CONTENTS
WALK IN DAJIN 01 ENVIRONMENTAL 31
About This Report 01 1.1 Climate Change Response 32
Message from Chairman 02 1.2 Green Operations 45
About us 03 1.3 Environmental Compliance Management 57
Sustainable Development Highlights 08
SOCIAL 65
SUSTAINABILITY MANAGEMENT 09 2.1 Product and Service Quality 66
Sustainability Governance 10 2.2 Safety and Efficient Production 73
Stakeholder Engagement 13 2.3 Information Security and Privacy Management 79
Double Materiality Assessment 14 2.4 Talent Management 83
SPECIAL TOPICS 17
SPECIAL TOPIC 1 Green shipping undergoes further upgrades, GOVERNANCE 97
leveraging autonomous shipping capabilities to establish a new global delivery advantage 18 3.1 Corporate Governance 98
SPECIAL TOPIC 2 Reshaping Responsible Procurement and Forging a Sustainable Value Chain 23 3.2 Compliance and Risk Management 100
APPENDIX 107
Key Performance Indicators, KPIs 107
Standard Index Table 111
Reader Feedback Form 112
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
About This Report
Report Overview Definition of Abbreviations
This report is the third sustainability report prepared and issued by Dajin Heavy Industry Co.,
Ltd. (hereinafter referred to as “Dajin Heavy Industry”, “the Company”, “the Group” or “We”). Abbreviation Full Name
It aims to disclose the Company’s latest progress in sustainable development initiatives as well
Penglai Facility Penglai Dajin Offshore Heavy Industry Co., Ltd.
as its environmental, social and governance (ESG) management performance in an objective,
fair and transparent manner, so as to enable stakeholders to gain a more comprehensive Tangshan Facility Tangshan Dajin Offshore Engineering Equipment Manufacturing Co., Ltd.
understanding of Dajin Heavy Industry.
Fuxing Facility Dajin Heavy Industry Co., Ltd.
Zhangjiakou Facility Zhangjiakou Dajin Wind Power Equipment Co., Ltd.
Report Scope Yangjiang Facility Yangjiang Dajin Wind Power Offshore Engineering Technology Co., Ltd.
Reporting Period: January 1, 2025 to December 31, 2025. To improve comparability and Xing An’meng Facility Xing An’meng Dajin Heavy Industry Co., Ltd
completeness, certain information is extended appropriately to prior and subsequent periods.
Panjin Facility PanJin Dajin Offshore Engineering Co., Ltd.
Reporting Boundary: The organizational scope of this report covers Dajin Heavy Industry and its
subordinate production facilities, wind farms and PV Power Station, consistent with the scope
of the annual report. For the manufacturing segment of the Tangshan facility, only sustainable
development-related information and data pertaining to the project construction phase are
included. Financial data presented in this report are derived from the Company’s annual report, Access to the Report
while other data are sourced from internal statistics. Standards referenced for data calculations
are clearly indicated in the report. Unless otherwise specified, all monetary amounts are This report is available for public download via the Shenzhen Stock Exchange website and the official
website of Dajin Heavy Industry. The report is published in both Simplified Chinese and English. In the
denominated in RMB.
event of any inconsistency between the two versions, the Simplified Chinese version shall prevail.
Basis of Preparation
Feedback
This report has been prepared in accordance with relevant requirements including the Self-
Regulatory Guidelines for Listed Companies No. 1 – Standardized Operation of Main We greatly value stakeholders’ feedback and welcome readers to contact us via the contact information
provided below. Your input will help us further refine this report and enhance the Group’s overall
Board Listed Companies and Self-Regulatory Guidelines for Listed Companies No. 17 –
environmental, social and governance (ESG) performance.
Sustainability Reports (for Trial Implementation) issued by the Shenzhen Stock Exchange,
as well as the Corporate Sustainability Disclosure Standards – Basic Standards (for Trial Email: djsustainability@dajin.cn
Implementation) issued by the Ministry of Finance. Reference has also been made to the GRI
Tel: +86 (10) 5783 7709
Standards: Sustainability Reporting Standards by the Global Reporting Initiative (GRI), the
Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) , and Address: Room 1102, East Tower, China Overseas Property Plaza, No. 8 Courtyard, West
the United Nations Sustainable Development Goals (UNSDGs). Riverside Road, Yongdingmen, Dongcheng District, Beijing
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Message from Chairman
During the year, Dajin Heavy Industry received multiple distinctions in globally recognized ESG ratings. Our
Penglai Facility officially passed validation by the Science Based Targets initiative (SBTi), becoming the first,
In 2025, the global energy transition continued to advance in depth. The and currently the only, offshore wind foundation manufacturer in the industry to have both near-term and
net-zero targets validated by the SBTi. At the same time, the Company was awarded the EcoVadis Silver Medal
combined pressures of climate change and energy security have prompted
(ranking among the top 8% of rated companies globally), a CDP Climate Change rating of B, and a Water
countries around the world to accelerate the development of renewable Security rating of B-, placing our climate management capabilities among the global leaders in our sector.
energy. As a key pillar of the global energy transition, offshore wind is entering These recognitions are not only a strong endorsement of our green practices, but also have helped us build a
robust “green moat” for expanding into overseas markets.
a new stage characterized by both large-scale deployment and technological
upgrading. In response to the global low-carbon emission development trend, we have used science-based targets as
a guiding framework to systematically advance decarbonization across the entire value chain. On the supply
chain side, we have built a sustainable management system covering the full supplier lifecycle, deepened
Jin Xin, Chairman for Dajin Heavy Industry cooperation on the R&D and application of green steel, and established carbon emissions data management
mechanisms for key raw materials, using responsible procurement to drive the development of a green value
chain. On the operations side, we have advanced green upgrading of production processes, optimized our
energy structure, and expanded the use of clean energy. At the same time, leveraging our own shipping
capabilities, we have developed green logistics and low-carbon emission shipping solutions, systematically
In 2025, the global energy transition continued to advance in depth. The combined pressures of climate change carried out climate risk identification, and actively responded to international regulatory requirements such as
and energy security have prompted countries around the world to accelerate the development of renewable the EU Carbon Border Adjustment Mechanism (CBAM). In doing so, we have embedded low-carbon emission
energy. As a key pillar of the global energy transition, offshore wind is entering a new stage characterized by principles throughout the full process of design, manufacturing, and project delivery, enabling coordinated
both large-scale deployment and technological upgrading. At the same time, the industry is facing higher progress between corporate development and ecological protection.
expectations in areas such as technology and low-carbon emission standards, supply chain resilience, and
global competition. The coexistence of challenges and opportunities is reshaping the development landscape We firmly believe that talent is the core support for a company’s global development, and that sound
of the offshore wind industry. compliance governance is the fundamental safeguard for long-term and steady growth. In 2025, the Company
continued to improve its global talent cultivation and development system, enrich the development of cross-
Against this backdrop, Dajin Heavy Industry has remained firmly committed to sustainability as a guiding cultural collaboration teams, and strengthen employee rights protection and a culture of diversity and
principle, striving to achieve both high-quality corporate development and greater contributions to the inclusion. In corporate governance, we continuously optimized our governance structure, improved our risk
industry. During the year, while continuing to strengthen our manufacturing core, we also accelerated the management and compliance system, advanced anti-bribery management system certification, and further
integrated development of the upstream and downstream industrial chain, driving breakthrough progress enhanced the transparency of information disclosure and the quality of investor communication. At the same
across multiple businesses. In equipment manufacturing, we achieved simultaneous advances in capacity, time, the Company actively worked together with global customers, suppliers, and partners to promote
market presence, and technology. Leveraging our three major offshore facilities around the Bohai Rim, we supplier due diligence for sustainable supply chain development, building a mutually beneficial and win-win
established a coordinated development layout, led the industry in monopile deliveries to the European market, industrial ecosystem.
secured overseas orders on hand exceeding RMB 10 billion, and expanded our business footprint across
Though the road ahead may be long, with sustained effort we will reach our destination. Standing at the new
major core projects in Europe. In shipbuilding, focusing on the transport capacity constraints faced by the
starting point of 2026, Dajin Heavy Industry will continue to uphold responsibility and commitment, remain
industry, we successfully delivered our first 40,000-ton deck carrier and subsequently secured major orders
true to its original aspiration for sustainable development, deeply embed green principles into the entire
from shipowners in South Korea and Norway, marking our successful entry into the international shipbuilding process of R&D, manufacturing, and service, and continuously strengthen its full-industry-chain service
market and a critical breakthrough from zero to one. In ocean transportation and special logistics services, we capabilities. Together with our global partners, we will move forward side by side and contribute Dajin’s
achieved a full-chain capability upgrade, with the DAP delivery model becoming the mainstream cooperation strength to the global energy transition and to a sustainable future for humankind.
model for overseas projects. We successfully completed all transportation tasks during the year, and the
outline of our full-industry-chain service system—featuring self-owned factories, self-owned goods, self- Jin Xin
owned vessels, and self-managed ports—has now begun to take shape. Chairman
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
About us
Company Profile
Founded in 2003 and listed on the Shenzhen Stock Exchange in 2010, Dajin Heavy Industry is the first
The only supplier in the Asia-Pacific region capable of batch
listed company in China engaged in wind turbine tower and foundation manufacturing, as well as a global
leader in offshore wind foundation structures and tower solutions. The Company mainly manufactures delivery of monopiles to the European Union.
and sells offshore wind monopile foundations, transition pieces, jacket foundations, floating foundations
and tower products, and provides clients with one-stop integrated solutions covering “Fabrication +
The top-ranked supplier of offshore wind foundation
Transportation + Delivery” for offshore wind equipment, capable of meeting the diversified demands of
offshore wind projects across different regions worldwide.
equipment by market share in the European market.
Since launching the construction of its Penglai offshore engineering facility in 2010, the Company has steadily
advanced its “second growth curve” — the strategic layout and implementation of its overseas offshore wind
equipment business, which has achieved remarkable results in recent years with a continuous expansion
of European orders. In the reporting year, the Company continued to implement its “Offshore & Overseas
Strategy”, focusing on the high technical standards, stringent quality requirements and high value-added
characteristics of offshore wind markets in developed economies worldwide. We has continuously advanced
the iteration of its markets and products, and steadily enhanced our competitiveness and market share in the
offshore wind markets of major developed economies globally.
Meanwhile, the Company is actively fostering its future “third growth curve” by partnering with international
leading providers of floating foundation solutions, establishing a global floating business center, and
accelerating the R&D and engineering application of a new generation of floating foundation products.
Leveraging our new Panjin facility and the cluster of coastal high-end offshore engineering facilities, the
Company continues to strengthen its in-house vessel manufacturing capacity and specialized transportation
fleet, building a global logistics and delivery network covering major offshore wind markets. It has gradually
developed an integrated solution capability spanning “manufacturing, transportation and delivery”.
With the operation of overseas wind power mother ports, Dajin Heavy Industry has formally established a
full industrial chain closed-loop featuring “self-owned factories, self-owned cargoes, self-owned vessels
and self-owned ports”. This has laid a solid foundation for the Company to deepen its presence in the deep-
water offshore market, improve cross-regional project delivery efficiency and risk control capabilities, and
develop comprehensive EPCI service capabilities. It has also significantly enhanced the Company’s systematic
competitive advantages in the global high-end offshore wind market.
Since 2023, the Company has firmly implemented the "New Overseas & Offshore Strategy". With the
continuous expansion of its overseas business share, its leading position in the global industry has become
increasingly consolidated. Overseas offshore engineering products have become the core engine driving
the improvement of the Company’s profitability. Particularly in the European offshore wind market with high
entry barriers and high added value, the Company has achieved rapid performance growth, ranked among
the world’s first-class offshore wind equipment suppliers, established long-term cooperative relationships
with several global leading energy developers, and continuously accumulated international brand reputation.
Driven by this, the Company’s business development in regional markets such as Japan, South Korea and
Australia has advanced steadily, the scope of project coverage has been continuously expanded, and the
global layout has been further deepened.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Company Business Segments
R&D and Manufacturing of Offshore Wind Foundation
Equipment
The main products include monopile foundations, transition pieces, jackets
floating foundations, and towers.
Ocean-Going Specialized Transportation
Include one-stop solutions for heavy marine engineering logistics such
as transportation planning, marine engineering design, and port loading/
unloading operations.
Vessel Design and Construction
Independently design and develop deck transport vessels, heavy-lift
transport vessels, and build a professional fleet.
New Energy Development and Operation
Development, construction and operation of wind farms and photovoltaic
power plants.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Global Business Layout
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Dajin Heavy Industry has established more than 40 member enterprises
across European countries including Germany and Poland, as well as
multiple Chinese provinces and autonomous regions such as Liaoning,
???瀲~?ó??ó?ě?????ē ?????澴 Inner Mongolia, Hebei, Shandong and Guangdong. The Company has
A??ēT??ē built a client and sales network covering more than 30 countries and
regions worldwide.
With excellent product quality, a stable supply chain system and strong
sustainable development capabilities, the Company works closely with
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Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Awards & Honors
SBTi Science Based Targets Member of
EcoVadis Silver Medal
Certification Responsible Steel
CDP SEA (Supplier Engagement
CDP Climate Change: B CDP Water Security: B-
Assessment): A
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Sustainable Development
Highlights
Environmental
Total greenhouse gas emissions of GHG emissions per million RMB of Cumulative grid-connected power Number of environmental penalties Production recovery rate: 96.1%
Scope 1 and Scope 2: 53,291.10 tCO₂e operating revenue: 34% decrease generation projects: 500 MW installed
compared with 2024 capacity
Social
Total number of employees: 2,303 Total employee training hours: Number of major safety and quality 100% of all new and renewed suppliers 100% of suppliers with potential
and Compliance Agreement Commitment to Not Using Conflict
Minerals
Sustainability
Management
? Sustainability Governance
? Stakeholder Engagement
? Double Materiality Assessment
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Sustainability Governance
Dajin Heavy Industry has established a sustainability governance system aligned with the Company’s global The management level consists of four specialized committees under the Strategy and Sustainability
operations and ESG management requirements, forming a three-tier governance structure consisting of Committee (the Green Steel Committee, Carbon Emission Reduction Committee, Sustainability Risk Assessment
decision-making, management and execution levels. With clear roles and responsibilities, the Company Committee, and Sustainable Procurement Committee) as well as the Sustainability Center. It is responsible for
achieves closed-loop management of the sustainability strategy from formulation to full implementation. translating the strategic plans of the decision-making level into implementable management measures and
specialized actions.
The decision-making level is the Board of Directors. As the Company’s top governance and oversight body, the
Board bears ultimate responsibility for material sustainability-related matters. It oversees the advancement of Through the collaborative operation of the four professional committees and the Sustainability Center, the
ESG initiatives through its dedicated Strategy and Sustainability Committee. Company has formed a professional management system covering low-carbon raw materials, carbon emission
reduction management, risk assessment and supply chain management, which effectively supports the
The Committee is responsible for reviewing the Company’s sustainability strategy, annual priorities and
Company’s sustainable development practices in the global offshore wind power industry chain.
medium-to-long-term sustainability goals, regularly assessing performance and risk management, and
providing decision-making recommendations to the Board on key issues. This ensures the Company The execution level comprises the Sustainability Department, various production facilities, business divisions
continuously aligns its operations with domestic and international regulatory requirements and industry best and relevant departments of subsidiaries. It is responsible for the concrete implementation of the Company’s
practices, steadily advancing the achievement of sustainability objectives. sustainability strategy and management requirements, integrating ESG principles into daily operations,
production management and business development.
Responsibilities of the Specialized Committee
Governance Structure Governance Body Responsibility Description
As the Company’s top governance and oversight body, the Board of Directors bears ultimate decision-making and oversight responsibility for material
sustainability-related matters of the Company, ensuring that ESG management aligns with the Company’s overall development strategy and meets regulatory
requirements and Shareholders' Meeting expectations. Its core responsibilities include:
? Reviewing and approving the Company’s sustainability strategy, medium- and long-term goals, and major management policies;
Board of Directors ? Integrating environmental, social and governance-related matters into the Company’s overall strategy and major operational decisions;
? Overseeing risk management and compliance in the Company’s ESG domain;
? Reviewing annual key sustainability initiatives and performance achievement;
? Reviewing the Company’s sustainability report and relevant information disclosure;
? Guiding the Company’s overall direction on material issues such as climate change, supply chain management and social responsibility.
Decision-Making
Level As a special committee under the Board of Directors, the Strategy and Sustainability Committee is responsible for conducting overall research, professional
review and continuous supervision on the Company’s sustainability-related work, and providing decision support and recommendations to the Board of
Directors. Its main responsibilities include:
? Researching and proposing the Company’s sustainability strategy, annual work priorities and phased goals;
Strategy and Sustainability
Committee
? Reviewing ESG-related policies, systems and special work plans;
? Tracking the achievement of the Company's sustainable development goals and key performance indicators;
? Review important ESG topics such as climate change, supply chain management, compliance and risk;
? Guide the Company's sustainable development information disclosure and external communication work;
? Regularly report the progress and improvement suggestions of ESG work to the board of directors, and promote the implementation of relevant decisions.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Governance
Governance Body Responsibility Description
Structure
As the permanent coordinating body for the Company’s sustainability initiatives, the Sustainability Center undertakes day-to-day implementation and integrated
management functions at the management level, and provides support to the four specialized committees. Its main responsibilities include:
? Coordinating the implementation of the Company’s sustainability strategy and annual work plan;
? Conducting research on ESG policies and regulations, and tracking international standards and industry trends;
Sustainability Center ? Managing sustainability data, monitoring indicators and tracking performance;
? Organizing the preparation of the sustainability report and related information disclosure;
? Coordinating various departments to advance ESG projects and cross-departmental collaboration;
? Supporting external ratings, client audits and stakeholder communication;
? Regularly reporting work progress and improvement recommendations to the decision-making level.
Focusing on the low-carbon transformation of core raw materials for the Company’s offshore wind equipment manufacturing business, the Green Steel Special
Committee coordinates the promotion of green steel application and low-carbon supply chain cooperation. Its main responsibilities include:
? Formulating the Company’s green steel application and supply chain low-carbon transformation strategies;
Green Steel Special Committee ? Establishing strategic cooperation mechanisms with major steel suppliers to promote the development and application of low-carbon steel;
? Promoting the collection, accounting and third-party verification of steel carbon footprint data;
? Supporting overseas clients’ low-carbon procurement and project carbon emission management requirements;
? Tracking the development of green material technologies and policy trends in the industry.
Responsible for the Company’s overall carbon management and carbon reduction path planning, and promoting carbon reduction actions at the operational and
supply chain levels. Its main responsibilities include:
Management
? Formulating the Company’s carbon reduction roadmap and annual action plans;
Level Carbon Emission Reduction
Special Committee ? Promoting energy management, energy conservation and consumption reduction, and the application of low-carbon technologies;
? Coordinating the accounting and management of greenhouse gas emission data;
? Supporting international climate-related goals and disclosure work (such as carbon emission targets, carbon footprint management, etc.);
? Researching the impact of domestic and international carbon regulatory policies on the Company’s business and putting forward response measures.
Focuses on the identification and management of ESG risks in the Company’s operations and global business, with the aim of enhancing risk prevention and
control capabilities. Its main responsibilities include:
Sustainability Risk Assessment
? Establishing ESG risk identification and assessment mechanisms;
Special Committee ? Conducting regular assessments of risks related to climate change, supply chain, compliance and social responsibility;
? Promoting the integration of ESG risks into the Company’s overall risk management system;
? Performing sustainability risk reviews for major projects and overseas business operations;
? Providing risk assessment results and improvement recommendations to the decision-making level.
Responsible for advancing sustainable supply chain management and enhancing suppliers’ ESG capabilities. Its main responsibilities include:
? Formulating sustainable procurement policies and management requirements;
Sustainable Procurement ? Promoting the development of supplier ESG evaluation and audit mechanisms;
Special Committee
? Driving compliance and improvement of the supply chain in environmental, social and governance aspects;
? Supporting procurement practices such as low-carbon materials and green logistics;
? Strengthening sustainable cooperation and capacity building with key suppliers.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Governance
Governance Body Responsibility Description
Structure
The execution level is responsible for the concrete implementation of the Company’s sustainability strategy and management requirements, integrating ESG
principles into daily operations, production management and business development. Its main responsibilities include:
Sustainability Department,
production facilities, business
? Implementing environmental, safety and compliance management requirements;
Execution Level divisions and relevant ? Carrying out energy conservation, emission reduction and energy management;
departments of subsidiaries ? Assisting in ESG data collection, calculation and disclosure;
? Promoting employee development, supply chain management and compliant operations;
? Supporting sustainability-related audits, ratings and client assessments.
During the reporting period, the Strategy and Sustainability Committee convened 5 meetings and reviewed 16 proposals,
including the annual sustainability report, and submitted the aforementioned proposals to the Board of Directors or the
Shareholders' Meeting for deliberation.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Stakeholder Engagement
Dajin Heavy Industry has continuously improved
its stakeholder identification and communication Stakeholder Category Communication Channels
mechanism, established diversified and regular
communication channels, maintained high-frequency
interactions with various stakeholder groups, and
Business cooperation, factory audits, on-site visits, customer service hotlines, customer satisfaction surveys,
timely addressed and responded to their concerns and Domestic and Overseas Clients
customer meetings, correspondence emails, official website and other online platforms, etc.
expectations.
Based on our business model, global layout and priority
sustainability issues, the Company systematically Shareholders and Potential Stock exchange and company official website, interactive investor platforms, telephone and email, company
identifies and dynamically manages its stakeholder Investors announcements, shareholders' meetings, analyst strategy meetings, performance briefings, on-site visits, etc.
groups, and integrates communication outcomes into
corporate strategy formulation, risk management and
operational decisions, so as to continuously enhance Government and Regulatory Meetings with government and regulatory authorities, cooperation on training programs, information
governance capabilities and long-term value creation. Authorities disclosure, official document correspondence, policy consultation, etc.
The Company’s key stakeholders include government
and regulatory authorities, domestic and international
Directors and Senior Shareholders' meetings, meetings of the Board of Directors and its special committees, exclusive meetings of
clients, shareholders and potential investors, employees,
Management independent directors, etc.
suppliers and contractors, financial institutions,
communities and the public, industry associations and
media.
Staff representative assemblies, employee suggestion boxes, employee satisfaction surveys, employee
Employees
The Company conducts regular and ad-hoc exchanges activities, employee training, etc.
through multiple communication channels to ensure
information transparency and two-way feedback.
Business cooperation communication, supplier evaluation and audit, training and exchange meetings, on-site
Suppliers and Contractors
visits, contract negotiations, communication via supply chain management systems, etc.
Partners and Research
Technical cooperation meetings, project collaboration, industry seminars, technical exchanges, etc.
Institutions
Communities and the Public Community service activities, company official website and other online platforms, etc.
Media and Industry On-site industry exchange meetings, online industry seminars, cooperation correspondence emails, telephone
Associations communication, press releases, company announcements, media interviews, etc.
Rating and Audit Institutions ESG rating communication, audits and verifications, support for information disclosure, etc.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Double Materiality Assessment
Dajin Heavy Industry regards materiality assessment as a key foundation for sustainability management. In 2025, the Company conducted its
first systematic assessment in accordance with the double materiality principle, with reference to the relevant requirements of the Shenzhen
Stock Exchange’s Self-Regulatory Guidelines for Listed Companies No. 17 – Sustainable Development Report (for Trial Implementation)
and Self-Regulatory Guidelines for Listed Companies No. 3 – Preparation of Sustainable Development Reports.
The Company identified a long list of topics through internal and external stakeholder surveys, conducted quantitative analysis from the two
dimensions of financial materiality and impact materiality, and finally formed a double materiality matrix, providing a decision-making basis
for annual actions and strategy integration.
Main Process of Dajin Heavy Industry's Double Materiality Assessment
Identification of Context and Topics Impact Materiality Assessment Financial Materiality Assessment Dual Materiality Matrix
Combined with regulatory requirements, capital market Combining on-site interviews and Focusing on the risks and opportunities Based on the two sets of evaluation
concerns, domestic and international peer benchmarking, questionnaire surveys, internal and contained in each topic, we adopt scores for impact materiality and financial
and analysis of the Company’s business activities, a external stakeholders are invited to the mechanism of on-site interviews materiality, the topics are positioned in
comprehensive understanding of internal and external systematically score and assess the and management meetings, invite the dual materiality matrix to obtain the
stakeholder expectations is obtained. Sustainable actual and potential positive and stakeholders to quantitatively score the distribution of topic importance.
development topics material to the Company and its negative impacts involved in each short-term, medium-term and long-term
stakeholders under the current business environment are topic. Combined with the factors of impacts of the topics on the Company's
identified to form a long list of topics. impact possibility, the priority judgment business model, financial status, operating
of the impact materiality dimension is results and financing capacity, and assess
The Company’s existing businesses and services do not
obtained. the possibility of their occurrence. After
involve the topic of “technology ethics”. At the end of
the scoring results are calculated, the
the reporting period, the balance of accounts payable
priority judgment of the topics in the
(including notes payable) did not exceed 30 billion yuan
financial materiality dimension is formed.
and accounted for less than 50% of total assets; therefore,
the topic of “equal treatment of small and medium-sized
enterprises” is not applicable.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Double Materiality Matrix of Material Topics of Dajin Heavy Industry in 2025
High
No. Topics Level of Materiality
The importance of Dajin Heavy Industry's impacts on ESG
Low
Financial Materiality of Dajin Heavy Industry
Low High
Environmental Social Governance
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
The double materiality assessment has identified five topics of financial materiality. For these topics, we have
systematically organized elements including governance, strategy, impacts, risk and opportunity management,
as well as indicators and targets.
Time Dimension Current Financial Indicators and
Topic Impact Description Value Chain Scope
Short-term Medium-term Long-term Impact Targets
As a global manufacturer of wind power and offshore
See Section 2.1
engineering equipment, product quality is directly related
Own Operations, Product Quality
Product Service and to the long-term operational safety and power generation
Downstream of the Costs, Revenue and Safety and the
Quality efficiency of wind farms, and is the core cornerstone for the
Value Chain Key Performance
Company to win the trust of international customers and
Indicators Table
maintain its industrial competitiveness.
Raw materials account for the main part of the product
See Special Topic 2:
carbon footprint, and the Company is facing regulatory
Upstream Value Reshaping Responsible
Sustainable Supply constraints such as the EU Carbon Border Adjustment
Chain, Own Costs Procurement, Forging
Chain Management Mechanism (CBAM). Building a green and transparent supply
Operations a Sustainable Value
chain is a key guarantee for the Company to meet overseas
Chain
market access requirements and reduce compliance risks.
The global energy transition not only drives the growth of
Upstream of See Section 1.1
the Company's offshore wind power business, but also puts
the value chain, Addressing Climate
Addressing Climate forward higher requirements for the operational resilience of
own operations, Costs, Revenue Change and the
Change coastal production facilities. Climate factors are incorporated
downstream of the Key Performance
into the strategy, and the Company seizes opportunities and
value chain Indicators Table
prevents risks.
Forward-looking layout of new energy and other clean Own operations, See Section 1.2
Clean Technology
technologies is an important support for the Company to downstream of the Costs, Revenue Green Operations
Opportunities
seize the initiative in future market competition. value chain Chapter
Upstream of See Section 2.2
Ensuring the occupational health and safety of employees
the value chain, Safety and Efficient
and subcontractors is the basic premise for maintaining
Health and Safety own operations, Costs Production and the
stable operations and meeting the audit requirements of
downstream of the Key Performance
international clients.
value chain Indicators Table
Special Topics
? Special Topic 1: Green shipping undergoes
further upgrades, leveraging autonomous
shipping capabilities to establish a new
global delivery advantage
? Special Topic 2: Reshaping Responsible
Procurement and Forging a Sustainable
Value Chain
Contribution to the SDGs
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
SPECIAL TOPIC 1
Green shipping undergoes further upgrades, leveraging autonomous
shipping capabilities to establish a new global delivery advantage
Currently, the global energy transition has entered a critical deep-water The entire chain of ocean-going special transportation is independently controllable
stage. As the core engine of this transition, the offshore wind energy industry
is currently experiencing a crucial period of scale expansion and potential
release. According to the statistics of the Wind Energy Council, by the end of
it is expected to rise to 410GW by 2035. Although the market scale is huge,
behind the rapid expansion of the industry, problems such as insufficient Equipment Consolidation of Cargos Berthing at The
Loading Transportation Unloading
transportation capacity and low operational efficiency, etc. have become Manufacturing Facility at Port of Shipment Destination Port
increasingly prominent, and have become the core bottleneck restricting the
acceleration of the development of the wind power industry.
Dajin Heavy Industry is a leading enterprise in the global field of wind power
foundation equipment manufacturing. It has been deeply engaged in the
wind power industry for nearly two decades and has successfully completed
Ship Manufacturing Facility Special Cargo Ocean Transportation
strategic upgrades from onshore wind power steel structures to offshore
wind power foundations, and from equipment manufacturing to destination Self-owned
Marine engineering-related Cargos Transport planning, cargo loading,
port delivery services. In 2025, the Company further clarified its development shipbuilding Facility technical support, project management,
positioning of “Moving from the blue ocean to the deep blue ocean, and extended services, etc
Offshore transport vessels & Offshore
transforming from an equipment supplier to a system service provider”,
installation vessels Rich experience in the cross-ocean
dedicated to solving industry development bottlenecks, accelerating the transportation of large-scale offshore
commercialization process of the deep-sea wind power foundation industry, engineering equipment
and helping global sustainable energy development to expand further into the Full-chain Independent
deep blue ocean. Control
The Company has established a complete process service system covering
all aspects such as ship construction, ship design, transportation planning,
loading and unloading schemes, etc., by acquiring shipbuilding Facilities, Self-owned Self-owned
Factories Vessels
establishing a ship research and design institute, independently developing
Ship Research Institute Self-owned SPMT Team
special ship types, purchasing roll-on/roll-off SPMT vehicles, and forming
a professional shipping team. This has enabled the realization of the "Self-
Independent R&D: Special vessel type Purchase SPMT equipment, establish SPMT
owned Cargos+ Self-owned Vessels + Self-owned Factories + Self-owned tailored specifically for the transportation team, be able to meet the requirements of wind
Ports" DAP delivery model. This model not only provides a full-process characteristics of carrying wind power & power foundation roll-on/roll-off transportation,
logistics guarantee for project delivery, effectively controls logistics costs, but offshore engineering equipment and be adaptable to different vessels and
also significantly enhances product value and project core competitiveness. operation sites
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Comprehensive planning of shipping industry
In the context of the global energy structure accelerating its transition towards
cleaner and lower-carbon forms, offshore wind power, as an important pillar of
renewable energy, is experiencing unprecedented development opportunities.
Since 2023, Dajin Heavy Industry has been proactively planning for the shipping
sector, focusing on overseas markets and concentrating on offshore wind power
products. The Company has launched the "New Off-shore & Overseas " strategy,
aiming to complete the strategic transformation from "equipment supplier" to
"system service provider". Meanwhile, Dajin Heavy Industry is well aware of the
pain points of the traditional FOB (Free on Board, i.e. "delivery on board the vessel
at the port of loading") model, such as high costs, uncontrollable transportation
capacity and difficulties in controlling carbon emissions. Therefore, the Company
has decisively implemented the cross-border shipbuilding strategy, and completed
the integration of Panjin Shipyard in 2023. As the shipping sector operation
becomes increasingly mature, the Company officially innovatively launched
the DAP (Delivered At Place) one-stop delivery model in 2024, incorporating
the entire chain of product manufacturing, loading at port of loading, ocean
transportation, unloading at port of discharge and etc. into the service system.
In 2025, the Company's representative deck barge M/V KING ONE successfully
launched, marking a milestone breakthrough. Thus, the dual-drive model of
"Ocean-going Specialized Transportation + Ship Design and Construction" has The “New Off-shore & Overseas”
begun to take shape. This new business model is a bold breakthrough in the field Strategic Depth, and Service
of offshore wind power equipment, without minor innovations, directly addressing Transformation of “DAP”
the core cost and efficiency pain points of the industry, opening up a new space
through differentiated paths and leading the industry upgrade direction.
Dual-wheel drive model of “Ocean-going Specialized Transportation + Ship Design and Construction”, helping to form unique
competitive advantages and new growth curves
The self-built special transportation fleet is not subject to the capacity The independently designed ship type better meets the transportation
Ship Design and
and schedule restrictions of the external shipping market. The Company Ocean-going requirements for core components such as large-scale wind power monopile
Construction
can independently arrange transportation plans to ensure the timeliness Transportation foundation and towers.
of delivery, reduce the transportation costs, provide customers with higher Industrial Chain
Door to Door Undertaking external shipbuilding orders will also become a new source of
added value, and create a larger profit margin. Expansion
performance growth for the Company.
The entire process will be handled by Dajin
Construction Loading Transportation Installation Delivery
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Innovative ship design, escorted by authoritative certification
Dajin Heavy Industry has demonstrated outstanding independent R&D and system integration capabilities in the field of offshore engineering
special vessels. Leveraging its 20-year accumulation in offshore wind power engineering, the Company has launched the layout of serialized
and specialized vessel types:
KING Series Large Deck Barge: Length 240 meters, Width 51 meters, Deck area 12,000 Emperor Series Large Deck Barge: This is a self-transcendence of Dajin based on the KING Series vessel. It is the
square meters, Maximum load capacity 40,000 tons. It adopts a dual-engine & dual-propeller largest deck barge with the largest deck area in the world, and its transportation capacity has been further enhanced.
propulsion system, with a maximum speed of 13 knots and a cruising range exceeding 16,000 The ship has a breadth of 61 meters, a deck cargo area of 135,000 square meters, and a maximum load capacity of
nautical miles. It can comfortably meet the needs of the global long-distance navigation and is 60,000 tons. It is suitable for transporting super-large equipment such as floating foundations and oil & gas modules.
perfectly suitable for the special transportation scenarios of large-scale engineering equipment Except the semi-submersible function, all the other configurations are benchmarked against semi-submersible
of offshore wind power and oil & gas. vessels, making it the optimal vessel type for cross-ocean transportation within the industry.
