Stock Abbreviation: Riyue
Stock Code: 603218
Riyue Heavy Industry Co., Ltd.
Environmental, Social, and
Governance (ESG) Report
Registered Address：Beicun Village, Dongwu Town, Yinzhou District,
Ningbo City, Zhejiang Province, China
Tel.: 86-574-55007007
Fax: 86-574-55007008
Website: www.riyuehi.com
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
This is an annual report. Unless otherwise speci?ed, the reporting period covers January 1, 2025
Reporting
to December 31, 2025. To improve the comparability and completeness of the report, certain
Period
data and content have been appropriately extended.
Unless otherwise stated, the report covers ESG-related information of Riyue and its whol-
Reporting
ly-owned and controlled subsidiaries. The information scope is consistent with that used in the
Scope
Company’s annual report.
This report has been prepared in accordance with the Self-Regulatory Guidelines for Listed Com-
Compliance
panies No.1—Standardized Operations and the Self-Regulatory Guidelines for Listed Companies
Statement
No.14—Sustainability Report (Trial) issued by the Shanghai Stock Exchange, as well as the GRI
Sustainability Reporting Standards (GRI Standards) published by the Global Sustainability Stan-
dards Board (GSSB), combined with the Company’ s speci?c practices in ful?lling social responsi-
bilities.
Unless otherwise speci?ed, the information and data cited in this report are derived from the
Data Sources Company's statistical reports and relevant documents, as well as ESG information that has been
compiled and audited by the Company. Unless otherwise speci?ed, the monetary unit is Renmin-
bi (RMB).
Riyue undertakes that this report contains no false records, misleading statements or material
Reliability
omissions, and is responsible for the completeness, accuracy, clarity, balance and comparability
Assurance
of its content.
This report is available in Chinese. You may download the electronic version of this report from
About This Report
Report Access the Shanghai Stock Exchange website (www.sse.com.cn) or the o?cial website of Riyue (www.ri-
yuehi.com), where more corporate social responsibility information is also available. For further
inquiries, or if you have any questions or suggestions regarding this report or the Company's ESG
initiatives, please contact us through the following channels:
Website: www.riyuehi.com
This is the 2025 Environmental, Social and Governance (ESG) Report released to the public by Riyue Heavy Industry Co., Address: 20F, Riyue Constellation Building, No. 7 Tianzhi Alley, Shounan Subdistrict, Yinzhou
Ltd. (hereinafter referred to as "Riyue" or "the Company"). It is intended for all stakeholders of Riyue. Adhering to the District, Ningbo City, Zhejiang Province, China Board O?ce, Riyue Heavy Industry Co., Ltd.
principles of objectivity, standardization and transparency, this report truthfully discloses the Company’s performance Postal Code: 315100
of responsibilities toward key stakeholders such as shareholders, customers, partners and employees in 2025, as well as Tel.: 0574-55007043
its e?orts in the ESG sector. It aims to respond to the expectations of stakeholders and better ful?ll social responsibilities E-mail: stock@riyuehi.com
in the future.
CONTENTS
Craftsmanship as the Soul,
Forging Outstanding Quality 37 Key Performance Indicators (KPI) Table 77
Company Names and Abbreviations
About This Report 01 Gathering Talent Strength 39 Comparison Table 84
Message from the Chairman 05 Driving Development Through Innovation 49 Indicator Index 85
About Riyue 07 Strengthening Product Quality 58 Feedback Form 86
ESG Management 17 Deepening Supply Chain Management 64
Contributing to Social Development 66
Green as the Foundation,
Charting the Ecological Chapter 21 Governance as the Guarantee,
Reinforcing the Foundation for
Steady and Sustainable Development 67
Environmental Compliance Management 23
Prevention and Control of Pollution 26 Optimizing Governance Structure 69
Refined Resource Utilization 28 Investor Relations Management 71
Climate Change Response 32 Strengthening Risk Management and Internal Control 73
Biodiversity Conservation 36 Observing Business Ethics 75
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Message from the Chairman Industry as the Duty, Serving the Needs of the Energy Transition Era
Against the backdrop of accelerated global clean energy development, the Company actively integrates into the new energy
industry chain, such as wind power, and continuously enhances its supply capacity for key components, providing solid support
for the transformation of the energy mix. Leveraging its technological expertise in large ductile iron and special alloys, the Com-
pany continues to expand application scenarios, demonstrating the responsibility and commitment of a real-sector manufactur-
In 2025, against the backdrop of accelerated global energy mix adjustments and ongoing upgrades in high-end equip-
ing enterprise in serving wind power, nuclear power, and various other equipment manufacturing sectors.
ment manufacturing, Riyue has remained focused on its core business of heavy industrial casting, steadily advancing
industrial upgrading and green transformation. We have adopted a more systematic approach to implementing Envi-
ronmental, Social, and Governance (ESG) principles, continuously strengthening the foundation for the Company's Talent as the Bedrock, Strengthening the Foundation for Sustainable Development
high-quality development while contributing to the national "Dual Carbon" goals and the growth of the real economy.
The Company consistently regards employees as a vital cornerstone of corporate growth, continuously re?ning talent cultivation
and incentive mechanisms, and building a multi-path career development system to foster mutual growth for both employees
and the enterprise. At the same time, it adheres to the baseline of production safety and occupational health management,
strengthens risk prevention and on-site management, and creates a safe, stable, and supportive working environment, thereby
Green as the Cornerstone, Building a Low-Carbon Manufacturing Foundation for Future Development
providing a solid talent foundation for long-term development.
Acknowledging the energy-intensive nature of the casting industry, the Company has persistently promoted the establishment of
a green manufacturing system. We have enhanced environmental management across multiple dimensions, from optimizing Governance as a Priority, Building a Standardized and E?cient Operational System
energy mix and improving production processes to boosting resource recycling. By advancing clean production, strengthening
pollution prevention and control, and improving water and energy utilization e?ciency, we have consistently reduced energy The Company continuously improves its modern corporate governance structure, strengthens compliance management and risk
consumption and emission intensity per unit of product. This has turned the concept of "Green Casting" into practice, making it a control, and enhances the quality and transparency of information disclosure. By incorporating key indicators such as quality,
de?ning feature of our corporate development. safety, and environmental protection into the performance evaluation system, it integrates ESG principles into the entire man-
agement process, ensuring the ful?llment of responsibilities and providing institutional safeguards for stable operations.
Innovation as the Driver, Expanding the Frontiers of High-End Equipment Manufacturing Looking ahead, as the green and low-carbon transition continues to deepen, the high-end equipment manufacturing industry
will embrace new development opportunities. Riyue will continue to uphold its foundation as a manufacturing enterprise, focus
Leveraging our National-Level Enterprise Technology Center and multi-tiered R&D platforms, we have deepened our exper-
on breakthroughs in core technologies and a green development path, and realize its own value while serving the national energy
tise in core areas such as large wind power castings and critical components for nuclear power. We have driven break-
strategy and industrial upgrading. Together with all stakeholders, it will stride toward a more sustainable future.
throughs in key materials and process technologies, supporting the trend toward larger and more advanced products. Fur-
thermore, by deepening industry-academia-research collaboration and enhancing our R&D system, we have accelerated the Fu Mingkang, Chairman of Riyue Heavy Industry Co., Ltd.
commercialization of technological achievements, thereby strengthening our competitiveness within the global high-end
equipment industry chain.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
About Riyue
Key Basic Components for Wind Power
Company Pro?le
Riyue Heavy Industry Co., Ltd. was established in December 2007, succeeding the Malleable Iron Foundry founded in Yinzhou
District, Ningbo, in 1984. Since its inception, the Company has been dedicated to the R&D, production, and sales of large-scale
Front Housing Front Casing Main Casing Hollow Drive Housing Intermediate Housing Lower Housing
heavy industrial equipment castings. Its product portfolio includes wind power castings, plastic machinery castings, diesel engine
castings, machining center castings, and other castings, primarily used in energy, general machinery, o?shore engineering, nucle-
ar power, and other heavy industrial equipment sectors. The Company was successfully listed on the Shanghai Stock Exchange in
December 2016.
The Company is committed to becoming a high-tech heavy industry enterprise featuring "low-carbon, eco-friendly and harmoni-
ous development", as well as a leading supplier of basic material research and high-end equipment components for the global Upper Housing Front Housing Main Shaft Sleeve 6X Secondary 6X Rear Cover 6X Rear Housing
Planetary Carrier
high-end equipment industry. Its products are mainly applied in new energy, general machinery and other sectors. While striving
to expand and strengthen its two core product lines—wind power castings and plastic machinery castings, the Company also
actively promotes multi-sector layout through the application of ductile iron thick-section technology in nuclear power equip-
ment and the research and development (R&D) of alloy steel, thus forging unique competitive advantages in the heavy industrial Energy
equipment sector. Industry
Solutions
Planetary Carrier Housing Floor Panel
Key Basic Components of Diesel Engines
MK3E Base 12MW Base V20 Baes 9MW Main Shaft QB Hub 20 Hub
Engine Block Air Outlet Housing
Heavy Marine
Industry
Solutions
YC85 Main Shaft YC85 Bearing Seat V20 Bearing Seat 6050 Main Frame 6X Hub V12 Base
Cylinder (Free End) Crankshaft Bearing Housing Air Intake Housing
Key Basic Components for Ships Key Basic Components for Wind Power
Key Basic Components
for Thermal and Nuclear Power
Ultra-Supercritical Ultra-Supercritical
Intermediate Pressure Intermediate
Outer Casing Pressure Outer
Bracket IMS Planetary Carrier Rotor Locking Flange Main Frame Upper Part Casing Lower Part
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Key Basic Components for Machining Centers Other Key Basic Components
Worktable Bed Cross Bed Ram Column Beam Rotating Body
Housing Engine Block Ingot Mold Re?ux Chamber Spherical Pressure
Rod of Main
Working Cylinder
Key Basic Components for Mining
Slider Machine Casing
Housing Grinding Disc Inlet and Outlet Ends Grinding Roller Flange Locking Ring
Key Basic Components for Injection Molding Machines
Key Basic Components for
High-Speed Rail and Rail Vehicles High-Speed
Rail and
General Rolling Stock
Machinery Industry
Industry Solutions
Solutions Oil Cylinder Injection Unit
Clamping Plate PDM385 Upper PDM385 Lower PDM490 Upper PDM490 Lower
Front Plate
Housing Housing Housing Housing
Moving Plate Injection Unit Long Cylinder Punching Cylinder
Rear Plate
Key Basic Components for High-End Alloy Steel
Nose Drive Shaft A-Frame Primary Planetary Drive Casing Impeller
Carrier
Housing Body Bracket Rotary Table
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Strategy and Culture Organizational Structure
To build a globally renowned high-tech heavy industry enter-
Technology and Process R&D Institute
Corporate Vision prise characterized by low-carbon, eco-friendly, and harmoni-
ous operations. R&D and Production Base
Quality and Safety Center
To be a leader in promoting the widespread use of clean and renewable
Financial Management Center
Corporate Mission energy, making critical contributions to achieving green and sustain-
able development for humanity. Digitalization Center
Human Resources Center
Administrative Management Center
Core Values Health, Loyalty, Innovation, Quality.
Sales Company
Operation Excellence Center
Production Management Center
Safety, Innovation, E?ciency,
Corporate Spirit Collaboration, Striving for Excellence. Supply Chain Management Center
Strategy and
Culture
Riyue Heavy Ningbo Rixing Casting Co., Ltd.
Jointly building a community with a shared
Employee Industry Co., Ltd. Ningbo Essence Metal Machinery Co., Ltd.
future for our enterprise, enabling employees to
Philosophy spread the seeds of love and reap happiness.
Ningbo Yuexing Metal Machinery Co., Ltd.
Ningbo Riyue Nuclear Equipment Manufacturing Co., Ltd.
Business Ningbo Riyue Essence Precision Manufacturing Co., Ltd.
All for customers, all from innovation.
Philosophy
Ningbo Mingling Technology Co., Ltd.
Ningbo Riyi Intelligent Equipment Co., Ltd.
Safety ?rst, prevention as the cornerstone, Riyue Heavy Industry (Gansu) Co., Ltd.
Safety Philosophy
comprehensive management.
Xiangshan Riyue Zhixin Testing Technology Co., Ltd.
Ningbo Riyue Rixing New Energy Technology Co., Ltd.
Subei Zhexinneng Wind Power Co., Ltd.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Development History
Leveraging its strengths in technology, products, scale, quality and brand, the Company has established a long-term
and stable customer base and secured a solid market position in the large heavy industrial equipment casting sector.
Rated as a National Grade I
Enterprise in Work Safety Stan-
dardization, National Green
Casting Demonstration Enter-
Recognized as a Provincial prise, and Zhejiang Provincial
High-Tech Enterprise; its Model Enterprise of Green and
"Thick-Section Ductile Iron Low-Carbon Economy (3rd
Signed a strategic coopera-
Castings" project was Session); certi?ed under the
Successfully developed a tion agreement with Ningbo
included in the National OHSMS 18001 Occupational
hundred-ton-level ductile Institute of Materials Technol-
Establishment of Malleable Torch Program; the Compa- Health and Safety Manage- Recognized as a Key National
iron spent fuel transport con- ogy & Engineering, the Chinese
Iron Foundry in Yin County, ny was certi?ed as a Nation- ment System. High-Tech Enterprise under
tainer, ?lling a domestic gap, Academy of Sciences (CAS),
Ningbo City (predecessor of al High-Tech Enterprise. the National Torch Program.
and obtained the "First o?cially launching the indus-
Riyue Heavy Industry Co.,
trialization of the "High-Strength
Ltd.). Approved as a National Domestic Set" certi?cation;
Corrosion-Resistant Special
Enterprise Technology Center invested in and established
Alloy Precision Castings" proj-
subsidiaries: Riyue Heavy
and awarded the title of
Industry (Gansu) Co., Ltd., ect.
"Green Factory" by the Minis-
Approved to establish a Passed certi?cations by clas-
Postdoctoral Programme si?cation societies including
try of Industry and Informa- Ningbo Riyi Intelligent Equip-
ment Co., Ltd., and Xiangshan
Awarded the title of Ningbo (pilot); elected as a Vice GL, ABS and LR, as well as
tion Technology (MIIT).
Riyue Zhixin Testing Technol-
High-Tech Enterprise; estab- President Unit of the China National-Level Laboratory
ogy Co., Ltd.
lished a provincial-level Foundry Association. accreditation.
Enterprise Technology
Center. Successfully listed on the
A-share market of the Shang-
Successfully developed and
hai Stock Exchange with the
mass-produced the world's
stock code 603218. Invested in and established
largest 11MW land-based
the subsidiary Ningbo Riyue
wind power gearbox casting;
Essence Precision Manufac-
invested in the establish-
turing Co., Ltd.
ment of Jiuquan Zhexinneng
Wind Power Co., Ltd.; the key
wind power components
project of Riyue Heavy Indus-
try (Gansu) Co., Ltd. with an
annual output of 200,000
tons (100,000 tons in Phase I)
was o?cially put into opera-
tion.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Honors for 2025
Riyue
Riyue
Ningbo Enterprise Federation, Ningbo Entrepreneurs Ningbo Enterprise Federation, Ningbo Entrepreneurs
Association, Ningbo Federation of Industrial Economy Association, Ningbo Federation of Industrial Economy
Riyue
Riyue
Casting Co., Ltd.
Ningbo Rixing
Riyue
Ningbo Yinzhou District High-Tech and Yinchuan Weili Transmission
Intellectual Property Association Technology Co., Ltd. 2025 Ningbo Top 100 Comprehensive Enterprises Low-Carbon Product Supplier Certi?cate
Ningbo Enterprise Federation, Ningbo Entrepreneurs
China Electronics Energy Saving Technology Association
Association, Ningbo Federation of Industrial Economy
Riyue
Riyue
Technology Co., Ltd.
Ningbo Mingling
Casting Co., Ltd.
