CONTENTS
About This Report 01
Building on Green Foundations, People-oriented, ESG Data Tables and Notes 77
The Letter from the Chairman 03 Thriving in Ecological Harmony Shared Value Guidelines No. 14 of Shanghai Stock Exchange 85
About LANPEC 05 for Self-Regulation of Listed Companies—
Sustainability Report (Trial) Index Table
Environmental Compliance Management 15 Employee Rights and Benefits 53
Sustainability (ESG) Management 08 GRI Content Index 86
Energy Usage 16 Occupational Health and Safety 56
Usage of Water Resources 19 Employee Training and Development 61
Waste Disposal 20 Contributions to the Society 63
Pollutant Discharge 21 Rural Revitalization 64
Circular Economy 24
Climate Change Tackling 24
Ecosystem and Biodiversity Protection 30
Innovation Leadership, Building on Standards to Ensure
Intelligently Creating the Future Steady and Sustainable Progress
Innovation-driven 33 Corporate Governance 69
Industry Development 38 Risk Management and Compliant Operations 72
Safety and Quality of Products and Services 41 Anti-commercial Bribery and Anti-corruption 74
Data Security and Customer Privacy Protection 47 Anti-unfair Competition 76
Supply Chain Security and Management 48
About This Report Report Access
This report is published in electronic form and can be viewed on the Company’s official website (www.lanpec.com) or the Shanghai Stock Exchange website (www.
Reporting Scope
sse.com.cn).
This report covers Lanpec Technologies Limited and its subsidiaries (collectively referred to as “LANPEC”, “the Company” or “We”). Unless otherwise specified, the
reporting scope is consistent with that of the Company’s consolidated financial statements for the same period. Principles of Preparation
Materiality
List of Company Names and Abbreviations Appearing in This Report
The Company has identified material topics related to its operation that all stakeholders are concerned about as the highlights of this report. The presentation of
Full Name Abbreviation material topics in this report focuses on the characteristics of the industry in which the Company operates and the nature of its business activities. For details on
the process and results of the materiality analysis, please refer to the “Double Materiality Analysis” section of this report.
Lanpec Technologies Limited LANPEC, the Company, We Accuracy
This report ensures that the information is as accurate as possible. In particular, the measurement of quantitative information has been stated in terms of data
scope, calculation basis, and assumptions to ensure that the margin of error in the calculation is not misleading to users of the information. The quantitative
LANPEC (Shanghai) Petrochemical Equipment Co., Ltd. LANPEC (Shanghai) information and the accompanying information are detailed in the “ESG Data Tables and Notes” section of this Report.
Balance
Machinery Industry Lanzhou Petrochemical Equipment Testing
Lanzhou Testing Institute The content of this report reflects objective and true facts, and presents balanced disclosures of both positive and negative information relating to the
Institute Co., Ltd.
Company.
Clarity
This report is published in Simplified Chinese and English versions. This report contains tables and model diagrams as an aid to understanding the textual content
Reporting Period of this report. To facilitate faster access to information for stakeholders, this report provides a table of contents and a cross-reference index of ESG standards.
The reporting period is from 1 January 2025 to 31 December 2025. Unless otherwise specified, the data in this Report refer to the period covered. Quantification
This report discloses key quantitative disclosures and, where possible, historical data.
Basis for Preparation Comparability
The statistical methods and disclosure practices for the same quantitative disclosure in this report are consistent across reporting periods. If there are any
This report was prepared in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) changes in the data collection, measurement, or calculation methods, the relevant data are retrospectively adjusted, with explanations of the adjustments and
(April 2024) (hereinafter referred to as the Guidelines ), the Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Standardised their reasons provided in the notes to this report so that stakeholders can conduct meaningful analyses and assess the trend of the Company’s ESG performance
Operations (Revised in May 2025) , the Guidelines No. 4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Preparation of Sustainability Reports , level.
and with reference to the GRI Standards (2021) issued by the Global Sustainability Standards Board (GSSB).
Integrity
The scope of the disclosures is in line with that of the Company’s consolidated financial statements.
Data Description Timeliness
The data and cases in this report are derived from official records of the actual operation of the Company. The financial data in this report are all in RMB. In case of This is an annual report covering the period from 1 January 2025 to 31 December 2025. The Company strives to publish this report as soon as possible after the end
any discrepancies between the financial data and the Company’s annual financial report, the annual financial report shall prevail. of the reporting year to provide timely information for stakeholders’ decision-making.
Verifiability
The cases and data in this report were derived from the original records or financial reports of the Company’s actual operations, and the sources and calculation
processes of the disclosed data are all traceable.
The Letter from the Chairman Strengthening the foundation of governance, with compliance safeguarding sustainable success
Corporate governance is the cornerstone of sustainable development. In 2025, we continued to improve the corporate governance structure, optimise the decision-
making mechanism, strengthen institutional execution, and advance the Company’s governance towards greater standardisation, transparency, and efficiency. We
landscape and profound industry restructuring, all LANPEC people, with unflinching courage and unwavering resolve, broke through adversity and achieved renewal compliance requirements into every stage of operational decision-making to ensure that we maintain steady and sustainable development in a complex and ever-
amid transformation. We not only achieved a historic turnaround in operating performance, but also made solid progress on the path of sustainable development. changing environment. We deeply advance the development of a culture of integrity and foster a sound atmosphere of probity, dedication, and entrepreneurship. It
Here, on behalf of the Company’s Board of Directors, I would like to extend our most sincere gratitude and highest respect to leaders at all levels, partners, and is precisely because of our persistent efforts in governance and compliance that the Company’s reputation and image in the capital market have steadily improved,
friends from all sectors who have long cared for and supported LANPEC, and to every employee and family member who have selflessly devoted themselves to our ESG rating has risen to the forefront of the industry, and we have been selected as an Outstanding Practice Case in Sustainable Development by the China
LANPEC’s rebirth! Association for Public Companies. This not only recognises our past efforts, but also inspires us to uphold the ESG philosophy to higher standards in the future and
create greater value for society.
Adhering to green development and driving the low-carbon transformation of industries through
innovation Grateful for the opportunities of the times, shouldering our responsibility to create a better future
As a national champion in the field of energy and chemical equipment, we deeply recognise that green development is the defining feature of high-quality LANPEC’s rebirth and development would not have been possible without the steadfast support and dedicated guidance of our shareholders, the care and support
development, and an even greater responsibility that we cannot shirk in this era. The Company closely aligns with the national “Dual Carbon” strategy, focusing on of local governments, the trust and recognition of our customers, and the concerted efforts of all employees. We always remain grateful, and transform this
the two major fields of petroleum and petrochemical equipment and new energy equipment. We use technological innovation to drive industrial innovation, further altruistic spirit into practical actions to serve national strategies and respond to society’s expectations. We actively participate in rural revitalization and public
strengthen our heat exchange, mass transfer, and separation technologies, and promote the iterative upgrading of core products towards greater efficiency, welfare initiatives, drive local development through industrial assistance, and strive to become a responsible and caring corporate citizen.
energy saving, and lower carbon emissions. We deeply participate in the research, development and manufacturing of clean energy equipment. A number of Looking ahead to the 15th Five-Year Plan, we will accelerate our transformation from a “single equipment manufacturer” into an “integrated energy and chemical
benchmark projects we undertake at home and abroad help customers achieve their energy saving and carbon reduction goals through breakthroughs in our equipment solutions provider with core equipment manufacturing capabilities”, and build a full-chain service system covering “design, manufacturing, engineering,
technologies, contributing LANPEC’s expertise to the building of a new energy system. At the manufacturing end, we comprehensively implement lean management, and operation and maintenance”. We will continue to deepen our ESG philosophy, make sustained efforts in environmental responsibility, social responsibility, and
optimise production processes, strengthen resource recycling, and integrate green principles throughout the entire value chain of research and development, governance responsibility, strive to become a leader in sustainable development in the energy and chemical equipment sector, create more sustainable value for
procurement, production, and services, striving to build a modern factory that is environmentally friendly and resource-efficient, and taking practical action to employees, shareholders, and society, and jointly move towards a brighter future that is more resilient, more dynamic, and warmer!
safeguard our environment.
Putting people first and harnessing the strength of dedicated employees through care
Employees are the most valuable asset of an enterprise and the core driving force behind sustainable development. We uphold the philosophy of “Building a
Fulfilling Community, Empowering Ambitious Employees”, and remain committed to providing every member of LANPEC with a platform to pursue excellence and
realise their professional aspirations. By continuously optimising the organisational structure and implementing the “Small Front-end, Large Platform” model,
we have enabled more employees with ideals and capabilities to temper and grow through practical experience. We deepen the reform of the remuneration and
performance appraisal system, and care for our employees with dedication and compassion. From the continuous improvement of shuttle buses, dormitories, and
canteens, to condolences extended to the families of employees on overseas projects and the establishment of a two-way family visit mechanism, the warmth
of the organisation permeates the hearts of every employee. At the same time, we have always regarded work safety as the lifeline of the enterprise, and, with a
strong sense of responsibility that keeps us constantly vigilant, we strengthen our safety defences, maintaining a stable workplace safety record for consecutive
years, so that every employee can work with peace of mind and live with dignity in a safe and healthy environment.
About LANPEC Corporate Culture System
LANPEC’s Corporate Culture System
Company Profile
LANPEC was listed on the Main Board of the SSE in 2011. For decades, LANPEC has consistently pursued innovation-driven growth, guided by market demand, and
strengthened by lean manufacturing. Focusing on its core expertise in heat transfer, mass transfer, and separation technologies, the Company has evolved into a Vision Operation and Management Philosophy
technology-focused enterprise specialising in petroleum/petrochemical energy equipment and new energy equipment sectors. LANPEC delivers integrated system
solutions covering products, engineering, and services to customers worldwide. A technology enterprise of excellence Development Philosophy Innovation-driven development Green development
and enduring vitality Compliance-driven development Win-win development
A happy home of prosperity and care Talent Philosophy Supporting employees to grow and succeed
Company Profile Research Philosophy Venturing into uncharted territories and pioneering new
frontiers with wisdom
Quality Philosophy Quality is the market Quality is safety Quality is life
Safety Philosophy Absolute reliability One failure negates all
甘肃蓝科石化高新装备股份有限公司
Mission Integrity Philosophy Uprightness and integrity Simplicity and progress
Company name
Promoting technological advancement
in the industry Distinctive Culture
C o re F u n c t i o n
Fulfilling the mission and
Lanpec Technologies Limited responsibilities of a central state- Clear goals are the driving
owned enterprise force for progress
English name Difficulties and challenges
are the ladder to advancement
Focus on strivers, high-
Op
performance orientation
er
Vision
a tio
P hilo M a n a g
n and
D i st i n c
responsibility requires
accountability
so p h y
Registered address Customer first
C o r e Va l
t i v e C u lt u re
Company matters are
Integrity as the
handled by employees,
foundation
employee matters are cared
em en
The Company is principally engaged in the research and development, design, manufacturing, installation and technical
Innovation and for by the Company
io n
services of specialised equipment for the petroleum, petrochemical and new energy sectors, as well as quality and
ues
transcendence s
M is
t
performance inspection and testing services for petroleum and petrochemical equipment. Our products and services mainly Cultivate self-reliance,
Maintain Steady practice gratitude
include heat exchangers, air coolers, crude oil production separation and processing equipment, fibre liquid membrane
and Sustainable
separation technology and complete systems, membrane separation technology and products, spherical tanks, molten salt Strive until there is no room
Development
tanks, towers, vessels, petroleum drilling and production equipment, and inspection and testing services. The products are for further effort, turn the
Principal businesses impossible into possible
mainly used in industries such as petroleum, chemicals, power, shipbuilding, light industry and food, pharmaceuticals, and
textiles.
LANPEC Spirit
The Company’s production facilities are located in two key regions - Lanzhou and Shanghai. The total area is
approximately 620 mu, with the production floor space covering 150,000 square meters. The facilities feature a
maximum lifting capacity of 500 metric tons. Core Function LANPEC Spirit (Spirit of Perseverance)
• Lanzhou Base: The facility occupies approximately 110 mu of land, with nearly 40,000 square meters of production
area. It holds the A1-grade pressure vessel manufacturing certification and primarily produces various high-end A market-oriented innovative force for self-reliance and self- Sparing no effort, enduring rigorous tempering, traversing every
strengthening in petroleum, petrochemical and new energy obstacle, and enduring all hardships
petrochemical products including high-efficiency energy-saving heat exchangers, advanced tower vessels, and LNG
equipment technology
spherical tanks, with a maximum lifting capacity of 200 metric tons.
Business Layout
• Shanghai Base: The facility spans approximately 510 mu of land, with about 110,000 square meters of workshop
area. Holding the A1-grade pressure vessel manufacturing certification, it primarily undertakes production of high-
pressure hydrogenation equipment, fertilizer production devices and plate-type series products, featuring a maximum Ignite Passion Like a Spreading Wildfire, Cast
lifting capacity of 500 metric tons. the Soul to open a New Chapter
Major ESG Honours and Recognition Sustainability (ESG) Management
ESG Governance and Management Structure
ESG Rating System ESG Rating Performance
To improve the ESG management system, the Company has formulated and implemented the ESG Management System . In 2025, the Company reviewed and
approved the Proposal on Renaming the Strategy Committee of the Board of Directors and Revising the Committee’s Working Rules , renaming the Strategy
Committee of the Board of Directors as the Strategy and Sustainable Development Committee of the Board of Directors, and simultaneously revising the Working
Rules for the Strategy and Sustainable Development Committee of the Board of Directors , with the aim of further strengthening the Board’s strategic guidance and
supervision functions in sustainable development and enhancing the Company’s sustainability capabilities.
LANPEC’s Sustainability Management Structure
Wind ESG Rating
Board of Directors
• The Board of Directors is the leadership and decision-making body for ESG work.
• It is responsible for reviewing and approving the Company’s ESG management system, reviewing and approving the
Company’s ESG report, and discussing, evaluating, and approving material topics, work objectives, information disclosure,
A-
external reporting, and other matters in ESG disclosure.
SynTao Green Finance ESG Rating Update date: 2025 Q4
Strategy and Sustainable Development Committee
• The Strategy and Sustainable Development Committee is mainly responsible for researching and making
recommendations on the Company’s long-term development strategic plans, major investment proposals, sustainability
Decision-making
Level and ESG matters, and is accountable to the Board of Directors.
A-
• It identifies sustainability-related risks and opportunities that have a significant impact on the Company’s business, and
Update date: 2025 Q4
CCXGF ESG Rating guides the management to take appropriate response measures in relation to sustainability risks and opportunities.
• It supervises and inspects the implementation of the Company’s environmental, social responsibility and
corporate governance efforts, assesses the Company’s overall sustainability performance and makes corresponding
recommendations, and reviews the Company’s sustainability-related disclosure documents.
Strategic Investment and Sustainability (ESG) Working Group
ESG Honours Issuing Organisation ESG Honour Performance
• It is led by the General Manager of the Company, with the deputy general managers in charge of planning and
investment, and sustainable development respectively serving as deputy heads, and the heads of the relevant functional
departments serving as members of the group.
• It is mainly responsible for the principal duties and powers of the Strategy and Sustainable Development Committee:
Shenzhen Value Online Information Technology Co., Ltd. • i. to study and make recommendations on the Company’s long-term development strategic plans;
• ii. to study and make recommendations on major investment and financing proposals that, in accordance with the
Articles of Association , are subject to approval by the Board of Directors;
• iii. to study and make recommendations on major capital operations and asset management projects that, in
accordance with the Articles of Association , are subject to approval by the Board of Directors;
• iv. to study and make recommendations on the Company’s sustainability targets, strategic plans, governance structure, etc.;
Management Level • v. to identify sustainability-related risks and opportunities that have a significant impact on the Company’s business, and
guide the management to take appropriate response measures in relation to sustainability risks and opportunities;
• vi. to supervise and inspect the implementation of the Company’s environmental, social responsibility and corporate
China Association for Public Companies governance efforts, assess the Company’s overall sustainability performance and make corresponding recommendations;
• vii. to review the Company’s sustainability-related disclosure documents and ensure the completeness and accuracy of
ESG-related disclosed information, including but not limited to the annual sustainability report;
• viii. to study and make recommendations on other major matters affecting the Company’s development;
• ix. other matters authorised by the Board of Directors.
The “Complete Technology and Equipment for High-Temperature Molten Salt
Storage Tanks in Molten Salt Energy Storage Systems” was shortlisted as one
China Enterprise Confederation Office Board Office (Strategic Investment Department)
of the 2025 Outstanding Practice Cases for Enterprise Green and Low-Carbon
Development. • It is responsible for leading and organising the daily affairs of the committee, including but not limited to preparatory
work for decision-making, daily liaison, meeting organisation, archive management, and implementation of relevant
Implementation Level resolutions.
In 2025, the Strategy and Sustainable Development Committee of the Board of Directors performed its duties and reviewed and approved the Company’s 2024 LANPEC’s Key Stakeholders, Topics of Concern and Responses
Sustainability Report . In addition, to enhance the professionalism and standardisation of the Company’s ESG work, the Company coordinated and advanced multi-
level, multi-dimensional ESG capacity-building activities: organising certain senior managers and relevant employees to participate in ESG report preparation
training held by the Shanghai Stock Exchange, to gain an in-depth understanding of regulatory requirements and disclosure standards; working with ESG consulting Key Stakeholders Topics of Concern Communication Channels and Responses
experts to hold the “Independent Directors Lecture” and the 2025 ESG Work Kick-off Meeting, providing centralised training and seminars for the Company’s
independent directors, senior managers, and relevant personnel from various functional departments, systematically studying the ESG governance framework,
• Corporate Governance
strategic integration, and practical approaches, and effectively strengthening employees’ awareness and execution capabilities in ESG.
• Risk Management and Compliant Operations
• Shareholders’ Meeting
• Anti-commercial Bribery and Anti-corruption
• Results Briefings
• Anti-unfair Competition
Double Materiality Analysis
Shareholders and
• Investor Communication Activities
Investors • Safety and Quality of Products and Services
• Innovation-driven
Double Materiality Analysis
In 2025, the Company systematically conducted a double materiality analysis of ESG topics in accordance with the requirements of the Guidelines No. 14 of Shanghai
• Climate Change Tackling
Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) and the Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation
• Environmental Compliance Management
of Listed Companies—Standardised Operations (Revised in May 2025) , while also referring to mainstream domestic and international sustainability policies and
• Energy Usage • Customer Satisfaction Survey
disclosure standards, and considering industry characteristics, the Company’s strategic direction, and actual operating conditions.
• Circular Economy • After-sales Service and Complaint Channels
This process fully considered the key concerns of the Company’s internal and external stakeholders, preliminarily identified and screened topics, and assessed and • Supply Chain Security and Management • Customer Exchanges
prioritised topics from the two dimensions of “financial materiality” and “impact materiality”, thereby forming a double materiality matrix for focused disclosure and • Safety and Quality of Products and Services • ESG Information Disclosure
Customers
response in this report. • Data Security and Customer Privacy Protection • Climate Change Tackling Actions
• Innovation-driven
LANPEC’s Double Materiality Analysis Process in 2025 • Industry Development
Step 1 Step 2 Step 3 Step 4
Background Identification Preliminary Identification of Topics Materiality Analysis of Topics Confirmation and Approval
and Understanding of Topics • Employee Welfare Activities
• Employee Rights and Benefits
• Employee Training System
Interpret national macro With reference to domestic and Communicate with internal and external Based on the comprehensive • Occupational Health and Safety
• Employee Appraisal and Promotion
policies and industry international ESG standards, experts, consider industry characteristics assessment results, Employees • Employee Training and Development
• Employee Congress and the Labour Union
development trends, benchmark the key topics in ESG and key concerns of stakeholders, assign determine whether each
and analyse the external reports of leading companies in scores to the assessment from two topic is “material” and
market environment the same industry, and incorporate dimensions: importance to the Company’s form a double materiality
• Climate Change Tackling
in which the Company feedback from routine stakeholder operation and development (namely matrix.
• Environmental Compliance Management • Climate Change Tackling Actions
operates, the Company’s communication to compile a list of financial materiality, covering the likelihood
The Board of Directors • Waste Disposal • Information Disclosure
business activities, and ESG topics that the Company needs of short-, medium- and long-term impacts
of the Company is Government and • Pollutant Discharge • Institutional Visits
industry characteristics. to focus on. and the scale of financial effects) and Regulatory Authorities
responsible for reviewing • Rural Revitalization • Participation in Relevant Meetings
importance of impacts on the economy,
Identify the key processes An expert panel composed of internal and disclosing the • Anti-commercial Bribery and Anti-corruption
society and the environment (namely
in the value chain where and external experts is assigned material topics in this
impact materiality, covering the likelihood
the Company may have to conduct due diligence, analyse report.
and severity of impacts), set appropriate
significant impacts, the actual and potential impacts, • Supplier Training
materiality thresholds, and determine the
as well as the main risks, and opportunities related to • Supply Chain Security and Management • Public Tender Meetings Public Tendering
ranking of topic materiality.
stakeholder groups the Company’s topics, and promptly • Data Security and Customer Privacy Protection • Exchanges and Mutual Visits
affected. identify adverse impacts or risks. Suppliers and • Industry Development • Industry-academia-research Cooperation
Partners
Projects
Due Diligence and Communications with Stakeholders
In the management of the Company’s ESG topics, an expert panel composed of internal and external experts carries out due diligence by coordinating
• Usage of Water Resources • ESG Information Disclosure
departmental interviews, research, seminars, and other methods. Centring on each material topic, it systematically identifies the impacts, risks, and opportunities
• Waste Disposal • Information Disclosure on the Company’s
faced in the Company’s operations, providing a basis for optimising resource allocation and setting management priorities.
• Pollutant Discharge Ecosystem and Biodiversity Protection Official Website and Social Media
The Company attaches great importance to communication with stakeholders and cares about their demands and expectations. In 2025, based on business and Communities and the • Contributions to the Society • Rural Revitalization and Social Contribution
operational realities, the Company communicated with key stakeholders including shareholders and investors, customers, employees, government and regulatory Public • Rural Revitalization Anti-unfair Competition Projects
authorities, suppliers and partners, as well as communities and the public. Through mechanisms such as regular meetings, management systems and project
interactions, the Company extensively collected expectations and suggestions regarding ESG management and actively responded in daily management and
operations, thereby enhancing the transparency of ESG management.
Conclusions of Materiality Analysis LANPEC’s Materiality Matrix in 2025
Impact Materiality
In 2025
Innovation-driven
Energy Usage
the Company identified a including 8
Contributions to the Society Safety and Quality of Products and Services
total of 22 ESG topics, environmental topics 8
Rural Revitalization Occupational Health and Safety
Environmental Compliance Management
Climate Change Tackling
Governance
Supply Chain Security and Management
Usage of Water Resources
Industry Development
Anti-unfair Competition Discharge
Employee Rights and Benefits
Anti-commercial Bribery and
Anti-corruption
Data Security and Customer Risk Management and Compliant Operations
Privacy Protection
Among these, a total of 8 topics have double materiality, 2 topics have financial materiality
only, 10 topics have impact materiality only, and 2 topics have neither financial materiality Ecosystem and Biodiversity Protection
nor impact materiality. 2
Financial Materiality
Topics with both financial materiality and impact Topics with financial materiality but not impact materiality
materiality
Topics with impact materiality but not financial Topics with neither financial materiality nor impact materiality
materiality
Note: Among the 21 topics set out in the SSE Guidelines , the topic of “Equal Treatment to Small and Medium-sized Enterprises” is not applicable to the Company; the two topics of
“Communication with Stakeholders” and “Due Diligence” are necessary processes for the Company to identify and analyse ESG topics, and are addressed in the “Double Materiality Analysis”
section, not included in the matrix; all other topics in the Guidelines were included in the matrix and addressed in the main body of this report; the Company independently identified the
topics of “Industry Development”, “Risk Management and Compliant Operations”, and “Corporate Governance”.