? Extra-large deck ? World’s largest deck area
? Specially designed for large-scale offshore 239.8 m Overall Length 245 m ? Suitable for transporting oversized equipment, such
equipment as floating foundations and oil & gas modules
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Adopting the low-carbon path
Response Strategies Descriptions
Facing the low-carbon regulatory requirements in the global market, especially
in the European market, Dajin Heavy Industry has proactively benchmarked
against the FuelEU Maritime regulations and the relevant provisions of the Enhance transportation efficiency and reduce energy consumption by designing larger decks,
Low-carbon Design
EU Emissions Trading System (EU ETS) , and has made early preparations for adopting advanced hull shape designs, and adding vortex-dissipating fins, etc.
low-carbon shipping solutions. The Company is also closely monitoring the
adoption and implementation progress of the International Maritime Organization
Optimize the routes for each vessel based on vessel type, loading capacity, voyage duration, speed,
(IMO)'s Net-Zero Framework. The Company has established a shipping ESG Optimize Routes
and fuel consumption.
team to study green & low-carbon shipping policies and regulations, risks and
opportunities, response methods and internal implementation paths, and has also
conducted scenario analyses for different implementation paths and calculated
the inputs and returns under different scenarios. Regarding the most critical fuel
Economic Speed Require the vessels to sail at the economic speed as much as possible.
usage factors affecting green shipping, Dajin Heavy Industry has initially explored
the optimal proportion scheme for the use of clean and compliant fuels and will
Remove marine organisms from the bottom of the leased vessels to maintain the sailing speed and
further optimize and explore the solutions that are suitable for Dajin’s actual Reduce Resistance
reduce energy consumption.
situation.
In addition, Dajin Heavy Industry is also actively exploring other paths for green & By adding outrigger supports, the cargo carrying capacity of the vessel can be increased, while the
low-carbon shipping. The Company is promoting low-carbon response strategies
Install Outrigger
number of voyages can be reduced under the same total cargo volume, thereby decreasing the
at multiple stages such as ship design, product loading and unloading and route
Supports
emission of greenhouse gases.
operation, seizing every opportunity to help the Company reduce its overall
carbon emissions and achieve its scientific carbon targets. For information on Connect to Shore
carbon reduction during the manufacturing process, please refer to Section 1.2 After the vessels dock, they connect to shore power, achieving less emissions during port operations.
Power for Charging
Green Operations of the Environmental Chapter in this report.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Guarantee the quality of shipping
The Company has always placed the quality of maritime services and
Case Study
safety compliance at the core. All its own and partner-operated vessels
strictly adhere to the norms of the International Maritime Organization
(IMO) to ensure that the design, construction and maintenance of the
Training on Safety and Standards for Loading and Unloading Operations
vessels meet the supervision requirements of the major port-states in
the world.
The shipping loading and unloading operations involve cross-departmental collaboration among multiple entities. The standardization
Before each voyage departs, a standardized three-level pre-voyage of the operation process, the safety of the on-site environment, and the smoothness of team collaboration are directly related to the
joint inspection regime is continuously implemented: the ship quality of shipping services, operation efficiency, and personnel safety. In order to clarify the standardized operation procedures for
management team and a third-party marine warranty surveyor jointly loading and unloading, and to strengthen the awareness of implementing the health, safety, and environment (HSE) management
conduct a comprehensive inspection of the ship's structure, securing system for all personnel, training for relevant personnel were conducted before each loading and unloading operation in 2025. Each
systems, deck strength, loading and unloading balance, navigation and training session lasted for no less than one hour.
communication equipment, and emergency facilities, to ensure that the
vessel's dispatch meets the quality and safety compliance requirements. The training achieved "zero-distance between training scenarios and operation scenarios" and began with the triple confirmation work
of “equipment, environment and personnel” in a pre-positioned manner. It was guaranteed by entering into concentrated lectures and
In addition, the Company is also committed to enhancing the practical drills. Combined with past typical operation scenarios, through simulation operations and role-playing, it strengthened the
knowledge and skills of its employees through systematic and scientific team collaboration process of multiple positions such as "operation supervision position", "risk reminder position" and "collaboration
training, in order to ensure the quality and safety of shipping. The connection position", ensuring that each trainee mastered the key points of collaboration.
Company has established a comprehensive and multi-dimensional
training system for employees in various aspects such as ship design In 2025, no safety accidents occurred during loading and unloading operations due to improper wearing of labor protection equipment,
capabilities, onshore operation capabilities, and shipping operation improper setting of warning lines, or equipment malfunctions, etc. The annual accident rate was zero, and the average duration of each
capabilities. The Company regards personnel capability building as the loading and unloading operation was reduced, while the operational efficiency was significantly improved.
core support for shipping service quality.
During the reporting period, Dajin Heavy Industry
had not experienced any major accidents in
ocean shipping.
On-site diagram of safety and standard training for loading and unloading operations
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
SPECIAL TOPIC 2
Reshaping Responsible Procurement and Forging a Sustainable Value Chain
As a global provider of offshore wind foundation structures and tower solutions, Dajin Heavy Industry regards Against the backdrop of the green transition in the global offshore wind supply chain, the Company focuses
its supply chain as a critical foundation for achieving its sustainability goals and ensuring compliance across on green steel application, low-carbon emission manufacturing, and supply chain compliance to promote
its global operations. Guided by the principles of responsibility, compliance, low-carbon emission, and collaborative decarbonization and responsible management across upstream and downstream partners.
collaboration, the Company has established a sustainable supply chain management system covering the entire Through these efforts, Dajin is progressively building a supply chain governance system aligned with the
supplier lifecycle. ESG requirements are comprehensively integrated into every stage of supplier management, expectations of high-end overseas markets.
including onboarding, evaluation, cooperation, and exit, thereby continuously enhancing the overall resilience
and sustainable competitiveness of the value chain.
I Sustainable Supply Chain II Supplier Lifecycle Management
Governance Structure and Strategy The Company has established a full-lifecycle supplier management system covering supplier pre-qualification, evaluation, cooperation,
The Company has established a sustainable supply chain management monitoring, improvement, and elimination, ensuring that supply chain management is standardized and transparent. Supported by systematic
structure led by the Sustainable Procurement Committee, coordinated policy documents and standardized operational procedures, the Company maintains clear roles and responsibilities as well as orderly
by the Sustainable Development Department, and executed by the implementation across all stages. ESG factors have been fully integrated into this system and have become a standard consideration in
procurement and business departments. In 2025, the Company officially supplier management.
established a dedicated Sustainable Procurement Committee and clarified
a cross-functional coordination mechanism to oversee the following areas: 1. Pre-qualification Management
formulation of supply chain ESG Management policies, identification and
assessment of supply chain risks, promotion of green steel and low-carbon
emission materials, supplier compliance and performance management, 1.1 The Company implements a stringent supplier pre-qualification
and supply chain carbon data management. review mechanism, adopting a dual assessment approach that ? ESG-related policy and management documents
At the same time, the Company issued its Sustainable Procurement Policy ,
combines document review with on-site assessment to ensure that ? Declaration of Non-Use of Conflict Minerals
suppliers meet the Company’s requirements in terms of quality,
committing to incorporate environmental, social, and governance factors ? Human Rights Agreement
environment, health and safety, and social responsibility.
into procurement decisions, prioritize responsible suppliers, promote the ? Green Supply Chain Self-Assessment Form
low-carbon emission transition of the supply chain, and reduce the impact 1.2 During the supplier pre-qualification stage, the Company focuses
of procurement activities on the climate and local communities. on reviewing the following:
Against the backdrop of the Company’s “New Overseas & Offshore ? Business license and production qualifications mandatory review dimension for supplier pre-qualification.
Through the Supplier ESG Assessment Form , suppliers are
Strategy” and ongoing expansion into overseas markets, the Company ? Quality management system (ISO 9001)
continues to strengthen the international compliance capabilities of its evaluated across three dimensions—environmental, social, and
supply chain in order to support business development in high-standard
? Environmental management system (ISO 14001) corporate governance—to ensure that new partners meet the
markets such as Europe. ? Occupational health and safety management system (ISO 45001) Company’s sustainability standards.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
suppliers, annual routine audits, and on-site audits for key suppliers. stability, delivery reliability, and supply chain compliance, Dajin Heavy Industry has established a supplier
tiered management mechanism based on quality and delivery performance, with ESG performance serving
as an important evaluation dimension. Suppliers are classified into four categories—A, B, C, and D—and
enhanced review measures applied to core suppliers. Key areas of focus include environmental compliance
differentiated procurement and cooperation strategies are applied according to their respective ratings. The
records, labor and social insurance practices, business ethics, and ESG management systems.
tiered assessment is conducted across multiple dimensions, including product quality, technical capability,
Facility conducted dynamic monitoring of the environmental performance of Class A core suppliers1,
regularly reviewing their emissions and compliance information and incorporating the results into annual
performance evaluations.
In 2025, the Company continued to optimize its supplier tiered management mechanism, with a
focus on strengthening the dynamic tracking of quality and sustainability performance:
timely feedback and closed-loop follow-up on critical quality issues;
the Company conducts dynamic performance assessments of suppliers. Assessment dimensions include enable quality tracking and accountability tracing throughout the entire process, from
product quality, delivery capability, service responsiveness, ESG performance, and compliance status. incoming material inspection and production use to project delivery;
increasing the weighting of sustainability performance.
Company carried out targeted enhancement actions for suppliers with quality issues. At the same time, it
continued to improve the overall quality level of the supply chain through measures such as pre-tender
technical and quality briefings and the compilation of common errors in outsourced auxiliary materials and
components.
For suppliers whose performance requires improvement, the Company adopts a management approach that
on-site communication, and guidance on corrective action plans, the Company helps suppliers strengthen their
quality management and ESG compliance capabilities, thereby continuously enhancing the overall sustainability
The Company has established a clear supplier elimination mechanism for suppliers with material compliance performance of the supply chain.
or ESG-related risks. Where a supplier is found to have serious quality issues, environmental violations,
integrity breaches, human rights violations, refusal to implement corrective actions, or other comparable
circumstances, the Company will freeze the supplier in the Yicaitong system and initiate the elimination
process, thereby terminating the business relationship.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
IV. Supply Chain Audit and Compliance Management
As a manufacturer of offshore wind foundation structures and tower equipment, Dajin Heavy Industry’s supply
chain involves a wide range of critical materials and services, including steel plate, flanges, offshore engineering In terms of supplier management, in accordance with the Control Procedure for Sustainable
supporting components, and specialized services. Given its long business chain, extended project cycles, and Procurement Supplier Management , the Company has established an audit mechanism covering
stringent overseas compliance requirements, the Company continues to strengthen its supply chain audit the entire supplier lifecycle, from pre-qualification and cooperation to elimination
and compliance management mechanisms in order to ensure that procurement activities are standardized
and transparent and that supply chain operations remain stable and controllable. The Company exercises ? conducting pre-award reviews for first-time suppliers, with a focus on their quality systems,
systematic oversight over procurement processes and full-lifecycle supplier management. environmental and safety management, compliance records, and sustainability performance;
In 2025, the Company systematically carried out supply chain audits and internal control reviews, with a
? carrying out annual routine reviews and on-site visits for existing suppliers, with particular
attention to production governance, delivery capability, environmental compliance, and labor
particular focus on two key areas: procurement process management and full-lifecycle supplier management. management;
Led by the Internal Control Office of the Procurement Management Department, cross-functional teams
conducted mutual reviews across departments. The reviews covered key aspects such as procurement pricing ? implementing enhanced reviews and dynamic tracking for core and high-risk suppliers to
ensure that issues can be identified, rectified, and traced.
mechanisms, tendering and quotation comparison procedures, contract execution and performance fulfillment,
supplier onboarding and full-lifecycle management, customs affairs, and terminal logistics management. Spot
checks and verification were conducted on tender acknowledgements, quotation documents, procurement
contracts, supplier qualifications, and contract performance records. Through these efforts, the Company By combining institutionalized audits with dynamic supervision, the Company continues to strengthen
promptly identified operational risks and management weaknesses, continuously optimized procurement its supply chain compliance management and risk prevention capabilities, providing a solid supply chain
processes and internal control mechanisms, and ensured that procurement activities were lawful, compliant, safeguard for overseas project delivery and global business expansion.
transparent, and efficient.
V. Development of the Sustainable Supply Chain
Management System
As an equipment manufacturer with a strong presence in the global offshore wind market, Dajin Heavy Industry
At the system-building level, with ISO 20400:2017 Sustainable Procurement—Guidance as the framework
places great importance on the critical role of the supply chain in its sustainability strategy. Benchmarking
and taking into account the characteristics of the offshore wind industry, the Company has developed a
against international best practices in sustainable procurement, and in line with the Ten Principles of
full-process institutional system covering procurement planning, supplier pre-qualification, performance
the United Nations Global Compact, GB/T 41835-2022 Guidelines for Sustainable Procurement, ISO
evaluation, risk management, and continuous improvement. Centered on the Sustainable Procurement
Management Manual , this system is supported by multiple management procedures and operational
standards, the Company has established a sustainable supply chain management system with sound policies,
guidelines, providing systematic support for sustainable procurement practices.
clear responsibilities, and standardized operations. ESG requirements are systematically embedded throughout
the entire procurement decision-making and supplier management process. Through the continuous optimization of its management system and implementation mechanisms, the
Company has steadily enhanced supply chain transparency and resilience, providing institutional safeguards
In March 2025, the Company officially established the Sustainable Procurement Special Committee, clarifying
and management support for project delivery in high-standard overseas markets and for the achievement of
its overall coordinating responsibilities for supply chain ESG management. At the same time, the Company
its low-carbon emission transition goals.
issued the Job Responsibilities Description for the Sustainable Procurement Committee , further defining
the organizational structure and division of responsibilities, strengthening cross-functional coordination
mechanisms, and ensuring that sustainable procurement efforts remain aligned with the Company’s overall
development strategy.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Case Study
Sustainable Procurement Special Committee
The Sustainable Procurement Special Committee is one of the management- procurement efficiency and supply assurance capabilities, and
level specialized committees established under the Company’s Strategy supports the on-time delivery of major projects.
and Sustainability Committee. It serves as the overall coordination body
In the area of sustainability, the Committee is responsible for
for the Company’s sustainable supply chain management, with the
promoting the implementation of ESG requirements throughout
Sustainable Development Department providing day-to-day organizational
the supply chain. Its work includes communicating the Company’s
and implementation support. At the management level, the Committee is
sustainable procurement policy and ESG management requirements
responsible for advancing the implementation of sustainable procurement
to suppliers; promoting the green and low-carbon emission transition
policies, strengthening supply chain ESG risk control, and improving supplier
of key raw material suppliers and core supporting suppliers;
performance. Relevant work is reported regularly to the Strategy and
organizing supplier ESG training and capacity-building activities;
Sustainability Committee and is subject to the oversight and guidance of
guiding suppliers in carbon emissions data collection and compliance
the Board of Directors.
management; and coordinating supply chain risk identification and
The Committee’s work is coordinated and managed by the General Manager corrective action mechanisms. In 2025, under the overall coordination
of the Procurement Management Center. Through the establishment of of the Sustainable Procurement Committee, the Company further
annual work reviews and phased evaluation mechanisms, the Committee improved its supplier sustainability performance evaluation system
summarizes execution progress on key sustainable procurement tasks, by incorporating environmental, social, and governance indicators
supplier performance outcomes, and the effectiveness of risk control into the comprehensive supplier assessment framework and
measures, while promoting continuous improvement. Based on the gradually expanding its coverage. As a result, sustainability evaluation
Kick-off Meeting of the Sustainable
characteristics of the Company’s offshore wind equipment business, the management has already been applied to more than 80% of core
Procurement Committee
Committee coordinates procurement planning and supply chain resource suppliers, providing strong support for the Company’s overseas
allocation, advances procurement plan management and assessment of project compliance, low-carbon emission transition, and long-term
the timing for key material purchases, continuously optimizes procurement supply chain resilience.
processes and cross-functional coordination mechanisms, improves
In 2025, Dajin Heavy Industry was awarded the ISO 20400 Statement of Conformity for Sustainable Procurement by the British Standards
Institution (BSI), marking the Company’s alignment with international best practices in areas such as sustainable procurement policy
formulation, supplier management, risk identification, and continuous improvement. This recognition demonstrates that the standardization
and effectiveness of the Company’s management system have been acknowledged by an internationally authoritative third party.
In the same year, the Company was awarded the EcoVadis Silver Medal, reflecting its continued improvement in overall performance across
environmental management, labor and human rights, business ethics, and sustainable procurement. These certifications and rating results
not only strengthened the Company’s collaborative capabilities with international customers in the field of sustainable supply chains, but ISO 20400 Statement
also provided strong support for its overseas market expansion and the deepening of green supply chain cooperation. of Conformity
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Case Study
Special Training on the Green Supply Chain Management Measures
To promote the effective implementation of its sustainable procurement management system in day-to-day operations, Dajin Heavy Industry has continued
to strengthen the professional capabilities of its procurement and related business teams. In 2025, the Company organized a special training session on
the Green Supply Chain Management Measures for the Procurement Management Center and relevant functional departments, providing systematic
explanations and case sharing on topics including the Company’s sustainable procurement policy, supplier ESG management requirements, green material
application, and supply chain compliance risk control.
The training was designed in close connection with the characteristics of the offshore wind equipment manufacturing industry. Focusing on practical
business scenarios such as green steel application, the low-carbon emission transition of key raw materials, supplier environmental and compliance
management, and the integration of ESG considerations throughout the procurement process, the program helped employees deepen their understanding
of green supply chain concepts and related policy requirements, while enhancing their ability to apply these principles in procurement planning, supplier
evaluation, and day-to-day management.
By combining thematic training with practical business needs, the Company further strengthened the internal communication and implementation of
green procurement principles. It has encouraged procurement personnel to consider environmental and social responsibility factors more systematically in
supplier selection, performance evaluation, and cooperation management, thereby gradually fostering a positive working culture of broad participation and
coordinated advancement in sustainable supply chain development, and providing strong support for the Company’s low-carbon emission transition and
global business compliance.
VI. Supply Chain ESG Risk and Opportunity Management
In accordance with the Control Procedure for Sustainable Procurement Risk and Opportunity Management , and integrity management, and human rights and labor protection. In response to different types of risks, the
the Company has established a supply chain ESG risk and opportunity management mechanism covering the Company formulated targeted control measures, including strengthening supplier pre-qualification reviews,
entire procurement process, incorporating risk identification and opportunity assessment into its sustainable improving contractual clauses, conducting dedicated training and on-site audits, and promoting supplier
supply chain management system and day-to-day procurement decision-making. corrective actions and performance improvement.
The Company conducts systematic assessments of its supply chain across three dimensions—environmental, While strengthening risk control, the Company also pays close attention to the development opportunities
social, and governance—with a particular focus on key issues such as climate change and carbon emissions arising from the green transition and compliance upgrading of the supply chain. With the implementation of the
management, labor and human rights protection, business ethics and anti-corruption, compliance and export EU Carbon Border Adjustment Mechanism (CBAM) and growing international customer demand for low-carbon
control risks, fair business practices, and supply chain governance capabilities. Through a combination of emission materials, the Company has strengthened communication and collaboration with core raw material
annual risk identification and dynamic monitoring, the Company classifies and manages various potential suppliers, advanced carbon data management and the application of low-carbon emission technologies,
risks, while continuously refining its risk assessment indicators and management measures in light of overseas and continuously enhanced the supply chain’s low-carbon emission competitiveness and adaptability to
project requirements and key areas of focus in international customer audits. international markets. By managing both risks and opportunities in a balanced manner, the Company continues
to improve supply chain resilience and sustainability performance, providing strong support for overseas
For risk classification, the Company adopts a three-tier assessment approach of high, medium, and low,
business expansion and long-term value creation.
making comprehensive judgments based on factors such as the likelihood of occurrence, degree of impact,
and level of controllability. Priority control measures are applied to identified material issues. In 2025, the
Company identified eight high-risk issues, including climate change mitigation and adaptation, anti-corruption
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
VII. Supply Chain Human Rights Management
Dajin Heavy Industry attaches great importance to human rights protection within its supply chain and regards In the area of conflict minerals management, the Company follows the OECD Due Diligence Guidance for
it as a key cornerstone of sustainable supply chain management. In accordance with institutional documents Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and conducts risk screening
such as the Code of Conduct for Business Partners, the Human Rights Agreement, and the “Ten ESG Red Lines ”, across supply chains involving key materials such as tin. For suppliers potentially exposed to higher risks,
the Company explicitly requires suppliers to comply with internationally recognized human rights and labor the Company requires the signing of a Self-Declaration on Non-Use of Conflict Minerals and, through a
standards, and strictly prohibits the use of child labor, forced labor, any form of employment discrimination, combination of on-site audits and document verification, confirms that raw material sources do not involve
harassment, or any other practices that infringe upon the legitimate rights and interests of employees. areas affected by armed conflict or serious human rights risks.
In terms of implementation, the Company has embedded human rights clauses into supplier pre-qualification, During the reporting period, the signing rate of the Code of Conduct for Business Partners reached 100%, and
contract signing, and annual evaluation processes, and has incorporated labor compliance as an important all newly added and renewed suppliers completed the relevant human rights and compliance commitments.
assessment criterion in supplier tiered management. In 2025, the Company systematically carried out supplier The signing rate of commitment letters for suppliers potentially involving conflict minerals risks also reached
human rights risk identification and due diligence covering three categories of core suppliers, with a focus on 100%. By combining institutional requirements with ongoing supervision, the Company continues to strengthen
labor compliance, social insurance contributions, working hours management, and occupational health and human rights management across its supply chain and safeguard the responsible and compliant operation of
safety protection. For any potential risks identified, the Company required corrective actions and followed up its value chain.
on their implementation.
VIII. Supply Chain Business Ethics
Dajin Heavy Industry adheres to lawful and compliant operations and integrates the principles of integrity During the reporting period, the signing rate of the Integrity Cooperation and Compliance Agreement
and fair competition throughout the entire supply chain management process, while continuously improving reached 100% for all newly added and renewed suppliers. The Company also sent the Code of Conduct for
its supplier business ethics management system. Through institutional documents such as the Integrity Business Partners by email to 19 Class A suppliers, all of whom completed internal communication and training
Cooperation and Compliance Agreement and the Code of Conduct for Business Partners , the Company on the Code and returned acknowledgements. By combining institutional requirements, process controls, and
clearly sets out requirements relating to anti-bribery, anti-corruption, anti-unfair competition, and conflict supervision mechanisms, the Company continues to strengthen business ethics management across its supply
of interest management. Business ethics clauses are incorporated into supplier pre-qualification reviews and chain and foster a fair, transparent, and healthy cooperation environment.
contract management processes to ensure that business interactions with partners are conducted within a
compliant framework.
In 2025, the Company continued to advance the “Source-Sealing Initiative”, a dedicated program for supply
chain integrity management. Under this initiative, integrity supervision mechanisms were embedded into
key stages such as supplier pre-qualification assessment, on-site inspections, commercial negotiations,
and contract signing. By combining institutional requirements with process controls, the Company further
strengthened risk prevention and control at the source. For suppliers found to have engaged in integrity
violations, the Company strictly implements disciplinary measures in accordance with contractual terms and
internal policies, including suspension of cooperation, contract termination, and legal accountability where
applicable, so as to ensure transparent and standardized supply chain operations.
With respect to supervision and feedback mechanisms, the Company has established accessible channels
for reporting integrity-related concerns, including a telephone hotline, email address, and official website
reporting platform, and has implemented a Whistleblower Reward Policy to ensure that employees, suppliers,
and other stakeholders may submit reports of misconduct anonymously. The Company treats all reported
information with strict confidentiality and investigates and handles such cases in accordance with the law,
thereby safeguarding the legitimate rights and interests of whistleblowers.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
IX. Supply Chain Decarbonization and X. Sustainable Supply Chain Performance Targets and Management
Green Steel Collaboration
To ensure the effective implementation of sustainable supply chain management requirements, Dajin Heavy Industry has translated
key supply chain ESG risks and management priorities into annual performance targets that are measurable, trackable, and assessable.
Against the backdrop of the accelerating global energy transition and increasingly
Focusing on core topics such as human rights and labor, environmental compliance, business ethics, and fair operations, the Company
stringent low-carbon emission market access requirements in Europe, Dajin Heavy
has established a closed-loop management mechanism covering target setting, implementation tracking, and outcome evaluation,
Industry regards supply chain decarbonization and green steel collaboration
thereby ensuring that all control measures have clear direction, defined implementation pathways, and performance feedback.
as a strategic priority for enhancing its international competitiveness. The
implementation of the EU Carbon Border Adjustment Mechanism (CBAM),
together with overseas customers’ growing requirements for low-emission steel
(“green steel”) and product carbon footprint transparency, has further driven the 2025 Sustainable Supply Chain Performance Targets and Performance
Company to accelerate the low-carbon transition of its supply chain.
In 2025, the Company carried out systematic preparatory work for CBAM
compliance, including dedicated policy research and internal training. It Topic Management Target 2025 Performance
conducted in-depth analysis of the emissions accounting logic applicable to the
Company’s products and precursor materials, and clarified supply chain data
management requirements. On this basis, the Company focused on collecting Zero incidents of child labor, forced labor,
No such violations occurred
and internally verifying carbon emissions data from suppliers of key raw materials discrimination, or other related violations
such as steel plates and flanges, established a dynamic supplier carbon emissions
data registry, and progressively improved its carbon intensity database for key
materials, thereby providing data support for future carbon cost calculations and
Human Rights
CBAM cost risk management in cross-border procurement. 100% signing rate of the Supplier Code of Conduct Achieved
and Compliance
At the same time, in alignment with its green steel strategy, the Company
maintained frequent communication and on-site engagement with core steel
mill suppliers, conducting technical exchanges on topics such as production
process routes, energy structure optimization, the proportion of renewable 90% supplier training coverage Supplier training coverage reached 100%
electricity used, and methodologies for product carbon footprint accounting.
These efforts were aimed at advancing feasibility assessments for the application
of low-emission steel in overseas offshore wind projects. Through coordinated Suppliers to employ labor in compliance with
cooperation with upstream suppliers, the Company has gradually built a supply Labor Practices applicable laws and regulations, with 100% Achieved
chain decarbonization pathway centered on data transparency, technical statutory social insurance coverage
collaboration, and low-carbon emission substitution. During the expansion
of overseas projects, the Company has actively provided customers with raw
material carbon emissions data support and explanations of green steel solutions, 100% compliance with wastewater and air
Environmental
thereby offering compliance support for project bidding and delivery in high- emissions standards by Class A suppliers of key Achieved
Management
standard markets such as Europe. core materials
These green steel solutions not only help reduce lifecycle carbon emissions at the
project level and support European developers in achieving their carbon neutrality
and even net-zero goals, but also provide important data and compliance
support for their applications for various sustainability-related incentive policies Fair Business
and subsidies during the project bidding, development, and operational stages. Practices
Through coordinated efforts with developers and core suppliers, the Company
Supplier awareness rate of reporting and
continues to enhance the low-carbon competitiveness of its products and supply Continually advanced
grievance channels ≥90%
chain, providing strong support for project delivery and green value creation in
high-standard markets such as Europe.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
To strengthen the implementation of performance targets, the Company has incorporated sustainable qualification and evaluation to cooperation, and used the implementation of management requirements as a
supply chain management requirements into its internal performance evaluation system and established a basis for assessing key performance indicators (KPIs).
mechanism linking employee performance with supply chain management outcomes. In 2025, the Procurement
Through the coordinated advancement of target management and performance evaluation, the Company has
Management Center included compliance with the Code of Conduct for Procurement Management Center
continuously improved the standardization and execution of sustainable supply chain management, promoted
Personnel in its annual performance evaluation. Through the Supplier Interview Management Policy, the
the joint enhancement of responsibility and compliance levels among both suppliers and the Company, and
Company also clarified communication requirements relating to ESG topics and directly linked the quality
provided solid support for global project delivery and long-term business development.
of supplier interviews to performance scoring. At the same time, leveraging the Supplier Full-Lifecycle
Management Form , the Company dynamically tracked suppliers throughout the entire process from pre-
XI. Supply Chain Sustainability Capacity Building and Training
To continuously enhance the overall level of sustainable supply chain management, Dajin Heavy Industry With respect to supplier training, the Company used key institutional documents such as the Code of Social
regards capacity building and training as an important lever for advancing the implementation of sustainable Conduct for Dajin Heavy Industry’s Business Partners, the Green Supply Chain Management Measures , and
procurement requirements. In 2025, the Company carried out multi-level and systematic training for its the “Ten ESG Red Lines ” as the basis for dedicated communication and training activities for core raw material
procurement teams and core suppliers on key topics such as green supply chains, compliance management, suppliers and key supporting suppliers. The training mainly covered human rights and labor compliance,
and low-carbon transition, thereby promoting the joint enhancement of sustainability awareness and practical environmental management, business ethics, carbon emissions data management, and green steel application
capabilities across both upstream and downstream partners. trends. Through a combination of online briefings, on-site exchanges, and dedicated training sessions, the
Company guided suppliers in strengthening their compliance management and low-carbon development
With respect to internal training, the Company organized dedicated training sessions and case-sharing
capabilities, while promoting the communication and practical implementation of green procurement principles
activities for the Procurement Management Center and relevant business departments, covering topics such
across the supply chain.
as the sustainable procurement policy, supplier ESG management requirements, green material application,
compliance risk identification, and low-carbon requirements for overseas projects. These efforts strengthened In 2025, the Company organized a total of 32 supplier training sessions, achieving a 100% training coverage
employees’ ability to incorporate ESG requirements into supplier pre-qualification, performance evaluation, rate. Through the continuous advancement of capacity building and communication, the Company has
and day-to-day management, while also improving procurement personnel’s understanding of international gradually formed a sound mechanism for jointly promoting sustainable development together with suppliers,
customer sustainability expectations and relevant regulatory policies. further strengthening the foundation for supply chain compliance and low-carbon emission transition, and
providing strong support for the Company’s expansion into high-standard overseas markets and for enhancing
the sustainable competitiveness of its value chain.
Environmental
Topics Addressed:
? Climate Change Response
? Clean Technology Opportunities
? Environmental Compliance Management
? Promotion of the Circular Economy
? Ecosystem and Biodiversity Protection
? Pollutant and Waste Management
? Water Resources Management
Contribution to the SDGs
Dajin Heavy Industry remains firmly committed to its corporate vision of “Sailing Toward a More Sustainable
and Environmentally Friendly Future.” The Company actively responds to climate change, advances green
manufacturing and low-carbon operations in depth, reinforces the foundation of environmental compliance,
and proactively embraces opportunities arising from clean energy development, using practical actions to lead
the industry’s green transition.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Dajin Heavy Industry attaches great importance to addressing climate change. In 2025, with reference to the framework of the Task Force on Climate-related Financial Disclosures (TCFD) , the Company further improved its climate
governance system and carried out a comprehensive and systematic identification and assessment of climate-related risks and opportunities. On this basis, the Company is steadily incorporating climate-related risks into its overall risk
management system, thereby providing strong support for the formulation of its long-term climate strategy and the advancement of substantive climate actions, and contributing to its long-term sustainable development.
Governance
Dajin Heavy Industry has incorporated climate governance into its overall ESG governance system. The Company has established a three-tier climate governance structure comprising the decision-making level, management level, and
execution level, with clearly defined responsibilities at each level. This governance structure is designed to ensure the effective identification, scientific assessment, and systematic management of climate-related risks and opportunities,
promote the deep integration of climate strategy into daily operations and long-term development planning, and comprehensively enhance the Company’s climate governance effectiveness and strategic resilience.
Decision-making Level Management Level Execution Level
Board of Directors Sustainable Development Center Sustainable Development
Department, Functional
? Assumes ultimate oversight responsibility for ? Coordinates the Company’s overall climate action planning, and leads the formulation and dynamic updating of climate strategy, Departments, Production
climate change-related matters. Regularly quantitative targets, and implementation roadmaps.
reviews the material impacts of climate-related Facilities, Business Units,
risks and opportunities on the Company’s ? Organizes the identification, assessment, and prioritization of climate-related risks and opportunities, and, in conjunction and Subsidiaries
strategy and financial performance, and ensures with climate scenario analysis, evaluates the potential impacts of different climate pathways on the Company’s strategy and
operations, based on which response plans are developed.
that these are incorporated into overall business ? Implements specific energy-
decision-making.
? Establishes cross-committee and cross-department coordination mechanisms, and convenes regular coordination meetings saving, emissions-reduction,
to ensure integrated advancement and information sharing on climate-related matters across areas such as carbon reduction, and climate action measures
? Through the Strategy and Sustainability climate risk assessment, and green procurement. to ensure the achievement of
Committee, continuously follows up on the
climate-related targets at the
progress of climate-related work to ensure that
? Regularly reports to the Strategy and Sustainability Committee on the progress of climate-related work, the achievement of key operational level.
climate issues receive adequate attention and performance indicators, and changes in the internal and external environment, thereby providing a sufficient basis for decision-
oversight at the Board level. making at the governance level. ? Performs day-to-day
monitoring and reporting
responsibilities, and supports
Strategy and Sustainability Committee Sustainability Risk Assessment Special Committee Carbon Reduction Special Committee the collection, accounting,
and disclosure of energy
? Reviews and approves the Company’s climate ? Systematically identifies and assesses climate-related ? Formulates the Company’s greenhouse gas emissions consumption and carbon
change response strategy, medium- and physical and transition risks, and coordinates relevant management strategy and emissions reduction targets. emissions data.
long-term emissions reduction targets, and departments in developing contingency plans and
implementation pathways, and continuously response measures. ? Coordinates carbon emissions data inventorying,
oversees progress in execution. verification, and target tracking.