Ningbo Rixing
National Model Enterprise for Safety Grade A Enterprise in Work Safety Credit
Culture Building Rating of Ningbo
Zhejiang Province AA-Level Publicly Recognized Enterprise Meeting the Requirements of the
China Association of Work Safety Ningbo Emergency Management Bureau Enterprise for Contract Honoring and Credit Valuing Speci?cation Conditions for Foundry Enterprises
Ningbo Municipal Administration for Market Regulation China Foundry Association
Riyue Heavy Industry
Manufacturing Co., Ltd.
Jinghua Precision
Ningbo Riyue
(Gansu) Co., Ltd.
Riyue
Riyue
Five-Star Primary-Level Party Organization Excellent Enterprise in the Survey of Provincial Outstanding Contributing Enterprise Xianxiang Town Science and Technology
Large-Scale Private Enterprises for Achieving "50%+ Completion on Both Key Digital Innovation Award
Organization Department of the CPC Ningbo
Municipal Committee Indicators" in the First Half of 2025
Zhejiang Federation of Industry and Commerce People's Government of Xianxiang Town
O?ce of the Leading Group for Strengthening
Industrial Development of Gansu Province
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
ESG Management Major trends relevant to the Company are identi?ed through policy analysis, industry research, peer
Topic benchmarking, and stakeholder communication and surveys. Material topics are further deter-
Identi?cation mined in light of national policies and key concerns of the capital market.
The Company actively responds to the call for sustainable development, deeply integrates ESG principles into all aspects Rational analysis is conducted on the survey ?ndings. Combined with national policies, focuses of
of its operations, and comprehensively drives high-quality growth across the organization. the capital market and peer performance, a ?nal priority ranking of stakeholder material topics is
Materiality
Assessment formulated.
ESG Management The Company’ s management reviews the results of the materiality analysis, con?rms the key disclo-
sure items of this report, as well as the work objectives and implementation plans for future ESG
Management
In alignment with the national "Dual Carbon" goals, the Company has established a clear sustainable development strategy and Con?rmation management.
framework, advancing the building of an ESG management system enterprise-wide. It is committed to fostering a sustainable
corporate culture and building a responsible social image, embedding ESG governance deeply into every facet of strategic plan-
ning, major decision-making, and daily operations. This has resulted in a rigorous top-down governance structure. （High）
By setting ESG strategic objectives, accurately identifying relevant risks, standardizing information disclosure, and implementing
strict performance management and evaluation, the Company continuously strengthens its core competencies in ESG dimen- Anti-commercial bribery and anti-corruption Energy utilization
sions. This ongoing optimization of the governance structure e?ectively promotes the implementation and deepening of ESG Anti-unfair competition Innovation-driven development
initiatives. Water resources utilization Product quality
Furthermore, the Company incorporates ESG-related indicators—such as quality e?ciency, work safety, energy conservation, Prevention and control of pollution Environmental management
environmental protection, and compliant operations—into the performance appraisal systems for both management and Social welfare Supply chain security
employees. This ensures that sustainable development principles are integrated throughout the entire process of daily opera- Data security
tions and management. ESG management
Compliant operation
Material Issue Analysis Risk prevention and control
Customer service
To better address the expectations and demands of our stakeholders, the Company regularly identi?es, assesses, prioritizes, and
con?rms ESG topics through methods such as external benchmarking and internal interviews. This process evaluates the level of Impact
stakeholder attention to each topic and understands their expectations regarding the Company's ESG performance. In 2025, the
Materiality Digital transformation Climate change response
process for determining material issues of the Company is as follows: Corporate governance Employee health and safety
Information disclosure
Employee development
Employee care
Investor relations management
Intellectual property protection
Internal control management
Circular economy
Stakeholder engagement
Biodiversity and ecosystem conservation
（Moderately Technology ethics
High)
(Moderately High) Financial Materiality （High）
Note: "Equal treatment of SMEs" and "due diligence" are disclosure topics applicable to speci?c entities only, and are
not identi?ed as material topics by the Company. Accordingly, no relevant information is disclosed at this stage.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Stakeholder Engagement
The Company actively ful?lls its social responsibilities and attaches great importance to the expectations and demands of stake-
holders. Through diverse communication channels, the Company fully solicits opinions and suggestions from stakeholders
including government and regulatory authorities, shareholders, partners, local communities and employees, so as to improve its
ESG performance in a targeted manner and continuously optimize its sustainable development strategies and practices.
Stakeholders Expectations and Demands Communication and Response
Implement national policies
Align with national strategies Cooperate with local authorities
Government
and Regulatory Serve regional economy Establish and improve anti-corruption
Authorities Ensure compliant operations governance systems
Abide by business ethics
Upgrade operation and management capabilities
Improve corporate governance Promote digital transformation
Shareholders Protect shareholder rights Organize investor surveys and communications
and Investors Investor relations management Issue regular reports and interim announcements
Information disclosure Hold investor exchange meetings
Distribute dividends to shareholders
Establish fair promotion channels
Protect basic rights and interests Conduct professional training and career
Support personal development development programs
Employees
Provide employee bene?ts Carry out employee satisfaction surveys
O?er employee care Implement workplace safety measures
Maintain daily communication
Optimize industrial chain layout
Ensure product quality and safety
Improve product quality
Customers Operate with integrity and
compliance Conduct special communication and Q&A sessions
Provide after-sales services Maintain daily communication
Operate customer service hotlines
Uphold fair competition Ful?ll contractual obligations in good faith
Pursue integrity and mutual Sign cooperation agreements
Partners bene?t
Improve supply chain management
Practice transparent
procurement Abide by business ethics
Promote green and low-carbon
Advance green transformation
development
Environment
Innovate green technologies
Protect the ecological environment
Promote community development Support community construction
Community and
Participate in community public Engage in charitable initiatives
Public
welfare activities Organize volunteer services
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Green as the
Foundation,
Charting the
Ecological Chapter
The Company remains committed to the path of green devel-
opment, establishing a systematic environmental manage-
ment system built upon ?ve key dimensions: environmental
compliance, pollution prevention, resource utilization,
climate change response, and biodiversity protection. Based
on compliant operation, focused on pollution control, orient-
ed toward resource recycling, guided by low-carbon transi-
tion, and extended to ecological protection, the Company
continuously improves its environmental performance
through ongoing green technological upgrading and cleaner
production practices, driving steady progress of the enterprise
on the green development track.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Environmental Compliance Management
The Company continues to establish and improve its environmental management system, consolidate its environ-
mental protection foundation, and empower high-quality development of its environmental protection initiatives.
Environmental Management System Riyue
Riyue Heavy Industry (Gansu) Co., Ltd. Ningbo Rixing Casting Co., Ltd. Ningbo Mingling Technology Co., Ltd.
Environmental
Environmental Management Environmental Management Environmental Management
Management System
Governance Certi?cation Certi?cate
System Certi?cation Certi?cate System Certi?cation Certi?cate System Certi?cation Certi?cate
The Company attaches great importance to the environmental impacts arising from its operations and strictly complies with the
Environmental Protection Law of the People's Republic of China, the Environmental Impact Assessment Law of the People's
Strategy
Republic of China, the Regulations on the Administration of Environmental Protection for Construction Projects, and the Manage-
ment Measures for Emergency Response to Environmental Incidents. It has formulated the Environmental Protection Manage- The Company fully implements the new development philosophy of innovation, coordination, green development, open-
ment System to conduct comprehensive and orderly management of environmental compliance work. The Company has contin- ness and sharing, continuously improves its environmental management mechanism, and enhances its ability to prevent
uously improved its environmental management system, clari?ed its management structure, and established an environmental and control environmental risks. In accordance with the Management Procedures for Identi?cation and Evaluation of Envi-
protection leading group for environmental protection. The factory director serves as the overall person in charge of the Compa- ronmental Factors, the Company systematically identi?es and evaluates environmental factors on an annual basis to accu-
ny's environmental protection, under whom six professional teams are responsible for speci?c environmental a?airs. rately pinpoint environmental risk points. On this basis, it formulates clear and feasible governance plans and promotes
their implementation in an orderly manner. Through systematic management, the Company empowers pollution preven-
Specialized Team for Environmental tion and control, resource conservation and e?cient utilization, and greenhouse gas (GHG) emission reduction, committed
Protection Monitoring to achieving high-quality development.
Specialized Team for Environmental Impact, Risk, and Opportunity Management
Protection Equipment & Facility Support
The Company and its subsidiaries conduct environmental risk assessments annually to systematically identify and compile
an environmental factor identi?cation checklist. After approval, this checklist serves as the basis for environmental risk
Deputy Executive Group Specialized Team for Power Support
of Environmental Protection Facilities management, ensuring comprehensive identi?cation and control of environmental risks. The Company has formulated the
Group Leader: Leader: Deputy Factory
Director for Operations Contingency Plan for Environmental Emergencies, which clari?es the management responsibilities, content, and emergency
Factory
Director procedures for each functional department, thereby enhancing the ability to respond to unexpected incidents and ensuring
Specialized Team for Production &
Hazardous Solid Waste Disposal the safety of employees. Emergency drills are conducted annually to improve employees' emergency response skills and
strengthen collaboration among di?erent departments.
Deputy Group Leader:
Deputy Director for Specialized Team for Domestic Waste
Production
and Sewage Treatment Hazardous Chemical Leak Emergency Drill Conducted by Riyue Heavy Industry (Gansu) Co., Ltd. Case
Specialized Team for Environmental
In July 2025, Riyue Heavy Industry (Gansu) Co., Ltd., in accordance
Protection Logistics Support
with the emergency plan, conducted an emergency drill for a hazard-
ous liquid chemical leak.simulating a hazardous liquid chemical leak.
The exercise aimed to ensure that emergency response team mem-
bers could correctly utilize various protective equipment, thereby
As of the end of 2025, the Company and its three subsidiaries have obtained the GB/T
improving the timeliness and e?ectiveness of rescue operations.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Prevention and Control of Pollution
The Company places high importance on environmental awareness and capacity building, continuously conducting training
and awareness campaigns related to environmental protection. It integrates the green development concept into all
aspects of daily management and operations. Through various methods such as thematic training sessions, case studies,
and policy dissemination, the Company enhances employees' understanding of energy conservation, emission reduction,
resource e?ciency, and compliance management, while strengthening the sense of environmental responsibility across the
The Company strictly complies with relevant national laws and regulations, including the Water Pollution Preven-
entire workforce.
tion and Control Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention
Riyue Conducts Environmental Empowerment Training for Safety and Environmental O?cers and Control of Atmospheric Pollution, the Law of the People's Republic of China on the Prevention and Control of
Case
Environmental Pollution by Solid Waste, and the Law of the People's Republic of China on the Prevention and
The Company places great emphasis on enhancing safety and environmental management capabilities by conducting Control of Noise Pollution. It has established the Waste Gas, Wastewater, and Noise Control Procedures and the
"Environmental Empowerment Training for Safety and Environmental O?cers". This initiative aims to comprehensively Waste Pollution Control Procedures to ensure that pollutant discharges meet standards, thereby minimizing
strengthen the professional competence, risk identi?cation skills, and emergency response capabilities of safety and impacts on environmental health and safety.
environmental personnel.
The Company is committed to reducing pollutant emissions and has set emission reduction targets to contribute
comprehensively to building a green eco-environment. Regular environmental monitoring is conducted to ensure
compliance with discharge standards. In 2025, the Company achieved a 100% compliance rate in pollutant
The Company is attentive to the impact of environmental issues on surrounding communities. If environmental complaints
emissions.
are raised by stakeholders, the Company will promptly carry out acceptance, investigation, recti?cation, and review pro-
cesses to continuously improve the e?ectiveness of environmental management.
Indicators and Targets
Wastewater
In adherence to the Integrated Wastewater Discharge Standard, the Company operates industrial wastewater treatment
stations and comprehensive treatment facilities. After generation, wastewater undergoes a "physicochemical + biochemi-
In 2025, neither the Company nor its subsidiaries recorded any violations of environ- cal" treatment process at the industrial wastewater treatment station before being further treated at the comprehensive
mental laws or regulations. wastewater treatment station, ultimately achieving compliant discharge. To reduce wastewater generation at the source,
the Company selects production processes and manufacturing technologies that minimize water consumption and avoid or
reduce water pollution.
Green O?ce Indicator Unit 2025
The Company actively promotes green o?ce practices, encouraging employees to adopt eco-friendly behaviors both at Wastewater Discharge Ton 93,813.80
work and in daily life. By collaborating with employees, the Company aims to advance toward a more eco-friendly and
Industrial Wastewater Discharge Ton 4,364.80
e?cient future.
Domestic Wastewater Discharge Ton 89,449.00
Paper Conservation Water Conservation
Promote paperless o?ce practices, advocate Promote rational and recycled water usage.
for double-sided printing and copying of rou- Encourage turning o? taps tightly after use and Waste Gas
tine documents, and reuse discarded paper. reporting broken water pipes promptly to rele-
vant departments for repair to prevent water The Company has equipped itself with waste gas pollution prevention facilities to ensure compliant treatment of various
leakage, dripping, running and over?ow. gaseous pollutants generated during production processes, including those from sand mixing, molding and core making,
melting, pouring, shakeout, sand regeneration, and cafeteria cooking fumes. The Company maintains daily operation and
Electricity Conservation Resource E?ciency management of these facilities to ensure their e?ective functioning and commissions third-party organizations to conduct
Encourage employees to switch o? electrical Actively advocate the principle of "Do not annual waste gas emissions testing, ensuring all discharges meet standards.
equipment when not in use to reduce energy discard, do not abandon, and do not replace
waste and potential hazards. items while still functional". Encourage employ-
ees to use toner-saving printing modes, re?ll- kg of waste gas pollutants,
able water-based pens, reusable binder clips the Company
all of which were discharged in
and paper clips, and recycle old ?le folders. generated
compliance with regulations.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Reducing Noise Sources
Volatile organic compound (VOC) collection and treatment equipment is installed to reduce
fugitive emissions of waste gas. Low-noise equipment is prioritized for procurement; shockproof foundations or vibration-damping pads are installed
The maintenance of organic waste gas treatment facilities is strengthened, and activated for vibrating equipment; regular maintenance is performed on noise-generating equipment.
Waste Gas
carbon is replaced as required to ensure the normal operation of waste gas treatment equip-
Pollutant
ment and reduce waste gas emissions.
Treatment
The process of "catalytic combustion + activated carbon treatment" is adopted to e?ectively
Blocking Noise Transmission
treat organic waste gas from coating and touch-up painting, so that waste gas generated in
the coating process meets emission standards and achieves compliant discharge.
Workshops are constructed with solid walls lined with sound-absorbing panels. Windows in production areas are
equipped with permanently closed soundproof windows, and doors remain shut during operations to isolate noise.
Silencers are installed on the exhaust ducts of dust removal equipment fans. Fans are centrally housed in fan rooms or
Solid Waste ?tted with acoustic enclosures. Green planting is utilized to aid in noise reduction and vibration damping.
The Company attaches great importance to the full lifecycle management of waste and implements standardized control over all
links from generation, classi?cation and storage to disposal. The Company has formulated the Solid Waste Pollution Control Pro-
cedures to regulate waste management, clarify waste types, treatment methods and management processes. Waste is classi?ed,
Re?ned Resource Utilization
labeled and fully recorded in accordance with national and local regulations to ensure compliance and controllability in all links
of waste generation, storage, transportation and disposal.
General solid waste mainly includes domestic waste, dust, smelting slag, waste molding sand, and iron scraps. Domestic waste is
collected and sorted by the Company, stored in designated areas with uni?ed identi?cation labels, and processed by quali?ed
recycling stations certi?ed by the government's environmental management authorities. For general solid waste generated
during production, the Company actively promotes recycling and reuse. The Company places high importance on the conservation of energy and resources. It has established the Energy
and Resource Management Procedures to enhance resource management, strengthen the resource management
Hazardous waste includes waste chemical liquids, packaging of waste chemical reagents, waste paint and its packaging. In com-
system, and comprehensively drive the e?cient utilization of water resources and energy, as well as promote ma-
pliance with national laws and regulations, the Company has formulated the Hazardous Waste Storage Management Regula-
terial recycling, thereby injecting strong momentum into the Company's sustainable development.
tions, specifying storage requirements and maintaining hazardous waste inventory records for uni?ed management. All hazard-
ous waste is processed by designated agencies certi?ed by the government's environmental management authorities.
