Hangzhou Hua Guang Advanced Welding Materials Corporation Limited
No.8 Fengyun Road, Yuhang Economic Development Zone, Yuhang District, Hangzhou, Zhejiang, China
No.82 Qihang Road, Renhe Street, Yuhang District, Hangzhou, Zhejiang, China
(ESG) Report
Sale’s Of?ce：(+86)571-88779191 / 88777528 Hangzhou Hua Guang Advanced Welding Materials Co., Ltd.
Company Of?cial Wechat Account
HUA
GUANG
ADVANCING INDUSTRIAL CONNECTIVITY AND
BUILDING A SHARED VALUE
CREATION ACROSS INDUSTRIAL CHAIN
Deepening Environmental Performance Report 63
About This Report 03 Management 17
TABLE OF CONTENT
Economic Performance 63
Reporting Scope 03 Strictly Upholding the Compliance 19 Environmental Performance 63
Baseline
Preparation Principles 03 Social Performance 65
Addressing Climate Change 20
Data Statement 03 Governance Performance 69
Improving Resource Ef?ciency 23
Access to the Report 03
Controlling Pollutant Emissions 24
Feedback 03
Promoting Circular Development 26
Protecting Biodiversity 28
Chairwoman 04
Shanghai Stock Exchange
About Hua Guang 05 Ful?lling Social Self-Regulatory Guidelines
Responsibility 29 No. 14 for Listed
Companies — Sustainability
Company Pro?le
Safeguarding Occupational Health 31
Report (Trial) Index 70
Company Culture 05
Empowering Employee Development 37
Honors and Recognition 06
Global Reporting Initiative (GRI
Continuing to Contribute to Society 43
Standards 2021) 71
Advancing Sustainable Upholding the Quality Assurance Line 46
Development 07 Customer Service and Information 48
Security
ESG Development Policy 07 Building a Balanced Supply Ecosystem 50
ESG Governance System 08
Materiality Analysis 09
Improving Corporate
Stakeholder Engagement and Due Diligence 10
Governance 53
Special Topic Three Decades of Technological Advancing the Governance System 55
Innovation, Intelligent Upholding Integrity 58
Manufacturing for the Future 11 Strengthening Internal Control and 60
Compliance
Thirty Years of Technological Innovation, 11
Paint the future with Steady Development Improving Risk Management 62
Strengthening the Foundation Through R&D 13
System Development
Technological Breakthroughs and Intelligent 15
Manufacturing Upgrades
About This Report Chairwoman
Hangzhou Hua Guang Advanced Welding Materials Co., Ltd.(hereinafter referred to as“Hua Guang”, the“Company”, or“we”) has On behalf of the Board of Directors of Hua Guang Advanced Welding Materials Co., Ltd., I
published annual Social Responsibility / Environmental, Social and Governance (ESG) reports since 2018. The purpose is to integrate would like to extend my sincere gratitude to all stakeholders for your long-standing atten-
sustainable development into corporate governance and present ESG practices and performance to stakeholders. tion to and support for the Company’s development and its sustainable development
endeavors.
At present, the global manufacturing industry is accelerating its transformation toward low-carbon and intelligent development. Guided by
the philosophy of“Safeguarding Green Industry through Welding and Connecting a Sustainable Future,” Hua Guang integrates ESG princi-
ples across the entire value chain, including research and development, production, supply chain, and customer service. Through concrete
Reporting Scope actions, we actively full?ll our social responsibilities and support a low-carbon industrial ecosystem. We are pleased to of?cially release
our ESG Report, presenting to all caring and supportive partners our re?ections, practices, and explorations in sustainable development,
Organizational Scope: unless otherwise speci?ed, this report covers Hangzhou Hua Guang Advanced Welding Materials Co., Ltd. and its
showing our commitment to advancing green connectivity and empowering advanced manufacturing.
wholly owned subsidiaries, consistent with the consolidated ?nancial statements.
Time Scope: January 1, 2025 to December 31, 2025 (“Reporting Period”). Some content extends beyond this period. Strengthening Governance, Building A Strong Foundation For Sustainable Growth. We continue to optimize our corporate governance
Reporting Cycle: Annual. Last report released April 3, 2025. structure. We have established an effective, independent, and diverse Board of Directors, and improved the performance of Board commit-
tees and independent directors. Following the “prevention-?rst” principle, we reinforce the foundation of business compliance, promote
the orderly implementation of internal control evaluations, and improve the “three lines of defense” risk management system. We fully
leverage the independent oversight role of internal audit to ensure the Company’s high-quality and sustainable development.
Driving Innovation and Industrial Upgrading. We remain committed to our technological innovation strategy of “developing current
Preparation Principles capabilities, preparing for future technologies, and leading industry advancement.” We continue to integrate multiple R&D resources and
Shanghai Stock Exchange Guidelines No.14 — Sustainability Report (Trial) work toward building a ?rst-class R&D team. In 2025, we further deepened industry-academia-research collaboration, working with
Global Reporting Initiative (GRI) Standards renowned universities. We have lead or participated in the formulation of six national standards and two industry association standards.
UN 2030 Sustainable Development Goals We were successfully selected as a pilot enterprise for Zhejiang Province’s “Future Factory” program in 2025 and passed the evaluation
for Hangzhou Smart Factory. Our Green High-Fluidity Flux-Cored Silver Brazing Filler Metal was included in the Zhejiang Province Green and
Low-Carbon Technology Promotion Catalogue (2025 Edition), leveraging technological innovation to drive low-carbon industrial upgrading.
Advancing Green and Low-Carbon Development. We consistently prioritize environmental protection, steadily increase environmental
investment, and strengthen climate risk management while steadily advancing carbon reduction and veri?cation initiatives. We have
Data Statement completed the Phase II solar photovoltaic power generation project in Renhe, further optimizing our energy structure. We also actively
participate in green electricity trading and drive photovoltaic power generation, achieving a green electricity usage ratio of 69%. We contin-
The data and case studies disclosed in this report are derived from the of?cial documents and statistical reports of the Company
ue to advance water resource management and waste recycling efforts, improving resource utilization ef?ciency. Hua Guang has obtained
and its subsidiaries. Unless otherwise speci?ed, all monetary amounts presented in this report are denominated in Renminbi
ISO 14001 Environmental Management System certi?cation and has been recognized as a national-level Green Factory, demonstrating our
(RMB).
commitment to protecting the ecological environment through tangible actions.
Putting people ?rst to Unite Development Strength. We are committed to a “people-oriented” development approach. We have conduct-
ed in-depth inspections for production safety risks and improved occupational health management. No major safety accidents or occupa-
tional disease incidents occurred throughout the year. We continue to enhance our compensation and bene?ts framework to better
Access to the Report engagement and motivate our employees. Through the implementation of the “Si Hua Plan”, we have built talent development program
to drive both individual growth and organizational development. In addition, we provide supportive working facilities and diverse culture
As an independent Environmental, Social and Governance (ESG) report, this report is available in both Chinese and English versions for
and sports activities to ensure that every Hua Guang employee feels valued and supported.
readers’reference. The electronic version of this report can be downloaded from the Shanghai Stock Exchange website (http://ww-
w.sse.com.cn/) and the of?cial website of Hangzhou Hua Guang Advanced Welding Materials Co., Ltd. (https://www.cn-huaguang.com/- Full?ll Social Responsibilities to Deliver Value to Society. We are committed to act as a responsible corporate citizen, taking proactive and
Investor.html). responsible actions. In rural revitalization, we actively support local development initiatives and contribute to shared prosperity through
targeted programs. In the ?eld of social welfare, we give back to society with compassion through a serious of programs such as event
sponsorship, school donations, and volunteer services. In 2025, charitable donations exceeded RMB 900,000, and investments in rural
revitalization initiatives exceeded RMB 400,000. In community development, we pursue mutual growth with local communities by promot-
ing income growth through local procurement and enhancing regional workforce competitiveness through local employment and job
Feedback training, achieving synchronized progress between corporate development and community prosperity.
If you have any questions or feedback regarding this report and its contents, please feel free to contact us through the following Looking ahead, Hua Guang will continue to uphold its commitment to sustainable development, further strengthen ESG governance and
channels: practices, and drive development through responsibility and diligent execution. We will ful?ll our mission with higher standards and strive
Tel: 0571-88764399 to become a global benchmark for sustainable development in the industrial connection sector, continue to contribute Hua Guang’s
Website: https://www.cn-huaguang.com/ strength to high-quality industry development.
Email: bdo@cn-huaguang.com
Address: No. 8 Fengyun Road, Yuhang Economic Development Zone, Yuhang District, Hangzhou, Zhejiang Province, China Chairman of Hua Guang Advanced Welding Materials Co., Ltd.
About Hua Guang
Company Pro?le
Hangzhou Hua Guang Advanced Materials Co., Ltd., was established in 1995. It is a national high-tech enterprise specializing in intelligent,
ef?cient, and green welding solutions. The Company is always committed to the research and development of brazing technologies and the Wind ESG Rating
manufacturing of high-quality brazing materials. Through 30 years of continuous innovation and development, it has become a leading Honors and “Top 100 Best ESG Practices of Chinese
enterprise in China’s brazing materials industry. Recognition Listed Companies 2025” Certi?cate
Hua Guang serves as the Vice Chairman unit of the Brazing Materials, Equipment and Process Branch of the China Welding Association. It is
also a member of the Sub-Technical Committee on Brazing of the National Technical Committee on Welding Standardization, and a standing
member of the Brazing and Special Joining Committee of the Welding Institution of the Chinese Mechanical Engineering Society.
The Company operates a Zhejiang Provincial Key Enterprise Research Institute, a provincial R&D center, and a provincial technology
center. It has led or participated in the formulation of 19 national standards, 8 industry standards, and 14 group standards, and has been
granted a total of 48 invention patents, 79 utility model patents, 1 design patent and 1 U.S. patent. Hua Guang has received numerous
honors and certi?cations, including“Second Prize of the National Science and Technology Progress Award”,“National Key High-Tech
Enterprise,” “Manufacturing Single Champion Demonstration Enterprise,” “National Green Factory,”“Zhejiang Famous Trademark,” “Zheji-
ang Green and Low-Carbon Factory,” “Zhejiang Green Enterprise,”“Zhejiang Industrial Circular Economy Demonstration Enterprise,” “Zhe-
jiang Manufacturing‘Pin Mark’certi?cation” “Zhejiang
, Future Factory Pilot Enterprise,”and“Hangzhou Smart Factory.”
The Company offers core technological products such as environmentally friendly brazing materials, silver-saving brazing materials,
vacuum brazing materials, composite brazing materials, preform brazing materials, silver paste, and solder paste. It has the capability to
design and manufacture thousands of product speci?cations in various forms, including rods, wires, rings, strips, sheets, foils, powders,
cores, ?ux-coated materials, and solder pastes, forming a diversi?ed product system overing a broad and diversi?ed product portfolio.
Looking ahead, the Company aims to become a globally leading provider of functional connection materials and related solutions. In recent
years, while consolidating its leading position in medium-temperature brazing materials, the Company has actively expanded into new
technologies and products such as electronic pastes, low-temperature brazing materials, and high-temperature brazing materials, achiev- Huazheng ESG Rating “Annual Outstanding Brand”Award 2025 Yunfan Cup ? Best Thermal
ing comprehensive coverage across major categories of brazing materials and gradually accumulating successful application solutions. “Top 100 Best Improvement in ESG Ratings of at the Cooling & Heating Intelligent Management Material Supplier
Hua Guang Welding adheres to a development strategy driven by technological innovation, carrying out industry-academia-research A-share Listed Companies 2025”Certi?cate Manufacturing Awards Ceremony for Data Centers
cooperation with leading domestic universities to steadily develop new connection materials and technologies. This approach drives the
rapid development of advanced equipment manufacturing, enhances industrial connection capabilities, and achieves balanced value
across the industrial chain. Upholding the Hua Guang spirit of“Integrity, Diligence, Innovation, and Dedication,”the Company persists in
market-oriented technological innovation and strives to develop the“HUAGUANG”brand of brazing materials into a globally recognized
and preferred brand.
Company Culture
Vision Values Corporate Spirit “Talent Attraction and Recruitment Outstanding Contribution Award for Demonstration Enterprise for
Excellence Award”of Yuhang Economic High-Quality Development, Yuhang Innovative Development in
Development Zone, Zhejiang Economic Development Zone, Zhejiang Manufacturing, Yuhang District
Enhance indus t r ial conne c t ion Deliver products appreciated by cus- Integrity Diligence
capabilities and achieve balanced tomers through focus and the pursuit Innovation Dedication.
value across the industrial chain. of craftsmanship excellence.
Mission Quality Culture
Selected for the Zhejiang Province
Zhejiang Province Future Factory
Green and Low-Carbon Technology Promotion
Pilot Enterprise (2025)
Focus on customer needs, commit to intelligent, low-carbon, and ef?cient welding Focus, Standardization, Full Par- Catalogue (2025 Edition)
solutions, build a collaborative industrial chain platform, and enable customer value ticipation, Execution.
realization.
Advancing Sustainable Development ESG Strategic Pillars
Corporate Establish an ESG Committee under the Board of Directors, forming a hier-
Excellence in
Governance archical management and closed-loop execution mechanism.
Governance:
ESG Development Policy Standardization,
Compliance and Strengthen anti-corruption, business ethics, and information security to
safeguard investor rights and interests.
Risk Control
Transparency,
Performance Incorporate ESG indicators into management and departmental perfor-
and Long-Term Value
Hua Guang fully integrates ESG governance into its governance framework. Based on its positioning in brazing technology R&D and the Integration mance evaluations to ensure effective implementation of ESG strategies.
manufacturing of high-quality brazing materials, the Company has established an overarching ESG strategy, from which ESG strategic
pillars and objectives are derived. The Company is committed to achieving balanced and sustainable outcomes among economic perfor-
mance, environmental protection, and social responsibility, supporting sustainable long-term growth. ESG Strategic Targets
Overarching ESG Strategy Target 2025 Performance 2028 Goal
Empower low-carbon development and lead intelligent manufacturing, drive high-quality develop- Energy Consumption per Unit of Output (tce/RMB 1,000,000) 1.15 1.05
Sustainable
ment of advanced manufacturing through comprehensive low-carbon transformation, and strive to
Development Blueprint
become a global benchmark for sustainable development in the industrial connection sector. Carbon Emissions (tCO2e) 44,279.61 42,964.46
Focus on innovation in green connection technologies and the transformation and upgrading of Number of Green Product Technology Patents (cumulative, as of reporting period end) 45 55
intelligent manufacturing, with low-carbon innovation, low-carbon manufacturing, and responsible
ESG Mission
governance at the core, to drive value co-creation across the industrial chain and contribute to the EHS Compliance Rate (%) 100 100
achievement of the“dual carbon”goals and high-quality development.
Guided by the philosophy of“Building Green Manufacturing and Creating a Low-Carbon Future,”
Core Positioning for integrate ESG into every aspect of R&D, production, supply chain, and customer service, and strive
Sustainable Development to advance sustainable development practices across all factors, the entire industrial chain, and
the full value chain. ESG Governance System
Hua Guang has established a full-chain ESG governance system of“top-level decision-making ? mid-level execution ? grassroots imple-
ESG Strategic Pillars mentation ? supervision and improvement.”ESG principles are embedded into all business processes, including R&D, production, supply
low-carbon Develop environmentally friendly brazing materials that are lead-free, chain, and customer service, ensuring the effective implementation of the sustainable development strategy, supporting the achievement
Products cadmium-free , and low-silver, driving carbon reduction throughout the of“dual carbon”goals, and creating long-term value for stakeholders. The Company has established a three-tier ESG governance struc-
product lifecycle. ture with Decision-making level composed by Board of Directors, ESG Committee composed by the management level and execution level
low-carbon Continue building low-carbon factories and future factories, promote the formed by Board Of?ce, Audit and Legal Center, and ESG Working Group. This structure ensures the effective implementation of ESG stra-
Green Environment:
Manufacturing establishment of the ISO 50001 Energy Management System, and reduce tegic priorities. ESG performance is closely integrated with business performance and strategic development, while the Company upholds
Low-Carbon
emission intensity. the responsibility of a manufacturing single champion enterprise to promote low-carbon upgrading in the brazing materials industry and
Manufacturing and
Resource Circularity Strengthen the recycling and reuse of precious metals, improve standard- achieve coordinated development of the economy, society, and the environment.
Resource Circularity
ized disposal rates of hazardous waste, and build a“zero-waste factory.”
Communication /
Climate Action Collaborate with the industrial chain to address climate change, steadily Level Function Responsibilities
Reporting Frequency
reduce carbon emission intensity, and gradually increase the proportion
of green electricity usage. Holds ultimate responsibility for sustainable development strategy
Decision-making Board of
and information disclosure; oversees, plans, and guides the Compa- Annually
Customer Provide green connection solutions to leading customers in HVAC, power Level Directors
and electrical equipment, electronics, and new energy vehicles, support- ny’s sustainability work.
Collaboration
ing their low-carbon product upgrades.
Sustainable Value
Supply Chain Establish supplier admission and evaluation mechanisms, promote Focuses on the decomposition and implementation of ESG targets;
Chain:
Responsibility low-carbon transformation across upstream and downstream partners, Management ESG regularly evaluates key issues and progress; strengthens target
Leadership and Quarterly
and ensure supply chain stability and compliance. Level Committee achievement monitoring and risk management to ensure effective
Quality Co-creation
Quality and Uphold the quality benchmark of a manufacturing single champion enter- strategy execution.