? Fully integrates climate risk assessment into the
? Provides recommendations to the Board on Company’s enterprise risk management processes to
major climate-related matters, such as strategic enable normalized monitoring.
adjustments, responses to material risks, and
changes to key targets, and regularly reports
to the Board on oversight progress and key Green Steel Special Committee Sustainable Procurement Special Committee
matters of concern.
? Holds meetings on an as-needed basis to hear ? Studies and formulates standards for the application of ? Promotes the implementation of responsible procurement
green steel and strategies for low-carbon supply chain policies, prioritizes the use of low-carbon materials, and
management’s reports on climate-related work
transition, and promotes low-carbon technological advances green logistics. By incorporating factors such
and review the Company’s climate-related
innovation and the reduction of product carbon footprints. as carbon emissions levels into supplier admission and
disclosures.
management mechanisms, it guides the supply chain to
pursue decarbonization collaboratively.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
During the reporting period, the Sustainability Center organized two dedicated climate change training sessions for the Board of Directors, with the aim of continuously enhancing the Board’s professional capabilities on climate-
related matters. The training covered topics including the Net-Zero Industry Act issued by the European Union, the revised CBAM Regulation , and the draft IMO Net-Zero Framework issued by the International Maritime
Organization (IMO). Looking ahead, the Company has planned to provide the Board with ongoing climate-related professional knowledge through various means, including the introduction of external expert support and the
continued delivery of internal thematic training. These efforts are intended to ensure that the Board has access to the necessary professional support to effectively fulfill its responsibilities for the management and oversight of
climate-related matters.
Strategy
We attach great importance to the challenges and opportunities brought about by climate change, and
proactively integrate climate change response into the Company’s overall strategy. With reference to the
recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and international
disclosure frameworks such as IFRS S2 Climate-related Disclosures, the Company systematically identifies
climate-related risks and opportunities and continuously optimizes its responses to key climate risks, thereby
supporting its low-carbon emission transition.
Scenario Analysis
To comprehensively understand the potential impacts of climate change on the Company’s business,
strategy, and financial performance, we adopted a climate scenario analysis approach to conduct
forward-looking assessments of climate-related physical risks, taking into account the uncertainties in
both the timing and magnitude of climate change impacts.
? Scope: The assessment covered 10 core production and operating sites and major investment
projects located in Shandong, Hebei, Liaoning, Inner Mongolia, and other regions2. These include
offshore wind equipment manufacturing facilities, shipbuilding facilities, onshore wind tower
manufacturing facilities, and renewable energy generation projects.
? Time horizons: The assessment is aligned with the time horizons of Dajin Heavy Industry’s carbon
target setting, namely the current term (2025), the short term (2030), and the long term (2050).
? Risk types: The Company identified and assessed seven acute physical risks—river flooding, pluvial
flooding, storm surge, extreme precipitation, storms, wildfires, and heatwaves—as well as two
chronic physical risks—drought and heat stress.
? Climate scenarios: Using the Shared Socioeconomic Pathways (SSPs) developed by the
Intergovernmental Panel on Climate Change (IPCC), the Company selected two scenarios—a
low-emissions scenario (SSP1-2.6) and a high-emissions scenario (SSP5-8.5)—and conducted
quantitative analysis for each across the current, short-term, and long-term time horizons.
facility, Zhangwu Xiliujiazi 250 MW Wind Power Project, and Tangshan Dajin Shenghui 250 MW Photovoltaic Power Station Project.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Climate Scenarios Used for Assessing Climate-related Assessment model: Based on an ensemble of multiple CMIP6 climate models, the model calculates changes in each hazard indicator from
Physical Risks the historical baseline period to future time horizons, and applies a quantile transformation to map the magnitude of global change onto a
standardized 0–10 scoring scale, thereby enabling the comparability of risks across different time periods and locations.
Physical Risk Assessment Scenario Adopted Low-Emissions Scenario High-Emissions Scenario
Scenario Category IPCC SSP1-2.6 (corresponding to RCP2.6) IPCC SSP5-8.5 (corresponding to RCP8.5)
The world gradually transitions toward a sustainable development pathway, The world continues along a fossil fuel-driven development pathway, with rapid economic growth remaining highly
emphasizing the coordination of inclusive growth and environmental boundaries. dependent on the continued extraction and use of fossil fuels, leading to continuously rising greenhouse gas
Under this pathway, renewable energy technologies develop rapidly, the use of emissions. In terms of the technological pathway, innovation fails to effectively shift toward a low-carbon emission
fossil fuels is progressively minimized, and economic, social, and environmental transition, and the energy system remains fundamentally reliant on fossil fuels, resulting in continued increases in
systems evolve in a more coordinated manner. energy demand and resource consumption throughout this century.
Scenario Description
By 2100, radiative forcing is expected to stabilize at approximately 2.6 W/m2. By 2100, radiative forcing is expected to reach 8.5 W/m2. Compared with the 1850–1900 baseline period, the best
Compared with the 1850–1900 baseline period, the best estimate of the increase estimate of the increase in global average surface temperature for 2081–2100 is 4.4°C, representing a significant
in global average surface temperature for 2081–2100 is 1.8°C, making it possible deviation from the temperature goals set out in the Paris Agreement.
to limit global warming to below 2°C.
Temperature Increase Below 2°C Above 4°C
Climate Model Parameters and Indicators
Parameter Indicator Covered by Climate Model
Hazard severity level of river flooding
River Flooding
Return period of river flooding
Hazard severity level of pluvial flooding
Pluvial Flooding
Return period of pluvial flooding
Hazard severity level of storm surge
Storm Surge
Return period of storm surge
Acute Physical Risks Change in precipitation during the wettest month (mm)
Extreme Precipitation
Change in one-day extreme precipitation (mm)
Wind speed under 10-year / 50-year / 100-year return periods (m/s)
Storms
Wildfire Annual number of days with extreme fire weather (FWI > 50 / FWI > 21.3)
Annual number of heatwave days
Heatwaves
Annual frequency of heatwaves
Average aridity index (precipitation / potential evapotranspiration)
Drought
Chronic Physical Risks Annual minimum Standardized Precipitation Evapotranspiration Index (SPEI)
Heat Stress Annual number of days with Wet Bulb Globe Temperature (WBGT) exceeding 32°C
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Climate-related Physical Risks
After obtaining the individual risk assessment results for each operating site, we weighted the results based
on the relative value of each asset and ultimately developed a Group-level physical risk inventory to reflect the
potential impacts of climate change on the Company’s overall asset portfolio.
Group-level Physical Risk Inventory of Dajin Heavy Industry
Group-level Physical Risk 2030 2050
Inventory of Dajin Heavy Risk Type Term
Industry SSP1-2.6 SSP5-8.5 SSP1-2.6 SSP5-8.5
River Flooding
Pluvial Flooding
Storm Surge
Acute Physical Risks Extreme Precipitation
Storms
Wildfire
Heatwaves
Drought
Chronic Physical Risks
Heat Stress
Risk Severity Severe Relatively High High Medium Low Very Low
Across its nationwide operations, extreme precipitation and drought are expected to be the most significant Guangdong, leveraging port advantages and focusing on offshore equipment manufacturing and exports. The
physical climate risks faced by the Group. Flooding and waterlogging caused by extreme precipitation may lead inland operating sites are located in Liaoning, Hebei, and Inner Mongolia, undertaking onshore wind equipment
to operational disruptions at production bases, damage to equipment, and delays in the delivery of overseas manufacturing and renewable energy generation businesses.
orders, thereby directly affecting operating revenue. Although the Company’s production processes do not
Among these, extreme precipitation may also affect the stability of power generation at renewable energy
involve industrial water use, drought may still indirectly increase facility maintenance and road repair costs by
plants located at inland bases, which could in turn lead to fluctuations in electricity generation revenue. It
affecting the stability of plant foundations, aggravating dust pollution, and disrupting logistics efficiency.
may also disrupt the normal transportation of oversized products, thereby increasing the risks of logistics
To systematically address these risks, Dajin Heavy Industry has gradually integrated climate adaptation into its interruption and delayed order delivery. By comparison, Dajin Heavy Industry’s three major Bohai Rim
strategic planning and continues to enhance the climate resilience of its production bases and operating sites facilities—Penglai, Tangshan, and Panjin—are all located on or near the coast and carry the core functions
through measures related to both engineering infrastructure and day-to-day operations. of offshore equipment manufacturing and global delivery. Their exposure to climate risks is therefore highly
representative and distinctive. The following section focuses on the detailed risk assessment results and
From the perspective of geographic distribution, the Group’s core operating sites can be divided into two
response measures for these three major Bohai Rim offshore equipment manufacturing facilities.
major clusters: coastal and inland. The coastal bases are mainly located in Shandong, Hebei, Liaoning, and
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Penglai Facility
Penglai Facility Risk Type Term
SSP1-2.6 SSP5-8.5 SSP1-2.6 SSP5-8.5
River Flooding
Pluvial Flooding
Storm Surge
Acute Physical Risks Extreme Precipitation
Storms
Wildfire
Heatwaves
Drought
Chronic Physical Risks
Heat Stress
Risk Severity Severe Relatively High High Medium Low Very Low
The Penglai Facility, located in Penglai District,
Yantai City, Shandong Province, is a heavy The Penglai Facility has adopted the following measures to enhance its climate resilience
equipment manufacturing facility built adjacent
? Meteorological data support: We have established close cooperation with the Yantai Meteorological Service
to the port, with the Company’s self-owned
Center. In addition to obtaining conventional meteorological data such as wind direction and speed at 10
terminal located directly in front of the facility.
meters, air temperature, and visibility, we have also customized forecasts for wind conditions at an altitude
The main physical climate risks faced by the
of 50 meters and marine weather conditions, while improving the accuracy of 24-hour forecasts to an hourly
Penglai Facility include river flooding, pluvial
level. This enables us to more precisely predict operational weather windows, optimize loading schedules and
flooding, drought, and extreme precipitation.
shipping route planning, and effectively reduce weather-related project delays and economic losses.
Extreme precipitation may directly affect the
shipment and transportation of large-scale ? Strengthening infrastructure and emergency management: We have reinforced flood prevention and
wind power equipment, while pluvial flooding drainage infrastructure at the base to improve the disaster resilience of key facilities. At the same time, we
may disrupt raw material transportation routes, have established and continuously improved early warning mechanisms and emergency response plans for
leading to interruptions in production schedules severe weather, and regularly conduct emergency drills.
or delays in project delivery. River flooding and
pluvial flooding may result in site inundation, ? Enhancing supply chain and logistics resilience: We have developed plans to safeguard supply chain
equipment damage, and raw material losses, stability and continuity of supply, and coordinate with relevant offshore logistics departments to
thereby causing asset impairment and increased dynamically adjust transportation routes based on weather alerts, thereby reducing the impact of severe Penglai Facility Conducts Emergency Drill for Flood
repair costs. Drought, on the other hand, may weather on product delivery. Prevention and Water logging Control
drive up water costs.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Tangshan Facility
Tangshan Facility Risk Type Term
SSP1-2.6 SSP5-8.5 SSP1-2.6 SSP5-8.5
River Flooding
Pluvial Flooding
Storm Surge
Acute Physical Risks Extreme Precipitation
Storms
Wildfire
Heatwaves
Drought
Chronic Physical Risks
Heat Stress
Risk Severity Severe Relatively High High Medium Low Very Low
The Tangshan Facility is located in the Caofeidian
Equipment Manufacturing Industrial Park in
As a newly built facility, the Tangshan Facility incorporated climate resilience considerations from the very beginning of its design. It is currently
Tangshan, Hebei Province, adjacent to Bohai
strengthening its risk resilience through the following measures
Bay. The main physical climate risks it faces
include river flooding, pluvial flooding, extreme ? During the initial planning and site selection process, the Tangshan Facility fully considered safety risks under extreme weather conditions, particularly
precipitation, and drought. Similar to the Penglai the threats of flooding and seawater backflow caused by heavy precipitation. The site was ultimately selected in an area with relatively high elevation
Facility, river flooding, pluvial flooding, and and favorable drainage conditions, and multiple flood prevention measures were incorporated into the infrastructure design. The site’s stormwater
extreme precipitation pose threats to production drainage network is seamlessly connected to the municipal drainage system, ensuring that rainwater can be rapidly discharged into flood control
continuity and asset safety, while drought may channels and directly into the sea during heavy rainfall events.
lead to increased energy costs.
? To continuously safeguard the safety of the facility, the site will also establish and implement early warning mechanisms and emergency drill plans.
Through coordination with meteorological authorities, it can obtain timely early warnings for extreme weather events and deploy emergency resources
and personnel in advance.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Panjin Facility
Panjin Facility Risk Type Term
SSP1-2.6 SSP5-8.5 SSP1-2.6 SSP5-8.5
River Flooding
Pluvial Flooding
Storm Surge
Acute Physical Risks Extreme Precipitation
Storms
Wildfire
Heatwaves
Drought
Chronic Physical Risks
Heat Stress
Risk Severity Severe Relatively High High Medium Low Very Low
The Panjin Facility is located at the estuary of the Liao River. Built in
a low-lying coastal area, it primarily undertakes the construction of In response to these risks, the Panjin Facility has established and continues to improve dedicated response mechanisms:
specialized transport vessels. The main physical climate risks it faces
include river flooding, storm surge, extreme precipitation, and drought. ? continuously improving flood and typhoon emergency response plans, while maintaining adequate reserves
The combined effects of river flooding and storm surge may result in of flood prevention materials such as sandbags and flood barriers;
site inundation, equipment damage, and damage to vessels under
? implementing targeted reinforcement measures for large key equipment and major products such as vessels
construction, thereby causing asset losses and increased maintenance
under construction, in order to ensure the safety of personnel and assets.
costs. Extreme precipitation may easily trigger waterlogging,
interrupting slipway operations and affecting production continuity.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
We conducted a detailed analysis of the identified transition risks and opportunities, comprehensively examining their potential impacts and
Climate-related Transition Risks
the response measures adopted by Dajin Heavy Industry. This provides strong support for the Company in formulating more specific and
effective climate risk management strategies.
Impact Horizon and Severity
Risk Risk
Potential Impact Response Measures
Category Description Short term Medium term Long term
Mandatory requirements for climate-related disclosure imposed by major
stock exchanges globally (such as the Hong Kong Stock Exchange and the
The Company has analyzed the relevant disclosure requirements, identified
Shenzhen Stock Exchange) and regional regulations (such as the EU CSRD)
T1: Increasing current gaps, and set annual work targets and phased implementation plans
are becoming increasingly stringent. To continue meeting these compliance
Climate-related accordingly. For example, in order to meet the disclosure requirements of
requirements, the Company needs to invest corresponding resources. On the
Disclosure the CSRD, the Company has planned to launch dedicated learning, internal High Medium Medium
one hand, this increases compliance costs; on the other hand, by proactively
Requirements training, and indicator analysis relating to the European Sustainability
preparing in advance and pursuing high-quality disclosure, the Company
Reporting Standards (ESRS) in 2026.
has created a first-mover advantage in building transparency and leadership
within the industry, thereby differentiating itself from competitors.
• The Company has established routine tracking and policy analysis of
climate-related regulations, and has conducted preliminary financial
As the Company expands its overseas business, its shipping operations impact assessments of potential risks to quantify possible risk
will be directly exposed to climate policies and regulations issued by the exposure.
T2: Intensified
European Union and the International Maritime Organization (IMO), such
Carbon
as the EU Emissions Trading System (EU ETS), FuelEU Maritime , and the
• The Company has evaluated potential emissions reduction measures
Emissions for both chartered and self-owned vessels on a case-by-case basis,
IMO Net-Zero Framework . These regulations are expected to increase
Regulation and has prioritized the implementation of measures that are both Low Low Medium
overall transportation costs, including compliance costs. However, given that
for Shipping technically feasible and economically efficient.
such regulations apply broadly to all vessels operating on the same routes
Operations
across the industry, the Company’s shipping business is not expected to lose • The Company has incorporated the use of renewable fuels and
Policy competitiveness relative to its peers. alternative propulsion technologies into the long-term planning and
Changes construction of vessels, in order to ensure the future fleet’s long-
term compliance and competitiveness.
• The Company has assessed carbon tax levels and clarified its
medium- and long-term decarbonization pathway by setting
science-based targets (SBTi).
The EU Carbon Border Adjustment Mechanism (CBAM) will officially enter
the substantive charging phase in 2026. At present, in addition to the • We actively collaborate with upstream suppliers to systematically
fact that certain detailed rules and operational guidelines still need to be manage emissions reduction projects on both the supply side and
clarified, the mechanism itself also contains certain structural barriers and the production side, thereby steadily reducing the carbon intensity
does not effectively incentivize upstream enterprises in China to take more of our products.
T3: Uncertainty
in Carbon Tariff
proactive emissions reduction actions. This means that, during 2026–2027,
companies will need to gradually determine carbon emissions monitoring
• We have fully integrated factors such as carbon emissions levels into Low Medium Medium
Policies procurement decision-making and supplier management processes,
and carbon cost control approaches suited to their own circumstances. thereby encouraging suppliers to actively undertake their own
Overall, the Company must not only respond to the direct compliance emissions reduction actions.
pressure brought by the CBAM, but also work collaboratively with upstream
and downstream partners to explore feasible decarbonization pathways in • We have worked with key upstream suppliers to carry out carbon
order to maintain the international export competitiveness of its products. footprint accounting for wind power steel and develop CBAM
emissions factor-related projects, so as to obtain an accurate
understanding of actual emissions data and provide a sound basis
for formulating scientific and cost-optimal compliance strategies.
Price fluctuations and supply uncertainty in local green electricity trading The Company has established strategic cooperation with professional
T4: Uncertainty
markets may affect the achievement of the Company’s target for the grid service enterprises, which to a large extent helps mitigate price and
Market in the Energy Low Low Low
proportion of clean energy use and may also lead to increased operating market volatility risks and supports the achievement of its target for the
Market
costs. proportion of green electricity use.
Risk Impact Severity High Medium Low T:Transition Risk
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Climate-related Transition Opportunities
Impact Horizon and Severity
Opportunity Opportunity
Potential Impact on the Company Response Measures
Category Description Short term Medium term Long term
As frontier technologies such as larger offshore wind turbines and • The Company has established dedicated professional teams
floating foundations gradually mature, the commercialization of deep- to participate in the design and R&D of frontier wind power
O1: Iteration sea and far-sea wind power is expected to continue accelerating. technologies and products, positioning itself to become part of the
of Frontier The Company’s continued investment over the past several years in first tier of suppliers for new products. High High High
Wind Power talent development, frontier technology R&D, market expansion, and
Technologies infrastructure construction in this field will provide strong support • The Company has already carried out market development and
for its rapid entry into this emerging market, thereby driving revenue proactive strategic deployment in deep-sea and far-sea offshore
growth. wind projects.
• The Company is actively advancing green production and using
Products low-carbon products to meet domestic and overseas customers’
Increasingly stringent international climate disclosure and ESG green supply chain procurement needs, thereby consolidating and
and
compliance requirements are driving the Company’s energy expanding its market share.
Services
structure transition, while also promoting product carbon footprint
O2: Low-
carbon Emission
management and green supply chain development. By optimizing • The Company is proactively expanding into the renewable energy
carbon performance in both production processes and procurement sector and diversifying its revenue structure. In 2025, the Company
Transition
activities, the Company is better positioned to meet domestic and held 500 MW of self-owned wind farms and photovoltaic power
Driving
overseas customers’ scrutiny of supplier ESG performance, thereby stations, while offshore wind projects under construction reached an Medium High High
Innovation in
consolidating and expanding its market share. In addition, leveraging installed capacity of 950 MW.
Products and
its accumulated strengths in wind power equipment, the Company is
Services
actively advancing the development of wind and photovoltaic power • The Company is accelerating the transition of its energy structure by
stations. Once connected to the grid, green electricity generation will implementing a green electricity procurement strategy to steadily
provide the Company with a stable new source of operating revenue. increase the proportion of renewable electricity used, while also
conducting feasibility studies for distributed photovoltaic power
generation projects.
Risk Impact Severity High Medium Low O:Opportunity
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Risk Management Metrics and Targets
We are continuously advancing the integration of climate-related risks into the Company’s overall risk management system.
Climate Targets
Following a standardized process of identification, assessment, and management, we systematically review climate-related
risks and opportunities, scientifically evaluate the scale and scope of their potential impacts, and use the assessment results as
an important consideration in business strategy formulation. As the Group’s core manufacturing facility for advancing its “New Overseas & Offshore
Strategy” in offshore wind and overseas markets, the Penglai Facility has taken the
lead within the Company in carrying out systematic climate target management and
emissions reduction actions. Leveraging the Company’s industrial strengths in offshore
Climate Risk Identification
wind equipment and its global business footprint, the Penglai Facility has proactively
benchmarked against international climate governance frameworks and incorporated
climate targets into its development strategy and operational management.
We identify climate-related risks through a combination of external research and internal
cross-functional collaboration. During the reporting period, the Penglai Facility officially passed the review of
the Science Based Targets initiative (SBTi), becoming the first and only company
? We organize dedicated cross-departmental interviews to gain an in-depth understanding of the climate- in the global offshore wind foundation equipment sector to have both its near-
related risk factors faced by the Company’s headquarters and production bases in their actual operations, term emissions reduction targets and net-zero target validated by the SBTi. This
while fully incorporating frontline feedback. achievement signifies that the methodology, boundary scope, and decarbonization
pathway of the Company’s climate target setting have been recognized by an
? We conduct benchmarking analysis against leading companies in the industry and major customers to
internationally authoritative institution, providing an important compliance foundation
identify both common and differentiated climate risks across the sector, drawing on external practices to
and reputational endorsement for the Company’s participation in projects in high-
refine our own risk identification perspective.
standard markets such as Europe.
? By integrating industry research findings, external expert opinions, and feedback from business departments,
In terms of emissions reduction progress, the Penglai Facility has continuously
we analyze policy developments and industry trends in depth, and, in light of the Company’s development
advanced energy structure optimization, energy efficiency improvement, and the
strategy, systematically review and confirm the climate risk inventory.
application of low-carbon emission raw materials, achieving a phased peak in
emissions related to operating activities in 2023. At the same time, with 2024 as
the base year, the Company officially established a net-zero target covering its
own operations and key stages of the value chain, clearly defining both short-term
and long-term decarbonization pathways and continuously promoting systematic
emissions reduction across production and manufacturing, supply chain management,
Risk Impact Assessment
and product delivery processes.
In 2025, the Sustainable Development Center, in collaboration with an external consulting team, conducted in-depth interviews By setting scientific and verifiable climate targets and steadily advancing their
with various business departments to comprehensively review the Company’s climate risk exposure and impact levels across implementation, Dajin Heavy Industry continues to enhance its low-carbon
the entire value chain. To further assess the potential impacts of climate-related risks and opportunities on the business, we competitiveness within the global offshore wind value chain, actively contributing to
carried out scenario analysis across different time horizons, enabling a systematic evaluation of risk severity, the clarification of the support of overseas customers in achieving carbon neutrality and even net-zero
priorities, and the provision of a basis for subsequent management decision-making. goals, and to the green transition of the industry.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
SBTi Targets of the Penglai Facility
Taking 2024 as the base year
By 2030, reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by 42%, and
reduce absolute Scope 3 greenhouse gas emissions by 25%.
By 2050, reduce absolute Scope 1, Scope 2, and Scope 3 greenhouse gas emissions by
By 2030, reduce absolute Scope By 2030,reduce absolute Scope By 2050, reduce absolute Scope 1,
emissions by 42% 25% gas emissions by 90%
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Carbon Neutrality Pathway
To achieve the near-term emissions reduction targets and net-zero target validated by the SBTi, Dajin Heavy Industry is systematically
advancing climate actions through a dual pathway of “decarbonizing its own operations + driving collaborative transition across the value
chain.” Through these efforts, the Company continues to reduce the carbon intensity of its products and supply chain and enhance its low-
carbon competitiveness within the global offshore wind value chain.
Decarbonization Pathway for Own Operations (Scope 1 and Scope 2) Value Chain Decarbonization Pathway (Scope 3)
The Company focuses on three main pathways: energy efficiency improvement, energy structure transition, and offsetting residual emissions.
In 2025, Scope 3 emissions accounted for 97.34% of Penglai Dajin’s total
carbon emissions, with purchased goods and services being the main
source of emissions. Given the industry characteristics of offshore wind
The Company has obtained certification to the ISO 50001 Energy Management System and continues to equipment manufacturing, in which steel materials such as heavy plates
improve the operation of its energy management system and the development of its energy management and flanges are the core raw materials, the Company is committed to
platform. It manages electricity, natural gas, and other energy consumption and tracks progress against building a green supply chain system, while also working with upstream
energy intensity targets. In manufacturing, taking into account the production characteristics of offshore and downstream partners to advance transport decarbonization, thereby
Energy
wind monopiles, transition pieces, and towers, the Company has focused on: process optimization for continuously improving the green competitiveness and climate resilience of
efficiency
high-energy-consuming procedures such as welding and cutting; upgrading to high-efficiency welding the supply chain through full-chain collaboration.
improvement
machines and energy-saving equipment; energy-saving retrofits for dust removal and coating systems;
and optimization of production scheduling and energy consumption data monitoring. Through continuous
? Supply chain decarbonization: The Company is promoting the low-
technological upgrades and management optimization, the Company keeps reducing energy consumption
carbon emission transition of the supply chain with a focus on key raw
per unit of output value and carbon emissions intensity per unit of product.
materials such as steel plates and flanges. It is encouraging upstream
suppliers to optimize production processes, apply low-carbon
We have set targets for green electricity use and are actively implementing green electricity procurement technologies, and establish carbon emissions databases. Through
plans to gradually increase the proportion of clean energy consumed. At the same time, based on the specific collaborative cooperation with upstream steel mills and core suppliers,
conditions of each production facility, the Company has developed electrification roadmaps covering key the Company is gradually building a green supply chain system that
energy-use scenarios such as welding preheating, canteen boilers, and non-road transportation, while also supports European customers in achieving their carbon neutrality and
conducting feasibility studies on self-generated and self-consumed renewable electricity. During the planning net-zero goals through the provision of low-carbon products.
and design stage of the Tangshan Facility, low-carbon emissions reduction was established as a core objective
Energy and systematically integrated throughout the entire process layout. Workshop routing was optimized ? Green logistics: Leveraging the Company’s integrated full-industry-
structure according to energy-saving flow principles to reduce unnecessary transport and energy consumption; chain layout of “self-owned factories, self-owned goods, self-owned
transition traditional natural gas preheating was replaced with electric preheating to reduce fossil fuel consumption vessels, and self-owned ports,” the Company continues to optimize its
at the source; green electricity procurement and rooftop solar PV were incorporated into the overall plan to logistics structure and reduce carbon emissions from transportation. In
increase the proportion of clean electricity; and intelligent instruments and meters were deployed across external logistics cooperation, the Company gives priority to transport
the site to enable online energy monitoring and precise control. Based on comprehensive estimates, these service providers that use low-carbon fuels or are equipped with
measures can significantly reduce the facility’s annual carbon emissions, lowering direct emissions from energy-efficient vessel technologies. In building its own transport
production processes by more than one-third compared with traditional production processes and helping capabilities, the Company continuously improves vessel energy
build a benchmark green and low-carbon factory in the offshore wind equipment sector. efficiency, optimizes shipping routes and loading rates, and reduces
transport carbon emissions per unit of product.
For residual emissions that cannot be fully eliminated in the short term, the Company, while prioritizing
Offsetting substantive emissions reduction, is exploring the use of high-quality carbon offset mechanisms to achieve Through full-chain coordination across manufacturing-side emissions
residual phased neutrality. These may include the purchase of certified carbon credits and participation in forest reduction, supply chain collaboration, and green logistics optimization,
emissions carbon sink or marine carbon sink projects. Any such offsetting activities will strictly follow the principles of the Company continues to enhance the life-cycle carbon competitiveness
authenticity, additionality, and verifiability. and climate resilience of its products, providing solid support for the green
development of global offshore wind projects and for the achievement of
customers’ sustainability goals.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Procurement HSE/ HR/Admin./ IT Departments across Production Shipping Sales
and Operations
Purchase of low-carbon products Energy efficiency improvement Transparency of shipping carbon
Reduce domestic waste Product decommissioning plan
(prequalification) / Electrification emissions data
Low-carbon transportation solution Process innovation / Reduction
Optimize hazardous waste disposal Low-carbon fuel substitution
for raw materials of energy waste
Low-carbon commuting and
Reduce production waste
low-carbon office practices
Energy conservation in office Energy management system /
operations and commuting Energymanagement platform
Refine travel mode options for
Green electricity
business trips through IT
Upstream Supply Production and processing Downstream Sales
Purchased raw materials Scope 3 Scope 1 Scope 2 Downstream transportation Scope 3
and services ① Indirect emissions Direct emissions Indirect emissions and distribution
⑨ Indirect emissions
(Related to production and supply) (Related to customers)
Purchased capital ② Processing of sold ⑩
goods
products
Fuel-and energy- ③
related activities ⑧ Upstream leased assets Use of sold products ? ? Investments
④ Company Production
Purchased
Upstream transportation ⑦ electricity, heat, ? Franchises
End-of-life treatment of ?
and distribution ⑤ Business travel vehicles process
⑥ steam, etc. ?
Waste generated sold products
Employee
in operations commuting Downstream leased
assets
Greenhouse Gas Inventory
In 2025, the Penglai Facility conducted a comprehensive, In 2025, the GHG emission structure of the Penglai Scope 1 and 2: Structure and Absolute Value Change YoY Scope 3: Structure and Absolute Value Change YoY
systematic, and detailed inventory of its greenhouse gas facility underwent notable changes compared to 2024.
emissions in accordance with internationally recognized The proportions of Scope 1 (direct emissions) and
standards, including the GHG Protocol and ISO 14064- Scope 2 (purchased electricity emissions) both declined, 滺澳滵滵為 滸滺澴滵滵滵澳滵滵 滾滽澳滵滵為 滶澴滵滵滵澴滵滵滵澳滵滵
Level for Quantification and Reporting of Greenhouse Gas energy management system, implementing 滸滵澴滵滵滵澳滵滵 滾滻澳滵滵為
滹澳滵滵為 滽滵滵澴滵滵滵澳滵滵
Emissions and Removals . The inventory results showed that: energy efficiency and conservation initiatives, and
滷滺澴滵滵滵澳滵滵 滾滹澳滵滵為
increasing the use of renewable electricity. Within 滸澳滺滵為
Scope 1 greenhouse gas emissions amounted to 14,813.28
Scope 3 emissions, the proportion attributable to 滸澳滵滵為 滻滵滵澴滵滵滵澳滵滵
tonnes of CO2e, accounting for 1.48% of total emissions. 滷滵澴滵滵滵澳滵滵 滾滷澳滵滵為
purchased goods and services remained unchanged,
Using 2024 as the base year, absolute emissions decreased 滷澳滺滵為
while emissions from upstream and downstream
by 6.93% year-on-year; 滷澳滵滵為
滶滺澴滵滵滵澳滵滵 滾滵澳滵滵為
滹滵滵澴滵滵滵澳滵滵
transportation increased significantly. This shift was
Scope 2 greenhouse gas emissions amounted to 11,844.64 mainly driven by the transition of the Company’s
滶澳滺滵為 滶滵澴滵滵滵澳滵滵 滽滽澳滵滵為
tonnes of CO2e (market-based), accounting for 1.18% of total product delivery trade model from FOB to DAP, which 滶澳滵滵為 滷滵滵澴滵滵滵澳滵滵
emissions. Using 2024 as the base year, absolute emissions resulted in the Company assuming a greater share 滵澳滺滵為
滺澴滵滵滵澳滵滵 滽滻澳滵滵為
decreased by 25.13% year-on-year; of transportation-related emissions. Overall, these 滵澳滵滵為 瀲 滽滹澳滵滵為 瀲
Scope 3 greenhouse gas emissions covered nine changes reflect the Company’s progress in reducing °滷滵滷滹 °滷滵滷滺 °滷滵滷滹 °滷滵滷滺
categories, including purchased goods and services, internal emissions and optimizing its energy structure, ò??????????澴 ò??????????澴 ~??ó????ē?澴 ~??ó????ē?澴 ~??ó????ē?澴 ~??ó????ē?澴 ~??ó????ē?澴 ~??ó????ē?澴 ò??????????澴
upstream transportation and distribution, and downstream while also underscoring the need to further strengthen ?ó???滶 ?ó???滷 ?ó???滶 ?ó???滷 ?ó???滸澳滶 ?ó???滸澳滹 ?ó???滸澳滾 ?ó???滸d?ě?? ?ó???滸?????
~??óě???ù ???????? %?????????
transportation and distribution, totaling 1,001,650.80 tonnes the management of GHG emissions across the supply ??ù????ó?? ??ù%?????ò????? ??ù%?????ò?????
of CO2e and accounting for 97.34% of total emissions. chain, particularly in transportation activities.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
We are committed to reducing the environmental impacts of our operations. By advancing cleaner production, expanding our renewable energy business, reducing the carbon footprint of raw materials, and optimizing
warehousing and transportation processes, we continue to promote the implementation of green operations.
Low-carbon Emission Management
Case Study
We regard low-carbon emission management as a core pillar of the Company’s sustainability strategy and systematically
advance carbon emissions control and green transformation. Focusing on domestic and international policy research,
Dajin Heavy Industry Leads Five Steel Mills in Establishing a Carbon Factor
internal low-carbon emission capability building, and industry-wide collaboration, the Company continues to improve
its low-carbon emission management mechanisms and is committed to turning climate compliance requirements into Database for Wind Power and Offshore Engineering Steel
core competitiveness, thereby providing green support for steady business growth.