Environmental Compliance Management Emergency Rescue Drills
LANPEC’s production and operations comply with the requirements of laws, regulations, and other regulatory requirements such as the Environmental Protection In July 2025, LANPEC organised a simulated drill in the chemical raw materials warehouse on the emergency response process for paint leakage
Law of the People’s Republic of China , and the Company has formulated internal systems such as the Safety/Environmental Management Procedures and the causing ground pollution, to test employees’ emergency response capabilities in the face of sudden environmental pollution emergencies and
Environmental Protection Management System . The Company and its subsidiary LANPEC (Shanghai) have obtained ISO 14001:2015 Environmental Management verify the completeness and operability of the emergency plan.
System certification, ensuring the systematic and standardised operation of environmental management.
In 2025, the Company had no material environmental violations or non-compliance incidents, received no penalties from the local municipal emergency
management authorities, ecological environment authorities, or relevant authorities, and had no complaints from relevant parties, demonstrating good
environmental compliance performance.
In 2025
The Company had no material environmental
violations or non-compliance incidents
ISO 14001:2015 Environmental Management System Certification
Emergency Rescue Drill Site
(Valid Until 3 December 2026)
In terms of environmental compliance management, the Company strengthened environmental protection inspections, deepened risk identification, and enhanced
emergency response capabilities to build an environmental compliance control system, effectively reinforcing the line of defence for environmental safety.
Energy Usage
Energy used by LANPEC during production and operations mainly includes electricity, natural gas, petrol and diesel. Among them, electricity is the main source of
LANPEC’s Key Actions and Achievements for Environmental Compliance Management in 2025
power for production activities, and also supports the daily operation of lighting, air conditioning and office equipment in office areas; natural gas is mainly used
for gas heat treatment furnaces in the production process, boiler heating, and cooking in the staff canteen; petrol and diesel are used for transportation by the
Company’s official vehicles, forklifts for on-site material transfer, and lorries.
Category Key Actions and Achievements
• Conducted regular self-inspections of environmental compliance, covering key aspects such as pollutant discharge,
standardised management of solid waste (hazardous waste), and the operating status of environmental protection Governance
Environmental facilities.
inspections and • Established a closed-loop management mechanism covering identification, rectification and acceptance. The Company complies with the requirements of laws, regulations, and other regulatory requirements such as the Energy Conservation Law of the People’s Republic
issue rectification Incorporated all non-conformities identified during self-inspections into the issue register, clarified the responsible of China , and has formulated internal systems such as the Energy Conservation and Emission Reduction Management System and the Energy Conservation and
departments and rectification deadlines, and implemented rectification measures, with all rectification items passing Emissions Reduction Responsibility System to standardise energy usage management. For details of the governance structure, please refer to the “Climate Change
review and acceptance, effectively eliminating hidden risks in environmental management. Tackling” section of this report.
• Conducted environmental factor identification and risk assessment annually, covering the entire process
Environmental risk
identification and of production activities, products and services, and kept major environmental risks under control through risk Strategy
assessment management.
If the Company, as a manufacturer of metal pressure vessels, specialised equipment for petroleum drilling and extraction, and refining and chemical processing,
practices extensive energy efficiency management in the production processes and fails to effectively recover waste heat resources, this may exacerbate regional
• Formulated tiered annual environmental training plans and carried out specialised training on environmental
carbon emissions and environmental burdens. If we fully leverage our technological advantages in efficient heat exchange, surplus energy utilisation, and system
Environmental regulations, internal systems and operating procedures for management and operational staff.
integration to promote cascade utilisation of energy and process optimisation, we can provide customers with integrated solutions for energy conservation and
training and • Prepared the Environmental Emergency Risk Assessment Report and emergency plans, and organised
emergency capacity efficiency enhancement, supporting the green transformation of the industrial sector.
comprehensive emergency drills throughout the year as planned, verifying the effectiveness of the emergency
building plans and enhancing rapid response and coordinated handling capabilities in the event of environmental The Company reviews the environmental impacts and potential risks arising from the energy usage process, identifies challenges such as tightening policies and
emergencies. market access, while also seizing development opportunities brought by energy efficiency improvement and green finance, and has formulated and implemented
response strategies covering system enhancement, technological upgrading, and behavioural guidance.
LANPEC’s Risks and Opportunities Analysis for “Energy Usage” LANPEC’s Key Actions and Measures for Energy Usage in 2025
• Implemented the Energy Conservation and Emission Reduction Management System and the
Timeframes of
Risks and Opportunities Financial Impacts Response Strategies Energy Conservation and Emissions Reduction Responsibility System , refined control requirements for
Impact Energy management
implementation various types of energy, including electricity, natural gas, petrol and diesel, established the statistical
principle of “who consumes, who records”, and implemented unified appraisal, rewards and penalties
The national “Dual Carbon” strategy
for energy consumption.
and local “Dual Control” policies
on total energy consumption and
energy intensity continue to intensify,
Short, medium, Increase in
Policy risk with tighter constraints on energy
and long term compliance costs
consumption indicators, which may
increase compliance costs and restrict • Made full use of the power company’s time-of-use electricity pricing policy, scheduled high-power
the development of high-energy- equipment (such as resistance furnaces) to operate during off-peak hours, and effectively reduced
consuming projects. basic electricity expenditure and energy consumption per unit of product.
• Phased out high-energy-consumption mobile lighting equipment such as iodine tungsten lamps,
promoted the use of 36-volt safe and energy-saving lighting fixtures, uniformly upgraded workshop
• Track policies and regulations in a timely lighting to LED energy-saving lamps, and installed sound-and-light-controlled switches in some areas,
manner, incorporate the latest regulatory Electricity use
Customers and the supply chain have with the workshop illuminance improved while significantly reducing energy consumption following
requirements into the management system, optimisation
imposed higher requirements on the lighting system upgrade.
suppliers’ carbon footprint and green Medium and long Decrease in operating implement the energy conservation and • By standardizing the use of compressed air and introducing an area-based responsibility system,
Market risk emissions reduction responsibility system,
manufacturing standards, and low term revenue we curbed leakage and waste, and reduced the operating time of air compressors.
energy efficiency may lead to order establish a unified appraisal system, and • Completed and successfully commissioned a 1.6 MW installed capacity rooftop distributed
losses or restricted market access. reinforce energy management responsibilities photovoltaic power generation project at the office premises in December 2025. Made full use of idle
at all levels. rooftop resources at the office premises, delivered localised development and utilisation of renewable
• Carry out energy efficiency diagnostics energy, and effectively reduced the Company’s reliance on traditional grid electricity.
for high-energy-consuming processes, and
Measures, such as improving energy formulate phased energy-saving technological
efficiency, recovering waste heat, and transformation plans.
• Arranged heat treatment operations scientifically and reasonably, implemented centralised heat
Resource shifting electricity use to off-peak Short, medium, Decrease in operating • Conduct diversified publicity and treatment of workpieces, reduced furnace opening frequency, and encouraged continuous boiler
efficiency
periods, can effectively reduce energy and long term costs professional training in conjunction with the operation to save start-up and shutdown energy consumption, significantly improving natural gas
opportunities
procurement costs and enhance Energy Conservation Week to enhance all utilisation efficiency and substantially reducing equipment idling and ineffective operating time.
Gas control
profitability. employees’ awareness of and skills in energy • Established a three-tier gas leak detection mechanism (with operating teams, electromechanical
enhancement
conservation. maintenance, and the canteen personnel assuming respective responsibilities), regularly used
professional instruments to inspect valves and joints, and strictly implemented the principle of
“extinguishing the flame and closing the valve when leaving,” effectively controlling pipeline leakage
risks and ensuring gas safety and conservation.
Good energy performance and green
factory qualifications help to improve
Financing Medium and long Decrease in financing
green credit standing and enhance the • Closely followed the themes of publicity week and low-carbon day, hung energy-saving themed
opportunities term costs
ability to obtain green credit, transition banners in prominent locations, posted popular science posters in public areas, and played the
finance, and relevant policy support. Energy Conservation Week Promotional Video on a loop on the electronic screen in the canteen, vividly
showcasing the application scenarios of cutting-edge energy-saving technologies.
• Organised personnel from the energy conservation and ecological environmental protection
management functions to participate online in the Energy Conservation Week training.
Publicity and
education
activities
Impacts, Risks and Opportunities Management
To effectively manage the energy usage-related impacts, risks, and opportunities, the Company adheres to an institutionalised, refined, and technology-driven
approach, continuously improving energy efficiency and optimising the energy usage structure while ensuring production and operations.
Energy Conservation Week Poster Energy Conservation Week Promotional Video
LANPEC’s Key Actions and Achievements for Usage of Water Resources in 2025
Special Training and Lectures for Energy Conservation Week
Category Key Actions and Achievements
In June 2025, the Company conducted special training for Energy
• Formulated and implemented a rigorous inspection plan to carry out regular inspection and maintenance of
Conservation Week. Closely aligned with the national “Dual Carbon”
facilities such as the water supply system, fire-fighting water pipelines, tap water pipelines, heating pipelines, and
strategic goals, the training effectively disseminated the latest policies
various types of taps. Focused on checking vulnerable parts such as pipeline connections and valve interfaces, and
and technical pathways for energy conservation and emissions Infrastructure
promptly identified and addressed potential leakage points.
reduction by organising relevant professionals to watch the Group’s maintenance
• Effectively eliminated leakage, overflow, dripping and seepage in the pipeline system. Completed repairs at the
featured broadcasts, study green transformation knowledge, and carry
earliest opportunity on pipeline damage or tap failures identified during inspections, thoroughly eliminated the hidden
out dedicated enhancement training for production management
risk of continuously running water and ensured the sealing integrity and operational efficiency of the water supply system.
personnel. This strengthened all employees’ awareness of energy
conservation and carbon reduction, and laid a solid ideological • Designated fire-fighting water storage tanks and pressure test water storage tanks as key monitoring objects,
foundation and talent support for the subsequent promotion of dynamic and regularly inspected the water level status and operation of water level control valves. Paid particular attention to
energy consumption control and the implementation of energy-saving Water storage potential failure risks of water level control valves, so as to prevent direct overflow caused by excessively high water
technological transformation measures. facility levels due to faults in the automatic water replenishment system.
monitoring • Strengthened water level monitoring and valve maintenance for key facilities, effectively avoided concealed water
Organised production management personnel and team leaders to
wastage caused by equipment malfunction, safeguarded emergency water reserves, and achieved precise control
watch the promotional video for the 2025 National Energy Conservation
over the water replenishment process.
Week, and carried out training to enhance energy-saving awareness;
Organised personnel from the management functions of carbon • Carried out regular inspections and maintenance of delayed-action valves for washbasins in public areas. Focused
peak and carbon neutrality, energy conservation, and ecological Optimisation of on identifying issues such as excessively long valve delay times or untimely reset, and promptly replaced or repaired
environmental protection to participate online in the Sinomach Group’s On-site Special Training and Lectures for Energy Conservation Week end-use water valves that did not meet water-saving requirements, so as to ensure that flushing water was supplied as needed
Energy Conservation Week training, and watch the excellent works fixtures and stopped in a timely manner, promoted more standardised water use behaviour in public areas, and substantially
showcase for Sinomach Group’s 2025 Energy Conservation Week. shortened unnecessary running water time.
Waste Disposal
The wastes generated during LANPEC’s production and operations mainly comprise general industrial solid wastes and hazardous wastes.
Indicators and Targets The Company complies with the requirements of laws, regulations, and other regulatory requirements such as the Law of the People’s Republic of China on the
LANPEC’s “Energy Usage” Targets and Progress
Prevention and Control of Environmental Pollution by Solid Wastes , and has formulated internal systems such as the Environmental Protection and Hazardous
The Company takes improving energy usage efficiency as its Waste Pollution Prevention and Control Management Responsibility System and the Hazardous Waste Management System to implement standardised whole-
core objective and closely aligns with the national “Dual Carbon” process management of waste. In 2025, 100% of the wastes generated by the Company were disposed of in compliance.
strategy, continuously improving its energy management
system. The Company tracks the progress of relevant indicators, LANPEC’s Main Types of Waste and Disposal Measures
optimises energy resource allocation and production scheduling Target: Achieve remarkable results in renewable energy substitution
Type Main Types of Wastes Main Generation Process Main Disposal Measures
plans, dynamically adjusts the direction of energy-saving In 2025: Purchased renewable electricity amounted to 1,978,050 kWh
technical transformation, and promotes the transition of energy • All waste is temporarily stored in the designated area of
General industrial Steel plate offcuts and
management from experience-driven to data-driven, ensuring Production process the workshop, and regularly entrusted to qualified entities for
solid waste scrap, iron filings
the continuous improvement of energy efficiency. disposal.
Achieved
Equipment maintenance
Waste mineral oil • All hazardous waste is collected by category, stored
process
in dedicated containers, and temporarily stored in an
Usage of Water Resources Waste emulsion liquid Machining process
independent hazardous waste temporary storage room.
• The hazardous waste temporary storage room is subject
to standardised anti-corrosion hardening and anti-seepage
Waste developer (fixer)
Flaw detection process treatment for the floor and skirting corners, and is equipped
The water used for production and operations of LANPEC is entirely supplied by the municipal water supply system. The Company has a low level of dependence on Hazardous waste solution
internally with bunds and anti-seepage trays to prevent the
water resources, and the risk of water scarcity is low.
spread of leakages.
The Company strictly complies with the requirements of laws, regulations, and other regulatory requirements such as the Water Law of the People’s Republic of Waste paint containers Production process
• The Company regularly engages qualified hazardous
China and the Water Pollution Prevention and Control Law of the People’s Republic of China , and has formulated internal systems such as the Energy Conservation waste disposal entities for collection, transfer, and harmless
and Emission Reduction Management System , incorporated water resource management into daily operations, and effectively improved water utilisation efficiency. Wastewater treatment disposal, and strictly implements the hazardous waste
Wastewater treatment
system treatment transfer manifest system.
In 2025, the Company adhered to the principle of conservation first, regulated water utilisation behaviour by strengthening infrastructure maintenance, evaporated concentrate
process
implementing monitoring at key points, and optimising the management of end-use appliances.
Pollutant Discharge Impacts, Risks and Opportunities Management
In response to the impacts, risks and opportunities related to pollutant discharge, the Company has established a systematic, dynamic management process
Pollutants involved in the operations of LANPEC include exhaust gases such as particulate matter, volatile organic compounds, nitrogen oxides, as well as
covering identification, assessment, prioritisation, monitoring and continuous improvement, and has established a sound collection and compliant disposal system.
wastewater and noise. The Company complies with the requirements of laws, regulations, and other regulatory requirements such as the Environmental Protection
Law of the People’s Republic of China and the Law of the People’s Republic of China on Environmental Impact Assessment , and regards environmental compliance
as the basic prerequisite for production and operation. In 2025, the Company’s wastewater and exhaust gas emissions all met the relevant standards, and there LANPEC’s Pollutant Management Process
were no incidents of penalties imposed by regulatory authorities due to excessive pollutant emissions or non-compliant discharges.
Prepare documents and identify environmental risks to comprehensively review all processes and substances involving pollutant
discharge. In accordance with the Classification Method for Environmental Accident Risk of Enterprise (HJ941-2018), identify
Governance Identification environmental risk substances (such as paints, thinners and hazardous waste) and their quantities, determine risk units (such as
production workshops, chemical storage facilities and hazardous waste temporary storage rooms), and investigate surrounding
The Company has formulated internal systems such as the Environmental Protection Management System and the Measures for the Management of Environmental environmentally sensitive receptors to establish a risk source inventory.
Protection Equipment and Facilities to ensure the effective control of pollutant discharge. For details of the related governance structure, please refer to the “Climate
Change Tackling” section of this report.
Conduct scenario analysis of environmental emergencies and source intensity estimation for the identified risk units. Simulate
accident scenarios such as leaks, fires and abnormalities in pollution control facilities to calculate pollutant leakage rates, diffusion
Assessment
Strategy pathways and impacts on air and water bodies, and evaluate the completeness and effectiveness of existing prevention and control
measures to identify gaps and potential risks.
During the production and operation process, if the pollutants generated by the Company are not properly managed, they will pose potential pressure on the
quality of the surrounding environment, water safety, and soil health. The Company systematically identifies the environmental impacts and market challenges
arising from pollutant discharge, and seizes the development opportunities brought by the green transition, implementing response strategies covering source Classify environmental risks into four levels of Q0 (Q<1), Q1 (1≤Q<10), Q2 (10≤Q<100), and Q3 (Q≥100) based on the ratio (Q value) of the
reduction, process control, and end-of-pipe treatment. Prioritisation quantity of risk substances to their threshold values, identify priority risk sources and event types for control in combination with
environmental sensitivity, and provide a basis for resource allocation and prioritisation of rectification.
LANPEC’s Risks and Opportunities Analysis for “Pollutant Discharge”
Risks and Opportunities Timeframes of Impact Financial Impacts Response Strategies
Carry out real?time monitoring of risk units and prevention and control facilities through routine inspections, online monitoring
National and local environmental protection Monitoring equipment and manual patrols, and establish inspection records and issue registers to ensure timely detection and early warning
regulations continue to become more of abnormalities.
stringent, and pollutant discharge
standards are continuously tightened,
Short, medium, and long Increase in
Policy risk which may increase the costs of treatment • Establish a systematic,
term compliance costs
facility upgrades and compliance dynamic management
process, and conduct Formulate and implement targeted risk prevention and control measures (such as anti?seepage measures, bunding and emergency
monitoring, and impose institutional
annual environmental Management material allocation) based on assessment and monitoring results, and conduct regular emergency drills; propose short?, medium?
constraints on corporate production and
factor identification and and long?term rectification plans based on gap analysis and continuously track their implementation.
operations.
risk assessment to achieve
If production bases trigger complaints from precise full-process
surrounding communities or environmental control of pollutant
penalties due to odour, dust emissions, or Decrease in discharge.
Reputation risk Medium and long term
improper hazardous waste disposal, this operating revenue
may affect the Company’s brand image and • Conduct professional
social reputation. treatment of wastewater,
exhaust gas and noise to
The environmental technologies and ensure stable, compliant
green production experience accumulated discharge.
Technology in the process of pollutant treatment Increase in operating
and market Medium and long term
can be transformed into the Company’s revenue
opportunities
differentiated competitive advantages,
enhancing value in the green supply chain.
Main Types of
LANPEC’s Main Types of Pollutants and Disposal Measures
Circular Economy
Type Main Generation Process Main Disposal Measures
Pollutants
Organised emissions LANPEC upholds the core philosophy of resource conservation and efficient utilisation, and has formulated internal systems such as the Energy-saving
Shot blasting chamber After secondary dust removal and filtration by an expansion settling chamber + Management Measures for the Production System , the Measures for Raw Materials and Low-value Consumables of the Production Department , and the
Particulate matter (PM)
operations cartridge dust collector, emissions are discharged through an 18 m exhaust stack Management Measures for Recycling and Utilisation of Scrap Materials , integrating the concept of the circular economy into production and operations, thereby
Benzene, toluene, xylene, After treatment by a fully enclosed spray-painting booth + activated carbon reducing operating costs and improving economic benefits while enhancing core competitiveness for sustainable development.
non-methane total Paint spray booth operations adsorption + fibre filter dry filtration system, emissions are discharged through a
hydrocarbons 20 m exhaust stack The Company moves the circular economy concept forward to the product development and process design stages, reducing resource consumption and waste
Trolley-type gas-fired heat Low-nitrogen combustion technology is adopted, and emissions are discharged generation at source. During the processes of product development and design and the formulation of production processes, the Company gives priority to
SO2, NOx, particulate treatment furnace through 21 m and 28 m exhaust stacks, respectively advocating the use of new products, new processes, new materials, and new technologies that are easy to recycle, easy to dispose of, or environmentally friendly.
Waste gas matter After treatment by the dust collector, emissions are discharged through a 15 m
Natural gas boiler The Company attaches great importance to the recycling and reuse of various types of waste generated during the production process and strictly implements
exhaust stack
the Management Measures for Recycling and Utilisation of Scrap Materials . We have introduced professional nesting layout software, and carried out classified
Nitric acid mist (NOx), Pickling and passivation After treatment by a sodium sulphide spray tower + calcium hydroxide spray
collection and centralised management of recyclable materials such as steel plate offcuts and iron filings generated during the production process, and
fluorides production line tower, emissions are discharged through a 20 m exhaust stack
established channels for resource utilisation. In 2025, the total amount of waste recycled and reused by the Company reached 3,286.49 tonnes.
Fugitive emissions
Particulate matter, benzene
Welding process, fugitive
series compounds, non- Mobile fume purifiers are used; workshop ventilation is strengthened; fugitive
volatilisation at the plant
methane total hydrocarbons, emissions at the plant boundary are monitored on a regular basis
boundary Application of Professional Nesting Layout Software to Improve Steel Plate Utilisation Rate
etc.
Wastewater from the
Pickling and passivation
pickling process (including Wastewater is treated by self-built wastewater treatment system (low-
production line (workpiece
COD, SS, total chromium, temperature heat pump evaporation), and reused in production after treatment;
cleaning, wastewater from In 2025, in response to the continuous increase in the generation of steel plate offcuts and residual materials during the production process,
nickel, fluoride, ammonia the concentrated evaporation liquid is disposed of as hazardous waste
exhaust gas scrubber discharge)
nitrogen, etc.) the Company promoted the application of professional nesting layout software. Based on the shape, dimensions, and process requirements of
After treatment through a septic tank and upon meeting the Level 3 standard of components, the software uses intelligent algorithms to carry out automated high-density optimised layout on steel plates, significantly reducing
Wastewater Washing and toilet flushing in
Domestic sewage the Integrated Wastewater Discharge Standard , wastewater is discharged into the gaps and waste areas generated during cutting. After more than one month of on-site testing, compared with the original nesting software, the
office and living areas
municipal sewage pipeline network and ultimately enters the wastewater plant average utilisation rate increased by approximately 6%.
Wastewater is discharged into the plant wastewater pipeline after pre-treatment
Kitchen oily wastewater Staff canteen At the same time, during the layout process, tooling auxiliary materials required for subsequent procedures were consciously pre-arranged in
in a grease trap
Initial surface runoff within the Wastewater is collected through the rainwater pipe network and discharged at residual material areas, enabling the immediate reuse of residual materials and effectively advancing resource circularity and lean production.
Initial rainwater
plant area multiple nearby outlets into the municipal rainwater pipeline
Measures such as installing soundproof doors and windows, reducing equipment
Fans, machining equipment,
vibration, and equipping certain devices with silencers are adopted; equipment
Noise grinders, riveting operations,
maintenance is strengthened to ensure that boundary noise levels meet the Class
etc.