Indicator Unit 2025 Water Resources Utilization
Hazardous Waste Generation Ton 480.93
The Company focuses on the economical use of water resources, continuously working to reduce water intensity per unit of oper-
ation by optimizing water usage structures, improving equipment e?ciency, and strengthening daily water management. At the
Hazardous Waste Generation Intensity (by revenue) Ton/RMB 1 million revenue 0.08
same time, the Company enhances water monitoring and re?ned management, promotes water-saving awareness among
General Waste Generation Ton 76,880.19 employees, and continually improves water resource utilization e?ciency while ensuring operational needs are met.
General Industrial Solid Waste Generation Intensity (by revenue) Ton/RMB 1 million revenue 12.29
Improve the water metering system by adding two secondary water meters to
enhance the control and management of water resource utilization.
Noise Use smart water-saving devices to conserve domestic water.
Utilize reclaimed water for tasks such as workshop cleaning.
The Company strictly complies with the Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008) Class III
Conduct regular inspections of the water supply system to ensure equipment is free
standards and actively implements noise control measures to ensure that noise at the plant boundary does not exceed limits day
from leaks and over?ows.
or night, thereby avoiding impact on the daily lives of nearby residents.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Indicator Unit 2025
Total Water Consumption 10,000 tons 72.23
Freshwater Consumption 10,000 tons 37.94
Total Volume of Recycled Water 10,000 tons 34.29
Proportion of Recycled Water Consumption % 47.48
Riyue Ningbo Rixing Casting Co., Ltd. Riyue Heavy Industry (Gansu) Co., Ltd.
Energy Utilization Energy Management System Certi?cate Energy Management System Certi?cate Energy Management System Certi?cate
Governance
The Company has formulated energy management systems including the Regulations on Resource and Energy Management, the Strategy
Measurement Management System for Energy, and the Penalty Provisions for Violations and Waste in Energy Use, clarifying the The Company adheres to the energy policy of "Low-Carbon Environmental Protection, Clean Circulation, Conservation & E?cien-
requirements of the energy management system. As of the end of 2025, the Company and two of its subsidiaries have obtained cy Improvement, and Green Casting". By focusing on e?cient energy management, it aims to minimize energy consumption,
energy management system certi?cation. enhance energy utilization rates, and promote sustainable corporate development.
Impact, Risk, and Opportunity Management
Energy Management Formulate the energy policy.
System Appoint the management representative and approve the energy management leading group. The Company primarily utilizes externally purchased diesel, gasoline, electricity, coke, and coal as its main energy sources. While
Provide resources required for the operation and improvement of the energy management ensuring normal production and operations, the Company prioritizes electricity conservation, maintains the safety and cost-ef-
system, de?ne the scope and boundaries of the energy management system, and communi- fectiveness of power supply equipment, identi?es and analyzes causes of abnormal electricity usage, and implements improve-
cate the importance of energy conservation management. ments within set deadlines. The Company executes the transportation and usage of energy, as well as the installation, mainte-
Top Consider energy performance in long-term planning, ensure the establishment of energy objec- nance, and upkeep of energy equipment, in accordance with relevant procedures. In the event of potential energy supply di?cul-
Management tives and indicators, and ensure the establishment of appropriate energy performance param- ties, relevant departments are noti?ed in advance.
eters.
Report on energy management to superiors and government authorities in accordance with Routine Routine supervision and maintenance of equipment are conducted to improve operational e?ciency
regulations. Management and reduce unnecessary energy waste.
Conduct annual management reviews.
Application of
LED energy-saving lights are installed in workshops for illumination. Intelligent temperature control
Establish, implement, maintain and continuously improve the energy management system in Energy-Saving
switches are adopted by all equipment for cooling, heat dissipation, and heating.
Appliances
accordance with relevant standards.
Assign relevant personnel under the authorization of the management to jointly carry out
energy management activities. Waste Heat
Waste heat recovery equipment from air compressors is e?ectively utilized to reduce electricity con-
Recovery and
Report on energy performance and energy management system performance; and plan e?ec- sumption by improving compressor e?ciency.
Management Utilization
tive energy management activities.
Represen-
tative Raise awareness of the energy policy and energy objectives among all employees.
Clean Energy
Clearly de?ne and communicate responsibilities and authorities related to energy manage- Solar photovoltaic panels are installed on factory rooftops to achieve clean energy substitution.
Substitution
ment to e?ectively promote energy management.
Formulate criteria and methods to ensure the e?ective control and operation of the energy
management system.
All The major responsible department shall organize all employees to implement and maintain
Depart- the energy management system. All units shall carry out relevant work of the energy manage-
ments ment system in accordance with speci?c requirements.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Climate Change Response
Indicators and Targets
the Company continued to promote energy conservation
total energy
consumption tons of
standard
coal (tce)
photovoltaic
consumption
power generation
tce
The Company pays attention to global climate change, establishes a system for identifying and assessing climate
risks, strictly manages GHG emissions, actively participates in the carbon trading market, and formulates and
implements e?ective climate change response strategies to ensure stable corporate development.
Materials and Circular Economy Governance
The Company strictly complies with laws and regulations such as the Energy Conservation Law of the People's Republic of
The Company adheres to the philosophy of green circular development and systematically advances the establishment of
China and the Environmental Protection Law of the People's Republic of China. It promotes ecological wellbeing and a sus-
an e?cient resource system by focusing on key areas such as raw material utilization, material management, green logis-
tainable economy, actively advances the building of a green manufacturing system, and explores improvements to the gov-
tics, and the circular economy. This approach continuously enhances resource utilization e?ciency and environmental per-
ernance framework and risk management system related to climate change, committing to mitigating and addressing
formance, achieving synergistic improvements in both economic and ecological bene?ts.
climate change.
The Company designates indicators for energy conservation, environmental protection, and low-carbon development as
The Company signi?cantly reduces production loss and waste by optimizing product design, innovat- mandatory targets. These are incorporated into the annual business performance assessments for both management and
Raw Material subsidiary enterprises, and are directly linked to annual performance-based compensation. The Company conducts irregu-
ing production processes, and strengthening full-process control. It substantially improves the raw
Utilization
material utilization rate per unit of product and actively promotes the application of green materials. lar advocacy on energy conservation and environmental protection concepts every year, and commends and incentivizes
departments and individuals with outstanding achievements in energy conservation, emission reduction, carbon reduction
and e?ciency improvement.
The Company establishes rigorous management procedures to strictly standardize the transportation
Material
and storage criteria for paper and other key materials. By implementing re?ned protective measures
Management
such as moisture-proo?ng, waterproo?ng, and sun protection, it ensures the stable quality of materi-
als throughout their lifecycle, thereby reducing resource waste caused by deterioration or damage at As of the end of 2025, the Company has been awarded four Nation-
the source. al-Level green factory certi?cations.
The Company minimizes the environmental impact of logistics activities by promoting the use of Ningbo Rixing Ningbo Mingling Riyue Heavy Industry
Green Riyue
Logistics reusable packaging, optimizing warehouse and distribution networks, and improving vehicle space Casting Co., Ltd. Technology Co., Ltd. (Gansu) Co., Ltd.
utilization rates.
The Company actively practices the development principle of "recycling, reduction, and reuse" and
Circular
Economy vigorously promotes the reuse of resources within the production process. Furthermore, it actively
utilizes scrap steel and recycled furnace feedstock to enhance the utilization rate of renewable
resources. In 2025, the Company procured approximately 290,000 tons of scrap steel.
Smelting slag Used as raw material for bricks or cement.
Resource
Reuse Measures
Waste molding sand and iron scraps Recycled and reused as raw materials.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Strategy Impact, Risk, and Opportunity Management
The Company attaches importance to the potential impacts of climate change on its business operations and develops The Company attaches great importance to the challenges and opportunities brought by climate change and actively estab-
response plans for possible climate-related risks. Simultaneously, the Company actively implements the national "Dual lishes a systematic climate risk management system. It fully integrates climate risk into the enterprise risk management
Carbon" strategy, formulates long-term strategic development plans, focuses on expanding new tracks for new energy process around the four key links of identi?cation, assessment, control, and reporting.
equipment casting and global low-carbon compliance layout, and continuously increases capital investment to help
achieve long-term technological leadership and product diversi?cation goals.
Climate Risk Identify and describe climate risk factors a?ecting various business segments of the group from the
The Company actively identi?es potential impacts brought by climate change. The main types of climate-related risks iden-
Identi?cation dimensions of physical risks and transition risks, and summarize their associated risk categories.
ti?ed and their speci?c descriptions are as follows:
Climate-Related Risks Countermeasures Climate Risk Assess the impact of climate risk factors on the group's business segments, as well as their dura-
Assessment tion and intensity, from both qualitative and quantitative perspectives.
factor identi?cation and dynamically update the risk inven-
tory; regularly inspect potential hazards in plants, drainage
and waterlogging in summer, which may damage
systems, anti-freezing facilities and other structures, carry
buildings and equipment in factories, workshops and Climate Risk Use the results of risk identi?cation and assessment as the basis for business decisions to manage
out upgrades and renovations as needed, and improve
o?ce buildings, causing asset losses and even poten-
disaster resistance standards. Control climate-related risks.
tial safety incidents for employees.
Acute Risks: formulate special emergency response plans, stockpile
Extreme
such as heavy snowstorms and extreme low tempera-
emergency supplies for ?ood prevention, cold protection Implement climate risk reporting to ensure that management receives timely updates on the
tures in winter. Road closures or tra?c controls may
and other purposes, and conduct regular emergency drills Climate Risk objectives, plans, implementation status, and progress of climate risk management, thereby
Weather lead to disruptions in raw material supply and delays Reporting
Physical to ensure rapid and e?ective responses. enhancing its e?ectiveness.
in ?nished product delivery, increasing the risk of
Risks 3. Establish safety stocks of key materials to prevent delivery
customer contract breaches; higher equipment failure
delays caused by logistics disruptions; strengthen anti-freez-
rates in low-temperature environments will raise
ing maintenance of equipment to reduce failures and main-
maintenance costs and directly a?ect production
tenance costs; communicate production progress with The Company actively monitors the strategic opportunities arising from climate change. The global carbon neutrality pro-
stability and business continuity.
customers in a timely manner and negotiate plan adjust- cess and the energy transition driven by surging demand for AI computing power are fueling the continuous expansion of
ments if necessary to prevent breach risks.
the wind power industry. As a core supplier of wind power castings, the Company is presented with broad market growth
Chronic Risks: 1. Intensify R&D and application of carbon emission reduc- potential.
Persistent high Rising sea levels and increasing average temperatures tion technologies and adopt higher-e?ciency cooling
temperatures, raise the Company's energy costs and weaken prod- technologies and equipment. In response to acute physical risks, the Company actively addresses extreme weather events such as typhoons to safeguard
droughts, etc. uct competitiveness. 2. Promote green development to mitigate relevant climate
change risks. assets and production safety, and prevent disruptions to business continuity and economic losses. In response to chronic
physical risks, the Company conducts organizational and product GHG accounting in accordance with the General Princi-
carbon accounting system to ensure data traceability, accel- ples for the Accounting and Reporting of Greenhouse Gas Emissions by Industrial Enterprises, the Requirements for the
gy-consuming industries such as casting may face
erate product carbon footprint certi?cation, take the Accounting and Reporting of Greenhouse Gas Emissions and other relevant standards. It also intensi?es R&D in the ?eld of
initiative to align with international low-carbon standards, and
Policy and stricter carbon emission standards and carbon tax
prepare for EU CBAM compliance in advance to reduce export new energy equipment, committing to the achievement of the "Dual Carbon" goals. The Company's GHG emission sources
Legal Risks policies, increasing compliance costs.
barriers. mainly include direct GHG emissions such as emissions from stationary fossil fuel combustion, production process emis-
nism) may increase export costs and a?ect the Com-
optimize casting processes, improve energy e?ciency, reduce
sions, and mobile source combustion, as well as indirect GHG emissions generated from upstream production correspond-
pany's competitiveness in overseas markets.
carbon emission intensity per unit product, and achieve ing to purchased electricity and heat consumed in the Company's production, operation and o?ce activities.
carbon reduction and cost savings at the source.
Increasingly stringent requirements for VOCs emis-
Continuously implement energy-saving and carbon-re-
sions and solid waste disposal, as well as rising
duction technological transformations based on current
standards for product environmental performance,
Technological
product performance and production processes,
technical levels, optimize processes and equipment, In 2025, Ningbo Rixing Casting Co., Ltd. maintained
Risks install fault prevention facilities, perform regular equip-
Transition coupled with accelerated R&D and application of
ment maintenance, and promote the use of clean valid authorization for the use of carbon label cer-
clean technologies amid the low-carbon transition,
Risks may result in higher costs for technological innovation.
technologies. ti?cation.
Conduct rational analysis of market conditions, continu-
Shifts in upstream and downstream supply chains
ously monitor price trends and supply-demand changes
Market Risks and customer preferences may increase focus on
for products and raw materials, and conduct adequate
green and low-carbon products.
preliminary research.
social responsibilities, strengthen green production,
Poor performance in addressing climate change and maintain green ecology, and enhance the Company's
Reputational
sustainability may lead to negative feedback from green image.
Risks Ningbo Rixing Casting Co., Ltd.
stakeholders. 2. Regularly publish the Company's ESG reports, disclos-
ing information such as the completion progress of Authorization for Use of Carbon Label
energy-saving and emission-reduction targets.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
With the deepening of the Company's R&D in the new energy equipment sector, new production factors centered on "technologi- Note 4: Emission factors are prioritized based on the recommended values from the o?cial accounting guidelines issued by the Ministry of Ecology
and Environment. Speci?cally, emission factors for fossil fuel combustion are calculated by combining the measured lower heating value of the fuel;
cal reserves for high-end nuclear power components" and "iterative upgrades of core wind power processes" have synergized
emission factors for purchased electricity are based on the annual average emission factor of the Zhejiang power grid during the accounting period;
with new production tools such as "intelligent casting production lines" and "green manufacturing technologies". This synergy and emission factors for process emissions are adopted from the national industry guideline recommendations.
Note 5: The Global Warming Potential (GWP) values are based on the 100-year time horizon speci?ed in the IPCC Sixth Assessment Report, which is
has become a key driver for cultivating new quality productive forces. In the wind power ?eld, leveraging the key component
used to convert various GHGs into carbon dioxide equivalents.
technologies accumulated through national-level technical platforms, the Company promotes digital upgrades and process opti-
mization in production. This enhances product quality, achieves continuous energy e?ciency improvements, drives collaborative
Biodiversity Conservation
upgrades across the industrial chain, and fosters the development of regional industries towards higher e?ciency and lower
carbon emissions. In the nuclear power ?eld, the Company is accelerating the industrialization of core components, facilitating
the practical application of key manufacturing technology achievements. This enhances the level of self-reliance in high-end
equipment, reduces operation and maintenance costs, and helps ?ll industrial gaps in related sectors.
Indicators and Targets The Company fully recognizes the signi?cance of ecosystem conservation to sustainable development. It strictly
abides by laws and regulations including the Environmental Protection Law of the People's Republic of China, the
The Company continues to strive toward the "Dual Carbon" goals and contribute to climate change mitigation. Its GHG emissions Wildlife Protection Law of the People's Republic of China, the Forest Law of the People's Republic of China, the
in 2025 are as follows: Wetland Protection Law of the People's Republic of China, and the Biosecurity Law of the People's Republic of
China. In addition, it implements policy requirements such as the Measures on Further Strengthening Biodiversity
Indicator Unit 2025 Conservation and the China Biodiversity Conservation Strategy and Action Plan (2023-2030), and actively ful?lls
Total GHG Emissions tCO2e 607,648.58 relevant obligations under international conventions including the UN Convention on Biological Diversity and the
Convention on Wetlands of International Importance Especially as Waterfowl Habitat.
