a key measure for Juhua Corporation to optimize its Share of green electricity % 1.5 10 In progress
energy structure. The Company has deployed photovoltaic power
generation facilities across factory rooftops, parking shelters and idle land
areas, increasing the share of clean energy in its overall energy mix. As of the >> Major Energy Types and Consumption During the Reporting Period <<
end of the reporting period, the Company’s photovoltaic projects within the
Company's plant area reached 50 MW, with an annual power generation of Standard Coal
Energy Type Unit Consumption Data Source
approximately 46 million kWh, reducing carbon dioxide emissions by about Equivalent (tce)
Natural gas 10,000 m? 7,964.40 96,711.71
>> Clean Energy Utilization Statistics <<
Coal tonnes 526,838.00 457,717.00
Direct
Energy
Indicator 2025 (kWh) Standard Coal Equivalent (tonnes) Share of Total Energy Consumption Gasoline tonnes 27.08 39.85
Internal data
Diesel tonnes 4.56 6.64 management platform
Solar PV power generation 344,000,000 97,696 /
Heat million kJ 14,127,561.09 481,749.83
Wind power generation 145,000,000 41,180 /
Indirect
Energy Electricity 10,000 kWh 2,799,967.83 795,190.86
Total clean energy consumption 489,000,000 138,876 16.21%
Lubricating oil tonnes 89.50 126.58
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Water Resource Management Water Conservation and Efficiency Improvement
Juhua Corporation focuses on improving water resource utilization efficiency as a core objective, promoting the application of advanced “Four The Company has established a full-process water resource monitoring and performance evaluation system, enabling refined management and
New” water-saving technologies, optimizing water use structure, accelerating the phase-out of outdated capacity, strengthening foundational control of water use.
water management, and enhancing the standardization and scientific management of water resources.
Standardized Statistics of Water Use Data Standardized Management of Metering Systems
Governance Formulate and implement the Water Resource Consumption Strictly implement metering instrument configuration
Statistical Management System, and clearly define data standards, achieving full-process metering coverage for key
The Company incorporates water resource management into its overall framework for energy conservation, resource efficiency and sustainable reporting responsibilities and cycles, establishing a systematic, water-consuming units, and conduct regular calibration and
development, improving utilization efficiency through institutional planning, standardized control and systematic governance. The Company has accurate and traceable water use data ledger. maintenance.
formulated and updated internal policies such as Measures for the Management of Steam, Water and Electricity Supply and Use and Water
Resource Consumption Statistical Management System. These policies standardize water withdrawal, consumption and conservation
management, and establish a three-tier governance structure of “strategy – coordination – execution”. Organization of Water Balance Testing Routine Analysis of Water Use Performance
>> Water Resource Management Governance Structure <<
Conduct water balance testing across facilities such as the Regularly prepare water resource utilization analysis reports,
Electrochemical Plant, Juhua Jinhua Chemical Company, tracking key indicators such as water consumption per unit of
Reviews water resource management strategies, policies and core targets, Fluorochemical Company, and Jusu Chemical Company to product and water recycling rates, and driving continuous
Board of and incorporates water conservation into the Company’s overall development systematically analyze water use structures, identify consump- improvement.
Directors tion hotspots, and evaluate water use efficiency.
strategy.
Fully responsible for the implementation of strategies and achievement of The Company regards improving water resource utilization efficiency as a key priority in its green transformation. In production processes, the
General Manager performance targets, coordinates resource allocation, and regularly reports to Company has increased investment in water-saving technological upgrades, promoting the application of “Four New” technologies—new
the Board.
technologies, new processes, new equipment and new materials—to optimize water use structure and phase out water-intensive capacity. In
terms of domestic water use, the Company promotes the use of water-saving devices and behavioral practices such as “Turn Off Water When
The Production and Operations Department, together with the dedicated
Leaving”, strengthens facility inspections to prevent leakage and wastage, and establishes a long-term water conservation mechanism.
Production and Operations Department & Water Conservation Leading Group, is responsible for implementation and
Water Conservation Leading Group daily management, monitoring water use performance, conducting data
collection and analysis, and driving continuous improvement.
Strengthen water conservation management
Water used in the Juhua Corporation’s production operations is primarily sourced from the municipal water supply system, and is mainly applied
in core fluorochemical production processes, supporting cooling systems and utility and auxiliary facilities. Through water-saving technological Specify water use targets in the annual integrated plan and incorporate water conservation objectives into the
performance evaluation system for energy efficiency improvement, consumption reduction and cost control.
upgrades, recycling cooling water systems, and enhanced metering and process control, the Company continuously improves water utilization
efficiency. During the reporting period, the Company strictly complied with water withdrawal permits and relevant laws and regulations,
implemented various water-saving measures, and did not cause any significant adverse impact on local water resource sustainability.
Promote intelligent monitoring of water resources and implement water-saving
>> Major Water Use Types and Application Scenarios << retrofits of equipment and facilities
Implement technological upgrades such as energy-efficient circulating water pumps, scale-free circulating water
technologies, and high-efficiency motors to enhance overall system operating efficiency.
Water Use Type Specific Application
Used in hydrofluoric acid production, fluoromonomer synthesis, fluoropoly- Steam Condensate Recovery and Reuse
Process water
mer manufacturing, etc., with relatively high consumption
Steam condensate, as a high-quality demineralized water, has water quality superior to softened water and close to that of
purified water. The Company recovers and reuses it to enhance the value and efficiency of water resource utilization.
Includes circulating cooling water systems and once-through cooling
Cooling system water systems, used for removing reaction heat, condensing steam, and cooling
Production water various equipment, with relatively high consumption
Increase the concentration cycles of circulating water
Select high-efficiency water treatment chemicals to increase the concentration cycles of circulating water, thereby reducing
system blowdown and improving overall water utilization efficiency, while ensuring water quality and stable production
Used for boiler make-up water, purified/desalinated water production,
Utility and auxiliary water environmental protection facilities, dosing in wastewater treatment systems, operations.
site cleaning and dust suppression, with relatively low consumption
Used for administrative offices, R&D facilities, and daily living needs of During the reporting period, all subsidiaries continuously advanced steam condensate recovery and reuse projects, achieving a total
Domestic water
employees within plant areas
recovery of approximately
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Water Stress Analysis >> Water Resource Management Data <<
Juhua Corporation places strong emphasis on the assessment and management of water-related risks, and conducts scientific scenario analysis Year
Indicator Unit
by referencing the WWF Risk Filter Suite developed by the World Wildlife Fund. This tool integrates seven databases and models related to water 2025 2024 2023
stress, including drought index, water depletion, baseline water stress, blue water scarcity, remaining available water, drought likelihood, and
projections of changes in drought frequency. The assessment covers all subsidiaries of the Company under baseline conditions, current trends
Water withdrawal (municipal supply) 10,000 m? 2,130.29 2,508.58 2,642.30
scenarios (2°C climate scenario) for 2030 and 2050, and pessimistic scenarios (3.5–4.0°C climate scenario) for 2030 and 2050. Water stress risk
levels are evaluated and presented as a percentage of total projects, reflecting the distribution of risk exposure across the Company’s operations.
Water withdrawal intensity 10,000 m?/RMB million revenue 7.89 10.25 12.79
Climate Risk Assessment: Scenario Analysis
percentage
︵ ︶
%
Water recycling rate % 96.30 96.30 95.70
Baseline 2030 Current Trend 2030 Pessimistic 2050 Current Trend 2050 Pessimistic
Medium Risk High Risk Very High Risk
Raw Materials Management
Analysis indicates that under the baseline scenario, approximately 13.8% of subsidiaries are exposed to high or above water stress levels. Under
Juhua Corporation has established a well-structured and systematic raw materials management framework. The Marketing Department centrally
the current trends scenario (2°C) and the pessimistic scenario (3.5–4.0°C), this proportion is projected to increase to 27.6% and 34.5%,
manages bulk procurement and oversees strategic supplier management for key raw materials, covering procurement, utilization, and full life
respectively, by 2050. Based on the identified risks, the Company has optimized its water resource management system, improved water supply
cycle management to ensure an integrated governance structure. The Company strictly complies with relevant national standards in the
interruption contingency plans and supply assurance mechanisms, and implemented targeted mitigation and response measures. In addition,
procurement, transportation, storage, and use of raw materials, while actively supporting green and low-carbon development. Guided by the
water resource utilization indicators have been incorporated into the performance evaluation system and linked to the compensation of
principle of maximizing raw material value, it advances efficient utilization and recycling practices.
personnel at production sites.
In practice, the Company promotes technological innovation and industrial chain collaboration, enhancing the industrial application of
low-grade fluorite resources and the cascading utilization of by-products. It continuously improves resource efficiency and conducts ongoing
Metrics and Targets monitoring and evaluation of management measures and performance.
During the reporting period, Juhua Corporation’s planned water withdrawal for 2025 was 25.77 million m?, while actual withdrawal was 21.30 The Company further advances green raw material management through eco-design and process optimization, promoting reduction, recycling,
million m?, remaining within the planned range. Total recycled water volume reached 569.85 million m?, with a water recycling rate of 96.30%. and harmless utilization of materials. Suppliers are required to prioritize environmentally friendly and recyclable packaging materials, while
collaborative efforts are made to advance energy conservation, carbon reduction, and green transition, increasing the use of sustainable raw
>> Water Resource Management Targets and Progress << materials and renewable energy. Environmental impacts are minimized across the entire product life cycle, from design to production.
For hazardous substances management, the Company systematically identifies related risks in production processes and implements measures
Baseline Baseline Short-term Medium- to Long-term including green substitution, process emission reduction, and end-of-pipe treatment to reduce emissions. It also continuously optimizes
Indicator Unit Progress
Year Data Target (2026) Target (2030)
production processes and material structures, prioritizing environmentally friendly alternatives to reduce the intensity of hazardous substance
use at the source and enhance environmental safety.
Water
tonnes
consumption
water/ton 2025 10 ↓0.2% ↓1% In progress
per unit of
product
product
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Ecosystem Protection Clean Technology Opportunities
Juhua Corporation strictly complies with international and national biodiversity-related frameworks, including the Convention on Biological Juhua Corporation focuses on three core objectives: full value-chain decarbonization, technological self-reliance and green manufacturing, and
Diversity, the Kunming-Montreal Global Biodiversity Framework, and the China Biodiversity Conservation Strategy and Action Plan (2023–2030), systematically builds a clean technology innovation system. Driven by technological innovation, the Company actively captures opportunities
as well as applicable local laws and regulations. During project siting and early-stage development, ecological protection requirements are arising from advanced clean technologies, continuously improving the low-carbon and high-end characteristics of its products and
incorporated into environmental impact assessments, and ecological redline areas are strictly avoided. All operating sites are located outside key manufacturing processes, and enhancing its competitiveness in global sustainable development.
ecological protection zones, and the Company’s production and operational activities have not caused significant impacts on local biodiversity.
During the reporting period, a newly established project in Gansu completed environmental impact assessment procedures and obtained
regulatory approval.
Green Products
Adhering to the development philosophy of “Industrial Symbiosis and Ecological Value Creation”, the Company has established an ecosystem Aligned with the national “Dual Carbon” strategy and the green transformation of the fluorochemical industry, the Company promotes product
protection framework tailored to the fluorochemical industry. This includes: developing environmentally friendly and biodegradable materials; upgrading through technological innovation and systematically develops a portfolio of low-carbon and environmentally friendly products.
promoting ecological product design for fluorochemical and petrochemical new materials; exploring the use of green and low-carbon raw
In the refrigerant sector, the Company has strategically developed fourth-generation Hydrofluoroolefins (HFO) refrigerants, characterized by low
materials; prioritizing environmentally compliant suppliers, thereby advancing coordinated emissions reduction across the value chain and
Global Warming Potential (GWP), short atmospheric lifetime, and excellent chemical stability, representing a key alternative to third-generation
reducing lifecycle ecological impacts.
HFC refrigerants.
At the same time, the Company actively cultivates an environmental culture by organizing annual voluntary tree-planting activities, fostering a
In the field of fluorinated fine chemicals, the Company has developed electronic fluorinated liquid Hydrofluoroether (HFE) D-series and
positive atmosphere of environmental stewardship.
Perfluoropolyether (PFPE) JHT series products. These products provide critical solutions for industries such as semiconductor manufacturing,
data centers, new energy vehicles, energy storage systems, robotics and artificial intelligence, including high-efficiency thermal management,
precision cleaning and lubrication under extreme conditions, thereby supporting green upgrading of advanced manufacturing.
Case | Voluntary Tree-Planting to Build a Green Industrial Campus
In the field of liquid cooling, the Company’s self-developed immersion liquid cooling project has been included in the national Green and
Low-Carbon Advanced Technology Demonstration Project List. The Company has established integrated capabilities covering cooling fluid
During the 47th Arbor Day, the Company organized tree-planting activities across its industrial site, planting nearly 100 saplings, including cherry formulation, core equipment and system design, significantly improving energy efficiency in data centers.
blossom, camellia and peach trees. As of the end of the reporting period, the number of plant species on site exceeded 150 and the total green area
exceeded 400,000 m?. The Company continues to promote the development of a “garden-style factory” and a “chemical industrial city within a
forest”. Green Manufacturing
The Company integrates green and environmentally friendly principles throughout the entire lifecycle of product development and
manufacturing processes.
By applying advanced green process technologies, implementing energy-saving upgrades in core units such as ammonia synthesis and
monomer polymerization, deploying high-efficiency equipment (including magnetic levitation blowers, high-efficiency motors and heat recovery
systems), and substituting green electricity, the Company continuously reduces carbon intensity per unit of product, achieving both
environmental and economic benefits.