Safety prise, strictly implement full-process EHS management and control, and
achieve 100% compliant pollutant discharge. Leads the implementation of ESG Committee decisions; conducts
Board Of?ce;
ESG performance monitoring; responsible for ESG data collection,
Talent Development Improve training, incentive mechanisms, and career pathways to create a Audit and Monthly
consolidation, analysis, and improvement tracking; leads the prepa-
People-Centric safe, healthy, and equitable workplace. Legal Center
ration of the annual ESG report.
Society: Technological Drive breakthroughs in low-carbon technologies through R&D investment, Execution
Employee Development Innovation participate in industry standard setting, and lead the low-carbon upgrad- Level
and Social Implements sustainability tasks in detail, closely aligned with ESG
ing of the brazing materials industry. ESG Working
strategic objectives, ensuring ef?cient execution and outcome Monthly
Responsibility Social Responsibility Engage in community development, rural revitalization, and public welfare Group
delivery.
initiatives, ful?lling corporate citizenship responsibilities.
Materiality Analysis Stakeholder Engagement and Due Diligence
To effectively identify, understand, and respond to stakeholder concerns regarding ESG practices, Hua Guang conducts regular and com- Hua Guang recognizes that stakeholder engagement is a critical pathway for identifying ESG risks and opportunities and improving man-
prehensive ESG materiality assessments. agement performance. The Company has established an open and transparent due diligence and communication mechanism, enabling
in-depth understanding of stakeholder expectations and feedback on ESG issues through regular engagement.
Double Materiality Assessment Process Based on industry context and the scope of sustainability impacts, the Company has identi?ed key stakeholder groups, including govern-
ment and regulatory authorities, shareholders, customers, employees, suppliers and partners, industry associations, and communities.
Stakeholder expectations and reasonable suggestions are incorporated into daily operations and decision-making processes to enhance
Based on the Company’s ESG management level, and in accordance with the Guidelines, the
Step 1: Global Reporting Initiative (GRI Standards), and other mainstream domestic and internation-
management practices and promote the effective achievement of sustainable development goals.
Background Analysis and
al ESG standards and frameworks, as well as benchmarking against leading industry peers
Issue Identi?cation Stakeholder Expectations and Demands Response and Communication
and ESG rating requirements, 24 material issues were identi?ed to form an issue database.
Corporate governance;
compliant operations;
Issues are categorized by positive or negative impact, and actual or potential impact, to Shareholders’meetings;
Impact Materiality risk management;
determine evaluation dimensions. Expert scoring is used to assess the magnitude and likeli- Shareholders / ?nancial reports;
Assessment anti-corruption and business ethics;
hood of impacts. Investors performance reports;
investor rights protection;
Step 2 R&D and innovation;
roadshows
business performance and development planning
Financial Materiality Internal ?nancial experts and ESG specialists evaluate the likelihood of risks and opportuni-
Assessment ties and their ?nancial impact. R&D and innovation; Customer meetings;
product quality and safety; customer satisfaction surveys;
Customers
customer service and rights; global service network;
Step 3: Quantitative analysis is conducted on both impact and ?nancial materiality results, and a
low-carbon products exhibitions, forums, and conferences
Double Materiality Analysis matrix is used to present the overall priority of each issue.
Procurement activities;
Compliant operations;
websites and social media;
R&D and innovation;
Suppliers forums, conferences, training and evaluations;
Environmental Dimension Social Dimension Hua Guang Double Materiality Matrix sustainable supply chain;
site visits and on-site research;
industry communication and cooperation
supplier satisfaction surveys
Environmental Compliance Employee Rights and
Management Bene?ts Trade unions and employee representative congresses;
employee forums;
Climate Change Response Talent Development Occupational health and safety;
training;
employee development and training;
Energy Management Occupational Health Employees activities;
and Safety employee rights protection;
performance evaluation and promotion;
Water Resource compliant operations
Management 14 13 satisfaction surveys;
Product Quality and Safety 11
Pollutant Emissions Customer Service and
Privacy Protection 10 12 Inspections;
Waste Management 4 Compliant operations;
of?cial correspondence;
Impact Materiality
R&D and Innovation 15 anti-corruption and business ethics;
Circular Economy 5 special investigations and on-site meetings;
Government /
Sustainable Supply Chain 3 low-carbon products;
Biodiversity environmental management systems;
Fair Treatment of SMEs information disclosure;
websites and social media
Rural Revitalization 23
Social Contribution
Public and compliant operations; Public welfare projects;
Governance Dimension Communities anti-corruption and business ethics; community volunteer activities
Corporate Governance Anti-Unfair Competition 17 8 product safety and quality
Compliance and Risk Stakeholder Frontier technologies;
Management Communication
industry challenges;
Financial Materiality Industry Experts Industry forums;
Business Ethics and Due Diligence R&D and innovation;
and Scholars industry-academia-research cooperation
Anti-Corruption promotion of new products and technologies;
basic research
Three Decades of Technological Innovation,
Special Topic Major Milestones in Hua Guang’s 30-Year Development
Intelligent Manufacturing for the Future
New Journey
On December 5, 2025, Hua Guang grandly held a series of events in Hangzhou to celebrate its 30th anniversary. The Company gathered
Global Expansion
with representatives from all sectors of society to witness its achievements over three decades of innovative development and to jointly
look ahead to a renewed journey toward the future. 2024-2025 Renhe Phase II project commenced oper-
Leap Forward ations in 2024, bringing total production
Diversi?ed Empowerment capacity to 10,000 tons.
Relocated headquarters in 2025, estab-
lished a production base in Thailand, and
was selec ted as a Zhejiang Province
Exchange in 2020, becoming the ?rst STAR Market-listed
“Future Factory”pilot enterprise, steadily
company in the industry and Yuhang District.
advancing toward becoming a globally
Obtained IATF 16949 certi?cation in 2021, entering the
leading provider of functional connection
new energy vehicle sector.
materials and solutions.
Achieved breakthroughs in solder materials technology
in 2022, expanding into the microelectronics ?eld.
E xpor t revenue exceeded RMB 100 million in 2023;
established the Electronic Connection Business Division
to cultivate new growth drivers.
Innovation · Fruitful
Achievements
Thirty Years of Technological Innovation for a Long-term Sustainable growth the First Prize of China Machinery Industry Science and Tech-
nology Award.
Awarded the Second Prize of the National Science and Technol-
Re?ecting on the 30-year journey of Hua Guang, it is a remarkable chapter of perseverance and achievement. These three decades repre- ogy Progress Award in 2016 and hosted the ?rst International
sent dedication, innovation, and the collective wisdom and hard work of countless Hua Guang employees. Every step re?ects their cour- Forum on Green Connection.
age, determination, and relentless pursuit of progress. Led the formulation of the national standard for“Silver Brazing
Breakthrough Filler Metals”in 2018.
Diversi?ed Leadership Recognized as a“Manufacturing Single Champion Demonstra-
Foundation Building
Standardized Development 2001-2007 Success fully developed
tion Enterprise”in 2019.
silver-based brazing materials
in 2001, expanding into valve
Reorganized into a limited liability
and compressor sectors.
Inception · Embarking company in 1997, marking a key step
Achieved the largest market
on the Journey toward market-oriented operations.
share in China’ s refrigeration Gouzhuang plant commenced operations in 2008 and
Became the ?rs t enterprise in the
industry to pass ISO 9002 certi?cation
in 1998, embedding quality awareness
indus t r y se g ment in 20 07,
e s t ablishing a benchmark
was recognized as a National Key Supported High-Tech
Enterprise.
Factory was established, initiat- position in the industry.
into its development DNA. Launched the OA system in 2010, introducing compre-
ing its entrepreneurial journey
hensive digital management.
focused on brazing materials
Completed shareholding reform in 2011 and introduced
and technological innovation.
strategic investors to support future growth.
Upgrade · Enhancing
Quality and Ef?ciency
Industry Collaboration
Strengthening the Foundation Through R&D System Development
The Company recognizes the importance of industry exchange and collaboration for the high-quality development of the brazing materi-
als industry. It maintains an open and collaborative approach, actively organizing and participating in various industry exchange activities
R&D Innovation System to promote the transformation and industrial application of technological achievements.
The Company adheres to the technological innovation strategy of“Develop one generation, reserve one generation, and lead one genera-
tion,”positioning technological R&D as the core engine for cultivating and developing“new quality productive forces.”Hua Guang has
established an R&D innovation system centered on its research institute, integrating multi-level platforms such as the Zhejiang Provincial Case Hosting the Green Connection and Manufacturing 2025 Summit Forum
Key Enterprise Research Institute, provincial enterprise technology center, provincial R&D center, and provincial postdoctoral research
workstation. This system enables full-process innovation management, from project selection and initiation to implementation and
acceptance.
The Company has built a high-level R&D team and invited multiple professor-level experts and scholars to form an expert advisory com- In December 2025, the Company hosted the 9th China (Hangzhou) Green Connection and Manufacturing 2025 Summit Forum. The
mittee, providing forward-looking guidance for the implementation of its technological innovation strategy. As of the end of the reporting forum brought together more than 300 renowned experts, scholars, and corporate representatives to discuss trends in green
period, the Company’s R&D team comprised 99 personnel. In addition, the Company has introduced advanced equipment and estab- connection technology innovation, explore pathways for integrating intelligent manufacturing, and promote the advancement of
lished technologically advanced engineering laboratories and pilot-scale workshops, providing a professional R&D environment for green connection and intelligent manufacturing industries.
researchers.
Based on its overall development plan, the Company formulates annual R&D plans, clarifying the direction and objectives of technologi-
cal innovation for the following year. It has also established a clear R&D investment budgeting mechanism, allocating funds annually
based on R&D plans and incorporating budget execution into the annual performance evaluation of the research institute and responsi-
ble personnel. The Company requires that R&D investment intensity be maintained at no less than 3%, ensuring suf?cient resources for
continuous technological innovation. During the reporting period, the Company’s R&D investment amounted to RMB 85.2952 million,
accounting for 3.34% of operating revenue.
In addition, the Company continue to improve its innovation incentive mechanisms by implementing the Reward Application Process for
Government Projects and Intellectual Property Applications, providing incentives for successfully completed R&D projects, patent autho-
rizations, and high-quality academic publications. It also organizes annual events such as the Science and Technology Festival to promote
internal collaboration and technical exchange, continue to stimulate employees’enthusiasm for innovation.
Green Connection and Manufacturing 2025 Summit Forum
The 6th Science and Technology Festival of Hua Guang
Industry?Academia?Research Integration
The Company actively promotes collaborative innovation through industry?academia?research integration, establishing in-depth part- Intellectual Property Protection
nerships with well-known domestic and international universities and research institutions to steadily strengthen its R&D capabilities
and advance cutting-edge industry technologies. Hua Guang has established cooperative relationships with institutions such as Harbin The Company fully recognizes the importance of intellectual property (IP) for technological innovation and core competitiveness, and has
Institute of Technology, Zhejiang University of Technology, North China University of Technology, China Jiliang University, and Zhengzhou established a comprehensive IP management system. It strictly complies with relevant laws and regulations, including the Patent Law of
Research Institute of Mechanical Engineering. It has jointly established platforms including the“Metal New Materials and Processing & the People’s Republic of China, the Trademark Law of the People’s Republic of China, and the Copyright Law of the People’s Republic of
Welding Technology R&D Center”and the“New Welding Materials R&D Center.”At the same time, the Company partner with research China, and has formulated and implemented the Intellectual Property Management System to standardize patent and IP-related work.
institutions such as the National Key Laboratory of High-Performance New Welding Materials, conducting technical exchanges and collab- Hua Guang has established an Intellectual Property Management Center responsible for planning future project, patent, and standards
orative R&D to consolidate its leading position in both theoretical and applied aspects of brazing material manufacturing technologies. layouts, and actively carries out IP protection activities such as patent applications and trademark registrations. In addition, the Company
During the reporting period, the Company signed an industry?academia?research cooperation project with China Jiliang University and conducts regular IP protection training to steadily enhance employees’awareness and professional capabilities in IP protection, thereby
participated in the formulation of 6 national standards and 2 group standards. strengthening internal safeguards for protecting innovation achievements.
Technological Breakthroughs and Intelligent Manufacturing Upgrades
The Company continues to deepen technological innovation and has achieved multiple achievements. During the reporting period, its
scienti?c research achievements were included in the Zhejiang Province Green and Low-Carbon Technology Promotion Catalogue (2025
Edition). The Company was also selected as a Zhejiang Province Future Factory pilot enterprise and passed the Hangzhou Smart Factory
evaluation.
High-Tech Enterprise Certi?cation
Zhejiang Province Future Factory Pilot Enterprise
Digital twin system established with full connectivity of production line equipment
The Company continues to advance intelligent
manufacturing, focusing on production auto-
mat ion and equipment dig it aliz at ion to
enhance overall produc tion capabilities.
During the reporting period, phased achieve-
ments were made in areas such as material
handling, warehouse management, and pro-
duction line control, effectively reducing reli-
ance on manual labor and laying a solid hard-
ware foundation for building an intelligent
production system.
Robotic palletizing replacing manual operations
AGV automated transport replacing traditional manual forklifts
Automated high-bay warehouse replacing traditional material storage yards
Deepening
Environmental
Management
Supporting the United Nations Sustainable Development Goals:
Strictly Upholding the Compliance Baseline Environmental Protection Training
The Company continues to drive the development of an environmental and low-carbon culture. Through systematic environmental pro-
tection training and awareness activities, it effectively enhances employees’environmental awareness and practical capabilities, further
Environmental Management System Development strengthening the Company’s overall ability to respond to environmental risks. In terms of environmental training, the Company organiz-
es environmental training on“required knowledge and skills”as well as specialized training on environmental law and regulation and
Hua Guang follows the environmental management policy of“complying with laws and regulations, meeting emission standards, conserv- energy management, covering all employees. The training focuses on strengthening understanding of environmental laws and regula-
ing resources, advocating green practices, protecting the environment, and pursuing continuous improvement,”and integrates the con- tions, standardized pollutant disposal, and practical energy-saving and consumption-reduction measures, thereby enhancing environ-
cept of sustainable development into the core of its corporate strategy. The Company continue to improve its environmental protection mental literacy and compliance awareness across the workforce. In terms of environmental communication, the Company actively fosters
management and has established an environmental management structure with clear responsibilities and ef?cient operations. As the a positive atmosphere of“everyone talks about environmental protection and low carbon is visible everywhere”by posting environmen-
highest decision-making body, the Board of Directors is responsible for the overall supervision of the formulation and implementation of tal slogans in of?ces, workshops, and other public areas, and by advocating energy-saving behaviors, thereby embedding the concept of
environmental strategies, and regularly reviews the achievement of environmental targets and major environmental issues. The EHS Man- green development into daily awareness and action.
agement Department is responsible for the overall coordination of the Company’s day-to-day environmental operations, covering key
matters such as full-lifecycle environmental monitoring, emergency management of unexpected incidents, intensive utilization of water
and energy resources, operation and maintenance of pollution control facilities, compliant emission control and full-process waste man-
agement. All functional departments and subsidiaries strictly ful?ll their primary environmental protection responsibilities, implementing
layered accountability and tiered control in accordance with their respective duties to ensure that all environmental indicators are effec-
tively decomposed, fully executed, and closed-loop implemented, thereby ensuring compliant, orderly, and risk-controllable environmen-
tal management.
The Company strictly complies with laws, regulations, and administrative measures such as the Environmental Protection Law of the Peo-
ple’s Republic of China and the Administrative Measures for the Legal Disclosure of Enterprise Environmental Information, and adheres to
Addressing Climate Change
lawful and compliant operations and lawfully disclosure of environmental issues. The Company has formulated and implemented rele-
vant management systems and procedural documents such as the Quality, Environment, Occupational Health and Safety Management
System Manual, thereby establishing a long-term environmental management mechanism and achieving full-process closed-loop control
from source prevention to end-of-pipe treatment. During the reporting period, the Company did not experience any major environmental
emergencies, nor was it subject to any administrative penalties due to environmental incidents.
The Company continues to deepen the development of its environmental man- Climate Governance
agement system and drive management standardization and internationaliza-
tion. As of the end of 2025, both the Company and its subsidiary Fujing Welding
Hua Guang has always regarded addressing climate change as an important responsibility in promoting high-quality and sustainable
had successfully passed ISO 14001 Environmental Management System certi?ca-
development. By establishing a governance system with clear responsibilities and ef?cient coordination, the Company integrates climate
tion and annual audits, and the certi?ed entities accounted for100% of the Com-
action into strategic decision-making and daily operations. As the highest decision-making body, the Board of Directors is responsible for
pany’ s total operating revenue.
overseeing the formulation and implementation of climate-related strategies, and regularly reviews climate-related risks and opportuni-
The Company strictly implements the“three simultaneities”system for environ-
ties, target progress, and key performance indicators to ensure that climate factors are embedded throughout the Company’s overall
mental protection in construction projects. For all new, modi?ed, and expanded
development strategy and major investment decisions.
projects, the Company conducts environmental impact assessments in accor-
At the execution level, the Company has established a working mechanism in which strategic coordination and operational execution
dance with the law. At the same time, pollution prevention and control facilities
support one another. The ESG Project Team is responsible for coordinating the strategic assessment of climate risks and opportunities,
are designed, constructed, and put into operation simultaneously with the princi-
integrating ESG factors into the Company’s strategic planning, production and operations, and industrial investment decisions, and con-
pal project. Upon project completion, acceptance procedures are promptly com-
tinuously optimizing the business management system to ensure the implementation of sustainable development goals. The EHS Man-
pleted, pollutant discharge permits are obtained to ensure compliant emissions,
agement Department focuses on speci?c execution, taking green operations as its core and promoting green management throughout
and all pollution prevention measures are strictly implemented and effectively
product design, manufacturing, and application, while embedding the concept of sustainable development into daily operations and em-
executed. Environmental indicators are regularly monitored, and pollutants are Emergency drill for ?ood and
typhoon prevention ployee behavior.
discharged and disposed of in compliance with applicable requirements. In 2025,
To ensure the standardization and long-term effectiveness of its climate response efforts, the Company has formulated internal manage-
the Company’s total environmental protection investment reached RMB 2.9804
ment systems such as the Control Procedure for Policies, Objectives, Indicators and Plans and the Risk Management Control Procedure,
million, reinforcing the foundation for green manufacturing and promoting envi-
incorporating climate-related requirements into the standardized processes of target management, risk control, and operational control.
ronmental management from“compliance”to“operational excellence.”