Scope 1 Emissions tCO2e 85,138.82 In project construction and operation, the Company strictly implements the environmental impact assessment
system and ful?lls management requirements of ecological protection redlines, so as to avoid disturbances to key
Scope 2 Emissions tCO2e 522,509.76 ecological areas such as nature reserves, wetlands and forests. By establishing an environmental factor identi?ca-
tion and risk assessment mechanism, the Company systematically identi?es potential impacts of production and
Note 1: The accounting scope covers all entities under the Company's operational control, including wholly-owned subsidiaries, branches, and operation activities on ecosystems and species diversity, and develops targeted mitigation and compensation
independent production bases. measures. At the same time, the Company is committed to raising employees' awareness of ecological protection,
Note 2: The emission factor method is adopted uniformly for accounting. The core calculation formula is: GHG Emissions (CO 2 Equivalent) = Activity
Data × Emission Factor × Corresponding Global Warming Potential (GWP). promoting green operations and ecological restoration, and facilitating the harmonious coexistence between
Note 3: Activity data (including fossil fuel consumption, purchased electricity/heat consumption, and raw/auxiliary material usage) is sourced from humans and nature with concrete actions.
the Company's production statistical records, energy settlement documents, and ?nancial procurement vouchers, ensuring the data is authentic
and traceable.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Craftsmanship as the Soul,
Forging Outstanding Quality
The Company values employee development and is commit-
ted to building an equal, inclusive and supportive workplace
environment. Driven by innovation, it continuously breaks
through technical barriers to forge core competitiveness. It
upholds its original commitment to quality and constantly
upgrades its products and services. It joins hands with
upstream and downstream supply chain partners to build a
resilient and green industrial ecosystem, and actively gives
back to the community, translating development achieve-
ments into a positive force for social harmony.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Gathering Talent Strength
The Company actively expands its talent pool and continuously optimizes its talent structure through three channels: campus
recruitment, social recruitment and internal recruitment.
Stable long-term cooperative relationships have been estab-
Campus lished with numerous colleges and universities, and diverse
Recruitment
The Company upholds the core principle of "people-oriented, common development", regarding employees as its campus events are held to attract outstanding graduates.
most valuable strategic resources and business partners. It is committed to establishing a sustainable development
mechanism for mutual growth and shared bene?ts between the enterprise and its employees, so that the Compa- A wide range of talented people are recruited through vari-
ny's development truly bene?ts every hardworking member. While requiring employees to deliver outstanding Social ous means, such as online platforms, job fairs, and coopera-
Recruitment
performance for the organization, the Company ?rmly safeguards employees' legitimate rights and dignity, achiev- tion with headhunting companies. Campus Recruitment Presentations
ing the integration of organizational goals and personal values.
The Company has improved its internal recruitment mechanism. Employees may independently view inter-
Internal nal job openings on the internal recruitment platform and apply for positions of interest. The recruitment
Employee Recruitment Recruitment
team of the Human Resources Center conducts initial communication and arranges follow-up interviews.
Obtain Recruitment Requirements
The Company complies with the Labor Law of the People's
Republic of China, the Labor Contract Law of the People's Job Research
Republic of China and other relevant laws and regulations,
and has formulated the Recruitment Management System Total Number
Determine Recruitment Method
that clearly de?nes recruitment procedures and standards to of Employees Persons
ensure fairness and transparency. It adheres to the employ-
ment principle of "emphasizing both integrity and compe-
tence, ensuring job-employee suitability, dynamic optimiza- External Recruitment Internal Competition
By gender
Platform
tion, and sustainable development", and implements an
Male Employees Persons 3,993
open, transparent and competitive recruitment mechanism. Internal Determine Recruitment Release Announcements
The ?nal employment decision is made through comprehen- Referral
Female Employees Persons 1,011
sive evaluation of applicants' skills, experience and potential. Headhunting Post Job Openings Collect Resumes
By age
Resume Sourcing Candidate Interview
Talent Interview
Interview Above 50 Persons 568
The Company attaches importance to the identi?cation of human resource management risks, systematically and comprehen-
sively monitors talent turnover, and strengthens targeted supervision over entities with high turnover rates. Based on the analysis
Salary Approval Transfer Approval of resignation reasons, it adopts measures such as expanding career development paths, implementing targeted incentives, and
optimizing the working environment. The Company has formed a closed-loop risk management system of "identi?cation ?
O?er Transfer Notice assessment ? response ? monitoring ? improvement". Through institutionalized, data-driven and dynamic management, it con-
The Company's Recruitment Management System explicitly stipulates that all discrimi- tinuously reduces employee-related risks to support organizational stability and strategic development. In the future, it will
natory clauses shall be avoided. Recruitment advertisements are released through further leverage digital tools to enhance risk early warning capabilities and build a more resilient human resource management
Background
channels such as the labor market, and e?ective measures must be taken to verify system.
Check
identity cards and authenticate employees' actual age, so as to prevent the accidental
For labor disputes, the Company standardizes its management procedures and handling measures in accordance with the Labor
hiring of child laborers due to falsi?ed age documents. In recruitment, no discrimina- Pre-Onboarding
Follow-Up Dispute Mediation and Arbitration Law of the People's Republic of China and internal rules and regulations. Based on the princi-
tion shall be practiced on the grounds of race, social class, nationality, religion, disabil-
ple of prioritizing employees' interests and handling matters fairly, impartially and in accordance with the law, the Company
ity, gender, sexual identity, membership in trade unions or political a?liation. Any form
Onboarding Job Transfer properly resolves labor disputes.
of discrimination against female workers is prohibited.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Employees' Rights and Interests Riyue First Session of Sta? Representative Congress in 2025 Case
Compensation and Bene?ts
The Company has formulated the Remuneration Management System and established a comprehensive compensation system
In April 2025, the Company held the ?rst session of Sta? Represen-
based on positions, graded by competence, leveraged by performance, and referenced against the market, so as to ensure the
tative Congress of 2025, which focused on the review of various
compliance, fairness and rationality of the distribution mechanism. Employee compensation consists of three parts: ?xed salary,
corporate management systems, injecting new vitality and
monthly performance salary and annual performance salary. Di?erentiated pay is implemented based on market levels, profes-
momentum into corporate development.
sional competence, job requirements and other factors. For key talent in short supply in the market, as well as senior personnel
the Company prioritizes attracting and retaining, a contractual compensation structure set above market rates is implemented.
The Company pays social insurance, provident funds and enterprise annuity for employees in accordance with the law, establish-
ing a relatively complete welfare and security system. It provides employees with meal allowances, accommodation subsidies,
holiday bene?ts, birthday bene?ts, summer allowances, communication and fuel cards, free shuttle buses for commuting and Employee Satisfaction
other bene?ts, e?ectively enhancing employees' sense of gain. Employees are entitled to various statutory paid leave in accor-
The Company places high importance on employee experience and management improvement, regularly conducting employee
dance with the law, including statutory holidays, marriage leave, family visit leave, bereavement leave, maternity leave, sick leave,
satisfaction surveys to gain in-depth understanding of employees' genuine perceptions of the organizational atmosphere. In
work-related injury leave and others. In addition to statutory annual leave and regular personal and sick leave, the Company also
tional development, and labor protection supplies. A total of 847 questionnaires were collected, with an employee participa-
provides parental leave, family visit leave and other additional leave entitlements.
tion rate of 16.9%. The overall satisfaction score was 90 points.
Democratic Management
The Company fully respects and protects employees' democratic rights in accordance with the law, including the right to informa- Employee Development
tion, participation, expression, supervision and freedom of association, and actively establishes an open, transparent and demo-
Promotion and Development
cratic communication mechanism to support employees in participating in corporate management.
To establish a comprehensive and uniformly regulated job rank management system, clarify career development paths for
employees, and provide a solid foundation for human resource allocation, talent pipeline development, and process optimiza-
tion, the Company has formulated and implemented systems including the Job Grade and Rank Management System, the Cadre
System Development Management System, and the Individual Performance Management System.
Guided by the Detailed Rules for the Work of the Sta? Representative Congresss, the Company standardizes and regularly Based on factors such as business needs, job responsibilities, and employee capabilities/experience, the Company has estab-
implements the Sta? Representative Congress system, giving full play to the role of employee representatives in democratic lished dual career progression paths: "Management" and "Professional". These paths are aligned with the job rank system, de?n-
management and democratic supervision. ing di?erentiated scopes of responsibility, competency standards, and compensation levels. They are supported by personalized
career path planning that clearly outlines the skills required at each development stage, ensuring smooth transitions and e?ec-
tive operation between the di?erent paths.
Diversi?ed Communication In terms of dynamic management and incentive mechanisms，the Company strictly adheres to the principle of "compensation
based on labor contribution, e?ciency as the priority, while considering fairness", and has established a dual-drive mechanism
The Company fully guarantees employees' right to equally join the trade union and encourages employees to actively put
combining job grade/rank management and performance management. The Company regularly conducts rational adjustments
forward proposals and conduct full interaction through channels such as trade union liaison and event participation.
to employees' job grades, positions, and compensation based on their performance, capability growth, and market salary levels,
ensuring that remuneration closely corresponds to individual contribution. Furthermore, to fully stimulate employee initiative
and creativity, the Company has implemented diverse incentive measures such as the President's Special Contribution Award,
Project Awards, and Annual Excellence Awards. Through unimpeded promotion mechanisms and ?exible job adjustment oppor-
tunities, the Company not only helps employees achieve leaps in personal value but also continuously optimizes the talent struc-
ture, enhances overall organizational performance, and realizes a win-win situation for both employee growth and corporate
Sta?
Representative Total Trade union development.
Person-
Congress sessions participation times activities times
The Company regularly conducts individual performance management for employees through an online system. This pro-
cess is goal-oriented, combining self-assessment and supervisor evaluation to determine the ?nal performance result. Additional-
the Company held a total of three workers' congresses, with 72 employee representatives at all levels participating in total; four
trade union activities were carried out, ly, the Company provides standardized channels for performance feedback and appeals, allowing employees to raise objections
with the relevant personnel.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Employee Training
Employee Care
The Company emphasizes employee growth, ensuring all sta? have access to diverse career development platforms to continu-
The Company always prioritizes its employees, consciously fostering a warm, harmonious, sound, and positive workplace atmo-
ously explore their potential. The Company has established the Training Management System and the Internal Trainer Manage-
sphere. It actively organizes various cultural and sports activities, striving to enhance employees' sense of belonging and well-be-
ment System, forming a training framework and mentorship program. Through job rotation and temporary assignments, it broad-
ing, thereby further strengthening corporate cohesion.
ens employees' perspectives and experience, enhancing their overall competence and adaptability.
New Employee Training
Pre-job training for various positions.
On-the-job skills training and relevant safety training.
Job Skill Training: Employees learn work instructions, the performance and operating proce-
dures of equipment used, environmental protection knowledge, safety precautions, and emer-
gency response measures. Depending on the situation, written and practical assessments are
conducted before employees are authorized to work independently.
Lantern Festival Event Spring Festival Condolence Activity International Women's Day Celebrations
Training for Specialized Roles: Personnel in specialized roles must undergo training at quali-
?ed institutions and obtain a "Work Permit" before working independently.
Internal Auditor Training: Training for internal auditors related to management systems such
as quality, health, environment, occupational health and safety, intellectual property, energy
management, and the integration of informatization and industrialization is conducted by
authorized institutions.
Each department may arrange and register for job-related training based on its actual needs
and ?le a report for the record.
Birthday Bene?t Distribution New Employee Symposium Management Team Building Activity
Indicator Unit 2025
Employee Training Coverage % 99.9 Employee Health and Safety
Governance
Number of Employee Training Sessions Time 1,716
The Company places high importance on employee health and safety, having established a series of occupational health and
Annual Training Expenditure RMB 10,000 61.91 safety management systems. These include the Full Sta? Production Safety Responsibility System, the Production Safety Depart-
ment Management Manual, the System for Identi?cation and Control of Safety Hazards, the Management Procedure for Hazard
Total Annual Employee Training Hours Hour 19,117.89 Identi?cation and Assessment, the Regulations on the Control of Work-Related Injury Accidents, the Emergency Preparedness
and Response Management Procedure, and the Manual for Quality, Environment, Occupational Health and Safety Management
Systems. These systems clearly de?ne the responsibilities of top management and various functional departments, providing a
solid guarantee for employee health and safety.
The Company’s Internal Trainer Program Case
The Company continuously improves its safety pro-
duction management system. It has established a
In April 2025, the Company launched its Internal Trainer Program, dedicated safety team comprising one Department
aiming to transform individual expertise into organizational assets Manager and three dedicated safety management
and build a replicable and transferable knowledge base. A total of personnel, including one EHS Engineer. This team
in the program. ny systems, daily safety supervision, education and
training, accident investigation, and occupational
health management.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Safety Accident and Work-Related Injury Response
As of the end of 2025, the Company has obtained National Grade I Safety Enterprise Certi?cation.
Adhering to the "Four No-Spare" (i.e., no case shall be closed until the cause is identi?ed, responsible personnel are dealt with, relevant
Furthermore, the Company and three of its subsidiaries have been certi?ed by the Occupational personnel are educated, and corrective measures are implemented) principle, the Company has implemented a quantitative assessment
Health and Safety Management System (OHSMS). mechanism to strengthen the supervision duties and evaluation rigor of safety management personnel. The Company has developed
emergency response plans and specialized contingency plans, including the Guidelines for Emergency Handling of Safety Incidents, the
Comprehensive Emergency Plan, and the On-Site Disposal Plan. These documents clearly de?ne the procedures for responding to
work-related injuries and the responsibilities of various departments, ensuring orderly rescue operations, incident investigation, analysis,
and liability determination. The Company also covers work-related injury insurance premiums for its employees.
Occupational Health Management
The Company attaches great importance to the health and safety of its employees, maintains employee health records, and develops
full-cycle risk prevention and control measures covering the entire employment process from onboarding to separation, thereby e?ective-
ly safeguarding employees' rights and interests in occupational health. In addition, the Company regularly entrusts quali?ed institutions to
conduct testing and assessment of occupational disease hazards in the workplace, and publicizes the results on bulletin boards in work-
shops.
Riyue Riyue Heavy Industry (Gansu) Co., Ltd. Ningbo Mingling Technology Co., Ltd. Ningbo Rixing Casting Co., Ltd.
Occupational Health and Safety Occupational Health and Safety Occupational Health and Safety Occupational Health and Safety
Management SystemCerti?cation Management System Certi?cation Management System Certi?cation Management System Certi?cation
Provide employees with personal protective gears such as impact-resistant safety shoes, safety
Onboarding helmets, and work uniforms.
Strategy Arrange uni?ed physical examinations for employees.
The Company adheres to the production safety policy of "Safety First, Prevention Foremost, and Comprehensive Management".
In accordance with established systems, it carries out tasks such as identi?cation of potential safety hazards and prevention of Conduct annual occupational health examinations for on-the-job employees, including frontline
occupational diseases. It is committed to establishing a long-term mechanism for standardized production safety, based on a workers and high-risk positions once a year (covering outsourced employees as well).
During
Employment Conduct physical examinations for back-o?ce positions once every two years.
people-oriented approach, to comprehensively enhance safety management and safeguard employee health.
Maintain employee health records and arrange re-examinations and diagnoses promptly for
Impact, Risk, and Opportunity Management employees with abnormal results.
The Company attaches great importance to production safety and occupational health management. It has built a systematic
management mechanism focusing on areas including responsibility ful?llment, risk identi?cation, hazard investigation, emergen- Upon Separation Inform employees to undergo a mandatory exit physical examination.
cy support, and health protection.
Production Safety Management
The Company strictly implements the production safety responsibility system, requiring all employees to sign the Safety and Environmen-
tal Protection Target Commitment Agreement. Guided by the principle of "Joint Responsibility by Party and Functional Departments, Dual
Responsibilities for Each Post, Collective E?orts, and Accountability for Negligence", it reinforces responsibility ful?llment. It deeply
promotes the on-site "7S" visual management model and "Team Safety Building" initiatives. Regular safety and environmental production
meetings and team brie?ngs are held to dynamically monitor the production safety status, ensuring the principle "safety is everyone's
responsibility" is put into practice. In addition, the Company emphasizes both rewards and penalties, strengthens education for personnel
involved in "Three Types of Violations" (of safety rules), and strictly controls such behaviors to achieve all-employee participation in safety
management.