Indicators and Targets LANPEC’s “Pollutant Discharge” Targets and Progress
The Company aims to ensure that all types of pollutants are Climate Change Tackling
discharged in stable compliance with applicable standards, and
achieves precise whole-process control over pollutant discharge by Target: Exhaust gas emissions compliance rate: 100%
tracking the completion of relevant indicators. Global climate change has become a major challenge jointly faced by human society. Against this background, China clearly put forward the strategic goals of
“achieving carbon peaking by 2030 and carbon neutrality by 2060”, elevated climate change tackling to a national strategy, and accelerated the comprehensive
green transformation of economic and social development.
Achieved
Target: Pickling wastewater reuse rate: 100%
Governance
Achieved LANPEC has incorporated climate change tackling into the scope of strategic management, using energy conservation and carbon reduction as a starting point,
Target: Boundary noise compliance rate: 100% and continuously advancing production process optimisation, clean energy substitution, and resource recycling and reuse, thereby striving to mitigate the impact
of operations on the climate.
The Company has established an energy conservation and emissions reduction governance structure with clear powers and responsibilities and efficient
Achieved coordination, taking a systematic approach to advancing the comprehensive governance of environmental areas such as energy usage, pollutant discharge, and
climate change tackling.
LANPEC’s Climate Change Tackling Governance Structure LANPEC’s Risks and Opportunities Analysis for “Climate Change Tackling”
Timeframes Financial Impacts
Risks and Opportunities Response Strategies
Decision-making Level • As the highest leadership body for the Company’s energy conservation and emissions reduction, it of Impact
is responsible for implementing national guidelines and policies as well as the work requirements of Physical risks
superior entities;
• It formulates the Company’s development plans for energy conservation and emissions reduction; Extreme weather events (such as typhoons and floods) may Increase in
Short and • Define a responsibility system
threaten the safety of production bases and the stability of the operating costs
• It reviews, approves, or revises the rules and regulations on energy conservation and emissions Acute risks medium of “Shared Responsibilities
supply chain, potentially leading to production disruptions and Decrease in
Energy reduction; reviews and makes decisions on major investment activities involving energy conservation term of Party and Government
affecting operating revenue. operating revenue
Leadership and Dual
Conservation and emissions reduction (such as new construction, reconstruction, and expansion projects) to ensure
Our Shanghai office area is located in a subtropical zone at Responsibilities for One Post”,
and Emission compliance with national policy requirements; sign responsibility agreements,
a relatively low altitude and close to the coast, and has long
Reduction • It provides comprehensive guidance on energy conservation and emissions reduction across all
faced the intensification of extreme heat caused by rising and incorporate “Dual Carbon”
Leading Group departments and subsidiaries. Increase in goals into performance
temperatures, as well as potential threats arising from sea level Short and
operating costs appraisal to ensure effective
Chronic risk rise; the region where our Gansu production base is located is medium
Decrease in implementation of management.
exposed to high drought risk and significant water stress, and term
operating revenue • Establish high-temperature
water scarcity would directly affect production processes and
employee activities, potentially leading to production stoppages allowances for employees,
and, in turn, adversely affecting operating revenue. improve cooling systems in
Management Level
plant and office areas, and
Energy Conservation formulate emergency plans for
• As the daily management body, it is responsible for organising, coordinating, Transition risks
and Emissions heatstroke, thereby achieving
Reduction Office and supervising implementation. As a subsidiary of a central state-owned enterprise, we face energy savings and consumption
• It formulates energy conservation and emissions reduction procedures, stringent assessment against the “Dual Carbon” responsibility reduction in cooling systems.
(Established within establishes and improves organisational management, statistical monitoring, targets and challenges in policy compliance; China may advance • Increase investment in the
Policy and Short, medium, Increase in
the Safety and and reward and penalty systems, and organises the assessment, supervision, the development of the carbon emissions trading market, and research and development
law risks and long term compliance costs
Environmental and inspection of the Company’s energy-using departments.
the petrochemical industry in which the Company operates may of green and low-carbon
Protection Department) be included in the future, which may require the purchase of technologies, promote the
additional allowances, thereby incurring additional costs. application of the “Four
News” for energy saving and
If the transformation of traditional high-energy-consuming low carbon, and respond
Technology business lags behind, or the research and development of green Medium and Decrease in to transition risks through
Implementation Level • They are independently responsible for the energy conservation risk technologies falls short of expectations, we may face the risk of long term operating revenue technological innovation.
and emissions reduction within their entities, implementing national declining market competitiveness. • Improve the Special
laws and regulations and the Company’s requirements; Emergency Plan for Natural
Major raw material suppliers face stricter energy-saving
• They formulate their respective rules and regulations on energy Disasters and conduct regular
and emissions-reduction requirements under sustainable
drills, establish a statistical
conservation and emissions reduction; development policies. The increase in their production costs may
Increase in monitoring system for energy
• They organise internal inspections, statistical monitoring, and be transmitted along the industrial chain, putting pressure on the
Medium and operating costs consumption and emissions, and
Market risk stability and pricing of the Company’s raw material procurement;
Wholly-owned rewards and penalties within their entities, and regularly report long term Decrease in ensure compliant operations.
as ESG concepts become increasingly ingrained, customers’
subsidiaries energy consumption and work completion status to the Company.
preference for green and environmental products continues to
operating revenue • Actively develop and deploy
energy-saving and consumption-
grow. If the Company’s products have insufficient low-carbon
reduction technologies, and our
attributes, we may face the risk of market share being displaced.
All departments, units, and all sections/ • They are responsible for the daily management of energy conservation main products have achieved
and emissions reduction, accepting the supervision and inspection of good applications in emerging
teams Opportunities
industries such as solar thermal
the Company’s Energy Conservation and Emissions Reduction Office, and
power generation, clean energy,
promptly rectifying any issues identified during inspections; The Company’s technological breakthroughs in clean equipment
and environmental protection
Technology fields such as molten salt energy storage can enable us to Medium and Increase in
• They are responsible for the daily inspection and management of and emissions reduction.
opportunity capture the green and low-carbon technology market and create long term operating revenue
energy use and pollutant emissions; • Replace grid electricity
new business growth.
• They participate in the knowledge training and activities on energy consumption with photovoltaic
green electricity and increase
conservation and emissions reduction organised by the Company. Through the systematic planning and deployment under the 15th
the proportion of renewable
Five-Year Plan, we can promote the transformation of the industrial
energy used in the production
Resource structure towards green and low-carbon development, drive
Short, medium, Decrease in and operation process.
efficiency improvements in resource utilisation efficiency, and reduce energy
and long term operating costs • Continuously improve climate
opportunity costs. At the same time, the Company increases the proportion
Strategy of renewable energy in total energy consumption to reduce
change tackling management,
use honours such as “Excellent
dependence on fossil energy.
Practice Case” to enhance
Energy consumption and greenhouse gas emissions in the Company’s production process are direct sources of the Company’s climate impact. Through the brand influence, and transform
Opportunities The “Dual Carbon” strategy promotes the low-carbon governance advantages into
downstream application of energy-saving equipment developed by the Company, society as a whole is helped to reduce carbon emissions, thereby generating
related to transformation of the industries in which the Company operates, Medium and Increase in development momentum.
positive indirect impacts. Based on the realities of an equipment manufacturing enterprise, the Company integrates climate change tackling into its daily products and and we can launch products that are more aligned with the “Dual long term operating revenue
operations and technological planning, effectively identifies climate-related risks, seizes opportunities arising from the iteration of green technologies, formulates services Carbon” policy through technological innovation.
response strategies, and achieves green growth on the premise of controllable risks.
Impacts, Risks and Opportunities Management LANPEC’s Key Actions and Measures for Climate Change Tackling in 2025
To systematically identify and respond to the impacts, risks, and opportunities brought about by climate change, the Company has established a systematic
management process for climate change tackling, covering risk identification, assessment, prioritisation, and monitoring.
Category Measures
• Continued and optimised the governance structure for climate change tackling, clarified the division of
responsibilities, and ensured the orderly advancement of “Dual Carbon” efforts.
LANPEC’s Climate Change Tackling Management Process Organisational • Signed the Statement of Responsibility for Carbon Peaking and Carbon Neutrality, Energy Conservation, and
management and Ecological and Environmental Protection (2025) , clarifying the responsibility targets and assessment requirements for
system development energy conservation and carbon reduction, environmental protection, and other aspects in 2025.
• Formulated the Emergency Plan for Natural Disasters to enhance emergency response capabilities for
Identify climate-related risks and opportunities such as extreme weather, energy consumption and emissions based on the extreme climate events.
Identification
identification of environmental impact factors, risk point inspections and the Special Emergency Plan for Natural Disasters .
• Systematically planned the key work for the next five years in areas such as energy conservation and
environmental risk management, reflecting a systematic strategic-level arrangement.
Planning guidance
• In accordance with the requirements of the responsibility statement, promoted a year-on-year reduction
and target setting
in comprehensive energy consumption per RMB10,000 of output value and carbon dioxide emissions, and
Evaluate the extent of various climate impacts and emission reduction potential through environmental impact assessments and
Assessment continuously advanced the optimisation of the energy structure and the control of carbon emission intensity.
energy-saving evaluations of new projects, annual responsibility target appraisals, and analysis under the 15th Five-Year Plan.
• Actively promoted the “Four News” energy-saving and low-carbon technologies (new processes, new
technologies, new equipment, and new materials) to enhance the overall level of energy efficiency.
Technological
• Independently developed the “Complete Technology and Equipment for High-Temperature Molten Salt Storage
innovation and
Prioritise the prevention of "major or above environmental emergencies" and "major violations of laws and regulations" in Tanks in Molten Salt Energy Storage Systems”, successfully shortlisted it as an “National Outstanding Practice
green practices
Prioritisation accordance with the priority of responsibility targets, restrict high-energy-consuming projects, and support the research, Case for Enterprise Green and Low-carbon Development”, demonstrating the Company’s technological innovation
development and application of green and low-carbon technologies. capabilities in the field of clean energy equipment.
Establish a statistical monitoring system to collect and consolidate energy consumption and emission data in accordance with
Monitoring national standards, regularly submit statements and self-inspection reports to higher authorities, and dynamically track progress Development of Low-carbon Promotional Materials
through special inspections.
In 2025, the Company actively planned and, with “Carbon Path Pioneer” as the main theme, promoted the application of our advanced technologies
such as skid-mounted heat exchangers and molten salt storage tanks in the field of energy conservation and carbon reduction by producing
Formulate targeted control and response measures, including promoting energy-saving renovation, strengthening supply chain energy-saving and low-carbon promotional materials, and shared the Company’s energy conservation and carbon reduction scenarios. A total of
Management management, and achieving breakthroughs in low-carbon technological innovation, and continuously optimise and adjust them three themed promotional posters and one energy-saving promotional video were produced, vividly recreating the technical scenarios of energy
according to actual conditions. conservation and carbon reduction, and conveying replicable and scalable low-carbon solutions to both within and outside the industry in an
intuitive and vivid manner.
Building on the foundation of risk management and control, the Company achieves multi-dimensional progress in addressing climate change, including
improvements to the governance system, clearer targets, breakthroughs in technological innovation, and effective risk prevention and control, with all measures
implemented and delivering results.
Low-carbon Promotional Materials
Independently Developed Complete Technology and Equipment for High-
Indicators and Targets LANPEC’s “Climate Change Tackling” Targets and Progress
Temperature Molten Salt Storage Tanks in Molten Salt Energy Storage Systems
The Company has consistently regarded green and low-carbon
Target: Greenhouse gas emission intensity per RMB10,000 of output
development as the core direction of sustainable development strategy,
Targeting the new-type core energy storage equipment of power systems, namely the “Complete Technology and Equipment for High- value continues to decline
advancing energy-saving technological transformation and clean energy
Temperature Molten Salt Storage Tanks in Molten Salt Energy Storage Systems”, the Company focused on its principal responsibilities and core In 2025: Continued to show a downward trend compared with 2024
substitution, and helping mitigate the impacts of climate change.
business, established a dedicated R&D team, applied technical means such as numerical simulation and multi-physical field coupling analysis,
optimised the thermal insulation structure and thermal compensation design of storage tanks, overcame critical bottleneck challenges such as
large capacity, high-temperature resistance, and fatigue resistance, and developed molten salt storage tank design and construction capabilities
Achieved
with fully independent intellectual property rights.
This technology achieved deep integration of business development with
Ecosystem and Biodiversity Protection
safety and environmental protection, not only ensuring the safe and
stable operation of energy storage systems, but also supporting the low-
carbon energy transition, and can be widely applied in fields such as
concentrated solar power plants, flexibility retrofitting of thermal power
plants, and waste heat recovery in steel plants. Relying on this core LANPEC’s production and business operations are mainly located within industrial parks planned in accordance with the law, and do not involve nature reserves,
technology, the Company has undertaken dozens of molten salt storage ecological protection red line areas, or sensitive areas with significant biodiversity value. The Company’s operational activities mainly comprise industrial production
tank projects for concentrated solar power plants in China and abroad, activities and do not directly occupy or develop areas with important ecosystem functions. During land use, construction project approval, and daily operations,
with outstanding energy-saving and carbon-reduction results: a single the Company complies with environmental management requirements in accordance with the law, reducing the potential impact on the surrounding ecological
million kWh of clean electricity annually, save 70,000 tonnes of standard
The Company continues to pay attention to the impact of its own activities on biodiversity. Its projects generally comply with cleaner production requirements, and
coal, and reduce carbon dioxide emissions by 220,000 tonnes. Equipment Appearance it strictly complies with the Wild Animal Conservation Law of the People’s Republic of China , the Regulation of the People’s Republic of China on Nature Reserves
and the laws, regulations and document requirements related to biodiversity in the places where it operates. By carrying out measures such as environmental
assessments for new projects, land reclamation and revegetation, we strengthen the governance and restoration of the ecological environment, and minimise the
impacts of production and operations on biodiversity and ecosystems as far as possible.
Innovation-driven LANPEC’s Risks and Opportunities Analysis for “Innovation-driven”
Timeframes of Financial
Type Specific Description Response Strategies
LANPEC regards innovation-driven development as the foundation of the business. We have deeply cultivated the fields of petroleum drilling and production Impact Impacts
machinery and refining and chemical equipment, offshore and desert petroleum equipment, light industry and food machinery, and environmental protection and
new energy engineering, continuously accumulating core experience and technical capabilities. The Company strictly complies with laws and regulations such as
the Law of the People’s Republic of China on Scientific and Technological Progress , the Patent Law of the People’s Republic of China , and the Copyright Law of the During the advancement of cutting-edge
technology research and development, if • Strengthen cooperation with
People’s Republic of China , effectively promoting innovation as the core engine driving sustainable value creation.
breakthroughs in core technologies are Increase in universities and scientific research
operating costs institutes to accelerate breakthroughs
Technology impeded or the pace of industrialisation Short, medium, and
Governance transition risk lags behind, we may miss the market long term Decrease in
in key technologies.
window, weaken our technological operating revenue • Improve lifecycle management
The Company has established a comprehensive scientific research management framework, including the Implementation Rules for the Management of
leadership, and affect customer order of intellectual property, proactively
Scientific Research Projects , the Measures for the Administration of Scientific and Technological Work (Trial) , the Measures for the Management of Scientific and
acquisition and brand reputation. arrange patents for core technologies,
Technological Development Fund Projects , the Measures for the Evaluation of Scientific and Technological Achievements (Trial) , the Measures for the Work of the
Technical Committee (Trial) , etc., systematically standardising the management of scientific research projects, funds, achievements, intellectual property protection and avoid infringement risks.
and other areas, and promoting the standardised and regulated operation of scientific research work. In 2025, the Company continued to improve the institutional • Focus on core products such
system for scientific and technological innovation, and formulated and revised No. 1 Amendment to the Scientific Research Project Management Measures of China is accelerating the promotion as high-efficiency energy-saving
LANPEC (Trial) , further standardising the management of the Company’s scientific research projects and fully mobilising enthusiasm for innovation-driven work. of energy conservation and carbon heat exchange equipment and
In terms of management structure, the Company has established an innovation-driven governance system in which the “Party Committee serves as the highest reduction in the industrial sector. The waste heat recovery and utilisation
Product/Service Medium and long Increase in
systems, increase investment in
decision-making body, the Technical Committee provides professional support, the Science and Technology Development Department exercises centralised Company can leverage the technological
opportunities term operating revenue
industrialisation, and rapidly form
management, and all business departments collaborate to advance implementation”. At the same time, the Company leverages its specialised research capabilities expertise to launch green equipment
to establish four core technology R&D teams, including the Heat Transfer and Energy Conservation Technology Research Department (focusing on research into and system solutions and seize market large-scale production capacity.
heat transfer and energy conservation technologies), the Storage and Transportation Engineering Technology Research Department (focusing on research into opportunities.
spherical tanks and solar thermal energy storage technologies), the Oil and Gas Engineering Technology Research Department (focusing on research into oil and
gas separation and treatment technologies, and evaporation crystallisation technologies), and the Equipment Digitalisation Technology Research Department
(focusing on research into equipment digitalisation technologies), to support the Company’s continuous innovation. In order to effectively address risks such as insufficient innovation in a complex development environment, and seize opportunities brought about by industrial
upgrading, the Company formulated 2025 Guidelines for Annual Scientific and Technological Development Projects of Lanpec Technologies Limited , systematically
LANPEC’s Innovation-driven Structure and Main Responsibilities
anchoring the strategic direction of scientific and technological innovation, focusing on core business and technological advantages, and concentrating resources
on prioritising key technological innovation, so as to support the achievement of annual targets and lead strategic development.
The Company’s highest decision-making body for science and technology management, responsible for reviewing and
To ensure the efficient implementation of scientific and technological innovation projects, the Company strengthens the top-level design and leadership
deciding on major matters relating to the Company’s science and technology work, such as the guidelines for the
mechanisms for scientific and technological innovation. From guiding innovation directions and project initiation to process supervision, acceptance evaluation,
Company’s fund projects, the approval of research projects, and rewards for scientific and technological innovation work.
Party and post-evaluation, we implement lifecycle supervision and management to ensure that every process is subject to strict control, thereby promoting the effective
Committee transformation of scientific and technological innovation achievements into strong momentum for corporate development.
An advisory and consultative body for the Company’s scientific and technological efforts, mainly responsible for
Impacts, Risks and Opportunities Management
Technical technical consultancy work such as demonstrating the technical feasibility of major scientific research projects
Committee or project proposals, reviewing the approval of scientific research projects, and evaluating and rewarding
scientific and technological achievements.
In the external environment characterised by accelerating technological iteration, intensifying industrial competition, and the intertwining of green and low-
carbon transformation, the Company deeply recognises that innovation is the core engine for shaping long-term competitiveness, responding to risks arising from
The department responsible for the centralised management and support of the Company’s scientific and technological uncertainty, and seizing opportunities for high-quality development. In 2025, the Company effectively enhanced corporate resilience and development momentum
Science and work. It is responsible for the research and formulation of the Company’s science and technology development plans from three dimensions, namely R&D innovation, intelligent manufacturing and digital transformation, and intellectual property protection, and further promoted
Technology and related policies, the preparation and release of project guidelines, the management of scientific research projects,
Development the coordinated co-creation of the Company’s economic value and social value.
Department the management of scientific and technological achievements, the formulation and revision of science and technology
management systems, and the management of science and technology qualification certificates.
Strategy
The Company places technology leadership and research and development innovation in a priority position. Technological innovation is the key support for LANPEC to
strengthen core functions and enhance market competitiveness. If investment in innovation is insufficient and technological iteration lags behind, it will be difficult to meet
the demand for highly efficient and energy-saving equipment under the national “Dual Carbon” goals, and we will be unable to provide core technical support for energy
conservation and emissions reduction in the industrial sector. If we continue to increase investment in innovation and achieve breakthroughs in key core technologies, we
will be able to promote the upgrading of energy equipment towards greater efficiency, lower carbon emissions, and greater intelligence, help industrial enterprises reduce
energy consumption and carbon emissions, while creating high-quality jobs, and realise the coordinated improvement of environmental and social benefits.
R&D Innovation System Development Intelligent Manufacturing and Digital Transformation
The Company focuses on the core needs of R&D and innovation and promotes the transformation of innovative achievements into practical productive forces To advance intelligent manufacturing and digital transformation, in 2025, the Company enhanced design efficiency and technological innovation capabilities and
by strengthening full-cycle management of scientific research projects, improving the achievement evaluation and incentive mechanisms, enhancing the promoted intelligent upgrading by advancing the digital transformation of the design and R&D system for pressure vessel equipment, strengthening team building
development of R&D platforms, and actively participating in the formulation of industry standards. and personnel development, and obtaining relevant certifications.
LANPEC’s Key Management Measures for R&D and Innovation LANPEC’s Key Actions and Measures for Intelligent Manufacturing and Digital Transformation in 2025
Category Measures Category Measures
• Implement classified and graded management for scientific research projects, with projects including • Developed an integrated design platform architecture for pressure vessels, which adopted a multi-
Research project government-funded research projects, industry-commissioned research projects, and the Company’s science Integrated design layered architectural design, integrating functions such as parameter input, design calculation, model
management and technology development fund projects. Carry out project management with reference to the relevant platform architecture creation, and data delivery, breaking away from the traditional situation in which functional modules in
for pressure vessels design software operate independently, improving design efficiency and flexibility, and supporting the
provisions of the Measures for the Management of Scientific and Technological Development Fund Projects.
independent development, testing, and deployment of multifunctional modules.
• Establish a full-process management mechanism covering achievement appraisal, technical evaluation,
registration and archiving, and intellectual property protection.
Management of scientific • Issue the Measures for Rewards for Scientific and Technological Innovation Work (Trial) , providing material • Strengthened the cultivation of professional qualifications and technical capabilities, with the members
and technological
and spiritual rewards to contributors who obtain achievements at national, provincial and ministerial levels, successfully obtaining the two core professional qualifications of “Pressure Vessel Design Approver” and
achievements and talent Team building
incentives patents, papers, and contributions to new product development. Establish the “Science and Technology and personnel “Pressure Vessel Inspector”, enhancing their technical authority and capacity to assume responsibilities in
Achievement Award” to incentivise the enthusiasm and creativity of scientific and technological personnel development core business areas.
undertaking scientific research tasks and making practical innovation contributions. • Actively integrated into the frontier technology ecosystem, and selected members to participate in “AI
Agent Practical Training”, inspiring innovative ideas for integrating emerging technologies such as artificial
intelligence and automation into the equipment design process.
• Promote joint establishment with universities, research institutes, and key users of innovation base
R&D platform
construction projects and talent training bases featuring deep integration of industry, academia, research, and
development
application.
• LANPEC (Shanghai) completed the audit of the digital transformation management system on 8 August
• LANPEC (Shanghai) completed the digital transformation maturity rating on 30 September 2025 and
• Proactively undertake research into industry-wide common application technologies, undertake the
Leadership in industry obtained the Digital Transformation Maturity Star Rating Assessment Certificate.
formulation and revision of national and industry standards and specifications, support the high-quality
standards and
technical services development of the industry, and expand the Company’s influence. For related content, please refer to the
“Industry Development” section of this report.