As international carbon regulatory mechanisms such as the EU CBAM are gradually implemented,
In terms of policy analysis and trend assessment, the Sustainability Center closely tracks key domestic and international requirements for carbon emissions transparency in the global supply chain for high-emission
climate policies, including the EU Carbon Border Adjustment Mechanism (CBAM) and the EU Net-Zero Industry Act, materials such as steel continue to increase. In order to more accurately reflect the actual carbon
and regularly organizes cross-functional policy workshops. Through these efforts, policy developments are promptly emissions level of steel production in China and enhance the scientific rigor and comparability of
translated into internal compliance guidance and strategic recommendations, providing forward-looking support for supply chain carbon data, Dajin Heavy Industry has been actively exploring the establishment of
the Company’s business decisions and strategic planning. In terms of cross-functional capacity building, during the a steel carbon footprint factor database for the wind power and offshore engineering sector.
reporting period, we organized a total of 17 ESG-related training sessions for key departments including production,
During the reporting period, the Company worked with several domestic steel enterprises to
process engineering, HSE, equipment, procurement, overseas and domestic marketing, shipping, human resources, and
carry out preliminary research and technical discussions. Initial exploration focused on areas such
finance, covering more than 300 participants.
as the methodological framework of the factor database, the design of the data system, and
alignment with international standards. The Company also engaged in technical exchanges with
Case Study third-party professional institutions to promote the development of a carbon emissions factor
system that is better aligned with the realities of China’s steel industry.
Special Training on CBAM Compliance Looking ahead, the Company will continue to cooperate with industry chain partners, professional
institutions, and other relevant stakeholders to improve the transparency of carbon data in the
Dajin Heavy Industry carried out a special training program on CBAM compliance, focusing on the EU’s CBAM cost
wind power equipment supply chain and provide foundational data support for carbon footprint
requirements. The training covered key departments including technology, finance, procurement, customs affairs,
management and low-carbon supply chain development in international markets.
equipment and facilities, as well as domestic and overseas marketing centers. A total of 32 employees in core
positions participated in in-depth training, while more than 100 employees took part overall.
Dajin Heavy Industry and State Grid Shandong Electric Power Company Pilot a
Through regulatory interpretation delivered by the Sustainable Development Department, and using data from
the Penglai Facility as an example, the training broke down the calculation logic for carbon emissions per tonne Time-of-Use Electricity Emission Factor Project
of product, helping employees in relevant key positions understand the declaration process. It also clarified the
To proactively respond to international carbon rules and enhance the competitiveness of its
functional responsibilities of each department within the relevant process, while supporting the development of
green exports, the Penglai Facility signed a tripartite agreement with State Grid Shandong
data collection checklists, calculation tools, and interaction mechanisms to ensure a closed-loop process. At the
Electric Power Company and a professional third-party certification body for services related to
same time, the Sustainable Development Department established a long-term and constructive relationship with
upgrading its electricity carbon emissions accounting from a fixed-factor approach to a time-of-
authoritative consulting institutions, maintaining a series of ongoing communications and clarifications regarding
use factor approach.
revisions and updates to the CBAM regulation. Based on this, the Company has also conducted communication
and discussions internally as well as with suppliers and customers, in order to make full preparations for the formal The traditional fixed-factor accounting method has limitations in terms of timeliness and
implementation of CBAM. granularity, and cannot accurately reflect the Company’s actual electricity consumption across
peak, flat, and valley periods. To address this, we plan to upgrade the original fixed-factor
accounting model in 2026 to a “minute-level” time-of-use carbon emission factor accounting
Dajin Heavy Industry fully leverages its leading role in the industrial chain by jointly building a carbon factor database model supported by power big data technologies. This model will enable a more accurate match
with upstream steel mills and partnering with power grid companies to pilot the application of time-of-use electricity with the actual electricity consumption structure, effectively reduce the Company’s electricity-
emission factors, thereby promoting the transition of low-carbon management from individual practice to industry-wide related carbon emission factor, and further strengthen our green competitiveness.
consensus.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Clean Technology Opportunities
Guided by its philosophy of green and low-carbon emission development, Dajin Heavy Industry has Among these projects, the Tangshan 950 MW Wind Power Cluster Project is an important renewable energy
continued to enhance its offshore wind equipment manufacturing capabilities while proactively seizing policy project in the Company’s strategic layout within the Beijing-Tianjin-Hebei region and a significant practical
opportunities arising from China’s energy structure transition and the development of the renewable energy initiative for advancing the region’s green energy transition. Upon completion, the project will significantly
sector. Leveraging the technical and industrial strengths it has accumulated in offshore engineering equipment increase the share of renewable power generation in the local energy mix, optimize the regional power
manufacturing, engineering construction, and project management, the Company has steadily expanded structure, and play an active role in promoting the consumption of green electricity, advancing industrial low-
its investment in and operation of clean energy businesses such as wind power and photovoltaic power carbon emission transformation, and enhancing regional energy security. The project not only offers significant
generation, gradually cultivating renewable power generation as a new growth driver. While continuously environmental and economic benefits, but will also serve as a demonstrative example for achieving green and
reducing the carbon emissions of its own operations, the Company also contributes to regional energy low-carbon emission development in the Beijing-Tianjin-Hebei region.
structure optimization and the low-carbon emission transition of society as a whole by providing green
electricity and low-carbon emission solutions.
Development of Dajin Heavy Industry’s Renewable Energy Projects
The Company continues to advance the construction and operation
of wind farms and photovoltaic power stations
At present, the Zhangwu Xiliujiazi 250 MW Wind Farm and the Tangshan Dajin Shenghui 250 MW
Photovoltaic Power Station (located in Shilihai, Caofeidian District, Tangshan), both of which are self-
owned by the Company and have achieved full-capacity grid connection, are in stable operation, 500 2.002
bringing the total installed capacity to 500 MW. During the reporting period, the Zhangwu Wind Farm MW billion kWh
operated well and delivered approximately 680 million kWh of electricity to the grid in 2025, achieving
connection in May 2025 and delivered approximately 200 million kWh of electricity to the grid in 2025,
with the project maintaining stable overall operations.
Cumulative installed capacity of Cumulative power generation
power generation projects held by the
Company and connected to the grid
On this basis, the Company is accelerating the scaled deployment
of renewable energy projects
At present, the total installed capacity of onshore wind power projects under construction has reached
Caofeidian 350 MW Market-based Wind Power Project, and the Tangshan Fengnan 250 MW Wind
Power Project, all of which are expected to be progressively connected to the grid in the second half
of 2026. According to estimates, as the projects already in operation and those under construction
are gradually commissioned, the Company’s installed renewable power generation capacity will
Cumulative electricity delivered Estimated cumulative reduction in CO2
increase significantly. It is expected to provide approximately 1.252 billion kWh of clean electricity in
to the grid emissions equivalent to cumulative power
generation
the Beijing-Tianjin-Hebei region, while reducing carbon emissions by an estimated 660,000 tonnes,
thereby providing a stable and reliable supply of green energy to the region.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Energy Management
Dajin Heavy Industry regards energy management as an important lever for advancing its low-carbon strategy and improving operational
efficiency. By strengthening management systems, improving energy utilization efficiency, and optimizing the energy mix, the Company
systematically promotes the green transformation of energy use throughout its production and operations, and continuously reduces energy
consumption and carbon emissions intensity per unit of product.
Energy Management System
The Company strictly complies with laws and regulations such as the Energy Law of the People’s Republic of China and the Energy
Conservation Law of the People’s Republic of China , while benchmarking against internationally advanced energy management standards
and continuously advancing the development of its energy management system. In accordance with the ISO 50001 Energy Management
System standard , the Company has established and continuously improved a management system covering energy planning, operational
control, monitoring and analysis, and continuous improvement. It has formulated and implemented institutional documents such as the
Energy Management Manual, Control Procedure for Monitoring and Measuring Equipment, Control Procedure for Energy Targets,
Indicators and Management Programs, and Energy Operation Control Procedure , thereby clarifying energy management responsibilities
and operating processes and promoting the standardized and institutionalized operation of energy management. During the reporting
period, the Company’s Penglai Facility officially obtained ISO 50001 Energy Management System certification, marking that the Company
has met international standard requirements in areas such as energy management system development, energy performance monitoring,
and continuous improvement mechanisms. Looking ahead, the Company will gradually expand the coverage of energy management system
certification, extend its systematic management experience to more production bases and business units, and continuously strengthen the
foundation of its energy management.
Advancing Energy Efficiency Improvement
Following the establishment of its SBTi emissions reduction and net-zero targets in 2025, the Penglai Facility continued to strengthen full-
process energy use management and reinforce energy control measures across production and manufacturing, equipment operation, and
day-to-day office operations, thereby systematically promoting energy efficiency improvement. First, based on the energy management
policy, the Company formulated annual energy consumption control targets, decomposed these targets level by level, and established
clear energy consumption goals, forming an energy management target system with well-defined responsibilities. Second, it continuously
improved its energy metering and monitoring mechanisms, established a multi-dimensional energy monitoring and data statistics
system, and carried out real-time monitoring and data analysis of major energy consumption such as electricity and natural gas, thereby
continuously enhancing the accuracy of energy data statistics and analytical capability and providing data support for energy-saving
management decisions. At the same time, taking into account the characteristics of production and operations, the Company established
an energy performance assessment mechanism, under which quota management standards were set for electricity, natural gas, and other
energy use in production workshops and office areas. Special analyses and improvement measures were implemented for any usage
exceeding the quota, driving all units to continuously improve energy utilization efficiency. In terms of equipment management, the
Company formulated equipment energy efficiency management standards, requiring that newly procured equipment should, as a priority,
meet China’s Grade 1 energy efficiency standard, and developed phased phase-out and upgrade plans for old, high-energy-consuming
equipment. Through equipment renewal and technological upgrading, the Company continues to reduce overall energy consumption.
Systematic energy management and continuous technological improvement will be progressively deepened across the Company’s facilities,
and Dajin Heavy Industry will continue to enhance energy utilization efficiency at all facilities, providing solid support for the achievement of
its carbon reduction targets and green manufacturing transformation.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
In 2025, the Company continued to advance energy-saving and consumption-reduction efforts across its
production and operations. Focusing on two key areas—lighting system optimization and the replacement of
Energy consumption targets are decomposed level by level, and monthly high-energy-consuming equipment—the Company implemented a series of targeted upgrades to continuously
tracking is carried out for the energy use of key equipment. Data review and improve energy efficiency while ensuring production safety and operational efficiency.
verification mechanisms are used to ensure the accuracy of measurement.
? Orderly phase-out of high-energy-consuming equipment: Based on the monitoring, metering, and
analysis of equipment energy consumption, the Penglai Facility actively phased out outdated high-energy-
consuming equipment. During the reporting period, a total of four high-energy-consuming air compressors
were retired and replaced. According to preliminary estimates, this round of equipment upgrading is
Root-cause analysis is conducted for abnormal energy consumption
expected to reduce annual electricity consumption by approximately 396,000 kWh, effectively lowering
indicators, and an Energy Analysis Report is prepared. Improvement
energy use and related carbon emissions while improving equipment operating efficiency and achieving
responsibilities are clearly assigned to each production department, driving
coordinated progress in energy conservation and green production.
them to reduce energy consumption through process optimization.
? Comprehensive upgrade of the lighting system: The Penglai Facility has achieved 100% replacement of
outdoor building lighting across the plant with energy-efficient LED lighting, and has equipped the system
with time-based lighting controls to automatically adjust lighting hours according to seasonal changes and
The completion of energy-saving targets is incorporated into the
operating schedules, thereby reducing unnecessary electricity consumption. Meanwhile, the Zhangjiakou
performance evaluation of workshops and departments. Workshops
Facility, taking into account the high-standard illumination requirements of its anti-corrosion workshop,
that exceed their targets are rewarded, ensuring the closed-loop
selected high-brightness, long-life LED lighting. This ensures production safety and working environment
implementation of various energy reduction measures and the
requirements are met while improving lighting system efficiency and reducing energy consumption.
achievement of annual energy consumption targets as scheduled.
Case Study
Energy Consumption Targets of the Penglai Facility
Tangshan Facility Builds Energy-efficient Facilities and Practices Low-carbon Design
Year Energy Intensity Target
The Tangshan Facility incorporated energy management concepts into the planning and design
? Optimizing building orientation and natural daylighting: In light of the prevailing wind direction
cold air infiltration in winter and enhance natural ventilation in summer, thereby lowering HVAC
energy consumption. Daylighting surfaces were reasonably arranged on factory roofs to maximize
the source.
? Strengthening the thermal insulation performance of the building envelope: The wall insulation
thickness of the coating workshop was increased from the conventional 50 mm to 100 mm,
significantly enhancing thermal insulation performance and reducing the energy consumption of
heating equipment. The office buildings and dormitory buildings adopted rock wool insulation
panels, Low-E energy-efficient doors and windows, and high-airtightness node design,
During the reporting period, the energy
effectively reducing heating and cooling loads while extending building service life.
consumption intensity per unit of output at the
Penglai Facility decreased by 0.92%. ? Selecting energy-efficient processes and equipment: The compressed air system was equipped
with energy-efficient air compressors, and the coating workshop introduced a centralized
dehumidification solution with built-in heat recovery functionality.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Case Study
Energy Structure Optimization
Panjin Facility Optimizes Lighting Management in Shipbuilding to Improve Energy
and Resource Efficiency To continuously reduce the carbon intensity of its production and operations, Dajin Heavy Industry is optimizing
its energy mix by advancing equipment electrification and increasing the proportion of green electricity used,
During the construction of the DJ01 vessel at the Panjin Facility, marine lighting for key areas such thereby accelerating the transition toward a clean and low-carbon emission energy system.
as the engine room and cargo hold was not incorporated into unified planning at the early stage of
In terms of electrification transition, the Company has developed a phased electrification roadmap and key
construction. As a result, the logistics support department had to temporarily install a large number
performance indicators (KPIs) based on the characteristics of its production processes and different types of
of lighting devices to meet construction needs, which led to increased labor hours, additional
emissions sources, and is steadily promoting the substitution of high-carbon emission energy sources. For
consumption of materials such as lamps and cables, and relatively low energy utilization efficiency.
emissions from stationary combustion sources, the Company is gradually replacing natural gas or conventional
In response to this issue, during the construction of the DJ02 vessel, the Panjin Facility optimized
fuels with electricity in production processes such as welding preheating and heating in coating workshops.
its lighting management approach by moving forward the activation of marine lighting in key areas
For mobile source emissions, it is actively promoting the electrification upgrade of non-road transportation
such as the engine room and cargo hold to the early construction stage, thereby achieving a more
equipment and progressively reducing the use of gasoline- and diesel-powered equipment. At the same time,
rational allocation of lighting resources through systematic planning. Specific measures included:
for living and auxiliary facilities, the Company is carrying out electrification upgrades in energy-use scenarios
such as canteens and boilers, continuously increasing the proportion of clean energy used.
? Front-loading lighting planning: During the early stage of ship construction, the activation of
marine lighting was incorporated into the overall construction plan, with clear lighting standards On this basis, the Company has set targets for green electricity use and is actively exploring pathways for
and activation milestones defined for each area. green electricity procurement and clean energy application. Through measures such as participating in green
? Alignment with construction needs: During the construction preparation stage, dedicated electricity trading and studying self-generated and self-consumed clean electricity projects, the Company
briefings were provided to each construction team to identify the lighting needs of different work is gradually increasing the share of renewable energy in its overall energy consumption mix. Through the
phases in advance, enabling more precise allocation. coordinated advancement of electrification upgrades and green electricity application, the Company continues
to optimize its energy structure and lay a solid foundation for achieving its operational carbon reduction targets.
? Process data analysis: Statistics and analysis were carried out on lighting usage and resource
consumption at each stage, comparing differences between temporary lighting and planned
lighting in terms of labor input and material loss, so as to continuously optimize the lighting
Green Electricity Use Target
management process.
Through the above optimization
measures, marine lighting could
be matched more precisely to
construction needs, reducing
the use of temporary lighting
equipment at the source and
effectively lowering both energy
consumption and material
waste during the construction
process. According to estimates,
this optimization measure can
reduce electricity consumption
by approximately 5,760 kWh per
year, while also effectively lowering
Green electricity to account Green electricity to account
related material and labor costs,
for 96.5% of total electricity for 100% of total electricity
thereby delivering the dual benefits
consumption consumption
of resource conservation and
improved operational efficiency.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Energy Conservation Culture Development
During the reporting period, the Penglai During the reporting period, we organized a themed awareness month campaign under the slogan “Energy
Facility procured 23.8 million kWh of green Conservation and Carbon Reduction for Green Development” to enhance employees’ awareness of energy
electricity, with green electricity accounting for conservation and their operational skills.
Green Electricity Certificate Transaction Vouchers Green Electricity Consumption Certificate Promotional Poster on Emissions Reduction Through Using Both Elevators and
Stairs at the Penglai Facility
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Green Production
Dajin Heavy Industry integrates the concept of green production throughout the entire product life cycle. From
Case Study
design and planning to process optimization, manufacturing, and service delivery, the Company continuously
promotes efficient resource utilization and the minimization of environmental impacts throughout the
production process. At the product design stage, the Company reduces resource consumption at the source Zhangjiakou Facility Advances the Green Upgrade of Welding Processes
through process optimization and improvements in material use schemes. During production, it seeks to reduce
the environmental impacts of its operations across the full product life cycle by deepening cleaner production
management, strengthening energy consumption and emissions control, and simultaneously advancing lean During the reporting period, the Zhangjiakou Facility systematically advanced the green upgrade of its welding
raw material management, thereby continuously improving its green manufacturing capabilities. processes in line with its goals of green manufacturing and energy conservation and consumption reduction.
Through design optimization and production process improvements, the base continuously improved material
utilization efficiency while reducing energy consumption and environmental impacts during production.
Driven by the technical team, the base optimized design at the source and implemented a number of
Green Process Improvement improvement measures:
The Company continues to explore pathways for energy conservation, consumption reduction, and green ? Optimizing groove design: The groove angle was scientifically adjusted according to different plate
manufacturing at the production process level, with a focus on both the design and manufacturing stages. thicknesses, significantly reducing weld cross-sectional area and welding material fill volume;
Through process optimization, it reduces the consumption of raw materials and auxiliary materials. During project
design and production preparation, technical and production teams jointly carry out process evaluation and ? Promoting new groove processing techniques: Under suitable conditions, the X-groove process was promoted,
and the carbon gouging root-cleaning process was eliminated for steel plates with a thickness of 30 mm or
optimization in order to improve material utilization efficiency at the source and reduce energy use and emissions
less, thereby reducing smoke and noise pollution during welding;
intensity during production.
During the reporting period, several of the Company’s production facilities optimized and improved their welding
? Optimizing welding methods: For certain components such as stiffeners, gas metal arc welding was replaced
with submerged arc welding, which improved welding efficiency while reducing smoke emissions and shielding
processes in light of the manufacturing characteristics of offshore wind foundation structures and tower products.
gas consumption;
By improving welding parameter settings, optimizing welding sequences, and enhancing welding process stability,
the Company effectively reduced the consumption of welding materials and decreased exhaust gas and noise ? Strengthening process monitoring: A monitoring and statistical mechanism for welding material consumption
emissions generated during welding. At the same time, improved welding efficiency also helped reduce rework was established to dynamically track the use of welding materials and continuously consolidate the results of
and energy consumption. process optimization.
These practices have not only enhanced resource utilization efficiency in the Company’s production processes,
Through the above process improvements, while ensuring product quality and production efficiency, the
but have also provided replicable experience for the green upgrading of welding processes in the offshore wind
Zhangjiakou Facility achieved year-on-year reductions of approximately 7% in welding material consumption,
equipment manufacturing sector, demonstrating positive significance for promoting technological progress and
production energy consumption, and welding fume emissions. The production working environment was also
carbon reduction in industry production processes.
significantly improved, further promoting the continuous enhancement of the Company’s green production and
cleaner manufacturing capabilities.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Xing’anmeng Facility Launches a Special Initiative to Upgrade Welding Processes Tangshan Facility Enhances Process Operations to Achieve Green and Energy-
efficient Production
In response to challenges in tower welding such as the high energy consumption of traditional Guided by the core principles of green and low-carbon emission development, energy conservation,
processes, excessive spatter, and insufficient quality stability in thick-wall welding, the and consumption reduction, the Tangshan Facility has built an efficient and low-carbon emission
Xing’anmeng Facility launched a dedicated welding process upgrade initiative in 2025 and green production system through process optimization at the source, scientific layout planning, and
implemented a number of best practices. refined energy management.
? Precise control of process parameters: The facility precisely optimized submerged arc ? Optimization of plant logistics flow: Transportation routes among heavy workshops, storage
welding parameters by controlling current, voltage, and welding speed within the optimal yards, and the terminal have been rationally planned to shorten the in-plant transport distance
matching range. It also adopted multi-layer multi-pass welding and narrow-gap welding for heavy components, thereby improving logistics efficiency and reducing transport-related
techniques, making heat input more concentrated and energy utilization more efficient, energy consumption.
thereby significantly reducing energy consumption per unit of weld.
? Greening of welding processes: The facility has adopted high-efficiency welding and narrow-gap
? Optimization of groove design and welding consumables: Starting from the design stage, welding technologies, increased the proportion of mechanical beveling, and replaced traditional
the facility optimized groove angles for thick plates and reduced groove cross-sectional natural gas heating with electric heating, thereby reducing energy consumption and carbon
area while ensuring weld strength. At the same time, it standardized the selection of emissions.
welding consumables, reducing the use of welding materials and auxiliary materials from
? Precise energy consumption control: Sub-metering for natural gas, carbon dioxide, oxygen,
the process side.
electricity, and other gases and energy sources was incorporated at the design stage. Combined
Through process innovation, the facility achieved carbon reduction, lower energy with a refined energy management system, this enables real-time monitoring and optimization of
consumption, cost reduction, and lower material use, striking an optimal balance between various types of energy use, thereby enhancing the level of refined energy management.
environmental compliance and production efficiency. These practices have provided a
Through green process design, standardized operations, and refined energy management, the facility
replicable green and low-carbon technical pathway for welding wind power equipment in
has achieved coordinated progress in low-carbon emissions reduction and efficient production.
cold, windy, and sandy environments.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Production Process Optimization
Extending from design into manufacturing, we systematically advance green process innovation throughout the compounds (VOCs). This not only lowers environmental impacts, but also effectively mitigates occupational
production stage. In welding operations, the fuel composition of heating torches has been optimized to reduce health risks for employees. The refined control of production processes works in synergy with innovation at the
carbon emissions from the combustion process at the source. In coating operations, the spraying sequence design stage, jointly promoting green production.
has been scientifically adjusted, significantly reducing paint consumption and the release of volatile organic
Case Study
Optimization of Heating Torch Fuel Composition Panjin Facility Innovates Coating Solutions
During the welding preheating process, The Panjin Facility has innovatively implemented an “early completion of full coating” approach,
the Penglai Facility optimized the fuel under which coating work traditionally carried out on site in the later stage of construction is
gas mixture used in heating torches by moved forward to the steel pretreatment stage. By conducting standardized surface pretreatment
upgrading the fuel from pure natural gas of steel in the workshop and completing primer application in advance—rather than relying on the
to a mixed gas of natural gas and oxygen, traditional practice of later-stage touch-up coating on site—this approach effectively addresses
with a higher proportion of oxygen used common quality issues associated with on-site construction, such as site and weather constraints,
to support combustion. This improvement missed coating areas caused by manual operations, and poor paint film adhesion.
significantly enhanced combustion efficiency.
Compared with manual touch-up coating performed on site, standardized workshop operations
While meeting the temperature requirements
significantly improve paint utilization efficiency, thereby reducing material consumption and
of the welding process, it reduced natural
procurement costs at the source, while correspondingly lowering the generation of volatile organic
gas consumption per unit of product by
compounds (VOCs). In addition, the workshop is equipped with supporting exhaust gas collection
approximately 30.64% compared with 2024,
and treatment facilities for coating operations, converting the VOCs generated during the coating
effectively lowering both natural gas use
process from fugitive emissions into centrally treated emissions, thereby effectively reducing final
and the carbon emissions generated from
emissions. While ensuring anti-corrosion quality, this process innovation has also achieved the
combustion. Preheating Torch
coordinated objectives of cost reduction, efficiency improvement, and green emissions reduction.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Dedicated Assurance Through Special Audits Refined Raw Material Management
We encourage employees to carry out optimization and improvement initiatives on the production front line, so We implement a refined raw material management strategy covering the entire process from design and
as to reduce costs and labor hours, lower safety risks, and continuously advance the detailed implementation production to recycling. Through institutional documents such as the Control Procedure for the Issuance of
of green production. On this basis, the Zhangjiakou Production Facility further carried out a special audit Consumables on a Replacement Basis and the Consumables Control and Management Procedure , we apply
focused on cleaner production, providing a practical model for the Company to deepen cleaner production quota-based controls to the issuance and recovery of materials such as welding wire and flux, thereby reducing
efforts across all operations. waste at the source.
Case Study
Cleaner Production at the Zhangjiakou Facility
Refined Raw Material Management Throughout the
During the reporting period, with the objectives of energy conservation, consumption reduction, Entire Process
pollution reduction, and efficiency improvement, the Zhangjiakou Facility systematically advanced
its mandatory cleaner production audit and achieved notable results. The Company established a
dedicated cleaner production office, improved systems relating to environmental management and
Design Stage Production Process Recycling and Disposal
energy metering, and introduced incentive mechanisms to encourage all employees to participate in
cleaner production improvements. ? We make use of ? We reduce raw material ? We classify and handle edge and
existing inventory consumption by corner scrap generated from steel
In response to the prominent issues of high energy consumption and high emissions in the tower materials and decreasing the number plate cutting. Reusable portions are
Workshop, the Zhangjiakou Facility implemented a total of 10 cleaner production initiatives. By surplus materials of steel plate weld seams further processed through secondary
upgrading and retrofitting paint exhaust gas treatment equipment, the facility reduced annual VOCs from various and reducing steel plate cutting and made into tooling for
emissions by 4.57 tonnes, while emissions intensity per unit area decreased by 3.68 g/m?. Through projects to reduce cutting offcuts. At the repeated use.
new material same time, we adopt a
variable-frequency upgrades to air compressors, the facility saved 3.7393 million kWh of electricity
procurement. target-oriented approach
? Portions that cannot be reused are
annually, equivalent to a carbon emissions reduction of 1,984.07 tonnes. In addition, through the regularly handed over to specialized
to continuously optimize
adoption of other low-cost measures, the facility saved 20 tonnes of steel and 200 tonnes of welding companies for recycling and disposal,
steel plate utilization.
materials annually, while reducing the generation of waste paint residue by 2 tonnes. so as to maximize the resource value
of scrap materials.
Steel Plates Utilization During the reporting period,
Conventional tower products Offshore tower products Monopile products the Penglai Facility set steel plates utilization targets of 96% for conventional tower products,
achieved.
The Penglai Facility recorded 87.62 tonnes of utilized steel offcuts and scrap.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Green Steel Management
Green steel is a core strategic material for wind power equipment manufacturing, and its low-carbon emission attributes directly determine the carbon footprint of
wind power products across their full life cycle. Dajin Heavy Industry has proactively positioned itself in green steel supply chain management, actively responding to
international carbon barriers and promoting emissions reduction practices from the very beginning of the industrial chain, thereby leading the industry’s green upgrading
through pragmatic actions.
Management Structure
Dajin Heavy Industry has established a Green Steel Special Committee and a Green Steel Task- Force to systematically advance the development of its green steel
business. The Committee is responsible for coordinating the strategic direction of green steel and the Company’s carbon competitiveness enhancement objectives. The
Task-Force is led by a Sponsor, with the leader responsible for overall coordination and organization. Core members come from departments including the Sustainable
Development Center, Supply Chain Management Center, and Overseas Business Division, forming a cross-functional working mechanism with clear responsibilities and
authorities. Based on this structure, the Company promotes internal research on the application of low-carbon steel technologies while externally coordinating customer
and supplier needs, thereby providing organizational support for the implementation of green steel products.
Cooperation Principles
Dajin Heavy Industry has established a set of green steel cooperation principles to define the selection criteria for high-quality green steel suppliers.
Dajin Heavy Industry’s Green Steel Cooperation Principles
Green Steel Certification Technological Innovation Long-term Strategic
Principle Steel Plate Quality Capacity and Reputation Supply Chain Transparency Product Suitability
and Standards and R&D Capability Cooperation
Priority is given to
The supplier shall The Company seeks
suppliers with outstanding
have the capability to Green steel products shall Priority is given to Steel mills shall provide to establish long-term
green steel R&D Green steel products shall
produce high-strength comply with relevant steel mills with leading comprehensive carbon strategic partnerships
capabilities and strong meet the practical needs
and corrosion-resistant EU and international production capacity and emissions data and to jointly pursue higher
continuous innovation of overseas offshore wind
Description steel plates that meet certification standards strong market influence, environmental information environmental and
capacity, in order to projects in terms of cost,
the stringent material to ensure environmental so as to ensure the to ensure supply chain sustainability goals and
promote the development performance, and delivery
performance requirements performance and market stable supply and broad transparency and collaboratively respond
and application of low- schedule.
of overseas offshore wind access. application of green steel. traceability. to market and regulatory
carbon emission steel
projects. changes.
plates.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Industry-wide Collaboration
We have signed strategic framework agreements on green steel cooperation with Baoshan Iron & Steel and Nanjing Iron & Steel, and plan to gradually carry out technical cooperation and project implementation in areas such as
steel plate process improvement, carbon footprint optimization, and green steel planning, while actively exploring practical and feasible green steel solutions.
At the same time, we have continued to hold working meetings on green steel with upstream customers, introducing, exchanging views on, and discussing a range of topics including low-carbon steel life-cycle management and
assessment, carbon emissions information transparency, compliance with regulatory requirements, and green steel premiums. During the reporting period, we completed multiple rounds of meetings with six upstream customers,
during which preliminary views were exchanged on the direction of green steel cooperation.
Green Logistics
The Company continues to improve its green logistics system by selecting suppliers
Case Study
with compliant emissions performance and high emissions efficiency, strengthening
warehousing management capabilities, enhancing logistics transfer efficiency, and optimizing
transportation voyage arrangements, thereby fully integrating green principles into every Working with Suppliers to Upgrade Transport Vehicles
aspect of logistics operations.
In response to national environmental policy requirements such as the Law of the People’s Republic of China on
the Prevention and Control of Atmospheric Pollution and the Limits and Measurement Methods for Emissions
Green Logistics Measures
from Heavy-duty Diesel Vehicles (China VI) , and in line with the Company’s green and low-carbon emission
development philosophy, we worked with transport suppliers in 2025 to carry out a vehicle upgrade program
Optimizing transport routes to reduce empty return trips, with total
for the transportation of finished tower products. Under this program, operating vehicles meeting the China V
transportation mileage reduced by more than 10,000 kilometers over the year.
emission standard were gradually phased out and replaced with new transport vehicles compliant with the China
VI emission standard. The cooperation was centered on reducing exhaust emissions from transportation and
improving transport efficiency, thereby promoting the green transformation of the supply chain.
Promoting centralized distribution and consolidating small-batch orders, During implementation, the Company established a close communication mechanism with transport suppliers,
reducing the number of transport trips by more than 50 over the year. clarified the importance of the China VI emission standard and relevant industry trends, and ensured the gradual
compliance of transport vehicles with the China VI standard through routine checks such as verification of vehicle
licenses. Operational data showed that, in actual transport operations, particulate matter (PM) and nitrogen oxides
(NOX) emissions from China VI vehicles were significantly lower than those from China V vehicles. All vehicles
Using green electricity, while prioritizing the use of new energy logistics passed exhaust emission testing and met road operation and environmental regulatory requirements. At the
vehicles in 2025. same time, China VI vehicles demonstrated stable power performance, and fuel consumption was also optimized
compared with China V vehicles, further improving transport efficiency and cost-effectiveness.
In the field of Green Shipping, we give priority to choosing energy-efficient shipping By working with suppliers to upgrade transport vehicles, the Company effectively strengthened the management
companies with better carbon emission indicators, and simultaneously conduct feasibility and control of carbon emissions in downstream transportation, actively promoted the implementation of supply
studies on the application of biofuels. During the product transportation process by sea, we chain emissions reduction measures, and reduced carbon emissions intensity and environmental risks. This vehicle
precisely match the number of monopiles with the cargo capacity of the vessel, renovate the upgrade not only improved the environmental performance of both the Company and its partners, but also
deck and add outboard supporting devices to increase the cargo area per voyage, thereby provided solid support for green and compliant operations and the sustainable development of transportation,
reducing the total number of voyages and effectively lowering the carbon emissions during reflecting the Company’s and its suppliers’ firm commitment to fulfilling social responsibilities and contributing to
ocean transportation per unit product. For more information on shipping, please refer to China’s “dual carbon” goals.
"Specialized Topic 1:Green shipping undergoes further upgrades, leveraging autonomous
shipping capabilities to establish a new global delivery advantage".
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
We have always firmly held that the sustainable development of an enterprise cannot be achieved without a strong sense of environmental responsibility. To this end, we have embedded our green philosophy into the entire
lifecycle of our operations, advanced cleaner production and resource recycling, and continuously enhanced resource utilization efficiency.
With a robust and forward-looking environmental management system in place, we exercise strict control over all types of emissions and wastes to minimize the impact of our operations on the ecological environment. We fulfill
our corporate environmental responsibilities through tangible actions, and actively work to build a more sustainable future.
Environmental Management
To fulfill our environmental policy of "Pollution Prevention, Rational Utilization of Resources, and Jointly Building a Sound
Ecological Environment", we continuously improve our environmental management system and fully implement all environmental
management practices.
Environmental Management System Environmental Compliance Status
We have always regarded environmental protection as one of the core responsibilities of the Company's development, and During the reporting period, the Company strictly abided by national environmental
strictly abide by the requirements of relevant laws and regulations including the Environmental Protection Law of the People's protection laws and regulations, and fully implemented all environmental management
Republic of China, Law of the People's Republic of China on the Prevention and Control of Water Pollution , and Law requirements. All new, reconstruction and expansion projects have completed the
of the People's Republic of China on Promoting Cleaner Production . In the meantime, in accordance with the ISO 14001 Environmental Impact Assessment (EIA) and obtained approval from the competent
Environmental Management System standard, we have formulated and continuously improved internal policy documents and authorities in accordance with the law. All operating projects have legally obtained the
measures such as the Environmental Management Procedure and Environmental Impact Assessment Form , to ensure that Pollutant Discharge Permit, and completed the filing for hazardous waste generating
all environmental protection requirements and control measures are effectively implemented, and achieve compliant disposal of entities in compliance with relevant requirements.
emissions and wastes.