Safety Hazard Investigation
In accordance with relevant regulations, the Company conducts annual hazard identi?cation and risk assessment at workplaces, compre-
hensively inspects and recti?es potential safety hazards. It also organizes special safety inspections on special equipment, electrical facili-
ties, hazardous chemicals, and ?ammable and explosive areas. For identi?ed hazards, the Company implements hierarchical risk manage-
ment and control measures, sets deadlines for recti?cation, and tracks the implementation progress at any time. In addition, the Company
improves employees' ability to identify hazards and their awareness of self-protection, so as to eliminate potential accidents in a timely
manner.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
In terms of safety culture building, the Company has formulated the Safety Education and Training Plan, implementing a three-tier
Annual Work Plan (2026)
production safety education system at the Company, workshop, and team levels. Training records are maintained, and regular
sessions are conducted on hazard identi?cation, risk prevention and control skills, safety operating procedure (SOP) training, as Responsibility
Sign the annual Work Safety Responsibility Commitment to fully implement safety responsibilities at all levels.
Ful?llment
well as certi?cation and recerti?cation training for special operation personnel. Leveraging initiatives like the "Production Safety
Month", the Company continuously promotes safety principle education and training, enhancing employees' safety awareness Hazard Continue to carry out special recti?cation in key areas (?re safety, hazardous chemicals, special equipment), with
Recti?cation a 100% hazard investigation and recti?cation rate.
and risk prevention capabilities and integrating safety culture into all daily production and operational processes.
Specialized Conduct specialized improvements for work-at-height and hoisting operations to provide safer working condi-
"Production Safety Month" Campaign case Improvement tions for employees.
Occupational Complete on-the-job occupational health examinations. Achieve 100% coverage of hazard factor monitoring
Health Monitoring points in workplaces, with a compliance rate of no less than 99%.
Medium-to-Long-Term Management Objectives (2026-2028)
Zero Accidents Pursue the ultimate goal of "Zero fatalities, zero serious injuries, zero occupational diseases".
Continuously deepen the operational quality of the GB/T 45001 Occupational Health and Safety Management
Safety Knowledge Competition Post Skills Competition Emergency Plan Drills Fire Drills System Deepening
System to ensure the e?ectiveness of the certi?cation.
Digital Introduce digital management tools (e.g., an intelligent safety management system) to achieve real-time moni-
Transformation toring of major hazards and critical operations.
Emergency Response Drill for Vehicle Operation Injury Accidents case
In April 2025, the Company organized an emergency response drill
for vehicle operation injury accidents to enhance employees' abil- Indicator Unit 2025
ity to handle sudden safety incidents, strengthen safety aware-
Number of Major Safety Incidents Incidents 0
ness, and consolidate a safety production defense line.
Employee Social Insurance Coverage % 100
Coverage of Occupational Injury Insurance for Employees % 100
Work Safety Liability Insurance Coverage % 100
Total Duration of Safety Training Hour 1,954.92
Special Training on Accident Hazards Coverage of Work Safety Training % 100
Indicators and Targets
In 2025, the Company actively advanced its work safety and occupational health management. Its
subsidiary, Ningbo Rixing Casting Co., Ltd., obtained the certi?cation as a Grade III Enterprise in Pro-
duction Safety Standardization (Machinery).
Throughout 2025, the Company experienced one minor work-related accident, which resulted in no
severe injuries or signi?cant losses. Following the incident, the Company immediately activated its
accident investigation and response procedures. A thorough root-cause analysis was carried out,
accountability was pursued, and targeted safety training was delivered to the personnel involved. In
addition, the Company has formulated and implemented targeted corrective and preventive mea-
Grade III Enterprise in
sures addressing weaknesses in operational procedures. All relevant corrective actions have been Production Safety
fully completed, further elevating the Company's safety management capabilities. Standardization (Machinery)
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Driving Development Through Innovation Collaborative Innovation Structure
Centered on national postdoctoral programmes, National Enterprise Technology Centers,
Tier-1 R&D Open Innovation provincial-level high-tech enterprise R&D centers and other key institutions, it continuously
Platform Platform integrates global resources, collaborates with top universities and research institutes, and
promotes product innovation and the international development strategy.
The Company takes scienti?c and technological innovation as its driving force, tackles cutting-edge technical Supported by Zhejiang Provincial Enterprise Technology Center, provincial-level engineering
University-Enterprise
challenges, builds an intellectual property protection system, fully safeguards innovative achievements, advances Tier-2 R&D technology centers and other platforms, it builds a domestically leading R&D platform integrat-
Joint Innovation
digital transformation, restructures operational processes, and improves e?ciency and decision-making capabili- Platform ing "basic R&D platform, application development platform and R&D support platform", focus-
Platform
ing on core technological breakthroughs and industrial transformation.
ties, embarking on a new journey of high-quality development.
Supported by municipal-level engineering technology centers, corporate research institutes,
Tier-3 R&D Business Unit testing centers and other carriers, it undertakes R&D tasks within the scope of business unit
Applied Innovation
Platform operations, provides technical support for product development and maintenance, and
Platform
conducts in-depth technical research in various business ?elds.
R&D and Innovation Management
Governance
The Company has continuously optimized its innovation management mechanism and formulated a series of systems, including
By the end of 2025, the Company and four of its subsidiaries have been recognized as
the Whole-Process Project Management System, the Resource and Fund Management System, the Innovation Incentive Mecha-
nism, the 1+4 New Product Development Management System, the Project Approval and Incentive System, the Single Reward
high-tech enterprises.
Management System for Innovation Projects, the 1+3+10 New Product Development Management System, the Whole-Process
Management System for High-Tech Enterprise R&D Projects, and the Management Measures for Major Projects. These systems
clarify the management structure and responsibilities, improve the innovation management and incentive mechanisms, and
steadily advance the Company's R&D and innovation initiatives.
Leveraging its abundant existing R&D platform resources, the Company has established a lean R&D system of "production, mar-
keting, R&D, application + services" and built a three-level R&D management system consisting of the "Technology Research Insti-
tute, Process Research Institute, and Production Factory". It has also formed a collaborative innovation framework covering
"Tier-1, Tier-2, and Tier-3 R&D platforms".
Riyue Ningbo Rixing Casting Co., Ltd. Ningbo Mingling Technology Co., Ltd.
R&D Management System
High-Tech Enterprise Certi?cate High-Tech Enterprise Certi?cate High-Tech Enterprise Certi?cate
Technology Oversee the development trend of industry technologies and formulate the Com-
Research Institute pany's long-term R&D strategy and key projects.
Process Lead the design and development of new products and the upgrading and itera-
R&D Center Research Institute tion of existing products based on market demand and customer feedback.
Focus on actual production conditions to continuously improve frontline opera-
Production Factory
tional skills and process optimization capabilities.
Innovation Formulate the Company's innovation strategies and policies, approve the initiation and budgets of major innova- Ningbo Riyue Jinghua Precision Manufacturing Co., Ltd. Riyue Heavy Industry (Gansu) Co., Ltd.
Management tion projects. Supervise the implementation progress and achievement transformation of innovation projects, High-Tech Enterprise Certi?cate High-Tech Enterprise Certi?cate
Committee and coordinate the cross-departmental allocation of innovation resources.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Strategy
The Company adheres to its mission of "serving as a pioneer in promoting the widespread use of clean and renewable energy to
make critical contributions to the green and sustainable development of humanity". With large-scale ductile iron wind power
castings as its primary focus, the Company leverages its nuclear storage container technology to conduct in-depth research on
the properties of low-temperature ductile iron. It continues to advance reforms in the scienti?c and technological system,
increase investments in technology, and stimulate innovation vitality, thereby contributing to the modernization, digitalization,
and intelligent development of the industry. In 2025, in accordance with its medium and long-term strategic plan, the Company
actively carried out the formulation of the 2026 R&D Projects and Patent Application Plan List.
Impact, Risk, and Opportunity Management
The Company standardizes R&D practices throughout the entire process, including R&D project approval, process control, project Riyue Heavy Industry Co., Ltd. Testing Center Rixing Casting Co., Ltd. Inspection Center Riyue Heavy Industry Co., Ltd.
CNAS Laboratory Accreditation Certi?cate CNAS Laboratory Accreditation Certi?cate Postdoctoral Programme
acceptance and post-project evaluation, laying a solid foundation for R&D and innovation.
The Company strictly implements process control and evaluation, strengthens the tracking and promotion mechanism for new
materials, new products and other projects on a monthly basis, and conducts dynamic tracking and reporting on key R&D proj-
ects. In addition, it carries out research and analysis on various R&D businesses, de?nes the relevant dimensions and principles of The Company cultivates and attracts high-level tech-
the R&D organization evaluation mechanism, and submits Project Review Conclusion Forms for submission to the Company. nical and skilled talent through multiple channels,
The Company has consolidated its equipment foundation to provide sound hardware conditions for innovation and R&D. It is employing strategies such as "bringing in experts and
equipped with more than 140 sets of large and medium-sized production facilities, including advanced resin sand casting pro- sending sta? out", to build an e?cient R&D team and
duction lines, cupolas, induction furnace melting equipment, as well as large shot blasting machines, heat treatment furnaces enhance overall technological innovation capability.
and other casting post-processing equipment. In addition, the Company possesses over 70 sets of advanced testing instruments Simultaneously, the Company continuously elevates
and equipment, such as imported German direct-reading spectrometers, infrared carbon-sulfur analyzers, mechanical property the overall standard of its research projects, strength-
testing machines, large horizontal microscopes, and ultrasonic ?aw detectors, laying a solid equipment foundation for scienti?c ens the innovation awareness of its technical and
research and production. skilled personnel, and fosters a positive research
atmosphere.
Throughout the R&D and innovation process, the
Company strictly adheres to technical ethics stan-
dards and actively ful?lls its commitment to responsi-
Large and medium-sized Advanced testing instruments ble innovation. It integrates technical ethics require-
production facilities over sets and equipment over sets
ments throughout the entire lifecycle of R&D proj-
ects—from initiation and process control to the appli-
cation of results—ensuring that technological innova-
The Company has continuously improved its innovation mechanism, clari?ed the review procedures for innovation projects and tion activities respect human rights, promote fairness,
the innovation incentive mechanism, and standardized the whole process of R&D and innovation activities, thus stimulating protect the environment, and achieve a harmonious
innovation vitality. Incentives for innovation projects are divided into team incentives and individual incentives, and the incentive unity of technological progress and social value.
bonus distribution plan is implemented upon approval.
The Company has deepened industry-university-research cooperation and exchanges, and jointly established the R&D Center for Indicators and Targets
High-Strength Corrosion-Resistant Special Alloy Precision Castings with the Ningbo Institute of Materials Technology & Engineer-
In 2025, the Company continued to advance its R&D and innovation initiatives, successfully achieving its annual objectives.
ing, the Chinese Academy of Sciences. It has expanded its R&D team and continuously transformed innovative achievements into
social and economic bene?ts. As of the end of 2025, the Company has established three national-level R&D platforms: the Nation-
al Enterprise Technology Center, the National Intelligent Casting Industry Innovation Center, and the National Postdoctoral Pro-
Indicator Unit 2025
gramme; two provincial-level R&D platforms: the Zhejiang Provincial Enterprise Technology Center and the Zhejiang Provincial
R&D Investment RMB 100 million 2.65
High-Tech Enterprise R&D Center; and two municipal-level R&D platforms: the Ningbo Riyue Heavy Industry Casting Engineering
Technology Center and the Riyue Heavy Industry Casting Research Institute. The testing center of Riyue Heavy Industry Co., Ltd. R&D Investment as a Percentage of Revenue % 4.24
and the inspection center of Ningbo Rixing Casting Co., Ltd., both a?liated with the Company, are laboratories and inspection
Proportion of R&D Personnel % 6.61
institutions accredited by national/international organizations.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Targets Progress Intellectual Property Management Structure
·Participate in two provincial/municipal-level key R&D programs.
·Secure high-tech enterprise certi?cations for two additional Subsidiaries Responsible for organizing and guiding the operation of the intellectual property management
subsidiaries. and Branches system within their respective entities.
· Complete patent applications for two core technologies.
· Technological Breakthroughs: Establish a R&D center for Technology Responsible for the daily administration of intellectual property, as well as the formulation and
high-strength corrosion-resistant special alloy precision castings Research Institute management of intellectual property incentive policies.
·In 2025, two projects under the "Yongji-
within three years, participate in the formulation of three national
standards, and maintain the quali?cation of ?ve high-tech enter-
ang Science and Innovation 2035" initia-
prise entities on an ongoing basis. As the designated management department, it is responsible for re?ning intellectual property pro-
·
tive were completed, namely "R&D and O?ce System
New Product Launch: Successfully develop and launch 2-3 new tection systems and management frameworks, document archiving, and reporting of infringement
Application Demonstration of Core Department
products targeting emerging markets or high-end application risk incidents.
Hot-End Precision Castings for Aero-En-
scenarios, with new product sales accounting for 10%-15% of total
gines" and "Research on Erosion-Resis-
Phased Goals sales.
·
tant Strengthening Technologies and
(3-5 years) Patent Growth: Apply for no less than 150 patents within ?ve
Equipment for Transmission Systems of Responsible for organizing and guiding the Company's response to intellectual property infringe-
years, with the number of invention patent applications increasing Legal Department
annually and accounting for over 20% of the total. Strengthen the
High-Power O?shore Wind Turbines", with ment risks and litigation.
core technical parameters reaching
transformation and application of patents, achieving a patent
advanced industry levels.
·
implementation rate of over 60%. Maintain R&D investment at
The certi?cation of high-tech enterpris-
approximately 4% of revenue.
·
es for Riyue and Ningbo Mingling Technol-
R&D Team Building: Expand the R&D team to over 100 person-
ogy Co., Ltd. has been completed, bring-
nel, with senior technical talent accounting for 15%. Cultivate and
ing the total number of entities quali?ed
introduce no less than three industry-leading professionals.
as high-tech enterprises to ?ve.
·Technology Leadership: Become a global technology leader in · In 2025, the Company led or participat-
ed in the formulation of two national
the ?eld of wind power equipment and other high-end equip-
standards and three industry standards.
·
ment manufacturing, mastering cutting-edge core technologies
One patent application for core tech-
in the industry.
·
nology has been submitted.
·
Product Diversi?cation: Develop at least ?ve new product
The Company continues to advance the
series with independent intellectual property rights and global
Long-term Goals achievement of phased and long-term
competitiveness.
(5-10 years)
·
goals.
Patent Portfolio: Accumulate more than 350 patent applica-
tions in total, with invention patents accounting for no less than
· R&D Investment and Cooperation: Maintain R&D investment at
Ningbo Rixing Casting Co., Ltd.
partnerships with at least 10 world-class research institutions and Intellectual Property Management Intellectual Property Compliance Management
universities. System Certi?cate System Certi?cate
Intellectual Property Protection
The Company adheres to the principle of "Patents stem from projects, and patents are born in practice", and has formulated a
Management and Maintenance: Establish an intellectual property ledger to uniformly manage
series of systems, including the Intellectual Property Incentive Measures, the Trade Secret Protection System, the Patent Manage-
Intellectual patents, trademarks, copyrights, and other intellectual property rights owned by the Company.
ment System, the Copyright Management System, the Intellectual Property Management Measures, the Intellectual Property Risk
Property Pay relevant fees on a regular basis to maintain the validity of intellectual property rights.
Reserve Fund Management System, the Intellectual Property Special Fund Management System, the Procedures for the Imple-
Protection Protection and Application: Strengthen intellectual property protection, monitor market
mentation, Licensing and Transfer of Intellectual Property Rights, the Intellectual Property Risk Management Procedures, the
infringements, and take timely legal measures to safeguard the Company's rights and interests.