At the same time, the Company has established and improved its emergency
response system for environmental incidents, and formulated and implemented
procedural documents such as the Emergency Preparedness and Response Con-
trol Procedure and the Emergency Response Plan for Environmental Incidents to Climate Risk and Opportunity Management
standardize emergency response processes and handling measures. In addition,
the Company scienti?cally formulates environmental emergency drill plans and
The Company fully recognizes the various challenges that climate change may pose to manufacturing operations and social development.
organizes their implementation on a regular basis. Through practical drills cover-
It actively assumes its social responsibility in addressing climate change, carries out internal identi?cation and management of
ing multiple scenarios such as typhoon and ?ood prevention, and hazardous
climate-related risks and opportunities, and remains committed to enhancing its climate resilience. With reference to IFRS S2 Climate-re-
waste leakage, the Company strengthens employees’emergency response capa-
lated Disclosures issued by the International Sustainability Standards Board (ISSB), the Company identi?es environmental and climate-re-
bilities and continue to improve its capacity to handle sudden environmental Emergency drill for chemical leakage lated risks and potential opportunities arising from climate change and fully incorporates them into its overall risk management system.
incidents.
The Company has incorporated climate change risk management into its overall risk control system and established a systematic process
Risk Type Risk / Opportunity Description Time Horizon Response Measures for risk identi?cation, analysis, and response. Through regular climate risk identi?cation and assessment, the Company reviews various
risks and evaluates their potential impacts to form a risk register. For identi?ed key risks, targeted response strategies are formulated
Physical Risk and translated into speci?c action plans, which are then integrated into daily operational management. At the same time, a dynamic mon-
itoring and feedback mechanism has been established to continue to track implementation results and ensure the effectiveness and
Extreme heat: Changes in climate patterns may Continue to improve employees’working envi- adaptability of climate risk management.
Short term
lead to more frequent extreme heat events, ronment through innovation and transformation
posing potential health threats to production Medium term in production processes, thereby ef fectively
workers who operate continuously in high-tem- Long term reducing the adverse impac t of temperature
perature environments. changes on production operations. Targets and Indicators
Acute
Establish an emergency command team to coor- The Company attaches great importance to carbon emissions management and continues to undertake carbon emissions veri?cation. By
Risk
Flood disasters: Flooding caused by climate dinate emergency rescue work for ?ood preven- establishing and improving a carbon emissions data monitoring, statistical, and accounting system covering the entire value chain, the
Short term
change may result in water accumulation in tion, ?ood control, and typhoon prevention; regu- Company ensures the accuracy, completeness, and transparency of carbon data. Supported by regular third-party independent veri?ca-
factory areas, disrupting normal operations Medium term larly undertake ?ood and typhoon prevention tion and rigorous internal audit mechanisms, the Company has identi?ed its carbon emissions baseline, providing solid data support for
and directly threatening the safety of produc- Long term drills to enhance emergency coordination capa- scienti?cally setting emission reduction targets and effectively implementing emission reduction measures.
tion facilities and materials. bilities and improve employees’emergenc y During the reporting period, the Company's total greenhouse gas emissions amounted to 12,095.92 tonnes of carbon dioxide equivalent.
response under severe weather conditions. At the same time, the Company set a 2026 emission reduction target of reducing greenhouse gas emissions (Scope 1 and Scope 2) by 1.5%
compared with 2025, thereby promoting continuous improvement in operational energy ef?ciency.
Global warming: Resource shortages caused by Implement energy management; advancer elec-
global warming may interrupt the supply of tricity-saving measures in production and of?ce
Chronic Indicator Unit 2025 2024 2023
water, electricity, and other energy sources, Long term operations; advance innovation in energy-saving
Risk
thereby affecting the Company's normal pro- and emission-reduction processes and energy Direct (Scope 1) greenhouse gas emissions tCO 2e 212.15 212.53 158.79
duction and operations. recycling to effectively reduce operating costs.
Indirect (Scope 2) greenhouse gas emissions tCO 2e 11,883.77 12,296.18 13,115.00
Transition Risk
Total greenhouse gas emissions (Scope 1 and Scope 2) tCO 2e 12,095.92 12,508.71 13,273.79
The Company's per formance in addressing
While actively taking climate action, disclose to Other indirect (Scope 3) greenhouse gas emissions tCO 2e 32,183.69 30,509.11 23,929.74
climate change is receiving increasing attention Medium term
Reputational stakeholders in an open and transparent manner
from stakeholders. Failure to actively respond Greenhouse gas emissions reduced tCO 2e 980.11 133.60 117.00
Risk Long term the Company’s measures and future plans for
to stakeholder expectations may affect the
addressing climate change.
Company’ s reputation.
Opportunities
Leveraging the Company's R&D capabilities, Respond to downstream customers’demand for
continue to provide downstream customers greener, more ?exible, more ef?cient, and more
Green Medium term
with green welding and connection products material-saving brazing materials by continuous-
products and
and technical ser vices that contribute to Long term ly developing new products and technologies,
services
energy saving and emission reduction, thereby enhancing customer loyalty, and maintaining
expanding market opportunities. industry leadership.
As global carbon reduction goals advance,
renewable energy application scenarios and
Medium term Ac tively drive the use of various renewable
Energy technologies are becoming increasingly wide-
energy sources in production and operations to
ef?ciency spread, and renewable energy is expected to Long term
achieve energy cost savings.
become more accessible and cost-effective in
the future.
Ac tively formulate carbon neutralit y plans,
Low-carbon development has become a broad
Short term advance the replacement of traditional energy
social consensus, requiring enterprises to have
with renewable energy, adopt energy ef?ciency
Adaptation rapid response and adaptation capabilities in Medium term
improvement measures, build a sustainable value
order to manage climate risks more effectively Long term chain, and continue to enhance the Company's
and seize climate opportunities.
integrated solutions and service capabilities.
Improving Resource Ef?ciency Energy Management
Hua Guang implements comprehensive and re?ned energy management. By improving institutional systems, strengthening organization-
al support, clarifying target control, and advancing energy-saving upgrades, the Company continuously improves energy ef?ciency, strict-
ly controls unnecessary consumption, and steadily transitions toward a low-carbon, ef?cient, and sustainable energy utilization model.
Water Resources Management The Company strictly complies with relevant laws, regulations, and industry standards, and has formulated and implemented a series of
management systems and procedural documents such as the Energy Management System Manual, clarifying the direction and basis for
Hua Guang attaches great importance to the ef?cient use and protection of water resources. In strict compliance with relevant laws, reg- energy management. At the same time, it has established and improved its energy management system and, as of the end of the report-
ulations, and administrative measures such as the Water Law of the People’s Republic of China, the Company has established a full-pro- ing period, had successfully obtained ISO 50001 Energy Management System certi?cation and passed the annual audit.
cess water resource control mechanism, deepened recycling and reuse practices, and is committed to achieving harmony between eco- To further enhance re?ned management, the Company established an Energy Section, added the position of Energy Engineer who is
nomic and ecological bene?ts. responsible for coordinating the supervision and inspection of energy use and carbon asset management, thereby providing an organiza-
In terms of water resources management system development, the Company has established a water-saving leading group as the highest tional foundation for achieving energy-saving and carbon-reduction targets.
decision-making and coordinating body for water resource management, fully responsible for organizing, coordinating, and supervising In accordance with relevant procedural documents, the Company formulates annual energy baseline targets and management plans,
water-saving efforts within the Company. The Company has formulated the Water Use Management System, clarifying the water use man- de?nes energy performance parameters and baselines, and sets management targets for reducing comprehensive energy consumption
agement responsibilities and operating standards of each department and workshop. Each year, the EHS Management Department formu- by 2%?5%. When signi?cant changes occur in major energy use, the Company updates and adjusts energy baselines in a timely manner
lates departmental water-saving target plans and regularly compiles, analyzes, and discloses information on water use and water conser- and completes the approval procedures to ensure dynamic optimization of the system. During the reporting period, the Company fully
vation. Each department further breaks down these targets to individual water-use units and establishes statistical ledgers for water use. met its targets for annual comprehensive energy consumption, comprehensive energy consumption per unit of output, and comprehen-
By assessing performance against water usage target, the Company ensures that water-saving responsibilities are implemented at every sive energy consumption per unit of output value.
level and that management objectives are effectively achieved. In terms of speci?c measures for energy saving and carbon reduction, the Company actively drives the transition to a cleaner energy
The Company’s main source of water is municipal tap water, which is primarily used in production process for cooling tower make-up and structure and vigorously advances the replacement of traditional energy with clean energy such as solar power. Among these efforts, the
product cleaning and everyday usage. All water withdrawal activities strictly comply with relevant national and local laws and regulations newly installed solar photovoltaic power generation equipment at Renhe Phase II was connected to the grid and put into operation, gen-
to ensure legality and compliance. To effectively ful?ll its responsibility for water source protection, the Company strictly controls waste- erating a cumulative annual on-grid power output of 4,580 kWh. At the same time, the Company continues to tap into energy-saving
water discharge. Wastewater generated in the production process is ?rst pre-treated at the self-built wastewater treatment station within potential through renovation projects such as replacing conventional lighting with energy-ef?cient LED lighting and implementing waste
the plant and is then discharged into the municipal sewage pipe network after meeting the required standards. Domestic sewage is heat recovery. During the reporting period, the Company’s renewable energy consumption reached 2,017.08 tonnes of standard coal
discharged directly into the municipal sewer network. The Company’s wastewater discharge outlets have been incorporated into the equivalent, and the proportion of green electricity used reached 68.70%.
online monitoring system of the environmental protection authorities, and a dedicated monitoring room has been established to conduct
thereby ensuring stable and compliant wastewater discharge and effectively reducing impacts on downstream water environments and
ecological safety of water sources.
To advance the recycling and reuse of water resources, the Company is actively constructing a reclaimed water reuse system. It plans to During the reporting period,
reuse treated reclaimed water in production workshops as a substitute for tap water in product cleaning and other processes, thereby the Company’ s renewable energy consumption reached the proportion of green electricity used reached
signi?cantly reducing the consumption of fresh municipal water. At the same time, the Company continues to optimize the cooling tower
circulation system, strengthen the recycling of cooling water, and carry out water-saving upgrades to cleaning line equipment. A self-cir-
culating cleaning line system has been established, through which the cleaning water from the ?nal stage of the cleaning line is recycled
to the ?rst stage for reuse. The Company has implemented reclaimed water reuse, with a total of 8,362 tons of reclaimed water reused tonnes of standard coal equivalent
during the reporting period. Focusing on source reduction, the Company is also actively promoting the development of no-clean process-
es in an effort to reduce water demand in production through technological innovation.
During the reporting period, the Company actively advanced water-saving action plans such as construction of the reclaimed water reuse
system, development of no-clean processes, reuse of water on cleaning lines, and replacement of smart remote-reading water meters.
During the reporting period, the Company’ s recycled water volume reached 42,989.8 tonnes, and the water recycling rate reached 24.83%.
Controlling Pollutant Emissions
The Company strictly complies with laws and regulations such as the Environmental Protection Law of the People’s Republic of China, the
Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution, as well as the requirements of pollutant
discharge permits. It has formulated pollutant emission management systems such as the Pollution Control Procedure and the Wastewa-
ter and Waste Gas Treatment Management System to ensure that emissions comply with national and local environmental standards. At
the same time, the Company attaches great importance to the standardized operation of environmental protection facilities. Through
technological upgrades and process optimization, it effectively reduces pollutant emissions generated during production, and regularly
maintains and inspects environmental protection equipment to ensure stable operation and effective maintenance. As of the end of the
Reclaimed water reuse system
reporting period, the Company had not been subject to any major administrative penalties or criminal liability for pollutant emissions.
The Company places great emphasis on compli-
ant pollutant discharge. All operating plants
Waste Management
have lawfully obtained pollutant discharge per-
mits and, in accordance with permit require- The Company attaches great importance to waste management. In strict compliance with laws and regulations such as the Law of the
ments, have established a dual veri?cation People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste, it has formulated internal systems
mechanism combining self-monitoring and such as the Waste Management System and the Hazardous Waste Management System. These are managed by the EHS Management
third-party testing. The Company regularly con- Department to ensure comprehensive coverage of all processes including of?ce operations, production, transportation, and inventory
ducts comprehensive monitoring to ensure the management. Based on the nature and type of waste, the Company accurately classi?es it into hazardous waste, recyclable waste, and
authenticity and accuracy of data, and strictly general waste, and adopts corresponding disposal measures for each category.
discloses the results as required, proactively
With respect to non-hazardous waste management, the Company
accepting public supervision.
has set up dedicated collection points and assigned professional
Online monitoring equipment management personnel to supervise and guide waste disposal, During the reporting period,
prevent mixing of different types of waste, and avoid cross-con- the total amount of non-hazardous waste
tamination. In the waste treatment process, the Company strictly generated reached
Atmospheric Pollutant Management
follows environmental protection requirements and entrusts qual-
i?ed third-party institutions to handle non-hazardous waste,
Hua Guang strictly complies with legal requirements such as the Law of the People’s Republic of China on the Prevention and Control of thereby minimizing environmental impact. During the reporting tonnes
Atmospheric Pollution to ensure compliant waste gas emissions. Waste gas generated during the Company’s operations mainly includes period, the total amount of non-hazardous waste generated
particulate matter, sulfuric acid mist, and non-methane total hydrocarbons. The Company has formulated relevant emission concentra- reached 89.76 tonnes, achieving the target of 100% compliant
tion targets in accordance with the Emission Limits of Air Pollutants for the Foundry Industry and the Integrated Emission Standard of Air disposal.
Pollutants, and ensures compliant emissions through effective waste gas treatment measures. For hazardous waste management, the Company implements spe-
achieving the target of
cialized management and standardizes the full process of genera-
tion, collection, storage, transfer, and disposal to ensure compli-
Waste Gas Treatment Measures
ance with environmental protection and safety standards. The
Company has a dedicated hazardous waste storage warehouse,
compliant disposal
For production processes that generate waste gas pollutants, a gas collection hood is installed above each medium-frequency maintains detailed hazardous waste ledgers, and conducts regular
furnace, with long ?exible curtains arranged around it. Except for the feeding side, the ?exible curtains on all other sides extend checks to ensure consistency among accounts, materials, and
to the bottom of the medium-frequency furnace, and the slag tank is also enclosed within the curtain range. Open operations labels. In accordance with relevant regulations, the EHS Manage-
are avoided as much as possible to reduce fugitive emissions. ment Department promptly transfers hazardous waste to quali?ed
During the reporting period,
Waste gas is discharged in an organized manner through exhaust stacks that full?ll industry height requirements, and compli- disposal entities for safe and effective disposal. During the report-
the Company’ s hazardous solid waste was
ance is ensured prior to discharge. ing period, 100% of the Company’s hazardous solid waste was
disposed of legally
For gases and dust contained in collected waste gas, the part that contains residual value is recycled and reused. disposed of legally and in compliance with applicable require-
ments, achieving the relevant target.
Wastewater Management
The Company strictly complies with national standards such as the Integrated Wastewater Discharge Standard, the Water Quality Stan-
dard for Sewage Discharged into Urban Sewers, and the Indirect Discharge Limits for Nitrogen and Phosphorus Pollutants in Wastewater
from Industrial Enterprises. It has established discharge concentration targets for key pollutants such as chemical oxygen demand (COD),
PH, suspended solids, and total copper. The Company adopts re?ned management measures for product cleaning wastewater, analytical
testing wastewater, and domestic sewage. Wastewater that meets standards after treatment is discharged to the Liangzhu Wastewater
Treatment Plant. At the same time, the Company actively implements measures such as rainwater-sewage separation and compliant
wastewater discharge, and conducts daily sampling and testing of external wastewater discharge to ensure compliance.
In addition, the Company has built a wastewater
treatment station equipped with a reclaimed water
treatment process. Through the treatment process During the reporting period, Promoting Circular Development
of“workshop wastewater ? raw water tank at the the Company achieved
was tewater s tation ? pretreatment sys tem ?
reclaimed water reuse system,”?ltered high-quali-
ty water is supplied back to workshop production Hua Guang integrates the concept of the circular economy throughout the entire product lifecycle. Guided by the principles of“reduction,
lines for reuse. During the reporting period, the tonnes of reused water. reuse, and recovery,”the Company has established a closed-loop management system covering raw material procurement, production
Company achieved 8,362 tonnes of reused water. processes, packaging and logistics, and waste recycling. During the reporting period, the Company continued to improve resource ef?-
ciency and reduce its environmental footprint through institutional improvement, technological innovation, and digital upgrading.