Green Factories
Following the principles of “Source reduction, Process control and End-of-pipe treatment”, the Company continuously improves management
systems related to energy management, resource utilization, pollution prevention and information disclosure in accordance with national and
provincial green factory standards. The Company promotes greener production processes, standardized management systems and quantified
performance indicators, comprehensively enhancing its green manufacturing level.
During the reporting period, new provincial-level green and low-carbon factories were recognized, 1 municipal-level green and low-carbon
factory was recognized, and 3 subsidiaries passed municipal-level cleaner production audit acceptance.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
United Nations Sustainable Development Goals (SDGs) Addressed in This Chapter:
PART
Strengthening Operations
and Enhancing Products
and Services
Highly Material Issues Addressed in This Chapter:
Juhua Corporation adheres to high-standard quality management as its foundation and green innovation as • Chemical Safety
its strategic direction, continuously optimizing its product portfolio and service systems. Driven by research • Product and Service Safety and Quality
and development innovation, the Company advances industrial upgrading, strengthens intellectual property • Innovation-Driven Development
protection and chemical safety management, and builds a safe, healthy and compliant production and
operational environment. The Company actively responds to diversified customer needs, continuously
enhances its service capabilities, and improves value chain coordination and core competitiveness, thereby
creating long-term value for sustainable industry development.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
>> Chemical Safety Risks and Opportunities <<
Chemical Safety Management
Juhua Corporation continuously strengthens the full lifecycle management of chemicals, and is committed to providing customers with greener, Type Description Financial Impact
safer and more sustainable products and services.
The fluorochemical industry involves hazardous chemicals, precursor
Governance Compliance
chemicals, explosive precursors and other controlled substances.
Failure to promptly comply with national and local regulatory require- Increased compliance costs
ments on registration, storage, transportation, use and emissions may Reduced operating revenue
result in administrative penalties, mandatory rectification or production
The Company strictly complies with applicable domestic and international laws, regulations and standards, including the Work Safety Law, the suspension.
Regulations on the Safety Management of Hazardous Chemicals, the Priority Control Chemicals Catalog, the Safety Code for Special Operations
in Hazardous Chemical Enterprises, as well as the EU Restriction of Hazardous Substances Directive (RoHS) and the Registration, Evaluation,
Increased accident
Authorization and Restriction of Chemicals Regulation (REACH). Refrigerants, fluorinated monomers, solvents and intermediates are
handling costs
Safety often flammable, explosive, toxic or highly corrosive. Leakage, fire or
Higher insurance expenses
The Company has established a comprehensive chemical management organizational structure. For chemicals of concern, a safety management incidents explosion during production, storage, transportation or operation may
Reduced operating
result in casualties, environmental pollution and asset losses.
system covering headquarters to frontline operations has been developed. The General Manager is responsible for overall safety management. revenue
The Health, Safety and Environment (HSE) Department is responsible for hazard identification, monitoring and management, and for formulating
relevant strategies, policies and standards. The Production and Operations Department is responsible for supervision during production and
Risk Leakage or improper disposal of fluorinated chemicals may cause Increased environmental
usage processes. Each production base and business unit is responsible for the management of chemical use, storage, transportation and Environment
long-term impacts on soil, water bodies and employee occupational remediation costs
and health
disposal, and for developing emergency response plans to address unexpected incidents. This top-down management system ensures that all health. Potential litigation costs
chemical-related activities comply with domestic and international regulatory requirements, and that implementation is effectively supervised.
In addition, subsidiaries conduct regular safety assessments of hazardous chemicals, and improve on-site emergency response plans for leakage The Company’s complex product portfolio and diverse process routes
Reduced production
incidents based on actual operational conditions. Emergency response mechanisms include establishing emergency response teams, equipping require high standards for operational procedures and personnel
Operations and efficiency
capabilities. Insufficient training or operational errors may lead to
emergency materials and resources, and conducting regular operational training and emergency drills. These measures enhance employees’ management Reduced operating
production fluctuations, shutdowns or unstable product quality,
revenue
ability to respond to emergencies and minimize the impact of accidents. affecting delivery capability.
The Company has formulated and implemented a series of internal management systems, including Measures for Hazard Identification and Risk
Classification and Control, Regulations on Chemical Safety Management, Safety Management Regulations for Chemical (R&D) Pilot Projects, Products are widely used in medical, food packaging, electronics and
Increased compensation
Product costs
Management System for the Safe Operation of Precursor Chemicals, and Regulations on Road Transportation of Dangerous Goods. Through liability defense sectors. Inadequate safety control may result in customer
Revenue loss due to
claims, product returns or reputational damage.
these systems, the Company identifies hazardous substances in its products and implements dynamic tracking and continuous revision of customer attrition
management measures.
Juhua Corporation strictly implements the “Three Simultaneous” requirements for safety facilities in hazardous chemical construction projects By adopting green chemistry principles, replacing high-risk substanc-
es, improving process safety and reducing the use of toxic and hazard- Increased operating
(i.e., simultaneous design, construction and commissioning), continuously improving the intrinsic safety level of its facilities and controlling risks Product
ous chemicals, the Company can enhance product safety and environ- revenue
at the source. For projects involving “Two key Categories and One Major Hazard” (key hazardous chemicals, key processes and major hazard competitiveness
mental performance, strengthening competitiveness in high-end Improved profit margins
manufacturing and strategic emerging industries.
installations), the Company conducts Hazard and Operability Studies (HAZOP). In accordance with the Detailed Rules for Special Safety
Opportunity
Inspections of Major Hazard Installations in Hazardous Chemical Enterprises, the Company continuously carries out supervision and inspection
of major hazard sources, ensures timely rectification of identified issues, and establishes a closed-loop management mechanism.
Management Establishing a comprehensive full lifecycle chemical management
Reduced operating costs
capability system and continuously improving intrinsic safety levels helps reduce
Reduced risk-related costs
Strategy
incident rates and enhance trust from capital markets and regulators.
Juhua Corporation systematically identifies and analyzes risks and The Company’s chemical safety management strategy is centered on “Full Lifecycle Control”. Through strengthening compliance management,
opportunities related to chemical safety, providing a robust basis for improving safety systems, standardizing operational procedures, promoting technological innovation, and enhancing supervision and
the formulation of scientific and effective management strategies. continuous improvement, the Company comprehensively manages compliance, safety and operational risks, ensuring that chemical use remains
safe and compliant.
Impact, Risk and Opportunity Management
The Company continuously monitors updates to the Substances of Very High Concern (SVHC) list under the EU REACH Regulation, as well as
updates to the national catalogue of hazardous chemicals. For key regulated chemicals, the Company has established an internal hazardous
substance management register, and has defined clear management requirements covering the entire lifecycle of chemicals, including design,
production, distribution, storage, use, transportation, disposal.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Case | Substitution of Key Chemicals of Concern to Enhance Product Safety and Compliance
• Conduct hazard identification and risk assessment of chemicals during development. Establish
internal chemical evaluation mechanisms. Assess the feasibility of substituting hazardous chemicals.
Product Development The Company continuously monitors relevant regulatory developments, including the EU REACH Regulation, and actively replaces or phases out
chemicals of concern. In the production of certain fluoropolymer products, PFOA (perfluorooctanoic acid) may be involved. The Company has
completed the development of substitution technologies and has successfully implemented substitution across all production units and product lines.
For products containing PFAS (per- and polyfluoroalkyl substances) in their formulations, the Company has conducted a comprehensive review across
all product lines, identifying applicable exemption categories and timelines based on product characteristics, while continuously tracking regulatory
developments related to proposal for PFAS restrictions under the REACH Regulation and their implications for broader chemical management
requirements.
• Establish supplier selection standards and management systems for chemicals. Ensure procured
chemicals comply with regulations.Evaluate the safety of chemicals throughout the procurement
process; Ensure compliant sourcing.
Raw Material Procurement During the reporting period, the Company did not experience any major chemical leakage incidents or other safety-related events.
Innovation-Driven Development
Juhua Corporation places strong emphasis on its innovation strategy and R&D management, striving to build an efficient and collaborative R&D
• Establish a full lifecycle management system for chemicals. Strengthen control over storage,
handling, reactions, handling processes and disposal. Conduct regular safety inspections, risk organizational system and professional team. By maintaining a high level of R&D investment and implementing scientific and standardized
assessments and training. Implement safety protection and monitoring measures throughout the management mechanisms, the Company continuously promotes coordinated innovation across the industrial and supply chains.
Production Process process. Ensure safe and compliant production operations.
Governance
Management
Juhua Corporation adheres to fluorochemical industry development as its core focus, with the application of the “Four New” approaches as the
key direction for industrial transformation and upgrading. It accelerates the advancement of innovation-driven development and industrial
transformation. The Company has formulated and implemented the Measures for Scientific Research and Development Management, providing
• Conduct product safety performance testing and compliance assessments. Disclose safety systematic standardization and full lifecycle management of R&D activities.
information related to chemicals. Provide customers with safe usage guidelines. Respond to
customer feedback and continuously improve products and services. The Company has established an R&D governance structure of the Board of Directors, the Strategy Committee, and the Investment,
Product Quality and
Customer Communication Development and Construction Department. The Board of Directors and Strategy Committee are deeply involved in the research and formulation
of innovation strategies, assessing the technological leadership of products and technologies based on industry trends and providing strategic
guidance, ensuring alignment between R&D direction, market demand and industry development. The Investment, Development and
Construction Department focuses on technological breakthroughs in key industries and specialized fields, organizing and advancing R&D
initiatives. The Company has also established a collaborative R&D network comprising Technology Center Company, business divisions,
• Standardize the collection, storage, transfer and disposal of chemical waste. Commission qualified subsidiaries, production bases and relevant functional departments. These entities jointly undertake product development, technical support,
third parties for compliant treatment. Establish “Cradle-to-Grave” tracking systems. Ensure safe and testing and validation, and information management. The Company’s R&D scope covers areas including fluorinated materials and petrochemical
compliant final disposal of chemical waste.
Chemical Waste and Disposal new material ecosystem products, low-GWP new refrigerants and new energy materials, and continuously improves R&D efficiency through
Management
digitalization and intelligent technologies.
When managing and reporting the quantities of chemicals produced and imported, the Company complies with regulatory requirements by
Strategy
conducting environmental management registration for new chemical substances that are not listed in the Inventory of Existing Chemical
The Company systematically identifies and analyzes risks and opportunities in R&D and innovation, supporting the development of scientific and
Substances in China (IECSC). For chemical substances already listed in the IECSC and the Catalogue of Hazardous Chemicals under Priority
robust strategic decisions.
Environmental Management, the Company reports annually to the ecological and environmental authorities on their production, import, use and
emissions, ensuring that no prohibited or restricted substances are used. The Company has established a full lifecycle hazard assessment and
control system, under which all fluorochemical raw materials, intermediates and finished products involved in production are subject to 100%
hazard identification and classification management in accordance with the GB 30000 series standards.
Juhua Corporation actively promotes the reduction and substitution of regulated chemicals. Through process optimization and enhanced
management, the Company reduces usage volumes and storage quantities, or adopts safer alternative materials, thereby lowering potential risks
to the environment and employee health. During the reporting period, the Company continuously advanced substitution research for substances
restricted by regulations or customers. Among these, the PVDF additive substitution technology project has achieved stable industrial-scale
production, with average monthly sales reaching several hundred tonnes.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
>> Innovation-Driven Risks and Opportunities <<
Case | High-Value Patent Cultivation Platform for High-Performance Fluorinated Materials
Selected as a Provincial-Level Initiative
Type Description Financial Impact
In November 2025, the platform submitted by the Technology Center Company focusing on the "High-Performance Fluorinated New Materials" field
was successfully included in the "2025 Zhejiang Provincial High-Value Patent Cultivation Platform Project List".
Rapid iteration of fluorochemical new materials, new refrigerants and Decline in operating
Technological high-performance fluoropolymers. Misjudgment of R&D direction or revenue As the Company’s core R&D institution and a key supporting unit of the National Engineering Research Center for Fluoromaterials, the Technology
iteration lagging technological pathways may result in product substitution and Increased risk of asset Center Company operates multiple innovation platforms including a State?Recognized Enterprise Technology Center, a Post?Doctoral Research
weakened market competitiveness. impairment
Station, and one of the first batch of New-Type R&D Institutions in Zhejiang Province. It also serves as the secretariat of specialized committees
Risk under the China Association of Fluorine and Silicone Industry and the Zhejiang Fluorochemical Industry Technology Innovation Strategic Alliance.
Focusing on patent management system development, the Company coordinates patent cultivation, operation and strategic deployment,
Long development cycles, high investment and uncertain success Increased R&D expenses supporting the transformation of R&D outcomes into core technologies and key intellectual property assets.
Commercialization
rates, combined with slow progress in validation stages, may lead to Extended payback period Juhua Corporation advances platform development through top-level patent design, high-quality cultivation, efficient commercialization and
of R&D outcomes
difficulty in translating R&D inputs into commercial outputs. Reduced profit margins
leading demonstration practices, gradually forming a distinctive patent cultivation model. Going forward, the Company will leverage this platform
to integrate upstream and downstream industry players and academic research resources, building a high-value patent ecosystem spanning
fundamental research, technology development, product transformation and market application, and continuously enhancing its independent
innovation capabilities.
Continuous development of high-performance fluorinated materials,
Product structure Increased operating revenue
low-GWP refrigerants and functional fine chemicals enables the
upgrading Improved gross margins
transition from generic products to high-value, high-barrier products.
Green and Innovation in green chemistry, clean production and low-carbon
Reduced compliance risk
Opportunity low-carbon technologies aligns with regulatory trends and customer ESG expecta-
Enhanced pricing power
innovation tions, enhancing product sustainability attributes.