The Company continuously improves its environmental management system, and
As of the end of the reporting period, all the Company's long-term operating production facilities have obtained ISO 14001 regularly conducts environmental monitoring and third-party testing. Monitoring data
Environmental Management System certification. To ensure the effective implementation of environmental management, the shows that the pollutant emission concentration of each project fully complies with
Company has set up an HSE (Health, Safety and Environment) department at each production facility. The HSE department national and local standards.
of each facility is responsible for the overall planning and implementation of environment-related affairs, regularly reports the
effectiveness of environmental management to the Company's headquarters, analyzes environmental management performance,
puts forward and evaluates improvement suggestions, and promotes the optimization of management practices. This ensures
the dynamic improvement and continuous enhancement of the environmental management system, and forms a closed-loop
management system with continuous improvement.
During the reporting period, Dajin Heavy Industry
During the reporting period, Dajin Heavy Industry
Investment in environmental protection and
Number of environmental penalty incidents: 0
RMB emission reduction: RMB 753.3K
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Environmental Risk Prevention and Control Environmental Emergency Management
We have established a systematic identification, assessment and control mechanism The Company attaches great importance to the prevention of and response to environmental
for environmental risk management in the process of production and operation. emergencies, and has formulated the Emergency Response Plan for Environmental
The Company has formulated internal documents including the List of Significant Emergencies , which has been filed with the competent authorities in accordance with
Environmental Aspects, Environmental Aspect Identification and Assessment Form, relevant requirements. To ensure the effective implementation of emergency management,
the Company has set up an Emergency Command Headquarters with specialized emergency During the reporting
and Management Procedure for Environmental Aspect Identification and Assessment ,
response teams under it, and defined clear responsibilities and response procedures. For key period, Dajin Heavy
to clarify the process of environmental aspect identification and management, so as to
risk scenarios such as fire and explosion, hazardous chemical leakage from paint warehouses Industry
pinpoint the significant environmental aspects involved in the Company’s operations.
and hazardous waste temporary storage rooms, and failure of environmental protection Number of
Each production facility regularly carries out the identification and assessment of facilities, we have developed supporting special emergency response plans and on-site environmental penalty
environmental aspects, formulates timely rectification measures for the identified disposal plans to ensure accurate and effective risk identification and response measures. incidents: 0
problems, and prevents and controls environmental risks at the source. To ensure the
effectiveness of management, the Company regularly organizes internal audits and To enhance emergency response capability, the Company regularly organizes emergency
third-party external audits to conduct systematic inspections on the environmental risks training and practical drills to comprehensively strengthen all employees' awareness of
and compliance status of each production facility, and drive continuous improvement. environmental risk prevention and emergency disposal skills, and continuously conducts
training on environmental protection laws and regulations as well as operating procedures.
During the reporting period, the Penglai facility conducted 19 third-party environmental During the reporting period, all production facilities of the Company completed emergency
impact audits, with a 100% audit pass rate, and no material environmental risk issues drills as scheduled, no major environmental emergencies occurred, and the Company's
were identified. environmental emergency management capability was continuously improved.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Waste Gas Management
We strictly abide by the Law of the People's Republic of China on the
Prevention and Control of Atmospheric Pollution , and implement emission
The Company is committed to systematically reducing waste gas emissions through the whole process of source control, process
control requirements in strict accordance with the Comprehensive Emission
management and end-of-pipe treatment. Through the following measures, the Company continuously improves the level of waste
Standard of Air Pollutants for Regional Areas (DB 37/2376-2019) and
gas treatment, ensures that all emission indicators stably meet the standards, and actively fulfills its corporate environmental
the Integrated Emission Standard of Air Pollutants (GB 16297-1996) . We
responsibilities:
have formulated internal policy documents including the Environmental
Management Procedure , which clarify the responsibilities, authorities and
? Strengthening waste gas source collection: We adopt a combined treatment process of dust bags and filter screens for welding
specific standards for waste gas management in all links of the project, to
and grinding fume, and introduce mobile welding fume purifiers to efficiently capture waste gas at welding operation points.
ensure that the whole process of waste gas from generation, collection,
treatment to discharge complies with regulatory requirements. To guarantee ? Improving waste gas treatment efficiency: For organic waste gas, we adopt combined treatment technologies including
emission compliance, the Company entrusts third-party institutions to activated carbon adsorption, catalytic combustion and Regenerative Thermal Oxidation (RTO). We continuously upgrade
conduct regular monitoring, and has established a waste gas emission environmental protection equipment, for example, equipping the anti-corrosion workshop with an advanced dust prevention
monitoring data system based on the composition and content of pollutants and paint mist treatment system.
to realize real-time monitoring of emission conditions, ensuring that all
? Improving end-of-pipe treatment measures: We have installed fume purification equipment outside the welding material
indicators are always within the standard limits.
drying area to further reduce the fume concentration in the workshop.
The waste gas generated in the production process mainly includes volatile
? During the reporting period, through technology and equipment upgrading, all production facilities of Dajin Heavy Industry
organic compounds (VOC), nitrogen oxides (NOX) and fume, which are
have effectively reduced waste gas emissions, while achieving a dual reduction in energy consumption and operating costs.
principally derived from fume from cutting, grinding and welding processes,
organic waste gas from spray painting processes, and dust from sandblasting
processes. All waste gas is purified by treatment facilities before being
discharged up to standard.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Case Study
Upgrading and Renovation of VOCs Treatment Equipment at Zhangjiakou Facility Upgrading of Waste Gas Treatment Equipment in the Coating Workshop at
Panjin Facility
Case
As a key link in the Company’s wind power tower production, the Baita Workshop’s original VOCs To address the limitations of the original activated carbon adsorption equipment, including limited
treatment system had shortcomings including low treatment efficiency (only 85%), high energy treatment efficiency, frequent consumable replacement, and potential secondary pollution risks,
consumption, and elevated operation and maintenance (O&M) costs. To improve environmental the coating workshop of Panjin Facility has carried out a full upgrade of the waste gas treatment
performance, the facility upgraded the waste gas treatment process, adopting an integrated system, adopting the Regenerative Thermal Oxidation (RTO) process with a supporting waste heat
treatment solution combining dry filtration, zeolite rotor, and Regenerative Thermal Oxidation (RTO). recovery unit. Through high-temperature oxidation technology, the new system has lifted the waste
The new process first effectively removes paint mist through dry filtration, then uses a zeolite rotor gas decomposition efficiency to over 99%, fully complying with emission standards. Meanwhile, it
to achieve efficient adsorption and concentration of VOCs, and finally completes thorough oxidative utilizes the recovered heat energy for heat supply in production processes, which greatly reduces
decomposition of VOCs under high temperature in the RTO unit. Meanwhile, it efficiently recovers energy consumption.
combustion heat energy to realize energy recycling.
After the completion of the renovation, the workshop has achieved a sharp reduction in waste
After the completion of the renovation, the waste gas treatment efficiency was significantly gas emissions, and the energy consumption per unit of output value has decreased by over 5%.
increased to 94%. The annual VOCs emissions were reduced from 7.43 tons to 2.97 tons, with The upgrade has simultaneously delivered the dual goals of environmental compliance as well as
an annual electricity saving of 1,938,000 kWh and a reduction of approximately 1,028 tons of energy and cost reduction, which further improved the Company's environmental management and
carbon dioxide emissions. At the same time, the automation level of the system was synchronously operational efficiency.
improved, further enhancing the environmental management capability. This upgrade has not only
greatly improved environmental performance, but also delivered remarkable economic benefits and
management optimization, realizing multi-dimensional value enhancement.
Case
Upgrading of VOCs Treatment Equipment at Zhangjiakou Facility Upgrading of Waste Gas Treatment Equipment in the Coating Workshop at Panjin Facility
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Waste Management
We strictly abide by national laws and regulations including the Law of the
Disposal Measures for Domestic Waste and General Industrial Waste
People's Republic of China on the Prevention and Control of Solid Waste
Pollution and Measures for the Administration of Hazardous Waste Business
Licenses , and fully implement relevant national and industry standards
including the Standard for Pollution Control on Hazardous Waste Storage . Waste paper generated in daily office work shall be preferentially reused as secondary paper.
On this basis, the Company has formulated a series of internal systems and
Domestic
measures, including the Waste Management Standard, Regulations on
Waste
the Administration of Waste Areas, Regulations on the Administration
Disposal Non-confidential waste paper that cannot be reused shall be placed into recyclable waste collection
of Hazardous Waste Storage and Disposal, and Hazardous Chemicals
bins together with waste cartons, waste beverage bottles and other similar items. After unified
Management Standard , to further clarify all management processes and
collection, we entrust a third party for disposal to maximize resource recycling.
operating specifications, and ensure the legal and compliant disposal of waste.
The Company takes three categories of waste generated in production and
operation, namely general industrial waste, domestic waste and hazardous
waste, as the management and control objects, and systematically advances Waste wooden packaging, pallets and other such items shall be collected by the generating
waste management in adherence to the solid waste treatment principle of department at the designated location during operation.
"reduction, recycling and harmless disposal". For different types of waste,
we have set up dedicated classified collection areas, such as domestic waste
collection areas and general industrial waste collection areas, and require Waste welding wire reels generated from welding operations shall be temporarily stored at designated
all departments to store waste by category in strict accordance with the General locations in the workshop.
procedures, so as to achieve efficient recycling and reuse. Industrial
Waste
During the reporting period, the Penglai Facility revised the Regulations on Disposal Waste metal materials, welding wires, metal parts and tools shall be placed into waste metal
the Administration of Waste Areas, optimized the classification method of collection bins.
valuable waste, focused on clarifying the job responsibilities of waste area
administrators, continuously improved the standardization and refinement level
of waste management, and provided a strong guarantee for the Company's Discarded abrasive discs, cutting discs, as well as personal protective equipment (PPE) not
green production and environmental protection. contaminated with oil or paint, and cleaning waste shall be placed into general waste collection bins.
We implement strict full life cycle management for all types of hazardous At the disposal stage, we entrust third-party professional institutions implemented QR code scanning for warehousing and outbound
waste, including waste diesel oil, waste engine oil, waste paint, thinners, with corresponding qualifications to conduct the final disposal operations, which greatly improved management efficiency and data
waste toner cartridges and ink cartridges. The management covers all links of hazardous waste, so as to ensure that all hazardous waste is accuracy.
of generation, storage, transportation and final disposal, with full-process disposed of in a safe and compliant manner. Through the above
The application of the intelligent system has transformed hazardous
monitoring fully implemented. measures, the Company has achieved closed-loop management
waste management from traditional manual recording to digital
and control of hazardous waste, which effectively guarantees
Each production facility conducts standardized classification, clear labeling and automated operation, reducing human errors and operational
environmental safety and employee health.
and accurate recording of hazardous waste in accordance with the risks, and ensuring full traceability of each batch of hazardous waste
requirements of local laws and regulations, and has set up an independent To improve the refinement and intelligent level of hazardous throughout the whole process. Through real-time data monitoring
hazardous waste storage room. Through scientific layout and rigorous waste management, the Penglai Facility completed the intelligent and accurate information flow, managers can timely grasp inventory
management systems, we ensure that hazardous waste will not cause any system renovation of the hazardous waste warehouse in 2025. dynamics, abnormal conditions and flow direction changes,
adverse impact on the working environment and employee safety during This renovation not only installed weighbridges and networked providing a solid data foundation for subsequent compliant disposal
storage, transfer and treatment. monitoring equipment to realize automatic collection and real- and supervision.
time reporting of hazardous waste warehousing data, but also fully
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Noise Management
Dajin Heavy Industry strictly abides by laws and regulations including the Law of the People's Republic of Case Study
China on the Prevention and Control of Environmental Noise Pollution . We systematically sort out and
investigate potential internal noise hazards, and have adopted a series of effective measures targeting Base Protection with Waste Rubber by the Logistics Workshop of
production processes that tend to generate high-intensity noise, such as cutting and sandblasting. Penglai Facility
The Company continuously upgrades equipment and facilities, replaces them with low-noise apparatus
to reduce noise sources at the source. We also optimize material use procedures and improve operating To address the issue of excessive cotton quilt consumption in the protection process of wind turbine
specifications to further lower noise levels in the working environment. During project construction, tower barrel bases, the logistics workshop of Penglai Facility has innovatively put forward a process
reconstruction and expansion, the Company pre-plans noise prevention and control measures, including improvement solution based on recycling principles. We collect waste rubber eliminated from
foundation vibration damping for equipment, sound insulation treatment through workshop structure, returned sea freight trailers, and convert it into reusable base protection pads through cleaning,
installation of mufflers for key noise sources such as fans, and rational layout of production areas to cutting and bonding treatment to replace traditional disposable cotton quilts.
reduce noise superposition and diffusion, so as to minimize the impact on the surrounding environment The upgraded rubber protection pads have excellent durability and can be reused more than 30
and employees. The Company attaches great importance to employees' occupational health and safety, times, which significantly reduces the procurement demand for cotton quilts and waste generation.
and has formulated specialized measures for noise protection and related issues. For relevant details, This solution not only realizes the efficient recycling of resources, lowers production costs and
please refer to Chapter 2.2 Safety and Innovative Production in the Social Section. environmental burden, but also promotes the implementation of the green manufacturing concept
As of the end of the reporting period, the Penglai Facility has obtained the Class II standard certification in the workshop. By converting waste materials into high-value production auxiliary materials, the
under the Noise Standard for Boundary of Industrial Enterprises (GB 12348-2008) . All noise indicators Company has effectively reduced its reliance on virgin resources.
of the project comply with the corresponding requirements of the Emission Standard for Boundary During the reporting period, this recycling solution has cumulatively saved 1.25 tons of cotton
Noise of Industrial Enterprises (GB 12348-2008) and the Environmental Quality Standard for Noise quilt resources, demonstrating the Company's active exploration and sense of responsibility in
(GB 3096-2008) , which effectively guarantees the compliance of the production environment and the environmental protection, cost reduction and efficiency improvement.
health of employees.
Circular Economy
We actively practice the core philosophy of "circular regeneration", and continuously improve the level of
comprehensive resource utilization. By building a closed-loop recycling system for internal production waste,
and working with suppliers to explore reuse pathways in the procurement process, the Company promotes
the conversion of various types of waste into resources, thereby systematically reducing resource waste and
environmental impact.
During the reporting period, each production facility actively explored practices for resource recycling. We not
only carry out remanufacturing and reuse of production surplus materials and waste, but also implement the
circular concept throughout the whole process of tooling management: we consider the subsequent reuse
potential at the design phase to ensure cross-project compatibility; at the application phase, we actively
explore models such as the shared use of storage and construction tooling, which effectively improves the
cyclic use efficiency of tooling.
This series of measures has promoted the efficient circulation and maximized value of internal resources of
the enterprise, and demonstrates the Company's active commitment to advancing the circular economy and
fulfilling its social responsibilities.
Replacement of Cotton Quilts with Waste Rubber for Wind Turbine Tower Barrel Base Protection
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Case Study
Innovative Recyclable Tooling Developed by the Closing Workshop of Panjin Facility
To address the pain points of low efficiency, high mechanical dependence and large material
consumption in traditional hull section support operations, the closing workshop of Panjin Facility
has innovatively developed a reusable screw-type stabilizer frame tooling. With a stable structure
and convenient assembly and disassembly, this tooling can be operated with only a forklift,
completely replacing the original complex operation mode that required the coordinated use of truck
cranes, forklifts and aerial work platforms, which took an average of 2 hours per single piece.
This initiative not only significantly improves installation efficiency and reduces labor and equipment
costs, but also greatly cuts down material loss and hot work demands through its outstanding
reusability. While enhancing operational safety and environmental performance, it has put into
practice the sustainable development concept of resource recycling.
Phased Targets for Circular Economy of Penglai Facility
By 2030, the production recycling rate will reach no less
than 90%. Full circularity will be achieved by 2040.
In 2025, the production recycling rate hit 96.1%, making
steady progress toward the medium and long-term targets.
Stabilizer frame adopting spiral support structure
Water Resources and Wastewater Management
Dajin Heavy Industry is committed to systematically advancing the conservation and efficient utilization of water resources. In the production process, we continuously reduce water intensity for
production by implementing circulating water systems and promoting water-saving processes and equipment. In the office operation process, we comprehensively enhance employees' awareness of
water conservation through measures such as posting signs and carrying out publicity and training. During the reporting period, the Company had no issues in accessing applicable water sources.
The wastewater generated by the Company is mainly domestic sewage, which is discharged to urban sewage treatment plants after compliant disposal. No industrial wastewater is generated during
our operation.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Biodiversity Conservation
Dajin Heavy Industry deeply recognizes the urgency and importance of biodiversity conservation. We strictly Financial Disclosures (TNFD) Framework . It systematically identifies and assesses biodiversity risks, conducts
abide by national and local relevant laws and regulations including the Law of the People's Republic of China in-depth analysis of their impact pathways and consequences, and evaluates the effectiveness and adequacy
on Environmental Impact Assessment and Regulations on the Administration of Environmental Protection of existing control measures. Meanwhile, the Penglai Facility has established a five-stage closed-loop
of Construction Projects , actively respond to the spirit of the United Nations Convention on Biological management mechanism of "risk identification – risk assessment – control measures – operation evaluation
Diversity (CBD) and the Kunming Declaration . We have also issued the Biodiversity Statement , continuously – dynamic improvement", adopted a hierarchical management and control strategy of strict control for high
improved the management system for biodiversity conservation, and systematically incorporated the risks, supervision for medium risks, and tracking for low risks, and clarified the responsibilities for various
biodiversity strategy into the ESG management system to drive the sustainable development of the Company. control measures to specific departments, so as to ensure the continuous optimization and dynamic update of
management and control measures.
During the reporting period, the Penglai Facility formulated internal procedures for the Biodiversity Risk
Assessment Report with reference to the EU Biodiversity Strategy and the Task force on Nature-related
Biodiversity Risk Identification Risk Control Measures Operation Evaluation
To strengthen biodiversity conservation, Dajin Heavy Industry conducts Throughout the whole process of project construction and operation, the The Penglai Facility prepares an annual biodiversity
comprehensive and scientific assessments at the site selection stage of new Company proactively implements a variety of protection measures to minimize operation evaluation report, which fully covers
projects, to accurately identify factors that may affect biodiversity, including disturbance to ecologically sensitive areas including natural habitats, wetlands, the control effectiveness of all identified risk
potential environmental pollution and natural disasters, so as to avoid risks forests, wildlife corridors and agricultural land, and continuously carries out items. Through scientific data analysis and on-site
at the source. All operating sites of the Company have undergone detailed ecological conservation work to ensure the sustained health of the environment. inspections, the Facility systematically evaluates the
surveys and investigations, with their locations confirmed to be outside the actual effectiveness of ecological protection work,
In terms of visiting vessel management: The Company has established a
scope of ecological protection red lines. We strictly abide by the control providing a reliable basis for subsequent management
sound vessel waste management system, and signed vessel oily wastewater
requirements for ecological protection red lines, which fully reflects the optimization.
and garbage disposal agreements with professional third-party institutions.
Company's high attention to ecological security.
We require shipowners to strictly abide by the International Convention for
the Prevention of Pollution from Ships (MARPOL) and relevant laws and
regulations during voyages for our Company, and mandatorily implement the Dynamic Improvement
whole-process closed-loop management of liquid pollutants covering "on-
Risk Assessment board storage – port reception – onshore disposal", to ensure timely and
At the corporate level, the Company actively engages
compliant disposal of vessel waste and achieve zero discharge of vessel liquid
with social organizations and the media through
pollutants into the sea. Meanwhile, through the implementation of ballast water
On this basis, the Penglai Facility further conducted a systematic multiple channels, extensively promotes the concept
management standards and the agreed removal and disposal of domestic
assessment of the potential impacts of manufacturing, operation and of biodiversity conservation, and continuously
sewage, we have effectively mitigated the impact of vessel operations on
terminal operations on the surrounding ecosystems and ecosystem raises protection awareness among internal and
coastal aquatic ecosystems and benthic organisms.
service functions, and identified and assessed four key biodiversity risks, external stakeholders. For employees and partners,
namely atmospheric pollutant emissions, water pollution, toxic impacts of In terms of water pollution prevention and control: The Company has effectively the Company carries out regular, diverse themed
coating paints, and domestic sewage discharge. Through the scientific risk reduced the potential harm to the reproductive health of surrounding fish and education and professional training to enhance their
assessment mechanism, the Facility can formulate targeted management plankton from coating operations, through measures including the selection cognitive level and practical ability, and drive the
measures to strengthen the protection and restoration of the ecological of low-toxicity coatings, strict implementation of Material Safety Data Sheet continuous improvement of biodiversity management
environment. (MSDS) reviews, and the installation of anti-splash facilities. across all facilities.
Social
Topics Addressed:
? Product and Service Quality
? Health and Safety
? Innovation
? Information Security and Privacy Protection
? Employee Rights
? Employee Development
? Compensation and Benefits
? Diversity
? Public Welfare Initiatives
Contribution to the SDGs
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Dajin Heavy Industry consistently adheres to the guiding principle of "Quality as the Foundation, Integrity as the Core". We integrate quality management throughout the entire value chain. By establishing robust
systems, implementing precise controls, and fostering a quality-oriented culture, we provide global customers with high-standard, highly reliable products, thereby solidifying the quality foundation for the Company's
sustainable development.
Quality Governance System Quality Management Strategy
To achieve this goal, Dajin Heavy Industry has established a comprehensive quality management system. With customer needs at its core, Dajin Heavy Industry embeds quality commitments into contracts, clearly
the system achieves standardized management across all processes, advocates for a quality culture with full employee participation, defining quality and delivery requirements to fulfill its core promise of "
and realizes a quality governance system that is company-wide, standardized, systematic, scientific, refined, and traceable. This system Guaranteed Quality and Delivery ". In the specific execution process, the
supports the Company's high-quality development and delivers trustworthy products and services to global customers. Company implements full-process quality management and construction
supervision control. For each project, customized quality documents are
compiled, systematically integrating internal management standards
Consistently prioritize customer requirements
and expectations as the foremost principle in with specific client requirements. At critical stages such as raw material
quality management. inspection, process acceptance, and finished product shipment, we actively
cooperate with client-assigned resident supervisors for on-site monitoring,
ensuring transparency and controllability at every step. Through full-
Conduct early-stage Conduct periodic evaluations process control and multi-party collaboration, the Company consistently
quality planning for each and improve processes to fulfills its quality and delivery commitments to clients.
project to ensure quality Clients First enhance product and service
management aligns with quality.
client specifications and
requirements, thereby
meeting client needs and
expectations.
Front-end Continuous
Planning Improvement
Penglai
Facility Quality
Management
Policy
Quality Full Participation
Control
Establish a comprehensive ISO 9001 Quality Management System
quality process control Certificate (Penglai Facility Example)
Data-driven
system to monitor the entire
production process, including Ensure all employees
raw material inspection, in- participate in quality
process quality verification, management and cultivate As of the end of the reporting period, all of the Company's
and finished product testing. company-wide quality long-operate production facilities have been certified to the
awareness.
ISO 9001:2015 Quality Management System.
Utilize scientific data analysis to identify issues
and opportunities for improvement.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Furthermore, in line with its business profile, the Penglai Facility has obtained multiple authoritative international certifications, including EN 1090 EXC4 steel structure manufacturing certification, ISO 3834 welding
quality management system certification, the Japanese Industrial Standard (JIS) Class H certification, and the DNV-CP-0352 Welding Workshop Approval Certificate. These certifications not only further enhance
quality assurance capabilities during the production process but also provide clients with higher product reliability and safety. With these multiple certifications, the Penglai Facility is able to meet the stringent
standard requirements of global clients across different markets and application scenarios, bringing clients greater trust and broader cooperation opportunities, thereby supporting successful project delivery and
fostering long-term collaborative success.
Measures to Improve Product Quality
Through ongoing efforts to strengthen research and improvement in product manufacturing processes, the Company continuously drives
technological innovation and equipment upgrades. This dedicated focus achieves comprehensive enhancement in both product and process
quality, resulting in significant advancements through the ongoing optimization of production techniques.
Case Study
Quality Improvement Initiatives at the
Yangjiang Facility
• Introduced semi-automatic welding systems on 8 key production
lines, enabling precise parameter control and reducing human error.
Welding is the core process in wind tower manufacturing. Process
Its quality directly determines the structural strength Upgrade • Implemented a “preheating + interlayer temperature control +
post-weld hydrogen removal” process, effectively lowering residual
and fatigue resistance of the towers. To address internal welding stress.
challenges—such as high rework costs and delivery
fluctuations caused by welding defects like porosity and
slag inclusions—and to meet the rigorous requirements
of offshore wind projects for improved welding reliability
and extended corrosion protection lifespan, the Yangjiang Quality • Added phased array ultrasonic testing equipment to achieve
Inspection 100% inspection of internal weld defects, significantly improving
Facility implemented a systematic enhancement across Improvement detection accuracy and efficiency.
three key areas: process, inspection, and personnel. Enhancement
Measures
This comprehensive approach significantly improved the • Established a welding quality traceability system, enabling tracking
of process parameters and inspection results for every weld.
stability and reliability of welding quality.
Following these optimizations, the Yangjiang Facility
achieved an annual average welding defect rate of
• Conducted specialized training for automatic welding operations,
contributed to cost reduction and operational efficiency, covering 58 welders, all of whom passed assessments and obtained
while markedly strengthening delivery assurance, Personnel certification.
elevating tower structural welding reliability, and Empowerment
• Introduced a “welding quality star rating” system, linking defect
enhancing supply chain resilience. rates to performance to motivate frontline quality improvement.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Case Study
Quality Improvement at Zhangjiakou Facility
To enhance spraying and overall process quality, the Zhangjiakou Facility
initiated a quality improvement campaign in June 2025. The campaign
targeted personnel capability development, tighter control of spray
operations, and process optimization, with the goal of increasing the
first-time pass rate for the anti-corrosion process..
The Company developed a targeted improvement plan based on
comprehensive data measurement and root cause analysis. Short-term
corrective actions were promptly implemented to address identified
issues, while long-term improvement measures were established
to ensure sustained progress. As a result, by August 2025, the first-
time pass rate for the anti-corrosion process exceeded 99.00%. These
interventions demonstrated their effectiveness, successfully achieving the
quality improvement objectives.
Anti-corrosion Operations
Non-conforming Product Control Quality Culture Development
The Company prioritizes product quality and has established a robust quality process control Dajin Heavy Industry has established a tiered, competency-based quality training framework, aligned with corporate
system. For the management of non-conforming products, a Non-conforming Product Control policies, operational processes, and new product knowledge. This system encompasses comprehensive onboarding
Procedure is in place, mandating rigorous identification, labeling, documentation, segregation, training for new hires, skill assessments and targeted upskilling for quality inspectors, quality handover and process-
review, and disposition of non-conforming items to prevent unintended use, transfer, installation, specific training for production teams, as well as qualification certification programs tailored to customer requirements.
or delivery. This procedure applies across the entire production lifecycle—from raw material intake The Company subsidizes certification expenses to alleviate employee financial burden and strengthen technical expertise.
to finished product shipment—encompassing critical control points such as incoming material
In 2025, the Penglai Facility conducted 54 training sessions—45 internal and 9 external—addressing core competencies
inspection, customer-supplied material inspection, in-process inspection, and final product
such as project planning, process inspection, and quality management procedures. Training was structured around
inspection. This ensures comprehensive, end-to-end quality assurance. Adhering to a data-driven
three principal modules: interpretation of quality standards, hands-on inspection techniques, and management system
methodology, the Company leverages advanced data analytics to promptly detect quality issues
implementation. This standardized, systematic approach ensures that training outcomes are effectively integrated into
and improvement opportunities, conduct root cause analysis, and implement preventive actions,
daily operations, reinforcing the organization’s overall quality capability.
thereby facilitating continuous process optimization. The Company promotes organization-wide
engagement in quality management, fostering a culture of quality awareness and accountability To further incentivize professional development and meet evolving quality standards, the Penglai Facility added 27 newly
among all employees. certified employees and renewed certifications for 8 personnel in 2025, significantly enhancing the team’s qualifications
and technical capacity. The Company actively promotes employee engagement in quality improvement initiatives,
For recurring or significant non-conformities, the Company deploys 8D (Eight Disciplines) problem-
cultivating a culture of continuous learning and self-development. These efforts underpin Dajin’s commitment to high-
solving teams and generates 8D reports, aiming to eliminate risks at their source and ensure
quality growth and enable the delivery of superior, reliable products and services to customers.
sustained quality improvement.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Case Study
Quality Improvement Training
In April 2025, the Quality Management Department organized a specialized training program focused
on preliminary project planning for structural inspection processes. The curriculum was structured
around two core modules: interpretation of project standards and quality risk management and
control, targeting all personnel involved in structural inspection activities.
The training included comprehensive analysis of relevant standards and technical specifications,
detailed breakdown of inspection workflows, judgment criteria, and identification of critical
inspection points informed by prior project experience. Additionally, the program emphasized early-
stage risk identification, equipping participants to recognize potential quality risks across production,
testing, and other phases, and to develop targeted preventive and control measures.
Through this training, participants’ proficiency in applying inspection standards was significantly
improved, their capability for early risk anticipation was strengthened, and the foundation for quality
control within the structural inspection process was consolidated. These efforts provide robust
assurance for the efficient execution and consistent quality of subsequent projects.
Quality Training at Penglai Facility
Quality Risk Management
Customer satisfaction is at the core of the Company’s operations, driving the establishment of a comprehensive During the initial project execution phase, the quality management team conducts thorough reviews of
quality risk management system that spans the entire project lifecycle. To ensure precise quality control and customer drawings and technical specifications, providing timely feedback to clarify technical challenges.
standardized inspection workflows, the Quality Management Department collaborates closely with the Non- Leveraging historical project data, the team systematically identifies potential risks at each stage, maintains
Destructive Testing (NDT) team, ensuring products consistently meet customer technical requirements and a dynamically updated risk control register, and formulates stratified response actions. This approach ensures
facilitating seamless project delivery. quality risks are identifiable, manageable, and traceable.
An early-warning indicator system has been implemented to enable tiered risk mitigation strategies. Through Based on this foundation, Inspection and Test Plans (ITPs) are developed to encompass all processes—from
structured communication, reporting, and documentation protocols, risk information is promptly disseminated raw material intake, welding, NDT, and coating, to final loading. These plans clearly specify acceptance criteria,
and addressed. All risk events are archived and analyzed to build a centralized knowledge repository, inspection frequencies, and equipment requirements. Critical inspection hold points are established at key
supporting continuous improvement through data-driven insights. Regular internal audits are conducted to process stages and customer-defined milestones. Advance inspection requests and qualified process transfers
assess the effectiveness of risk control measures. are utilized to proactively mitigate quality hazards at their source.
To further standardize risk management for overseas projects, the Overseas Project Department has developed
Establish a warning Communication, reporting, a dedicated Project Risk Management Procedure , covering risk identification, assessment, response, and
Graded Response
indicator system and record-keeping monitoring throughout the project lifecycle, thereby establishing a closed-loop management system.
The Penglai Facility continues to advance institutional process optimization. By the end of 2025, the facility had
issued 46 new institutional documents, abolished 26 obsolete ones, and optimized or upgraded 77 documents
Archiving and Summarizing Conduct an audit
compared to the beginning of the year. These initiatives further refine quality control processes, ensuring the
timeliness and effectiveness of the quality management system.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Quality Management Indicators and Objectives
Dajin Heavy Industry closely aligns with its quality policy and the core requirements of the QHSE management system, combining comprehensive
quality control throughout the entire production process with clear departmental responsibilities. The Company formulates scientifically based KPI
objectives across multiple dimensions, including HSE and quality management, technical process support, personnel management, supply chain During the reporting period, Dajin Heavy Industry
collaboration, and equipment and administrative support. Through the development of dedicated implementation plans, the detailing of performance
achievement measures, the strengthening of process supervision and assessment, and the effective implementation of closed-loop management, the
? Did not experience any significant economic loss
events attributable to quality issues,
Company ensures that all QHSE management system objectives for 2025 are thoroughly executed and efficiently achieved.
? Achieved the quality objectives for both the Offshore
Objective achievement is continuously monitored and tracked. In cases of non-conformance, the responsible department conducts root cause analysis Facility and the Onshore Tower Facility.
and formulates targeted corrective actions. The Quality Management Department maintains oversight of the corrective action process and verifies its
effectiveness, ensuring the successful fulfillment of quality management objectives.
Customer Relationship Management
Dajin Heavy Industry maintains a customer-centric development approach
Customer Complaint Handling
and has systematically established a comprehensive customer relationship
management system covering the entire cycle of pre-sales, sales, and post-
sales services. The Company receives customer complaints through multiple channels. Upon receiving a complaint, the
project manager promptly communicates it internally. Relevant departments then conduct cause investigation
and analysis, and based on customer requirements, formulate a rectification plan to ensure the measures During the reporting
are practical and implementable. Simultaneously, we develop permanent corrective actions targeting the period, Dajin Heavy
End-to-End Customer Relationship Management
root cause, establishing closed-loop control across dimensions such as process standards, management Industry
mechanisms, and technical specifications, thereby preventing the recurrence of similar issues from the source.