Protecting Biodiversity
The Company has established a governance structure for raw materials and packaging management involving coordinated participation
from multiple departments, including procurement, quality, warehousing, production, EHS, and ?nance, thereby forming a closed-loop
control mechanism with clear division of responsibilities from source to end-of-life. At the institutional level, the Company has formulat-
ed and strictly implemented management policies such as the Supplier Management Policy, the Supplier Performance Evaluation and
Assessment Procedure, the Raw Material Standard Inspection Guidelines, and the Raw Material Warehouse Material Management Policy,
ensuring quality, safety, and environmental compliance in all links including procurement, acceptance, storage, requisition, and packaging Hua Guang strictly complies with national and local laws, regulations, and policy requirements related to biodiversity protection in its
use. During the reporting period, the Company revised the Supplier Performance Evaluation and Assessment Procedure to increase the operating locations. At the project siting stage, the Company adheres to the principle of ecological priority and conducts comprehensive
weighting of suppliers’performance in packaging recycling and scrap buyback, thereby guiding the supply chain to jointly participate in environmental impact assessments in compliance with applicable regulations, resolutely avoiding ecological redline zones where devel-
circular economy development. opment is prohibited, ecologically sensitive areas, and nature reserves, thereby preventing disturbance to important habitats at the
source. In daily operations, the Company incorporates the reduction of ecological impact into its environmental management objectives.
By establishing a rigorous environmental management system, it ensures that production activities do not cause irreversible damage to
Raw Material Management surrounding wildlife or their habitats, thereby effectively ful?lling its responsibility as a protector of the ecosystem.
For new, modi?ed, and expanded projects, the Company strictly conducts environmental impact assessments in accordance with laws
Control inventory levels and implement ?rst-in, ?rst-out material management to reduce resource
and regulations, including ecological impact assessments. The Company entrusts professional institutions to investigate the biodiversity
waste caused by slow-moving inventory.
conditions in operating areas and surrounding regions, identifying baseline ?ora and fauna resources and distribution characteristics.
Implement lightweight design and structural optimization to reduce packaging material usage per
Based on detailed environmental impact assessment ?ndings, the Company scienti?cally formulates biodiversity risk control strategies,
unit, and drive the use of renewable resources such as bio-based materials and recycled plastics to
deploys environmental monitoring equipment and protective facilities in a targeted manner, and implements dynamic monitoring and
replace traditional packaging materials.
early warning mechanisms to effectively identify and manage potential risks, thereby ensuring ecological safety throughout project con-
Establish an internal process for recycling and reusing scrap materials. Based on system formulas,
struction and operation.
calculate the input quantity and proportion of virgin materials for each product type, and after test-
The Company adheres to technology-driven green development and is committed to reducing the impact of its products on ecosystems
ing and quality assessment, reintroduce them into production.
throughout the product lifecycle through process optimization and product upgrades. The Company actively develops and advances envi-
Establish a scrap buyback mechanism with key customers to realize reverse logistics and drive the
ronmentally friendly brazing materials to reduce hazardous substance emissions from the source of the industrial chain and lower the
circular ?ow of resources throughout the upstream and downstream industrial chain.
risks of contamination to soil, water bodies, and the biological chain. In the manufacturing process, the Company continue to improve its
processes, enhances resource and energy ef?ciency, reduces waste generation and emissions, and alleviates pressure on the surrounding
ecological environment. At the same time, the Company actively builds a green supply chain and guides upstream and downstream part-
Packaging Management ners to jointly pay attention to ecological impacts, working together to drive biodiversity protection across the entire industrial chain.
Implement lightweight design and structural optimization to reduce packaging material usage per
unit, and drive the use of renewable resources such as bio-based materials and recycled plastics to
replace traditional packaging materials.
Drive standardized plastic turnover boxes and establish a customer recycling mechanism. During the
reporting period, approximately 39,200 welding wire spools were recovered from customers and, after
cleaning and repair, were reused for packaging, effectively controlling packaging costs and reducing
waste generation.
Production Process Optimization
Source reduction is achieved through multiple technological innovations:
The surplus metal briquetting and block-forming no-remelting project uses self-developed equip-
ment to directly compress surplus materials into blocks and feed them into the continuous casting
process, reducing the smelting and cutting stages.
The strip continuous casting project introduced a horizontal thin-strip continuous casting furnace to
replace the traditional casting process, eliminating sawing and shot blasting processes and signi?-
cantly improving material utilization ef?ciency.
Optimization of the solder sheet cleaning process reduced the use of volatile cleaning agents, while
an online ?ltration system was added to the solder strip cleaning line, extending the cleaning solu-
tion replacement cycle from daily to semi-monthly and signi?cantly reducing chemical consumption
and emissions.
At the same time, the Company has advanced the development of an intelligent warehousing and logistics system to provide digital sup-
port for the circular economy. Through the integrated application of the raw materials automated high-bay warehouse, silver ingot and
wire drawing ?at warehouses, line-side ?at warehouses, and ?nished goods automated high-bay warehouse, combined with systems such
as WMS, MES, and AGV, the Company has achieved ?rst-in, ?rst-out material management and full-process traceability. Circular economy
processes such as scrap reuse, packaging material recovery, and reintroduction of surplus materials are incorporated into a uni?ed digital
management platform, ensuring quality control and clear ?ow tracking of circular materials, and achieving precise full-process control
from resource recovery to reinvestment in production.
Ful?lling
Social
Responsibility
Supporting the United Nations Sustainable Development Goals:
Safeguarding Occupational Health
continue improving the level of occupational health and safety management and align with the latest laws, regulations, regulatory
requirements, and ESG development concepts, during the reporting period the Company revised and improved the Occupational Disease
Protective Equipment Management Policy, the Occupational Disease Protective Facilities Maintenance and Repair Policy, and the Occupa-
tional Disease Prevention and Control Publicity, Education and Training Policy. These revisions further re?ned the division of occupational
health and safety responsibilities, optimized protection procedures, and strengthened risk control, ensuring that institutional content
Governance remains aligned with national policies and ESG disclosure requirements, steadily consolidating the foundation of occupational health
management and effectively integrating the concept of“safeguarding employees’occupational health”into every aspect of the Compa-
ny’ s management systems.
Hua Guang consistently adheres to the occupational health management policy of“people-oriented, caring for the physical and mental
In the future, the Company will continue to deepen the integration of ESG concepts into occupational health management, continue to
health of employees, obeying laws and disciplines, steadily reducing safety risks; scienti?c management, prevention ?rst, and continuous
optimize its occupational health protection system, increase investment in health protection resources, enhance the level of occupation-
improvement,”and places employees’occupational health and safety rights and interests in an important position in corporate develop-
al health protection for employees, ful?ll corporate social responsibility, and achieve mutual empowerment between employee health
ment. The Company has established a top-down occupational health management structure with clear responsibilities and ef?cient coor-
and corporate development.
dination, ensuring that occupational health responsibilities are cascaded and assigned to speci?c individuals.
As the highest decision-making and supervisory body for occupational health management, the Strategy
Board of Directors Board supervises the strategic deployment and implementation effectiveness of occupational
health work across the Company.
Risk Description Response Measures
Coordinates occupational health management in a comprehensive manner, studies and deploys key
Work Safety
occupational health protection tasks, and guides and coordinates departments and subsidiaries in Implement equipment safety protection devices, standardize operating procedures, and
Committee Operational risks such as mechanical
advancing occupational health work. strengthen on-site supervision.
injury, electric shock, falls from Require the use of safety harnesses for work at height and ensure proper protection of
As the department responsible for the daily execution and supervision of occupational health man- height, and struck-by objects edges and openings.
agement, it leads routine work such as occupational health risk identi?cation, occupational disease Conduct regular safety training and warning education.
EHS Management
prevention and control, health monitoring, and safety training; tracks the effectiveness of occupa-
Department Strictly control special operations such as hot work and con?ned space work.
tional health management throughout the process; promptly recti?es various hazards; and ensures Risks of ?re, explosion, and hazardous
Standardize the storage, use, and transportation of hazardous chemicals.
the standardized operation of the system. chemicals leakage
Ensure adequate ?re?ghting equipment is in place and conduct regular emergency drills.
Assists the EHS Management Department in organizing and coordinating departments to implement Establish equipment ledgers and implement daily inspections, regular repairs, and maintenance.
Work Safety Risks from aging equipment and
speci?c occupational health work, and promotes the implementation of occupational health protec- Replace aging components in a timely manner to ensure the effectiveness of safety inter-
Leadership Group facilities and failure of safety devices
tion measures at every position and in every process. locks and alarm devices.
Improve the safety management system and strengthen on-site supervision and assessment.
Ful?ll the primary occupational health and safety responsibilities of their respective units, imple- Risks of unsafe operations and
Departments and Implement the all-employee work safety responsibility system and eliminate the“three
ment occupational health and safety protection measures in light of departmental and job charac- inadequate management
Subsidiaries violations”behaviors.
teristics, organize employee health training, and identify job-speci?c safety risks.
Safety risks arising from Strictly review the quali?cations of outsourced units and apply uni?ed safety management.
cross-operations involving Clarify the safety responsibilities of all parties and strengthen pre-job brie?ngs and pro-
Upholding high standards, the Company has established cess supervision.
contractors
and improved its occupational health and safety manage-
Strengthen ventilation, dust removal, and puri?cation treatment.
ment system. During the reporting period, the Company Chemical hazard risks such as dust
Regularly monitor the concentration of hazardous factors and provide suitable anti-toxic
and its subsidiary Fujing Welding passed ISO 45001 Occu- and toxic and hazardous gases
and dust-proof protective equipment.
pational Health and Safety Management System certi?ca-
tion and annual audits. The certi?ed entities accounted Install sound insulation, noise reduction, cooling, and heat insulation facilities.
Physical hazard risks such as noise,
for 100% of the Company’ s operating revenue. Arrange working hours reasonably to reduce exposure to high-temperature and
high temperature, and vibration
In terms of system development, focusing on the core of high-noise environments.
occupational health protection, the Company formulated
Risks from failure to carry out
a series of special policies, including the Occupational Implement pre-employment, in-service, and exit occupational health examinations,
occupational health examinations as
Disease Hazard Prevention and Control Responsibility establish employee health records, and promptly intervene in abnormal situations.
required
Policy, the Occupational Disease Hazard Warning and
Noti?cation Procedure, and the Occupational Disease Install occupational disease protection facilities in accordance with standards, assign
Risks from missing protective facilities
Prevention and Control Publicity, Education and Training dedicated personnel for management, and conduct regular inspections and maintenance
or inadequate maintenance
Policy. These policies cover key areas such as occupation- to ensure normal operation.
al disease hazard prevention and control, work-related Risks from non-standard provision Provide quali?ed protective equipment according to job requirements, train employees in
injury handling, health monitoring, and job protection, and use of labor protective equipment correct wearing methods, and strengthen on-site supervision and inspection.
and clarify full-process requirements from risk identi?ca-
Set up warning signs in workplaces.
tion to hazard recti?cation, and from health training to Risks from insuf?cient hazard
ISO 45001 Occupational Health and Safety Management System Truthfully inform employees of occupational disease hazards in labor contracts and carry
emergency response, thereby providing solid institutional noti?cation and warning
certi?cation certi?cates of Hua Guang and Fujing Welding out occupational health training.
support for occupational health protection.
Impact, Risk and Opportunity Management Emergency Management
To enhance employees’emergency response capabilities, the Company establishes emergency plans and annual drill plans, and strictly
The Company has established a normalized occupational health and safety risk identi?cation and assessment mechanism, and regularly
organizes special drills, on-site disposal drills, and comprehensive emergency drills according to the plans, covering key areas such as
conducts comprehensive analyses of production and operation sites to identify occupational health and safety risks in process ?ows, raw
work safety, chemicals management, and natural disaster response. After each drill, the Company promptly carries out summary reviews
material use, chemical use, and other aspects, and classify them according to risk level. For identi?ed risks, the Company formulates and
and effectiveness evaluations, assessing personnel and materials readiness, organizational coordination, and practical results, and
implements corresponding control measures, while also establishing a dynamic tracking and review mechanism to regularly evaluate the
formulates recti?cation measures for identi?ed issues. In 2025, the Company organized a total of 20 emergency drills, all of which were
effectiveness of the measures and make timely adjustments and optimizations, ensuring the continuous and effective control of all types
successfully completed, effectively testing the feasibility of emergency plans and strengthening employees’rapid response, information
of risks.
transmission, and on-site disposal capabilities in emergencies.
Safety Inspection and Hazard Recti?cation
In accordance with the Safety Hazard Inspection, 7S and Governance Management System and the Work Safety Inspection Policy, the
Company routinely carries out safety inspections and hazard recti?cation. By identifying hazardous factors in the production process,
implementing safety recti?cation measures, and timely controlling and eliminating accident hazards, the Company effectively safeguards
employee safety and health.
EHS Management Department: Responsible for the organization and management of occupational
health inspections and supervision of the recti?cation process.
Inspection
Departments and production units: Conduct daily occupational health and safety inspections and
Responsibilities
hazard recti?cation.
Company-wide comprehensive inspections: no fewer than once per month
Inspection
EHS Management Department: no fewer than once per week
Frequency
Frontline workshops and teams: daily safety self-inspections
Emergency plan for Conducting various
Inspection Forms Routine inspections, seasonal inspections, special inspections, holiday inspections, etc. production safety accidents emergency drills
Safety records and ledger completion status · Implementation of occupational health and safety train-
Inspection Content
ing, physical examinations, issuance and use of labor protective equipment, and other related work
Fire Safety Management
The Company continues to improve its ?re safety management system to strictly prevent ?re accidents. To further strengthen the ?re
In the hazard management process, the Company has established a safety and park management system, the Company established a“Fire Control Safety Management Of?ce”under the EHS Management
sound closed-loop control mechanism. For issues identi?ed during Department to coordinate and take responsibility for ?re safety work. Fire?ghting facilities and equipment are installed in all plants in
inspections, the Company clari?es the responsibility party for recti- accordance with relevant standards, and a regular inspection and maintenance mechanism has been established to ensure that equip-
?cation, formulates a Comprehensive Inspection Recti?cation Form, ment remains in good condition. For areas with relatively high ?re risk, the Company designates key ?re prevention zones, sets up clear
and requires relevant inspection departments to follow up and warning signs, and strengthens daily control. The Company strictly implements the hot work permit system, ensures that ?re?ghting facil-
supervision. Relevant responsible entities must complete recti?ca- ities are maintained in accordance with regulations, and continuously improves the standardization and effectiveness of ?re safety man-
tion tasks within the prescribed time limit to ensure that recti?ca- agement. At the same time, the Company has established an emergency ?re?ghting team and organizes annual ?re safety training and
tion measures are effectively implemented. For safety hazards practical drills covering all employees, continue to improve employees’?re safety awareness and ?re response capabilities.
involving a wide scope, long recti?cation periods, or large capital
investment, the Company establishes special recti?cation project
teams and, after full discussion, formulates dedicated recti?cation
plans to achieve precise management. After recti?cation is com-
pleted, acceptance procedures are implemented to ensure that haz-
ards are thoroughly eliminated, achieving full-process closed-loop
management from inspection and recti?cation to acceptance.
During the reporting period, the Company carried out extensive
hazard identi?cation work, identi?ed 1,204 safety hazards of various
types, and achieved a recti?cation completion rate of 100%.
In addition, the Company established the Award for“Identifying
Safety Hazards Around Us”to actively encourage employees to
identify occupational health and safety hazards in their daily work.
For hazards reported by employees, the Company makes timely rec-
ti?cations and grants commendations, enabling every employee to Commendation for the Award Conducting the training activity Organizing ?re safety
become a participant in and guardian of safe production. for“Identifying Safety Hazards Around Us” of“Fire Safety for All, Life First” emergency drills
Contractor Safety The Company continues to carry out occupational health
training to effectively enhance employees’awareness and
skills in preventing occupational hazards. New employees
The Company incorporates contractor safety management into its overall safety management system and clari?es contractor safety man-
must complete occupational skills and occupational health
agement requirements in accordance with the Related Party Management Policy. At the access stage, when contractors sign project
training and may only take up their posts after passing the
agreements, they must also sign the Supplier Environment and Safety Management Agreement to clarify the safety responsibilities and
assessment. Employees in service must receive occupa-
management requirements of both parties. Before construction begins, the Company requires contractors to formulate practical and fea-
tional health training at least once a year. Training is divid-
sible safety measures. At the same time, safety education is provided to contractor employees, and those who have not passed the train-
ed into collective training and specialized training. Collec-
ing are not permitted to enter the construction site for work. During the construction process, the Company applies approval-based man-
tive training covers all operating personnel and includes
agement to hazardous operations such as hot work and work at height, and requires contractors to provide labor protective equipment
general occupational health knowledge and emergency
for workers, properly install fences, protective nets, and safety warning signs, and designate dedicated personnel for on-site manage-
skills for the workplace, while specialized training is target-
ment, thereby effectively safeguarding the safety of contractor employees.
ed at personnel in speci?c positions and focuses on pro-
fessional knowledge and protective skills required in the
Safety Training work process, continue to enchance employees’occupa-
Occupational hazard noti?cation signage tional health management awareness and building a solid
Through a systematic and tiered training system, the Company enhances em- health protection line.
ployees’safety awareness and skill levels. The Company formulates and strictly
implements an annual work safety training plan. All new employees must com-
Indicators and Targets
plete level 3 safety education and training before taking up their posts, and may
only begin work after passing the examination. For frontline production units,
daily training is organized by workshop directors or department heads, covering During the reporting period, the Company formulated occupational health and safety management targets and continue to improve its
practical skills such as hazard identi?cation and self-rescue and mutual rescue health and safety management level by clarifying responsible entities and breaking down responsibilities for implementation across
methods. At the same time, targeted specialized training is provided to special departments.
operations personnel and employees engaged in chemicals-related work.