Intellectual property Strengthening patent deployment, protection of technical know-how Increased market share
and technological and participation in standard-setting helps build technological barriers Reduced competitive
barriers and enhance market influence. pressure
Case | World’s Largest Single-Unit PDO/PTT Integrated Facility Successfully Commissioned
R&D Incentive Mechanism
On 19 October 2025, the 150,000 tonnes/year PDO/PTT integrated facility of Ningbo Juhua Chemical Company successfully produced its first batch
The Company continuously promotes technological innovation to enhance product competitiveness. To ensure effective implementation
of qualified products, achieving successful commissioning on the first attempt. As a key project under Zhejiang Province’s “Thousand Projects,
of R&D activities, R&D and innovation tasks are incorporated into the technology innovation task plans of business divisions, and are
Trillion Investment” initiative, the commissioning of this facility marks a significant breakthrough in China’s polyester new materials sector, breaking
linked to performance evaluation and professional process assessments, ensuring accountability for innovation. The Company long-standing foreign technological monopolies and advancing industrial chain localization.
implements stage-gate management and evaluation standards for new product development projects, ensuring dedicated and efficient
PTT offers excellent elasticity recovery, dyeability and environmental performance, and is widely used in high-end textiles and engineering plastics.
use of R&D funds. R&D investment is continuously increased, and a special innovation incentive fund has been established to reward PDO, as the core raw material for PTT, has long been subject to foreign technological constraints, limiting independent industry development. This
teams or individuals achieving outstanding results in areas such as technological development, process optimization, product innovation. project represents the largest single-unit capacity of its kind globally, adopting a chemical process route and achieving advantages in process
These measures enhance employees’ innovation awareness and motivation. At the same time, the Company has established multi-level stability and raw material supply through technology introduction, digestion, absorption and re-innovation. It establishes a highly efficient and
coordinated closed-loop production system.
innovation platforms, supporting employee participation in innovation projects and providing necessary resources. Juhua Corporation
actively organizes innovation training and technical exchange activities, integrates internal and external resources, shares cutting-edge The project builds upon the Company’s long-term technological
technologies and innovation concepts, and stimulates overall innovation vitality. accumulation. Previously, the Company collaborated with institutions
such as the Dalian Institute of Chemical Physics of the Chinese
Academy of Sciences to develop heterogeneous catalytic
Impact, Risk and Opportunity Management hydroformylation of olefins, achieving the world’s first industrial
application of single-atom catalysts. The project received the Second
Juhua Corporation continuously improves the mechanisms for incubation and industrialization of R&D achievements, accelerates the Prize of Ningbo Science and Technology Award, laying a strong
technical foundation for the facility’s successful commissioning.
application of new technologies and processes, and strengthens the role of technological innovation in supporting its core business.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Case | National Key R&D Project Achieves Outstanding Acceptance and Enables Scaled Deploy- Case | Core Patent Recognized Nationally, Enabling Breakthroughs in New Refrigerant
ment of Liquid Cooling Technology Technologies
During the reporting period, the project titled "R&D and Application Demonstration of Liquid Cooling Thermal Management Materials for Data In June 2025, Quhua Fluorine Chemistry Company’s patent titled “A Method for Producing
Centers", a National Key R&D Program "Open Competition Mechanism" project undertaken by the Technology Center Company, successfully passed 2,3,3,3-Tetrafluoropropene” was awarded the 25th China Patent Excellence Award.
acceptance and was rated as excellent, and also won the second prize in the 2nd "Navigator Cup" Innovation Competition for State-Owned Assets 2,3,3,3-Tetrafluoropropene, as a key alternative to HFC-134a, has been widely adopted in
and State-Owned Enterprises. European and North American markets.
The project focuses on the high-efficiency heat dissipation requirements of next-generation data centers, achieving breakthroughs in key materials The technology improves production efficiency and product performance while reducing
and system integration technologies for liquid cooling. Through project implementation, the Company has developed an integrated solution greenhouse gas emissions by approximately 97%, providing technical support for
covering cooling fluids, thermal management equipment, immersion liquid cooling servers. It has established turnkey capabilities for immersion compliance with the Montreal Protocol and the Kigali Amendment, while achieving
liquid-cooled data centers (including AI and supercomputing centers), covering design, construction, installation, commissioning and operation. localization of core technologies and promoting green industry transformation.
Applications have been extended to energy storage liquid cooling, liquid cooling for 5G baseband units (BBU). Projects such as the Shanghai
Alibaba Cloud liquid cooling project, China Telecom Tianyi Cloud liquid-cooled computing center and China Mobile Qingyang liquid-cooled data
center have been successfully delivered. Projects under the “East Data West Computing” initiative, including Qingyang hub nodes, Jiuquan data
investment projects and the Quzhou Wanka cluster, are progressing in an orderly manner.
Case | Innovation-Driven Breakthroughs in Green New Materials
The Company continues to strengthen its innovation leadership, focusing on key technologies in new energy and high-end new materials. Multiple
achievements were recognized with the 2024 Zhejiang Provincial Science and Technology Awards. The Technology Center Company’s project on
“Key Preparation Technologies and Applications for High-Molecular-Weight Perfluorosulfonic Acid Resin for New Energy” won the Second Prize in
Technological Invention. Jusu Chemicals Company’s project on “Green Manufacturing Technologies for High-End PVDC Materials” won the Second
Prize in Scientific and Technological Progress. Ningbo Juhua Chemical Company’s project on “Industrialization of Olefin Hydroformylation and
Hydrogenation Based on Single-Atom Catalysts” won the Third Prize in Scientific and Technological Progress.
Through continuous advancement of technological innovation and commercialization of results, the Company strengthens its core competitiveness
in green new materials, fosters innovation-driven new productive forces, and supports high-quality industrial development.
Case | Selected as a National Pilot Platform to Advance Fluorine-Chlorine New Material
Commercialization
The pilot-scale platform for high-performance fluorine-chlorine synthetic resins and specialty monomers, developed and operated by the
Technology Center Company, has been selected as one of the first batch of national manufacturing pilot platforms by the Ministry of Industry and
Information Technology (MIIT).
Since its establishment in 2002, the platform has focused on high-performance fluorine-chlorine polymers, specialty monomers and high-end
fluorinated specialty chemicals. The platform currently covers over 60,000 m?, with more than 3,000 sets of equipment and advanced analytical
instruments, forming a comprehensive pilot-scale capability system. Its outcomes have been widely applied in areas such as data center liquid Digital Transformation
cooling, integrated circuits, hydrogen energy and energy storage, and aerospace. The platform has also incubated multiple technology enterprises.
Its pilot-scale conversion rate has consistently exceeded 80%, fostering multiple national-level manufacturing champions and “Little Giant”
Since the start of the 14th Five-Year Plan, Juhua Corporation has identified digital and intelligent transformation as its “No.1 Project” for
specialized enterprises, creating strong industrial spillover effects.
achieving high-quality development, and has systematically advanced digital transformation across the entire value chain of production
and operations. By leveraging digital technologies, the Company enhances safety, efficiency and value creation. Through the deep
integration of automation, informatization and intelligent technologies, the automation rate of production facilities has increased to over
incident rate has declined by 80%.
Centered on the “Three Zeros” initiative—zero manual intervention, zero standby equipment, and zero distance—the Company has
restructured its production and operational management model, transitioning from labor-dependent operations to intelligent
operations. This has resulted in systematic improvements in equipment management, business coordination, and process efficiency. At
the same time, the Company actively embraces the “AI+” strategy, strengthening data governance and platform development.
Leveraging a centralized data platform (data middle office), it is transforming management decision-making from experience-driven to
data-driven, and building a comprehensive digital platform system covering production operations, safety management, organizational
collaboration and supply chain management.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Metrics and Targets
During the reporting period, Juhua Corporation added 1 new national high-tech enterprise (Jinju Chemicals Company), bringing the total
number of high-tech enterprises to 12. A total of 24 major scientific and technological achievements were realized, including 9 pilot-scale
(lab-scale) results, 8 intermediate pilot results, 7 industrialized results. The Company filed 124 patent applications (including 11 PCT
applications). A total of 77 patents were granted, including 5 overseas patents.
During the reporting period, Juhua Corporation and its subsidiaries received multiple awards and recognitions related to digital During the reporting period, total R&D expenditure reached RMB 1.12 billion; R&D intensity reached 4.70%,
transformation.
representing a year-on-year increase of 9.05%.
Digital Transformation Awards and Recognitions
Looking ahead, the Company plans to continue increasing R&D investment, expand its R&D workforce and maintain an R&D intensity
target of remaining 4.2% by 2026.
The 9th batch of National Manufacturing Single
Jusheng Fluorine Chemicals Company
Champion Enterprises by MIIT
Quhua Fluorine Chemistry Company
Jusu Chemicals Company
The 4th batch of Zhejiang Province “Cloud-Based
Enterprises”
Product Quality
Jusheng Fluorine Chemicals Company – “Automated Packaging
Line and Intelligent Warehousing for Fluoropolymers”
Manufacturing Transformation (Digital Transformation)
Quality Management System
The Company strictly complies with applicable laws, regulations and standards, including the Product Quality Law of the People’s
Quhua Fluorine Chemistry Company – “Refrigerant Smart Factory” Republic of China， the Interim Measures for the Supervision and Administration of Product Quality Supervision and Spot Checks and
Jusheng Fluorine Chemicals Company – “PTFE Smart Factory” The first batch of Zhejiang Provincial Advanced-Level
Electrochemical Plant – “Sodium Hypochlorite Smart Factory” Smart Factories (2025) the Regulations on the Implementation of Quality and Safety Responsibilities by Industrial Product Manufacturers. The Company has also
Ningbo Juhua Chemical Company – “Organic Alcohol Smart Factory” established and implemented a series of internal management systems, including Regulations on Product Quality Supervision and
Inspection Management, Measures for the Preparation and Management of Product Quality Reports, Measures for Quality Dispute
Jusheng Fluorine Chemicals Company – “Intelligent Fixed-Weight Cutting The first typical “AI+” application cases for Zhejiang Arbitration Management, Measures for the Formulation and Revision of Enterprise Product Standards and Measures for Quality
and Full-Process Smart Equipment for Low-Mooney Rubber Production” state-owned enterprises
Inspection of Chemical Raw and Auxiliary Materials.
Through these measures, the Company has built a comprehensive and well-structured quality management system with clearly defined
Jusheng Fluorine Chemicals Company – “5G Fully Connected Factory” The MIIT 2025 5G Factory Directory
responsibilities, enabling full-process quality control across key stages, including incoming inspection of raw and auxiliary materials,
production process management, final product inspection prior to delivery, packaging and transportation.
Electrochemical Plant – “AI-enabled PVDF Full-Process Intelligent
Manufacturing Management Application Scenario”
Board of Directors
Industry Engagement
Management
The Company has established and improved a range of
innovation platforms, including national-level innovation
platforms, academician and doctoral workstations, provincial
advanced manufacturing innovation centers, New Materials
Production and Operations Department Technology Center Company Inspection Department
Research Institute Company, low-carbon refrigerant research
institutes, pilot plants and joint laboratories with research
Responsible for the Company’s product Responsible for conducting supervision, Responsible for organizing and implement-
institutions and R&D institutions across subsidiaries. These quality supervision and inspection. inspection and arbitration testing of key ing product quality supervision and inspec-
platforms strengthen an innovation system characterized by Implements product quality and safety Company products. tion activities.
management initiatives. Investigates and handles quality complaints
strategic leadership, internal and external collaboration, and Prevents product quality and safety risks. or non-conformities identified in external
industry–academia–research integration, while actively quality inspections.
supporting industry exchange and collaboration.
During the reporting period, the Company participated in the
development of 1 national standard and 4 industry/association
standards.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
During the reporting period, the Company obtained certification under the GB/T
Measurement Management System. The Company also supported its subsidiaries in
implementing quality management systems, continuously enhancing their quality
management capabilities. In total, 18 subsidiaries obtained ISO9001 Quality Management
Management System
System certification. In addition, the Electrochemical Plant and Jinju Chemicals Company
Juhua Corporation has established the Measures for Customer and Credit Management, requiring marketing entities to build customer
obtained ISO 22000 Food Safety Management System certification.
service systems aligned with the Company’s standards, and to enhance product, technical and logistics service capabilities. Subsidiaries
and sales entities are required to establish customer service and complaint management processes in accordance with these
Quality Assurance and Improvement requirements. The Company has set up diversified communication and complaint channels, including a nationwide unified service hotline
(0570-3098686) on its official website, with dedicated personnel responsible for handling product inquiries and complaints. At the same
Juhua Corporation has established a rigorous product quality inspection mechanism covering raw material acceptance inspection, time, subsidiaries and sales entities collect customer feedback through multiple channels, including internal discipline inspection bodies,
in-process inspection, final product inspection prior to delivery. The Company continuously optimizes its quality performance evaluation sales personnel, administrative offices and handle complaints promptly in accordance with established procedures.
system, conducting dynamic monitoring of quality management effectiveness. Key indicators such as product qualification rate and
customer complaint rate are incorporated into monthly or annual assessments. Responsible departments are required to conduct root Enhancement of Customer Service Capabilities
cause analysis for non-compliant items, formulate and implement corrective action plans, and continuously improve quality
management performance. The Company continues to improve its Customer Relationship Management (CRM) system, covering customer information management,
full lifecycle management and service visits. This enables end-to-end digital management from sales to service, effectively tracking the
entire customer journey—from initial contact, evaluation and conversion to long-term retention. The system provides a clear view of
customer status, supports efficient resource allocation and follow-up, and improves conversion and retention rates.