Digital transformation
certification
Successful Application of Fully Welded Plate Heat Exchanger R&D in Tail Gas Waste Heat Recovery
In 2025, in response to the needs of the waste heat recovery industry, the Company adopted a combination of simulation and experimental Digital Transformation Maturity Star Rating Assessment Certificate, Integration
validation, optimised traditional heat transfer calculation theoretical models, and successfully developed a high-efficiency fully welded plate heat of Informatisation and Industrialisation Management System Certificate
exchanger. This product replaces conventional shell-and-tube heat exchangers with a compact, fully welded structure, improving equipment
integration while significantly reducing system operating energy consumption.
This technology has been successfully applied to the tail gas waste heat recovery system of a large-scale syngas-to-methanol plant. Actual
operating data show that the waste heat recovery efficiency of the system using the fully welded plate heat exchanger has increased to over 90%.
The efficient heat recovery significantly reduces the demand for primary energy, thereby directly reducing carbon dioxide (CO2) emissions. The Intellectual Property Protection
overall reduction in energy consumption of the plant also indirectly reduces the emissions of pollutants such as sulphur oxides (SO?) and nitrogen
oxides (NO?) that would otherwise be generated to achieve the same production capacity, delivering significant environmental benefits. The
The Company attaches great importance to intellectual property protection, and has formulated documents such as the Management Measures for Intellectual
successful application of this technology provides practical and reliable technical support for the green and low-carbon transformation of energy-
Property , the Protection Measures for Intellectual Property Protection , and the Letter of Commitment for the Protection of Intellectual Property Rights ,
intensive industries such as the chemical sector.
implementing standardised whole-process management over the creation, management, application, and protection of the Company’s intellectual property,
thereby providing solid safeguards for technological innovation achievements.
LANPEC’s Key Actions for Intellectual Property Protection
Category Measures
Scientific and technological achievements
Target: The annual increase in the number of patents granted to the Company shall be no fewer than 20, the number of valid granted patents retained
shall be no fewer than 240, and the Company shall obtain no fewer than 1 provincial- or ministerial-level (or equivalent) award every 2 years.
Organisation of To enhance employees’ awareness of intellectual property protection, a team of lecturers comprising
exchanges and experienced internal cadres and external expert panel provided training courses on patent drafting, patent In 2025: The Company obtained 10 invention patents and 15 utility model patents.
training sessions protection, intellectual property management and other topics for different groups. As of the end of 2025, the Company held a total of 281 authorised patents and 40 software copyrights.
As of the end of 2025, the Company had obtained over 1,181 scientific and technological achievements in total, including 4 National Science and Technology
Progress Awards, 3 China Invention Awards, 10 National Science Conference Awards, 3 major technical equipment achievements, 181 ministerial
(provincial)-level science and technology progress awards, and 22 national-level new products and National Torch Program products.
We strictly complied with relevant laws and regulations, continuously improved the intellectual property
Improvement
management system, and required employees to sign the Integrity Conduct and Intellectual Property
of systems and
processes Agreement .
LANPEC’s Market Honours for High-tech Research and Development
National-level Quality Inspection Centre National-level Scientific Research Platform
We provided online and offline training and learning on intellectual property-related knowledge to key and
relevant personnel of the Company, improved the awareness of the management and relevant employees • N
ational Quality Inspection and Testing Centre for Petroleum Drilling,
Focus on information
regarding intellectual property protection, and strengthened the awareness of patent application and Production, Refining and Chemical Equipment • Postdoctoral Research Workstation
confidentiality
infringement prevention among relevant personnel during the research and development and production • National Product Quality Inspection and Testing Centre for Heat Exchangers
processes.
Provincial- and Ministerial-level Scientific Research Platform Provincial- and Ministerial-level Engineering Technology Research Centre
• S hanghai Petrochemical Heat Exchange Equipment Engineering
Technology Research Centre
• Gansu Heat Transfer and Energy Saving Engineering Technology
Indicators and Targets • Shanghai Expert Workstation
Innovation Centre
• Engineering Technology Research Centre for Heat Transfer and
To systematically measure and advance the effectiveness of the implementation of the innovation-driven strategy, the Company has established a quantifiable, Energy Saving in the Machinery Industry
traceable, and assessable innovation performance indicator system centred on three core dimensions, namely R&D investment, scientific and technological talent,
Provincial- and Ministerial-level Technology Innovation Centre Provincial- and Ministerial-level Design Innovation Centre
and scientific and technological achievements.
• Gansu Enterprise Technology Centre
LANPEC’s Innovation-driven Targets and Progress in 2025
• Shanghai Enterprise Technology Centre • Gansu Industrial Design Centre
• Gansu Technical Center for Petrochemical Heat Exchange Equipment • Shanghai Design Innovation Centre
Industry
R&D investment Industry Development
Target: The Company continues to strengthen investment in scientific research, with the target for R&D intensity maintained at approximately 5%.
The Company actively undertakes research into common application technologies within the industry, as well as tasks related to the formulation and revision
In 2025: RMB60.02 million was invested in R&D in 2025, with R&D intensity of 6.05%.
of national and industry standards and specifications, continuously enhancing our technological influence in specialised fields and supporting the high-quality
development of the industry. Relevant work of the Company is carried out in accordance with the provisions of the formulated Management Measures for the Work
of Industry Associations (Trial) , ensuring that the participation process is standardised and orderly, and that the outcomes are practical and effective.
Scientific and technological talent
To systematically advance the optimisation of industrial layout and market expansion, the Company simultaneously strengthens the development of its investment
Target: The proportion of our scientific and technological personnel retained shall be no less than 25% of the total number of Company employees. management capabilities, formulates and implements the Investment Management Measures, and clarifies a full-cycle management system covering strategic
In 2025: The Company had a total of 354 scientific and technological personnel, including 29 professor-level senior engineers, 163 senior engineers, 4 planning, project review, process control, and post-investment evaluation, so as to make scientific, compliant, actionable decisions. At the same time, in order to
doctorate holders, and 96 master’s degree holders. strengthen full-cycle management of investment projects and continuously enhance investment returns and decision-making quality, the Company formulated the
The Company had 1 expert receiving the State Council Special Allowance, 2 leading talents in Gansu Province, and 3 Longyuan Young Talents in Gansu Implementation Rules for Post-investment Evaluation of the Company’s Investment Projects , systematically standardising the content, standards, procedures, and
Province. methods of post-investment project evaluation, thereby forming a closed-loop management system featuring “pre-event review, in-process monitoring, and post-
event evaluation”.
In 2025, the Company continued to promote the industry’s high-quality development and technological progress by actively participating in the formulation of industry
standards, organising and participating in professional seminars, advancing industry-university-research cooperation, and collaborating with external institutions.
LANPEC’s Key Actions and Achievements for Industry Development in 2025
Re-election of the Fourth Heat Exchangers Sub-Committee of China Standardisation
Committee on Boilers and Pressure Vessels and the 2025 Work Meeting
Category Specific Content In November 2025, the Re-election of the Fourth Heat Exchangers Sub-Committee of China Standardisation Committee on Boilers and Pressure
Vessels and the 2025 Work Meeting, hosted by the Company, was successfully held in Nanjing. Nearly 200 committee members, industry experts,
• Led the revision of standards NB/T 47004.1-2025 Plate Heat Exchangers Part 1: Removable Plate Heat and industry representatives from across the country gathered to discuss a new future for the development of heat exchangers.
Exchangers and NB/T 11917-2025 Diffusion-Bonded Heat Exchangers .
Participation in the As the host of the meeting, the Company actively played a leading role in the industry, making a key contribution to promoting the standardised
• Participated in the revision of standards NB/T 47048-2025 Spiral Plate Heat Exchangers , GB/T 46193-2025
formulation of industry development of the industry, technological progress, and the enhancement of international competitiveness.
standards Technical Requirements for Vertical Cylindrical Molten Salt Storage Tank , GB/T 29459.3-2025 Small Punch
Test Methods of Metallic Materials for In-service Pressure Equipment—Part 3: Method of Test for Fracture
Toughness .
• In June 2025, the Technical Committee convened a meeting to review comments on NB/T 47048 Spiral
Plate Heat Exchangers .
• In September 2025, we convened a meeting on three national standards including GB/T 151 Heat
Participation in Exchangers .
industry seminars • In November 2025, we hosted the Re-election of the Fourth Heat Exchangers Sub-Committee of China
Standardisation Committee on Boilers and Pressure Vessels and the 2025 Work Meeting.
• In December 2025, we convened a seminar on the manufacturing, inspection and testing technology
exchange, as well as the formulation and revision of standards, for air-cooled heat exchangers.
Re-election of the Fourth Heat Exchangers Sub-Committee of China Standardisation Committee on Boilers and Pressure Vessels and
• Lanzhou Testing Institute continued to advance the registration of CPI products in the petroleum the 2025 Work Meeting Site
drilling and production industry, as well as the industry self-regulatory qualification assessment for
Brand building remanufacturing and repair units, enhancing product quality, brand recognition and international credibility
progress of the petroleum and petrochemical equipment industry, strengthening quality management and brand
development, improving CPI product certification and accreditation, and laying a foundation for the
sustainable development of the industry.
• Lanzhou University of Technology participated in the project, Research on Key Technologies and
Demonstration Application of Deep Cryogenic Large-Volume Liquid Hydrogen Spherical Tanks ,
systematically studying the operating conditions, loads borne, and failure modes of liquid hydrogen
spherical tanks; establishing thermo-mechanical coupling design calculation and evaluation criteria, as
well as thermal insulation and cold preservation design calculation methods for liquid hydrogen spherical
tanks; and developing new structures suitable for vacuum composite insulated deep cryogenic spherical
Industry- tanks, such as support structures and piping connection structures. At present, the trial manufacture of a
university-research 25 m3 prototype has been completed.
cooperation • East China University of Science and Technology participated in the project, Investigation and Structural
Design of Primary Surface Heat Exchangers , forming a technical solution applicable to the processing,
assembly, and welding of microscale heat transfer plates, and the final product has been completed.
• Tianjin University of Science and Technology participated in the project, Research on Melt Crystallisation
Purification Technology for High-Purity Polyester Fine Chemical Products , studying the melt crystallisation
purification process for fine chemical and petrochemical products represented by TDI and developing a
complete set of melt crystallisation equipment. The final technical report has been completed.
• Collaborated with China Nuclear Power Engineering Co., Ltd. to carry out Research on Key Technologies
for Passive Containment Heat Removal Based on the Separated Plate Heat Exchanger (SPHP) .
External collaboration
• Collaborated with Hefei General Machinery Research Institute Co., Ltd. to conduct the Sinomach Group’s
projects
key R&D project, Research on Key Technologies for Coal Slurry Heat Exchangers in Large-scale Direct Coal
Liquefaction Units .
Safety and Quality of Products and Services
The Company puts forward the philosophy that “Quality Is Life, Brand Builds Future,” as well as the principle that “Product Quality is User Safety”, emphasising that LANPEC’s Main Licences and Certificates Obtained in 2025
quality is the foundation of the Company’s existence and its strategic core, reflecting the Company’s pursuit of excellence in quality and the importance we attach
to our own brand.
Governance
• LANPEC - Manufacture License for Pressure Vessels A1 A6 (No. • SHLB LANPEC (Shanghai) Manufacturing Production License for
The Company strictly complies with laws, regulations, and rules such as the Product Quality Law of the People’s Republic of China , the Standardisation Law of TS2210097) - 2029 Pressure Vessels (A1) (No. TS2210855-2028)
the People’s Republic of China , the Special Equipment Safety Law of the People’s Republic of China , TSG Z7001-2021 Accreditation Criteria on Special Equipment
Inspection Agencies and TSG Z7002-2022 Accreditation Criteria on Special Equipment Testing Agencies , and has formulated systems such as the Quality Licensed sub-items: A1 and A6 Manufacturing of Stationary Pressure Scope of licence: A1, A2, D Manufacturing of Stationary Pressure
Improvement and Service Control Procedures and the After-sales Service Control Procedures to systematically standardise service standards throughout the Vessels. This certificate was obtained on 19 December 2024 Vessels
entire process from delivery to after-sales, and continuously enhance customer satisfaction and brand trust. In 2025, the Company did not experience any non-
compliance incidents involving the health and safety impacts of products and services.
• LANPEC - Manufacture License for Pressure Vessels A3 - (No. • SHLB - Manufacture License for Pressure Vessels (A3) (No.
The Company has established a three-tier quality management safeguarding model, and clarified the responsibilities at each level to strengthen the TS2262106) - 2028 TS2231B60-2028)
implementation of quality responsibilities. At the same time, the Company has established three systems, namely the Performance Appraisal Management
Measures , the Quality Assessment Measures (Trial) and the Management Measures for Accountability and Responsibility Investigation for Quality Issues from Licensed sub-item: Spherical Tanks for Stationary Pressure Vessels Licensed sub-item: Spherical Tanks for Stationary Pressure Vessels
External Feedback (Trial) , linking quality performance appraisal with bonus distribution to ensure that employees attach importance to quality in principle and that (A3). This certificate was obtained on 3 February 2024 (A3). This certificate was obtained on 16 August 2024
quality is guaranteed through systems.
• LANPEC - ASME U Steel Stamp Authorisation Certificate ASME U • LANPEC (Shanghai) - ASME U U2 S Steel Stamp Authorisation
LANPEC’s Management Structure for Safety and Quality of Products and Services
(40136) - 1 December 2028 Certificate (No. 45623 45624 53764)-2028
As the Company’s core functional department for quality control and Scope of licence: Manufacture of U steel stamp products Scope of licence: Manufacture of U/U2/S steel stamp products
management, it is responsible for Company-level quality management, the
quality management system, regular quality meetings, quality reviews, quality • LANPEC Installation License for Pressure Pipeline (GC2) (No. • SHLB - Industrial Pipeline Installation (GC1) Certificate (No.
Quality TS3862028) - 2028 TS3831063-2028)
exchanges, Quality Month activities, etc., and, on behalf of the Company,
Management
Department supervises and provides guidance on design quality, production quality, the
quality of engineering projects, and the quality of testing projects. Licensed sub-item: Industrial Pipeline Installation (GC2). This Scope of licence: Industrial Pipeline Installation (GC1). This certificate
certificate was obtained on 23 January 2024 was obtained on 12 March 2024
At the manufacturing subsidiary level, it coordinates and advances process • LANPEC - Pressure Pipeline Design for Industrial Pipelines (GC1) (No.
Process
Quality technology management and quality management, supervises and guides TS1862009-2029)
Department the Manufacturing Department’s process and quality work, and monitors and
inspects process discipline and production quality during the Manufacturing
Department’s production process.
Quality Office (After-sales At the Manufacturing Department level, it is specifically responsible for matters
Service Office)
related to product manufacturing quality inspection.
Strategy
As the global economic landscape undergoes profound adjustment and market competition becomes increasingly intense, quality has become a key factor in
The Company has established a documented quality management system in accordance with the GB/ corporate core competitiveness. The safety and quality of products and services are not only the fundamental guarantee for sustainable corporate development,
T 19001-2016 Quality Management Systems - Requirements to ensure the high quality of products and but also the basic commitment to safeguarding safety and honouring customer trust. If the Company’s quality management is poor, it can easily trigger safety
services. The Company has passed the GB/T 19001-2016 and ISO 9001:2015 Quality Management System incidents and customer losses, thereby undermining market confidence and damaging the industry ecosystem. Adhering to high-standard quality control can not
certification, valid until 3 December 2026. In 2025, the Company successfully obtained a number of licences only enhance customer satisfaction and brand reputation, but also drive the continuous improvement of the overall reliability of the industry chain.
and certificates, further consolidating our compliance foundation and professional capabilities in special
equipment manufacturing and technical services, and demonstrating our determination to continuously
enhance service standards and fulfil our quality commitment to customers and society.
Quality Management System Certification
LANPEC’s Risks and Opportunities Analysis for “Safety and Quality of Products and Services” LANPEC’s Key Actions on Product Quality in 2025
Type Specific Description Timeframes of Impact Financial Impacts Response Strategies Category Measures
In the process of advancing intelligent
• Each month, we coordinated relevant departments to hold quality regular meetings, focusing on quality issues
and digital product upgrades, if the
arising in design and manufacturing, conducting in-depth analysis of the causes, formulating corrective measures,
application of new technologies lacks
Increase in operating costs Deepen the regular quality and urging rectification, thereby establishing a closed-loop mechanism of problem analysis, measure formulation,
Technology transition sufficient validation or is insufficiently
Medium and long term Decrease in operating meeting mechanism rectification supervision, and effectiveness verification. After each meeting, we promptly issued meeting minutes
risk compatible with existing systems, it
revenue and quality briefings, and synchronised them with all responsible departments and the Company’s management. In
may affect product stability and user
• Improve the quality 2025, the Company held 24 regular quality meetings.
safety, and increase after-sales service
and safety management
costs.
system covering the • We established a quality review and accountability mechanism. In response to typical quality issues and process
entire lifecycle. loopholes that occurred, we promptly organised the relevant responsible departments to carry out quality
If product or service quality issues Implement quality review and
• Strengthen risk reviews, with a focus on investigating and analysing the causes of the issues and the resulting impacts, clarifying
during use lead to safety incidents rectification
assessment and testing responsibility attribution, and formulating detailed improvement measures. In 2025, the Company had already
or operational failures, this may
Liability and reputation Short, medium, and Short, medium, and long verification before the conducted 29 quality reviews.
significantly affect customers’
risk long term term introduction of new
production, damage our reputation,
technologies.
weaken market trust, and result in legal • In 2025, we established a Quality Award, formed the QC Group, and carried out lean management and 6S
liabilities and customer loss. • Continue to track management initiatives.
user feedback and Carry out Quality Month • We conducted the “Nine Ones” thematic activities, whereby each branch carried out one quality seminar, one quality
dynamically optimise activities improvement and innovation initiative, one quality cost analysis, one quality risk analysis, one quality standardisation
As customers’ requirements for product performance and activity, one quality responsibility commitment, one quality experience sharing session, one quality skill enhancement
equipment reliability and service experience. initiative, and one batch of quality benchmark promotions, comprehensively improving product and service quality.
assurance continue to increase, having Decrease in operating costs
Market opportunity a comprehensive quality system will Medium and long term Increase in operating
make it easier to gain the trust of the revenue • Training programmes included “Quality Assurance Engineer (Chief Quality and Safety Officer) Training and
high-end market and secure long-term Strengthen quality Appraisal”, “2025 Tsinghua Quality Powerhouse Forum”, “Specification for Evaluating Quality Management Capability
cooperation opportunities. training of Manufacturing Enterprises”, “ASME Quality Control Manual Training”, “Lean Production Management”, etc. Training
formats included external training, internal training, online learning, etc.
To enhance quality management awareness, promote the suitability, adequacy, and effectiveness of the quality management system, accelerate the digital
transformation of quality management, and improve the quality performance evaluation system, the Company has formulated the 15th Five-Year Development Plan
• In 2025, the Company conducted on-site supervision and inspection of the manufacturing quality assurance
in 2025, providing goals and an action path for comprehensively standardising quality management.
system of the Shanghai Manufacturing Department, the manufacturing quality assurance system of the Lanzhou
Manufacturing Department, testing business sites, and engineering project sites. Targeted corrective measures and
Implement quality supervision
improvement recommendations were proposed for the issues identified, and the relevant units have completed
and inspection, internal
Impacts, Risks and Opportunities Management
rectification as required.
audits, and closed-loop
• In 2025, the Company carried out internal audits of the quality assurance systems at the Lanzhou Base and the
rectification
Shanghai Base. In response to the non-conformities identified during the 2025 internal audits of the manufacturing
The Company systematically identifies, assesses, and manages quality risks and potential impacts throughout the entire lifecycle, and actively improves various quality assurance system, the relevant departments have completed all rectifications, and the auditors’ follow-up
management mechanisms, seizes opportunities arising from technological upgrades, enhanced standards, and changes in market expectations. By strengthening verification confirmed that the completion of the corrective measures was satisfactory.
process control and promoting continuous improvement, we continuously enhance product reliability and customer satisfaction.
Product Quality Training on the Guidelines for Lifecycle Management of QC Group Activities
The Company continues to strengthen the development of a comprehensive quality management system, systematically advancing key measures such as the
regular quality meeting mechanism, quality review and rectification, Quality Month activities, special training, and internal audits. Through institutionalised and On 24 December 2025, the Company carried out the “Launch Ceremony For QC Group
standardised quality management practices, the Company continuously enhances quality assurance capabilities throughout the entire product lifecycle, driving Activities” and the “LANPEC Training on the Guidelines for Lifecycle Management of
high-quality development to advance in depth. QC Group Activities”, aiming to further consolidate the foundation of corporate quality
management, bring together the combined strength of all employees in participating in
Lanzhou Testing Institute provides technical documents such as inspection and testing reports and evaluation conclusions as its core service content. In cases quality improvement, foster a positive atmosphere in which everyone cares about quality and
where technical documents contain errors, potential compliance risks, or customer complaints, Lanzhou Testing Institute carries out the retrieval and destruction everyone participates in improvement, and promote the quality management philosophy to
of documents in an orderly manner by clearly defining the scope of recall and formulating remedial measures, while maintaining communication with customers take deeper root in people’s minds.
throughout the entire process. Afterwards, it conducts an in-depth analysis of the root causes of the issues, implements rectification measures, and strengthens
Training Materials
subsequent monitoring, thereby completing the recall of documents such as inspection and testing reports.
LANPEC’s Safety and Quality of Products and Services Targets and Progress in 2025
LANPEC (Shanghai) was Recognised as a 2025 Shanghai Manufacturing Champion Enterprise,
Leading the Development of Core Equipment for Molten Salt Energy Storage
LANPEC (Shanghai) was successfully selected for the List of 2025 Shanghai Manufacturing Champion Enterprises published by the Shanghai
Municipal Commission of Economy and Informatisation, by virtue of its leading technological advantages and extensive market applications in the Target: Product quality pass rate: 100% Target: Customer complaint handling rate: 100%
niche market of molten salt energy storage. Molten salt energy storage is an important component of new energy storage technologies. As core
equipment in the industrial chain, molten salt storage tanks directly determine the upper capacity limit, safety performance, and operational
efficiency of energy storage systems.
Achieved Achieved
This recognition not only serves as authoritative certification of LANPEC (Shanghai)’s leading market position in the molten salt storage tank
Target: Number of product recall incidents: 0 Target: Customer satisfaction: 100%
sector, but also highlights its core role in focusing on energy equipment as its principal business and strengthening key links in the industrial
chain, providing strong support for safeguarding national key energy projects and ensuring the security of the energy equipment industry.