Through diverse forms of safety training, the Company has fostered a strong
Hua Guang’s 2025 Occupational Health and Safety Targets
safety culture atmosphere and continue to improve the safety quality of all em- Conducting training on standardized
ployees. work safety regulations No major safety accidents d
ve
hie
No occupational disease incidents Ac
Safeguarding Occupational Health
Indicator Unit 2025 2024 2023
The Company has always attached great importance to employees’occupational health and minimizes occupational health risks through
a series of effective control measures. Safety Investment
Occupational Health Management Measures Work safety investment RMB 10,000 497.65 402.86 -
Work-related injury insurance investment RMB 10,000 62.77 57.11 -
Strictly implement the“three simultaneities”principle for construction projects to ensure that occupational
disease protection facilities are designed, constructed, and put into production and use simultaneously with
Employee coverage rate of work-related injury insurance % 100 100 -
the principal project. Work safety liability insurance investment RMB 9,589.62 14,304.36 -
Pre-contro Set up warning signs in areas where occupational hazard factors may arise, with content including hazard fac-
tors, health impacts, and preventive measures.
Employee coverage rate of work safety liability insurance % 18.30 17.80 -
When signing labor contracts with employees, truthfully inform them of the occupational disease hazards they Work-Related Injury and Occupational Disease Management
may face at work, ensuring that employees fully understand the occupational disease risks of their positions.
Number of work-related injuries with serious consequences (excluding fatalities) persons 0 0 0
Number of work-related fatalities persons 0 0 0
Regularly engage quali?ed occupational health technical service institutions to conduct occupational hazard
testing and evaluation in workplaces, and organize routine monitoring of occupational hazard factors in all Incidence rate of occupational diseases % 0 0 -
workplaces to ensure that air quality, noise levels, lighting conditions, and other factors comply with national Number of recordable work-related injuries cases 14 7 3
standards and hygiene requirements.
Organize all employees to undergo pre-employment, in-service, and exit occupational health examinations, and Recordable injury rate / 1.52 0.86 -
Process
establish health records.
Control Injury rate per million working hours / 7.60 4.30 -
For health issues identi?ed during examinations, promptly take intervention measures to prevent deterioration.
Install effective protective facilities in workplaces where occupational hazard factors are present to ensure that Lost workdays due to work-related injuries days 587 215 -
the content of occupational hazard factors in the workplace complies with national occupational health stan-
Safety Training
dards, while assigning dedicated personnel to conduct daily inspection and maintenance of such facilities.
Provide employees with labor protective equipment suitable for their positions, and guide and supervise them Total duration of safety training hours 4,302 194.50 -
in wearing it correctly to effectively safeguard their occupational health.
Average safety training duration per employee hours 6 0.31 -
Note, data collecting scope and method was improved in 2025, safety training hours has increased from 2024
Empowering Employee Development Performance Incentives
To further motivate employees, the Company adopts a model that combines both material and non-material incentives, continuously
enhancing employees’enthusiasm for work.
Employee Rights and Interests Employee Incentive Measures
Employee Recruitment Material
incentives
Talent selection incentives, incentives for key research projects, science and technology festival-related
incentives, Outstanding Innovation Award, provincial/municipal honorary allowance incentives, etc.
Hua Guang adheres to the recruitment principle of“fairness, openness, and merit-based selection,”has established a sound recruitment
process, and formulates annual recruitment demand plans to carry out various recruitment activities in an orderly manner. The Company Non-material Advanced individual commendations, Annual Rising Star Award, Hua Guang Party and Mass Pioneer
incentives Award, Advanced Collective Award, General Manager Award, Hua Guang Craftsman commendation, etc.
adopts multiple channels, including social recruitment, campus recruitment, talent introduction, and headhunting services, and recruits
talent at different levels through both of?ine and online channels, providing reliable talent support for the Company’s high-quality
development. To retain and motivate core personnel and advance the joint growth of employees and the Company, the Company has launched an em-
ployee stock ownership plan, effectively stimulating employees’intrinsic motivation. At the same time, in order to establish a long-term
Compliant Employment incentive mechanism, the Company closely aligns the interests of shareholders, the Company, and employees. Since 2022, the Company
has repurchased shares each year through centralized bidding for use in subsequent employee stock ownership plans and equity incen-
Through institutional development and management practices, the Company ?rmly opposes any form of discrimination, forced labor, and tives.
child labor. The Company has formulated the Anti-Discrimination Control Policy, providing all employees with fair and reasonable employ-
ment opportunities and humane treatment, and opposing any discriminatory behavior based on ethnicity, religion, gender, age, or other
factors. Anti-discrimination requirements are strictly implemented throughout all stages of employment, including recruitment, hiring,
Democratic Communication
and promotion. The Company has formulated the Special Protection Policy for Female Employees, requiring that female employees’
The Company respects employees’rights to democratic management and collective bar-
wages shall not be reduced, nor shall they be dismissed, due to pregnancy or childbirth. The Company strictly follows the principle of
gaining, has established a labor union, and convenes employee representative congresses
gender equality and supports women’s career development and personal growth. The Company strictly complies with relevant laws, reg-
in accordance with laws and regulations. The Company always places employee demands
ulations, and international labor conventions, and has formulated the Control System on Prohibition of Child Labor and Remedial Mea-
in an important position and widely listens to employees’voices through diversi?ed com-
sures, which explicitly prohibits the employment of child labor. During recruitment, the age information of applicants is strictly veri?ed to
munication channels such as employee symposiums, thematic interviews, and the Chair-
identify and eliminate child labor at the source. At the same time, the Company ?rmly opposes forced labor and ensures that all employ-
man’s mailbox, promptly understanding the practical dif?culties employees encounter in
ment relationships are based on the voluntary consent of both parties.
work and life and promoting effective solutions.
Compensation and Bene?ts The Company regards employee satisfaction surveys as a key means of proactively under-
standing employees’opinions. It regularly conducts satisfaction surveys for all employees,
as well as special satisfaction surveys regarding dormitories and canteens. For de?ciencies
Advocates the concept of“contributor-oriented”management and has formulated and implemented the Compensation Management
identi?ed in the surveys, the Company conducts systematic analysis and assessment,
Policy and the Performance Appraisal Management Measures. Based on job nature, the Company has established a differentiated com-
formulates corrective measures, and requires responsible departments to implement
pensation system and determines compensation levels according to employees’positions, capabilities, performance, and other factors,
them within a speci?ed time limit. During the reporting period, the Company conducted an
ensuring that employee compensation is fair and reasonable. Employee compensation consists of base salary, monthly performance
employee satisfaction survey covering all employees, issuing a total of 681 questionnaires
bonuses, additional allowances, year-end performance awards, and equity incentives. Certain categories of positions are also entitled to
and receiving 650 responses, with employee satisfaction reaching 97.15%.
skill-based pay, project rewards, and excess sales performance rewards. At the same time, the Company adjusts compensation annually
according to industry and market conditions to maintain competitive employee remuneration.
The Company organizes employees to sign the Personal Per-
formance Commitment Letter every year, records the ?nal During the reporting period,
appraisal results in the Summary of the Company’s Year-end issuing a total of questionnaires receiving responses employee satisfaction reaching
Employee Appraisal, and uses the performance appraisal
results as the basis for decisions on employee promotion,
demotion, and year-end bene?ts. Employees may appeal the
Employee satisfaction
result s of their per formance evaluations. The Human
survey poster
Resources and Administration Center will respond within
three working days upon receipt of the appeal and provide
timely feedback after the matter has been handled.
The Company has formulated the Company Allowance and Employee Care
Bene?ts Policy, providing employees with extensive bene?ts
protection. The Company strictly purchases ?ve social insur- The Company always practices the“people-oriented”philosophy and provides comprehensive care for employees’physical and mental
ances and one housing fund for employees in accordance health, life, and development. In terms of material support, the Company has established a charity fund for employees in need, providing
with legal requirements, and on this basis provides a variety targeted ?nancial assistance to employees’families facing dif?culties. In terms of leisure life, the Company has built supporting recre-
of additional bene?ts, including quality dormitories, staff ational facilities such as a sports center, gym, and book bar for employees, and extensively carries out cultural and sports activities to
canteens, supplementar y medical insurance, and annual foster a healthy, positive, warm, and harmonious corporate atmosphere. Through a series of practical initiatives, the Company effectively
Staff canteen and dormitories
medical check-ups. enhances employees’sense of belonging, happiness, and security, allowing every employee to feel the Company’ s respect and care.
Case Care for Retired Employees Case Xinhua Class Team-Building Activity
The Company has established a sound care In May 2025, the Company organized
mechanism for retired employees, conveying the Xinhua Class team-building
respect and recognition for their contribu- a c t i v i t y, a r r a n g i n g a s e r i e s o f
tions during employment through sustained team-building activities for trainees,
emotional connection and welfare. The Com- encouraging them to share growth
pany has organized Double Ninth Festival experiences, and providing multidi-
hiking activities for retired employees for 23 mensional guidance ranging from
consecutive years, invites retired employees business skills and professional
to annual gala gatherings ever y year, and qualities to interpersonal relation-
joins them in witnessing major celebratory ships. Through an approach that
events, enabling retired employees to feel combines education with enjoy-
the Company’ s respect and warmth. ment, the activity helped trainees
Inviting retired employees to participate
complete t he t r ansit ion from Xinhua Class team-building activity
in the anniversary celebration
campus to the workplace.
The Company values employees’physical and mental health, and enables employees to feel the Company’s care and warmth outside of
work through multidimensional and normalized care initiatives.
Case Hosting the 30th Anniversary Family Day Event
In August 2025, the Company held its 30th Anniversary Family Day event, inviting employees and their children to visit the Com-
pany and jointly experience its transformation and achievements over the past 30 years. Through interactive activities such as
fun games and calligraphy and painting exhibitions, family members shared in the Company’s development achievements. The
event not only conveyed the warmth of the enterprise, but also deepened employees’and their families’sense of belonging
and emotional connection.
Distribution of Dragon Boat Festival gifts Health consultation at the Convenient Services Day
The Company places great importance on employees’cultural and recreational life. By creating platforms for showcasing talents and
organizing diversi?ed activities such as sports competitions, knowledge contests, and outdoor development programs, the Company
effectively stimulates employee enthusiasm and enhances teamwork and trust.
Hua Guang 30th Anniversary Family Day Event
Tug-of-war competition Basketball game Management team hiking event
The Company continues to improve employee living facilities and is equipped with various leisure venues to meet employees’needs for
physical exercise, mental relaxation, and health management, effectively enhancing employees’sense of happiness and belonging.
Employee Training
The Company has established a scienti?c and comprehensive training management system. Through measures such as needs identi?ca-
tion, plan formulation, training implementation, effectiveness evaluation, and continuous improvement, it has formed a closed-loop
training mechanism that enhances employees’professional skills and overall capability.
The Company uses methods such as analysis, surveys, talent review, and 360-degree evaluation to identify training needs at both the
organizational and individual levels from multiple dimensions. Based on the analysis results, the Company formulates the Annual Training
Plan, which is implemented upon approval by the General Manager. The training plan provides diversi?ed courses for different job levels
and is supported by advanced teaching facilities and an internal trainer team. During the training process, the Company evaluates training
effectiveness from four dimensions: reaction, learning, behavior, and results, and promptly tracks trainee satisfaction, knowledge mas-
tery, work behavior improvement, and achievement transformation. Based on evaluation results, the Company continue to optimize train-
Employee sports center Employee library Employee gym
ing processes, improves institutional norms, establishes an HRBP team, and drives the standardization and re?nement of training to
ensure that the training system dynamically adapts to the Company’ s development needs.
For employees at different levels, the Company has established the tiered“SiHua Plan”development system. Through theoretical
Employee Development instruction, on-site practical training, layered and graded development, and job rotation training, the Company has established and
improved its talent development mechanism and formed a development ecosystem covering the entire employee career cycle.
Career Development Year
The Company has formulated the Measures for Employee Position Promotion Management, providing a clear institutional basis for em-
ployee career development and ensuring that promotion evaluations are carried out in an orderly manner each year. The Company has year Guanghua Plan
established a career development system that combines vertical promotion with horizontal development In terms of vertical promotion,
the Company has established a“dual-track”career development system. The management track is structured in tiers of“junior manage- For middle-level and
year Jinghua Plan above managers, external
ment ? middle management ? senior management,”and strictly follows cadre appointment standards to ensure that selected managers
experts are introduced for
possess outstanding leadership and comprehensive qualities. The professional and technical track follows the path of“assistant ? inter- long-term coaching, focus-
mediate ? senior ? principal ? senior principal,”encouraging technical personnel to deepen their expertise in professional and technical Fenghua Plan and domain exper t s, this ing on s t r ate g ic imple -
year
?elds and lead teams in tackling complex technical challenges. In terms of horizontal development, the Company has divided career paths plan enhances their profes- mentation, process opti-
into ?ve occupational groups:“management group ? sales group ? technical group ? professional group ? operations group,”providing sional depth and manage- mi z at ion , p er for mance
Xinhua Plan ment quality through management , and other
employees with opportunities for lateral job rotation and supporting quali?ed employees in expanding their career space based on their year professional skills of in-ser-
in-company guidance from topics, and benchmarking
capabilities and job requirements. v i c e e m p lo y e e s t hr o u g h
For newly recruited university gradu- experts, small-class practi- study tours are organized
specialized training in APQP,
In terms of supporting measures, the Company provides all employees with fair opportunities for internal competition and lateral mobili- ates, a half-year development plan is c al comb at t r aining , and to cultivate a core man-
processes, sales, intelligent
ty, encourages and supports employees in participating in national, provincial, municipal, and district talent evaluations, professional title provided, covering militar y training, management capabilit y agement team with an
manufac turing, and other
assessments, and vocational skill certi?cations, and provides policy interpretation and application guidance to help employees enhance cultural integration, job rotation train- training. overall strategic vision.
areas, improving their prac-
ing, and team-building activities, help-
their professional competence and achieve a balanced outcome for both the Company’ s interests and employees’professional value. tical job capabilities from
ing them quickly identify with the Com-
multiple dimensions.
pany culture and become competent in
Employee Career Development Path their positions.
Job Grade Role Channel Diagram
Grade 10 Case Mentorship-Based Coaching Model in Frontline Workshops
Grade 9 …… ……
Grade 8 Senior Expert Vice President Senior Expert The Company drives a mentorship-based coaching model for
frontline employees. When new employees join, the workshop
Grade 7 Advanced Expert Director Advanced Expert director assigns experienced employees with strong skills and
good teaching ability as coaches. Through hands-on instruction,
Grade 6 Expert Department Head Expert
follow-up guidance, and recorded feedback, new employees are
helped to quickly master operational skills and meet the
Grade 5 Backbone Employee Section Chief Backbone Employee
requirements for formal job placement.
Grade 4 Experienced Employee Experienced Employee
Grade 3 Beginner Beginner On-site“master-apprentice”job teaching
Social Welfare
Case Hosting the Manufacturing Department Skills Competition During the reporting period,
The Company’s senior management attaches great impor-
tance to public welfare and integrates social responsibility the Company’s cumulative charitable donations amounted
into its corporate development strategy. Each year, it allo-
In October 2025, the Company hosted the Yuhang Dis- cates a dedicated public welfare budget and actively gives
trict Skills Competition, actively organizing employees back to society through multiple channels. During the
to participate and achieve excellent results. Through reporting period, the Company’s cumulative charitable
using competition to promote learning and practice, donations amounted to RMB 904,900.
the event provided employees with a platform to
showcase their skills and engage in external exchang-
es, effectively stimulating enthusiasm among all staff
Social Welfare Practices in 2025
to learn and compare skills, fostering a strong atmo-
sphere of professional study and research, and pow- The Company actively supported the Hangzhou Tennis The Company has always cared about and supported
erfully promoting the cultivation of skilled talent and Association in organizing the Mixed Doubles Tennis regional education. Since 2021, it has made donations to
the innovative development of the enterprise. Championship, vigorously advocating a healthy and posi- Tianyuan School · Hangzhou Huilan Future Sci-Tech City
tive sports culture. Since 2024, the Company has spon- School on an ongoing basis with a focus on supporting
sored this event on an ongoing basis, using sports as a the development of aesthetic education and science edu-
bond to further enhance its brand image and social in?u- cation, thereby contributing through practical actions to
ence. the high-quality development of education in Yuhang.
Continuing to Contribute to Society
Rural Revitalization
Hua Guang actively participates in rural revitalization initiatives and contributes to common prosperity through practical actions. During
the reporting period, the Company invested a total of RMB 402,800 in rural revitalization-related activities and steadily carried out a
number of rural assistance and co-development initiatives.
Each year, the Company continues The Company actively participated The Company org anized Par t y
to carry out summer visiting activ- in the“Zhechuan Mountain-Sea members to participate in a series
Rural Revitalization Practices in 2025 ities, delivering cooling fruits and Af fection”donation and caring of volunteer activities, such as the
care to frontline public security initiative for schools in Tibetan “Jingshan Ancient Trail Hiking and
The Company actively participated in T he Comp any ac t i vely c ar r ie d ou t The Company supported the Liangzhu police of?cers, traf?c police of?- areas. The Chairman personally M oun t ain C le aning Volun t e er
the Common Prosperity Demonstration Spring Festival care initiatives, visiting FBB Triple Crown League for Beautiful cers, and ?re rescue personnel traveled to Tibet an regions to Activity”and the“Into the Moun-
Project in the Xiajiaqiao area of Xingang families in dif?culty in Gangnan Village, and Harmonious Villages organized by who remain at their posts. deliver books and warmth to chil- tains, Leave No Trace”mountain
Village, Liangzhu Subdistrict, Yuhang Liangzhu, and Fengkou Village, Renhe, Liangzhu Subdistrict, enriching rural dren, suppor t ing educ at ional cleaning volunteer service activity,
District, contributing to the improve- delivering corporate warmth and festive cultural and sports life and contributing equity with compassion serving society and protecting the
ment in quality and ef?ciency of public greetings, while also caring for children to the development of spiritual civiliza- sound ecologic al landsc ape
welfare initiatives for rural revitaliza- in extreme hardship in the local area. tion in harmonious rural communities. through practical actions.
tion in the northern Liangzhu area.