Contract Management Procedures, and the Sales and After-Sales Management Procedures for Intellectual Properties, while con-
Promote the transformation and application of intellectual property to maximize its value.
tinuously improving its management structure. By the end of 2025, the Company and one of its subsidiaries had obtained the
Intellectual Property Management System Certi?cation.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Light-asset MES Project Construction
To motivate employees and e?ectively protect intellectual property and
technical secrets, the Company has formulated the Intellectual Property By the end of
Reward Measures, specifying the scope, standards and application proce- valid
held a total of patents focuses on realizing real-time collection of production data, full-chain quality traceability, and automatic integration of business
dures of intellectual property rewards.
and ?nancial data, laying a solid foundation for unit cost accounting and production capacity optimization.
the Company
completed
applications patents
invention
patents
utility model
patents utility model
patents granted
Training on Novelty Retrieval of Scienti?c and Technical Literature Data Case
In October 2025, Riyue organized training focusing on
literature and patent retrieval, covering relevant de?-
nitions, functions, approaches, standards and meth-
ods, as well as the operation of the Ningbo Scienti?c
and Technical Literature Sharing Service Platform and
patent databases.
MES Project Launch Meeting
Data Governance System Construction
Digital Transformation A master data management blueprint based on the "two systems, one platform" framework has been developed, establishing
management policies, detailed rules, clear role responsibilities, and organizational support. In 2025, the Company released the
In accordance with its development strategy and
Administrative Measures for the Standardized Operation of Digital Application Systems, implementing a regular supervision
business needs, driven by technological innovation
mechanism with "weekly inspections and monthly submissions" and a performance evaluation mechanism for responsible
and centered on business process optimization, the
departments. This has e?ectively enhanced data accuracy and the timeliness of documentation.
Company has formulated the Administrative Mea-
sures for the Standardized Operation of Digital
Application Systems. The Digital Center oversees Two-Way Improvement of Business and Finance Systems
digital initiatives across all business functions,
enabling an e?cient management system and driv- The Company has continuously promoted the integration of operational and ?nancial systems, achieving signi?cant results in
ing high-quality development. By the end of 2025, optimizing SAP month-end closing e?ciency, managing single-piece ?ow planning, analyzing BOM cost variances, and improving
Riyue obtained the Information Security Manage- VAT invoicing e?ciency.
ment System Certi?cation; Rixing Casting Co., Ltd.
Ningbo Rixing Casting Co., Ltd. Riyue
holds a valid Integration of Informatization and China Classi?cation Society Integration of Information Security
Industrialization Management System Certi?cate Informatization and Industrialization Management System Certi?cation Deepening of Supply Chain Management
Management System Certi?cate
issued by China Classi?cation Society (CCS).
Focusing on ?ve aspects, i.e., "strengthening training, standardizing management, clearing historical issues, implementing
The Company consistently adheres to the digital transformation path of "Planning First, Management Transformation, Platform as closed-loop supervision, and continuously optimizing", the Company furthered the application of the SRM system. It has re?ned
Foundation, Empowerment and E?ciency Enhancement". It drives the optimization of the business management system and the the standardized operating procedures, addressed historical abnormal data, established a system operation monitoring and
construction of information systems through a "dual-driver approach", using digital transformation to comprehensively promote reporting mechanism, and initiated the construction of a data cloud warehouse. This e?ort aims to build an analytical reporting
the achievement of the Company's strategic objectives. In 2025, the Company steadily advanced digital transformation in manage- system covering the entire procurement process, strengthening data support for procurement decision-making, and continuous-
ment and production, achieving remarkable results. ly enhancing the standardization, digitalization, and re?nement of supply chain management.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Electronic Archives Management System Development
Strengthening Product Quality
The Company is advancing the construction of an Electronic Archives Management
System, establishing a closed-loop management system covering the entire process of
data collection, matching, and utilization. By integrating interfaces with systems such as The Company regards product quality and customer service as core drivers of corporate development. It has
SAP, SRM, OA, VAT, and CBS, it has shifted archive data collection from manual to auto- established a sound quality management system and a re?ned customer feedback mechanism, continuously
mated acquisition. Leveraging intelligent matching rules, the system automatically sorts enhancing customer satisfaction and loyalty while consolidating its leading position in the industry.
and archives documents, achieving over 90% automation without manual intervention.
The system supports online search and borrowing, enhancing archive management
e?ciency and freeing up human resources. Simultaneously, it empowers front-end busi-
Quality Management
ness operations by assisting with accounts payable invoice veri?cation and compliance
management, e?ectively supporting both internal and external audit requirements. Governance
The Company strictly abides by quality-related regulations such as the Product Quality Law of the People's Republic of China. It
Successful Launch of Riyue MDM Project has formulated and rigorously implemented a series of management systems, including the Manual for Quality, Environment,
Case
Occupational Health and Safety Management Systems, the Control Procedures for Production and Service Provision Processes,
In June 2025, the Company's Master Data Management the Procurement Control Procedures, the Control Procedures for Nonconformity, Corrective and Preventive Actions, and the Con-
(MDM) Platform was o?cially fully launched. Focusing on tinuous Improvement Control Procedures. By clarifying the quality management structure and responsibilities, the Company has
?ve core master data areas—materials, human resources, achieved improvements in quality across processes, physical products, and management practices.
customers, suppliers, and ?nance—the platform enhances The Company has established the Headquarters Quality and Safety Center as the designated management department for quality
operational e?ciency and enables precise decision-making. and EHS (Environment, Health, and Safety). It consists of the Quality & EHS Management Section and the Product Assurance Sec-
tion, which are responsible for coordinating the development of the internal quality and EHS systems, monitoring their operation,
formulating product inspection standards, and implementing quality inspection, management, control, and improvement activi-
ties. This ensures that the Company's quality management system complies with the ISO 9001, ISO 14001, and ISO 45001 stan-
dards, guarantees that products meet customer requirements at every stage from incoming materials, in-process control, ship-
ment, to after-sales service, and ensures that the production environment meets stakeholder standards.
Quality and Safety Responsibility System
Riyue AD Domain Controller Project Case
Top Management Establish the Company's quality strategy and direction.
This project has established a uni?ed management and control platform based on Microsoft Active Directory technology.
Director of the Quality
It has achieved three core breakthroughs: visualized full-lifecycle management of IT assets, remote intelligent operation and Safety Center
Develop quality policies and quality objectives.
and maintenance of cross-regional equipment, and a dynamic protection system for security policies. At present, the
Quality Management Strengthen process quality system and quality process control; organize quality analysis, correction and improve-
system covers all enterprise terminal devices. The Company will focus on optimizing automatic inspection and intelli- ment; and implement the quality and safety responsibility system.
Personnel
gent alarm functions to improve operation and maintenance e?ciency, reduce terminal equipment failure rates, and
Quality and EHS Take the lead in formulating quality and EHS management system documents, product quality inspection
build a secure and stable foundation for the enterprise's digital upgrading. System Personnel systems and quality inspection standards; conduct regular system promotion and implementation.
Product Inspection
Operate in accordance with quality inspection standards and ful?ll the quality and safety responsibility system.
Personnel
Production Personnel Operate in accordance with work instructions and ful?ll the production safety responsibility system.
By the end of 2025, the Company and its ?ve subsidiaries had obtained the ISO 9001 Quality Management System certi?ca-
tion. The Company also holds the following certi?cations: Bureau Veritas' Recognition for BV Mode II Scheme, DNV Approval
of Manufacturer Certi?cate, China Classi?cation Society's Works Approval Certi?cate, American Bureau of Shipping (ABS)'s
Certi?cate of Foundry Facility and Process Approval, and GJB 9001C-2017 Certi?cation.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Impact, Risk, and Opportunity Management
The Company has established the Risk and Opportunity Control Procedure and updates the Risk and Opportunity Identi?cation
and Evaluation and the List of Major or Unacceptable Risks on an annual basis, forming a sound quality risk management system.
This system is used to assess, communicate, control and review product quality and safety risks, so as to ensure the quality of
products and services.
In terms of quality supervision and control
the Company has formulated the New Product Development Control Procedure and the Change Management Control Procedure.
Riyue Riyue Heavy Industry Ningbo Riyue Jinghua Ningbo Mingling These govern the development and design of new product casting processes, as well as redesigns of existing products (imple-
Energy Management (Gansu) Co., Ltd. Precision Manufacturing Co., Ltd. Technology Co., Ltd. menting a "1+4" development management approach), with process reviews and trial production validations conducted at each
System Certi?cate Energy Management Energy Management Energy Management
stage. Meanwhile, e?ective control is exercised over the design, development, modi?cation, and transfer processes of casting
System Certi?cate System Certi?cate System Certi?cate
techniques to continuously optimize processes, improve e?ciency, and reduce costs. The Company implements full lifecycle
inspection management for products, covering all stages from raw and auxiliary materials, semi-?nished and ?nished products,
production processes, to ?nal product shipment. Root cause analysis is performed on non-conforming products, and e?ective
corrective actions are implemented to continuously strengthen quality control. Additionally, the Company organizes monthly
quality review meetings to enhance quality oversight. It also deepens supplier quality management by conducting scheduled
audits of suppliers' quality management systems and quality process audits, along with regular performance evaluations.
In the area of quality information management
the Company has established the Quality Information Control Procedure to further enhance the management of quality-related
Ningbo Riyi Intelligent Ningbo Rixing Casting Riyue Riyue
correction and prevention, and continuous improvement activities involving the collection, transmission, and processing of inter-
Equipment Co., Ltd. Co., Ltd.Energy Management Bureau Veritas' Recognition GJB 9001C-2017
Energy Management System Certi?cate for BV Mode II Scheme nal and external quality information.
System Certi?cate
Regarding quality culture building
the Company regularly conducts monthly quality review meetings to further improve the quality management capabilities of rele-
vant managers. Daily pre-shift meetings are held to share quality information and raise quality awareness among all employees.
Quality-related information is regularly shared online to ensure the e?ective implementation of quality activities.
To address potential quality incidents, the Company has established a comprehensive product recall and disposal management
mechanism, clarifying the responsibilities and collaborative procedures of various departments to ensure that problematic prod-
ucts can be promptly identi?ed, quickly responded to, and e?ectively handled.
Riyue Riyue Riyue Riyue
DNV Approval of American Bureau of Shipping (ABS)'s Approved Manufacturer China Classi?cation Society's
Manufacturer Certi?cate After-Sales Communicate with customers and relay information to the Product Support Section.
Certi?cate of Foundry Facility and of Iron Castings by LR Certi?cate of Periodical Audit
Service Department Coordinate personnel to verify product quality conditions.
Process Approval
Upon con?rmation of returned goods, arrange logistics for the return shipment.
Strategy After product return, verify the status, product type, and quantity based on customer return
Warehouse Section
The Company has always upheld the quality policy of "Precise Management, Continuous Innovation, Commitment Ful?llment, information. Once con?rmed, move the returned items to a designated area, label them appro-
Constant Improvement, Elevating the 'Riyue' Brand, and Enhancing Customer Satisfaction". It practices the quality philosophy of priately, and place them in quarantine.
"Zero Defects in Quality, Aligning with International Standards", establishes a rigorous quality control system, addresses quality
risks scienti?cally in accordance with procedures, continuously advances quality informatization, fosters quality awareness Re-inspect and analyze issues identi?ed in returned products, document the problem details,
Product
among all employees, and builds a strong quality culture. In addition, it properly handles product issues to safeguard the Compa- Support Section organize reviews with relevant departments, and determine the appropriate disposal method.
ny's reputation and customers' rights and interests.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Indicators and Targets The Company values customer feedback and conducts regular satisfaction surveys covering six key dimensions: product quality,
delivery, cooperation, pricing, service, and customer loyalty. These surveys enable the Company to accurately identify and focus
In 2025, the Company did not experience any major safety or quality-related incidents involving products or services, and there
on customer needs and expectations.
were no product recalls due to quality issues. Its subsidiary, Rixing Casting Co., Ltd., received the Best Quality Award and was
recognized as a 5A Grade Supplier in Quality Credit Rating.
Customer Service
The Company places high importance on customer experience and has established the New Product Quotation Management Pro-
cedure, the Sales Business Management Procedure, the After-Sales Service Management Procedure, the Customer Service Man-
Customer
Resolution
Rate Client
Satisfaction Score
agement Procedure, the Non-Conforming (NC) Products Handling Control Process, the Customer Satisfaction Evaluation Proce-
Customer Information and Privacy Protection
dure, and the Customer-Related Process Control Procedure to standardize customer service content and enhance the customer
service experience. The Company places a high priority on information security and customer privacy protection.
In accordance with established systems such as the Information Security Management Policy
and the Personal Information Protection Procedure, the Company clearly de?nes responsibil-
Conduct product promotion through methods such as product advertising and in-person intro- ities at all levels and fully implements the seven basic principles: lawfulness, fairness, necessi-
ductions by sta?, presenting the Company's pro?le, product features, performance advantages, ty and good faith; purpose speci?cation and limitation; data minimization; openness and
Pre-Sales transparency; accuracy; security safeguards; and accountability. The Company has estab-
and applicable production scope.
Services
Conduct customer visits to understand their needs and provide targeted services. lished a multi-level management system composed of the Company's management, Head-
Organize mutual visits and technical or quality exchange sessions with relevant departments. quarters O?ce, Human Resources Center, Headquarters Digital Center and various business
departments, ensuring the security and controllability of information assets throughout their
Prior to contract signing, explain relevant commercial terms to customers, clarifying the rights lifecycle and e?ectively safeguarding the Company's reputation and customers' rights and Riyue
and responsibilities of both parties. interests. In 2025, the Company obtained the Information Security Management System Information Security Management
Certi?cation. System Certi?cation
Provide customers with quali?ed products, along with necessary accessories and reports, in
In-Sales
Services accordance with product customization contracts and technical agreements. To fully ensure data security and customer privacy, the Company has implemented speci?c measures covering ?ve key dimen-
If shipping arrangements are speci?ed in the contract, the sales subsidiary handles shipping and sions: policy standards, technical safeguards, emergency response, review assessment, and employee training.
delivery arrangements, ensuring packaging and transportation quality while minimizing costs for
the customer.
Information
·Information is classi?ed into four categories (A, B, C, D) based on its importance, with two corresponding con?-
dentiality levels: "Con?dential" and "Secret", so as to implement di?erentiated management and control.
Security Risk
Assessment
·Strict security assessments are conducted on suppliers entrusted with personal information processing, and
data processing agreements are signed to clarify the security responsibilities and obligations of external partners.
Conduct follow-up visits with customers to gather feedback on product quality, usage condi-
After-Sales
tions, and customer operations, enabling timely responses to issues. In case of quality problems
Services ·Strict access authority management is implemented. Access rights are reviewed every six months, and privi-
during use, sales personnel shall promptly coordinate and arrange necessary services. System Security leged user rights are reviewed every quarter.
Protection ·Speci?c security requirements are stipulated for password management, Internet usage, destruction of elec-
tronic media, and other areas.
·A standardized IT emergency response mechanism is established, covering the complete process of fault detec-
The Company has established multi-dimensional and convenient channels for customer complaints and feedback, allowing cus- tion, noti?cation, diagnosis, handling, and recording.
tomers to directly communicate with designated after-sales personnel via phone calls, emails, instant messaging, and other Emergency
·Specialized handling procedures are formulated for di?erent types of incidents, including hardware failures,
system failures, virus attacks, network issues, and operational errors.
means. Upon receiving a complaint, the relevant after-sales personnel will promptly verify its validity, document the details com- Response
·The Company de?nes the criteria for information security incidents and major information security incidents,
prehensively, and gain an in-depth understanding of the issue's context and the customer's core needs. Solutions will be dynami- covering the emergency response to the leakage of corporate con?dential, highly con?dential, and top-secret
cally adjusted based on the actual situation to ensure that reasonable customer demands are met to the greatest extent possible. information.
The Company has implemented a tiered response mechanism based on the urgency and impact scope of complaints, ensuring ·Regular assessments of backup systems, sampling tests on the readability of data backup media, and recover-
that each case is allocated appropriate resources for timely, precise, and e?ective resolution. After a complaint is resolved, ability tests on critical data backup media are conducted on a regular basis.
Data Backup
after-sales personnel proactively conduct satisfaction follow-ups to gauge customer acceptance of the solution and collect sug-
·Dual backup (local and o?-site), routine backupand backup during speci?c periods are adopted as backup strat-
egies.
gestions for improvement, thereby providing a basis for continuous service enhancement.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Regular Review
·A systematic review mechanism is established to carry out routine inspections, regular technical assessments,
and backup system evaluations. Deepening Supply Chain Management
and Assessment ·Eighteen information security areas, including access control, physical security, and operational security, are
reviewed.