Case | Two Core Products Selected as “Zhejiang Manufacturing Excellence Products”
The Company’s intelligent customer service system, based on artificial intelligence and natural language processing technologies,
supports knowledge-based Q&A and product inquiry scenarios. It can automatically identify common customer inquiries and provide
Jusu Chemicals Company’s PVDC Resin for Cling Film (SLV22) and Jusheng Fluorine Chemicals Company’s Ethylene accurate responses, improving service efficiency. The system also supports the creation and allocation of service tickets, automatically
Tetrafluoroethylene (ETFE, JH-WHF/WH) were selected for the 2025 “Zhejiang Manufacturing Excellence Products” list, identifying issue types and assigning them to responsible departments, thereby enhancing customer satisfaction.
demonstrating the Company’s sustained investment and achievements in quality management and standardization. The Juhua Digital Marketplace integrates the full lifecycle of product sales, achieving deep integration across multiple systems and
establishing an online sales ecosystem. Through digitalized transaction processes, it connects finance, business units, suppliers,
Jusu Chemicals Company has established a full-process management system covering R&D, production and quality control,
manufacturers, customers and enables end-to-end closed-loop management from order placement to delivery confirmation, eliminating
implementing systematic control over molecular structure, crystallization performance, and barrier properties of PVDC resin
information barriers with upstream and downstream partners, establishing a “zero-distance” communication mechanism, and improving
ensuring stable and reliable product performance in terms of temperature resistance, moisture and oxygen barrier properties,
service convenience, transparency and responsiveness.
and sterilization capability. A comprehensive testing and traceability mechanism ensures that each batch of products meets
standards for food, pharmaceutical and cosmetic packaging, enhancing product safety and stability while achieving import
substitution.
After-Sales Service Management
Jusheng Fluorine Chemicals Company applies precision polymerization processes and key parameter monitoring systems in The Company continuously improves the quality of after-sales services. Each business division regularly conducts customer satisfaction
ETFE production to ensure that mechanical strength, light transmittance, weather resistance, and cleanliness reach surveys through questionnaires, widely collecting customer feedback and suggestions. Based on feedback, the Company formulates and
internationally advanced levels. Through a comprehensive quality management system, standardized process specifications implements corrective measures, and conducts follow-up visits to ensure issues are effectively resolved, forming a closed-loop
and proprietary testing methods, Juhua Corporation ensures stable supply of high-end fluorinated materials, supporting management system. Customer satisfaction is incorporated into the performance evaluation system, serving as an important indicator
applications in architectural membranes, aerospace and new energy sectors. for annual performance assessment and corporate management objectives.
During the reporting period, the Company’s customer satisfaction score reached 89.64.
Data Security and Customer Privacy Protection
The Company strictly complies with laws and regulations such as the Cybersecurity Law of the People’s Republic of China, the Personal
Information Protection Law of the People’s Republic of China and has established a comprehensive data security management system
to protect the personal information and data of customers, partners and employees.
During the reporting period, the following 3 products were selected for the 2025 Zhejiang Provincial Outstanding Industrial The Company has formulated internal policies including Regulations on Network and Information Security Management and Measures
New Products List: for Information Technology Management of Corporate Headquarters to standardize information security practices and implement
requirements for information security, cybersecurity and incident management. The Board of Directors oversees information security
• Jusu Chemicals Company – PVDC Resin for Cling Film
strategy, while the General Administration Department is responsible for advancing cybersecurity initiatives. Subsidiaries establish
• Chuangfu High-Tech Company – Perfluoropolyether-based Cooling Fluid
corresponding management systems and dedicated working groups based on operational needs, ensuring robust data security
• Jusheng Fluorine Chemicals Company – Peroxide-cured Perfluoroether Rubber (FFKM)
protection for both domestic and international customers.
During the reporting period, the Electrochemical Plant and Jusu Chemicals Company obtained ISO 27001 Information Security
Management System certification.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
United Nations Sustainable Development Goals (SDGs) Addressed in This Chapter:
PART
Fulfilling Social
Responsibility and Creating
Shared Value
Highly Material Issues Addressed in This Chapter:
Juhua Corporation remains committed to a people-oriented approach and the creation of social value. The • Occupational Health and Safety • Social Contribution
Company places strong emphasis on talent development and incentive mechanisms, fully safeguards • Employee Training and Development • Rural Revitalization
employees’ rights and benefits, and builds a resilient and sustainable supply chain ecosystem. At the same
• Employee Rights and Benefits • Fair Treatment of SMEs
time, the Company actively participates in public welfare and charitable initiatives, giving back to society
• Supply Chain Security
through concrete actions and demonstrating its corporate responsibility and commitment.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Employee Rights and Benefits According to the annual employee satisfaction survey, employee satisfaction reached 84.90 %,
Labor and Human Rights and corporate culture recognition reached 88.14 %.
Recruitment and Employment
Juhua Corporation strictly complies with applicable laws and regulations in all jurisdictions where it operates, including the Labor Law, the Labor Case | Trade Union Representative Congress Enhances Democratic Participation
Contract Law, the Social Insurance Law, and the Provisions on the Prohibition of Child Labor. The Company also aligns with relevant international
standards, such as the United Nations Sustainable Development Goals (UN SDGs) and Conventions of the International Labor Organization(ILO),
During the reporting period, the Company continued to improve employee
and continuously improves its internal policies, including the Labor Employment Management Measures. The Company adheres to open
participation and communication mechanisms, leveraging the trade union as a
recruitment and non-discrimination principles, firmly opposes forced labor, illegal labor, harassment and abuse, strictly prohibits child labor, and
bridge between corporate governance and employees. For example, on
safeguards equal employment opportunities and employees’ legitimate rights and interests. It is committed to building a diverse, inclusive and December 3, the Fluororefrigerant Business Division convened its third Trade
dynamic workplace environment. Union Member Representative Congress, attended by more than 80 employee
representatives and guests. The meeting reviewed and approved the trade
During the recruitment process, the Company follows principles of openness, fairness and impartiality, with transparent recruitment procedures and
union work report, systematically summarizing achievements over the past five
standards. The Company adopts a zero-tolerance approach toward child labor and forced labor, treats employees equally regardless of nationality, years in serving employees, supporting enterprise development, and outlining
ethnicity, religion, cultural background, gender or age, and provides supportive positions for persons with disabilities to meet their employment needs. key priorities for the next five years. In accordance with the agenda, new
members of the trade union committee and the fund review committee were
During the reporting period, the Company did not record any violations related to child labor or forced labor.
elected through competitive elections, further improving the governance
structure of the trade union organization.
Indicators Unit 2025 Data
Total number of employees persons 9,093
Number of female employees persons 1,867 Case | Addressing Extreme Heat to Safeguard Employee Health and Safety
Number of employees with disabilities persons 131
In response to prolonged high temperatures, the Company adhered to a people-oriented approach and systematically implemented heat
prevention and safety measures. Key actions included optimizing work schedules and implementing staggered operations; reducing continuous
Number of ethnic minority employees persons 181
working hours during peak heat periods; increasing inspection frequency of critical equipment; strengthening hazard identification and closed-loop
rectification to ensure safe and stable operations. Trade unions and grassroots organizations carried out “Cooling Care Initiatives,” providing
Number of new hires persons 700 heatstroke prevention supplies and emergency medicines, free cooling food in canteens, designated rest areas for frontline workers. In addition, the
Company organized AED training and CPR skill competitions, enhancing employees’ emergency response capabilities.
During the high-temperature period, the Company maintained stable production operations and achieved “Zero Delay” and “Zero Accident”
Employee Rights and Benefits targets, effectively safeguarding employee health and rights.
The Company places strong emphasis on employee rights and welfare, strictly adhering to the principle of equal pay for equal work. During the
reporting period, the Company formulated and continuously improved internal policies, including Performance and Compensation Management
Measures, Employee Attendance and Leave Management Measures, Management Provisions on Compensation and Benefits for Overseas
Employees, and Employee Rewards and Disciplinary Management Measures. The Company provides full social insurance coverage and benefits
for employees in accordance with regulations, effectively safeguarding their lawful rights and interests. At the same time, the Company
continuously improves its compensation system, effectively motivating employees and enhancing engagement.
Juhua Corporation has established a trade union organization covering all employees. The Company convenes an annual employee
representative congress, and through trade union interviews and democratic consultation meetings, collectively discusses issues of concern to
employees. The Company actively listens to employees’ opinions and demands, keeps abreast of employees’ perspectives and needs, and
effectively addresses difficulties encountered in both work and daily life. Through these mechanisms, the Company promotes democratic
management, enabling democratic participation and decision-making.
The Company places strong emphasis on employee rights and welfare, closely monitoring employees’ needs in both work and life, and providing
comprehensive benefits. The Company respects women’s rights, and trade union organizations across subsidiaries have established women’s
committees, which are responsible for safeguarding the rights and interests of female employees.
During the reporting period, the Company maintained a 100% social insurance coverage rate, with total welfare expenses of RMB 10.83 million,
of which statutory welfare expenses amounted to RMB 36.21 million.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Talent Development and Growth
Case | Empowering Female Employees to Support High-Quality Development
Employee Development
The Company actively promotes the “One Juhua” culture and
continuously improves mechanisms for supporting and developing Juhua Corporation adheres to a development strategy of strengthening the enterprise through talent and innovation. The Company has
female employees. During the reporting period, the Company
established a comprehensive career development system for employees and, through innovative talent development approaches, has built a
participated in group initiatives such as the “Women’s Craftsmanship
Dream” recognition program and mentoring programs supporting female systematic and scientifically structured talent cultivation framework.
employees in western regions, leveraging the role of outstanding female
employees as role models and encouraging their contributions to Talent Retention and Motivation through Platforms
western region development, green transformation and digital and
intelligent transformation. Through platforms such as training bases and model worker innovation studios, the Company provides diversified
training programs to enhance employees’ skills.
At the same time, subsidiaries organized various activities including safety awareness competitions, fitness training and cultural and sports
“Juhua Talent Convergence” Initiative
exchanges. These initiatives enriched employees’ cultural life, stimulated engagement, and enhanced their sense of belonging, while supporting
talent structure optimization and coordinated development. Through major talent attraction programs—such as high-level talent introduction initiatives,
“Talent-Attracts-Talent” mechanisms, and the “Top University Talent Program”—the Company
deploys talent in a targeted manner around key projects, advancing a project-driven model.
The Company and its subsidiaries have established strategic task forces, selecting high-po-
tential talent at multiple levels to strengthen these teams. By integrating training with real
project execution, the Company accelerates the development of high-caliber professionals
and technical experts.
“H-shaped” Career Development Pathway
The Company implements the “Position Proficiency”, closely aligning organizational transformation
objectives with employees’ career development goals.
Through positive incentives, employees are encouraged to continuously enhance their technical skills and
professional capabilities, thereby improving their overall competencies. This approach provides strong talent
support for accelerating business restructuring, system transformation and organizational reform.
The Company has established internal career development and evaluation systems, including the Measures for the Management of the
“H-shaped” Career Development Pathway and the Measures for Job Grade Management. By integrating daily performance evaluations and
annual assessments, the Company conducts comprehensive and objective evaluations of employees’ work performance. The Company has
Case | Organizing Diverse Sports Events to Promote Employee Well-being
innovatively developed a three-track career advancement system covering business and management, professional and technical roles, and
production and operational roles. Through horizontal mobility and vertical progression pathways, the system ensures that employees across all
The Company regards employees’ physical and mental well-being as a key foundation for sustainable development, and continues to improve tracks enjoy equal promotion opportunities and access to development resources. Based on the job grading system and business development
occupational health and recreational activity systems. In 2025, the Company encourages employees to participate in Employee Sports Games, needs, the Company continuously refines promotion and demotion procedures. Promotions generally require employees to meet qualification
featuring 14 events including fitness qigong, badminton, table tennis variants, and track and field. These activities strengthened physical fitness
standards and follow a step-by-step progression, while exceptionally qualified individuals may be promoted across levels. The Company
while promoting communication, teamwork and a positive corporate culture. The labor union continuously enhances the form and content of sports
conducts open, fair and transparent promotion processes, publicly disclosing promotion policies—including nomination criteria, procedures and
activities, strengthens the development of sports associations including basketball, football, and table tennis variants, using them as an important
vehicle for promoting corporate culture and strengthening organizational cohesion, and meeting employees’ diverse health and well-being needs. evaluation mechanisms—to management and all departments. Promotion results are publicly announced to ensure fairness and transparency.
Employee Training
Based on internal policies such as the Measures for Education and Training Management, Juhua Corporation has established a comprehensive
training system covering general competencies, professional competencies and leadership capabilities. The system is designed to enhance
employees’ overall capabilities and align closely with the Company’s strategic planning and the developmental needs of employees at different
career stages. The Company adopts a blended learning approach, combining online and offline training. Digital platforms such as the “Zheli
Enterprise Online Training Platform” and the “Zhejiang Provincial Work Safety Online Academy” are utilized to support continuous employee
capability development.
The Company continuously improves its training system and strengthens the development of professional instructors, enhancing both technical
expertise and safety management capabilities. Through the establishment of an internal trainer management system and the implementation of
the Internal Consultant Management Measures, the Company conducts regular evaluations and appointments, gradually forming a professional
training team covering areas such as safety culture, process safety, and equipment safety. As of the end of the reporting period, the Company
had 17 safety culture consultants (including 3 senior-level and 14 trainee-level); 14 process safety consultants; 15 equipment safety consultants
(including 3 senior-level and 12 trainee-level); 40 certified trainers for special operations. These resources provide strong professional support
for employee training and safety capability building.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
During the reporting period, the Company organized 3,375 training sessions, covered 78,827 participant Performance-linked distribution to strengthen incentives and constraints
attendances and total training investment amounted to RMB 7.17 million.