Pre-sales Sales After-sales
? Addressed and
resolved all
Once the rectification plan is completed, it is submitted to the customer in written form for further optimization
valid complaints
and confirmation based on their feedback. Products that have undergone rectification are submitted for
received.
customer acceptance after passing quality inspection. All documentation related to the entire complaint
Through preliminary Proactively Formulating the process is compiled and archived, providing an effective basis for subsequent issue tracing, quality data
research, real- conducting market "After-Sales Service analysis, and management optimization.
time monitoring, research and risk Management
and ongoing prevention, regularly Regulations "
Complaint Handling Process
communication, a collecting and and establishing
service management actively responding multiple complaint On-Site Issue
model with clearly to customer needs channels—including Resolution
N
defined and and feedback, telephone, WeChat,
complementary and promptly email, and written Self-Resolution
responsibilities is meeting customer correspondence—
established. requirements. to ensure smooth
After-Sales In-Factory
communication of On-Site Project Payment
Personnel Solution
customer concerns. Acceptance Collection
Deployment Development
Outsourced Resolution
Y
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Dajin Heavy Industry attaches great importance to customer feedback and is fully committed to safeguarding customer rights and interests. The Company
regularly collects and analyzes customer input using tools such as the “Customer Complaint Information Registration Form” and the “Customer Satisfaction
Survey.” All feedback is addressed with timely and high-quality responses. To ensure that any issues encountered by customers during the use of products or
services are resolved promptly and effectively, the Company has established a robust response mechanism and conducts regular follow-up visits to proactively
identify customer needs and drive continuous service quality improvement. Based on the results of customer feedback analysis, Dajin Heavy Industry actively
implements customer satisfaction enhancement initiatives. A comprehensive action plan has been developed, encompassing the refinement of evaluation
indicators, the execution of targeted improvement measures, and the establishment of a closed-loop management process. This approach facilitates rapid
communication and resolution of issues, thereby continuously improving customer satisfaction.
Customer Satisfaction Improvement Action Plan
? Redesigning a comprehensive evaluation index system, transitioning from a “single score” approach to a
Enhancing the “panoramic insight” methodology to ensure precise problem identification.
Evaluation ? Conducting holistic assessments across two dimensions—technical collaboration and issue response, as well as
System after-sales service and long-term value—with quantifiable key performance indicators (KPIs) established for
each dimension.
? Establishing a customer collaboration mechanism: Assigning a dedicated, cross-functional service team to each
key customer.
Implementing ? Implementing proactive after-sales service: Conducting regular follow-ups, maintaining customer visit records,
and transitioning towards an integrated “product + service” model.
Key Actions
? Developing a shared after-sales issue list: Creating a centralized repository of after-sales issues with targeted
solutions to enable timely access to resolutions, thereby shortening after-sales service response time and
improving service timeliness.
? Conducting regular problem analysis to identify high-frequency issues or service gaps.
Establishing ? Performing root cause analysis and corrective actions for key issues, tracing them to design, process, or
closed-loop management, formulating corrective and preventive measures, and tracking their verification.
management
? Systematically incorporating common issues identified through after-sales feedback into the closed-loop
management of production quality.
To continuously enhance after-sales service effectiveness, the Company regularly holds after-sales service review meetings to systematically assess achievements
and gaps across dimensions such as technical collaboration, issue response, and customer value. In addition, key customer service indicators are incorporated into
team performance evaluations, encouraging employees to proactively engage in customer service activities and continuously improve service quality.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Case Study
Team Customer Service Workshop
With the ongoing expansion of the Company’s international business and product portfolio, cross-border project collaboration has become
increasingly frequent. To effectively address customer requirements and enhance both cross-border operational efficiency and customer
satisfaction, the Company organized a targeted workshop with the European team. During the workshop, both parties conducted in-depth
discussions on key areas such as project execution interfaces, integrated marketing solutions, and reviews of representative projects. This
initiative not only further standardized service protocols, but also significantly enhanced cross-cultural collaboration competencies. As a
result, a robust foundation has been established for delivering more efficient and professional solutions to global customers.
Customer Service Workshop Session
Customer Service Culture Development
With the rapid development of the Company, the customer service team has gradually The FOUNDATION of Customer Service Culture
expanded, comprising members from diverse backgrounds, leading to increasingly complex
collaboration needs. To unify direction, enhance trust and collaboration among teams
to improve efficiency, and boost employee sense of belonging, Dajin Heavy Industry
actively promotes the development of a customer service culture. It deeply integrates the
"FOUNDATION" concept into team management and daily operations, building a customer-
centric service culture.
Guided by this concept, we consistently prioritize customer needs, advocating for proactively
understanding customer demands with sincerity and professional competence to ensure swift
responses. Upon receiving a customer request, the team immediately activates a collaboration
mechanism, integrating internal and external resources to develop personalized solutions
for the customer. This ensures efficient problem resolution, fully pursues the maximization of
customer satisfaction, and steadily advances the development of customer relationships along
with the continuous improvement of service quality.
Responsible Marketing
As the market expands and internationalization accelerates, Dajin Heavy Industry fully recognizes the critical or misleading advertising. During project execution, all technical solutions are clearly and thoroughly
importance of responsible marketing. The Company consistently upholds an integrity-driven marketing communicated to clients at the initial stages, ensuring accurate understanding of essential information such
philosophy, strictly adhering to regulatory requirements across both domestic and international markets. as quality standards and compliance certifications. By steadfastly honoring commitments and maintaining
Marketing communications are focused exclusively on authentic product performance and technical transparency, Dajin Heavy Industry has cultivated a marketing ecosystem built on mutual trust and openness.
specifications. To ensure standardized and compliant marketing practices, Dajin Heavy Industry has established This approach not only protects the Company’s reputation, but also delivers a reliable and reassuring
a comprehensive Code of Conduct that explicitly defines integrity policies and prohibits all forms of false partnership experience for clients, fostering sustainable, long-term collaborative relationships.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Efficient Production
As industry technologies and market demands advance, Dajin Heavy Industry continuously optimizes its high-efficiency production management systems. Focusing on self-reliance and process
controllability, the Company intensifies research and innovation in manufacturing processes, consistently driving technological upgrades and quality improvement. The established Patent
Application and Reward Management Measures effectively stimulate employee creativity, accelerate the transformation of scientific and technological achievements into productive value, and
provide strong technical support for sustainable development.
Case Study Case Study
Low-Carbon and Intelligent Welding Process Upgrade at Xing'anmeng Facility Welding Process Optimization at Penglai Facility
Faced with challenges such as high To meet the stringent requirements for welding quality and structural reliability in thick plate
energy consumption, low efficiency, and fabrication for offshore wind monopile manufacturing, the Penglai Facility further advanced its
inconsistent quality in welding operations, monopile welding process transformation in 2025. Optimization trials were conducted for non-
the Technical Process Department at gouging and non-back-chipping welding techniques, eliminating the need for carbon arc gouging
the Xing'anmeng Facility proactively and plate flipping during thick plate welding operations. For the splicing of ultra-thick plates
implemented systematic process exceeding 60mm, the facility implemented a composite welding method: Flux-Cored Arc Welding
optimization. By refining submerged (FCAW) was utilized in the overhead position for the root pass, while Submerged Arc Welding
arc welding parameters, precisely (SAW) was applied in the flat position for subsequent filling passes. This fully integrated approach
matching welding consumables and significantly reduced work cycle duration, energy consumption, and safety risks. In parallel, the
flux, and adopting advanced techniques facility enhanced fracture toughness evaluation and residual stress testing for thick-plate welds,
such as multi-layer multi-pass welding validating weld crack resistance and durability under complex marine conditions. This technological
and narrow-gap welding, the facility advancement not only improves the manufacturing efficiency and quality of large-scale offshore
significantly improved joint density and wind foundation components, but also provides robust support for low-carbon production,
crack resistance. The standardization of accelerating the Company’s progress toward green and intelligent manufacturing.
post-weld heating, heat retention, and
controlled cooling procedures ensured
welds met low-temperature impact
toughness requirements, raising the non-
destructive testing (NDT) pass rate to
over 99.2%.This initiative not only reduced
welding material costs and defect rates,
but also substantially lowered carbon
emissions and pollutant output, enhanced
the workshop environment, and delivered a
replicable green intelligent manufacturing
solution for other Company facilities and
the broader industry. Welding Process Technology
Optimization of Non-Gouging and Non-Back-Chipping Welding Techniques
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Case Study
Independent Development of Lightweight Adjustable Lifting Hook at
Penglai Facility
During project execution, the Penglai Facility encountered challenges in lifting
oversized cylindrical sections, as existing lifting methods and equipment capacities
were insufficient to meet operational demands. Upgrading the workshop crane
capacity or fabricating dual-crane S-hooks would have entailed significant
costs and extended timelines. To address these limitations, the Penglai Facility
independently engineered a lightweight, adjustable lifting hook with a rated
capacity exceeding 100 tons, specifically designed for handling large tower
sections. This innovative lifting solution effectively overcame the difficulties
associated with overweight cylinder section handling, improved operational
efficiency and safety, ensured reliable project execution, and provided valuable
technical experience for future similar applications.
Lifting Operations with Adjustable Hooks
University-Industry Collaboration
Dajin Heavy Industry actively advances collaborative research
Case Study
and development with universities, establishing long-term
partnerships with higher education institutions and research
organizations to jointly undertake technology innovation and pilot University-Industry Collaborative R&D on Ultra-Large Monopile Welding Technology
projects. By leveraging industry-university-research platforms, the
Company targets critical industry technologies and accelerates the To drive breakthroughs in critical industry technologies, the Penglai Facility established a long-term partnership with the Yantai Institute of
transformation and commercialization of scientific and technological Harbin Engineering University to jointly develop advanced manufacturing technologies for ultra-large offshore wind monopile foundations.
achievements. This approach not only enhances the relevance A joint team was formed, focusing on the challenges of welding ultra-thick steel plates, conducting fatigue assessment, and tackling high-
and foresight of R&D activities, driving sustainable development efficiency welding process optimization.
for the Company, but also fosters the cultivation of high-caliber During the project, the team developed a comprehensive welding fatigue evaluation and control technology framework, and successfully
talent, promotes knowledge exchange, and advances scientific and implemented semi-narrow gap twin-arc twin-wire welding technology, significantly improving welding efficiency and joint reliability.
technological progress. It supports the construction of an open,
collaborative, and efficient innovation ecosystem, strengthening This collaboration not only accelerated high-quality and high-efficiency manufacturing of ultra-large monopile foundations, but also fostered
industry R&D capabilities and contributing to broader societal the development of highly skilled technical talent, promoted deep integration of industry, academia, and research, and contributed positively
scientific and technological advancement. to technological progress and the advancement of the green energy sector.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
To promote shared prosperity and sustainable growth within the industry, Dajin Heavy Industry actively participates in the
development of technical standards, maintaining a leadership position in the wind power equipment manufacturing sector. The
Company contributes to the formulation of national standards, such as Wind Energy Generation Systems – Safety Inspection
Methods for Wind Turbine Tower Structures , which establish standardized safety monitoring requirements for tower structures,
enhance operational safety and reliability, and facilitate supply chain collaboration and technological advancement.
In addition, Dajin Heavy Industry has developed a series of enterprise standards, including QDHI 0001H-2024 Technical
Specification for Twin-wire Submerged Arc Welding, QDHI 0002H-2024 Enterprise Standard for Wind Tower Workpiece
Assembly, Tack Welding, and Root Welding (published), and QDHI 0003H-2024 Manual Carbon Arc Gouging (published).
These standards systematically regulate critical process flows and operational techniques, improving welding quality stability and
production consistency.
The formulation and implementation of these standards provide replicable and scalable frameworks for high-quality industry
development, further advancing technological progress and fostering industrial synergy.
Production Safety
Dajin Heavy Industry consistently regards production safety as a fundamental pillar of sustainable development, and is committed to establishing a scientific, systematic, and efficient production safety management
system. The Company has developed comprehensive safety regulations that encompass the entire supply chain, with management measures covering every stage from raw material procurement and manufacturing
to product delivery. Safety responsibilities are clearly defined across all organizational levels, and rigorous safety inspections, hazard identification, and corrective actions are systematically implemented to ensure risk
control and closed-loop management throughout all processes.
Leveraging robust safety management practices and a continuous improvement framework, Dajin Heavy Industry has achieved ISO 45001 Occupational Health and Safety Management System certification,
demonstrating the Company’s safety management has reached internationally advanced levels.
Management System Development
Guided by the core principles of “Safety First, Prevention-Oriented, Integrated Management, and Participation by All Employees”, Dajin Heavy Industry
systematically advances the development of its quality and safety management systems. Leveraging a suite of management tools—including the Quality and
During the reporting period, Dajin
Safety Manual, HSE Risk Assessment Management Procedures, HSE Accountability Standards for Violations and Negligence, and HSE Monthly Evaluation
Heavy Industry
Forms —the Company has established a comprehensive institutional framework encompassing occupational health, production safety, and emergency response.
This ensures all operations are conducted in strict accordance with established policies and procedures. ? No severe injury or above lost
workday incidents occurred
The Company rigorously complies with national laws and regulations, including the Occupational Disease Prevention and Control Law of the People’s Republic at any site, with a Lost Time
of China , and continually formulates and updates the “Top Ten Safety Red Lines” requirements. It also refines safety performance evaluation, incentive, and Injury Frequency Rate (LTIFR) of
penalty mechanisms to ensure the effectiveness and applicability of management system documentation. 1.2468 per million work hours.
To meet the stringent safety and quality requirements of both domestic and international clients, and to proactively address the technical standards of the global ? The LTIFR at the Penglai Facility
wind power equipment manufacturing industry, Dajin Heavy Industry takes active measures to align its management systems with international benchmarks. was 0.9710 per million work
Through systematic and standardized management practices, the Company continuously strengthens its safety and quality management capabilities, providing hours.
robust assurance for high-quality development and fulfilling its social responsibility for workplace safety.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Occupational Health Management Measures
The Penglai Facility systematically advances occupational health management by establishing a comprehensive The facility emphasizes individualized employee protection by providing job-specific PPE, with clear distribution
closed-loop system encompassing issue identification, risk assessment, protective implementation, awareness schedules and replacement standards to ensure proper allocation and effective utilization. Through regular
enhancement, and continuous improvement. This framework provides robust assurance for both employee occupational health training, employees’ awareness of occupational disease hazards is heightened, improving
health and enterprise safety. Regular in-service occupational health examinations are conducted, with their personal protection practices and standardized operational capabilities. These measures collectively
employee health monitoring records maintained to enable early detection and intervention for occupational promote the effective implementation of occupational health management and safeguard employee wellbeing.
diseases and health anomalies. Targeted management of key occupational hazards—such as welder’s
pneumoconiosis, noise exposure, and carbon monoxide—is carried out in accordance with the Personal
Protective Equipment (PPE) Usage Management Standard . High-risk areas are strictly monitored and
accurately identified, with protective measures continuously optimized.
Case Study
Enhancing Hearing Protection to Prevent Noise Hazards During the reporting period, Dajin Heavy Industry
In response to operational noise risks, the Penglai Facility has implemented The HSE Management Department conducts specialized safety
? The Penglai Facility regularly conducts
occupational health examinations for
a comprehensive suite of noise control measures in accordance with inspections and rigorously addresses any non-compliance. In employees during their tenure, achieving
HSE Management Department Circular No. 8 (2025) and the Personal addition, departments organize targeted training sessions on hearing a 100% examination rate for personnel in
Protective Equipment (PPE) Usage Management Standard . In designated protection, disseminating information about noise hazards and occupational disease risk positions during the
areas where noise levels meet or exceed 80 decibels—such as the preventive measures to enhance employee awareness and compliance. reporting period.
structural workshop and air compressor room—the mandatory use of Inspections are also carried out to verify the provision and proper
hearing protection equipment, including earplugs, is strictly enforced for use of hearing protection equipment among subcontractor teams,
all operators. High-noise tasks, including grinding, cutting, and welding, ensuring comprehensive protection for all personnel. These measures
explicitly require the operators to use of earplugs, and this requirement is effectively mitigate occupational health risks, such as noise-induced
integrated into daily supervisions. hearing loss, and strengthen the facility’s overall occupational health
management.
Safety Management and Security
The Company conducts comprehensive and systematic annual inspections of all production processes with and possessing fundamental medical knowledge, enabling accurate injury assessment and standardized rescue
potential safety risks, and continuously enhances its safety assurance mechanisms to ensure safe operations. procedures. These measures collectively strengthen the professional capacity and security level of the facility’s
The Penglai Facility prioritizes production safety and the protection of employee wellbeing by systematically emergency response, establishing a robust, all-encompassing, and round-the-clock safety defense system to
building an efficient and professional emergency response system. Production areas are equipped with effectively safeguard employee lives.
Automated External Defibrillators (AEDs) to enable immediate first aid and minimize life-threatening risks. In 2025, in alignment with HSE system requirements and the annual safety audit plan, the Penglai Facility
A 24-hour emergency contact hotline ensures uninterrupted communication, allowing production staff processed a total of 872 safety work permit approvals for high-risk operations, and newly established
to rapidly connect with the emergency response team at any time. The facility also deploys department- or upgraded 15 safety risk control procedures, management systems, and record forms. The facility also
specific emergency vehicles, equipped with essential first-aid equipment and staffed by trained professionals, conducted 36 specialized safety inspections, continuously optimizing safety risk identification and assessment
ensuring that emergency teams can promptly reach the scene to provide urgent medical assistance and safe procedures for relevant operations.
transportation.
In 2025, all projects successfully achieved the safety targets of “zero casualties and zero environmental
In addition, the Penglai Facility employs dedicated medical rescue personnel certified in Red Cross First Aid incidents.”
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Safety Culture and Employee Wellbeing
Centralized HSE Induction
The Company places significant emphasis on enhancing employee safety awareness and competency, Training for New Employees
continuously conducting diverse safety training programs and practical emergency response drills. These
initiatives comprehensively strengthen employees’ safety consciousness, emergency handling skills, and on-
site adaptability. To address gaps in job experience and safety knowledge among new hires, the Company
has established a systematic onboarding training and assessment mechanism. Upon successful completion
of the training, new employees are issued a distinctive badge for their safety helmet, signifying their status
during the protection period for new staff. During the reporting period, the Penglai Facility organized 110
centralized HSE induction training sessions for new employees, with a total of 518 participants. This ensured
a 100% safety training coverage rate for all new hires.
During the reporting period, Dajin
Heavy Industry
? A total of 295 themed safety training sessions were organized for on-duty employees New Employee Helmet Badge
throughout the year, with 4,111 participants.
? According to the plan, 12 safety emergency drills were conducted, involving approximately
"Go/No-Go" Safety Meeting for Port
Consolidation and Vessel Loading
Mental Health and
Safety Seminar
While ensuring production safety, the Company places high importance on the development of employee
physical and mental health and the cultivation of a safety culture. The Penglai Facility continuously
strengthens the foundation of its safety culture and fortifies its production safety defenses through regular
awareness campaigns and capacity-building initiatives, ensuring stable and orderly production operations.
The facility produces safety signage, posters, and other promotional materials, and organizes activities
such as the Production Safety Month, mental health lectures, and heatstroke prevention and cooling care
initiatives. These efforts enhance employees' sense of belonging and safety awareness, actively fostering a
corporate culture where "everyone pays attention to safety."
Safety Production Month Launch
Ceremony
Heat Stress Prevention and Care
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Safe Shipping
Dajin Heavy Industry closely pays attention to the health, safety and well-
being of its crew members on vessels. It strictly complies with relevant shipping
Due to the characteristics of the shipping industry such as crew members’ long-term offshore work, closed environment, high
regulatory requirements and adheres to the core principle of "Safety First,
work pressure and inconvenient communication with the outside world, the Company has taken "Caring for the physical and
Prevention Foremost, Comprehensive Governance, and All-staff Participation".
mental health of crew members and strengthening the defense line for offshore operations" as the core theme and launched a
The Company has established a comprehensive system covering employees’
comprehensive and multi-level service program for the physical and mental health of crew members.
rights and interests, occupational health, safety production, and emergency
response, etc., ensuring that all work is carried out in accordance with
regulations and rules. ? Mental health counseling: Crew members can consult psychological issues with the supervisors of the Crew Department
or HR Department or with the psychological counselors at any time through various methods such as phone calls, text
The Company's crew members’ rights protection system is based on the messages, or video calls, etc. The consultation process is strictly confidential to protect the privacy of the crew members. It
recruitment management process and guarantee system of the HR Department, helps the crew relieve psychological pressure and resolve psychological conflicts.
while also meeting the specific requirements of relevant conventions of
the International Maritime Organization (IMO), the International Labour ? Health Checkup Service: Before boarding the vessel, crew members are required to undergo a comprehensive physical
Organization (ILO), and the regulations of the flag state. It covers the entire examination at a reputable hospital. The cost is reimbursed by the Company. The examination institutions shall be selected
process from "recruitment - employment - boarding/posting - on board/ from the hospitals or professional health checkup centers that have the qualifications for occupational health examinations
on duty - disembarkation/resignation". Dajin Heavy Industry firmly opposes to ensure the accuracy and professionalism of the examination results.
discrimination and harassment, and prohibits the occurrence of child labor and
forced labor. ? Entertainment facilities: The vessels are uniformly planned and equipped with complete entertainment facilities to meet
the entertainment needs of the crew members, such as watching movies, TV series, singing, etc.; fitness equipment like
We have formulated a core management system for health and safety, clearly treadmills, dumbbells, and resistance machines is also provided to facilitate the crew members’ physical exercise and enhance
defining the occupational health and safety responsibilities of positions such
their physical fitness. VSAT equipment is also provided on board, allowing for 24-hour internet access for entertainment and
as the captain, chief mate, chief engineer, and ordinary crew members, and
communication with family members.
establishing the “Full Staff Responsibility Regime”. At the same time, we have
also formulated the Management Measures for Risk Identification and ? Others: Ensure healthy diet. The vessels are equipped with full-time chefs and waiters. Based on the health conditions
Assessment of Ships and the Emergency Response Plan for Ship-Specific and dietary needs of the crew members, scientific and reasonable meal plans are formulated. Food and fresh water are
Incidents , stipulating emergency events including health emergencies and replenished in time at appropriate ports.
safety emergencies, etc., to ensure that emergency situations can be responded
to quickly and effectively.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
The Company attaches great importance to information security and privacy protection. Guided by compliance and risk management, it has established a comprehensive
policy framework covering information security, data security, personal privacy protection, and information system continuity management. The Company has developed
and continually improved a set of core policies and procedures, including the Information Security Management Policy, Data Security Management Policy, Personal
Information Protection Management Policy, Information System Business Continuity Policy , and Information System Resource Management Policy . These
documents clearly define management boundaries and responsibilities, ensuring the effective protection of information security and personal privacy.
Information Security
Information Security Governance System
In 2025, Dajin Heavy Industry established an Information Security Working Group The Company continuously advances its information security system by setting phased objectives and implementation
comprising the Audit & Supervision Center, Finance Management Center, and Human roadmaps, achieving tangible outcomes. In account management, mechanisms for clearing accounts of departing
Resources & Administration Center. This group functions as the Company’s highest-level employees have been reinforced; the OA departure process has been optimized for timely account deactivation, and IT
decision-making and oversight body for information security, reporting directly to the account permission confirmation checkpoints have been introduced, enabling collaborative HR and IT controls to reduce
Chairman of the Board. The Audit & Supervision Center coordinates the development information leakage risks. For off-site data backup, the Company conducts regular remote backups of core system data,
of the information security framework, formulates improvement measures, oversees ensuring data recovery capability in the event of local disasters and safeguarding business continuity. VPN management
implementation, and investigates and reports security incidents. The Finance Management policies have been updated, with standardized VPN account application and approval processes established and remote
Center provides information technology support and assurance, while the Human Resources access controls strengthened. Collectively, these measures have significantly enhanced the Company’s information security
& Administration Center manages employee conduct and physical security, supplying posture, effectively safeguarding data integrity and supporting stable business operations.
personnel and environmental support.
Information Security Organizational Structure Achievements in Information Security System Development
Information Security Working Group Planning Roadmap ? Developed a “three-step” information security roadmap, clearly defining phased
objectives and implementation paths
Audit & Supervision Finance Human Resources & Account Management ? Mechanisms for clearing accounts of departed employees have been reinforced
Center Management Center Administration Center
? The OA departure process has been optimized for timely account deactivation
Coordinates the ? IT account permission confirmation checkpoints have been introduced, enabling
Provides information Manages employee collaborative HR and IT controls to reduce information leakage risks
development of the
technology support conduct and
information security
and assurance. physical security,
framework, formulates
supplying personnel Off-site Backup ? Conducts regular remote backups of core system data, ensuring data recovery capability
improvement in the event of local disasters and safeguarding business continuity
and environmental
measures, oversees
support.
implementation, and
investigates and reports VPN Management ? VPN management policies have been updated, with standardized VPN account
security incidents. application and approval processes established and remote access controls strengthened
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Information Security Assurance
Tiered Management
As the Company’s business expands, information security has become a vital Four-Level Information Security Classification
element for stable operations and sustainable development. To proactively
mitigate risks such as information leakage and data misuse, and to strengthen Involves national security or significant financial/legal risks, such as strategic planning, financial statements,
Strictly Confidential
bidding documents, etc.
its overall information security posture, Dajin Heavy Industry has implemented
a scientifically designed tiered information security management system.
Highly sensitive; disclosure would cause major losses, such as project schedules, supplier lists, technical
Information assets are classified according to data sensitivity into four distinct Confidential
drawings, etc.
categories: Public, Sensitive, Confidential, and Strictly Confidential. Tailored
protection strategies are applied to each classification, ensuring that data
Generally sensitive; impacts operations or personal privacy, such as employee records, daily production reports,
security controls are proportionate to the sensitivity level of the information. This Sensitive
training materials, etc.
approach enables comprehensive and effective safeguarding of all information
assets across the organization.
Public Can be disclosed externally, such as company promotional materials.
Risk Identification and Prevention
As information security risks continue to evolve, they impose increasingly Risk Identification and Prevention Process
stringent requirements on corporate operations and societal trust. Dajin
Heavy Industry’s Information Management Department proactively addresses Update IT infrastructure inventory, identify prevalent viruses and emerging attack methods, providing
these challenges by implementing ongoing risk identification, routine security Scope Identification
a foundation for risk assessment
inspections, targeted security risk assessments, and systematic account
deactivation measures. Through these efforts, the Company has established
and maintains a closed-loop management mechanism for information security Conduct regular inspections of hardware and firewalls to detect operational anomalies, configuration
risks, encompassing “detection – response – improvement.” The Company Inspection Mechanism
errors, and performance bottlenecks
strengthens its OA departure process to ensure rigorous account management
and eliminate potential security vulnerabilities. Regular off-site backups of
core system data are performed to ensure data recovery in the event of local Targeted Security Risk Perform targeted security risk assessments before launching new systems or major functions, ensuring
disasters, thereby supporting business continuity. These initiatives enhance Assessment implementation of controls such as permission design, access control, and log auditing
the confidentiality, integrity, and availability (CIA) of information systems and
data, effectively reducing the likelihood of security incidents. They protect the
privacy rights of customers and employees, uphold corporate reputation and Conduct regular audits focused on the clearance of departed employee accounts, incorporate results
regulatory compliance, and contribute to sustainable development as well as the Internal Audit
into departmental performance evaluations, and prevent unauthorized access
construction of a trustworthy societal framework.
Supplier Information Security Management
Supplier information security management is a critical component of the overall security framework. In accordance with requirements of ISO27001 Information Security Management
Systems , Dajin Heavy Industry enforces stringent information security controls over suppliers, focusing on access control and source code review. When suppliers provide remote
operation and maintenance services, they are required to access company systems exclusively via company-issued VPN and bastion host accounts, ensuring secure connectivity and
traceable user activities, thereby mitigating the risk of credential compromise. All program code developed by suppliers must undergo review and approval by internal development
personnel prior to deployment, in line with secure development lifecycle (SDLC) practices.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Security Culture Development and Incident Response Preparedness
Information security is not only a technical challenge but also requires collective participation across the organization. Dajin Heavy Industry places great emphasis
on fostering an information security culture by establishing and continuously improving training programs to ensure that all employees understand and adhere
to information security policies. Regular information security awareness training covers fundamental security principles, data protection techniques, and cyber
threat identification, equipping employees with the knowledge and skills necessary to recognize and mitigate security threats, and strengthening the overall
security posture of the organization.
Case Study Case Study
Information Security Training for New Employees OA/ERP System Emergency Drill Practice
To further strengthen information security management, since November 27, 2025, Dajin Heavy In 2025, Dajin Heavy Industry conducted multiple emergency recovery drills for its major business
Industry has incorporated information security training into the onboarding process for new systems, comprehensively testing and enhancing its information security emergency response
employees. As of the reporting period, two training sessions have been conducted, covering 103 capabilities. The drills effectively validated the completeness of emergency plans, the feasibility of
employees. procedures, and the clarity of responsibility assignments, allowing for the timely identification and
The training content is closely aligned with the Company’s Code of Conduct, emphasizing a three-step optimization of weak points. Through practical operations, it was confirmed that backup data is
approach of “Loss Prevention – Evidence Collection – Reporting.” Specific handling procedures and recoverable and that the tools and steps are effective, ensuring that business systems can be rapidly
incident response protocols are clearly defined for scenarios such as suspicious emails, system alerts, rebuilt in the event of an actual failure. Simultaneously, the drills conducted actual measurements
and information leakage. of RTO (Recovery Time Objective) and RPO (Recovery Point Objective), assessing the timeliness of
The training also clarifies the Company’s ownership of information assets, stipulating that employees system recovery and data integrity. Multi-role collaborative simulations also improved the efficiency
may not claim personal privacy rights over these assets, thereby ensuring compliant and efficient of emergency coordination among technical, business, and management personnel. During the drills,
information asset management. potential risks such as backup failures and insufficient permissions were identified, and the Company
has formulated corrective measures to effectively strengthen system protection.
To safeguard information security, the Company has established “Eight Red Lines,” strictly prohibiting
actions such as information disclosure, unauthorized device connections, data copying, and installation Through continuous emergency drills and improvements, the Company has significantly enhanced the
of malicious software. Stringent requirements are also set for password security, email verification, overall resilience of its systems and its ability to respond to unexpected events. This demonstrates its
data storage, and external data transmission authorization. commitment to risk management and sustainable operations at the ESG (Environmental, Social, and
Through systematic training, new employees’ security awareness and threat prevention capabilities Governance) level, providing more robust information security assurance for the enterprise and its
are significantly enhanced, further reinforcing the Company’s information security defense. stakeholders.
In addition to regular information security training, relevant teams within the Company conduct periodic
information security incident response drills to proactively mitigate destructive information security risks and
enhance response capabilities. These exercises not only strengthen employees’ practical skills in handling During the reporting period, Dajin Heavy Industry
unexpected information security incidents, but also improve the closed-loop management process of the
Company’s information security framework. Meanwhile, the Company continues to reinforce infrastructure ? did not experience any major information security incidents.
resilience. During the reporting period, the data center’s UPS equipment was upgraded, ensuring stable
operation and data security for critical business systems during temporary power outages.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Privacy Protection
Personal information protection is a core element of corporate compliance governance and social responsibility.
Dajin Heavy Industry adopts a comprehensive privacy management framework aligned with internationally
recognized principles such as purpose limitation, informed consent, data minimization, transparency, security
safeguards, and data subject engagement. The Information Management Department serves as the designated
data protection authority, overseeing policy development, privacy policy updates, security and compliance
management, privacy impact assessments (PIA), employee training and awareness programs, and incident
response. Operational departments are responsible for policy execution and enforcement, ensuring privacy
measures are embedded in daily business processes.
The Company’s personal information management encompasses the entire data lifecycle: collection, storage,
transmission, usage, entrusted processing, external sharing, transfer, and public disclosure. Enhanced controls
are applied to sensitive personal information and minors’ data, with strict implementation of data classification
and access control policies. For cross-border data transfers, the Company conducts security assessments in
compliance with applicable regulations, and obtains explicit, informed consent from data subjects prior to
transmission, ensuring all processing activities are lawful, compliant, and protective of data subject rights.
To uphold data subject rights, the Company has established publicly accessible complaint and reporting
channels, committing to respond within 15 working days. This ensures data subjects’ rights to be informed,
to access, and to erase their personal information are fully respected. In the event of a security incident,
the Company follows established protocols for incident recording, assessment, reporting, and stakeholder
notification, guaranteeing timely communication and effective protection of data subject interests. Regular
privacy compliance audits are conducted, focusing on the legality of processing activities, fulfillment of
transparency and notification requirements, compliance in entrusted and joint processing arrangements,
management of sensitive information and cross-border transfers, rights protection mechanisms, and system
governance. Where necessary, independent third-party audits are commissioned, and compliance audit reports
are submitted in accordance with regulatory requirements, continuously advancing the Company’s privacy
compliance maturity.
Through systematic and standardized privacy protection management, Dajin Heavy Industry effectively
mitigates the risk of data breaches, safeguards the legitimate interests of customers and employees, and
demonstrates robust governance and social responsibility in the ESG (Environmental, Social, and Governance)
context. These measures provide a strong foundation for sustainable development and contribute to building a
trustworthy and resilient societal framework.
During the reporting period, Dajin Heavy Industry
? did not experience any major privacy breach incidents.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
As Dajin Heavy Industry continues to expand its scale and diversify its international rights, labor relations, and the protection of designated groups. A suite of internal management systems—including Employee
business operations, talent has become the central driver for achieving strategic objectives Recruitment Policy, Internal Referral Policy, Compensation Management System, Performance Management System,
and sustaining ongoing transformation. To address the demand for high-caliber talent Position and Grade Management Policy , and Training Management System —has been systematically established and
generated by business growth, the Company rigorously complies with the Labor Law of implemented. This scientific and standardized closed-loop talent management system provides clear guidance for recruitment,
the People’s Republic of China and aligns with the high standards of the International promotion, motivation, training, and development, while laying a robust foundation for safeguarding employee rights and
Labour Organization’s (ILO) 8 core conventions . The Company proactively develops a ensuring the stable, sustainable operation of the enterprise..
multidimensional talent management framework encompassing employee fundamental
Talent Attraction and Retention
Talent Management Strategy
To support the Company's high-quality development goals, in 2025, the headquarters Measures for Institutionalizing Talent Review Processes
continued to systematically revise and upgrade multiple management systems, focusing
on key areas such as talent introduction and incentive development. This significantly
enhanced the systematic nature, foresight, and execution capability of the talent
management system. Various departments, in line with business development and In alignment with the Company’s business development stage, management requirements, and ESG strategic
management needs, comprehensively reviewed key dimensions such as team structure, objectives, comprehensive talent reviews are conducted using approaches such as full-staff coverage, tiered
staffing, competency alignment, work status, and ESG-related literacy. They fully advanced 1 communication, and data-driven retrospectives. The process emphasizes core talent effectiveness, with a focus on
talent inventory work, formed differentiated inventory conclusions, and implemented ESG-related competencies and responsibility awareness. This approach is characterized by comprehensive baseline
targeted improvement measures that combine talent development with ESG value. This assessment, precise diagnostics, ESG integration, and targeted interventions.
provided strong support for subsequent talent structure optimization, employee capability
enhancement, and management mechanism refinement, while also offering solid talent
assurance for the sustainable development of the Company's business.