Rewards and ·A rewards and penalties mechanism is established to ensure the e?ective implementation of information
Penalties Mechanism security work. The Company continuously optimizes supply chain management, deepens collaborative partnerships with suppli-
ers, strengthens risk prevention and control capabilities, and enhances overall supply chain e?ciency. It focuses
·Information security training is conducted through diverse channels such as meetings, written notices, emails, on building a stable, e?cient, and sustainable supply chain system to solidify the foundation for enterprise devel-
Information Security bulletin boards, and the Company website. Training content covers information security laws and regulations
Culture and Training on information security, threats and vulnerabilities, domestic and international management developments, opment.
and the Company's inspection results; training assessments are carried out on a timely basis.
Governance
The Company has established policies including the Supplier Management Procedure, the Code of Conduct for Supplier Social
Responsibility, the New Supplier Quali?cation Management Procedure, the Supplier Performance Management Procedure, the
Supplier Status Classi?cation Management Procedure, the Supplier Anomaly Management Speci?cation, the Quali?ed Supplier
Relationship Classi?cation Management Speci?cation, the Supplier Risk Management Speci?cation, and the Supplier CSR Man-
agement Procedure. These policies re?ne the supplier management framework, clarify management functions, achieve more
e?cient and specialized division of labor and collaboration, and ensure detailed and precise handling of all tasks.
Headquarters
Procurement Center ·It coordinates the whole lifecycle management of suppliers, and is responsible for access review, evaluation
system establishment, performance management, supplier development, and supply chain optimization.
Procurement
Sections of All Factories ·They are responsible for supplier access, performance evaluation and improvement, as well as the imple-
mentation of development plans.
Headquarters Process/
Technology Research ·They are responsible for new material testing and quality capability demonstration, and collaborate in the
Institute access process of relevant suppliers.
Headquarters Quality
·It is responsible for access and system audits, and manages testing and calibration suppliers; the Equip-
and Safety Center ment Service Workshop is responsible for quali?cation review, application veri?cation and performance
evaluation of equipment suppliers.
Strategy
The Company adheres to a closed-loop management system for suppliers, continuously optimizes the robust layout of its supply
chain, establishes and improves its institutional system and management structure, and promotes the sustainable development
of the entire supply chain. In the whole lifecycle management of suppliers, the Company focuses on strengthening dynamic
assessments of their environmental and social performance, striving to enhance supply chain resilience and capacity for sustain-
able development.
Impact, Risk, and Opportunity Management
In terms of supplier management, the Company has clearly de?ned supplier management mechanisms, actively advanced the
informatization of supplier management, facilitated the development of supplier interaction platforms, and strengthened the
e?ectiveness of supplier management.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
The Company actively promotes cooperation with suppliers and is committed to building a more resilient supply chain. As a lead-
·Establish a dual sourcing mechanism covering global and regional sources to expand green, low-carbon, and
localized supply resources. ing entity in the casting industry chain, the Company partners with domestic casting riser R&D and manufacturing enterprises to
Supplier
Sourcing ·Build a supplier information database, integrating data on quali?cation, production capacity, GHG emissions, conduct joint research and tackle key challenges related to the casting processes of critical wind power core components. This
etc., to realize digital management throughout the lifecycle. e?ort has led to breakthroughs in the localization of casting risers, which were previously partially reliant on imports, thereby
·Formulate supplier access standards, conduct quali?cation reviews and on-site assessments focusing on enhancing the core competitiveness of the industry chain and strengthening supply chain security.
Supplier quali?cation level, development capability, technical capacity, and quality management capability, with ESG
Quali?cation one-vote veto indicators included (environmental certi?cation, social responsibility, business ethics, etc.).
Indicators and Targets
·Implement cross-departmental joint access reviews to ensure compliance at the source.
The Company is committed to building a supply chain ecosystem, actively leveraging its platform advantages to encourage suppli-
Supplier
·Conduct quarterly performance evaluations covering ?ve dimensions: quality, delivery, cost, service, and
sustainable development, with quantitative scoring. ers with positive values and a strong will for innovation and development to grow together with the Company.
Evaluation
·Introduce special indicators such as carbon footprint, green packaging, and working hours of labor.
·Carry out annual routine audits combined with unannounced inspections, covering quality systems, process
Supplier Audit control, and ESG compliance. In 2025, the Company identi?ed zero instances of zero-tolerance issues, such as child
·Launch special due diligence for high-risk suppliers, issue audit reports, and track and close non-conformities. labor or forced labor, among its suppliers. The signing coverage rate of the Integrity
Commitment by suppliers reached 100%.
·Classify suppliers into four levels in accordance with evaluation results: strategic, collaborative, contractual,
Hierarchical and and general transactional.
Classi?ed
Supplier ·Categorize suppliers into strategic, collaborative, contractual, and general transactional types based on the
importance of strategic materials and supplier dependence, with annual adjustment of supplier classi?cation.
Management
Formulate supplier development strategies based on comprehensive supplier performance. Targets Progress
Long-Term Goals:
In terms of responsible supply chain management, the Company fully integrates sustainability requirements into procurement ·Build a world-leading responsible, highly resilient, and green supply chain system, Continuous advancement of long-term
achieving 100% certi?cation of core suppliers to ISO 14000/45001 or ISO 9000 standards. and phased goals
processes and the supplier management system, with a focused emphasis on suppliers' performance in social responsibility,
energy conservation and emission reduction, and integrity compliance. Through strengthened publicity on social responsibility,
·Achieve in-depth collaboration with strategic suppliers, jointly developing new materi- ·159 suppliers have obtained ISO 9000
als to form a sustainable competitive advantage. certi?cation.
ESG training for suppliers, and low-carbon technology exchange forums, the Company promotes upstream carbon emission
·129 suppliers have obtained ISO 14000
reduction commitments and disclosure. It has also launched a supply chain collaboration platform to enable visibility of order, certi?cation.
Phased Goals:
inventory and carbon emission data, thereby improving response e?ciency and supply chain resilience. In addition, the Company
·Complete full ESG risk assessment coverage for major suppliers and eliminate those 114 suppliers have obtained ISO 45001
requires suppliers to sign the Supplier Code of Conduct Agreement and the Supplier Social Responsibility Checklist, among other falling below the admission threshold. certi?cation.
measures, to continuously advance the supply chain toward a green, transparent and responsible direction. ·Establish a categorized and tiered management system to increase the share of strategic
suppliers and strengthen cooperation.
In terms of supply chain risk identi?cation, the Company systematically assesses potential risks of suppliers, covering legal, opera-
tional, ?nancial, technical, quality, delivery and other dimensions. On the basis of identifying risk items, the Company conducts Annual goals achieved
Annual Goals:
quantitative assessment from three dimensions: severity, occurrence frequency and detectability, and formulates preventive mea-
·Keep the number of supply chain risk incidents below 1. ·No supply chain risk incidents occurred.
sures and solutions to provide strong safeguards for the stable operation of the supply chain. ·Control the total number of suppliers to below 1,000. ·The total number of suppliers is 969.
Supply Chain Risk Response Mechanisms and Measures Contributing to Social Development
Risk Avoidance
·For risks with high occurrence probability and severe impact, such as supply risks caused by geopolitical
issues, the Company may consider replacing suppliers and refraining from procuring from the relevant region.
·For risks that are di?cult to avoid completely, measures shall be taken to reduce their impact. The Company places high importance on ful?lling its social responsibilities. It has established the External Dona-
Risk Mitigation ·Long-term contracts can be signed with suppliers to lock in raw material prices and mitigate risks arising tion Management Policy and the Volunteer and Public Welfare Activities Management Policy to strengthen the
from price ?uctuations.
·Safety stocks can be established to address short-term supply disruptions. management of donation a?airs and encourage employees to actively participate in social welfare activities,
thereby putting the Company's social responsibility into practice. In 2025, the Company actively engaged in social
·The Company can transfer part of the risks to insurance companies by purchasing insurance; for example, welfare initiatives, organizing donations totaling RMB 1,036,200.
Risk Transfer transportation insurance can compensate for losses incurred during cargo transit. Risk liabilities may also be
clearly stipulated in contracts to transfer part of the risks to partners. Concurrently, the Company actively promotes public science education, bringing technology into campuses. This
not only infuses campuses with the vitality of technological innovation but also sows the seeds of science for
Risk Acceptance
·For risks with low occurrence probability and minor impact, such as occasional small-scale logistics delays,
the Company shall conduct continuous risk monitoring. future talent development.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Governance as the Guarantee
Reinforcing the Foundation
for Steady and Sustainable
Development
The Company ful?lls its responsibilities in managing Party
a?airs, advances strict Party discipline comprehensively, and
promotes compliant and ethical business practices. It continu-
ously improves the corporate governance structure, strength-
ens internal control and risk management, standardizes relat-
ed-party transactions and information disclosure, and safe-
guards the legitimate rights and interests of shareholders, cred-
itors, employees, customers, suppliers, and other stakeholders.
The Company also enhances integrity building by conducting
integrity education, signing integrity agreements, regulating
commercial conduct, eradicating corruption, and fostering an
upright and transparent corporate culture.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Optimizing Governance Structure
The Board of Directors
Guided by the Party's advanced principles, the Company deeply integrates Party building into all aspects of corpo-
The Board of Directors is the permanent decision-making body of the Company and is accountable to the Shareholders' Meeting.
rate governance. It strengthens strategic guidance and direction control, continuously optimizes the governance
The Company attaches importance to the diversity of the Board of Directors, and has formulated systems including the Rules for
framework, and provides a solid foundation for steady and sustainable high-quality development, thereby better
the Selection and Appointment of Employee Directors and the Rules for Special Meetings of Independent Directors, so as to
ful?lling its social responsibilities.
improve the level of standardized operation and form a diversi?ed Board structure composed of shareholder representative
directors, employee directors and independent directors. The Board of Directors consists of nine directors, including six non-in-
Party Building Leadership dependent directors and three independent directors, with one Chairman.
The Company adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly Under the Board of Directors, there are an Audit Committee, a Nomination Committee, a Remuneration and Appraisal Commit-
implements the guiding principles of the 20th CPC National Congress and the Second and Third Plenary Sessions of its 20th Cen- tee, and a Strategy Committee. Each committee conducts research on professional matters and provides professional advice for
tral Committee, and puts into practice the strategic plans of the Party Central Committee for improving the modern enterprise the decision-making of the Board of Directors, with all members being directors of the Board. Starting from 2025, the Audit Com-
system with Chinese characteristics. Grounded in Zhejiang Province's non-public enterprises Party building orientation of "Strong mittee exercises the functions and powers of the Board of Supervisors as stipulated in the Company Law of the People's Republic
Party Building Enables Strong Development", the Company fully integrates Party leadership into all links and the entire process of China.
of corporate governance, giving full play to the Company's Party Committee leadership role of "providing strategic guidance,
overseeing overall priorities, and ensuring implementation", so as to drive high-quality development of its business operations.
Party organizations at all levels within the Company fully implement the principle of the "Two Consistent Adherences" (adhering Number Number of Number of Number of
to the Party's leadership over state-owned enterprises and the establishment of a modern enterprise system), abide by the work of Board Male Board Female Board Independent
Members Persons Members Persons Members Persons Directors Persons
requirements of "promoting development through institutional development, and pursuing coordinated progress with targeted
guidance", and take proactive steps in political, strategic, innovative, and responsibility-oriented leadership. By giving full play to
their role as the core leadership and political core, the Company promotes the coordinated development of economic, environ-
Directors shall be elected or replaced by the Shareholders' Meeting. The term of o?ce for directors is three years. Upon expira-
mental, and social bene?ts.
tion, directors may be re-elected and serve consecutive terms. Directors may concurrently serve as the general manager or other
The Company strives to strengthen the development of Party branches, and actively carries out the "Three Meetings and One Lec- senior executives; provided that the total number of directors who concurrently serve as the general manager or other senior
ture" system, themed Party Day activities, and initiatives to upgrade its Party building brand, which has gradually taken root executives, plus directors appointed by employee representatives, shall not exceed one-half of the total number of directors of
among Party members and the general sta?. By strengthening the education and management of Party members, and organizing the Company. The Shareholders' Meeting may adopt the cumulative voting system when electing directors.
activities such as themed Party Days, special training sessions, and revolutionary tradition education, the Company improves the
overall competence of Party members and gives full play to their exemplary vanguard role in production and operation, techno- Management
logical innovation, workplace safety, voluntary services, and other ?elds. It has built a contingent of Party members with strong
The Company has one general manager, appointed or removed by the Board of Directors. All senior management personnel of
political integrity, professional expertise, and ?ne work conduct, providing solid organizational guarantee and talent support for
the Company shall implement resolutions of the Board meetings in strict accordance with applicable national laws, regulations
the development of the enterprise.
and corporate governance provisions, and perform their duties faithfully and diligently.
Governance Structure Shareholders' Compensation of Directors and Senior Management
Meeting
The Company has established and continuously improved The Remuneration and Appraisal Committee is responsible for
Strategy Committee
its governance structure with the Shareholders' Meeting as formulating and implementing performance appraisal standards
the organ of power, the Board of Directors (the Board) as for directors and senior management, as well as developing and
the decision-making body, the specialized committees of reviewing remuneration policies and plans, including the remu-
Nomination Committee
the Board as decision support bodies, and the manage- neration decision-making mechanism, decision-making proce-
ment team as the executive body. An Audit Committee has Board O?ce dures, payment, clawback provisions for directors and senior
been set up under the Board of Directors to exercise the Board of management. The remuneration of the Company's management
Remuneration and
Appraisal Committee Directors consists of ?xed remuneration and variable remuneration, in
functions and powers of the Board of Supervisors as stipu-
lated in the Company Law of the People's Republic of which variable remuneration is linked to the overall performance
China. The Shareholders' Meeting, Board of Directors and of the Company. Performance evaluation combines organization-
Audit Committee al performance and individual performance, and perfor-
management team have clearly de?ned rights and obliga-
tions, perform their respective duties, cooperate with and mance-based remuneration is paid based on appraisal results.
Managers
check and balance each other.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Investor Relations Management
Earnings Number of Investor Number of Number of Number of Investor
Presentation Exchange Meetings Investors Received Platform Replies Calls Answered
Person-
Times Times times Times Times
The Company is committed to building close, harmonious and win-win relationships with investors to gather
strength for its long-term development.
Protection of Shareholders' Rights and Interests
High-Quality Information Disclosure The Company convenes and holds Shareholders' Meetings in strict accordance with applicable national laws and regulations as
well as the Rules of Procedure for Shareholders' Meetings, ensuring that shareholders exercise their voting rights in accordance
Adhering to the principles of transparency, consistency, accountability and integrity in information disclosure, the Company has
with the law. In 2025, the Company held a total of three Shareholders' Meetings, with a 100% attendance rate of directors.
formulated systems including the Information Disclosure Management Policy. It regularly updates ?nancial reports, company
announcements and other relevant information and materials through the Company’s o?cial website, the o?cial website of the
Shanghai Stock Exchange and designated media, ful?lls all information disclosure obligations in accordance with laws and regu- ·Meetings are held in an on-site form, while online voting or other methods are provided to facilitate sharehold-
lations, and ensures that investors have equal access to corporate information. In 2025, the Company continued to strengthen ers' participation in Shareholders' Meetings.
the management of information disclosure a?airs, duly ful?lled its information disclosure obligations in accordance with the law, · When deliberating on each agenda item, shareholders present at the meeting shall have the right to speak.
Directors and senior management shall explain and clarify inquiries raised by shareholders at the meeting, except
and e?ectively ensured full disclosure of all required information.
for matters involving the Company's trade secrets that cannot be disclosed at the Shareholders' Meeting.
· When deliberating major matters a?ecting the interests of small and medium-sized investors, separate vote
counting shall be conducted for voting by small and medium-sized investors, and the results of separate vote
counting shall be publicly disclosed in a timely manner.