• The Company adheres to “performance-based remuneration”, closely linking compensation to corporate performance, departmental results
and individual performance. Performance pay dynamically adjusts based on appraisal outcomes, favoring high-performing employees and
key positions. Meanwhile, special rewards incentivize outstanding contributions, forming a distribution principle of “more work, more
reward” and “better performance, better pay”.
Case | Building High-Level Training Platforms to Enhance Professional Capabilities
Juhua Corporation, in collaboration with industry associations, organized a Parallel market benchmarking and dynamic adjustment
demonstration training program on risk management and quality control in the
chemical industry. The program covered topics including identification criteria for major
accident hazards, equipment risk perception and assessment, Hazard and Operability • The Company has established a compensation benchmarking and periodic adjustment mechanism, implementing differentiated incentives
based on industry levels and operating performance, with preference for talent in short supply. Through standardized budget and disburse-
Analysis (HAZOP), lean management and quality management. The training adopted a ment management, it ensures that compensation distribution remains fair, compliant, and sustainably effective.
full-time, centralized format, with experts from universities and research institutions
delivering lectures. By integrating theory and practice, the program enhanced the
safety and quality management capabilities of managers and technical personnel.
Training hours were incorporated into the continuing education system, and
outstanding participants were recommended for evaluation as excellent engineers.
Leveraging the construction of an Excellent Engineer Practice Base, the Company Occupational Health and Safety
continues to improve its talent development system, providing strong support for
high-quality industrial development. Juhua Corporation regards safe production as the lifeline, red line and bottom line of its development, implements risk pre-control and
forward-looking judgment, continuously advancing the establishment of a long-term safety management mechanism, strictly fulfilling its
primary responsibility for safety production, and focusing on the identification and elimination of safety hazards. Through these efforts, the
During the reporting period, the Company conducted key internal training programs, including certification renewal and retraining for enterprise Company comprehensively enhances its safety management capabilities.
leaders and safety management personnel; annual training for enterprise leaders and occupational health management personnel; specialized
training in occupational health, safety and environmental management.
Governance
The Company strictly complies with applicable laws and regulations, including the Work Safety Law of the People’s Republic of China, and has
established a five-tier safety governance structure of “Board of Directors- Strategy and ESG Committee-Executive Management-ESG Working
Group-Health, Safety and Environment (HSE) Department”. This governance framework provides strict guidance to ensure intrinsic safety
throughout the entire lifecycle of operations, including full production processes, entire value chains, and full lifecycle management. The
Company clearly defines safety responsibilities across all departments and levels of management, and systematically cascades safety objectives
down to each department and position. Through a tiered system of Safety Responsibility Agreements, responsibilities are assigned to individuals,
ensuring full coverage of safety accountability with no blind spots.
Board of Directors The highest governing body for the Company’s safety production
management.
Responsible for formulating safety production strategies and plans.
Talent Incentives Strategy and ESG Committee
Guides and oversees safety production and occupational health management.
Based on internal policies such as the Compensation System Management Measures, the Company has established a compensation and
Executive Management Responsible for deploying and directing safety production work.
incentive mechanism based on job value and performance contribution. The Company has developed a distribution system linking base salary
and performance-based compensation, closely tying employee income to corporate performance, departmental performance and individual
ESG Working Group Assists executive management in managing safety production activities across
performance results. all production bases.
Responsible for supervision and assessment of safety risk prevention and
Sequence-based and structured compensation system HSE Departmen
control.Conducts regular specialized safety inspections and guidance.
• The Company has established a position-value-based compensation system, adopting a distribution model combining annual salary,
agreement-based salary, and position-performance pay. Position-performance pay consists of base salary, performance pay, allowances
and subsidies, and special incentives, with clearly defined salary grades and steps. The structure is transparent and standards quantified,
reflecting job differences and competency levels.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
The Company, in accordance with applicable laws and regulations such as the Law of the People’s Republic of China on the Prevention Strategy
and Control of Occupational Diseases, as well as system standards including OHSAS 18001 / ISO 45001, and based on its operational
practices, has formulated and continuously updated internal policies such as Occupational Health Management Regulations and Juhua Corporation closely adheres to the main safety work line of "Felt leadership, Line responsibility, Local area management and Full
Management Regulations on the “Three Simultaneities” for Safety Facilities in Construction Projects. The Company has established a participation", implements the development philosophy of "Safety First, Prevention Foremost", and has formulated 32 work measures
strict safety responsibility system, clearly defining annual safety responsibility targets and daily management mechanisms. across five aspects—prevention at source, human prevention, technical prevention, engineering prevention and management
Responsibilities for occupational health and safety are cascaded across all levels to ensure the effective achievement of safety objectives. prevention. It has also formulated and issued the 2025 Safety Production “Action Plan for Breakthrough and Improvement” Task List,
establishing a group-wide, integrated, multi-level occupational health and safety management system. The Company places strong
Safety Management System Documents emphasis on improving safety management effectiveness, strengthening the application of digital and information technologies, and
enhancing capabilities in prevention and control of major hazard risks, monitoring, early warning, and emergency response. The
Emergency Rescue Management Measures Company continues to advance the “Zero Manual Intervention” iterative upgrade, promoting the transformation from high-quality
equipment to high-quality intelligent systems, controlling risks at the source, eliminating potential hazards in a timely manner, and
Measures for Hazard Identification and Risk Classification and Control achieving dynamic elimination of major accident risks, and annual safety performance targets.
Impact, Risk and Opportunity Management
Regulations on Safety Management of Contractors and Related Parties
Incident (Event) Management Measures
Hot Work Safety Management Measures
“Safety Cell Teams” Initiative
Regulations on Safety Risk Assessment and Commitment Disclosure Management Juhua Corporation continues to promote the development of “Safety Cell Teams”, strengthening the foundations of safety management
at the grassroots level, including organizational capability, operational fundamentals and core competencies. This initiative promotes
Safety Management Regulations for Chemical (R&D) Pilot Projects self-managed team-level safety management, effectively preventing and mitigating major safety risks and strengthening frontline safety
capabilities. During the reporting period, based on the “4-3-3 Safety House Model” and its 10 core elements and evaluation criteria, 94
Chemical Safety Management Regulations teams were assessed and recognized as “Red Safety Cell Teams”. Focusing on 22 risk control elements, the Company conducted annual
Management Regulations on the “Three Simultaneities” for Safety Facilities in safety management audits for 15 high-risk enterprises, with overall performance rated as excellent.
Construction Projects
Electrical Incident Investigation Management Regulations
Capability Building and Best Practice
Safety
Management Regulations on Full Employee Safety Responsibility System
Promotion
Systematically enhance team capabilities and promote
Production Operation Incident Management Measures standardized management approaches.
Regulations on Personal Protective Equipment (PPE) Management
Safety Production Cost Management Measures
Safety Facilities Management Regulations
Hidden Hazard Identification and Rectification Management Measures
Regional Safety Responsibility Management Regulations
Working at Height Safety Management Measures Implementation of Integrated Systems Evaluation, Review and Continuous
and Model Development Improvement
Confined Space Operation Safety Management Measures
Establish the “4-3-3 Safety House” model and Establish a dynamic evaluation mechanism and drive
standardize team-based management practices. continuous improvement in safety performance.
Safety Reward and Penalty Management Regulations
Occupational Health Management Regulations
Occupational
Health Management Management Measures for the “Three Simultaneities” of Occupational Disease
Protection Facilities in Construction Projects
Internal Public Security Responsibility System Management Regulations
Fire Safety and Internal Public Security Management Regulations
Security Management
Internal Fire Protection and Gas Protection Safety Management Regulations
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
>> Safety Management Model Review (433 Safety House Model) << The Company continues to strengthen training for all employees. Key initiatives include upgrading the “e-Safety” learning platform,
developing training courses, test banks and a learning credit management system, and improving training infrastructure and experience.
During the reporting period, certification rate for principal persons in charge, safety management personnel, fire safety personnel and
special operation workers reached 100%. A position-based training matrix was developed to assess competency gaps, ensuring 100%
Team-based Autonomous Safety Management training before job assignment. Emergency response capabilities were strengthened, focusing on safe operation practices, self-rescue
and mutual rescue skills, and emergency response procedures. The Company established standardized position-based emergency cards
and promoted the five-step emergency method: “stop, evacuate, alert, report, assist.” Additionally, the Company organized training
programs during the Occupational Disease Prevention and Control Awareness Week, inviting experts from provincial CDC institutions to
Continuous deliver lectures.
Improvement Job Training Capability Enhancement Performance Appraisal
During the reporting period, the Company achieved a 100% certification rate for personnel in the three safety-critical positions. A total
of 965 individuals received annual and renewal training for principal responsible persons and work safety management personnel, 2,517
individuals received special operation training, and 5,714 employees participated in online safety training, with an average of 22.27
training hours per person.
Standardized Operations Standardized Workplace Standardized Activities
Energy Isolation Hazard Identification and Mitigation
Permit-to-Work (PTW) System
“Three Standards”
at Position Level
Area-based Management
Incident and Accident Management 6S Management
Emergency Response Drills
Job Skill Drills / Technical Training
During the reporting period, the Company conducted a total of 1,937 occupational health and safety training sessions.
Alarm and Interlock Systems
Team Safety Activities
Three-level Inspection System
Operating Procedures Shift Handover Meetings
Case | “Everyone Talks About Safety, Everyone Responds to Emergencies” Campaign
Commitment
In May, Juhua Corporation launched its annual 100-day safety campaign themed “Everyone Talks About Safety, Everyone Responds to
Safety Safety Accountability
Culture Principles Team Building Emergencies—Identifying Safety Hazards Around Us”, alongside Safety Production Month activities and the “Ankang Cup” competition. The
Objectives Implementation
campaign included safety awareness campaigns, safety culture development, hazard identification and investigation, emergency drills and
employee safety training. This initiative institutionalized hazard identification and remediation, ensuring risks are managed at the smallest
operational unit, and promoting dynamic elimination of major safety risks.
The Company also organized emergency rescue skill competitions, confined space risk awareness training, safety warning education, and youth
>> The team operates in accordance with standard operating procedures and conducts work cycle inspections << safety initiatives ensuring safety requirements for abnormal operating conditions are effectively implemented at frontline operations. Subsidiaries
conducted team-level safety competitions, drills and skill contests, and extended safety education to production sites through formats such as
“five-minute pre-shift safety briefings” and case-based safety discussions.
Safety Training and Emergency Drills
Juhua Corporation firmly implements safety training and education programs, strengthening capability building in willingness,
knowledge and skills to enhance individual capabilities in four core competencies for safety performance, i.e. foundational safety
capability, safety leadership capability, risk control capability, and emergency command capability. Building on its equipment and
operational transformation, the Company has established position-based safety competency standards, clearly defining safety capability
requirements, skill levels and task lists for each role. It has also implemented evaluation mechanisms for line managers’ safety
performance, continuously improving risk control capabilities.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Case | “One-Form” Electronic Work Permit System
Juhua Corporation has implemented an integrated electronic work permit system across 13 hazardous chemical enterprises. The system integrates
personnel positioning data and GIS-based visualization, enabling real-time monitoring and management of on-site personnel. The system is now
fully operational, with approximately 76,800 work permits issued cumulatively.
During the reporting period, the Company formulated and issued the 2025 Emergency Drill Plan for Production Safety Incidents, and
conducted drills accordingly to strengthen emergency response teams and assess the feasibility and effectiveness of emergency plans.
Metrics and Targets
The Company continues to deepen occupational health and safety management. Progress on key indicators is as follows:
Indicator Unit Target Progress
Major or above safety incidents / 0 Achieved
Total Recordable Incident Rate (per 200,000 hours) / ≤0.18 Achieved
Lost Time Injury Rate (per 200,000 hours) / ≤0.12 Achieved
Acute poisoning incidents / 0 Achieved
Occupational disease incidence rate / 0 Achieved
Regular testing rate for occupational hazard factors / 100% Achieved
Training rate for principal persons, occupational / 100% Achieved
health managers and exposed workers
Occupational health records coverage / 100% Achieved
Reporting rate of occupational hazard projects / 100% Achieved
The Company implements a dual prevention mechanism (risk classification control and hazard identification), and has established an
internal hazard reporting reward system, encouraging employees to actively report safety hazards. This fosters a safety culture in which
“Everyone is a Safety Officer”. During the reporting period, total rewards for hazard reporting exceeded RMB 500,000. The Company During the reporting period, the Company conducted occupational health examinations for employees exposed to occupational hazards,
strictly implements closed-loop rectification processes, ensuring all identified hazards are promptly and effectively addressed, building achieving a coverage rate of 100%. Total safety expenditure amounted to RMB 129 million.
a strong foundation for safe operations.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Resilient Supply Chain Pre-qualification and Control The Marketing Supplier Re-evaluation
Governance
Department, together with the Production & Operations The Company conducts annual re-evaluations of existing
Juhua Corporation is committed to building a resilient and stable supply chain, strengthening supplier compliance management, Department and the Procurement Center, conducts supplier suppliers, assessing performance across quality, service
evaluation.New suppliers are required to provide samples, capability, environmental management and supply
optimizing supplier-related business processes, and establishing equal, mutually beneficial, close and long-term partnerships with pass quality inspection and trial use. Suppliers are assessed performance.Suppliers scoring 80 points or above in compre-
high-quality suppliers. The Company has established a three-tier supply chain management structure, clearly defining responsibilities at across multiple dimensions, including product quality, hensive evaluation are classified as qualified suppliers; those
production and operational capabilities.Only suppliers that scoring below 80 points are classified as unqualified suppliers
each level to ensure stable operations and efficient management of the supply chain. meet all requirements are admitted. and removed.
Provides strategic direction, principles and standards for the supply chain.Over-
Board of
sees major decisions and offers guidance, decision-making and necessary
support.