Through the implementation of a scientific talent strategy, the Company has attracted
Based on insights from talent reviews and ESG strategic demands, the Company formulates and implements
and gathered senior talents with extensive experience in the offshore engineering and
improvement measures that advance both talent development and ESG value. These initiatives encompass
shipbuilding sectors from leading industry enterprises. Through long-term incentives 2 talent structure optimization, enhancement of ESG capabilities, and the refinement of inclusive and compliant
and the cohesive power of corporate culture, the Company effectively retains core talent,
management mechanisms.
continuously optimizes performance management and development planning, and has
built a professional and stable elite team. This provides solid assurance for the Company's
new development and the enhancement of its core competitiveness. Simultaneously, Dajin
Heavy Industry is accelerating its international layout, actively attracting top talent from
regions such as Europe, Japan, South Korea, and Australia, as well as shipping business The Company is committed to continuously deepening the normalization, precision, and ESG integration of talent
experts with backgrounds in global energy giants. This further enriches the diversity reviews. This includes refining talent assessment metrics to incorporate ESG dimensions, tracking the ESG impact
and international perspective of the Company's talent pool. By continuously optimizing 3 of improvement actions, dynamically adjusting talent strategies, and strengthening ESG-aligned incentive and
mechanisms for talent introduction, development, and retention, the Company is steadily accountability mechanisms.
consolidating its competitive advantage in the global market and comprehensively
advancing onto the world stage.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Talent Recruitment and Retention
Dajin Heavy Industry closely aligns its talent acquisition strategy with business development needs by establishing a diversified recruitment system. This system is centered on proprietary recruitment channels, supplemented
by external sources, and reinforced by specialized pipelines for talent reserves. The Company utilizes a variety of channels, including public online recruitment platforms, internal talent mapping and headhunting, international
executive search firms, and employee referral programs. Over the reporting period, more than 1,000 new hires were onboarded, achieving precise segmentation and efficient replenishment across all talent levels. This robust
approach provides strong support for the ongoing optimization of the Company’s talent structure and the development of talent pipelines.
Diversified recruitment system Diversified Recruitment Channels and Outcomes
Recruitment
Implementation Measures Outcomes
Channel
Posted job openings on third-party platforms; established a
Public Online Achieved a 98% fill rate; recruitment cycle shortened
Internal recruitment closed-loop process of screening, assessment, and centralized
Recruitment to within 15 days.
channels as the core interviews; added online practical tests for technical positions.
Internal Talent Formed dedicated teams to systematically identify core Successfully recruited 17 executives from Vice
External channels Mapping & Direct personnel from industry-leading companies; built a high-level President to Director level; reduced per-position
to fill gaps Sourcing talent pool and proactively engaged candidates. recruitment cost by over 80%.
Recruited 6 key professionals for critical roles,
International Executive Selected headhunting partners through targeted screening; strengthening the core of the overseas business team
Specialized channels to ensure
stable talent reserves Search Firms established a weekly feedback mechanism. and accelerating early-stage market expansion and
local partnerships.
Implemented referral policies and incentives; established a
Diversified recruitment system Employee Referral
rapid response system with 24-hour feedback and 72-hour Recruitment cycle shortened by 40%.
Program
interview scheduling.
Leveraging its proactive strategic workforce planning, comprehensive talent development lifecycle
management, employee-centric employer branding, and the integration of AI and digital technologies, 2025 Outstanding
Dajin Heavy Industry was honored with the 2025 “Extraordinary Employer” award by Liepin. Employer Award Trophy
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Labor Rights Management
Dajin Heavy Industry is committed to human rights protection and safeguarding employee rights, adhering to the Labor Law of the People’s Republic
of China and referencing the eight core conventions of the International Labour Organization (ILO). The Company has established a comprehensive
management system integrating policy development, internal audit optimization, and training empowerment. Policies and action guidelines are
formulated for each site, and implementation is driven through social responsibility management system procedures. Targeted training is conducted
to promote compliance awareness, supported by social responsibility evaluation metrics and assessment methods, with ongoing enhancements in
research and internal audit practices. By piloting at key bases and covering core business units and critical positions across the group, Dajin advances
the implementation of human rights policies, incorporating extensive industry best practices, cost analysis, and internal auditing. This approach
delivers dual benefits: strengthening employee rights protection and ensuring compliant corporate operations.
End-to-End Workflow for Labor Rights Protection
Case Study
Establishing a Comprehensive Human Rights Compliance Framework
The Labor Law of China
Labour Organization (ILO) Tangshan Facility site as a core pilot, aiming to build an end-to-end compliance framework covering
the rights and interests of both employees and subcontracted personnel. Through cross-functional
collaboration, the Company advanced system development and compliance internal audits,
constructing a comprehensive management framework for the rights of employee and subcontracted
personnel.
The project team integrated resources from the Group’s Sustainable Development Department, Legal
Policy Documents Department, HR Administration Center, and HR departments at both Tangshan and Penglai facilities,
establishing a closed-loop mechanism of “risk identification—policy design—implementation.” In
Action plans for each operational facility alignment with the SA8000 standard and relevant EU regulations, the team focused on developing
policies for fair employment, compensation and benefits, working conditions, and subcontracted
personnel rights. Concurrently, internal and external research was conducted, including the
consolidation of working hours, payroll data, and social responsibility policies at Penglai facility,
benchmarking industry best practices, and preparing specialized research reports to inform policy
design.
Implementation Measures Internal audits The project encompassed more than 500 employees and subcontracted personnel across multiple
facilities, and facilitated compliance self-assessment and optimization initiatives at the Penglai Facility.
Social responsibility management Social Responsibility Evaluation, Ultimately, a replicable human rights management framework was established, delivering enhanced
system procedures Indicators and assessment methods employee rights protection and improved supply chain compliance capabilities for the enterprise.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Institutional Development and Risk Management
All production facilities of Dajin Heavy Industry Risk Assessment Indicators
adhere strictly to applicable domestic and
international laws and regulations, as well as those Indicator Management Management Requirements Status (2025) Management Improvements
governing their operational jurisdictions. The
Company has developed robust internal policies, Child Labor Prohibition Continuously strengthen age verification in recruitment, strictly enforce onboarding
Use of Child Labor Verified child labor cases: 0
Procedures review to eliminate any risk of child labor employment and ensure legal compliance.
including the Employee Handbook, Labor and
Human Rights Management Manual , and Child Proportion of Minor Minor Workers Education Strictly control hiring of minor workers except for legally compliant internships;
Verified minor workers: 0
Labor Prohibition Procedures , which explicitly Workers Procedures enhance pre-employment training and workforce supervision.
prohibit child labor and forced labor, and clearly Established fairness review mechanisms for recruitment, promotion, and
Employment Anti-Discrimination
define anti-discrimination and anti-harassment Discrimination complaints: 0 compensation; conduct regular anti-discrimination training to foster an inclusive
Discrimination Management Procedures
requirements. workplace.
Anti-Discrimination
Dajin Heavy Industry has implemented a systematic Management Procedures; Women’s rights complaints: 0
Continuously strengthen support for women’s career development and workplace
human rights risk assessment and mitigation Women’s Rights Women’s Development
Unreasonable gender-based pay: 0 protection; promote pay transparency; establish accessible complaint channels to
framework to comprehensively identify, evaluate, Protection Guidance; Complaint &
eliminate gender discrimination.
Protection Procedures; Promotion bias: 0
and manage labor and human rights-related risks. Workplace Pay Equality Policy
At the Penglai Facility, a multi-dimensional risk
Continuously optimize onboarding management to ensure timely signing of
assessment model is utilized, incorporating severity, Recruitment Management
Labor Contract Signing Contract signing rate: 100% written contracts for all employees; enhance electronic and standardized contract
frequency, and probability metrics to quantitatively Procedures
management.
evaluate 12 critical risk categories, such as
Minimum Wage Labor Law of the People’s Wages paid according to legal Gradually refine the alignment of the living wage standards with local legal
child labor, forced labor, gender discrimination,
Compliance Republic of China standards minimums; continuously improve employee well-being.
compensation and benefits, social insurance,
and occupational health and safety. Assessment Timely Payment of Wages Labor Law of the People’s Strengthen wage payment monitoring, implement early warning for payment dates,
Delayed wage payments: 0
outcomes confirm that all risk indicators remain & Allowances Republic of China ensure timely and full payment, and normalize zero delays.
at a low-risk level. Moving forward, the Company
Labor Law of the People’s Continuously promote policy compliance, regularly check coverage status, and
will continuously refine and strengthen its risk Social Insurance Coverage Social insurance coverage rate: 100%
Republic of China promptly handle changes due to personnel movements.
response measures to further advance employee
rights protection and enhance corporate compliance Incident, Nonconformance, Established robust complaint handling mechanism to ensure prompt response, fair
Timely and Fair Dispute
management capabilities. Remedial & Corrective Action Disputes and complaints: 0 investigation, and closed-loop remediation for each dispute, enhancing employee
Resolution
Procedures trust.
Continuously strengthen working hours and attendance management, eliminate
Forced Labor Prohibition
Forced Labor Forced labor complaints: 0 forced overtime, safeguard employee freedom to resign, and regularly assess forced
Procedures
labor risks.
During the reporting period, Dajin Heavy
Occupational health records: Complete
Industry
Safety training: As per HSE plan
? Recorded and resolved 6 labor dispute Safety & Hygiene Operational Provide targeted risk assessment strategies and improvement directions for labor-
cases, remaining within the target Occupational & Fire Safety Safe working hours: As per HSE
Control Procedures standards related safety risks.
threshold of 10 cases, achieving a
assessment: Safe
Unadjusted Gender Pay Average female/male wage ratio: Conduct annual pay equity analysis, identify and correct potential gender pay
Workplace Pay Equality Policy
Gap 0.6435 disparities, and promote equal pay for equal work.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Case Study
Targeted Internal Audit and Optimization of Subcontracted Personnel Rights Protection
Dajin Heavy Industry conducted a specialized supply chain human rights compliance internal audit for safeguarding the rights and interests of vulnerable employee groups and elevating the overall supply chain
four subcontractors as partner companies at the Tangshan facility, focusing on critical areas such as human rights compliance standard.
payroll distribution, social insurance and housing fund contributions, and overtime management for
The outcomes of this internal audit provide a solid foundation for the Company to establish a routine
subcontracted personnel. Through comprehensive data collection, policy benchmarking, and on-site
subcontractor compliance supervision mechanism in the future, enabling deeper extension of compliance
interviews, the audit systematically assessed the labor compliance status of each subcontractor.
management across the supply chain.
The audit identified 3 major compliance risks and proposed 5 actionable remediation measures.
This initiative drove subcontractor partners to enhance their labor management systems, effectively
Training and Empowerment
With the Company’s ongoing international
Specialized training initiatives: Strengthening the foundation of compliance awareness
expansion and business diversification, the
proliferation of ESG-related regulations and
global trade barriers has raised the bar for
Training on EU Regulation on
corporate compliance capabilities. Dajin Heavy SA8000 Standard Specialized Tangshan Facility Human Rights Dual Track Training: EU Regulation
Taining Topic Prohibiting Products Made with
Industry proactively addresses these evolving Training System Construction Training & SA8000 Standard
Forced Labour on the Union Market
challenges by implementing a comprehensive
training empowerment strategy. Headquarters and
Interpretation of
departments from production facilities deliver a
SA8000:2026 international
range of specialized training programs tailored to
ethical standards, covering Analysis of the legislative Explanation of Tangshan
specific business needs, with a focus on key topics Integration of EU export business
seven decent work principles background and core provisions of facility human rights system
such as human rights protection, anti-forced labor requirements with practical
(protection of children and the EU Regulation on Prohibiting construction objectives and
practices, and employee rights. SA8000 standards and EU
young workers, freedom of Products Made with Forced Labour institutional framework.
compliance obligations. Case
Utilizing a “tiered coverage plus targeted association, fair recruitment, on the Union Market (product Detailed measures for
studies and process breakdowns
empowerment” approach, the training is customized Training reasonable working hours scope, operator obligations, employee rights protection
enhance employees’ practical
for management, critical roles, and frontline Content and compensation, non- customs controls), aligned with (compensation and benefits,
application of international
staff. The curriculum encompasses international discrimination, health and ILO conventions. Guidance for overtime management, social
human rights compliance.
labor standards, major market ESG compliance safety, privacy). Detailed enterprises on supply chain insurance and housing fund
requirements, client audit preparedness, and explanation of 11 forced compliance risk management contributions). Clarification of
knowledge assessments for
practical operational protocols. This ensures that labor identification indicators, and fulfillment of due diligence departmental responsibilities
participants.
personnel in key positions acquire a thorough corporate due diligence obligations. in human rights protection.
understanding of compliance obligations and are processes, and grievance
equipped to meet evolving regulatory expectations. mechanisms.
Core compliance and supply
Key positions in Group and facility HR, Sustainability Department, Production-related Departement, and
Coverage chain management roles in Group
Subcontractor Management Departments
and facilities
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Diversity, Equity, and Inclusion
Dajin Heavy Industry is committed to advancing employee diversity and fostering an inclusive workplace. In The policy also encourages cross-cultural engagement and collaborative practices, cultivating an
equity across multiple dimensions—including gender, age, ethnicity, and religion—to ensure fair and unbiased development objectives.
opportunities in recruitment, promotion, and professional development. The Company conducts regular
monitoring and public disclosure of gender representation within management and the overall workforce,
actively promoting balanced participation at all organizational levels.
Implementation of Targeted Initiatives
With a focus on female employees, Dajin Heavy Industry designed and implemented specialized programs around two core themes: holiday care and occupational health. These initiatives exemplify the Company’s commitment to
diversity and inclusion, strengthening employees’ sense of belonging and well-being, and contributing to the creation of a healthy, supportive, and sustainable workplace ecosystem.
Case Study
International Women’s Day Appreciation—Celebrating Female Onsite Free Clinic—Safeguarding Women’s Occupational Health
Empowerment
On International Women’s Day 2025, Dajin Heavy Industry organized a thoughtful On December 25, 2025, Dajin Heavy Industry partnered with the Yongwai Sub-district Office to deliver a specialized
appreciation initiative for all female employees. Senior management extended personalized onsite free clinic focused on women’s occupational health. The initiative addressed prevalent workplace health
greetings and distributed flowers and customized gift packages, demonstrating respect concerns among female employees, such as cervical spine and knee joint disorders. Professional healthcare
and care for female staff. The event combined a sense of ceremony with practical benefits, providers were invited to the Company to deliver targeted health education and offer individualized medical
effectively strengthening employee belonging and team cohesion. The initiative received consultations. The program promoted preventive healthcare knowledge and provided personalized rehabilitation
positive feedback and demonstrated the Company’s focus on employee well-being and recommendations, directly addressing critical health risks faced by women in the workplace. This initiative not only
people-oriented values. enhanced employees’ health awareness but also demonstrated the Company’s commitment to employee well-being
through practical, health-focused actions.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Cross-Cultural Exchange and Collaboration Case Study
As Dajin Heavy Industry’s international business presence continues to expand rapidly, the Company’s global Multicultural Co-Creation Workshop
teams now encompass locations in Poland, Spain, Germany, Japan, and South Korea. By prioritizing localized
recruitment, Dajin has cultivated a workforce characterized by diverse backgrounds and perspectives. To In 2025, Dajin Heavy Industry’s Overseas Business Center, European Fixed Business Team, and
facilitate effective cultural integration in the context of international growth, the Overseas Business Center Global Floating Team jointly organized a workshop focused on multicultural co-creation. The session
launched a specialized cultural development workshop. This workshop reinforced core organizational values— facilitated in-depth discussions on aligning objectives, strengthening trust, enhancing efficiency,
including “Diversity and Inclusion,” “Openness and Transparency,” and “Connection and Collaboration”— reducing misunderstandings, and fostering a sense of belonging. Through these discussions, the
and advocated for respect for cultural differences, enhanced active listening, and trust-building across teams established consensus around five core cultural elements: transparency, collaboration, active
teams. Leveraging its international presence, the Company integrates resources from its overseas teams and listening, efficiency, and accountability. This workshop laid a strong cultural foundation for effective
actively promotes cross-cultural exchange and collaboration between Chinese and international employees. cross-cultural team collaboration and promoted greater inclusivity. It provided valuable guidance
These efforts foster an inclusive workplace culture and strengthen organizational cohesion. This initiative has for leveraging multicultural strengths, building equitable, mutually prosperous, and high-performing
significantly enhanced team collaboration and operational efficiency, while providing robust cultural support for teams, and holds significant practical value for the Company’s ongoing global development.
Dajin Heavy Industry’s ongoing global expansion.
Onsite multicultural empowerment training
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Compensation and Management Systems
In 2025, Dajin Heavy Industry, in response to the needs of strategic development and governance optimization, revising and releasing the “Dajin
Heavy Industry Compensation Management Policy” and “Dajin Heavy Industry Performance Management Policy.” These updates further
enhanced the internal management framework, strengthening talent motivation and development mechanisms. The institutional upgrade
provides robust support for operational efficiency and core competitiveness, laying a solid foundation for the Company’s sustainable growth.
Compensation System Performance Management
During the reporting period, the Company achieved its comprehensive compensation system upgrade objectives through a series of systematic The Company's performance management operates at both the
initiatives: organizational and individual levels, closely integrated with the
compensation structures of various positions to achieve a deep linkage
Tiered Compensation Adjustment: Dajin implemented differentiated compensation adjustments across levels to enhance overall market
between incentive mechanisms and talent development. Organizational
competitiveness. Each facility was empowered to organize independent salary adjustments based on regional market conditions, increasing the
performance is led by the Operations Department and evaluated annually
attractiveness of core positions.
based on the completion of targets set at the beginning of the year, with
Policy Framework Enhancement: The Company developed and officially released the Dajin Heavy Industry Compensation Management Policy, results directly tied to the organizational bonus pool. Individual performance
standardizing key aspects such as compensation structure, calculation rules, and adjustment mechanisms, thereby providing institutional support covers all regular employees, including senior management, core talent,
for compensation management. middle and junior managers, professionals, and frontline piece-rate workers.
Assessments are conducted through annual summaries, performance
Compensation Structure Optimization: Dajin comprehensively adjusted employee compensation structures, conducting individual communication
presentations, and scoring, with results directly influencing eligibility for
and explanation of adjustment plans to ensure smooth implementation of the upgraded system.
promotion, salary adjustment ratios, and managerial appointments in
These coordinated measures resulted in significant progress in compensation system development and implementation. the following year. This approach ensures a strong connection between
performance outcomes, talent development, and incentive mechanisms,
Furthermore, Dajin’s compensation system design fully considers living wage standards, ensuring employees’ basic livelihood needs are met. The
driving the collaborative development of organizational objectives and
Company regularly conducts market benchmarking to set reasonable minimum salary levels for each position, continually optimizing compensation
structures and improving employee quality of life. Long-term incentive programs for core executives and key technical talent reinforce talent individual growth. By enhancing employee engagement, the Company
retention and value creation, supporting the Company’s sustainable development. continues to strengthen its core competitiveness.
Compensation system construction and implementation Remuneration structure for regular employees
Implement hierarchical salary adjustments to enhance overall competitiveness
Base Salary by Position Level + Monthly
In May 2025, the Company launched a unified salary adjustment at the Group level, effectively increasing overall employee compensation. To
Senior Management & Performance Bonus + Overtime Pay + Position
ensure alignment with local market dynamics, each facility was authorized to independently organize salary adjustments within established
Allowance + Comprehensive Allowance + Other
Company guidelines, narrowing the gap with market benchmarks and strengthening the competitiveness of core positions. Core Talent Special Allowances & Subsidies + Annual Bonus +
Long-term Incentives
Strengthen the institutional framework to regulate and standardize compensation management
Dajin Heavy Industry developed and formally released the Compensation Management Policy, detailing compensation structure, calculation rules, Base Salary by Position Level + Monthly
adjustment mechanisms, and payment standards. This policy, approved by the Employee Representative Assembly, provides a clear framework for Middle & Junior Performance Bonus + Overtime Pay + Position
standardized compensation management and ensures compliance and governance in system operation. Management, Allowance + Comprehensive Allowance + Other
Professionals Special Allowances & Subsidies + Annual Bonus +
Special Incentive Awards
Promote optimization of compensation structure and ensure the implementation of system upgrades
Based on the newly released policy, the Company comprehensively organized employee compensation structure adjustments, with individualized
communication regarding adjustment plans and rationale. As of the reporting period, the compensation structure upgrade has been steadily Frontline Piece-rate
Piece-rate Pay
implemented and is nearly complete, demonstrating significant effectiveness. Workers
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Benefits System
Dajin Heavy Industry provides employees with a Corporate Benefits System
comprehensive and diversified benefits system,
encompassing statutory benefits, incentive-
Statutory benefits Incentive benefits Diversified compensation package
based benefits, and a multi-faceted compensation
package. The diversified compensation structure is
closely linked to performance outcomes, effectively ? Social insurance and housing ? Annual bonus, special incentive award, reward fund, long-term ? Compensation structure is closely
provident fund incentives (such as equity, stock options, cash-based long-term linked to performance outcomes,
enhancing employee engagement and motivation.
incentives), with effective incentives achieved
Additionally, the Company implements long-
through monthly performance
term incentive programs for core executives and ? Position allowance, comprehensive subsidies (such as meal subsidy, bonuses, annual salary adjustments,
key technical talent, aiming to strengthen talent transportation subsidy, communication subsidy).
promotion mechanisms, and long-
retention and foster value co-creation, thereby ? Other special subsidies: housing subsidy, certification subsidy, etc. term incentives.
supporting sustainable development.
Employee Care
Employee Activities
Mental Health Counseling Holiday Care
Dajin Heavy Industry remains committed to meeting the
diverse needs of employees in both work and daily life, The shipping business division places strong emphasis on crew The Company consistently fosters a “family” culture and prioritizes
with a holistic focus on physical and mental well-being, members’ physical and mental well-being, with the core theme of employee care. Distributing carefully prepared holiday gifts to all
daily living, and cultural enrichment. The Company “Caring for Crew Health and Strengthening the Maritime Safety employees during Chinese New Year, Dragon Boat Festival, Mid-Autumn
actively fosters a caring and inclusive workplace Barrier.” Comprehensive and multi-level wellness services are Festival, and Women’s Day has become a warm tradition. These gifts
environment, enriching employees’ personal lives provided. Crew members can access psychological counseling embody the Company’s sincere care and best wishes for employees
through a variety of activities and supportive initiatives. at any time via telephone, text, or video, consulting with crew and their families, expressing gratitude for their hard work and sharing
These efforts effectively enhance employees’ sense of department supervisors, HR supervisors, or professional counselors. festive joy. This practice reflects the Company’s people-oriented values,
belonging and well-being, while also strengthening All consultations are strictly confidential to protect privacy, helping effectively enhancing employees’ sense of belonging, happiness, and
organizational cohesion and team collaboration. crew members alleviate psychological stress and resolve mental team cohesion, while reinforcing and passing on corporate culture
health concerns. through meaningful rituals.
Cultural and Recreational Activities
Zhangjiakou site of Dajin Heavy Industry collaborates with local cultural departments to organize “Culture into the Workplace” outreach performances,
bringing diverse artistic programs—such as music, dance, opera, instrumental performances, and skits—to the production frontlines. These activities are
designed to meet employees’ cultural and spiritual needs, enhance well-being and sense of belonging, and promote the integration of corporate and local
cultures. Through cooperation with local government, these initiatives enrich employees’ leisure lives and demonstrate the Company’s commitment to
employee care and fulfillment of social responsibility.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Employee Communication
To safeguard equal rights and eliminate discrimination and unfair practices, the Company has
established a whistleblowing mechanism characterized by diversified channels, standardized Complaint Employees can submit complaints or reports to the HRBP team or management at all levels, depending
procedures, robust protection measures, and efficient closed-loop handling. This ensures Channels on their situation. Reporting methods include WeChat, email, and face-to-face meetings.
that employee concerns are promptly and effectively addressed. Additionally, the Company
actively solicits employee input through various channels, such as the Employee Representative
Employees can submit complaints through any channel, clearly specifying
Conference, and fully seeks employees’ recognition and consent during the formulation Complaint Initiation
the complaint details, involved parties, timeframes, and relevant evidence.
and implementation of administrative policies. This guarantees employee participation and
representation in corporate governance.
The Human Resources & Administration Center registers and archives the
complaint within one working day, generates a unique complaint ID, and
Preliminary Acceptance
informs the complainant of the acceptance result (except for anonymous
Case Study complaints).
Employee Representative Conference Drives Policy Optimization
A 3-member special investigation team (including HR & Administration
Center and Compliance Department) is established. Within five
Investigation & Verification
At the 2025 Dajin Heavy Industry Employee Representative Conference, delegates Complaint Process working days, the team conducts interviews and evidence verification,
actively raised questions and provided recommendations on key provisions such as documenting the investigation process.
social insurance base, overtime pay, performance application, target setting, warning
letter authority, and sick leave regulations. Suggestions for additional benefits,
Based on the investigation findings, a resolution plan (including
including annual health check-ups, were also proposed. Relevant departments corrective actions, accountability measures, and compensation for rights
responded on-site and incorporated reasonable feedback. After the conference, a Result Processing infringement) is developed within 7 working days and communicated
secondary consultation was conducted via email with all representatives, facilitating to the complainant (anonymous complaints can be tracked via provided
the improvement and revision of the Compensation Management Policy and contact or designated channels).
Performance Management Policy . Through democratic discussion, multiple rounds of
feedback, and collective review, both policies were successfully approved and formally Within 1 month after resolution, a follow-up with the complainant is
Closed-Loop Follow-Up conducted to confirm issue resolution and ensure a complete closed-loop
implemented. This process fully demonstrates the Company’s respect for employees’
process.
rights to participation and expression, and promotes the transparent, fair, and
equitable execution of management policies.
? Anonymous complaints do not require personal identification; only a valid query identifier (set by the
complainant) is needed.
? The entire investigation process is strictly confidential, with details accessible only to the designated
investigation team and necessary approvers; disclosure to unrelated personnel is strictly prohibited.
Anonymous
Protection
Mechanism
? Explicit prohibition of any retaliation against complainants (including anonymous complainants); any
such behavior will result in serious accountability for responsible parties.
? Complaint materials are archived separately and managed with encryption, used solely for investigation
and resolution purposes. After investigation, materials are retained as per regulations and must not be
repurposed.
? During the reporting period, the Company received zero complaints related to discrimination,
harassment, or other unfair practices.
Complaint
Resolution Rate
? The Company will continue to optimize the whistleblowing mechanism, enhance investigation efficiency
and accuracy, and ensure the full protection of employees’ equal rights.
Employee Representative Conference
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Employee Promotion and Training
Job Grade System and Promotion Selection
Dajin Heavy Industry’s job grade system is built on the core principles of standardized management, streamlined career pathways, and value alignment, establishing a layered and categorized dynamic mechanism
that enables both upward and downward mobility, fully embodying the “people-oriented” philosophy. The system encompasses four major tracks: management, technical, professional, and operational, implementing
a dual career path for management and professional technical development to meet diverse talent growth needs. Job grades are divided into 15 levels, ranging from Grade 10 to Grade 24. The management track is
further segmented into senior, middle, and frontline management, with clear responsibilities and transparent promotion criteria.This system is deeply integrated with compensation, performance appraisal, training, and
leadership selection, ensuring equitable development opportunities for employees and stimulating organizational vitality. Following optimization in 2025, the system further enhances career diversity and inclusiveness,
providing employees with a clear career development roadmap and facilitating both personal value realization and the Company’s sustainable growth.
Job Grade System / Employee Development Pathway Diagram
Job Grades Management Track Technical/Professional/Operational Track
Value Creation Level 18
Deputy GeneralManager & above Expert
Capability Level 16-17
Chief Engineer / Professional Director /
Director / Department Head
Senior Manager
Compensation Level 14-15
Senior Engineer / Professional Manager / DeputyManager /
Manager / Supervisor/Deputy Dept. Head
Deputy Supervisor / Section Chief
Development
Level 12-13
Opportunities
Deputy Manager / Deputy Supervisor / Section Chief Intermediate Engineer / Supervisor
Benefits Level 10-11
Specialist/ Junior Engineer/ Assistant Engineer
Dajin Heavy Industry has established a comprehensive leadership pipeline system covering all management grades from M12 to M23, centered on the principle of “succession for every position.” The Company
implements a tiered training mechanism, designating business leaders as core accountability holders, thereby achieving integrated talent reserves, leadership promotion, and job rotation. This system balances both
governance and social dimensions, ensuring leadership continuity and safeguarding employees’ development rights, thereby strengthening the talent foundation for the Company’s sustainable growth.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Employee Training All-level Training System
Dajin Heavy Industry has established a comprehensive,
Training Topic Value Proposition Content
multi-tiered training system covering new employees,
management, professional/technical personnel, and
the entire workforce. The program encompasses Establish onboarding foundation, enhance
New Employee Training New Employee Orientation and Onboarding Training
compliance awareness
diverse topics including onboarding and integration,
leadership development, compliance and regulatory Improve management effectiveness, build core
training, professional skills, technical R&D, and external Management Training Management Launch – New Manager Growth Bootcamp
leadership teams
benchmarking. Over the year, more than 50 training
High-Tech Enterprise Certification & Maintenance Training;
sessions were conducted, reaching over 2,000 employee
participants. This training system features “compliance Business Travel System Operation Training;
foundation, capability empowerment, and strategic Conflict of Interest & Gifts Management Training;
Standardize operational procedures, mitigate
alignment,” supporting employee growth and the Compliance Training compliance risks Electronic Seal System Training;
Company’s sustainable development.
CBAM Data Collection & Reporting Process;
ESG Report Compliance Training
Shipping Division Business & Commercial Logic Training;
Deepen business understanding, enhance role
Professional Training Introduction to New Energy Development Business;
adaptability
Offshore Base Import/Export Process & Risk Communication
Focus on R&D advancement, strengthen technical
Technical Training Global Overview of Floating Wind Turbine Foundations
expertise
Huawei Management Philosophy Special Training;
External Training Benchmark industry leaders, absorb best practices
Government Policy Interpretation Training
Case Study Case Study
Compliance Onboarding and Cultural Integration for New Employees Empowering New Managers and Enhancing Team Effectiveness
Dajin Heavy Industry has launched a “Compliance + Integration” training series, conducting 12 sessions Dajin Heavy Industry launched the “New Manager Growth Bootcamp,” conducting 4
throughout the year and covering over 600 participants. The program utilizes a tiered delivery model—online sessions throughout the year and engaging 180 newly appointed supervisors, managers,
foundational courses, offline intensive workshops, and job-specific modules—to embed core compliance and management trainees. The program featured lectures from Tsinghua University
requirements such as anti-discrimination and the prohibition of forced labor into the initial onboarding for new EMBA faculty and former senior executives from Lenovo and Sina, establishing a closed-
employees. Case studies and group discussions are integrated to deepen understanding, supplemented by loop development system encompassing role transition, core competencies, and mindset
compliance assessments and interactive activities to ensure training effectiveness. transformation.
The compliance awareness rate among new employees reached 100%, and position adaptation within three The bootcamp focused on practical management scenarios such as target decomposition
months improved by 85%, significantly strengthening compliance consciousness and organizational belonging. and employee coaching, utilizing hands-on case simulations to strengthen execution
Comprehensive compliance education not only helps new hires understand company policies and legal capabilities. As a result, participating managers achieved a 70% increase in target
boundaries, but also enhances cultural integration and alignment. Compliance training provides clear behavioral attainment rates and a 35% improvement in team cohesion scores, significantly enhancing
guidelines, mitigates risks, safeguards both individual and corporate rights, and supports healthy, sustainable managerial competency and team performance. This initiative effectively supports
corporate development. leadership pipeline development and drives organizational effectiveness upgrades.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Case Study
Benchmarking Huawei—Empowering Management Excellence
Dajin Heavy Industry conducted an in-depth “Huawei Management Philosophy Training,” engaging Training outputs included actionable tools such as responsibility outcome assessment forms and
comprehensive analysis of Huawei Human Resource Management Philosophy (Management Edition) , performance and supported by capability. Management compliance improved by 40%, significantly
offering systematic learning of Huawei’s advanced mechanisms in leadership selection, evaluation, and optimizing management methodologies and providing robust support for talent pipeline development
incentive systems, followed by practical workshops tailored to the Company’s context. and governance system enhancement.
Dajin Heavy Industry actively integrates into community development, continuously participates in volunteer services and philanthropic initiatives, and takes
concrete actions to support community prosperity, thereby advancing social sustainability and holistic progress.
Volunteer Service
Case Study
Integrating into Local Women's Committees and Empowering Female Development
Employee representatives from Dajin Heavy Industry participated in the Women’s Work Committee
at Yongwai Subdistrict, China Overseas Property Plaza, proactively integrating into the local women’s
empowerment framework. The Deputy General Manager of the Company’s Human Resources and
Administration Center was elected as Deputy Director of the Women’s Work Committee, leveraging
her position to advance local women’s rights protection and female empowerment initiatives. Going
forward, the Company will collaborate with subdistrict resources to conduct volunteer services
focused on women’s needs, effectively addressing real-life challenges.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Philanthropy
Case Study
Tangshan facility RMB 200,000 Targeted Donation
In active response to the national rural revitalization strategy, Dajin Heavy
Industry fulfilled its corporate social responsibility and upheld its core values of
“green development and giving back to society.” On April 23, 2025, the Company
formally signed a Targeted Donation Agreement with the Fengnan District Red
Cross Society of Tangshan City, completing a RMB 200,000 special donation for
rural revitalization.