Achieved Achieved
Customer Service Target: Number of major safety and quality liability incidents: 0
Against the backdrop of the continuous expansion of the Company’s international business presence, we attach great importance to customer feedback and
regard it as a valuable resource for optimising service processes and driving innovation and development. The Company has established a sound after-sales
service management system to ensure compliance throughout the entire service process. Achieved
Customer Service Process
After product delivery, Upon receiving customer For equipment quality After the resolution
• The Company’s plate heat exchangers (WPHE/GPHE/SPHE • The Company won two second prizes for Outstanding QC
business personnel feedback, the after-sales issues, technical of equipment quality
series) were selected for the 2025 Shanghai High-tech Quality Management Achievements in Gansu Province.
maintain ongoing service department is experts are organised issues, the responsible
Achievement Transformation Project by the Science and
communication with notified promptly; routine to analyse the root departments complete
Technology Commission of Shanghai Municipality.
users and respond issues are responded to causes and develop service records, which
promptly to service within eight hours, while solutions, which are are archived after
needs matters involving safety implemented upon customer evaluation,
or production impacts are review by the technical forming a closed-loop
handled immediately head and approval by management process
the Quality Assurance
Engineer
Lanzhou Testing Institute standardises its customer feedback management work in accordance with the Complaint and Grievance Handling Procedures , led by
• LANPEC (Shanghai)’s “Intelligent 10,000-metre Ultra-deep
the General Office, and conducts regular or irregular return visits through various forms such as letters, telephone calls, and on-site visits, while simultaneously
• The Company received multiple honours in the 2025 Well High-temperature and High-pressure Environment
completing return visit records and satisfaction questionnaires. The customer satisfaction survey covers key dimensions across the entire process, including the
Safety Management Standardised Team Building from Simulation System” project won the Third Prize in the
standardisation of business negotiations, the professionalism of inspection services, report and objection handling, and the level of information service support,
the China Association of Work Safety, with the plate 2024 Jinshan District Science and Technology Innovation
comprehensively reflecting the service experience. Based on the analysis of customer feedback, the testing institute revises relevant procedural documents in a
production line team at the Shanghai Base rated as a “Level Achievement Awards.
targeted manner, implements corrective measures, and continuously optimises the quality management system. In 2025, Lanzhou Testing Institute received three
letters of thanks from customers, fully reflecting customers’ high recognition of the Company’s professional capabilities, service attitude, and response efficiency. 1 Standardised Team”, and the non-destructive testing
team at the Lanzhou base rated as a “Level 2 Standardised
Team”.
Indicators and Targets
• LANPEC (Shanghai) was selected for the List of 2025
Centred on the safety and quality of products and services, the Company has set clear management objectives in the 15th Five-Year Development Plan. To ensure Shanghai Manufacturing Champion Enterprises published
the effective implementation of the objectives, the Company has established a system of performance indicators and, through various mechanisms, conducts by the S? hanghai Municipal Commission of Economy and
dynamic monitoring, regular reviews, and continuous improvement of key indicators. No major product-related safety or quality liability accidents occurred in 2025. Informatisation.
Data Security and Customer Privacy Protection Special Training Session on Cybersecurity
On 4 November 2025, the Company held a special training session on cybersecurity,
The Company strictly complies with the requirements of national laws, regulations, and documents such as the Cybersecurity Law of the People’s Republic of China ,
aimed at comprehensively enhancing the cybersecurity awareness of all employees,
the Data Security Law of the People’s Republic of China , the Personal Information Protection Law of the People’s Republic of China , and the Regulations on the
strengthening the Company’s line of defence for information security, and effectively
Classified Protection of Cybersecurity . In 2025, the Company did not experience any data security or customer privacy breach incidents.
preventing cyber threats such as ransomware, phishing emails, and watering hole
The Company has formulated the Management Measures for Computers and Information Systems , the Management System for Information Systems, Information websites.
Equipment and Storage Devices , and the Security and Confidentiality Strategy for Classified Computers . In 2025, the Company formulated the Interim Measures for
Drawing on real cases such as ransomware and phishing emails, the Company analysed
Cybersecurity Management to strengthen cybersecurity management, implement the cybersecurity accountability system, improve the cybersecurity assurance
the harm posed by cyber threats and, on this basis, systematically communicated the
system, and enhance cybersecurity protection capabilities.
cybersecurity management measures of higher-level units, thereby deepening security
In accordance with the principles of “the person in charge is responsible” and territorial management, Party organisations at all levels bear primary responsibility Special Training Session on Cybersecurity Site
awareness into a code of conduct that every employee must follow.
for the cybersecurity work of their respective enterprises. The Party Committee Secretary is the first responsible person, and the member of the leadership team
in charge of cybersecurity is the directly responsible person. The Company’s Financial Assets Department (Information Management Department) is the functional
management department for the Company’s cybersecurity and informatisation, responsible for the daily management of cybersecurity and for coordinating and
organising cross-departmental and cross-enterprise cybersecurity.
The Company has formulated the Overall Informationisation Plan , focusing on the decision analysis level, executive management level, and business implementation Supply Chain Security and Management
level, and developed plans covering the construction of the decision analysis system, the integrated supply chain and finance system, and the project management
platform, among other areas, with a commitment to achieving efficient collaboration in data management.
LANPEC has established a supplier system with extensive sources, a diverse structure, and stable cooperation. Suppliers are categorised and graded, and
In 2025, the Company strengthened system security protection, advanced information system development, and improved permission management, thereby
differentiated management is implemented based on their classifications. The Company categorises suppliers into three main categories, including Category A
safeguarding customer information and commercial secrets while effectively supporting business collaboration and management decision-making, and laying a
core components for special equipment, Category B general equipment components, and Category C low-value consumables.
solid security foundation for digital transformation.
LANPEC’s Key Measures for Data Security and Customer Privacy Protection Governance
The Company has formulated the Procurement Management Measures and revised the Supplier Management Measure s in 2025, establishing a clear and efficient
Category Specific Content supply chain management framework aimed at ensuring the quality of procured materials, reducing procurement risks and costs, and enhancing supply chain
reliability.
• The Company’s core systems all use strong password authentication for login, and data access
LANPEC’s Main Management Structure for Supply Chain Security and Management
permissions for business system data are strictly segregated based on actual business needs.
System security • In terms of network security, security protection measures such as firewalls, intrusion detection, and
assurance internet behaviour management are adopted.
• The filing for Level 2 and Level 3 classified protection of cybersecurity for information systems is
completed to ensure the security and compliance of the infrastructure. It is the supplier management body, responsible for approving major matters such as supplier admission,
Procurement assessment, and exit, as well as approving the annual list of qualified suppliers.
• In January 2025, the U8 ERP system was launched, achieving foundational supply chain management;
Management
in June, the DTS system was launched, connecting business and financial data links and realising the Working Group
Information
integration of business and finance.
system
development • At the beginning of 2025, the construction of the operational management dashboard was initiated,
It is the centralised supplier management department. Its main responsibilities include establishing the
integrating multidimensional information such as operational data, project progress, and key performance
indicators, and was fully implemented by the end of the year. Operations supplier management system; formulating and revising supplier management rules and regulations;
Management organising supplier admission evaluations, on-site reviews, annual assessments, and grading evaluations;
• Customer information is restricted to internal use within the relevant business department, and cross- Department establishing and maintaining the List of Qualified Suppliers ; and taking the lead in the selection and
departmental access is subject to the approval process. management of strategic suppliers, as well as the establishment and management of the blacklist.
• In conjunction with the development of the Company’s information system (DTS), tiered access rights have
Customer information
been established for the viewing and use of customer information, with business departments only having
access rights It is the responsible department for supplier sourcing and daily management,
management access rights to their own department’s customer information, and functional management departments
with main responsibilities including sourcing, recommending, and applying for the
having access rights corresponding to their management responsibilities.
• Through the triple controls of policies, technology, and processes, a closed-loop, highly confidential Procurement admission of new suppliers; completing and updating admission materials such as the
Department Supplier Questionnaire , and maintaining the basic information in the list of qualified
customer information access rights management system has been established.
suppliers; being responsible for the day-to-day maintenance of supplier relationships,
and dynamically monitoring their credit and operating status, etc.
Strategy By implementing green procurement, strengthening joint integrity-building, and controlling the sources of conflict minerals, the Company has established
a sustainable and compliant supply chain management system, which not only effectively prevents environmental, social, and governance risks, but also
demonstrates our responsibility and commitment to promoting the coordinated sustainable development of the industrial chain.
The safety and sustainability of the supply chain concern not only the stability of the Company’s production and delivery, but also directly affect the resource
efficiency and environmental footprint of the upstream and downstream segments of the industrial chain. If supply chain management is weak, it is vulnerable to
geopolitical shocks and fluctuations in raw material prices, which may lead to project delays and even trigger a crisis of customer trust. If a green and transparent LANPEC’s Key Actions and Measures for Supply Chain Security and Management
supply chain system is established, it can not only safeguard the continuity of the Company’s business, but also drive suppliers to improve environmental protection
and labour standards, reducing carbon emissions and resource waste across the entire value chain.
Category Measures
LANPEC’s Risks and Opportunities Analysis for “Supply Chain Security and Management”
Timeframes of • In our business practices, the Company adheres to green procurement, giving priority to and selecting
Type Specific Description Financial Impacts Response Strategies
Impact suppliers with EHS (Environmental, Health and Safety) management systems. At the same time, for
A tightening supply of key raw materials and core Increase in Green supply chain
• Establish a localised suppliers with outstanding ESG performance, the Company includes this as a bonus item in supplier
components may result in extended procurement Medium and long operating costs partnership management and gives priority to cooperation under the same conditions.
Market risk supply mechanism for key
cycles and significant cost fluctuations, affecting term Decrease in
materials, and give priority
the on-schedule delivery of projects. operating revenue
to developing domestic
If effective ESG audits are not conducted on alternative suppliers. • The Company has formulated and signed the Integrity Cooperation Agreement with suppliers to regulate
suppliers, issues such as non-compliant labour
Medium and long Decrease in • Incorporate ESG clauses Integrity supply transaction conduct, jointly foster a fair and impartial trading environment, prevent and resist commercial
Reputation risk practices and failure to meet environmental
term operating revenue into the supplier admission chain bribery, and prevent the occurrence of non-compliant, disciplinary, and illegal incidents.
standards may arise, potentially triggering public and annual assessment • As of the end of 2025, more than 700 Integrity Cooperation Agreements had been signed.
opinion crises and damaging corporate reputation. system, and implement tiered
management.
If we enhance our proprietary technology • Carry out supply chain
• The Company currently does not involve the use of 3TG (tantalum, tin, tungsten and gold) mineral
accumulation and engineering experience in areas Medium and long Increase in social responsibility training
Market opportunity resources in its production processes. We adhere to responsible procurement and commit not to use
such as efficient heat exchange, we will secure term operating revenue and joint audits to promote
minerals sourced from conflict-affected areas, and explicitly require suppliers not to use minerals from
more orders and expand our market share. compliance across the entire
Conflict mineral such regions or those that violate our policies.
chain.
management • The Company undertakes to comply with Organisation for Economic Co-operation and Development (OECD)
Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk
Impacts, Risks and Opportunities Management Areas and the provisions relating to conflict minerals (tantalum, tin, tungsten and gold) under the Dodd-
Frank Wall Street Reform and Consumer Protection Act .
The Company’s supplier management follows the principles of openness, fairness, impartiality, compliance, integrity and merit-based selection. By leveraging
professional and information-based approaches, and through mechanisms such as admission reviews and dynamic assessments, we achieve systematic, graded
management of suppliers throughout their lifecycle.
LANPEC’s Supply Chain Security and Management Targets
LANPEC’s Main Processes and Contents of Supplier Management Indicators and Targets and Progress
Process Specific Content
To enhance the sustainability of supply chain management, the Company will
• Based on suppliers’ basic information, qualifications, relevant performance, management systems, equipment capabilities,
gradually establish a quantifiable and traceable supply chain management
technical capabilities and other aspects, they are included in the list of qualified suppliers after passing the assessment.
indicator system. By setting clear annual targets and performance Target: Suppliers’ Integrity Cooperation Agreement signing rate: 100%
• According to material classification, differentiated assessment methods are adopted. For Category A, a “document review + on-
standards, we will drive the supply chain from merely “ensuring supply”
site or online qualification assessment” approach is adopted; for Category B, a “document review + on-site spot-check assessment
Admission and towards providing strong support for building a safe, transparent, green, and
of key items” approach is adopted; for Category C, a “document review” approach is adopted. The supplier re-evaluation cycle for
review efficient modern supply chain system.
Category A and Category B materials is three years, and the supplier re-evaluation cycle for Category C materials is five years. Achieved
• In 2025, a new supplier pre-assessment process was added. On the premise of controllable risk (preliminary pre-assessment), this
provided the necessary flexibility for procurement activities, while adhering to the bottom line that no long-term cooperation may
be carried out without formal admission.
• Annual dynamic appraisals are conducted for qualified suppliers, and the appraisal dimensions include quality, delivery, price,
willingness to cooperate, and service responsiveness, with weighted scoring applied. Based on the assessment results, suppliers
Dynamic are classified as excellent, good, qualified, or unqualified.
appraisal • Excellent suppliers are prioritised for invitation to participate in procurement and are granted preferential payment terms, among other
benefits. For suppliers with an assessment score of less than 70 points, the Company suspends their qualified supplier status and orders
rectification within a prescribed time limit; if they remain unqualified after rectification, their qualified supplier status is terminated.
Employee Rights and Benefits Industry-university Cooperation with East China University of Science and
Technology to Cultivate Outstanding Talent Jointly
Employment and Retention In November 2025, LANPEC held the opening event for the graduation internship programme
for students majoring in Process Equipment and Control Engineering from East China
University of Science and Technology, as well as the unveiling ceremony for the practical
The Company strictly complies with the requirements of laws, regulations, and and other regulatory requirements such as the Labour Law of the People’s Republic
teaching base, at the Company’s Shanghai Base. This training programme lasted for six
of China , the Labour Contract Law of the People’s Republic of China , the Employment Promotion Law of the People’s Republic of China , the Law of the People’s days, with a total of 120 students majoring in Process Equipment and Control Engineering
Republic of China on the Protection of Minors , the Provisions on the Prohibition of Using Child Labour , resolutely eliminates any form of illegal employment from East China University of Science and Technology participating.
practices such as forced labour, discriminatory employment, and child labour, and effectively safeguards the legitimate rights and interests of employees. In 2025,
the Company did not employ child labour, and no incidents of forced or compulsory labour occurred. The Company arranged training and learning content covering R&D and design, specialised
product technologies, processes and quality control, inspection and testing, and other
The Company continuously improves its internal human resources management system and has formulated systems such as the Personnel Management System
related areas. The knowledge points spanned the entire lifecycle of energy equipment,
and the Compensation Management Measures , clarifying standardised procedures for each process including recruitment, hiring, and contract signing, to ensure Plaque of East China University of Science and
helping students deepen their understanding of enterprises, product technologies, and
that employment practices are lawful and compliant, fair and just, and transparent and efficient. In 2025, the Company newly formulated the Management Technology Practical Teaching Base
engineering practice. This event was an important achievement for the Company in
Measures for the Postdoctoral Research Workstation , which clarified the management bodies and their responsibilities, as well as the recruitment requirements strengthening collaborative exchanges with universities and promoting industry-university-
for postdoctoral personnel, in order to further implement the strategy of innovation-driven development and talent-driven enterprise development.
research cooperation.
LANPEC’s Employment Principles
Fairness and transparency
To ensure equal employment opportunities and career development space for all, the Company has consistently adhered to the principles of
justice, fairness, and openness in talent selection and employment. During the talent assessment process, the Company comprehensively considers
At the launch ceremony of the 2026 Autumn Campus Recruitment Month for “Six Universities in the Northeast” of Shanghai, the Company was
individuals’ educational background, professional skills, and work experience, ensuring the transparency and fairness of the selection process.
awarded the honours of “Best Employer” by the “Six Universities in the Northeast” of Shanghai and “Industry-Education Integration Training Base”
by the University of Shanghai for Science and Technology.
Anti-harassment
The Company is committed to eradicating conduct in the workplace that infringes upon personal dignity, as well as sexual harassment and abuse of
power that violates others’ wishes.
Anti-child labour and anti-forced labour
The Company does not employ child labour under the age of 16, nor does it use forced labour, debt-bonded labour, slavery or human trafficking, and
does not use involuntary prison labour. Juvenile workers aged 16 to under 18 must be managed in accordance with the Law of the People’s Republic of
China on the Protection of Minors.
Personal privacy protection
The Company attaches importance to protecting employees’ personal privacy and does not disclose employees’ personal privacy information to
external parties without their consent. Best Employer, Industry-Education Integration Training Base
Note: The “Six Universities in the Northeast” of Shanghai include Fudan University, Tongji University, Shanghai University of Finance and
In terms of employee recruitment, each department of the Company submits the Annual Position Requirement Application Form at the year-beginning based on Economics, Shanghai International Studies University, Shanghai University, and the University of Shanghai for Science and Technology.
annual staffing quotas and business development plans. After approval by the Company’s leadership, it is incorporated into the annual recruitment plan. Based on
the annual recruitment plan, the Company carries out talent selection through multiple channels such as campus recruitment and online recruitment platforms,
in strict accordance with job responsibility requirements. During the recruitment process, no differential treatment is given on the basis of religion, ethnicity,
gender, political views, region, skin colour, or other such factors, thereby effectively safeguarding every candidate’s equal right to employment. The Company
comprehensively assesses candidates’ educational background, work experience, professional skills, personal capabilities, and health condition, ensuring scientific,
professional and compliant talent selection.
In 2025, the Company recruited 59 new employees, including 12 fresh graduates. By the end of 2025, the Company had 6 demobilised military personnel.
Employee Rights and Benefits
The Company has consistently adhered to being guided by technological innovation, attaches great importance to collaborative innovation and talent development, The Company has established a system encompassing basic rights and interests protection, a competitive remuneration structure, and a diversified non-
and continuously deepens strategic cooperation with multiple universities and research institutes. Focusing on scientific research, talent cultivation, and practical monetary benefits framework, effectively safeguarding employees’ lawful rights and interests and consolidating the foundation for talent development.
education, the Company has carried out extensive and in-depth collaboration with partners. Through resource sharing and complementary advantages, we The Company has formulated systems such as the Compensation Management Measures , clarifying the implementation rules for performance appraisal
have established a deeply integrated mechanism for attracting, cultivating, and retaining talent, providing solid talent support and innovation assurance for our and bonus distribution for functional departments, business and R&D departments, and departments under the production segment, and standardising the
deepened reform and high-quality development. remuneration management system.
Occupational Health and Safety
Overview of LANPEC’s Employee Rights and Benefits
Basic rights Remuneration benefits Non-remuneration benefits
• The Company pays social insurance for • Each position corresponds to a corresponding salary range, • A comprehensive benefits package is provided,
The Company strictly complies with relevant laws, regulations and policy In 2025
employees. and employees’ remuneration is determined based on a including housing delivery subsidies, high-
provisions such as the Work Safety Law of the People’s Republic of China and
• We provide statutory holidays, paid annual comprehensive assessment of their position grade, work temperature allowances, birthday allowances,
the Law of the People’s Republic of China on the Prevention and Control of
leave, sick leave, marriage leave, maternity performance, capabilities and qualities, and other factors. commuter shuttle buses, and three free
Occupational Diseases , continuously improves the intrinsic safety level, and
leave and other types of leave. • Remuneration allocation is established on the basis of meals.
lays a solid foundation for high-quality sustainability. In 2025, the Company
performance appraisal, with remuneration determined The Company experienced no incidents of deaths due
experienced no incidents of deaths due to work-related injuries, and
by position, adjusted with position changes, and varied
received no penalties from the competent authorities for violations of laws to work-related injuries, and received no penalties from
according to position, while giving priority to performance
and regulations related to occupational health and safety. the competent authorities for violations of laws and
and linking it to the Company’s overall benefits.
regulations related to occupational health and safety.
Governance
The Company has formulated and implemented the Safety/Environmental Management Procedures , systematically carrying out hazard identification, risk assessment
and graded management, identifying major hazard sources and formulating targeted control plans, preventing, reducing or eliminating occupational health and safety
risks at the source, and promoting safety management towards greater refinement and standardisation. At the same time, the Company has established a full-chain
institutional system covering responsibility implementation, health surveillance, education and training, warning and notification, and monitoring and evaluation, including
the Responsibility System for the Prevention and Control of Occupational Disease Hazards , the Management Provisions on Occupational Health Examinations, the Publicity ,
Education and Training System for the Prevention and Control of Occupational Diseases , the Warning and Notification System for Occupational Disease Hazards , the
The Company deepens its people-centred employee care practices. Through measures such as health protection, targeted condolence, commuting support, and Management System for the Monitoring and Evaluation of Occupational Disease Hazards and other rules and regulations, comprehensively preventing and controlling
improvements to the working environment during breaks, we convey the warmth of the organisation and enhance employees’ sense of belonging, cohesion, and well-being. occupational disease hazard factors in the workplace and effectively safeguarding employees’ occupational health rights and interests.
LANPEC’s Key Measures for Employee Care in 2025 The Company continuously improves a comprehensive, clearly defined, effectively implemented occupational safety and health management system and has established
a Work Safety Committee with the Chairman as the first responsible person, and has set up a Work Safety Office under it to coordinate daily safety management, while
formulating systems such as the Implementation Rules for the Interim Provisions on Shared Responsibilities of Party and Government Leadership and Dual Responsibilities
Dimension Specific Measures for One Post in Work Safety and the Measures for the Assessment of Work Safety Responsibility Targets to reinforce management responsibilities at all levels.
• Actively responded to the philosophy of “helping others when healthy, receiving help when in need”, LANPEC’s Management Structure for Occupational Health and Safety in 2025
provided Shanghai employee mutual assistance coverage for 570 employees, and safeguarded employees’
health through this “second medical insurance”.
Health care • In conjunction with the Community Health Service Centre in Lvxiang Town, conducted the Employee Health Day The First Responsible Persons of the
protection Company The Company has established an occupational health and safety
activity, “Medical and Enterprise Joining Hands to Build Health,” every month, mainly providing traditional Chinese
Party Committee Secretary and Chairman management system in accordance with the requirements of GB/T
medicine physiotherapy services for employees. In 2025, 10 sessions had been carried out.
• Invited Tinglin Hospital to jointly carry out the “Healthy Enterprise Tour” campaign and provide a series of
Requirements with Guidance for Use , and has obtained certification,
health and medical services.
which is valid until 3 December 2026.
• Visited 23 hospitalised employees, extended condolences five times to the immediate family members of
Work Safety Committee
deceased employees, once to female employees who gave birth, and 26 times to retired employees.
Employee condolence • Carried out the activity of “Let the Bright Party Flag Fly on the Frontline”, with leadership and labour union
and support chairpersons leading teams to visit frontline employees; extended birthday greetings to 45 employees on
long-term assignments.
• Distributed festive benefits to all employees twice during the Spring Festival and Mid-Autumn Festival.
Person in Charge of Safety
• Opened two shuttle bus routes in the petrochemical area where employees live in concentrated Assistant General Manager
Commuting convenience
communities, which not only facilitated commuting and saved time, but also provided convenience for new
support
employees in choosing where to live.
Occupational Health and Safety Management System Certificate
• Actively implemented the implementation plan of the Municipal Federation of Trade Unions, and built two
Improvement of the new restrooms equipped with tables, chairs, air conditioning and other facilities at frontline production Work Safety Management Department
working environment workplaces. Provided cooling drinks during the summer, with the aim of improving employees’ working Work Safety Office
conditions.
Strategy Impacts, Risks and Opportunities Management
Occupational health and safety not only concern employees’ individual well-being but also directly affect operational efficiency. If we systematically promote To address occupational health and safety risks and seize potential opportunities, the Company has established a systematic action management system covering
the development of health and safety systems, this can enhance employees’ sense of belonging and productivity, and reduce workplace injuries; inadequate production safety, occupational health management, hazardous chemicals control, and emergency response. Through a series of measures, including improving
management may result in occupational injuries or chronic health issues. institutional mechanisms, strengthening hierarchical risk control, increasing safety investment, and deepening education, training, and practical drills, we
consolidate the safety foundation, effectively prevent major safety risks, and build a solid safety barrier for high-quality development.