Risk Identification and Response
Directors
Juhua Corporation places strong emphasis on supply chain risk management. In alignment with ESG management standards, the
Company continuously develops a localized supply chain, advances intelligent supply chain transformation and strengthens overall
Manages sustainable supply chain operations across business units. Oversees supply chain resilience to ensure business continuity and operational stability. At the same time, the Company continuously improves its
Strategy and ESG committee key processes, resources, scope, major risks and issues. Ensures the effective supply chain risk management framework, starting from supplier admission assessments and extending to ongoing monitoring and
implementation of sustainable supply chain strategies. tracking, regular performance evaluations and implementation of continuous improvement measures. This establishes a full lifecycle risk
management mechanism for suppliers. In accordance with the Group’s procurement management policies, the Company optimizes its
Promotes scheme design, decision-making and execution within departments. procurement structure by adopting a hybrid model combining long-term contracts and spot procurement, effectively reducing supply
Conducts risk identification and develops improvement measures. Organizes chain risks. In addition, the Company expands supplier sourcing channels to break reliance on existing supplier monopolies, leverages a
Marketing Department
cross-departmental meetings and regular reporting (including bulk raw aterial digital procurement marketplace with competitive bidding functions to broaden sourcing scope. These measures further enhance supply
procurement coordination meetings).Establishes and maintains a supplier chain flexibility and resilience.
database for raw (fuel) materials procurement.
Conducts supplier training and communication.Responsible for system develop-
ment and management of the supply chain.
• The Company identifies potential supply chain risks by considering industry characteristics and
business drivers of the fluorochemical sector. Key factors include volatility in bulk raw material
The Company strictly complies with applicable laws and regulations, including the Tendering and Bidding Law of the People’s Republic markets, supply continuity of critical chemicals (e.g., fluorine resources and chlorine-based raw
of China and the Regulation on the Implementation of the Tendering and Bidding Law of the People’s Republic of China, and has materials), suppliers’ environmental compliance capabilities, regulatory changes in the
Risk Identification fluorochemical industry, and the potential impact of evolving safety, environmental and production
established comprehensive internal policies such as Supplier Management Measures, Procurement Management Measures for Overseas policies on supply chain stability.
Companies and Management Measures for the Procurement and Supply of Bulk Raw (Fuel) Materials. These systems further standardize
supplier risk control mechanisms, tendering and procurement processes and supplier admission criteria, and supplier performance
evaluation systems, ensuring compliance across the full procurement lifecycle, including tendering, procurement, acceptance and
payment.
The Company has implemented a strict supplier admission process, thoroughly reviewing suppliers’ qualifications in areas such as • The Company has established a risk assessment and dynamic monitoring mechanism, systematically
performance track record, quality management, safety production, environmental protection and contract fulfillment capability to ensure identifying and evaluating supply chain risks. Key measures include implementing risk classification
management for suppliers based on safety, environmental, compliance and delivery performance,
the quality of supplier products and services. Environmental performance is treated as a baseline requirement in supplier selection. The conducting regular audits and special reviews, continuously tracking market and policy
Risk Assessment and
Company assesses suppliers’ environmental responsibility performance, avoids cooperation with suppliers involved in major developments. These efforts enable timely identification of risk changes and early warning signals.
Monitoring
environmental violations, and prioritizes those with strong environmental performance. During the reporting period, supplier admission
and re-evaluation processes were further optimized, transitioning fully from offline approval to online processes. Enhanced due diligence
was conducted on supplier qualifications and operational conditions. Suppliers that had not supplied goods within one year were subject
to re-admission procedures.
Procurement of bulk raw (fuel) materials is conducted in accordance with the Management Measures for Bulk Raw (Fuel) Materials, • Based on the results of risk identification and assessment, the Company enhances supply chain
leveraging approved digital and information-based procurement platforms. Procurement of other materials and services follows the resilience through multiple measures, including strengthening strategic reserves of key raw materials,
establishing diversified supplier structures, enhancing collaborative management with suppliers,
Tendering Management Measures, with supplier sourcing conducted through six methods, including open tendering, open bidding, continuously improving supply chain risk control mechanisms, these actions improve the overall
Risk Response
competitive quotation, invited tendering, competitive negotiation, and direct contracting. flexibility, stability and resilience of the supply chain.
In terms of anti-corruption in the supply chain, the Company requires suppliers to sign a Clean Conduct Commitment Letter. Contracts
include anti-commercial bribery clauses, clearly requiring both parties to comply with all relevant anti-bribery laws and regulations, and
strictly prohibiting any form of commercial bribery throughout all stages of contract engagement, including negotiation, signing, and
execution. Clear reporting channels and responsible departments for handling complaints are also established.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Sustainable Supply Chain Management
Case | Advancing Western Base Construction to Support National Strategy
The Company incorporates key sustainability topics into supplier evaluation criteria, placing strong emphasis on suppliers’ performance
across environmental, social and governance (ESG) dimensions. Suppliers are required to strengthen management practices in areas
In 2024, Juhua Group officially launched the construction of its western base, marking the beginning of a new phase of its “third venture”. Juhua
including environmental management (e.g., adjusting strategic objectives and implementation plans in response to environmental
Corporation actively responded to this deployment and, through a capital increase and share expansion in 2025, plans to invest RMB 23.36 billion
changes), business ethics (e.g., proactive anti-corruption measures and signing integrity agreements), labor and human rights as well as to fully advance the construction of the base. This project represents a key initiative to support the national Western Development Strategy, promote
occupational health and safety and environmental compliance (e.g., providing proof of zero pollutant discharge where applicable). In coordinated regional development and optimize industrial layout and expand opening-up.
addition, the Company incorporates clauses related to environment, health and safety (EHS), integrity and anti-corruption and
The western base leverages local natural resources and green electricity to support low-carbon product manufacturing, enabling integrated and
responsible supply chain management into its procurement framework agreements, achieving a 100% coverage rate.
circular development of upstream and downstream industrial chains. Despite challenges such as harsh environmental conditions and tight
construction timelines, the project team rose to the occasion and fully upheld the “One Juhua” culture and the Iron Man spirit. Recently, the
fluoropolymer circulating water station—part of the base’s public utility (environmental protection) infrastructure—successfully completed
As of the end of the reporting period, the Company had 3,429 suppliers. structural topping-out within 105 days, setting a construction record for similar-scale facilities and marking a key milestone in the project.
To promote high-quality supply chain development, the Company and its subsidiaries organized supplier sustainability training
programs, covering core topics such as fundamental concepts of supply chain sustainability, identification and assessment of
environmental impacts within the supply chain, implementation of green procurement practices, and efficient resource utilization through
supplier management; During the reporting period, the Company conducted 5 ESG-related training sessions for suppliers.
Fair Treatment of Small and Medium-sized Enterprises (SMEs)
Juhua Corporation strictly complies with national policies such as the Regulations on Ensuring Payments to Small and Medium-sized
Enterprises, and has established a standardized and transparent cooperation mechanism. The Company sets reasonable and compliant
payment terms, aligned with industry practices and transaction norms, to support the healthy development of SMEs and contribute to a
harmonious and mutually beneficial business ecosystem. In addition, the Company actively supports suppliers by promoting and
procuring local agricultural products, supporting products from underdeveloped regions and prioritizing local procurement where
feasible.
The Company also actively contributes to community vitality. Focusing on integrated high-quality development in Quzhou, it supports
industrial cluster development, innovation platform construction and infrastructure enhancement, leveraging its advantages in industry,
As of the end of the reporting period, 40.76 % of procurement expenditure was sourced from local suppliers. space, talent and resources to support regional economic systems and development platforms. To improve livelihoods and promote
common prosperity, the Company signed paired assistance agreement with Zhaojue County in Liangshan Prefecture, Sichuan Province,
as well as Huangtankou Township, Loushanhou Village in Quanwang Town, and Xingfuyuan Village in Qujiang District, Quzhou City, and
implemented targeted support programs linked to industrial development and agricultural income generation. The Company also
incorporated Qujiang District into employee wellness travel destinations, supporting rural tourism development.
Community Contribution
Juhua Corporation integrates social responsibility into its corporate strategy, focusing on major national initiatives such as rural
revitalization, East–West regional collaboration, and common prosperity. The Company actively strengthens targeted support for
During the reporting period, the Company invested RMB 2.2 million in rural revitalization, representing a 46.67 %
Xinjiang, carries out assistance programs in Sichuan, and implements a new round of paired support initiatives in Qujiang District,
increase year-on-year.
contributing to local community development through practical actions.
Rural Revitalization
The Company implements national strategic requirements by formulating action plans and implementation guidelines for building a
high-quality development model demonstration zone for common prosperity, establishing sound organizational structures, and
advancing nine major initiatives for shared prosperity. Actively responding to the Western Development Strategy, the Company promotes
both high-quality “Going global” and high-level “Bringing in” initiatives, and has constructed the Juhua Integrated High-Performance
Silicon-Fluorine New Materials Project in Yumen City, Jiuquan, Gansu Province. This project extends, supplements and strengthens
regional industrial chains, promotes integrated industrial development and drives high-quality economic growth in western regions.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Case | Consumption-Based Support to Boost Rural Income Case | Community-Enterprise Collaboration for Public Welfare
To deepen enterprise-local collaboration, Juhua Corporation actively participated in the “Juhua–Qujiang New Year Common Prosperity Market Fair” The trade union of the New Fluorinated Refrigerant Business Unit actively participates in local community governance. In June 2025, it jointly
jointly organized by Juhua Group and the Qujiang District Federation of Trade Unions. The event featured over 30 farmers and enterprises, and more organized a Dragon Boat Festival charity event with a local community, where employees and residents participated in traditional activities,
than 100 specialty agricultural products. strengthening social cohesion.
Through a consumption-driven support model, employees were encouraged to purchase local products, simultaneously meeting festive The initiative also included visits to elderly individuals living alone and vulnerable households, providing essential supplies and festive care
consumption needs, expanding sales channels for farmers, stabilizing income expectations. This effectively promoted agricultural value realization packages.
and contributed to common prosperity.
Social Contribution Case | Voluntary Blood Donation
Juhua Corporation actively promotes a culture of public welfare and social responsibility, engaging in charitable donations and sharing
development with society. It continues to invest in areas including community development, education support, emergency relief, Juhua Corporation regularly organizes employees to participate in voluntary blood donation programs, supporting public healthcare needs. These
environmental protection, cultural and sports initiatives. The Company also encourages employees to participate in volunteer activities activities reflect employees’ strong sense of social responsibility and commitment to contributing to society.
such as blood donation, and tree planting, fostering a strong spirit of volunteerism and contributing to community well-being and social
harmony.
Case | Educational Support and Paired Assistance
The trade union of the Chlor-Alkali New Materials
Business Unit actively organizes employees to
participate in educational support programs. Under the
theme “Books Build Dreams, Walking Together for
Good”, the initiative mobilized employees’ families to
donate books, donated over 1,000 books to Duze
Primary School and 53 students in need, provided
stationery and care packages. Additionally, the trade
union organized paired assistance for 3 underprivileged
children, providing educational and daily necessities and
financial aid totaling RMB 1,800. This initiative effectively
alleviated educational cost burdens and supported
student development.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Key Performance Indicators 1 Energy Management
Total Energy Consumption 10,000 tce 133.65 147.82 137.28
Economic Performance Total Direct Energy Consumption 10,000 tce 5.95 10.94 7.46
Coal tonnes 526,838.00 506,253.00 457,237.00
Indicator Unit 2025 2024 2023
Natural Gas 10,000 m? 7,964.40 9,107.05 6,348.22
Revenue RMB 100 million 269.91 244.63 206.55
Gasoline tonnes 27.08 25.79 16.37
Revenue from Core Operations RMB 100 million 238.58 207.63 169.16
Diesel tonnes 4.56 4.11 3.26
Total Assets RMB 100 million 382.08 285.24 234.84
Lubricating Oil tonnes 89.50 94.00 78.00
Current Ratio % 1.24 1.46 1.44
Total Indirect Energy Consumption 10,000 tce 127.69 136.87 129.82
Net Profit Attributable to Shareholders
of the Listed Company RMB 100 million 37.83 19.47 9.43
Purchased Electricity MWh 2,799,967.83 3,097,353.47 2,888,956.69
Total Taxes Paid RMB 100 million 17.32 7.40 7.97
Purchased Heat GJ 14,127,561.09 14,340,929.90 14,006,144.73
Asset-Liability Ratio % 38.48 32.43 29.84
Energy Intensity tce / RMB 10,000 revenue 0.50 0.60 0.66
Weighted Average Return on Equity (ROE) % 19.52 11.52 5.99
Total Clean Energy Consumption MWh 489,000.00 625,112.00 63,000.00
Cash Dividends Attributable to the Reporting Year RMB 10,000 62,094.16 29,697.21 72,893.14
Solar Power Generation MWh 344,000.00 473,158.00 63,000.00
Social Contribution per Share RMB 2.91 1.79 1.29
Wind Power Generation MWh 145,000.00 151,954,.00 /
Environmental Performance Proportion of Clean Energy Consumption % 16.21 19.87 2.15
Green Electricity Certificates Purchased MWh 410,000 531,120 16,992
Indicator Unit 2025 2024 2023
Climate Change
Environmental Management
Total Greenhouse Gas (GHG) Emissions 2 tCO₂e 6,137,996.35 6,643,649.67 6,196,018.09
Total Environmental Protection Investment RMB 10,000 20,000.00 24,000.00 15,000.00
GHG Emissions Intensity (Scope 1&2) tCO₂e / million RMB revenue 227.40 271.59 299.98
Environmental Investment as % of Operating Revenue % 0.74 0.98 0.73
Direct GHG Emissions (Scope 1) tCO₂e 3,095,471.09 3,341,540.96 3,046,771.08
Environmental Non-compliance Incidents cases 0 0 0
Indirect GHG Emissions (Scope 2) tCO₂e 3,042,387.80 3,302,108.70 3,149,247.00
Compliance Rate of “Three Simultaneities” for % 100 100 100
Environmental Protection Facilities Other Indirect GHG Emissions (Scope 3) tCO₂e 137.46 / /
Number of Environmental Administrative Penalties cases 0 0 0
Number of Products with Carbon
Footprint Certification units 12 3 0
Amount of Environmental Administrative Penalties RMB 10,000 0 0 0
Number of Environmental Training Sessions sessions 36 36 30
Number of Participants in Environmental Training person-times 8,286 7,806 4,600
Scope 1 and Scope 2 GHG emissions cover the following entities: Sulfuric Acid Plant, Electrochemical Plant, Juhua Chinlon Company, Jusu Chemicals Company, Tianjin Barrier Company,
Quhua Fluorine Company, Chuangfu High-Tech Company, Fluorine New Chemical Company, Jusheng Fluorine Chemicals, Lianzhou Refrigerant Company, Ningbo Juhua Company, Lanxi
Fluorine Chemicals Company, Jinju Chemicals Company, Feiyuan Chemical Company, Ningbo Juxie Company, Jubang High-Tech Company, Juhua Hong Kong Company, Jian’an
Petrochemical Engineering Company, Technology Center Company, Global Fluorine Company, Middle East Trading Company, Juhui Company, and New Materials Research Institute
Company.
calculation methodologies. Scope 3 GHG emissions are disclosed for the first time in the current reporting period and cover employee commuting emissions at the headquarters of Juhua Corporation.