Community Development Upholding the Quality Assurance Line
The Company has always integrated its own development into the broader local context and ful?lls its corporate social responsibility
through practical actions. The Company strengthens communication with local communities, gains an in-depth understanding of resi-
dents’needs and concerns, and provides targeted support. In terms of local procurement, the Company actively purchases local agricul-
tural products to help residents increase their income and achieve prosperity. In terms of local employment, it actively recruits local resi-
Governance
dents and regularly carries out vocational skills training, pre-job training, and employment guidance services, to continue improving the
overall quality and employability of the local workforce. As of the end of the reporting period, the number of locally employed staff Robust quality management is the foundation for maintaining market reputation and achieving steady development. Hua Guang has
reached 188, accounting for 26% of the total. established a Quality and Systems Management Center, which is responsible for product quality control and quality system management.
In compliance with relevant laws and regulations and benchmarking against advanced domestic and international quality standards, the
Company has formulated and implemented normative documents such as the Rigid Quality Management Measures, the Hua Guang
Inspection Management Policy, the Product Audit Management Policy, and the Process Inspection Guidelines, laying a solid institutional
foundation for quality management.
As of the end of the reporting period, The Company consistently ful?lls its commitment to product quality and actively carries out external management system certi?cations
and audits. During the reporting period, the Company passed the annual surveillance audits of ISO9001 Quality Management System cer-
the number of locally employed staff reached accounting for the total
ti?cation and IATF 16949 Automotive Quality Management System certi?cation, as well as ISO 10012 Measurement Management System
certi?cation, the annual audit of the Australian Watermark product certi?cation, and Zhejiang Manufacturing certi?cation. In addition, the
Company’ s self-established chemical laboratory passed CNAS accreditation.
Strategy
Company has established a risk identi?cation mechanism covering product quality and safety. Each year, it conducts assessments and
analyses of quality management-related risks and formulates and implements response measures for identi?ed risks to ensure that qual-
Community Development Practices in 2025 ity risks remain under control at all times.
The Company actively practiced the model of“supporting through purchasing and promoting production through sales”by signing an
Risk Description Response Measures
agricultural products subscription agreement with Puning Village, Renhe, under the Yuren Common Prosperity Assistance Group, effec-
tively broadening channels for increasing the collective village economy and farmers’income. Risks in production process control: Deviations in Introduce digital quality management tools to enable real-time monitoring and data collec-
process execution and parameters, and inadequate tion at key production process nodes.
process quality monitoring may lead to substan- Strengthen standardization of process execution and in-process inspection, shifting quality
dard product quality. control from post-inspection to process prevention.
Supply chain source risks: Fluctuations in the quali- Establish a full lifecycle supplier management mechanism covering supplier access, evalua-
ty of upstream raw and auxiliar y materials and tion, and dynamic assessment; strengthen incoming material inspection and batch control;
components, or inadequate supplier management, and embed quality requirements throughout the supplier cooperation process.
may be transmitted to end products, creating qual- Drive upstream suppliers to improve their own quality control systems and achieve coordi-
ity and safety risks. nated prevention and control of supply chain quality risks.
Compliance and standards adaptation risks: Upgrading Establish a full-chain product quality traceability system to ensure traceability of product
industry quality supervision standards and increasingly origin and destination.
stringent product compliance requirements may lead to Establish a rapid response mechanism for quality risks to enable precise identi?cation and
compliance risks if not updated in a timely manner. swift handling of quality issues.
Comply with national and industry quality and safety laws, regulations, and standards;
Traceability and emergency response risks: Incom- establish and improve internal quality management systems and operational procedures;
plete full-process traceability systems and insuf?- and clarify quality responsibilities at each stage.
cient response and recall ef ?ciency for quality Track updates to regulatory standards in real time and promptly optimize production and
issues may expand risk impacts and harm consum- control processes to ensure full-process compliant operations.
er rights and brand credibility. Conduct regular company-wide quality training and ESG responsibility awareness programs
to strengthen overall quality and safety awareness.
Measurement and data control risks: Non-standard Utilize the QMS module to conduct full-process quality data analysis, identify root causes of
calibration of measuring equipment and missing quality issues, establish closed-loop quality improvement, and continuously optimize
process quality data may hinder accurate control production processes and control procedures.
of key quality points and increase blind spots in Conduct regular internal quality audits and risk inspections, establish early warning mecha-
quality management. nisms, and proactively identify and mitigate potential quality risks.
Impact, Risk and Opportunity Management Customer Service and Information Security
Based on the characteristics of the brazing materials industry and its own technological advantages, the Company has established a
quality management model driven by dual engines of“technological innovation”and“digital and intelligent manufacturing,”covering the
entire product lifecycle.
Customer Service
Raw Materials and Suppliers Production Process Finished Product Shipment After-Sales Service
Hua Guang is committed to providing customers with high-quality products and comprehensive services, continuously optimizing cus-
tomer experience and safeguarding customer rights through various measures. The Company has formulated internal systems such as
Implement strict supplier Integrate AI-based auto- Implement strict OQC full Establish an ef?cient cus- the Customer Satisfaction Monitoring and Control Procedure and the Customer Complaint Handling Control Procedure to ensure stan-
access and dynamic grad- mated inspection and spe- inspection processes, cov- tomer complaint handling dardized and ef?cient pre-sales, in-sales, and after-sales services.
ing systems, and conduct cial characteristic manage- ering performance, reli- mechanism to ensure all The Company continue to monitor customer satisfaction. The sales department interfaces with customers and regularly understands
audits of key raw material ment to establish a quality ability, and export compli- complaints are properly their satisfaction with the Company’s products, technology, delivery, and after-sales services, and conducts analysis and improvement
suppliers. monitoring network cover- ance testing. addressed. based on feedback. During the reporting period, customer feedback was collected through satisfaction surveys: 80 responses were
Rely on the measurement ing the entire production Use unique batch coding to Conduct regular manage- received from domestic customers, with a satisfaction rate of 97%; 4 responses were received from international customers, with a satis-
management system to line. achieve full-dimensional ment reviews based on cus- faction rate of 100%.
carry out automated full Use the QMS system to traceability from raw ma- tomer satisfaction data to The Company has established a dedicated after-sales service team composed of sales, technical support, and quality management per-
inspection of key incom- collect process data in real terials to customers. drive optimization of quality sonnel. Customer complaints are received through sales channels and transmitted to relevant departments via the OA system. After anal-
ing material indicators, time, strictly control SPC costs and product iteration, ysis, recti?cation plans are formulated and feedback is promptly provided to customers. During the reporting period, the Company
ensuring“zero-defec t” ?uctuations, and ensure continuously enhancing received a total of 47 customer complaints, with a resolution rate of 100%, and maintained customer trust in the Company’s brand
raw material entry. stable process capability. customer loyalty. through continuous improvement.
The Company actively participates in various exhibitions to showcase its latest products while engaging in in-depth exchanges with cus-
tomers to gain valuable market insights, thereby driving continuous innovation in products and services.
The Company has established a product quality and safety traceability system covering the entire lifecycle, achieving“traceable sources,
traceable destinations, accountable responsibilities, and controllable risks.”
Source Traceability: Estab- Production Traceability: Inspec tion Traceability: Logistics and Sales Trace-
lish quali?ed supplier Assign unique QR codes to Archive inspection data for ability: Record warehous-
archives; implement batch produc t s to record pro- incoming materials, in-pro- ing, outbound, transporta-
management for raw ma- duction processes, equip- cess checks, and ?nished tion, and sales ?ow infor-
terials with one code per ment, personnel, process products; link inspection mation to enable full
batch; and record all key parameters, and in-pro- reports to product batches; tracking of product circu-
information in the system ces s inspec t ion s t atus , and strictly prohibit ship- lation.
to strictly control quality enabling full traceability of ment of non-conforming
at the source. the production process. products.
The Company actively advances the digitalization of quality management. By introducing the MES system and QMS quality management Participation in electronica China Participation in electronica China
modules, it has realized automatic collection, analysis, and early warning of process quality data, effectively improving process quality (Munich Shanghai Electronics Fair) (Munich Shanghai Electronics Fair)
control capability and the ef?ciency of handling quality issues.
The Company conducts multi-dimensional quality training programs. For frontline employees, it provides job skills and quality awareness
training; for external technical support personnel, it organizes welding technology and application training; for quality management per-
sonnel, it conducts VDA 6.3 specialized training; and for all employees, it delivers training on quality system and procedure training.
Through training activities that combine theory and practice and cover multiple levels, the Company has effectively improved employees’
overall quality awareness and practical capabilities, fostering a strong culture of quality.
Indicators and Targets Hua Guang’s 2025 Quality
Management Target
The Company consistently advances quality management with high standards
and strict requirements, steadily improving product stability, reliability, and
consistency. During the reporting period, the Company achieved a 100% batch
No major product safety or d
inspection coverage rate, a 99% product sampling pass rate, and a 99.90%
ie ve
product ex-factory pass rate. No major product safety or quality liability inci- quality liability incidents A ch
dents occurred throughout the year, and quality and safety management Participation in China Participation in Thailand NEPCON
remained stable and orderly. Refrigeration Expo Electronics Exhibition
Information Security and Customer Privacy Protection Building a Balanced Supply Ecosystem
The Company has established and improved its informa-
tion security management system and has formulated
and strictly implemented internal systems such as the
Information Data Security Management System, the Em-
Supplier Management
ployee Information Security Management System, and the
Con?dential Document Management System. The Compa-
Full Lifecycle Supplier Management
ny strengthens technical protection and compliance man-
agement. As of the end of the reporting period, it had
passed the Level 3 Certi?cation of the Multi-Level Protec- Effective supply chain management is an important foundation for Hua Guang to achieve high-quality development and a key driver for
tion Scheme (MLPS) for cybersecurity. collaborative innovation and shared growth across the industrial chain. In compliance with laws and regulations such as the Tendering
and Bidding Law of the People’s Republic of China, the Company has formulated and implemented a series of internal systems, including
the Supplier Management Policy. The Company has established a full lifecycle supplier management system covering key stages such as
supplier quali?cation review, performance evaluation, and exit/elimination, ensuring supplier quality while enhancing risk resilience and
Cybersecurity MLPS Level 3 Certi?cation supply chain ?exibility.
The Company has established a comprehensive information security and customer privacy protection mechanism. At the internal gover- Supplier full life-cycle management model
nance level, information security responsibilities are incorporated into the Employee Handbook, with clearly de?ned management red
lines and an annual dynamic update mechanism to ensure that employees’compliance awareness remains up to date. In supply chain Conduct quali?cation reviews, basic information veri?cation, and on-site inspections of
management, the Company requires all suppliers to sign Con?dentiality Agreements, clearly de?ning con?dentiality responsibilities and potential suppliers, and issue audit conclusions.
effectively safeguarding patented technologies, technical secrets, and commercial secrets. In terms of customer privacy protection, the Supplier Incorporate ESG factors such as management system certi?cations (e.g., ISO 9001, ISO
Company strictly follows the principles of“minimum necessity”and“authorized consent,”implementing full lifecycle data encryption Admission Review 45001, ISO 14001), environmental impact assessment reports, and energy-saving and envi-
management and hierarchical access control to reduce the risk of customer privacy leakage at the source. ronmental protection certi?cations into the review to ensure suppliers full?ll the Compa-
The Company conducts systematic information security risk assessments annually, classi?es risks according to their impact levels, and ny’s sustainability requirements.
formulates targeted emergency response procedures to ensure timely and effective responses to risk incidents. The Company continues
to strengthen the management of con?dential documents by implementing graded control based on the nature of information and con- Implement monthly and annual performance evaluations of suppliers, focusing on core
Supplier
sequences of leakage, assigning dedicated personnel for management, and requiring all employees to strictly follow procedures when dimensions such as quality performance, delivery capability, and cooperation level.
Performance
accessing and using con?dential information. At the same time, the Company regularly organizes professional training for information Evaluation For suppliers with unsatisfactory performance, issue formal notices requiring recti?cation
security management personnel to continuously enhance their awareness and professional capabilities. During the reporting period, the within a speci?ed timeframe and track the implementation of corrective measures.
Company did not experience any penalties related to information security, nor any incidents of customer privacy breaches.
Initiate elimination procedures for suppliers rated as“unquali?ed”for three consecutive
months in performance evaluations.
Other triggers for elimination include major incidents related to quality, delivery, con?den-
Supplier
Elimination tiality breaches, or integrity violations; serious ?nancial problems; or insuf?cient technical
development capability to meet the Company’ s requirements.
Prior to elimination, assess the impact, follow approval procedures, and carry out deactiva-
tion and account settlement operations.
During the reporting period, the Company actively drived the development of a supplier whitelist mechanism and formulated the Global
Supplier Whitelist Management Procedures and Standards, providing clear criteria for selecting high-quality strategic suppliers that meet
the standards of“long-term cooperation, shared risk, and prioritized resource allocation,”thereby further enhancing overall supply chain
operational ef?ciency and competitiveness.
Supply Chain Risk Management
Strong supply chain risk control capability is an important safeguard for stable business operations. The Company has formulated the
Supplier Risk Assessment and Emergency Management System and continuously identi?es and manages unstable factors in the supply
chain through scienti?c and systematic management approaches. A supply chain crisis response team led by the supply chain manage-
ment team has been established, with the Procurement Management Department serving as the central unit for risk management,
responsible for annual supplier risk assessments, formulation of response plans, and supervision of implementation.
In the risk analysis phase, the Company identi?es potential supplier risks and conducts quantitative assessments based on the likelihood
of occurrence and degree of impact, providing a basis for hierarchical risk control. In the risk recti?cation phase, analysis results are
incorporated into the Procurement Risk Management Countermeasure Table, with targeted response strategies formulated, responsible
departments and recti?cation deadlines clari?ed, and progress tracked through the Supplier Risk Management Tracking Table.
The Company continue to strengthen its proactive supply chain risk management capabilities. At the early warning level, it has estab-
lished a procurement risk early warning mechanism covering areas such as policy, market conditions, natural disasters, quality, and integ-
rity, enabling dynamic monitoring of potential risks. After each risk event, the Company prepares summary reports to review lessons
learned and improve management processes. At the prevention level, the Company signs documents such as Procurement Framework
Agreements, Con?dentiality Agreements, and Quality Assurance Agreements with suppliers, actively deploys multiple supply sources,
optimizes inventory management, and provides training to address improvement areas of suppliers, thereby ensuring a stable and ef?-
cient supply chain.
Sustainable Supply Chain
Responsible Supply Chain
A responsible supply chain is a cornerstone for achieving long-term value and effective risk management, as well as a key measure for
promoting healthy industry development and global sustainable development goals. The Company has formulated the Supplier CSR
Guidelines, requiring suppliers to provide a safe working environment, safeguard employees’basic rights, and ful?ll environmental
responsibilities during production. All suppliers are required to comply with these guidelines, and the Company conducts periodic on-site
visits to supplier factories. Through veri?cation of wage payments, working hour records, employee rosters, and related documentation,
the Company evaluates supplier compliance. For suppliers that violate the guidelines, the Company will take measures based on the
severity of the situation, including termination of procurement contracts or legal action.
Key Topics of the Supplier CSR Guidelines
Oppose employment discrimination
Oppose forced labor
Prohibit child labor
Labor Rights and
Protect young workers
Human Rights
Ensure reasonable and lawful working hours
Provide compliant wages and bene?ts
Respect freedom of association
Prevent occupational injuries
Occupational Health
and Safety Prevent chemical exposure
Emergency prevention, preparedness, and response
Con?ict Minerals Management
Con?ict minerals governance is an important issue in global supply chain responsibility management. The Company places great impor-
tance on the compliance and transparency of raw materials, is committed to avoiding the use of con?ict minerals from high-risk regions,
and drives sustainable development and social responsibility. The Company requires suppliers to sign the Con?ict Minerals Control Com-
mitment Letter, ensuring that metals used in products and packaging do not originate from con?ict-affected regions and comply with
Manage hazardous substances
regulatory requirements for key metals such as tin, tantalum, tungsten, and gold. In the event of violations, the Company will take mea-
Regulate solid waste disposal
Environmental sures including product returns, claims for liquidated damages, or contract termination, and require compensation for economic and rep-
Impact Manage wastewater and rainwater discharge
utational losses. Through audits and inspections of suppliers’raw material metal sources, the Company continuously optimizes its con-
Control air emissions
?ict minerals control system and ensures responsible supply chain practices.