LANPEC’s Risks and Opportunities Analysis for “Occupational Health and Safety”
LANPEC’s Key Actions and Measures for Occupational Health and Safety
Timeframes of
Type Specific Description Financial Impact Response Strategies
Impact
National standards for work safety and Category Measures
occupational disease prevention and control
are becoming increasingly stringent. If we • Enhance all employees’ awareness of the safety “red line” and risk prevention capabilities through high-
Increase in • Establish a dynamic frequency, tiered, and scenario-based safety training.
fail to respond promptly to new regulatory
Policy compliance Short, medium, and operating costs policy tracking mechanism • Formulate the Safety Risk Graded Control System , establish a dual prevention mechanism for the
requirements and prevention and control
risks long term Decrease in and conduct regular Work safety graded control of safety risks and the investigation and rectification of hidden hazards, carry out annual
measures for key positions, we may face
operating revenue compliance assessments. identification and assessment of safety risks, formulate control measures, and eliminate weak links in
administrative penalties and suspension of
operations for rectification, affecting project safety.
• Strengthen
delivery and customer trust. • Organise Work Safety Month activities to enhance the safety awareness of all employees.
communication with
regulatory authorities and
During the advancement of intelligentization, plan in advance for safety • Formulate systems such as the Work Safety Education Management Regulations , establish and improve
human-machine collaboration scenarios are facility upgrades. the employee safety education and training system, and carry out targeted safety education to enhance
Increase in
increasing. If effective safety training and employees’ occupational health and safety awareness.
Technological operating costs • Carry out pre-job practical
operating procedures are lacking, this may lead Medium and long term • During the publicity week for the Law on the Prevention and Control of Occupational Diseases, carry out
transition risk Decrease in training and emergency
to mechanical injuries or accidents caused by Occupational
operating revenue a series of activities centred on the theme of “Adhering to Prevention First and Safeguarding Occupational
drills for all staff in relation health
operational errors, affecting employee health Health”.
to new equipment. management
and production continuity. • Provide operators with labour protection supplies such as safety helmets, workwear, protective shoes,
• Actively participate in the protective face shields, protective goggles, and dust masks, with an investment of RMB1,444,200 in 2025.
formulation of industry • Every year, organise occupational health examinations for employees in hazard-exposed positions,
Providing high-standard safety technical standards and enhance ensuring that the pass rate for occupational health examinations reaches 100%.
services can enhance customer loyalty and professional influence in
Product/Service Increase in
expand the scope for co-operation both Medium and long term occupational health.
opportunities operating revenue
upstream and downstream of the industrial • Formulate the Hazardous Chemicals Management System to strengthen the management of the storage,
chain. use, and disposal of hazardous chemicals.
Chemicals • Procure secondary anti-leakage pallets for new replacement in the paint warehouse and hazardous
management waste warehouse, post prominent safety warning signs and the Material Safety Data Sheet (MSDS), install
combustible gas alarms and ventilation facilities in the paint mixing room, and apply epoxy flooring
Based on the above analysis, the Company has integrated occupational health and safety into its strategic planning and formulated the 15th Five-Year Development treatment in the hazardous waste warehouse to ensure safe chemical management.
Plan of the Safety and Environmental Protection Department . Through systematically reviewing the current situation and functional positioning, we have clarified
development objectives, key tasks, and implementation pathways, in order to strengthen resource assurance and support systems, dynamically identify safety
risks, and deploy systematic response strategies. • Formulate the Emergency Plan for Production Safety Accidents (Version G) , covering comprehensive
emergency plans, special plans, and on-site response plans.
The Company has formulated a vision that by 2030, the safety accountability system will be more rigorous, the safety policy system will be sounder, the safety
Emergency • Establish an emergency command centre, emergency response teams, and rescue teams, forming an
management mechanism will be more systematic, employees’ safety competence will be significantly enhanced, functional performance capabilities will be management efficient and responsive emergency rescue system featuring unified command, tiered response, resource
markedly improved, the level of intrinsic safety will be clearly raised, and the development of safety culture will be strengthened. Through the introduction of
sharing, coordinated operations, integration of full-time and part-time forces, and a combination of
advanced information technologies and systems, management efficiency and decision-making accuracy will be improved.
prevention and response.
On this basis, the Company takes the Work Safety Month as an opportunity to carry out intensive, multi-dimensional safety enhancement actions, comprehensively
improving risk response and on-site control capabilities. Special Safety Knowledge Training for Production and Operations Personnel
LANPEC’s Key Actions and Measures for Work Safety Month in 2025 From February to April 2025, in accordance with the 2025 Annual Plan for Work Safety and the Work Safety Education Management Regulations ,
and in conjunction with the work tasks set out in the Company’s Three-Year Action Plan for Tackling the Root Causes of Work Safety (2024-2026),
the Company carried out the first phase of special safety knowledge training for production and operations personnel in 2025, with a view to
further enhancing the level of work safety management and strengthening the safety awareness and self-protection capabilities of production
Category Specific Content
and operations personnel.
• Organised study sessions to watch safety materials such as “Principal Corporate Responsibility”, This training covered the Shanghai Base and the Lanzhou Base. The content focused closely on frontline operational risks, including “Case and
“Strengthening Foundations and Consolidating Fundamentals—Three-year Action for Tackling the Root Safety Prevention Measures for Confined Space Operation Accidents”, “Safe Operating Procedures and Accident Prevention Measures for Special
Causes of Work Safety”, the themed film for “Work Safety Month”, and warning education films on work Equipment”, and “Case and Safety Prevention Measures for Working at Height Accidents”. This strengthened employees’ understanding and
Multi-channel safety accidents. implementation of safety procedures, reinforced the defence line for safe production, and effectively ensured the smooth and orderly operation
safety warning • Hung themed banners, posted safety slogans, set up publicity display boards, and produced safety of production.
education publicity videos.
• In conjunction with Lanzhou Petroleum Machinery Research Institute Co., Ltd., held a “Safety Publicity and
Consultation Day” event at Wanhui International Plaza to popularise safety knowledge among community
residents.
• Promoted the philosophy of “My Safety, My Responsibility; Others’ Safety, My Obligation,” organised the
“Spot Safety Hazards at Hand” campaign, encouraged employees to participate in the “I Identify Safety
Hidden hazard Hazards” online quiz and Xiaohongshu Safety Training Camp learning, produced two short videos on hazard
investigation and
identification focusing on unsafe human behaviours and unsafe physical conditions, and established
management
a long-term hazard management mechanism during Work Safety Month to promote the sustained
effectiveness of hazard management.
Safety Knowledge Training Site
• Under the theme of “Everyone Talks About Safety, Everyone Can Respond to Emergencies—Identifying
Safety Hazards Around Us”, more than 130 employees received training on safety knowledge, including
workplace safety guidelines and policies, laws and regulations, and completed on-site tests.
• Conducted specialised training on Criteria for Identifying Major Accident Hazards in Industrial and Trade In 2025
Enterprises to enhance the ability of management personnel and frontline employees to identify and
respond to major hazards.
Promotion and • Organised and carried out the 2025 special safety education and training activities for relevant
dissemination of
contractors’ personnel, systematically promoting the Company’s Work Safety Inspection System and
safety concepts
Management Provisions on the Investigation, Identification, and Governance of Hidden Hazards in Work
The Company recorded more than 8,400 cumulative attendances at safety education and training sessions, and implemented
Safety Accidents and other systems.
• Established a unified Health, Safety and Environment (HSE) data repository for the Company, providing categorised and targeted training for different groups such as new employees, frontline personnel, and outsourced personnel,
convenient retrieval and download functions through a digital platform, and clarified usage standards significantly improving employees’ safety awareness and operational standardisation.
through dedicated communication sessions, enabling all departments to efficiently access the latest HSE
information.
• Developed safety production micro-courses and submitted the case “LANPEC Pre-shift Briefing—Voice Out
the Sense of Crisis and Work Out the Sense of Safety”. Indicators and Targets
• Organised and carried out emergency drills for heatstroke in high temperatures, special drills for lifting
In 2025
injuries and scalding accidents, and fire evacuation drills. The Company attaches importance to the measurability and continuous
• Organised special training on fire emergency response capabilities for canteen operators and security improvement of occupational health and safety performance, and has gradually
Emergency capacity personnel on one inspection and one extinguishing. established clear quantitative targets. To ensure the effective implementation
building and supervision • Conducted multiple safety supervision and inspection visits to production workshops using the “Four of the targets, the Company has established a safety performance monitoring
and inspection No’s and Two Directs” approach (i.e. no prior notice, no greeting in advance, no listening to reports, no mechanism covering all business units, dynamically tracked progress through
accompanying reception, go directly to the grassroots level, and go directly to the site), with a focus on the regular collection and analysis of key indicator data, and strengthened The periodic inspection rate of special equipment and
employees’ operating behaviour and the implementation of safety protection measures. accountability. In 2025, the periodic inspection rate of special equipment and the the calibration rate of safety accessories both reached
• Carried out self-inspection and self-rectification activities covering the storage and use of hazardous calibration rate of safety accessories both reached 100%; the overall work safety
chemicals, the environment at operating sites, temporary electricity use, fire-fighting facilities, and the situation remained stable; there were no penalties imposed by local municipal
integrity of equipment and facilities, with all identified issues and hazards rectified. emergency management authorities, ecological environment authorities or
other relevant authorities, and no complaints from stakeholders.
Employee Training and Development Launch of New Employee Training, Embarking on a New Journey of Youthful Aspiration
In July 2025, the Company officially launched its 2025 new employee training programme. During the training period, the Company’s functional
Employee Training departments delivered systematic presentations on the organisational structure, departmental responsibilities, and relevant management
systems, while each branch, in light of its respective business segments, provided detailed introductions to its principal business and
The Company’s employee training revolves closely around the strategy of “talent-driven enterprise development” and the annual business objectives, adheres to development dynamics. To further guide new employees in establishing positive professional values and efficient working habits, the Company
systematic planning and precise implementation, and, based on strategic orientation and job capabilities, has formulated and issued the 2025 Annual Education also presented them with the classic book Seven Habits of Highly Effective People .
and Training Work Plan , clarifying the annual objectives and key tasks. This training not only helped new employees quickly understand the Company’s culture, institutional norms, and business layout, but also laid
In 2025, the Company focused on core talent streams and systematically carried out comprehensive, multi-level training covering key groups including a sound foundation for their integration into the team and for clarifying their career development direction. In the future, the Company will
management, technical, skilled, and new employees. By advancing training programmes in a layered and categorised manner, we effectively enhanced employees’ continue to carry out high-quality talent recruitment, improve the training system for young employees, build a development platform for
professional quality and overall capabilities, providing strong talent support for improving organisational capabilities and business development. young employees, and inject youthful strength into the successful achievement of the “second entrepreneurship”.
LANPEC’s Talent Pipeline Development Measures in 2025
• Strengthened managers’ understanding and implementation of standards, and introduced advanced management concepts
through policy communication and implementation, guidance from external experts, and other methods.
• Conducted special training on the development of gold-medal teams to enhance team leaders’ capabilities in training and
Management
coaching, self-development, and daily management, and to strengthen team collaboration and problem-solving capabilities.
talent
empowerment • Achieved full coverage of learning in the Party’s theories, policies and regulations, and Party building practices by leveraging the
combination of the “SASAC e-Learning” platform and offline training. Carried out special training on the workflow for Party member
New Employee Onboarding in 2025
development, strengthened process standardisation and material filing, and, through explanation + case + Q&A and subsequent
closed-loop inspections, promoted the standardisation of Party affairs.
In 2025
Foundation • Carried out systematic and in-depth training in areas such as pressure vessels, green hydrogen and green ammonia, AI, and
strengthening
intelligent manufacturing, with a focus on supporting core business and the forward-looking technology layout. Organised
through
technological guidance on professional title applications and the obtaining of industry qualifications (such as Chief Quality and Safety Officer and
talent Responsible Engineer), thereby strengthening professional foundations. Throughout the year, the Company organised and implemented a total of 278 training programmes of various types, with actual employee
education funds used amounting to RMB676,200. Over 12,000 participant attendances were recorded throughout the year, covering all
levels of the Company and relevant personnel, with a cumulative total of over 5,800 training hours.
• Focusing on production safety and the enhancement of practical operational skills, relied on the Chief Technician Studio and the
Skilled talent master-apprentice mechanism to carry out specialised skills and safety training for each work section. Conducted comprehensive
development training for obtaining and renewing job qualifications, ensuring that key positions were compliant through certification, and
consolidated professional competence and safety awareness through continuing education. Employee Appraisal and Promotion
The Company has established and improved classified management and incentive mechanisms, formulated and implemented institutional documents such as the
• Carried out new employee training in accordance with a three-stage pathway of “cognitive orientation-cultural refinement Performance Appraisal Management Measures , the Cadre Management Measures , the Non-leadership Position Management Measures and the Scientific Research
New employee
- position practice”. Ran the main thread of “theory, practice, and experience” throughout the whole process, balanced safety Project Management Measures , established career development pathways based on 6 sequences including management, professional (functional, technical),
development
education with cultural immersion, and supported the comprehensive integration and growth of new employees. business (sales, engineering), and skills, and implemented classified management and targeted incentives. At the same time, the Company has formulated
supporting special management measures for personnel in special positions such as cadres, scientific research, and non-leadership positions, further refining
training pathways, assessment standards, and development channels.
To foster a workplace atmosphere of “focus on strivers, high-performance orientation”, the Company conducted the 2025 annual performance appraisal for both
the organisation and employees through two dimensions, namely “annual work reporting/annual summary + performance assessment”, so as to fully mobilise the
enthusiasm and initiative of all cadres and employees, improve work efficiency and quality, and ensure the effective achievement of the Company’s annual targets
and tasks.
LANPEC’s Performance Appraisal Measures in 2025 LANPEC’s Key Measures for Social Welfare and Volunteer Services in 2025
Organisation
Category Key Measures
• The Company organised and implemented the annual work debriefing and performance appraisal of each branch and functional department in a
unified manner. • Company leaders led a team to the Anning District Fire Rescue Brigade in Lanzhou and the Shajingyi Police
Police–civilian joint Station to carry out a police-civilian joint outreach and care visit activity, extending summer greetings and
• Each branch organised and implemented the annual work debriefing and performance appraisal of other departments (excluding functional outreach and care visits highest respect to the frontline “firefighting warriors” and “guardians of the people”, and thanking them for
departments). Among them:
their hard work in safeguarding local safety.
R&D departments: Assessments were conducted on business support and the progress of scientific research projects;
• Organised volunteers to carry out meticulous trimming of the roadside green belts, removing dead branches,
B usiness departments: Assessments were conducted on the achievement of departmental profit, collections, and the value of newly signed weeds, and rubbish.
contracts;
Community environmental • Cleared all kinds of advertisement stickers from utility poles, restoring the tidiness of the urban streetscape
P roduction departments: Assessments were mainly conducted on the achievement of work safety in production, quality, delivery schedule, beautification initiative and effectively improving the appearance of the community’s public environment.
production completion volume, and profit.
• Conducted parallel civility publicity activities to guide residents to proactively care for public spaces and
maintain the community environment.
Employees
Public order co- • Implemented temporary traffic management on certain road sections to ensure orderly passage for
• The evaluation content included work performance and competency quality evaluation. The main content of competency quality evaluation included management initiative vehicles and pedestrians.
responsibility and commitment, initiative and proactiveness, pioneering and innovation, continuous learning, and other aspects.
• The content of the work performance evaluation was jointly determined by employees and their respective departments based on job • In July 2025, faced with persistent heavy rainfall,
responsibilities, submitted to the supervising leader for approval, and then reported to the human resources department for record-filing and the Company’s resident village cadres worked
implementation. with local officials as “flood prevention pioneers”.
Emergency Rescue and Through rain patrols and overnight duty, they
The Company consistently regards performance appraisal results as the core basis for talent management and development. The results of performance Disaster Relief during organised timely emergency response, effectively
appraisals are mainly used in key areas such as remuneration adjustments, performance bonus distribution, advanced selection and appraisal, training and the Flood Season preventing property losses. The Company’s rapid
development, and position adjustments, thereby giving full play to the role of performance management in incentives, constraints, and talent development. response and pragmatic commitment won public
recognition and a ceremonial banner. Emergency Rescue and Disaster Relief during the Flood Season
After the annual performance appraisal work is completed, the Company promptly communicates the appraisal results to the appraisees and conducts interviews
with them regarding the appraisal results. The interview records are signed by both parties and then submitted to the human resources department for filing,
ensuring a transparent process and traceable results. The Company has established a standardised performance appeal mechanism. If the two parties to the
appraisal cannot reach an agreement on the appraisal results, the appraisee has the right to submit a written appeal to the performance appraisal working group
within two working days after the performance feedback interview. If the appraisee still objects to the outcome of the initial appeal, a second appeal may be
submitted to the performance appraisal leading group.
Rural Revitalization
In terms of promotion management, the Company uses performance appraisal as an important basis for employee promotion and requires employees proposed
for promotion to meet the performance standards stipulated for the corresponding positions. The selection and appointment of cadres are mainly carried out The Company actively engages in the national rural revitalization initiative, leverages resource endowments, and innovatively implements practical measures
through internal recommendation, external exchange, open selection and other methods. At the same time, we also flexibly adopt such methods as competitive such as consumption-based assistance, effectively aligning with rural development needs and supporting the upgrading of the agricultural industry and the
appointment, open recruitment, and commissioned recommendation, so as to broaden the horizons for selecting and employing talent, stimulate organisational enhancement of rural economic vitality. The Company strictly complies with the Law of the People’s Republic of China on the Promotion of Revitalization of Rural
vitality, and promote the formation of a sound employment mechanism in which personnel can be promoted or demoted, and can enter or exit. Areas , and implements the relevant policy requirements of the General Office of the CPC Central Committee’s Opinions on Continuously Assigning First Secretaries
and Work Teams to Key Villages , Measures of Gansu Province for the Administration of Village-based Work Teams , Work Plan of Gansu Province for Advancing
the Comprehensive Governance of Exorbitant Bride Prices in Rural Areas , and other relevant policies, to ensure that assistance work is carried out in a lawful,
Contributions to the Society
compliant, precise, and orderly manner.
The Company’s Party Committee has consistently advanced designated assistance as an important political task in a coordinated manner. At the beginning of
the year, the Company deployed assistance tasks, adjusted and strengthened the leading group for designated assistance work, with the Company’s principal
The Company has consistently upheld the philosophy of actively giving back to In 2025 leader serving as head, the leaders in charge serving as deputy heads, and the heads of relevant functional departments participating jointly, further clarifying the
society and offering love and care in social welfare and volunteer services, and has division of responsibilities and establishing an efficient working pattern of Party Committee overall coordination, departmental collaboration, and implementation
been committed to engaging in public welfare and charitable undertakings, fulfilling by village-based personnel. The leading group regularly heard reports from the village-based task force, promptly studied and resolved difficult issues in advancing
corporate social responsibility through practical actions. The Company advocates the the assistance work, and ensured that all measures were advanced in an orderly manner.
volunteer service spirit of serving society and spreading love and care, encourages The Company’s principal leaders and management team members took the lead in setting an example, carrying out in-depth field research in Wangchangsi Village
employees to participate extensively in various public welfare activities, and is The Company donated RMB150,000 and
twice during the year. Through household visits, discussion sessions, and on-site inspections, we gained a comprehensive understanding of the village conditions
committed to supporting community development while fostering an organisational was awarded the “Charity Heart” honorary and public sentiment, industry development, rural construction, and people’s livelihood protection, laying a solid foundation for the precise formulation and
culture that strives for progress and goodness, thereby promoting the collaborative certificate by Lvxiang Town. adjustment of assistance plans. On this basis, the Company coordinated and advanced multidimensional measures in areas such as livelihood care, educational
creation of economic and social value. assistance, the cultivation of civility, and industrial support, systematically contributing to the comprehensive revitalization of rural areas.
LANPEC’s Key Measures for Rural Revitalization in 2025
Category Measures
• Took the paired care initiative as an important means of connecting with and serving the public
and consolidating poverty alleviation achievements, and carried out a total of 11 paired care activities
Paired care and throughout the year.
compassion to address • Through regular telephone communication, home visits and other means, the assistance responsible
urgent difficulties and persons gained an in-depth understanding of the care recipients’ physical condition, daily needs and
pressing concerns practical difficulties. They actively coordinated resources, helped resolve 1 practical difficulty, handled 2
practical matters on their behalf, effectively conveyed the warmth of the organisation, and enhanced the
public’s sense of gain and happiness.
Providing dedicated care • The Company’s village-based cadre, together with members of the village-based work team, organised Spring Festival Couplet Distribution Dragon Boat Festival Care Visit
for left-behind children to a summer volunteer childcare program, providing homework tutoring, interest development and safety
break the intergenerational education, effectively alleviating the worries of families of migrant workers and helping to break the
transmission of poverty intergenerational transmission of poverty.
• The Company placed great importance on promoting cultural and ethical development in Wangchangsi
Village, and, during the Spring Festival and Lantern Festival, supported village-based task force members
in contacting veteran Party members and carrying out the “Spring Festival Couplets Distribution” activity,
distributing a total of 1,400 couplets.
Enriching rural cultural • The Company organised a series of cultural activities themed “Joyful Lantern Festival, Celebrating the
life and advancing the
Festive Season”, creating a festive and harmonious atmosphere and enriching the cultural life of villagers.
development of spiritual
civilisation • Supported village-based task force in systematically reviewing innovative governance models such as
the “Integrity Bank”, “Caring Hair Salon”, and “Lao Wang Teahouse”, and produced short videos themed on
promoting new social norms, which were disseminated through multiple channels, effectively enhancing
the influence of civilised practice platforms, guiding villagers to abandon outdated customs and cultivate
civilised rural practices, positive family values, and simple, honest folk customs.
Summer Volunteer Childcare Program Event on “Resisting Exorbitant Bride Prices and Advocating Civilised
Marriage Customs”
• Invested RMB80,000 in assistance funds, specifically to jointly organise, with the Provincial Committee of
the Communist Youth League and the Provincial Association for Science and Technology, a themed publicity
campaign on Resisting Exorbitant Bride Prices and Advocating Civilised Marriage Customs, which adopted
Using assistance funds artistic forms popular with the public, such as selected excerpts from Qinqiang Opera, situational dramas,
precisely and deepening
and musical clapper talk, vividly conveying the civilised view of marriage and relationships that love is
the development of
rural cultural and ethical above material considerations, effectively enhancing public recognition of changing outdated customs and
standards injecting new momentum into advancing rural governance and the building of spiritual civilisation.
• The 5 cleaning vehicles purchased in 2025 at a cost of RMB12,000 have effectively enhanced the
mechanisation level and efficiency of village-level sanitation operations, contributing to the continuous
improvement of the village’s appearance and environment.
• Actively implemented consumption-based assistance policies and, in accordance with the annual
Deepening consumption-
based assistance consumption-based assistance plan, procured a total of RMB139,500 worth of agricultural and sideline
measures and expanding products from assisted areas throughout the year through standardised procurement procedures, directly
sales channels for increasing the sales revenue of local enterprises, indirectly driving income growth for households lifted out Integrity Bank Point Redemption Site Donation of Cleaning Vehicles
agricultural products of poverty and ordinary farming households, and effectively promoting the development of local industries.