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Indicator Unit 2025 2024 2023
Social Performance
Water Resource Management Indicator Unit 2025 2024 2023
Municipal Water Withdrawal 10,000 tonnes 2,130.29 2,508.58 2,642.30
Employees
Total Water Withdrawal 10,000 tonnes 2,130.29 2,508.58 2,642.30
Total Number of Employees persons 9,093 8,409 7,197
Water Withdrawal Intensity tonnes / RMB 10,000 revenue 7.89 10.25 12.79
Number of New Employees persons 700 367 314
Total Water Consumption 10,000 tonnes 1,557.15 1,922.37 2,062.59
Number of Dispatch Workers persons 654 704 664
Water Consumption Intensity tonnes / RMB 10,000 revenue 5.77 7.86 9.99
Number of Part-time Employees persons 0 0 0
Wastewater Discharge 10,000 tonnes 573.14 586.21 579.71
Labor Contract Signing Rate % 100 100 100
Reclaimed Water Reuse 10,000 tonnes 320.00 320.00 320.00
Incidents of Child Labor cases 0 0 0
Recycled Water Volume 10,000 tonnes 56,985.26 65,290.95 58,806.46
Complaints of Forced Labor cases 0 0 0
Water Recycling Rate % 96.30 96.30 95.70
Incidents of Labor Discrimination cases 0 0 0
Pollutants and Waste Management
Number of Employees with Disabilities persons 131 137 137
Wastewater Discharge Volume tonnes 5,731,396.00 5,862,095.00 5,797,106.00
Number of Ethnic Minority Employees persons 181 163 142
tonnes / RMB 10,000
Wastewater Discharge Intensity 1.99 2.50 3.01
industrial output Ethnic Minority Employees in Management persons 6 5 5
Chemical Oxygen Demand (COD) tonnes 251.80 275.10 273.35
Employees by Region
Ammonia Nitrogen (NH?-N) tonnes 7.68 12.57 4.81
Mainland China persons 9,093 8,409 7,197
Nitrogen Oxides (NOx) 3 tonnes 143.14 169.24 138.95
Hong Kong, Macau and Taiwan persons 0 0 0
Sulfur Dioxide (SO₂) 4 tonnes 42.82 47.44 35.34
Overseas persons 0 0 0
Volatile Organic Compounds (VOCs) tonnes 660.66 686.11 708.34
Employees by Gender
Non-hazardous Waste Generated tonnes 244,159.84 279,306.08 247,381.69
Female persons 1,867 1,680 1,464
tonnes / RMB 10,000
Non-hazardous Waste Intensity 0.09 0.12 0.13
industrial output Male persons 7,226 6,729 5,733
Hazardous Waste Generated tonnes 24,942.29 29,396.49 30,030.39
Employees by Job Category
tonnes / RMB 10,000
Hazardous Waste Intensity 0.009 0.013 0.016
industrial output Skilled Workers persons 6,611 5,522 4,875
Comprehensive Utilisation of Solid Waste tonnes 240,684.72 276,223.07 247,987.32
Professional and Technical Staff persons 1,899 2,367 1,751
Solid Waste Utilisation Rate % 98.69 98.07 97.34
Management Personnel persons 583 520 571
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Indicator Unit 2025 2024 2023 Employee Turnover by Gender
Female persons 102 130 134
Employees by Age
Under 30 (excluding 30) persons 2,200 1,319
Employees by Education Level
Doctoral Degree persons 21 25 21
Employee Turnover Rate % 3.41 4.88 4.73
Master’s Degree persons 203 200 150
Training and Development
Bachelor’s Degree persons 3,398 2,460 2,032
Training Investment RMB 10,000 717.27 392.46 530.05
Associate Degree persons 2,741 2,900 2,381
Number of Training Sessions sessions 3,375 2,777 2,015
Below Associate Degree persons 2,730 2,824 2,613
Total Number of Employees Trained persons 5,457 4,902 4,303
New Employees by Gender
Total Training Attendance person-times 78,827 73,433 45,600
Female persons 179 83 63
Training Coverage % 100 100 100
Male persons 521 284 251
Total Training Hours hours 40,918.5 36,158 29,870
New Employees by Recruitment Channel
Occupational Health and Safety
Social Recruitment persons 166 70 60
Number of Major and Above Accidents cases 0 0 0
Campus Recruitment persons 534 297 254
Other Recruitment Channels persons 0 0 0 Number of Work-related Injuries persons 1 3 9
Proportion of Female Employees in Total Recordable Incident Rate
% 10.45 11.35 11.21 / 0.044 0.088 0.165
Management (per 200,000 working hours)
Proportion of Female Employees in Lost Time Injury Rate
Professional and Technical Roles % 25.62 19.35 20.33 / 0.011 0.034 0.102
(per 200,000 working hours)
Proportion of Female Employees in
Skilled Worker Roles % 20.40 20.51 14.95 persons 0 0 0
Work-related Fatalities
Social Insurance Coverage Rate % 100 100 100
Fatality Rate % 0 0 0
Employee Benefits Expenditure RMB 10,000 10,832.75 10,682.06 10,177.65
Hazard Rectification Rate % 100 100 100
Statutory Benefits Expenditure RMB 10,000 3,620.85 3,500.29 2,777.54
Safety Investment RMB billion 1.29 1.12 0.97
Average Number of Paid Annual
Leave Days per Employee days 10 10 11
Occupational Disease Cases persons 0 0 0
Employee Satisfaction % 84.90 84.80 84.75
Occupational Disease Rate % 0 0 0
Number of Employee Turnover persons 311 369 354
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Indicator Unit 2025 2024 2023 Innovation Capability Certifications
“Specialized, Refined, Distinctive and
units 6 5 3
Safety Training Participation person-times 9,196 7,313 7,679 Innovative” Enterprises
National High-tech Enterprises units 13 12 11
Safety Training Coverage % 100 100 100
Nationally Recognised Enterprise
units 1 1 1
Safety Risk Training Coverage % 100 100 100 Technology Centers
Product and Service Quality
Work Injury Insurance Expenditure RMB million 1,898.90 1,805.51 1,192.18
Product Qualification Rate % 99.99 99.99 99.99
Work Injury Insurance Coverage % 100 100 100
Internal Quality Audits times 1 1 1
Occupational Health Examination Coverage % 100 100 100
Third-party Inspection Frequency times 63 71 78
Research and Innovation
Product Recall Rate % 0 0 0
R&D Investment RMB 10,000 112,035 105,415 100,070
Number of Products Recalled units 0 0 0
R&D Investment as % of Revenue % 4.70 4.31 4.85
Quality Culture Training Participation person-times 170 54 50
Climate-related R&D Investment Ratio % 2.57 2.51 2.95
Total Training Hours on Quality Culture hours 24 6 6
R&D Team
Customer Rights Protection
Total R&D Personnel persons 1,062 898 734
Number of Customer Complaints cases 30 35 36
R&D Personnel Ratio % 11.68 10.67 10.19
Number of Complaints Resolved cases 30 35 36
Change in R&D Personnel % 18.26 18.82 /
Customer Satisfaction % 89.64 89.73 89.73
Below Bachelor’s Degree persons 334 235 208
Responsible Marketing Training Participation person-times 330 388 419
Bachelor’s Degree persons 574 516 405
Total Training Hours on Responsible Marketing hours 154 65 71
Master’s Degree persons 136 122 100
Number of Responsible Marketing Training
Sessions times 55 23 25
Doctoral Degree (PhD) persons 18 25 21
Customer Service Training Participation person-times 200 200 150
Postdoctoral Workstations units 2 2 2
Total Training Hours on Customer Service hours 20 18 12
Innovation Outputs
Number of Customer Service Training Sessions times 16 14 9
Cumulative Number of Granted Patents units 970 893 801
Number of Customer Complaint Response
Assessments times 15 6 3
Total Number of Valid Patents units 820 743 651
Number of Customer Data Breach Incidents cases 0 0 0
Newly Granted Patents During the Year units 77 92 131
Supply Chain Management
Cumulative Number of Invention Patents units 668 610 559
Total Number of Suppliers units 3,429 3,183 2,842
Cumulative Number of Utility Model Patents units 283 264 224
Number of Suppliers in Mainland China units 3,396 3,163 2,824
Cumulative Number of Design Patents units 19 19 18
Number of Suppliers in Hong Kong, Macau
units 4 3 1
and Taiwan
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Number of Overseas Suppliers units 29 17 17
Indicator Index Table
Number of Suppliers Assessed units 268 312 290
Proportion of Suppliers Signing Integrity
Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed
Agreements % 100 100 100
Companies—Sustainability Report (Trial) Index Table
Proportion of Procurement Expenditure
from Local Suppliers % 40.76 38.58 40.76
Disclosure Disclosure
Corresponding Section Corresponding Section
Requirement Requirement
Information Security and Privacy Protection
Addressing Climate Change and Advancing Article 38 Community Contribution
Number of Information Security and Privacy Low-Carbon Development
sessions 1 1 1 Article 20
Training Sessions Resource Utilization and Ecosystem Protection
Number of Participants in Training and Community Contribution
persons 51 50 50
Awareness Activities Addressing Climate Change and Advancing Article 39 Key Performance Indicators
Article 21
Employee Coverage of Training and Low-Carbon Development
% 100 100 100
Awareness Activities 5
Addressing Climate Change and Advancing Community Contribution
Article 22 Article 40 Key Performance Indicators
Community Investment and Rural Revitalisation Low-Carbon Development
Total Charitable Contributions RMB 10,000 134 308 87 Addressing Climate Change and Advancing Article 41 Innovation-Driven Development
Article 23
Low-Carbon Development
Investment in Rural Revitalisation RMB 10,000 220 150 180 Article 42 Innovation-Driven Development
Addressing Climate Change and Advancing
Article 24 Low-Carbon Development
Key Performance Indicators Article 43 N/A
Governance Performance Addressing Climate Change and Advancing Customer Relationship Management
Article 25 Low-Carbon Development Article 44 Product Quality
Key Performance Indicators Resilient Supply Chain
Indicator Unit 2025 2024 2023
Addressing Climate Change and Advancing Article 45 Resilient Supply Chain
Article 26
Low-Carbon Development
Compliance and Business Ethics
Article 46 Resilient Supply Chain
Addressing Climate Change and Advancing
Article 27
Anti-bribery and Anti-corruption Training Low-Carbon Development
Article 47 Product Quality
Total Number of Directors Trained persons 12 12 12 Addressing Climate Change and Advancing
Article 28 Low-Carbon Development Information Security
Clean Technology Opportunities Article 48 Customer Relationship Management
Percentage of Directors Trained % 100 100 100
Average Training Hours per Director hours/person 1.5 1.5 1.5 Article 29 Environmental Compliance Management Employee Rights and Benefits
Article 49 Talent Development and Growth
Total Number of Management Personnel Occupational Health and Safety
Trained persons 583 520 571 Pollution Prevention and Control
Article 30 Key Performance Indicators
Percentage of Management Personnel Trained % 100 100 100 Employee Rights and Benefits
Article 50 Talent Development and Growth
Article 31 Pollution Prevention and Control Occupational Health and Safety
Total Number of Employees Trained persons 9,093 8,409 7,197
Article 32 Resource Utilization and Ecosystem Protection Article 51 ESG Governance
Percentage of Employees Trained % 100 100 100
Signing Rate of Business Ethics and Article 33 Environmental Compliance Management Article 52 ESG Governance
Integrity Commitments % 100 100 100
Number of Whistleblowing Cases Related Article 34 Resource Utilization and Ecosystem Protection Article 53 ESG Governance
to Corruption cases 0 0 0
Number of Concluded Legal Cases Related Article 35 Resource Utilization and Ecosystem Protection Article 54 Business Ethics
to Corruption cases 1 0 0
Article 36 Resource Utilization and Ecosystem Protection Article 55 Business Ethics
Resource Utilization and Ecosystem Protection Article 56 Business Ethics
Article 37
Pollution Prevention and Control
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
China Enterprise Sustainability Reporting Guidelines (CASS-ESG 6.0) – General Sustainable Governance Mechanisms (G1.1) ESG Governance
Framework Index Table Sustainability-Rela
ted Governance Due Diligence (G1.2) ESG Governance
Mechanisms (G1)
CASS Topic Disclosure Corresponding Section Stakeholder Communication (G1.3) ESG Governance
Governance
Quality Assurance (P1.1) About This Report (G) Anti-Bribery and Anti-Corruption (G2.1) Business Ethics
Reporting Norms (P1)
Information Notes (P1.2) About This Report Business Conduct Anti-Unfair Competition (G2.2) Business Ethics
(G2)
Executive Statement (P2) Executive Statement (P2.1) Message from the Chairman Risk and Compliance Management (G2.3) Risk Prevention and Control
Basic Information (P3.1) About Juhua Corporation Key Performance Indicators（A2） Key Performance Indicators
Report Preface
(P) Strategy and Culture (P3.2) About Juhua Corporation Indicator Index (A3) Indicator Index Table
Report -
Company Profile (P3) Business Overview (P3.3) About Juhua Corporation Postscript Assurance Report (A4) Assurance Report
Significant Changes in Organizational Size, Feedback (A6) Feedback Form
Structure, Ownership, or Supply Chain During About Juhua Corporation
the Reporting Period (P3.4)
Climate Change
Response (E1)
Climate Change Response (E1.1)
Addressing Climate Change and 1.1.3.GRI Standards 2021 Index Table
Advancing Low-Carbon Development
Environmental Compliance Management
Pollutant Emissions (E2.1) Disclosure Corresponding Section
Pollution Prevention and Control GRI Topic
Pollution Waste Management (E2.2) Pollution Prevention and Control Company Overview, Business Overview, Corporate
Prevention and 2-1 Organizational details
Ecosystem Culture, Honors and Awards
Protection (E2) Ecosystem and Biodiversity Conservation (E2.3) Resource Utilization and Ecosystem Protection
reporting About This Report
Environmental Environmental Compliance Management（E2.4） Environmental Compliance Management
(E)
Energy Utilization (E3.1) Resource Utilization and Ecosystem Protection
Resource 2-4 Restatements of information N/A
Utilization and Water Resource Utilization (E3.2)
Circular Economy Resource Utilization and Ecosystem Protection
(E3) 2-5 External assurance Assurance Report
Circular Economy (E3.3) Pollution Prevention and Control