Ensure environmental compliance
Fair Treatment of Small and Medium-Sized Enterprises (SMEs)
In addition, regarding suppliers’environmental and occupational health and safety performance during delivery and service processes,
the Company requires suppliers to sign the Environmental, Occupational Health and Safety Commitment Letter. This commitment requires
suppliers to ensure compliant vehicle emissions, standardized storage and transportation of hazardous materials, and proper installation The Company complies with legal requirements such as the Law of the People’s Republic of China on the Promotion of Small and Medi-
of safety protection facilities at construction sites, while complying with the Company’s internal environmental and safety management um-sized Enterprises and treats all partners equally in cooperation. The Company has established a sound contract management system
systems in all activities involving direct contact with the Company. By extending management boundaries from supplier factories to the that clearly de?nes payment terms, amounts, and methods, ensuring timely and full payment to SMEs. During the reporting period, the
delivery end, the Company achieves full-process control over environmental and safety risks in the supply chain. Company did not have any overdue payments to SMEs.
Improving
Corporate
Governance
Supporting the United Nations Sustainable Development Goals:
Advancing the Governance System
The Company strictly regulates the procedures for the convening, proposal submission, holding, and voting of the Shareholders’Meeting
in accordance with laws and regulations such as the Company Law of the People’s Republic of China, as well as the Articles of Association
and the Rules of Procedure for the Shareholders’Meeting. The Company has established effective communication channels with share-
holders, treats all shareholders equally, ensures shareholders’rights to be informed of and participate in major corporate matters, and
guarantees that shareholders are able to fully exercise their rights in accordance with the law. During the reporting period, the Company
Governance Structure convened 5 Shareholders’Meetings and reviewed and approved 18 resolutions.
To further enhance governance effectiveness and optimize management processes, the Company abolished the Supervisory Board during
the reporting period. The relevant powers originally exercised by the Supervisory Board have now been transferred to the Audit Commit-
The Company strictly complies with laws and regulations such as the Company Law of the People’s Republic of China, the Securities Law
tee of the Board of Directors.
of the People’s Republic of China, and the Code of Corporate Governance for Listed Companies, as well as the Articles of Association, to
clarify the powers and responsibilities of each governing body and steadily improve its corporate governance standards. The Company
has established a governance structure centered on the Shareholders’Meeting, the Board of Directors, and senior management, ensuring Board of Directors
clear allocation of powers and responsibilities, standardized operations, mutual coordination, and effective checks and balances among
the authority body, decision-making body, supervisory mechanisms, and management, thereby providing strong organizational support
In accordance with the Articles of Association, the Rules of Procedure for the Board of Directors, and other systems, the Company has
for the Company’ s ef?cient and stable operations.
made clear provisions on the Board’s appointment mechanism, composition, duties and powers, and meeting procedures, providing insti-
tutional support for the standardized performance of the Board’s duties. Directors are elected or replaced by the Shareholders’Meeting
Corporate Governance Structure for a term of three years and may be re-elected upon expiration of their term. Employee directors are elected by the employee represen-
tative congress or employee assembly. During the reporting period, the Company convened an employee representative congress, and
upon approval by the attending employee representatives, added one employee director to the Board of Directors.
Shareholders’Meeting
Board Effectiveness
Board of Directors The Company has established a normalized mechanism for evaluating Board effectiveness and steadily optimizes its governance struc-
ture based on assessment results. During the reporting period, the Board operated ef?ciently and in a standardized manner, with scien-
Strategy Committee Board Of?ce ti?c decision-making and effective oversight: 12 Board meetings were convened, reviewing matters including business decisions, ?nancial
reports, related-party transactions, and the unlocking of the employee stock ownership plan. Directors’participation rate reached 100%,
Remuneration and and the follow-up implementation rate of all resolutions reached 100%, fully demonstrating the standardization and effectiveness of the
Assessment Committee Board’ s performance of duties.
Expert Committee
Nomination Committee Board Independence
Audit Committee The Company has formulated the Administrative Measures for Independent Directors, clearly acknowledging the independence of the
independent directors, proportional requirements, and full-process oversight procedures. In terms of appointment, independent direc-
tors are nominated by the Board of Directors or by shareholders individually or collectively holding more than 1% of the Company’s
Audit and Legal Center Management Team issued shares, and are elected by the Shareholders’Meeting. The term of service of independent directors shall not exceed six years. The
(General Manager, EMT Team) Company requires that independent directors account for no less than one-third of the Board, and that at least one of them be an
accounting professional. In principle, independent directors may serve as independent directors in no more than three domestic listed
companies to ensure they have suf?cient time and energy to perform their duties. As of the end of the reporting period, the Company had
Governance Body Responsibilities 3 independent directors, accounting for 43% of the Board.
As the Company’s highest authority, it exercises important powers in accordance with the Board Diversity
law, including determining the Company’s business policies, reviewing and approving Board
Shareholders’Meeting
reports and investment plans, and serves as an important pillar of the Company’s gover- The Company takes compliance as its foundation, governance as its framework, and professional competence as its core. In selecting
nance system. directors, it considers diversity factors such as ethnicity, nationality, gender, age, and professional background, ensuring that Board mem-
bers have diverse backgrounds and capabilities while aligning with regulatory requirements and the Company’s development strategy.
As the Company’ s decision-making body, it convenes the Shareholders’Meeting, implements Through the Articles of Association and the Working Rules of the Nomination Committee of the Board of Directors, the Company has
resolutions of the Shareholders’Meeting, determines the Company’s business plans and established an institutional system for diversity management.
investment proposals, and is accountable to the Shareholders’Meeting. The Board has As of the end of the reporting period, the Board consisted of 7 members, including several directors with experience in welding materials,
Board of Directors
established four specialized committees: the Strategy Committee, the Audit Committee, the business management, accounting, and law. There were 5 female directors, accounting for 71% of the Board. The age structure is balanced,
Remuneration and Assessment Committee, and the Nomination Committee. Each specialized combining experience with innovation and aligning with the Company’s internationalization and R&D strategy, thereby support
committee operates independently and ef?ciently in accordance with its rules of procedure. high-quality decision-making in long-term.
Gender of Directors Age of Directors
Senior management consists of the General Manager, Deputy General Managers, the Financial Male Female 40 and below 41-50 51 and above
Of?cer, and the Board Secretary. It is responsible for implementing Board resolutions, driving
Senior Management
business development and internal management, and ensuring the continuous and stable
development of the Company’ s operations.
Specialized Committees of the Board Information Disclosure and Investor Relations
The Board has established four specialized committees: the Strategy Committee, the Audit Committee, the Remuneration and Assess-
The Company strictly complies with relevant laws and regulations such as the Administrative Measures for Information Disclosure by
ment Committee, and the Nomination Committee. All committee members are directors who conduct research on professional matters
Listed Companies and has formulated the Information Disclosure Management System, clarifying the principles, content, management
and provide professional recommendations for Board decision-making. During the reporting period, the Company held a total of 15 spe-
matters, and procedures for information disclosure. During the reporting period, the Company carried out information disclosure work in
cialized committee meetings, including 7 Audit Committee meetings, 3 Remuneration and Assessment Committee meetings, and 5 Strate-
a compliant and orderly manner, with no material disclosure errors or violations, thereby providing a solid basis for rational deci-
gy Committee meetings, effectively ful?lling the responsibilities of the specialized committees.
sion-making by shareholders.
The Company attaches great importance to shareholders’rights to express opinions and participate in corporate governance. It has
Committee Name Responsibilities formulated the Investor Relations Management System, which clearly de?nes communication channels, methods, division of responsibili-
ties, and feedback mechanisms for shareholder communication. The Company incorporates shareholder communication into its annual
Study and make recommendations on the Company’s long-term development
work plan and integrates it with information disclosure and investor rights protection to form a long-term mechanism. During the report-
strategy and planning.
Strategy Committee ing period, the Company communicated with investors through channels including the Shareholders’Meeting, online interactive plat-
Study and make recommendations on major investment and ?nancing plans,
forms, institutional research and brie?ng sessions, and direct contacts, responding promptly to investor concerns and effectively main-
major capital operations, and major asset operation projects.
taining relationships with a broad base of investors.
Exercise the powers of the Supervisory Board as stipulated in the Company Law
Audit Committee
of the People’s Republic of China.
Review the Company’ s ?nancial information and related disclosures.
Hua Guang’s Investor Communication in 2025
Supervise and evaluate internal and external audit work and internal controls.
Responded to 145 investor inquiries on the SSE e-Interaction platform.
Online
Formulate assessment standards for directors and senior management and Communication Held results brie?ng sessions through the SSE Roadshow Center and P5W.net.
conduct assessments.
Remuneration and
Assessment Committee Formulate and review remuneration policies and plans for directors and senior
Actively received securities analysts, fund managers, and individual investors.
management, including remuneration determination mechanisms, deci- Of?ine
sion-making procedures, payment arrangements, and clawback arrangements. Activities Conducted institutional surveys, reverse roadshows, and other activities covering different types
of shareholder groups.
Formulate standards and procedures for the selection of directors and senior
management.
Nomination Committee
Select and review candidates for directors and senior management and their
quali?cations.
Executive Compensation
The Company has established a diversi?ed executive compensation structure of“?xed compensation + performance-based compensa-
tion + long-term incentives,”ensuring that executive remuneration is closely linked to both Company performance and individual contri-
butions, while balancing short-term and long-term incentives. Executive remuneration plans are drafted by the Remuneration and
Assessment Committee, reviewed by the Board of Directors, and ultimately approved by the Shareholders’Meeting. Executive remunera-
tion consists of ?xed salary, performance salary, bonuses, and long-term incentives. Long-term incentives are linked to the core manage-
Upholding Integrity
ment team through the employee stock ownership plan and equity incentives, with unlocking conditions tied to the Company’s net pro?t
and individual performance, thereby achieving“bene?t sharing and risk sharing.”The Company has also established a clawback and with-
holding mechanism for executive compensation to ensure strict compliance by executives with laws, regulations, and the Articles of Asso-
ciation, and to ensure their loyal performance of duties. The relevant proposals for this mechanism were reviewed and approved by the
Meeting.
Business Ethics
Con?ict of Interest Management Hua Guang strictly complies with laws and regulations such as the Anti-Unfair Competition Law of the People’s Republic of China and the
Anti-Monopoly Law of the People’s Republic of China, and has established the Anti-Monopoly and Fair Competition Management System,
The Company has established a full-chain con?ict of interest governance mechanism covering“identi?cation ? recusal ? review ? supervi- which clearly de?nes unfair competition behaviors such as false advertising, monopolistic practices, and infringement of trade secrets,
sion ? disclosure.”Through systems such as the Related-Party Transaction Management Policy, the Independent Director Working Policy, and regulates the Company’s activities in business development, investment and mergers, and market transactions. The Company con-
and the Articles of Association, the Company clari?es the criteria for identifying related-party relationships, strictly implements recusal tinue to track developments in laws and regulations related to anti-unfair competition and assesses business ethics risks in the activities
procedures for related directors and related shareholders in voting, and sets graded review authorities according to transaction amounts, it undertakes. At the same time, it integrates anti-monopoly and fair competition compliance into daily management practices and con-
ensuring that all related-party transaction decisions are objective and fair. The Company’s independent directors, Audit Committee, and tinuously strengthens employees’awareness of anti-monopoly and fair competition through activities such as interpretation of anti-mo-
Nomination Committee conduct professional and independent reviews of related-party transactions and director con?ict of interest mat- nopoly laws and compliance training. During the reporting period, the Company was not involved in any litigation or administrative penal-
ters, forming effective oversight. ties resulting from monopoly or unfair competition.
Anti-Corruption and Anti-Bribery Strengthening Internal Control and Compliance
The Company has established and operates an effective anti-corruption and anti-bribery management mechanism, forming an anti-cor-
ruption framework characterized by top-down coordination and full employee participation.
In terms of system development, the Company has formulated the Provisions on Employee Integrity and Honest Practice, which apply to
all employees and business activities of the Company. These provisions clarify standards for employee integrity and de?ne corrupt and
Compliance Management
bribery-related conduct, while also establishing procedures for handling violations. Once a violation is identi?ed, the Company will take
action according to the nature of the violation; where suspected illegal or criminal conduct is involved, the matter will be resolutely trans- The Company always takes compliant operations as its bottom line and promotes the transformation of compliance management from
ferred to judicial authorities for investigation and accountability in accordance with the law. At the same time, the Company requires all “post-event supervision and correction”to“prior rule establishment and in-process standardized guidance,”striving to build a
employees to sign the Integrity Commitment Letter, further implementing integrity management responsibilities. high-standard compliance management system adapted to the needs of international development.
The Company regularly assesses corruption risks and formulates and implements corresponding solutions for identi?ed risks. In addition, In terms of document standardization, the Company has integrated existing resources to build a legal document template library covering
each department is required to regularly carry out integrity inspections and conduct self-examination and self-correction against the multiple business scenarios, continuously improving document quality and compliance. At the same time, it has established an informa-
Provisions on Employee Integrity and Honest Practice, while proactively reporting any violations or abnormal situations. During the tion-based archive management system to realize visualized and categorized management of archived materials, providing more ef?cient
reporting period, the Company did not experience any litigation or major penalties arising from commercial bribery or corruption, and the compliance information support for business operations across departments.
effectiveness of its integrity risk prevention and control was signi?cant. For overseas business, during the reporting period the Company completed the review of the organizational structure and allocation of
The Company extends integrity requirements to supply chain management by embedding integrity covenants into the procurement con- powers and responsibilities of overseas subsidiaries, and formulated the Statement of Powers and Responsibilities of Subsidiary Legal
tract framework, clearly prohibiting partners from providing gifts, gratuities, agency fees, rebates, or free travel invitations to Company Representatives, Signing Directors, and Corporate Representatives, promoting the standardized implementation of governance structures
employees and their relatives. For partners who violate these covenants, the Company reserves the right to terminate contracts and for overseas subsidiaries. At the same time, the Company provides full-process compliance support for cross-border investment and
pursue legal liability, ensuring a transparent and compliant supply chain. transactions in overseas business, including legal due diligence, registration compliance, funding compliance, and customs compliance, to
The Company continues to strengthen its culture of integrity through anti-corruption and anti-bribery training, continuously enhancing ensure that overseas business expansion complies with local laws and regulations.
employees’self-discipline awareness and establishing a healthy and positive corporate culture. In addition, the Company carried out diversi?ed compliance training activities to strengthen compliance awareness across all employees.
Through training courses such as Special Training on Legal Documentation, the Company enhances the document drafting capabilities
and legal literacy of professionals. During the reporting period, the Company organized 3 cross-department legal awareness activities
Whistleblowing Mechanism and 10 routine legal interpretation and training sessions, covering key areas such as integrity and compliance, labor relations, and intel-
lectual property, with cumulative training provided to more than 400 participants.
The Company has established and improved a whistleblowing and supervision mechanism, opening diversi?ed reporting channels to all
employees and other stakeholders, including mail, email, telephone, and Enterprise WeChat, to ensure that reporting channels are
smooth and convenient. The Audit and Legal Center, as the department primarily responsible for whistleblowing management, strictly
implements procedures for the acceptance, investigation, and feedback of reports, ensuring that all reported matters are handled in a
timely and standardized manner.
The Company implements whistleblower protection in accordance with laws and regulations, establishes and improves internal con?den-
tiality mechanisms, and clearly de?nes con?dentiality management requirements for whistleblowing information. The Company strictly
protects the whistleblower’s personal information, such as name and address, as well as the content of the report. The Company ?rmly
opposes the disclosure of whistleblower information and retaliation against whistleblowers. Once veri?ed, such conduct will be dealt with
seriously to effectively protect the lawful rights and interests of whistleblowers.
Whistleblowing Channels
Conducting con?dentiality warning Conducting special training
education and training on legal documentation
Telephone Email Mailing Address Internal Control
Fengyun Road, Renhe Subdistrict, the Guidelines for the Evaluation of Enterprise Internal Control, Hua Guang has formulated the Administrative Measures for Internal Con-
Yuhang District, Hangzhou trol Evaluation to objectively and fairly evaluate the internal control status of the Company and its branches and subsidiaries, promptly
identify internal control de?ciencies and risks, and advances continuous improvement in internal control across all units.
Improving Risk Management
The Board of Directors is the highest decision-making body for internal control evaluation, while the Internal Audit Department is respon-
sible for organizing and guiding all units in carrying out self-evaluation of the internal control system. Based on uni?ed, standardized, and
modular internal evaluation techniques and tools, the Company assesses the effectiveness of internal control design and implementa-
tion, forms evaluation conclusions, and issues evaluation reports. The Company conducts internal control evaluations annually, covering
the headquarters, branches, and subsidiaries. The evaluation content is organized around the ?ve elements of internal environment, risk
assessment, control activities, information and communication, and internal supervision. Risk Management
Internal Control Evaluation Process Hua Guang has formulated the Risk Management Control Procedure, which stipulates the management process for the identi?cation,
assessment, and response of various types of risks, clari?es the responsibilities of each department, and establishes a sound risk man-
Determine the internal control evaluation work plan. agement system and operating mechanism. The Company has built a three lines of defense model for risk management, with each line
Preparation Prepare working papers for internal control evaluation. operating ef?ciently and in coordination to form organizational synergy and effectively manage various internal and external risks.
Stage
Hold a kick-off meeting for the internal control effectiveness evaluation.
Three Lines of Defense for Risk Management
Implementation Organize and conduct internal control effectiveness testing.
Stage Communicate with the evaluated units to con?rm internal control de?ciencies. Business Departments (First Line of Defense)
Conduct regular annual risk identi?cation in conjunction with the Company’s strategy, and
Summary Summarize evaluation results. carry out ad hoc risk identi?cation according to changes in the Company’s operations and
Stage production.
Prepare the internal control self-evaluation report.
In addition, the Company regularly provides professional training to internal control evaluation personnel, promoting capability building Risk Analysis Group and Management Committee (Second Line of Defense)
in internal control evaluation and steadily improving the professionalism and standardization of the evaluation work.