Corporate Governance
Governance System Improvement
The Company will continue to improve its corporate governance structure, strictly in accordance with relevant laws, regulations, and regulatory requirements
such as the Company Law of the People’s Republic of China and the Securities Law of the People’s Republic of China , continue to advance the modernisation
of the governance system and governance capacity, and, centred on the principles of “standardisation, transparency, coordination, checks and balances, and
efficiency”, continuously refine its corporate governance structure and enhance its standardised operational standards. In 2025, the Company formulated and
revised systems including the Articles of Association , the Rules of Procedure for the Shareholders’ Meeting , the Rules of Procedure for the Board of Directors ,
and the Working Rules for the Audit Committee of the Board of Directors , and newly formulated systems including the LANPEC Investment Management
Measures and the LANPEC Market Value Management System .
LANPEC’s Corporate Governance Structure
Shareholders’ Meeting
Strategy and Sustainable Development Committee
Protection of Investors’ Rights and Interests
Nomination Committee
Board of Directors To further enhance the quality of information disclosure and optimise investor relations management, in 2025, the Company systematically formulated and refined
Remuneration and Appraisal Committee the relevant institutional standards and working mechanisms, with the aim of enhancing the Company’s transparency, strengthening effective communication with
the capital market, and promoting the continuous improvement of the Company’s corporate governance standards. The Company published the 2025 Action Plan
for Improving Quality and Efficiency and Enhancing Returns with the aim of actively putting into practice the development philosophy of being investor-oriented,
Audit Committee
promoting improvements in the quality of the Company’s development and its investment value, and effectively protecting the legitimate rights and interests of
Executive Management
investors, especially small and medium-sized investors.
To further clarify the boundaries of rights and responsibilities and effectively give full play to the Board of Directors’ core role in strategic decision-making,
supervision, and checks and balances, the Company will strengthen the support and safeguards for independent directors in performing their duties, ensuring that Information Disclosure
they can fully leverage their independence and professionalism, and make decision-making more scientific and independent. In terms of information disclosure, the Company strictly complies with the requirements of laws, regulations, and normative documents such as the Securities Law
As of the end of 2025, the Company’s Board of Directors consisted of 9 directors, including 3 independent directors and 1 female director. Independent directors of the People’s Republic of China , the China Securities Regulatory Commission’s Measures for the Administration of Information Disclosure of Listed Companies , and
have diverse professional backgrounds, including at least 1 independent director who is an accounting professional, 1 independent director who is a legal the Rules Governing the Listing of Stocks on Shanghai Stock Exchange . The Company has formulated the LANPEC Management System for Deferred Disclosure and
professional, and one independent director with industry experience, effectively supporting the Board of Directors’ high-quality decision-making on key topics such Exemption of Information Disclosure and LANPEC Market Value Management System with the aim of regulating the Company’s deferred disclosure and exemption
as financial supervision and risk management, and providing solid governance assurance for the Company’s sustainable development and the creation of long- of information disclosure, strengthening the Company’s market value management, fulfilling information disclosure obligations in accordance with laws and
term value for shareholders. regulations, and safeguarding the legitimate rights and interests of the Company, investors, and other stakeholders.
The Company attaches great importance to the quality of information disclosure and continuously improves internal working mechanisms to ensure that
LANPEC’s Board Performance Effectiveness in 2025 disclosed content is true, accurate, complete, timely, and fair. In 2025, the Company further optimised the end-to-end control of information disclosure, and strictly
implemented the verification mechanism of “four checks and seven verifications”, carrying out multiple rounds of cross-verification by multiple parties across
The Company ensured that independent directors could perform their duties independently and effectively, giving full play to dimensions including disclosure timing, textual expression, punctuation, logical consistency, and data accuracy. At the same time, the Company relied on the
the decision-making support and supervisory role of special committees in their respective professional fields. Shanghai Stock Exchange’s intelligent verification system for information disclosure documents to build a dual assurance system of “system verification + manual
review”. Before the announcement was formally disclosed, it had to be reviewed and confirmed at each level by the Chairman, the Board Secretary, the Securities
In 2025, the Company’s independent directors actively performed their duties, with an average meeting attendance rate Affairs Representative, and the heads of the relevant business departments, so as to ensure that the content of the information disclosure was consistent with the
Board independence
of 100%, and expressed professional opinions on matters such as related transactions and external guarantees. The Audit
and professionalism actual situation and to eliminate any false records, misleading statements, or material omissions.
Committee held 5 meetings, focusing on supervising the financial reporting process and the effectiveness of the internal
control system. In 2025, none of the Company’s announcements contained errors in key text or important data, nor were there any circumstances requiring supplementary
announcements, corrections, or revisions, effectively ensuring the standardisation, seriousness, and credibility of information disclosure, and safeguarding the
legitimate rights and interests of investors and the information environment of the capital market.
The Company continuously enhanced the Board’s strategic leadership capabilities and risk management and control
awareness, while upholding the bottom line of professional ethics. Investor communication
Board capability In 2025, the Company organised 4 special training sessions for directors, covering topics such as “Independent Directors’ In 2025, the Company continued to deepen investor relations management, actively building a transparent and mutually trusting image in the capital market
building and ethical Continuing Training”, “Standardised Operation of Information Disclosure by Key Minority”, “ESG Special Training”, and through diversified, high-quality and efficient communication mechanisms. The Company regularly held results briefings and special topic meetings, carried out
standards “Compliance Performance Training”, with average training time reaching 9 hours per person. In 2025, no directors of the investor engagement activities, and achieved efficient interaction through the routine channels of online platforms, effectively safeguarding investors’ right to
Company were in breach of professional ethics or subject to regulatory penalties. know and right to participate, and further strengthening the foundation of trust in the capital market.
Risk Management and Compliant Operations
LANPEC’s Measures for Investor Communication and Relationship Management in 2025
Briefings Held 4 regular results briefings throughout the year, and conducted four thematic collective investor communication activities,
and meeting The Company is committed to deeply integrating compliance requirements into all aspects of business operations and management, empowering high-quality
systematically explaining the Company’s strategic layout, operating results, and industry development trends.
mechanisms business development through compliance. In line with actual development needs, the Company continuously optimises and improves its compliance management
system to ensure that the conduct of the Company and its employees strictly complies with national laws and regulations, industry standards, and internal rules
and regulations.
The Company strictly complies with the requirements of documents such as the Oversight Law of the People’s Republic of China , the Audit Law of the People’s
Held the special “I Am a Shareholder”—Visiting Companies Listed in the Shanghai Stock Exchange, together with China Galaxy
Republic of China , the Provisions of the National Audit Office on the Internal Audit , and effectively fulfils the responsibility for law-based governance.
Securities Co., Ltd., inviting investors to visit our production base and research and development centre on site, enabling them
Investor to directly experience our operational strength and development potential.
engagement
activities The Company’s management conducted in-depth communication with investment institutions and industry researchers on
Governance
topics including industry research hotspots, the Company’s core competitiveness, and sustainable development practices, The Company continuously improves and refines its internal control system, enhances corporate decision-making efficiency, and provides safeguards for
during the joint survey of investment institutions organised by “Listed Companies Tour”. the legality and compliance of business operations and management, as well as the security of assets. The Company has formulated a series of institutional
documents, including the Compliance Management Measures , the Management Measures for Legal Dispute Cases , the Management Measures for Major Legal
Dispute Cases , and the Contract Management Measures , to comprehensively enhance the level of law-based and compliant operation and consolidate the legal
foundation for the enterprise’s steady and long-term development. The Company’s internal control system has a sound structure, and the framework of its internal
Established regular communication methods such as email, telephone, and online research meetings, building a multi- control systems complies with the requirements of the Ministry of Finance, the China Securities Regulatory Commission and other authorities regarding the
Online and dimensional, highly responsive communication system. integrity, reasonableness and effectiveness of internal control systems, and is able to meet the needs of the Company’s management and development.
routine
communication Through the “SSE e-Interaction” platform, engaged and communicated with investors, and provided timely and detailed The Company has established a clear and effective “three lines of defence” for compliance management, namely the Company’s business departments, compliance
channels responses to all types of questions raised by investors, with the response rate for the year reaching 100%, fully safeguarding department, and senior management team. Meanwhile, the Legal Affairs Department, as the lead department for compliance management, regularly assesses
investors’ right to know and right to participate. and updates compliance management documents to ensure that they remain aligned with the latest laws and regulations, regulatory requirements, and industry
practices. Managers at all levels and employees actively participate and work collaboratively to implement these measures, jointly promoting the integration of
compliance requirements into daily operations and ensuring the effective operation of the compliance management system.
At the same time, based on our operational realities and business development needs, we have established an ESG risk governance structure led by the Board of
Directors, with the Strategy and Sustainable Development Committee at its core, to coordinate the identification, assessment and management of environmental,
“I Am a Shareholder” event—Visiting Companies Listed in the Shanghai Stock Exchange
social and governance-related risks.
On 25 September 2025, the Company, together with China Galaxy Securities Co., Ltd., jointly held the 2025 “I Am a Shareholder” event—Visiting Strategy
Companies Listed in the Shanghai Stock Exchange in Lanzhou. The Company and the investor representatives attending the event engaged in
in-depth exchanges on issues including the Company’s operating results in the first half of the year, ESG development, and the cultivation of Robust risk management and compliant operations are the foundation of an enterprise’s steady operation and social trust. If an enterprise neglects compliance
strategic emerging industries, and highly recognised the achievements of various reform and innovation initiatives since last year. requirements or has weak risk prevention and control mechanisms during operations, this may lead to legal disputes, regulatory penalties and negative impacts on
the industry ecosystem; conversely, integrating compliance principles into governance structures and daily operations can enhance transparency and credibility,
This event was the Company’s largest investor engagement activity in recent years and attracted the highest number of participants, fully
strengthen investor and customer confidence, and contribute positively to building a fair, honest and sustainable business environment.
reflecting the strong expectations of small and medium-sized investors for the Company’s transformation and development.
LANPEC’s Risks and Opportunities Analysis for “Risk Management and Compliant Operations”
Response
Type Specific Description Timeframes of Impact Financial Impacts
Strategies
As China’s regulatory requirements for various business • Establish a regular
activities continue to become more detailed and Increase in mechanism for
stringent, failure to identify and implement the relevant Short, medium, and long operating costs regulatory tracking
Policy compliance risks and compliance
regulatory requirements in a timely manner may result in term Decrease in
administrative penalties or project restrictions, affecting assessment.
operating revenue
normal operations. • Embed
compliance
If the Company triggers compliance incidents or negative requirements
Liability and reputation public opinion during operations due to deficiencies in Decrease in into key business
Medium and long term processes and
risk internal control or management, this may damage the operating revenue
brand reputation built up over the long term. decision-making
Investors Visit the Company processes.
In the current market environment that emphasises high- • Conduct regular
quality development and compliant operations, companies compliance
Increase in
Market opportunity with sound compliance systems are more likely to gain Medium and long term training and
operating revenue
recognition from partners and regulatory authorities, warning education
thereby securing more cooperation opportunities. for all employees.
Impacts, Risks and Opportunities Management Anti-commercial Bribery and Anti-corruption
In light of industry characteristics and the actual conditions of the Company’s operations, the Company has systematically established a standardised, scientific,
and well-regulated internal control and risk management system. This system starts with clearly defined risk management objectives, delineates the scope and The Company strictly complies with the requirements of laws, regulations, and other regulatory requirements such as the Regulation of the Communist Party of
content of risk management, and establishes the Company’s risk management strategy and culture. Through systematic identification of major and material risks China on Disciplinary Actions , the Norms of Integrity and Self-discipline of the Communist Party of China , the Oversight Law of the People’s Republic of China , the
at the Company level, targeted risk response strategies are formulated to enable forward-looking assessment and effective control of various uncertainties. Law of the People’s Republic of China on Administrative Discipline for Public Officials , the Several Provisions for Probity Practice of Leaders of the State-owned
Enterprises , and the Regulation on Disciplinary Actions Against the Managerial Professionals of State-owned Enterprises , thereby strengthening the foundation for
In 2025, the Company focused on enhancing the compliance literacy and risk prevention and control capabilities of all employees. Through a combination of
anti-commercial bribery and anti-corruption management. In 2025, the Company had no incidents of corruption or embezzlement.
online and offline approaches, we systematically carried out multi-level and multi-dimensional thematic training and conducted risk internal control inspections,
effectively promoting the integration of the compliance culture into daily operations and genuinely strengthening the ability to respond to a complex regulatory
environment and emerging risks. Governance
LANPEC’s Key Measures for Risk Management and Compliant Operations in 2025 The Company has formulated a series of supporting institutional regulations and standards, including the Implementation Measures for the Responsibility System for Party
Conduct of LANPEC , the Management Measures for the Governance of Commercial Bribery of LANPEC , the Fifteen Prohibited Items of LANPEC for Implementing the Eight
Rules , the Management Provisions of LANPEC on the Surrender of Gifts and Gift Money , the Management Measures of LANPEC for the Reimbursement of Travel Expenses
Provided training programmes including “Compliance Performance Training for Directors, Supervisors and Senior and Business Entertainment Expenses , the Implementation Measures for the System of Integrity Talks and Reminder Talks by the Party Committee of LANPEC , providing solid
Managers”, “Internal Control, Risk Control and Compliance”, and “Online Training on Safety Risk Prevention for Chinese institutional support for preventing benefit transfer and fostering a clean business environment.
Employees of Central Enterprises Overseas (2025)”.
Compliance The Company’s Party Committee conscientiously fulfils its overall leadership responsibility for improving Party conduct and combat corruption. The Party Committee
culture Attended the 2025 Legal Work Conference of Sinomach Group in April 2025 and learned excellent compliance management Secretary and Chairman serve as the first responsible persons, while other members fulfil the “Dual Responsibilities for One Post”. The Company’s Discipline Inspection
development practices from outstanding enterprises within the group. Participated in the 14th “Sinomach Legal & Risk Control Lecture” Commission fulfils its supervisory responsibility and coordinates the advancement of the integrity governance system. At the beginning of the year, a meeting on full and
in December 2025 to deepen compliance awareness under the theme of “Strengthening Anti-monopoly Compliance and rigorous Party self-governance and Party conduct improvement was convened to set out the 2025 objectives and key tasks for Party conduct improvement, ensuring that
Serving High-quality Development”. The training sessions covered all employees of the Legal Affairs Department. anti-commercial bribery and anti-corruption requirements were deeply integrated into the Company’s strategic decision-making and daily operation and management.
Strategy
Integrity in operation is the moral cornerstone of sustainable corporate development, and an important safeguard for maintaining a fair market order and social
Risk internal Conducted routine supervision and inspections of operational risks and special inspections of risk management on trust. If engaged in commercial bribery or corruption in its business activities, the Company may not only face legal sanctions and significant economic losses
control
multiple occasions. but also damage the industrial ecosystem and harm public interests. Conversely, by consistently adhering to the business philosophy of integrity, compliance and
inspection
transparency, the Company can foster a healthy cooperative environment and promote the building of a clean ecosystem throughout the industrial chain.
LANPEC’s Risks and Opportunities Analysis for “Anti-commercial Bribery and Anti-corruption”
Timeframes of
Type Specific Description Financial Impacts Response Strategies
Impact
If the Company engages in commercial bribery
• Improve the anti-bribery
and corruption, such as improper transfer of
Liability and reputation Decrease in and anti-corruption
benefits, it may trigger regulatory investigations, Medium and long term
Indicators and Targets LANPEC’s Risk Management and Compliant Operations Targets
and Progress
risk
media exposure, or termination of cooperation by
operating revenue institutional system,
and implement regular
customers.
To systematically enhance the Company’s capabilities in risk prevention integrity reviews.
China has continued to strengthen anti-
and control and compliance management, the Company has set clear, • Establish confidential
corruption supervision over state-owned
quantifiable annual management targets. Through regular assessments, Increase in operating whistleblowing channels,
enterprises and key industries. Failure to
dynamic monitoring, and a closed-loop rectification mechanism, the 2025 Quantitative Targets: Compliance training coverage rate: 100% costs and encourage internal
effectively implement the relevant requirements Short, medium, and
Company continuously tracks the achievement of targets, ensuring that Policy risk supervision and external
Progress in 2025: Compliance training coverage rate: 100% may result in the Company being designated as a long term Decrease in
risk management and compliance requirements are deeply integrated into feedback.
key target of regulatory oversight, affecting the operating revenue
strategic execution and daily operations, and effectively safeguarding asset
continuation of qualifications or the approval of • Conduct regular
security, compliant operations, and sustainable development.
major projects. integrity practice training
Achieved
and awareness education
More and more enterprises regard suppliers’
for all employees.
integrity performance as an important criterion
for access and bid evaluation, and companies Increase in operating • Sign integrity
Market opportunity Medium and long term
with sound anti-commercial bribery and anti- revenue agreements with
corruption mechanisms are more likely to obtain customers, suppliers, and
long-term strategic cooperation opportunities. other partners.
Impacts, Risks and Opportunities Management The Company supports all stakeholders in putting forward suggestions or feedback LANPEC’s Public Reporting Channels
on ethical issues in the Company’s operations, and has clearly established and
In 2025, the Company systematically advanced anti-commercial bribery and anti-corruption efforts. By strengthening responsibility for Party conduct and integrity Telephone: 021-51953538
publicly disclosed reporting channels in relevant policy documents such as
governance, deepening education on integrity practice, carrying out the “Honest Youth Talent Programme”, and reinforcing joint integrity-building with suppliers, we
Tendering and Procurement Management Measures , while handling whistleblowing Email: lanpec-jb@lanpec.com. This email address is specifically used to
established an integrity risk prevention and control system covering all employees and promoting coordination, fostering a clean and upright business environment.
information under strict confidentiality. To effectively safeguard the legitimate receive all types of corruption-related whistleblowing information, and
rights and interests of whistleblowers, the Company has clearly established designated personnel from the Company’s Compliance Management
LANPEC’s Key Actions and Measures for Anti-commercial Bribery and Anti-corruption
multiple policy provisions and is committed to ensuring fair treatment in terms of Department regularly monitor it to ensure that whistleblowing information
Strengthening The Company strengthened the institutional foundation for clean and honest conduct through organising the signing of the reporting channels and handling procedures, as well as whistleblower protection. is handled promptly.
accountability for Responsibility Letter for the Improvement of Party Conduct , updating and improving integrity records for cadres and signing the It is explicitly stipulated that personnel responsible for handling reports must not Mailing addres: Discipline Inspection Commission Office, Lanpec
Party conduct and
Letter of Commitment to Integrity , and distributing to all employees the Positive and Negative List on Implementing the Eight Rules disclose whistleblower information in any form, must not investigate whistleblowers Technologies Limited, 505 Rongchang Road, Lvxiang Town, Jinshan District,
integrity governance
distributed by Sinomach Group , among other measures. without authorisation, and must anonymise personal identity information of Shanghai
whistleblowers where necessary during the handling and outcome processes,
In March 2025, the Company’s Discipline Inspection Commission held the 2025 integrity interview for newly appointed cadres. thereby effectively protecting their legitimate rights and interests.
Strengthen
integrity In July 2025, under the theme of “Fasten the First Button of Life”, the Company’s Discipline Inspection Commission provided integrity
education and compliance education for newly recruited employees in 2025. Indicators and Targets
Throughout the year, the Company’s Discipline Inspection Commission Office edited and distributed 12 issues of the LANPEC
To continuously enhance integrity governance, the Company has set management targets focused on anti-commercial bribery and anti-corruption, and conducted
Discipline Inspection Bulletin for all cadres and employees to study.
dynamic tracking and closed-loop management of the implementation of these targets through regular monitoring and special inspections, with the aim of
In 2025, the LANPEC Culture System was officially released, with the integrity philosophy specifically incorporated into its business
preventing corruption risks at the source.
philosophy to build a clean and upright atmosphere with simplicity and progress.
The Company assisted the Party Committee in carrying out education on thoroughly implementing the Eight Rules, so as to ensure LANPEC’s Anti-commercial Bribery and Anti-corruption Targets and Progress
that strict rules and prohibitions were fully internalised.
Conduct Integrity The Company organised a short video competition and received a total of 11 integrity-themed short videos. Targets: Anti-corruption training coverage rate for directors: 100% Targets: Anti-corruption training coverage rate for employees: 100%
Promotion and The Company actively participated in the themed essay campaign “Forging the Sword of Work Style, Raising the Sail of Integrity,
Education Month Building the Foundation of Clean Governance” organised by the Party Committee of Sinomach Group, receiving a total of 11
activities submissions. Achieved Achieved
In June 2025, the Company organised 49 young cadres to visit Lanzhou Prison and Shanghai Jinshan District Detention Centre
Targets: Anti-corruption training coverage rate for departments: 100% Targets: Signing rate of the Integrity Cooperation Agreement : 100%
respectively to carry out the “Experience the Scene and Be Alerted, Abide by the Bottom Line of Integrity” warning education activity.
Implement
Formulated a “Ten Ones” Action Plan Achieved Achieved
the “Honest
Youth Talent In light of actual circumstances, the Company formulated the LANPEC “Ten Ones” Action Plan , covering the one Honest Youth Talent
Programme” file, one Honest Youth Talent mentor, one heart-to-heart talk, one warning education activity, one discipline training session, one
integrity sharing session, one integrity-themed video, one group of Party conduct and integrity supervisors, one themed activity, and
one “Honest Youth Talent Medal”, among other items. Anti-unfair Competition
Selected and appointed Party conduct and integrity supervisors
The Company strictly complies with laws and regulations such as the Anti-Unfair Competition Law of the People’s Republic of China , and has formulated LANPEC
To strengthen the role of public supervision, the Company strictly selected eight young cadres from functional, business, scientific
Commercial Secrets Management Provisions (Trial) and LANPEC High-Tech Commercial Secrets Catalogue (Second Batch of 13 Items) to protect the Company’s
research, and frontline production positions and appointed them as the Company’s Party conduct and integrity supervisors, giving
commercial secrets and enhance market competitiveness. In 2025, the Company was not subject to penalties by the relevant authorities during operations due to
full play to their role as “probes” and “sentinels” and building an important bridge for the Party Committee and the Discipline
unfair competition or violations of anti-trust and anti-monopoly laws.
Inspection Commission to maintain close ties with employees.
Published the list of Honest Youth Talent mentors To effectively prevent and respond to unfair competition and to protect the Company’s trade secrets and technological achievements, the Company has formulated
The Company’s Discipline Inspection Commission established 61 “Honest Youth Talent files”, selected and appointed 23 “Honest Youth and implemented a series of stringent confidentiality and management measures.
Talent mentors”, and issued the List of LANPEC’s Honest Youth Talent Mentors for 2025 and Job Responsibilities , clarifying mentors’
Employees of the Company, especially those engaged in scientific research and operations, bear the obligation to maintain the confidentiality
responsibilities, including conducting regular heart-to-heart talks and carrying out integrity education.
of the Company’s trade secrets. In economic and technical activities such as business dealings, research and development, technology
Protection of
trade secrets transfer, joint ventures and cooperation, and changes in organisational form, strict protection of the Company’s trade secrets is required. In
and operational the event of infringement, it shall be promptly addressed through administrative or judicial channels.