Company Overview
Business Overview
Rural Revitalization (S1.1) relationships
Rural Revitalization Community Contribution Resilient Supply Chain
and Social
Contribution (S1) Social Contribution (S1.2) 2-7 Employees Employee Rights and Benefits
Community Contribution GRI 2：
General Disclosures 2021
Innovation-Driven Innovation-Driven Development (S2.1) Employee Rights and Benefits,
Development（S2） Innovation-Driven Development 2-8 Workers who are not employees
Resilient Supply Chain
Supply Chain Security (S3.1) Resilient Supply Chain 2-9 Governance structure and composition Corporate Governance
Equal Treatment of Small and Medium
Enterprises (S3.2) Resilient Supply Chain 2-10 Nomination and selection of the highest
Social Suppliers and Corporate Governance
governance body
(S) Customers (S3)
Product and Service Safety and Quality (S3.3) Product Quality
Data Security and Customer Privacy
Protection (S3.4) Information Security 2-12 Role of the highest governance body in overseeing
Corporate Governance
the management of impacts
Employee Rights Protection (S4.1) Employee Rights and Benefits
Employees (S4) Occupational Health and Safety (S4.2) Occupational Health and Safety
ESG Governance
sustainability reporting
Career Development and Training (S4.3) Talent Development and Growth
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
GRI Topic Disclosure Corresponding Section
GRI 207：Tax 2019
ESG Governance
Corporate Governance, ESG Governance Pollution Prevention and Control
body
Corporate Governance
governance body
Addressing Climate Change and Advancing
Low-Carbon Development
GRI 302：Energy 2016 302-3 Energy intensity Resource Utilization and Ecosystem Protection
Corporate Governance, Employee Rights and
Benefits
Resource Utilization and Ecosystem Protection
GRI 2： 302-5 Reductions in energy requirements of products Resource Utilization and Ecosystem Protection
General Disclosures 2021 See respective sections and services
Resource Utilization and Ecosystem Protection
ESG Governance, Risk Prevention and Control, 303-2 Management of water discharge-related impacts
Business Ethics
GRI 303：
Water and Effluents 2018 303-3 Water withdrawal Resource Utilization and Ecosystem Protection
ESG Governance
concerns
adjacent to protected areas and areas of high Resource Utilization and Ecosystem Protection
GRI 304： biodiversity value outside protected areas
Biodiversity 2016
Resource Utilization and Ecosystem Protection
GRI 3： services on biodiversity
Material Topics 2021
Addressing Climate Change and Advancing
GRI 201：Economic Low-Carbon Development
Performance 2016 201-2 Financial implications and other risks and Addressing Climate Change and Advancing
opportunities due to climate change Low-Carbon Development Addressing Climate Change and Advancing
Low-Carbon Development
GRI 305：
GRI 203：Indirect Addressing Climate Change and Advancing
Economic Impacts 2016 305-4 GHG emissions intensity
GRI 204：Procurement Resilient Supply Chain Addressing Climate Change and Advancing
Practices 2016 Low-Carbon Development
Pollution Prevention and Control
other significant air emissions
GRI 205： Business Ethics
anti-corruption policies and procedures 306-1 Waste generation and significant waste-related
Anti-corruption 2016 Pollution Prevention and Control
impacts
Business Ethics GRI 306：Waste 2020
taken 306-2 Management of significant waste-related impacts Pollution Prevention and Control
GRI 206：Anti-competitive 206-1 Legal actions for anti-competitive behavior, 306-3 Waste generated Pollution Prevention and Control
Business Ethics
Behavior 2016 anti-trust, and monopoly practices
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
GRI 409：Forced or 409-1 Operations and suppliers at significant risk for
GRI Topic Disclosure Corresponding Section Compulsory Labor 2016 incidents of forced or compulsory labor
Employee Rights and Benefits
Community Contribution
GRI 306：Waste 2020 impact assessments, and development programs
GRI 413：
Community Contribution
negative impacts on local communities
Resilient Supply Chain
GRI 308：Supplier environmental criteria
Environmental 414-1 New suppliers that were screened using social
Resilient Supply Chain
Assessment 2016 criteria
Resilient Supply Chain
chain and actions taken Social Assessment 2016
Resilient Supply Chain
actions taken
GRI 401：
Employment 2016 416-1 Assessment of the health and safety impacts of
Employee Rights and Benefits product and service categories
not provided to temporary or part-time employees GRI 416：Customer
Health and Safety 2016
Occupational Health and Safety health and safety impacts of products and services
system
Occupational Health and Safety and labeling Management
incident investigation
GRI 417：Marketing 417-2 Incidents of non-compliance concerning product Product Quality、Customer Relationship
and Labeling 2016 and service information and labeling Management
Occupational Health and Safety 417-3 Incidents of non-compliance concerning Product Quality、Customer Relationship
communication on occupational health and safety
marketing communications Management
GRI 403：Occupational 403-5 Worker training on occupational health and safety Occupational Health and Safety
GRI 418： 418-1 Substantiated complaints concerning breaches of
Health and Safety Customer Relationship Management
Customer Privacy 2016 customer privacy and losses of customer data
and safety impacts directly linked by business Occupational Health and Safety
relationships
Occupational Health and Safety
safety management system
GRI 404： Talent Development and Growth
transition assistance programs
Training and
Education 2016
Talent Development and Growth
performance and career development reviews
GRI 405：Diversity and
Equal Opportunity 2016
GRI 406： 406-1 Incidents of discrimination and corrective actions
Employee Rights and Benefits
Non-discrimination 2016 taken
GRI 407：Freedom 407-1 Operations and suppliers in which the right to
of Association and freedom of association and collective bargaining may be Employee Rights and Benefits
Collective Bargaining 2016 at risk
GRI 408： 408-1 Operations and suppliers at significant risk for
Employee Rights and Benefits
Child Labor 2016 incidents of child labor
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Independent Assurance Statement Assurance Conclusion
Based on the procedures performed, we have reached the following conclusions regarding Juhua Corporation’s adherence to AA1000
Lianhe Equator Environmental Impact Assessment Co., Ltd. (hereinafter referred to as “Lianhe Equator” or “we”) was commissioned by Zhejiang principles and the reliability and quality of selected performance information:
Juhua Co., Ltd. (hereinafter referred to as “Juhua Corporation” or “the Company”) to conduct an independent limited assurance engagement on
• Inclusivity：Juhua Corporation has identified key stakeholders, including government and regulatory authorities, shareholders and
the Zhejiang Juhua Co., Ltd. 2025 Sustainability Report (hereinafter referred to as “the Report”).
investors, customers, employees, suppliers, partners, communities and society, and media. The Company has established
Juhua Corporation’s responsibility is to cooperate with the Lianhe Equator assurance team by providing due diligence support, including relevant communication and response mechanisms tailored to different stakeholders to collect their expectations and concerns.We conclude
data, information, and institutional documents for this assurance engagement, and ensuring that such information is true and valid. that Juhua Corporation complies with the principle of Inclusivity.
Lianhe Equator’s responsibility is to conduct the assurance within the agreed scope of authority and issue an assurance statement. • Materiality：Juhua Corporation has established a materiality assessment process. Based on its business characteristics and industry
trends, and through stakeholder engagement, ESG topics were systematically evaluated from both financial materiality and impact
Assurance Standards materiality perspectives. A total of 27 ESG topics were identified and a materiality matrix was developed.We conclude that Juhua
Corporation complies with the principle of Materiality.
This assurance engagement was conducted in accordance with the AA1000 Assurance Standard v3 (AA1000AS v3) to assess the Report’s
• Responsiveness：Juhua Corporation has established multi-dimensional communication channels and maintains regular or ad hoc
adherence to the four principles of Inclusivity, Materiality, Responsiveness, and Impact.
engagement with stakeholders, continuously responding to their expectations. The Company has also disclosed key stakeholder
In addition, based on the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 – Sustainability Reports (Trial) concerns in the Report, including climate change, chemical safety, product and service safety and quality, sustainability governance,
(hereinafter referred to as the “Guidelines”), limited assurance was performed on the reliability and quality of selected performance information waste management, occupational health and safety, employee training and development, and innovation.We conclude that Juhua
disclosed in the Report. Corporation complies with the principle of Responsiveness.
• Impact：Juhua Corporation has established an ESG governance framework featuring:①Strategic leadership at the Board level .②
Assurance Scope Oversight by the Strategy and ESG Committee .③Coordination at the management level .④Implementation by ESG working groups
• The assurance period covers January 1, 2025 to December 31, 2025; This forms a closed-loop governance system. The Company also integrates ESG-related risks and opportunities into its strategy and daily
• The scope of information is limited to sustainability-related information included in the Report, excluding information relating to suppliers, operations. It assesses the impacts on strategy, reputation, operations, and business, sets targets for key topics such as climate change,
partners, and other third parties. The organization’s positions, opinions, forward-looking statements, and forecasts are also excluded; waste management, and occupational health and safety, and discloses relevant practices and progress. We conclude that Juhua
Corporation complies with the principle of Impact.
• The assurance follows AA1000AS v3, with Type 2 assurance and a moderate level of assurance;
• SSE Guidelines
• The following specific performance indicators were selected for assurance:
The Report has established a sustainability disclosure framework in accordance with the Guidelines. Considering industry characteristics,
data. Recommendations for improvement have been adopted or explained prior to the issuance of this assurance statement.
• Selected Performance Indicators
Based on the procedures performed and evidence obtained, we did not identify any matters that would lead us to doubt the reliability
Assurance Methodology and quality of the selected performance data.
The assurance work conducted by Lianhe Equator mainly included: Competence and Independence Statement
• Reviewing sustainability-related information disclosed in the Report;
Lianhe Equator was established in 2015 and is a registered green bond verification and certification body approved by the Green Bond Standard
• Conducting sample interviews with management personnel and staff responsible for performance data measurement and collection; Committee. It is also licensed by AccountAbility AA1000 CIC as a sustainability assurance provider and has extensive experience in assurance and
• Reviewing and inspecting management practices, business processes, and supporting evidence; certification.Members of the Lianhe Equator assurance team possess the professional competence and experience required for this
engagement, comply with the AA1000AS v3 Code of Conduct, and follow the Lianhe Equator Sustainability Assurance Procedures.There are no
• Verifying the completeness and effectiveness of data sources, collection processes, processing methods, and internal review mechanisms
relationships between Lianhe Equator and Juhua Corporation that would impair the independence, objectivity, or impartiality of this assurance
for performance information;
engagement.
• Collecting and evaluating evidence and management representations supporting the organization’s adherence to AA1000 principles.
Limitations
The assurance procedures involved sampling and calculation of selected information only, and therefore may not identify all potential
deficiencies or irregularities.
Executive President Tel: 022-58356831 / 022-58356999
Lianhe Equator Environmental Impact Assessment Co., Ltd. Website: www.lheia.com
March 25, 2026, Tianjin, China Address: 6th Floor, Lianhe Credit Building, No. 80 Qufu Road, Heping District, Tianjin
Zhejiang Juhua Co., Ltd. 2025 Sustainability Report
Feedback Form
Dear Reader,
Thank you for reviewing this report. We highly value and sincerely welcome your feedback.
Your comments and suggestions are an important basis for us to continuously improve our ESG disclosure quality and enhance our ESG
management and practices. We greatly appreciate your valuable input.
If you have any comments or suggestions regarding the Company’s sustainable development, please feel free to contact us at: jhgf@juhua.com.
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