Conduct qualitative analysis of identi?ed risks, determine the severity and likelihood of risk
consequences, and then determine risk levels. The Company classi?es all risks into ?ve
levels: extremely high risk, high risk, medium risk, low risk, and extremely low risk, and eval-
uates risk acceptance based on these levels.
Based on identi?ed risks, formulate strategic initiatives and management measures, estab-
lish corresponding risk management indicators and targets, integrate them into departmen-
tal KPIs and monthly work plans, conduct monthly reviews by the Management Committee,
and establish corresponding emergency mechanisms to ensure timely response when risks
occur, with regular drills and reviews.
Audit and Legal Center (Third Line of Defense)
Review the effectiveness of risk control measures, require relevant departments to take
improvement and corrective actions when issues are identi?ed, and re-evaluate risk
response plans when major changes occur in the external environment.
Internal Audit
The Company has established an Internal Audit Department under the Audit Committee of the Board of Directors as its dedicated internal
audit body. In the course of performing its duties, the Internal Audit Department independently exercises its audit supervision authority
in accordance with the law and is free from interference by any other department or individual. In accordance with the Audit Law of the
People’s Republic of China, the Articles of Association, and other relevant regulations, the Company has formulated the Internal Audit
System to guide and regulate the work of the Internal Audit Department.
The Internal Audit Department conducts comprehensive audits focusing on lawful and compliant operations, implementation of internal
control systems, standardized operational management, and risk prevention and mitigation, while also promoting specialized audits such
as performance audits, departure audits, and audits of raised funds management. Relying on audit reports, audit communication meet-
ings, and other mechanisms, the Internal Audit Department conducts comprehensive inspections, supervision, and professional evalua-
tions of audited projects and relevant departments, transforming audit results into management effectiveness and fully leveraging the
dual role of audit in supervision and value enhancement.
Energy Management
Performance Report Indicator Unit 2025 2024 2023
Total energy consumption tonnes of standard coal equivalent 2,940.02 2,939.21 2,296.89
Electricity consumption 10,000 kWh 2,389.19 2,386.21 1,864.25
Natural gas consumption cubic meters 11,113 12,130 13,363
Economic Performance Gasoline tonnes 11.63 26.71 45.52
Waste heat energy consumption tonnes of standard coal equivalent 37.93 35.12 32.69
Renewable energy consumption tonnes of standard coal equivalent 2,017.08 Note1
Indicator Unit 2025 2024 2023
Total energy consumption per RMB 10,000
Operating revenue RMB 10,000 255,588.51 191,782.82 141,516.41 tce/RMB 10,000 0.0115 - -
of revenue
Total pro?t RMB 10,000 20,737.61 8,425.72 4,103.20
Note 1: In 2025, the Company promoted the use of green electricity and photovoltaic power generation projects, resulting in an increase in renewable energy consumption
Total assets RMB 10,000 295,987.08 237,307.13 194,910.21
compared with the previous year.
Greenhouse Gas Emissions
Environmental Performance
IndicatorNote1 Unit 2025 2024 2023
Direct (Scope 1) greenhouse gas emissions tCO2e 212.15 212.53 158.79
Environmental Management Indirect (Scope 2) greenhouse gas emissions tCO2e 11,883.77 12,296.18 13,115.00
Total greenhouse gas emissions (Scope 1 and Scope 2) tCO2e 12,095.92 12,508.71 13,273.79
Indicator Unit 2025 2024 2023
Total greenhouse gas emissions per RMB 10,000 of
Amount of ?nes imposed for violations of environ- tCO2e/RMB 10,000 0.0473 - -
RMB 10,000 0 0 0 revenue (Scope 1 and Scope 2)
mental protection laws and regulations
Other indirect (Scope 3) greenhouse gas emissions Note 2 tCO2e 32,183.69 30,509.11 23,929.74
Number of incidents resulting in penalties for
Greenhouse gas emissions reduced tCO2e 980.11 133.60 117.00
violations of environmental protection laws and cases 0 0 0
regulations Note 1:Greenhouse gas emission calculation methods and emission factors refer to ISO 14064 Greenhouse Gases, the Ministry of Ecology and Environment’s China Product Life
Cycle Greenhouse Gas Emission Factor Database (2022), and the Greenhouse Gas Protocol—Corporate Accounting and Reporting Standard (Revised Edition), etc. The types of
Total environmental protection investment RMB 10,000 298.04 147.09 205.82 greenhouse gases covered include CO 2, CH 4, N 2O, and HFCs.
Note 2:The accounting scope of other indirect (Scope 3) greenhouse gas emissions includes transportation, employee commuting, business travel, and other indirect greenhouse gas
emissions generated from solid waste disposal.
Water Resources Management
Indicator Unit 2025 2024 2023
Emissions Management
Total water consumption tonnes 216,128.80 180,670.80 155,481.00 Indicator Unit 2025 2024 2023
Freshwater consumption tonnes 173,139.00 150,559.00 149,836.00 Total annual air emissions cubic meters 136,448 119,766 -
Of which: municipal water tonnes 173,139.00 150,559.00 4,716.00 Particulate emissions tonnes 3.23 2.55 0.86
Freshwater consumption per RMB 10,000 of revenue tonnes/RMB 10,000 0.6774 - - Total wastewater discharge cubic meters 69,719 63,234 75,924
Total recycled and reused water tonnes 42,989.80 30,111.80 5,645.00 COD (chemical oxygen demand) in discharged wastewater tonnes 4.76 9.54 20.59
Water recycling and reuse rate % 24.83 20.00 3.77 Ammonia nitrogen in discharged wastewater tonnes 0.18 0.31 0.19
Waste Management Employee Recruitment and Employment
Indicator Unit 2025 2024 2023 Indicator Unit 2025 2024 2023
Total waste generated annually tonnes 338.22 392.45 641.62 Percentage of local employees % 26.25 - -
Total hazardous waste generated tonnes 248.46 279.58 521.53 Number of employees with disabilities persons 5 7 -
Hazardous waste generated per RMB 10,000 of revenue tonnes/RMB 10,000 0.0010 0.0015 0.0037 Percentage of employees with disabilities % 0.70 1.07 -
Total non-hazardous waste generated tonnes 89.76 112.87 120.09 Number of demobilized veterans persons 13 - -
Non-hazardous waste generated per RMB 10,000 of revenue tonnes/RMB 10,000 0.0004 0.0006 0.0008 Percentage of demobilized veterans % 1.90 - -
Total waste recycled and reused tonnes 89.76 112.87 - Total number of employees taking parental leave persons 25 16 -
Percentage of waste recycled and reused % 27 29 - Total number of management employees persons 61 60 59
Waste recycled and reused per RMB 10,000 of revenue tonnes/RMB 10,000 0.0004 0.0002 - Percentage of management Female % 32.79 35.00 55.93
employees by gender
General industrial solid waste disposed tonnes 89.76 112.87 - Male % 67.21 65.00 44.07
Hazardous waste disposed tonnes 248.46 279.58 - 30 and below % 11.48 8.33 40.68
Percentage of management
employees by age
Total number of new hires persons 170 144 -
Percentage of new hires by Female % 25.88 30.56 -
gender Male % 74.22 69.44 -
Social Performance Below 30 % 52.35 49.30 -
Percentage of new hires by age 30?50 % 42.94 45.14 -
Above 50 % 4.71 5.56 -
Employee Recruitment and Employment Total employee turnover persons 185 293 -
Indicator Unit 2025 2024 2023 Employee turnover rate % 20.53 29.97 -
Total number of employees persons 716 652 662 Employee turnover rate by Female % 22.70 29.35 -
gender
Regular employees persons 710 645 - Male % 77.30 65.88 -
Number of employees by
Labor dispatch employees persons 6 7 - Below 30 % 42.70 43.34 -
contract type
Part-time employees persons 0 0 - Employee turnover rate by age 30?50 % 48.11 46.08 -
Female persons 246 231 245 Above 50 % 9.19 10.58 -
Number of employees by gender
Male persons 470 421 417
Percentage of employees by Female % 34.36 35.43 37.01
gender Male % 65.64 64.57 62.99
Percentage of employees by age 31?50 % 52.37 55.83 58.16
Number of ethnic minority employees persons 46 44 -
Percentage of ethnic minority employees % 6.42 6.75 -
Number of local employees persons 188 - -
Employee Training Occupational Health and Safety
Indicator Unit 2025 2024 2023 Indicator Unit 2025 2024 2023
Total number of employee training sessions sessions 177 135 - Safety Training Note 4
Total number of employee training participants person-times 4,648 4,465 - Total duration of safety training hours 4,302 194.50 -
Employee training expenditure RMB 10,000 12.00 4.20 - Average safety training hours per employee hours 6 0.31 -
Employee training coverage rate % 100 100 - Note 1: Statistics were optimized, and the 2024 data were revised.
Note 2: Recordable injury rate = Number of recordable work-related injuries × 200,000 / Total working hours
Average training hours per employee hours 38.61 12.03 -
Note 3: Injury rate per million working hours = Number of recordable work-related injuries × 1,000,000 / Total working hours
Average training hours per employee by Female hours 37.74 8.50 - Note 4: The statistical scope was expanded and optimized in 2025, resulting in an increase in safety training hours compared with 2024.
gender Male hours 39.09 15.56 -
Average training hours per employee by Frontline employees hours 35.28 10.10 -
employee category Management hours 51.39 56.00 - Quality Management
Percentage of employees receiving regular performance Indicator Unit 2025 2024 2023
and career development reviews
% 52.37 53.07 53.98
Ex-factory product pass rate % 99.90 99.50 99.35
Percentage of employees receiving regular Female % 21.23 21.78 22.26 Product sampling pass rate % 99.00 99.00 98.50
performance and career development reviews
by gender Male % 31.15 31.29 31.73 Batch inspection coverage rate % 100 100 100
Percentage of employees receiving regular Frontline employees % 43.85 43.71 -
performance and career development reviews
by employee category Management % 8.52 9.36 -
Supply Chain Management
Indicator Unit 2025 2024 2023
Occupational Health and Safety Total number of suppliers suppliers 50 49 48
Indicator Unit 2025 2024 2023 Percentage of suppliers that underwent
% 100 100 100
environmental and social impact assessments
Safety Investment
Work safety investment RMB 10,000 497.65 402.86 - Number of suppliers identi?ed as having actual
or potential major negative environmental and suppliers 0 0 0
Work-related injury insurance investment RMB 10,000 62.77 57.11 -
social impacts
Employee coverage rate of work-related injury insurance % 100 100 -
Number of suppliers participating in training suppliers 50 49 48
Work safety liability insurance investment RMB 9,589.62 14,304.36 -
Employee coverage rate of work safety liability insurance % 18.30 17.80 -
Work-Related Injury and Occupational Disease Management Note 1
Rural Revitalization and Public Welfare
Number of work-related injuries with serious
persons 0 0 0
consequences (excluding fatalities) Indicator Unit 2025 2024 2023
Number of work-related fatalities persons 0 0 0 Investment in rural revitalization activities RMB 10,000 40.28 - -
Incidence rate of occupational diseases % 0 0 - Number of people bene?ted from rural revitalization persons 42 - -
Number of recordable work-related injuries cases 14 7 3 Public welfare and charitable donations RMB 10,000 90.49 - -
Recordable injury rate Note 2 / 1.52 0.86 - Total number of volunteer activities carried out times 3 - -
Injury rate per million working hours Note 3 / 7.60 4.30 - Number of employees participating in volunteer activities persons 10 - -
Lost workdays due to work-related injuries days 587 215 - Total employee volunteer service hours hours 30 - -
Governance Performance Shanghai Stock Exchange Self-Regulatory Guidelines No. 14
for Listed Companies — Sustainability Report (Trial) Index
Technological Innovation and Patent Management
Indicator Unit 2025 2024 2023
Dimension Topic Relevant Section
R&D investment RMB 10,000 8,529.52 7,427.19 5,301.20
Addressing Climate Change Addressing Climate Change
R&D investment as a percentage of main
% 3.34 - - Pollutant Emissions Controlling Pollutant Emissions
business revenue
Waste Management Controlling Pollutant Emissions
Number of R&D personnel persons 99 - -
Ecosystems and Biodiversity Protection Protecting Biodiversity
Percentage of R&D personnel % 13.83 - - Environment
Environmental Compliance Management Strict Compliance
Total number of valid patents (as of end
items 104 Note1 104 102 Energy Utilization Improving Resource Ef?ciency
of the reporting period)
Water Resource Utilization Improving Resource Ef?ciency
Of which: invention patents items 47 48 -
Circular Economy Promoting Circular Development
Number of patent applications items 32 - -
Rural Revitalization Contributing to Society
Number of patents granted items 6 - -
Social Contribution Contributing to Society
Note1: As of the end of the reporting period, the Company had obtained a cumulative total of 129 authorized patents, of which 25 had expired.
Special Topic: Three Decades of Technological Innovation,
Innovation-Driven Development
Intelligent Manufacturing for the Future
Technology Ethics Not Applicable
Social
Anti-Corruption and Anti-Bribery Supply Chain Security Building a Balanced Supply Ecosystem
Fair Treatment of SMEs Building a Balanced Supply Ecosystem
Indicator Unit 2025 2024 2023
Product and Service Safety and Quality Quality Assurance; Customer Service and Information Security
Number of corruption litigation cases during
cases 0 - - Data Security and Customer Privacy Protection Quality Assurance; Customer Service and Information Security
the reporting period
Employees Occupational Health and Safety; Employee Development
Total number of persons involved persons 0 - -
Due Diligence Stakeholder Engagement and Due Diligence
Stakeholder Engagement Stakeholder Engagement and Due Diligence
Governance
Anti-Bribery and Anti-Corruption Upholding Integrity
Anti-Unfair Competition
Anti-Unfair Competition Upholding Integrity
Indicator Unit 2025 2024 2023
Number of litigation or penalty cases arising from 0 - -
cases
unfair competition during the reporting period
Amount involved RMB 0 - -
GRI Standard Disclosure Relevant Section
Global Reporting Initiative (GRI Standards 2021) Indirect Economic
GRI 3: Material Topics 2021 3-3 Management of material topics Contributing to Society
GRI 203: Indirect Economic 203-1 Infrastructure investments and services supported Contributing to Society
Impacts 2016 203-2 Signi?cant indirect economic impacts Contributing to Society
Hua Guang prepared this report with reference to the GRI Standards, covering the period from Anti-Corruption
Statement of Use
January 1, 2025 to December 31, 2025
GRI3: Material Topics 2021 3-3 Management of material topics Upholding Integrity
GRI Used GRI 1: Foundation 2021 205-1 Operations assessed for corruption risks Upholding Integrity
GRI 205: Anti-Corruption 205-2 Communication and training about anti-corruption policies
Upholding Integrity
GRI Standard Disclosure Relevant Section 2016 and procedures
General Disclosures 205-3 Con?rmed incidents of corruption and actions taken Upholding Integrity
Upholding Integrity
GRI 2:
General
Disclosures
GRI 303: Water and
Ef?uents 2018
GRI 304: Biodiversity 2016
Material Topics Emissions
GRI 3: Material 3-1 Process to determine material topics Materiality Analysis GRI3: Material Topics 2021 3-3 Management of material topics Addressing Climate Change
Topics 2021 3-2 List of material topics Materiality Analysis 305-1 Scope 1 emissions Performance Report
Economic Performance 305-2 Scope 2 emissions Performance Report
GRI 305: Emissions 2016
GRI 201: Economic 305-3 Scope 3 emissions Performance Report
Performance 2016 305-4 Emissions intensity Performance Report
GRI Standard Disclosure Relevant Section GRI Standard Disclosure Relevant Section
Emissions Training and Education
GRI 305: Emissions 2016 305-6 ODS emissions Performance Report 404-2 Programs for upgrading employee skills and transition
GRI 404: Training and Empowering Employee Development
Education 2016
Waste 404-3 Percentage of employees receiving performance and career
Key Performance Data
GRI3: Material Topics 2021 3-3 Management of material topics Controlling Pollutant Emissions development reviews
GRI 306: Waste 2020 306-3 Waste generated Performance Report GRI 405: Diversity and
Supplier Environmental Assessment GRI 3: Material Topics 2021 3-3 Management of material topics Empowering Employee Development
Building A Balanced Supply GRI 406: Anti-Discrimina-
GRI 3: Material Topics 2021 3-3 Management of material topics 406-1 Incidents of discrimination and corrective actions Empowering Employee Development
Ecosystem tion 2016
GRI 308: Supplier Environ-
mental Assessment 2016 Building A Balanced Supply
actions taken Child Labor
Employment GRI 3: Material Topics 2021 3-3 Management of material topics Empowering Employee Development
GRI 3: Material Topics 2021 3-3 Management of material topics Empowering Employee Development GRI 408: Child Labor 2016 408-1 Operations and suppliers at risk for child labor Empowering Employee Development
GRI 401: Employment 2016 401-2 Bene?ts provided to full-time employees Empowering Employee Development GRI 3: Material Topics 2021 3-3 Management of material topics Empowering Employee Development
Occupational Health and Safety Compulsory Labor 2016
GRI 3: Material Topics 2021 3-3 Management of material topics Occupational Health and Safety Local Communities
GRI 403: Occupational 403-5 Worker training on occupational health and safety Occupational Health and Safety Assessment 2016 414-2 Negative social impacts in supply chain and actions taken Empowering Employee Development
Health and Safety 2018 403-6 Promotion of worker health Occupational Health and Safety Customer Privacy
GRI 3: Material Topics 2021 3-3 Management of material topics
Training and Education
GRI 3: Material Topics 2021 3-3 Management of material topics Empowering Employee Development
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