Conduct In 2025, the Company’s Discipline Inspection Commission organised and carried out self-inspection and self-rectification of
special information
issues involving violations of the Eight Rules on improving Party and government conduct, as well as a special inspection and Materials such as the Company’s operational, scientific research and production development plans, and annual work plans shall be kept under
reports
comprehensive screening of violations of the Eight Rules. dedicated custody, and borrowing procedures shall be handled in accordance with records management regulations.
The Company’s patents, technical achievements, proprietary technologies, and scientific and technical documents and materials are
Control of core
Co-construct The Company established a joint integrity-building mechanism with suppliers and contractors, requiring all subordinate departments kept by the archives office and may be accessed on loan in accordance with the archives management regulations.
technologies and
supplier integrity and units to sign the Integrity Cooperation Agreement simultaneously when entering into procurement contracts. research and Relevant documents and materials concerning key process routes, technical measures, economic analysis indicators, and other
development
matters in the feasibility study reports of the Company’s relevant projects are managed in accordance with the requirements for
achievements
scientific and technical archives, and may be accessed on loan only upon approval.
ESG Data Tables and Notes Climate Change Tacking Data Sheet
Disclosures Unit 2023 2024 2025
Scope 1 greenhouse gas emissions tCO2e 4,186.18 2,728.28 3,625.39
Environmental Data Scope 2 greenhouse gas emissions (location-based)2 tCO2e 5,198.22 3,457.05 4,689.86
Scope 2 greenhouse gas emissions (market-based)2 tCO2e —— 3,013.19 4,182.31
Environmental Compliance Management Data Sheet
Total greenhouse gas emissions (Scope 1 + Scope 2) (location-based) tCO2e 9,384.40 6,185.33 8,315.25
Greenhouse gas emissions intensity (Scope 1 + Scope 2) (per unit output value)
Disclosures Unit 2023 2024 2025 (location-based)
tCO2e/RMB10,000 0.09 0.09 0.07
Annual environmental protection investment expenditure1 RMB10,000 295.11 475.27 283.42 Total greenhouse gas emissions (Scope 1 + Scope 2) (market-based) tCO2e —— 5,741.47 7,807.70
Number of incidents of penalties for violating environmental protection Greenhouse gas emissions intensity (Scope 1 + Scope 2) (per unit output value) (market-
cases 0 0 0 tCO2e/RMB10,000 —— 0.08 0.07
laws and regulations based)
Amount of major administrative penalties imposed by ecological
Note 1: Scope 1 greenhouse gas emissions are generated from the company’s consumption of diesel, gasoline for official vehicles and natural gas. The greenhouse gas emission factors
and environmental and other relevant authorities for environmental RMB10,000 0.00 0.00 0.00
incidents during the reporting period corresponding to diesel, gasoline and natural gas are referenced from the China Energy Statistical Yearbook (2023) and the Guidelines for the Preparation of Provincial Greenhouse Gas
Inventories (Trial) (2011).
Note 1: Investment in environmental protection facilities increased in 2024, leading to high environmental protection investment expenditure. Note 2: Scope 2 greenhouse gas emissions include those corresponding to purchased electricity. The CO2 emission factor for electricity in 2023 is 0.5703 tCO2e/MWh, in accordance with
the Notice of the Ministry of Ecology and Environment on Relevant Work for the Administration of Greenhouse Gas Emission Reporting of Power Generation Enterprises from 2023 to 2025.
Energy Usage Data Sheet In 2024, the Company consumed green electricity. The location-based and market-based greenhouse gas emission factors for purchased electricity adopted 0.5366 tCO2e/MWh (national
average grid emission factor of China) and 0.5856 tCO2e/MWh (excluding market-traded non-fossil energy electricity) respectively, as specified in the Announcement of the Ministry of
Disclosures Unit 2023 2024 2025 Ecology and Environment and the National Bureau of Statistics on Issuing the 2022 Power CO2 Emission Factor. In 2025, the location-based and market-based greenhouse gas emission
factors for purchased electricity adopted 0.5306 tCO2e/MWh (national average grid emission factor of China) and 0.6096 tCO2e/MWh (excluding market-traded non-fossil energy electricity)
Diesel consumption1 L —— 9,110.88 11,870.59 respectively, as specified in the Announcement of the Ministry of Ecology and Environment and the National Bureau of Statistics on Issuing the 2023 Power CO2 Emission Factor.
Petrol consumption L —— 41,258.47 37,930.00
Usage of Water Resources Data Sheet
Natural gas consumption m 1,923,796.00 1,200,693.00 1,612,991.00
Purchased electricity3 MWh 9,114.88 6,442.51 8,838.79 Disclosures Unit 2023 2024 2025
Total water intake m 94,875.00 127,785.60 107,599.00
Purchased renewable electricity consumption MWh —— 1,297.04 1,978.05
Total discharge volume1 m3 85,387.00 108,044.46 90,260.25
Direct energy consumption4 tce 2,558.65 1,653.14 2,201.29
Total water consumption2 m3 9,488.00 19,741.14 17,338.75
Indirect energy consumption5 tce 1,121.02 792.35 1,087.07 Water consumption intensity (per unit output value) 2,3 3
m /RMB10,000 0.09 0.28 0.16
Total energy consumption tce 3,679.67 2,445.49 3,288.36 Note 1: Total discharge volume = Domestic sewage discharge volume.
Energy use intensity (per unit output value) 7
tce/RMB10,000 0.03 0.03 0.03 Note 2: Total water consumption = total water intake ? total discharge volume. Owing to the increase in the Company’s product output in 2024, the 2024 data rose
significantly compared with 2023. In 2025, the Company effectively improved water resource utilization efficiency, resulting in a decrease in the 2025 data compared
Renewable energy consumption8 tce —— 159.52 243.28 with 2024.
Clean energy consumption tce 2,558.65 1,756.44 2,388.55 Note 3: Calculation formula: Water consumption intensity = Total water consumption / Gross output value.
Note 1: The Company began compiling diesel consumption data in 2024, as diesel is mainly used for forklifts. In 2025, the Company scaled up production and Pollutant Discharge Data Sheet
increased equipment utilization, leading to a significant rise in diesel consumption compared with 2024.
Note 2: The Company’s product output increased in 2025, resulting in a significant rise in natural gas consumption compared with 2024. Disclosures Unit 2023 2024 2025
Note 3: The Company’s product output increased in 2025, resulting in a significant rise in purchased electricity consumption compared with 2024. Nitrogen oxides (NOX) emissions in waste gas kg 4,095.20 852.32 616.45
Note 4: Direct energy includes diesel, gasoline for official vehicles, and natural gas. The conversion coefficient to standard coal is based on GB/T 2589-2020 General 1
Sulphur oxides (SOX) emissions in waste gas1 kg 4.10 92.98 356.86
Rules for Calculation of Comprehensive Energy Consumption .
Particulate matter (PM) emissions in waste gas1 kg 32.50 41.02 414.27
Note 5: Indirect energy includes purchased electricity. The conversion coefficient to standard coal is based on GB/T 2589-2020 General Rules for Calculation of 1
Sulphur dioxide (SO2) emissions in waste gas kg 4.10 92.98 356.86
Comprehensive Energy Consumption .
Other waste gas pollutant emissions2 kg —— 47.80 152.06
Note 6: Total energy consumption = Direct energy consumption + Indirect energy consumption. 3 3
Total waste gas emissions m —— 299,610,652.00 518,161,891.00
Note 7: Calculation formula: Energy use intensity = Total energy consumption / Gross output value.
Waste gas emission intensity (per unit output value)4 m3/RMB10,000 —— 4,256.50 4,658.98
Note 8: Renewable energy includes purchased green electricity. The conversion coefficient to standard coal is based on GB/T 2589-2020 General Rules for
Calculation of Comprehensive Energy Consumption . The Company began to compile statistics on renewable energy in purchased electricity in 2024. Note 1: In 2023, the Company calculated pollutant emissions using the pollution discharge coefficient method. Starting from 2024, pollutant emissions have been
Note 9: Clean energy includes purchased green electricity and natural gas. The conversion coefficient to standard coal is based on GB/T 2589-2020 General Rules calculated using the monitoring method. Due to the increase in the Company’s product output, the 2025 data rose significantly compared with 2024.
for Calculation of Comprehensive Energy Consumption . Note 2: Other waste gas pollutants mainly refer to volatile organic compounds (VOCs). Due to the increase in the Company’s product output, the 2025 data rose
Note 10: “——” indicates that relevant data is not tracked by the Company. The same as below. significantly compared with 2024.
Note 3: Due to the increase in the Company’s product output, the 2025 data rose significantly compared with 2024.
Note 4: Calculation formula: Waste gas emission intensity = Total waste gas emissions / Gross output value.
Waste Disposal Data Sheet Safety and Quality of Products and Services Data Sheet
Disclosures Unit 2023 2024 2025 Disclosures Unit 2023 2024 2025
Total hazardous waste generated1 tonnes 40.42 70.34 247.88
Total number of complaints received regarding products and services cases 0 0 0
Hazardous waste intensity (per unit output value) kg/RMB10,000 0.37 1.00 2.23
Total non-hazardous waste generated1 tonnes 1,935.88 1,084.62 3,499.03 Amount involved in major liability accidents related to safety and quality of
RMB10,000 0 0 0
products and services occurred during the reporting period
Non-hazardous waste by source: Metals tonnes 1,745.28 899.22 3,286.49
Non-hazardous waste by source: Industrial Solid Waste (non-hazardous)1 tonnes 190.60 185.40 212.54
Non-hazardous waste intensity (per unit output value) 3
tonnes/RMB10,000 0.02 0.02 0.03 Data Security and Customer Privacy Protection Data Sheet
Note 1: The Company’s product output increased in 2025, resulting in a significant rise in the 2025 data compared with 2024.
Disclosures Unit 2023 2024 2025
Note 2: Hazardous waste intensity = Total hazardous waste / Gross output value.
Note 3: Non-hazardous waste intensity = Total non-hazardous waste / Gross output value.
Amount involved in data security incidents RMB10,000 0 0 0
Circular Economy Data Sheet Number of confirmed complaints regarding infringement of customers' privacy
cases 0 0 0
rights and loss of customers' data
Disclosures Unit 2023 2024 2025
Amount involved in customer privacy breach incidents RMB10,000 0 0 0
Waste recycled1 tonnes 1,745.28 899.22 3,286.49
Note 1: The waste recycled and reused by the Company mainly consists of metals. As the Company’s product output increased in 2025, the 2025 data rose
significantly compared with 2024. Supply Chain Environmental and Social Risk Management Data Sheet
Disclosures Unit 2023 2024 2025
Social Data
Total number of suppliers1 suppliers 640 732 867
Innovation-driven Data Sheet
Number of suppliers in Chinese Mainland suppliers 637 730 862
Disclosures Unit 2023 2024 2025
R&D expenditure RMB10,000 5,778.29 5,085.31 6,002.15 Number of suppliers in Hong Kong, Macao, Taiwan and overseas suppliers 3 2 5
R&D expenditure as a percentage of revenue from the principal business % 5.23 7.83 6.05
Total number of new suppliers2 suppliers 15 92 135
Number of R&D personnel persons 177 151 216
Percentage of R&D personnel % 17.08 14.91 21.60 Number of suppliers assessed on environmental, labor, ethical and other aspects2 suppliers 15 92 135
Number of patent applications during the reporting period1 counts 42 26 40 Proportion of qualified suppliers assessed on environmental, labor, ethical and
% 100 100 100
other aspects3
Number of patents granted during the reporting period counts 57 40 25
Note 1: Calculation formula: Total number of suppliers = Number of suppliers in Chinese Mainland + Number of suppliers in Hong Kong, Macao, Taiwan and overseas.
Number of valid patents at the end of the reporting period 1
counts 252 285 281 Note 2: In 2024, most of the Company’s suppliers were project-based. A large number of new suppliers were added due to on-site project requirements and the
owner’s shortlist of suppliers, coupled with the Company’s development of new suppliers. As a result, the 2024 data increased significantly compared with 2023.
Number of invention patents applied in the principal business counts 209 221 240 Note 3: Calculation formula: Proportion of qualified suppliers assessed on environmental, labor, ethical and other aspects = Number of qualified suppliers assessed
on environmental, labor, ethical and other aspects / Number of suppliers assessed on environmental, labor, ethical and other aspects × 100.
Number of software copyrights registered during the reporting period counts 8 3 3
Total number of software copyrights registered counts 34 37 40
Note 1: Based on the principle of reporting accuracy, retrospective adjustments have been made to the intellectual property-related data for 2023 and 2024.
Employment and Labor Rights Data Sheet Occupational Health and Safety Data Sheet
Disclosures Unit 2023 2024 2025 Disclosures Unit 2023 2024 2025
Total number of employees persons 1,036 1,013 1,000 Total investment in safety operations1 RMB10,000 515.36 303.55 849.80
Female employees persons 237 226 217 Expenditure on employees’ work-related injury insurance RMB10,000 55.27 45.04 63.71
By gender
Male employees persons 799 787 783 Employee coverage rate for work-related injury insurance2 % 100 100 100
Number of full-time employees under labor
persons 788 775 756 Proportion of employees receiving occupational health and safety training % 100 100 100
contract
By employment type Number of full-time dispatched employees persons 222 232 241 Total duration of occupational health and safety training hours 9,300 9,200 8,192
Number of re-employed retired employees persons 26 6 3 Average duration of occupational health and safety training per employee hours 8.98 9.08 8.19
Number of employees with a doctoral degree as
persons 4 3 5 Number of employees with occupational diseases persons 0 0 0
their highest education
Number of employees with a master's degree as
persons 97 96 103 Number of safety incidents cases 0 0 0
By educational their highest education
background Number of employees with a bachelor's degree as
persons 307 308 299 Number of work-related injuries sessions 0 0 0
their highest education
Number of employees with a college degree or
persons 628 606 593 Number of employees injured at work persons 0 0 0
lower as their highest education
Employees aged under 30 persons 190 164 161 Number of employee deaths due to work-related injuries persons 0 0 0
By age Employees aged 30 to 50 persons 661 664 647 Note 1: In 2025, the company increased production, resulting in a relatively large increase in total safety operation investment compared with 2024.
Note 2: Calculation formula: Employee work-related injury insurance coverage rate = Number of employees covered by work-related injury insurance / Total
Employees aged above 50 persons 185 185 192 number of employees × 100.
Total number of management employees persons 41 51 53
Female management employees persons 0 0 3
By management gender
Employee Training and Development Data Sheet
Male management employees persons 41 51 50
Proportion of female employees % 22.88 22.31 21.70 Disclosures Unit 2023 2024 2025
Proportion of ethnic minority employees % 1.45 1.48 1.50 Number of training implementation projects items 196 266 278
Employee turnover Rate
% 5.79 4.94 3.70 Total expenditure on employee training RMB10,000 84.50 86.10 67.62
Female employee turnover rate1 % 3.80 5.75 6.45 Number of employee training sessions sessions 10 9 12
By gender
Male employee turnover rate1 % 6.38 4.70 2.94 Employee training coverage rate1 % 100 100 100
Number of labor disputes cases 0 0 0 Male employee training coverage rate2 % 100 100 100
Social insurance coverage rate % 100 100 100 Female employee training coverage rate3 % 100 100 100
Note 1: Calculation formula: Employee training coverage rate = number of employees receiving training/total number of employees × 100.
Labor contract signing rate % 100 100 100
Note 2: Calculation formula: Male employee training coverage rate = Number of male employees trained / Number of male employees × 100.
Note 3: Calculation formula: Female employee training coverage rate = Number of female employees trained / Number of female employees × 100.
Note 1: Calculation formula: Employee turnover rate = Total number of employees who left / Total number of employees × 100. Female employee turnover rate =
Number of female employees who left / Number of female employees × 100. Male employee turnover rate = Number of male employees who left / Number of male
employees × 100.
Contributions to the Society Data Sheet Corporate Governance Data Sheet
Disclosures Unit 2023 2024 2025 Disclosures Unit 2023 2024 2025
Number of Board of Directors members persons 8 9 9
Number of volunteer activities held sessions 12 5 4
Number of male directors persons 4 8 8
Total hours of employee volunteer services hours 480 118 124 Number of female directors persons 4 1 1
Proportion of female directors in the Board of Directors % 50.00 11.11 11.11
Number of employee participants in volunteer services1 persons 210 60 68
Number of executive directors persons 2 2 2
Number of non-executive directors persons 3 4 4
Amount of charitable donations RMB10,000 18 15 15
Number of independent non-executive directors persons 3 3 3
Note 1: In 2023, the company’s volunteer services increased due to public health events, resulting in relatively high data for that year.
Number of shareholders’ meetings held sessions 3 3 3
Number of board meetings held sessions 7 7 6
Rural Revitalization Data Sheet
Number of meetings held by special committees under the board of directors sessions 7 5 9
Disclosures Unit 2023 2024 2025 Number of ESG proposals reviewed by the board of directors cases 0 1 1
Amount invested in rural revitalization RMB10,000 41.05 39.13 47.14
Anti-commercial Bribery and Anti-corruption Data Sheet
Number of beneficiaries of rural revitalization persons —— —— 2,070
Disclosures Unit 2023 2024 2025
Number of anti-commercial bribery and anti-corruption training sessions held by the
sessions 3 5 5
Company for employees
Corporate Governance Data Number of directors who received anti-commercial bribery and anti-corruption training persons 8 9 9
Number of management employees who received anti-commercial bribery and anti-
Economic Performance Data Sheet corruption training
persons 41 51 53
Number of employees receiving anti-commercial bribery and anti-corruption training persons 1,036 1,013 1,000
Disclosures Unit 2023 2024 2025 1
Proportion of directors covered by anti-commercial bribery and anti-corruption training % 100 100 100
Operating revenue RMB10,000 111,538.94 67,538.65 99,233.46 Proportion of management employees covered by anti-commercial bribery and anti-
% 100 100 100
corruption training2
Proportion of employees covered by anti-commercial bribery and anti-corruption training3 % 100 100 100
Revenue from the principal business RMB10,000 110,431.39 64,962.17 98,081.95
Number of concluded corruption lawsuits filed against the issuer or its employees during the
cases 1 0 0
reporting period
Total tax payment RMB10,000 6,701.74 7,760.21 5,670.36
Note 1: Calculation formula: Percentage of directors covered by anti-commercial bribery and anti-corruption training = Number of directors who received anti-
Basic earnings per share RMB per share -0.39 -0.25 0.14 commercial bribery and anti-corruption training / Number of board members × 100.
Note 2: Calculation formula: Percentage of management employees covered by anti-commercial bribery and anti-corruption training = Number of management
employees who received anti-commercial bribery and anti-corruption training / Number of management employees × 100.
Social contribution value per share RMB per share 0.29 0.46 0.77
Note 3: Calculation formula: Percentage of employees covered by anti-commercial bribery and anti-corruption training = Number of employees who received anti-
commercial bribery and anti-corruption training / Total number of employees × 100.
Note 1: Calculation formula: Social contribution value per share = Basic earnings per share + (Taxes contributed to the country during the year + Wages paid
to employees + Loan interest paid to creditors such as banks + Donations and other value generated for other stakeholders ? Other social costs caused by
environmental pollution, etc.) / Total share capital at the end of the period. Anti-unfair Competition Data Sheet
Disclosures Unit 2023 年 2024 年 2025 年
Amount involved in litigation or major administrative penalties arising from the
RMB10,000 0.00 0.00 0.00
Company’s unfair competition practices during the reporting period
Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed GRI Content Index
Companies—Sustainability Report (Trial) Index Table
LANPEC has reported in accordance with the GRI Standards for the period from 1 January 2025 to 31
Statement of Use December 2025.
Dimension Topic Corresponding Sections of this Report, Other Notes
Climate change tackling Climate Change Tackling GRI 1 Use GRI 1: Foundation 2021
Pollutant discharge Pollutant Discharge
GRI Standards Disclosures Sections
Waste disposal Waste Disposal
Ecosystem and biodiversity
Ecosystem and Biodiversity Protection
protection 2-2 About This Report
Environment
Environmental compliance
Environmental Compliance Management
management 2-3 About This Report
Energy usage Energy Usage 2-4 About This Report
Water utilisation Water Utilisation 2-6 Company Profile
Circular economy Circular Economy
Rural revitalization Rural Revitalization
Contributions to the society Contributions to the Society
Innovation-driven Innovation-driven 2-11 Corporate Governance
The Company is not involved in scientific research, technology development, or other
Ethics of science and technology activities in areas sensitive to technology ethics. Therefore, this topic is of low relevance
to the Company. 2-13 Corporate Governance
GRI 2: General Disclosures 2021
Supply chain security Supply Chain Security and Management 2-14 Sustainability (ESG) Management
Social
At the end of the reporting period, the balance of the Company’s accounts payable
Equal treatment to small and (including notes payable) did not exceed RMB30,000,000,000, nor did it account for more
medium-sized enterprises than 50% of total assets. The Company did not owe any overdue payments to small and 2-17 Corporate Governance
medium-sized enterprises.
Safety and quality of products and 2-18 Corporate Governance
Safety and Quality of Products and Services
services
Data security and customer privacy
Data Security and Customer Privacy Protection
protection 2-20 Employee Rights and Benefits
Employee Rights and Benefits, Occupational Health and Safety, Employee Training and
Employees
Development 2-22 The Letter from the Chairman
Due diligence Double Materiality Analysis Building on Green Foundations, Thriving in Ecological Harmony; Innovation
Stakeholder communication Double Materiality Analysis Building on Standards to Ensure Steady and Sustainable Progress
Sustainability-related
Governance Anti-commercial bribery and Anti- Building on Green Foundations, Thriving in Ecological Harmony; Innovation
Anti-commercial Bribery and Anti-corruption 2-27 Leadership, Intelligently Creating the Future; People-oriented, Shared Value;
corruption
Building on Standards to Ensure Steady and Sustainable Progress
Anti-unfair competition Anti-unfair Competition
Industry development Industry Development
Risk management and compliant
Self-selected Topics Risk Management and Compliant Operations GRI 3: Material Topics 2021 3-2 Double Materiality Analysis
operations
Corporate governance Corporate Governance 3-3 Double Materiality Analysis
GRI Standards Disclosures Sections GRI Standards Disclosures Sections
GRI 101: Biodiversity 2024 101-2 Ecosystem and Biodiversity Protection 306-1 Waste Disposal
GRI 102: Climate Change 2025
GRI 103: Energy 2025
GRI 201: Economic Performance 2016 201-2 Climate Change Tackling 403-5 Occupational Health and Safety
GRI 403: Occupational Health and Safety 2018
GRI 205: Anti-corruption 2016 205-2 Anti-commercial Bribery and Anti-corruption 403-8 Occupational Health and Safety
GRI 206: Anti-competitive Behaviour 2016 206-1 Anti-unfair Competition 404-1 Employee Training and Development
GRI 404: Training and Education 2016
GRI 301: Materials 2016
GRI 302: Energy 2016
GRI 414: Supplier Social Assessment 2016
GRI 303: Water and Effluents 2018 303-3 ESG Data Tables and Notes 414-2 Supply Chain Security and Management
GRI 416: Customer Health and Safety 2016
GRI 305: Emissions 2016
Lanpec Technologies Limited
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