This donation is dedicated to addressing the practical needs of rural development
in Daxinzhuang Town, Fengnan District, Tangshan City, specifically allocated
for local infrastructure improvement, enhancement of public services, and
implementation of rural development support projects. As a local new energy
enterprise rooted in Tangshan, the Company has consistently engaged in local
economic and social advancement. This donation represents both precise
support for local government rural revitalization efforts and a concrete practice
of promoting urban-rural integration and improving rural living and working
conditions through tangible corporate action.
Looking ahead, guided by ESG principles, the Company will continue to
incorporate rural revitalization and philanthropy into its long-term development
strategy. Leveraging its new energy industry strengths, Dajin Heavy Industry
will further promote green and low-carbon development, deepen its social
responsibility practices, and contribute pragmatically to Tangshan’s progress and
rural empowerment, supporting comprehensive rural revitalization in the region.
Rural Revitalization
Looking ahead, Dajin Heavy Industry will continue to focus on rural revitalization,
leveraging its industrial strengths and local resources to explore sustainable support
models in areas such as talent development, infrastructure enhancement, and green
industry collaboration. Through technology empowerment, talent exchange, and
active participation in rural economic advancement, the Company aims to facilitate
common prosperity.
Governance
Topics Addressed:
? Corporate Governance
? Risk Management
? Business Ethics
Contribution to the SDGs
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
A sound corporate governance structure is the foundation of sustainable corporate development. Dajin Heavy Industry has always taken the optimization of its governance system as a
core measure to promote high-quality corporate development. The Company continuously strengthens the sense of responsibility and performance capabilities of the Board of Directors
and senior management, effectively protects investors’ rights and interests, and builds a corporate governance structure with clear responsibilities, openness and transparency, so as to
provide solid support for the sound operation and long-term development of the enterprise.
Governance Structure
Dajin Heavy Industry strictly complies with the Company Law of the Dajin Heavy Industry Governance Structure
People's Republic of China , the Securities Law of the People's Republic
of China and other relevant laws and regulations, and has established
a sound governance structure to standardize the Company’s operation
and management. In 2025, in response to new regulatory requirements,
the Company abolished the board of supervisors to further streamline Board of
governance levels, improve decision-making efficiency, and enhance the Shareholders Meeting Senior Management
Directors
flexibility and responsiveness of the governance system.
As the Company’s highest authority, the shareholders’ meeting exercises
the right to make decisions on major matters in accordance with the law.
The board of directors has four special committees: the Strategy and
Sustainable Development Committee, the Audit Committee, the Nomination
Committee, and the Remuneration and Assessment Committee, which
provide in-depth support and professional assurance for the board’s Strategy and
decision-making. The senior management is responsible for the daily Sustainable Audit Nomination Remuneration and
operation and management of the Company, strictly implements the Development Committee Committee Assessment Committee
resolutions of the board of directors, and ensures the implementation of Committee
strategies.
All institutions perform their duties with clear powers and responsibilities,
operate independently, and maintain coordination and checks and
balances, forming an efficient and transparent governance closed loop.
Through continuous optimization of the governance structure, Dajin Heavy During the reporting period, the Company revised a number of internal management systems including the *Articles of
Industry has effectively improved the scientificity of decision-making Association*, and convened a total of 7 board meetings, further improving the Company’s internal management system and
and management efficiency, provided sound governance support for the
promoting the continuous optimization of its corporate governance structure.
Company, promoted its stable and sustainable development, and created
long-term value for employees, investors and society.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Board Diversity Investor Relations Management
Dajin Heavy Industry is committed to advancing the diversification of its board of directors. In Dajin Heavy Industry has always regarded investor relations management as an important
composition of board members in terms of gender, age, nationality, cultural and educational Management System , adhering to the principles of fairness, impartiality and openness,
background, professional expertise and industry experience. This practice not only broadens treating all investors equally, and protecting the right to know and other legitimate rights and
the decision-making perspectives and enhances the innovation capacity of the board, but also interests of all investors. We attach great importance to the protection of shareholders' rights,
injects greater vitality into corporate governance. standardize the procedures for convening, holding and voting at shareholders' meetings,
ensure that every shareholder can participate equally in the Company's major decision-
In the recruitment, selection, training, evaluation and daily management of board members,
making, and effectively safeguard the interests of investors.
the Company strictly follows the director selection procedures stipulated in the Company Law
and the Articles of Association , ensuring full compliance with applicable laws and regulations. Dajin Heavy Industry adopts diversified methods of information disclosure and investor
Adhering to the principles of fairness, impartiality and transparency, the Company further interaction and communication. Through various channels such as official website
strengthens the governance foundation of the board. announcements, periodic reports, performance briefings, and the Interactive Easy Reply
Platform, the Company timely conveys the latest operational and development trends. By
To further enhance the performance capabilities of directors, the Company organized two
actively responding to investors' concerns, the Company maintains a transparent, timely and
special training sessions for the board of directors in 2025, covering the new Company Law,
two-way communication mechanism with investors, enhancing investors' trust and support.
the Hong Kong Stock Exchange Listing Rules and other relevant topics. The trainings have
significantly strengthened the board’s professional competence in corporate governance and In 2025, the Company held 5 shareholders' meetings and implemented dividend distribution
compliant operation. twice, with a total cash dividend of 106 million yuan distributed.
During the reporting period, Dajin Heavy Industry
As of the end of the reporting period,
organized 5 large-scale investor relations exchange activities, including 3 online
the Company had 9 directors on the board, including 3 female directors
performance briefings, 1 on-site investor education activity, and 1 on-site press
and 1 employee representative director.
conference, with a total participation of more than 1,000 people.
Case Study
Investor On-site Seminar and Exchange Event
On September 10, 2025, more than 20 investors were invited to conduct an on-site
research and discussion at the Beijing headquarters of Dajin Heavy Industry. During
the interactive session, the Company’s management actively responded to investors’
professional inquiries with detailed data and clear logic, and conducted candid, in-
depth and comprehensive sharing and interpretation on key topics such as the
Company’s future development strategy and international market expansion.
Such open and transparent communication not only effectively eliminated information
barriers but also significantly enhanced investors’ understanding and trust in the
Company. Through on-site exchanges, the Company laid a solid foundation for the
reasonable discovery of capital market value, further consolidated the cooperative
bond between the enterprise and investors, and supported the steady and sustainable
"Rational Investment Accompanies Me" Themed Activity
development of the Company.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Protection of Creditors’ Rights and Interests
Dajin Heavy Industry always upholds the philosophy of being responsible to all capital providers. While effectively protecting shareholders’ rights and interests, the Company also
attaches great importance to safeguarding the legitimate rights and interests of creditors. During the reporting period, the Company strictly fulfilled its debt repayment obligations, with
no overdue loans or overdue payments to small and medium-sized enterprises, demonstrating a sound credit record and sense of responsibility.
The Company adheres to honest operation and is committed to maintaining a stable cooperative relationship with creditors. Relying on a sound risk control system, it effectively protects
creditors’ interests and improves financial stability and transparency. Effective protection of creditors’ rights and interests not only consolidates the Company’s reputation in the capital
market, but also provides solid support for the sustainable and sound development of the enterprise.
A sound and efficient risk management and internal control system serves as an important foundation for the Company to achieve its strategic objectives. Dajin Heavy Industry is
committed to building a corporate culture of high standards that integrates business ethics and compliance principles. Through a risk management system covering all businesses and
the entire process, the Company realizes accurate risk identification and effective response, providing strong support for its long-term stability and sustainable development.
Risk Management System
The Company adopts the "Three Lines of Defense" model to construct a comprehensive risk management framework and clarify the
risk control responsibilities at all levels.
Three Lines of Defense for Risk Management of Dajin Heavy Industry
Business Each business unit acts as the owner of risks, responsible for
Departments identifying, assessing and managing risks in daily operations.
The First Line
of Defense
The Risk Control and Compliance Center is responsible for formulating risk
Risk Control and
The Second Line of Defense management policies, processes and methods, continuously supervising
Compliance Center
and assisting the work of the first line of defense.
As the ultimate guarantee, the Audit and Supervision Department
Audit and conducts objective audits and evaluations on the effectiveness of
The Third Line of Defense
Supervision Center risk management and internal controls, and verifies the effectiveness
of risk management measures.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Risk Management Process
In response to identified risks, Dajin Heavy Industry adheres to the proactive management philosophy, deeply improves operational efficiency while ensuring compliance. Meanwhile, for new business models and scenarios,
integrating risk identification, assessment and prevention into the entire business process. Through process the Company flexibly advances the participation of compliance functions, thoroughly understands business
reviews, email reviews, consulting services, meeting participation, negotiation support, legal due diligence and needs, promptly identifies and assesses risks, and provides practical compliance suggestions, supporting
other approaches, the Company integrates risk identification, assessment and control throughout all business businesses to make optimal decisions on the premise of controllable risks.
operations. For critical links in business operations, the Company carries out regular risk assessments to achieve
In 2025, the Company achieved 100% completion of its annual risk control and compliance objectives, sorted
timely early warning and assist business departments in effectively responding to potential risks.
out and completed all key tasks, and further improved the enterprise’s risk management level and operational
For conventional businesses with strong homogeneity and high frequency, the Company has uniformly support capabilities.
developed standard contract templates equipped with instructions for use and risk reminders, which significantly
Multi-domain Risk Prevention and Control
The Company focuses on key business risk areas and establishes a multi-dimensional prevention and control system to ensure the safe operation and sustainable
development of the enterprise. Relying on the "Three Lines of Defense" risk management model, the Company integrates risk identification, assessment, management
and supervision into all business links, strengthens collaborative control capabilities, and effectively prevents potential risks.
Financial Risk Management
In terms of financial risk management, Dajin Heavy Industry has established a full Financial Risk Management Process
closed-loop financial risk management process covering "identification - assessment
- prioritization", ensuring that risk control runs through the entire process of financial Launch (such as annual budget
Risk Points Sorting and
formulation, policy updates, major Basic Information Collection
activities. The specific process includes: taking the initiative to launch risk management Classification
decisions, etc.)
at key nodes such as annual budget formulation, policy updates or major decisions;
systematically identifying potential risks through basic information collection, sorting
out and classifying risk points. Subsequently, it conducts risk assessment and grade
Formulate Response Strategies Risk Assessment and Grade
determination, formulates targeted response strategies and rectification plans, and Implement control measures
and Rectification Plans Determination
strictly implements control measures. During the management process, continuous
monitoring and data tracking are carried out to form closed-loop risk management, and
the assessment link is re-entered if necessary. The Company also regularly optimizes
Closed-loop Risk Management/ Regular Process Optimization and
the management process and updates the risk list to achieve dynamic adjustment and Monitoring and Data Tracking
Re-enter the assessment process List Update
continuous improvement.
In 2025, the Company further improved the framework of financial management systems, issued a number of management systems, and ensured the implementation of the systems through multi-dimensional
means such as promotion and publicity, assessment, and correction, realizing the normalization of daily risk management. Meanwhile, the Company promoted the digital transformation of fund management,
achieved real-time overview and centralized monitoring of fund information, and effectively avoided fund-related risks. The payment model was reformed simultaneously to realize online automated processing
and unified review, strengthen payment control, and comprehensively improve the safety and efficiency of fund payment.
This series of measures has realized the dynamic management and continuous optimization of financial risks, ensuring the Company's financial stability and operational safety.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Legal Compliance Risk Management Overseas Risk Management
Dajin Heavy Industry continuously follows up on the dynamics of overseas trade policies and export controls,
Dajin Heavy Industry continuously promotes the professional development of its legal and compliance
focusing on monitoring major regulatory changes such as anti-dumping and countervailing investigations
system. In light of the characteristics of various business segments, the Company gives full play to the
against exporting countries, the EU Foreign Subsidies Regulation (FSR), the U.S. Section 301 Act and
professional strengths of the legal team and implements refined division of labor and efficient collaborative
OFAC sanctions . It timely issues risk early warnings and collaborates with relevant departments to formulate
management. The Company integrates legal and compliance management procedures into business
response plans. In 2025, the Company conducted special research on the EU FSR, systematically sorting out
processes, ensuring that risk identification, assessment, response and monitoring are closely linked to form
the domestic subsidy status of the Group and overseas export entities, providing decision-making basis for
a closed-loop management, and continuously enhances the level of compliance governance.
responding to policy changes. The Company will continue to track the evolution of regulations and policies
such as FSR, dynamically adjust compliance strategies to ensure timely risk response and controllable
Compliance Management Measures compliance status of overseas business, and safeguard the steady development of international business.
For overseas offshore engineering business
? Sort out the conditions of historical projects, identify and extract key points, and conduct
horizontal comparisons.
For shipping business
? Develop project execution tracking forms to achieve comprehensive tracking and risk
prompting of important matters
? Establish ledgers for project change items during execution.
Standardization of contracts and legal documents
? Formulate and revise business contract templates and update them dynamically.
Establishment of ledgers
? Establish ledgers for legal review, intellectual property rights and equity investment, and
strengthen dynamic supervision of relevant matters.
Standardization of Investment Management
? Formulate reference texts and usage instructions for resolutions of the three meetings, and
strengthen post-investment compliance management.
? Compile operation guidelines and precautions for matters such as industrial and commercial
registration, change, filing and cancellation.
To ensure that all business activities always operate within the legal framework, Dajin Heavy Industry
continuously improves its compliance management structure, formulates targeted management measures
for different business scenarios. Through the above measures, the Company effectively identifies and
reduces legal and compliance risks, provides solid support for compliant operations, enhances the
enterprise's risk prevention and control capabilities, and escorts the high-quality and steady development
of the Company.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Risk Early Warning Mechanism
Dajin Heavy Industry has established a relatively sound Three Major Types of Risks of Dajin Heavy Industry In response to the intensifying competition in the
risk early warning system. In the process of business domestic wind power market and the trend of risk
collaboration, it can quickly identify potential risks and transfer by purchasers, Dajin Heavy Industry has
issue risk prompts to business departments at the first formulated signing standards for new domestic
Various major accidents, errors, problems and potential hazards affecting production
time. The Company conducts in-depth analysis and early and operation, safety and environmental protection, and the orderly conduct of work; tower project orders, standardized key clauses such
warning of potential risks in combination with the relevant as signing entities, payment terms, time nodes and
background of the project to ensure that risks in all links payment methods, and set risk "red lines" from the
are controllable. For matters that may face administrative source. In the actual implementation process, the
penalties, trigger chain commercial risks and other major Company implements a dual-review mechanism,
risk situations, the Company will simultaneously request conducting strict risk control on new projects through
Public opinion risk events that have a negative impact on the Company's image and
the group level to pay attention to, organize evaluation reputation; pre-bidding review and contract review. In 2025, all
and make decisions, so as to ensure timely risk response, newly signed domestic orders of the Company met
clear governance level and in-place prevention and control the risk control requirements, effectively ensuring the
measures. safety of the Company's cash flow.
To further strengthen and standardize the Company's
management of major events, Dajin Heavy Industry has Events affecting normal operation due to natural disasters, accidents, public health
formulated the Major Event Reporting System and clearly incidents, social security incidents and other emergencies.
requires early reporting and early warning of three types
of important risks.
Compliance Culture Construction
The Company regards compliance culture as an important support for risk management, advocates full risks and conduct compliant operations. Through systematic and continuous training, employees' recognition
participation of all employees, and promotes the in-depth integration of compliance concepts into daily of compliance culture has been continuously strengthened, and compliance awareness has been effectively
operations and business processes. The Company regularly organizes all employees to participate in integrated into the daily practice of every employee and internalized into daily codes of conduct, which has
compliance training, covering key contents such as legal and regulatory requirements, internal compliance effectively promoted the standardization of the Company's operations and the steady development of the
policies, and special compliance training, so as to comprehensively improve employees' ability to identify enterprise.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Dajin Heavy Industry strictly abides by the laws and regulations of the places where it operates, such as the Management of Gifts and Cash , the Integrity Reporting Reward System, and the Provisions on the Integrity
Criminal Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of Managers and Personnel in Economically Sensitive Positions . The Company resolutely resists commercial
of China, the Interim Provisions on Prohibiting Commercial Bribery, the United Nations Convention against bribery, embezzlement, unfair competition and money laundering, standardizes employees' behaviors, and is
Corruption, and the Convention against Corruption and Criminal Law. It has formulated and implemented committed to creating an honest and fair business environment.
internal management systems including the Anti-Bribery System Management Manual, the Measures for the
Business Ethics Management
In 2025, Dajin Heavy Industry implemented the Anti-Bribery System Management Manual , adhered to zero tolerance for bribery,
and continuously promoted the development of the Company's integrity culture. The Company set clear business ethics management
objectives and implemented the target responsibility system. It organized various departments to formulate specific measures,
clarified the frequency and methods of target rating to ensure the achievement of objectives.
Business Ethics Management Objectives
management personnel high-risk positions or businesses
During the reporting period, Dajin Heavy Industry passed the ISO37001:2016 anti-bribery management Dajin Heavy Industry Anti-Bribery
system certification and obtained the certificate. Management System Certificate
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
In business ethics certification and auditing, Dajin Heavy Industry continuously identifies management To ensure the effectiveness of our management measures, the Company simultaneously conducts risk
loopholes and promptly rectifies problems through in-depth research and walk-through tests on relevant identification and assessment, and has established a full-process business ethics management system covering
businesses, further improving the management effectiveness in aspects such as gift and cash management, pre-prevention, in-process control and post-closed-loop, from research, identification and management to
banquets, and conflict of interest prevention. For potential risks and loopholes identified in the review, the internal audit and problem rectification. Through improving the system system, strengthening education and
Company responds quickly, formulates special relevant systems, clarifies the handling methods and principles publicity, standardizing processes and approvals, enhancing supervision and audit, as well as rectification,
for internal and external matters, and comprehensively strengthens the Company's business ethics governance improvement and review summary, the Company continuously prevents and timely handles business ethics
capabilities. risks, ensuring the healthy development of the Company.
Risk Identification and Management Measures of Dajin Heavy Industry Business Ethics Management Process
With "prevention before it happens" as the core, avoid business
Business Research Risk Identification
ethics risks from the source by improving the institutional system,
Pre-prevention
strengthening education and publicity, and taking proactive risk control
? Conduct research on bribery risks ? Score the identified bribery risks measures.
involved in various departments and according to unified standards.
form a risk identification list.
Standardize process management and establish a hierarchical
In-process approval mechanism;
Control Strengthen implementation supervision and compliance review, and
Risk Management Internal Audit resolve issues in a timely manner.
? Conduct regular training and audits for ? Carry out internal audit work for various
departments with medium and high risks; departments and issue management
review reports. Standardize audit investigation and disposal procedures, and
? Perform regular supervision and implement an accountability mechanism;
inspection on personnel in high-risk
positions; Post-event
Improve management capabilities through rectification and plug
Closed-loop
? Conduct further investigations into Management
management loopholes;
businesses with high risks.
Conduct review and summary, and achieve management closure
through self-inspection and self-correction.
In supply chain management, the Company incorporates business ethics requirements into the full life cycle management of suppliers, actively promotes the extension of the ESG philosophy to the supply chain, and advocates
building a clean, transparent and sustainable cooperation ecosystem together with suppliers. For more information, please refer to Special Topics 2: Reshaping Responsible Procurement and Forging a Sustainable Value Chain.
During the reporting period, to strictly supervise and implement the business ethics management measures, Dajin Heavy Industry proactively identified and legally disposed of 3 commercial code of conduct incidents through
internal audit. All relevant matters were properly resolved within the framework of the Company's policies and laws, without material impact on the Company's operations, financial position and reputation. We regard this as
an important practice in the continuous improvement of the anti-bribery system, and have included relevant cases in the internal training system to strengthen the compliance awareness and risk prevention capabilities of all
employees and advance the development of the anti-bribery system.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Reporting Management Business Ethics Culture Construction
Dajin Heavy Industry has established multiple The Company actively organizes business ethics training covering all employees and suppliers to fully
reporting channels including email, telephone promote the integrity culture. Employees in sensitive positions are required to sign the Integrity Code
and WeChat Work, which are publicized Reporting Channels of Conduct , and suppliers are required to sign the Integrity Agreement. The signing rate of relevant
on the official website, providing open and documents reached 100% in 2025.
transparent reporting approaches for all ? Email: djjc@dajin.cn
In 2025, we carried out business ethics training for all employees, covering various aspects such as
stakeholders. In addition, we conduct publicity
? Phone: 0535-3461206 / 13621237207 procurement topics and new system learning, further enhancing employees' awareness of integrity.
on reporting and display reporting channels
at the Group and its subsidiaries, encouraging ? Integrity Reporting Platform: https://www.dajin.cn/
employees and stakeholders to actively index/index/report?lang=EN
participate in supervision and jointly build a
sound and compliant working environment.
Upon receipt of a report or complaint, we immediately set up a special investigation team to conduct independent
analysis and investigation into the relevant incident. Meanwhile, the Company has clearly defined whistleblower Anti-Unfair Competition
protection measures and adopts one-on-one single-line contact to ensure that no information of the whistleblower
is disclosed, resolutely safeguarding the legitimate supervision rights of the whistleblower. Dajin Heavy Industry firmly upholds the order of fair market competition and strictly complies with the
laws, regulations and relevant provisions of the places where it operates. The Company implements
the Anti-Bribery System Management Manual , clarifies the requirements for anti-unfair competition,
prohibits employees from engaging in false propaganda, monopolies and other behaviors, and
Case Study participates in market competition in a legal and compliant manner to maintain the healthy development
of the industry.
Promotion Campaign on the Appeal Mechanism
In 2025, Dajin Heavy Industry organized a special promotion campaign on the appeal mechanism. Through
online training, offline posters and other forms, the campaign clearly communicated the internal reporting
channels and confidentiality policies to all employees. This promotion effectively raised employees' Conflict of Interest Management
awareness of and trust in the appeal mechanism, further consolidating the foundation of the Company's
integrity governance. Dajin Heavy Industry attaches great importance to the management of employees' conflicts of interest.
In 2025, the Company newly formulated the Measures for the Administration of Employees' Conflict
of Interest Matters , which clarify the scope of conflict of interest matters and response and handling
requirements, and strengthen the supervision and management of employees' integrity in performing
their duties. The measures require employees to declare conflicts of interest on an annual basis, and new
employees to make such declarations within one month after onboarding. To enhance implementation
effectiveness, the Company conducts continuous tracking and evaluation of conflict of interest
declarations, ensuring that operations strictly comply with the principles of compliance and fairness, and
laying a solid foundation for sustainable development.
Publicity and Education Activitie
Key Performance Indicators, KPIs
Appendix Environmental Data
Indicator Name Unit 2025 2024 2023
GHG Emissions
Total GHG Emissions tCO2e 53,291.10 49,639.64 57,580.18
? Key Performance Indicators (KPIs)
Total Direct GHG Emissions (Scope 1) tCO2e 20,797.79 20,194.84 21,174.11
? Standard Index Table
Total Indirect GHG Emissions
? Reader Feedback Form (Scope 2)
tCO2e 32,493.31 29,444.80 36,406.07
tCO2e/
GHG Emissions per Million RMB
Million RMB 8.63 13.13 13.31
Revenue
Revenue
Energy Consumption
Total Energy Consumption MWh 132,568.29 133,953.76 155,572.72
MWh /
Energy Consumption per Million
Million RMB 21.47 35.44 35.97
RMB Revenue
Revenue
Total Direct Energy Consumption MWh 71,851.90 72,718.79 91,319.56
Total Gasoline Consumption MWh 1,078.68 981.00 1,089.79
Total Diesel Consumption MWh 11,338.03 11,075.85 17,601.37
Total Natural Gas Consumption MWh 57,666.44 59,038.33 69,851.09
Total Propane Consumption MWh 1,478.29 1,623.59 2,777.31
Total Liquefied Petroleum Gas
MWh 289.99 / /
(LPG) Consumption
Total Acetylene Consumption MWh 0.46 / /
Total Indirect Energy Consumption MWh 60,716.39 61,234.97 64,253.16
Total Purchased Electricity MWh 60,185.39 60,185.40 63,203.59
Total Purchased Heat MWh 531.00 1,049.57 1,049.57
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Indicator Name Unit 2025 2024 2023 Indicator Name Unit 2025 2024 2023
Raw Material Consumption Waste
Total Raw Material Consumption
Total Hazardous Waste Generated tons 772.10 526.31 680.20
(metal raw materials & welding 1,000 tons 434.0 524.2 511.3
consumables)
tons /
Raw Material Consumption per
Million RMB 0.070 0.139 0.118 Revenue
Million RMB Revenue
Revenue
Total Hazardous Waste Disposed tons 755.32 545.00 661.53
Steel Plate 1,000 tons 391.8 488.2 469.1
Total General Waste Generated tons 21,186.55 18,105.68 /
Flange 1,000 tons 33.7 28.0 33.8
tons /
General Waste Intensity Million RMB 3.43 / /
Welding Consumables 1,000 tons 8.4 7.9 8.4
Revenue
Paint 1,000L 2,893.40 2,069.49 2,648.71 Total General Waste Disposed tons 21,186.55 18,105.68 /
Renewable Energy Consumption Of which: Total Metal Waste
tons 649.93 1,145.52 722.67
Recycled
Total Renewable Energy Generation MWh 899,107.71 686,008.35 416,199.95
Of which: Total Metal Waste
tons 11,046.28 12,883.33 12,715.15
Renewable Energy for Self- Treated by Third Parties
MWh 22,603.98 20,106.15 13,330.45
consumption
Water Consumption
Renewable Energy Sold MWh 876,503.73 665,902.20 402,869.50
Total Water Withdrawal 1,000 tons 185.4 199.8 184.5
Air Pollutants 1,000 tons /
Total Water Withdrawal per Million
Million RMB 0.030 0.053 0.043
RMB Revenue
Nitrogen Oxides (NOX) tons 3.82 2.25 4.93 Revenue
Volatile Organic Compounds Of which: Total Purchased Water 1,000 tons 176.0 188.7 173.5
tons 17.823 82.83 143.23
(VOCs)
Of which: Total Natural Water
Dust tons 6.02 7.19 34.06 Withdrawal
In 2025, new RTO facilities were installed at multiple facilities of the Company, resulting in a significant reduction in VOC
emissions compared with previous years, while NOX emissions increased.
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Social Data
Indicator Name Unit 2025 2024 2023 Indicator Name Unit 2025 2024 2023
Supply Chain New Hires and Employee Turnover Rate
Number of relevant suppliers Total new employees person(s) 954 660 524
participating in ESG assessments
pcs 7 1 21 Total new ethnic minority employees person(s) 73 / 29
organized by the Company either in
person or via third parties
Total new employees with disabilities
person(s) 2 / 0
Total number of suppliers pcs 5124 1,127 / (vulnerable groups)
Total employee turnover person(s) 355 591 380
Employee
Overall employee turnover rate % 16.71 32.96 25.28
Total number of employees person(s) 2,303 1,946 1,630
Male employee turnover rate % 28.55 / /
Total male employees person(s) 1,825 1,558 1,300 Female employee turnover rate % 20.50 / /
Turnover rate of employees under 30
Total female employees person(s) 478 388 330 % 19.29 / /
years old
Total employees under 30 years old person(s) 451 / / Turnover rate of employees aged
% 26.77 / /
Total employees aged 30–50 person(s) 1,692 / /
Turnover rate of employees over 50
% 49.38 / /
Total employees over 50 years old person(s) 160 / / years old
Turnover rate of employees in Chinese
Total full-time employees person(s) 2,303 1,925 1,630 % 27.30 / /
mainland
Total part-time employees person(s) 0 8 0 Turnover rate of employees overseas
% 2.56 / /
and in Hong Kong, Macao, Taiwan
Total employees in Chinese mainland person(s) 2,264 1,944 1,630
Employee Training
Total employees overseas and in Hong
person(s) 39 1 0
Kong, Macao, Taiwan Total Hours of Employee Training hours 23,381 20,851 15,662
Total ethnic minority employees person(s) 137 138 114 Employee Training Coverage Rate % 100 / /
Total employees with disabilities
person(s) 9 1 0 Number of Employee Training Sessions times 412 / /
(vulnerable groups)
Flexible employment positions person(s) 0 0 0 Investment in Employee Training RMB Yuan 324,620 / /
Total management employees person(s) 290 371 155
Total male management employees person(s) 253 295 126
Total female management employees person(s) 37 76 29
Total ethnic minority management
person(s) 15 / 9
employees
Total management employees with
person(s) 0 / 0
disabilities
In 2025, the Company conducted a comprehensive screening and elimination of suppliers, resulting in a decrease in the number
Outsourced employees person(s) 2,008 1,628 1,300
of suppliers compared to previous years.
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
Governance Data
Indicator Name Unit 2025 2024 2023 Indicator Name Unit 2025 2024 2023
Occupational Health and Safety Business Ethics
Number of Work-Related Injuries
Recognized by the Local Human person(s) 10 11 7 Number of employees participating in
person(s) 2,303 / /
Resources and Social Security Bureau business ethics-related training
Number of Work-Related Fatalities person(s) 0 0 0
Number of management employees
Major Accident Injury Rate % 0 0 0 participating in business ethics-related person(s) 290 / /
training
Number of Personal Injury Accidents per times / 10,000
ethics-related training
Working Hours Lost Due to Work-Related
Hous 6,090 5,366 1,900
Injuries Proportion of employees participating in
% 100 100 62
Investment in Work-Related Injury business ethics-related training
RMB Yuan 1,557,424 / /
Insurance
Proportion of management employees
Investment in Work Safety Liability
RMB Yuan 95,450 / / participating in business ethics-related % 100 / /
Insurance
training
Employee Coverage Rate of Work-
Proportion of directors participating in
Related Injury Insurance and Work Safety % 100 / / % 100 / /
business ethics-related training
Liability Insurance
Number of business ethics-related reports cases 3 4 0
Total Number of Participants in
person(s) 680 / /
Occupational Health and Safety Training Number of corruption incidents cases 9 7 0
Innovation-Driven Development Number of information security-related
cases 0 0 0
incidents
Number of R&D Personnel person(s) 383 / /
Number of unfair competition incidents cases 0 / /
Proportion of R&D Personnel % 16.63 / /
Amount of fines involved in administrative
RMB Yuan 0 / /
R&D Expenditure RMB Yuan 288,177,998 / / penalties
Proportion of R&D Expenditure % 4.67 / /
Number of Patent Applications pcs 23 / /
Number of Patents Granted pcs 9 / /
Number of Valid Patents pcs 33 / /
Product Quality and Safety
Number of Major Safety and Quality
cases 0 / /
Liability Accidents
Amount Involved in Product Damage
RMB Yuan 590,620 / /
Incidents
Number of Product Recall Batches times 0 / /
Social Contribution
Investment in Social Contribution RMB Yuan 200,000 / /
Walk in Dajin Sustainable Management Special Topics Environmental Social Governance Appendix
Standard Index Table
Hong Kong Exchanges and Clearing Limited
Shenzhen Stock Exchange (SZSE) Guidelines for the
Contents GRI Standards (HKEX) Environmental, Social and Governance
Preparation of Sustainable Development Reports
(ESG) Reporting Guide
About This Report 2-1/2-2/2-3/2-22/2-23/2-29 Article 4 / Article 6 / Article 9 / Article 28 / Article 53 /
Message from Chairman / /
About us / /
Sustainable Development Management 3-1 Article 5 / Article 9 / Article 10 / Article 53 /
Special Topic 1:Green shipping undergoes further Article 21 / Article 22 / Article 23 / Article 24 /
upgrades, leveraging autonomous shipping capabilities Article 25 / Article 26 / Article 27 / Article 28 / B2.1/B2.2/B2.3/B6.4
to establish a new global delivery advantage Article 47 / Article 50
Special Topics
Special Topic 2:Reshaping Responsible Procurement,
Forging a Sustainable Value Chain
Climate Change Response 305-1/305-2/305-3/305-5/201-2/302-4/308-2 Articles 21 to 28 / Articles 14 to 16 D
Article 24 / Article 25 / Article 26 / Article 27 /
Green Operation 302-1/302-4/305-1/305-2/305-5/306-2/308-2/414-2 A3.1
Environmental Article 35 / Article 36 / Article 37
Environmental Compliance Management A1.1/A1.3/A1.4/A1.5/A1.6/A2.2/A2.5/A3.1
Product and Service Quality 2-23/416-1/416-2/403-2/404-1 Article 47 B6.1/B6.2/B6.4/B6.5
Safety and Efficient Production Article 42 / Article 50 B2.1/B2.2/B2.3
Social Information Security and Privacy Management 2-23/416-1/418-1/403-2/404-1/414-1 Article 48 B6.3/B6.5
Talent Management Article 50 B1.1/B1.2/B2.1/B2.2/B2.3/B3.1/B3.2/B4.1/B4.2
Community Welfare 203-1/203-2/413-1 Article 39 / Article 40 B8.1/B8.2
Corporate Governance 2-23/2-27/205-1/205-2/205-3 Article 55 / Article 56 B7.1/B7.2/B7.3
Governance Compliance and Risk Management 2-23/2-27/205-1/205-2/205-3 Article 52 / Article 55 / Article 56 B7.1/B7.2/B7.3
Business Ethics 2-23/2-27/205-1/205-2/205-3 Article 55 / Article 56 B7.1/B7.2/B7.3
Appendix - Key Performance Indicators (KPIs) / / /
Appendix Standard Index Table / / /
Reader Feedback Form / / /
DAJIN HEAVY INDUSTRY CO., LTD | 2025 SUSTAINABILITY REPORT
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