Disclosed public Interim Other · When deliberating related-party transaction matters, related shareholders shall be required to recuse them-
announcements Periodic announce- online selves voluntarily.
and documents reports ments documents
· When voting on the election of directors, cumulative voting shall be adopted if the Shareholders' Meeting
intends to elect two or more directors.
· Voting shall be conducted item by item on all proposals included in the agenda; where there are di?erent
proposals on the same matter, voting shall be conducted in the order of submission.
Investor Relations Management
The Company pays close attention to developments in the capital market, upholds the philosophy of creating sustained value for
The Company has formulated the Investor Relations Management Policy to improve the investor protection mechanism, further shareholders, and continuously improves its shareholder return mechanism. By optimizing the corporate governance structure,
strengthen information communication with investors and potential investors, and promote the establishment of a long-term, improving the e?ciency of rational decision-making, and enhancing the transparency and standardization of information disclo-
stable and sound relationship. The Board O?ce is the competent department in charge of investor relations management, with sure, the Company e?ectively safeguards the legitimate rights and interests of shareholders. The Company continuously
dedicated personnel responsible for daily administration. Additionally, the Company has developed a comprehensive internal improves its pro?t distribution policy, maintains the stability and predictability of its dividend mechanism, promotes sound coor-
information management mechanism and built a uni?ed information platform, with all departments coordinating to provide dination between capital returns and the long-term development of the enterprise, and achieves win-win results for multiple
strong support for investor relations management. stakeholders. In addtion, the Company strengthens the management and control of debt risks, improves its debt management
The Company continuously expands diversi?ed communication channels. It timely releases corporate updates through plat- system, and maintains sound solvency and a reasonable capital structure. It has established a standardized and transparent
forms such as the o?cial website and o?cial WeChat accounts, and actively strengthens communication with investors via multi- communication mechanism to regularly disclose its operating and ?nancial conditions to creditors, strengthening the foundation
ple channels including the SSE E-interactive Platform, investor hotline, investor email, on-site research visits and earnings of mutual trust. On this basis, the Company takes into full account the demands of all types of stakeholders, emphasizes the
presentation, while earnestly listening to investors' opinions on the Company. balance of rights and interests and win-win cooperation, and continuously consolidates long-term and stable cooperative rela-
tionships.
Nationwide Investor Protection Awareness Day Event Case
Riyue organized the May 15 Nationwide Investor Protection
Awareness Day event. Based on serving the high-quality
development of the capital market, the Company is commit-
ted to investor protection with concrete actions to enhance
investors' sense of gain, security, and satisfaction.
Earnings Presentation at the SSE Roadshow Center
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Strengthening Risk Management and Internal Control
In 2025, the Company did not experience any major risk incidents.
The Company is committed to building a systematic and regularized risk and internal control mechanism, and con-
tinuously optimizes its internal control system. It establishes dedicated posts, clari?es division of responsibilities,
and improves risk management processes to ensure the compliant and orderly operation of all businesses, provid-
ing a solid guarantee for sustainable development.
Compliant Operation
The Company attaches great importance to lawful and compliant operation, and has formulated the Compliance Inspection and
Internal Control Management System, the Internal Control and Compliance Management Procedures and a compliance inspection plan. It
includes compliance audits in the annual audit plan, realizes information sharing and joint veri?cation with compliance supervi-
The Company strictly complies with the Company Law of the People's Republic of China and other laws, regulations and regula- sion, conducts monthly compliance inspections, compiles the Follow-Up Form for Non-Conformities Identi?ed in Compliance
tory requirements. Focusing on the ?ve core elements of the internal environment, risk assessment, control activities, informa- Inspections, follows up on recti?cation on a regular basis, and conducts random inspections on compliance in key focus areas at
tion and communication, and internal supervision, it continuously improves an internal control management system featuring intervals. In addition, the Company requires employees to sign the Employee Compliance Practice Commitment on an annual
full coverage, highlighted priorities and e?ective control. The Company actively promotes the revision of the Articles of Associa- basis, conducts irregular compliance training, fosters a compliance culture, and enhances compliance management capabilities.
tion and relevant internal control management systems to steadily elevate its internal control capabilities. It further clari?es the
roles and responsibilities of the Board of Directors, the Audit Committee and the management in the internal control mechanism,
and establishes and continuously improves the internal control system.
Internal Control Management System
First Line of Defense Responsible for daily compliance implementation, self-inspection and self-correction,
(Business Departments) and declaration of con?icts of interest.
Second Line of Defense Responsible for system development, risk assessment, compliance review, complaint
(Administrative Management Center) handling and organization investigation.
Third Line of Defense
Responsible for independent audits, compliance audits and recti?cation veri?cation.
(Audit Department)
The Company has formulated the Internal Audit Management System, the Internal Audit Operating Procedures, the Annual Audit
Plan and the Internal Audit Manual, and carries out special audits, ad hoc audits, and o?-o?ce audits of the Company and its
subsidiaries in an orderly manner. It regularly accepts annual internal control audits conducted by external independent
accounting ?rms, while strengthening the training and professional education of internal audit personnel to continuously
enhance professional capabilities in internal control. In 2025, the Company engaged a third-party institution to conduct an audit
on the e?ectiveness of its internal controls, which issued a standard unquali?ed internal control audit report.
Risk Management
The Company attaches great importance to risk management and always gives prominent priority to the prevention of major
risks. The Audit Committee under the Board of Directors assesses operational risks and supports and urges the management
team to improve the Company’ s risk management. Meanwhile, the Company clari?es the roles and responsibilities of the Board
of Directors, the Audit Committee and the management in risk management, establishes and continuously improves the risk
management system, actively conducts risk management and control training, and strengthens risk management through multi-
ple measures. In accordance with the Risk and Opportunity Control Procedure, all departments and subsidiaries conduct annual
risk identi?cation and evaluation in such ?elds as ?nance, operations, and compliance, formulate the Risk and Opportunity
Assessment Form, and develop corresponding response measures.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Observing Business Ethics Complete the declaration and review of con?icts of interest for all employees
on a regular annual basis.
Conduct at least one company-wide integrity risk screening and assessment
each year.
Phased Update the List of Key Integrity Risk Positions annually and implement di?er-
Goals entiated management and control.
The Company actively establishes a rigorous prevention and control system, integrates anti-corruption and
Organize integrity training and commitment signing for key position person-
anti-bribery into all aspects of corporate operations, spares no e?ort to foster a sound ethical environment, and
nel each year.
demonstrates its sense of responsibility with concrete actions.
Conduct compliance audits annually to evaluate the e?ectiveness of the
system.
Anti-Commercial Bribery and Anti-Corruption
Establish a long-term integrity governance mechanism of "daring not to
The Company has continuously improved its institutional system against commercial bribery and corruption, and kept revising corrupt, being unable to corrupt and having no desire to corrupt".
and re?ning documents including the Integrity Supervision and Implementation Management System, the Whistleblowing Man- Long-Term Achieve full coverage of compliance management across the group, all busi-
Goals
agement System, the Code of Practice for Procurement Personnel on Integrity and Professional Conduct, the Control Procedures nesses, and entire processes.
Become a benchmark enterprise for integrity and compliance in the industry.
of Anti-Corruption and Anti-Bribery, the Integrity Supervision and Implementation Management System, the Code of Practice for
Key Business Personnel, the Con?ict of Interest Investigation System, the Whistleblower Management System, and the Account-
ability Management System. This has formed a closed-loop management mechanism of "prevention ? supervision ? investigation
? accountability ? improvement" to standardize the implementation of relevant work. The Company has strengthened supervi-
sion and management over personnel in key links and positions where corruption is prone to occur, ensured the implementation Anti-Unfair Competition
of the commitment system against commercial bribery, and consciously resisted negative and corrupt practices such as sacri?c-
The Company attaches great importance to business ethics and is committed to fostering an honest and fair business environ-
ing justice for pro?t, harming corporate interests for private gain, dishonesty, fraud and deception. It has continuously strength-
ment. In strict compliance with rules of fair competition, the Company has formulated the Integrity Management System to guide
ened its integrity defense line and established a sound corporate image.
employees, customers, suppliers and other stakeholders to act in accordance with laws and regulations and uphold honesty and
trustworthiness. The Company has guided its subsidiary, Rixing Casting Co., Ltd., to formulate the Business Ethics Code Control
The Company has formulated the Control Procedures of
Procedures, which specify requirements on con?ict of interest, gift acceptance, protection and use of corporate assets and intel-
Anti-Corruption and Anti-Bribery, which explicitly stipulate that:
lectual property rights, whistleblower protection, and other matters.
·A commitment system for preventing commercial bribery shall be applied to personnel in key links and key positions. Indi-
viduals in important posts shall sign the Integrity Commitment for Procurement Personnel with the Company.
· All customers, suppliers, service providers and contractors having business relations with the Company must sign the
Supplier Anti-Bribery Commitment.
·An integrity reporting platform shall be established internally.
·Training and publicity on integrity-related policies shall be carried out.
The Company standardizes the procedures for accepting and investigating whistleblowing reports, and sets up diversi?ed report-
ing channels including An integrity reporting platform, reporting email, reporting box and in-person reporting, while keeping the
information of whistleblowers strictly con?dential.
Whistleblower Acceptance and Investigation Process
·Uni?ed acceptance, registration, and preliminary assessment.
·Establishment of an independent investigation team (comprising compliance, audit, legal a?airs, and other personnel).
·Preparation of investigation reports, formulation of handling proposals and submission to the President for approval in
accordance with rules.
· Serious handling of veri?ed violations in accordance with the Accountability Management System, including warning,
demotion, termination of labor contract, and transfer to judicial authorities.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Key Performance Indicators (KPI) Table Indicator Unit 2025 2024
Wastewater Discharge Tons 93,813.80 83,877.50
Note: Due to changes in the statistical methodology, some indicators show signi?cant year-on-year ?uctuations, which are considered Industrial Wastewater Discharge Tons 4,364.80 980.00
normal variations.
Domestic Wastewater Discharge Tons 89,449.00 82,897.50
Environmental Category II Pollutant Discharge Volume Tons 20.23 15.50
Wastewater COD Tons 11.62 7.80
Indicator Unit 2025 2024 Suspended Solids (SS) Tons 9.44 4.00
Total Water Consumption Tons 72.23 135.26 Other Category II Waste Water Pollutants Tons 6.86 3.70
Freshwater Consumption Tons 37.94 113.60 Number of Wastewater Treatment Facilities Tons 4 4
Water Treatment Capacity of Wastewater
Total Recycled Water Usage Tons 34.29 21.66 10,000 m?/year 3.66 1.50
Treatment Facilities
Resources
Proportion of Recycled Water Consumption % 47.48 16.01 Total Waste Gas Volume 100 million m? 277.95 165.50
Water Consumption Intensity Ton/RMB 1 million 115.46 806.89 Waste Gas Pollutant Discharge Volume kg 335,412.65 329,703.30
Total Energy Consumption 104 tce 9.77 37.51 NOX kg 265.88 3,219.20
Pollution
Bituminous Coal Consumption tce 0 15,235.74 Emissions SO2 kg 260.95 375.80
Anthracite Coal Consumption tce 0 43,533.23 Waste Gas Volatile Organic Compounds (VOCs) kg 27,656.22 28,252.80
Coke Consumption tce 639.42 229,379.63 Particulate Matter (PM) kg 307,004.60 294,373.10
Gasoline Consumption tce 4.97 348.30 Other Waste Gas Pollutants kg 315.00 3,482.00
Diesel Consumption tce 847.78 1,000.47 Number of Waste Gas Treatment Facilities sets 187 104
Treatment Capacity of Waste Gas Treatment 98,153.25 793.96
Natural Gas Consumption tce 384.41 3,296.20 100 million m?/year
Facilities
LPG Consumption tce 181.47 163.68 Total Solid Waste Generation Tons 77,363.88 43,633.90
Resource
General Industrial Solid Waste
Consump- PV Power Consumption tce 3,398.20 1,607.38 (Non-Hazardous Waste) Generation Tons 76,880.19 43,305.90
tion
Energy Purchased Electricity tce 90,504.16 79,861.04 Hazardous Waste Generation Tons 480.93 327.90
Purchased Heat tce Total Solid Waste Disposal Volume Tons 77,030.40 42,527.20
General Industrial Solid Waste
Fossil Energy Consumption tce 6,286.58 292,624.53 (Non-Hazardous Waste) Disposal Volume Tons 76,568.83 43,447.50
Non-Fossil Energy Consumption tce 2,541.42 1,607.38 Hazardous Waste Disposal Volume Tons 470.27 308.20
Purchased Energy Consumption tce 91,392.16 80,866.75 Waste Recycling Volume Tons 0 /
Energy Consumption Intensity tce/RMB 1 Million Revenue 15.62 48.49 Proportion of Recycled Waste % 0 /
Clean Energy Consumption tce 3,782.61 3,296.20 Total GHG Emissions tCO2e 607,648.58 1,429,335.93
Renewable Energy Consumption tce 3,398.20 1,607.38 Scope 1 Emissions tCO2e 85,138.82 1,077,408.22
Climate GHG
Proportion of Non-Fossil Energy Consumption % 0.87 0.43 Scope 2 Emissions tCO2e 522,509.76 351,927.72
Change Emissions
Proportion of Clean Energy Consumption % 1.17 0.88 GHG Emission Intensity(Scope 1) tCO2e/RMB 1 Million Revenue 13.61 139.88
Proportion of Renewable Energy Consumption % 1.17 0.43 GHG Emission Intensity(Scope 2) tCO2e/RMB 1 Million Revenue 83.53 45.69
Total Materials Consumption Tons 698,651.69 / Amount of Major Administrative Penalties Imposed
Environ- by Eco-Environmental Authorities for Environmental RMB 10,000 0 0
Recyclable Material Consumption Tons 0 / mental Environ- Incidents During the Reporting Period
Materials manage- mental
Non-Recyclable Material Consumption Tons 698,651.69 / Total Environmental Protection Investment RMB 10,000 2,366.39 1,927.43
ment Investment
Material Consumption Intensity Tons/RMB 1 million 111.68 / Environmental Protection Tax RMB 10,000 24.14 22.41
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Social
Indicator Unit 2025 2024 Indicator Unit 2025 2024
Total Number of Employees Persons 5,004 4,747 Total Number of Safety Training Sessions Times 568 480
By Gender: Total Duration of Safety Training Hours 1,954.92 1,542.45
Male Employees Persons 3,993 3,729 Average Safety Training Hours per Capita Hours 10.98 /
Female Employees Persons 1,011 1,018 Total Person-Times of Safety Training Participation Person-Times 21,479 18,082
By Age: Coverage of Work Safety Training % 100 100
Amount of Investment in Occupational Injury
Above 50 Persons 568 758 Insurance for Employees RMB 10,000 9.18 5.12
Number of Employees Covered by Occupational
By Education: Injury Insurance Persons 51 /
Number of Employees with Doctoral Degrees Persons 2 3 Occupational Coverage of Occupational Injury Insurance for Employees % 100 100
Health and
Employees with Master's Degrees Persons 27 19 Investment in Work Safety Liability Insurance RMB 10,000 32.8 31.3
Safety
Employ-
Employees with Bachelor's Degrees Persons 476 385 Management Coverage of Work Safety Liability Insurance % 76.2 59.31
ees' Employee
Rights and Structure Employees with Associate Degrees Persons 798 728 Number of Major Safety Incidents Incidents 0 0
Interests Employ-
Employees with Education Below Associate Degree Persons 3,701 3,612 ees' Number of Employee Safety Incidents in the Workplace Cases 110 /
Rights and Work Injury Rate
Disabled Employees Persons 16 18 % 2.26 /
Interests
Ethnic Minority Employees Persons 514 603 Number of Work-Ralated Fatalities Persons 0 /
By Professional Category: Work-Ralated Fatality Rate % 0 /
Production Personnel Persons 3,550 3,522 Number of Occupational Disease Cases Items 2 2
Sales Personnel Persons 57 54 Incidence Rate of Occupational Diseases % 0.04 0.04
Technical Personnel Persons 793 699 Amount of Investment in Employee Assistance RMB 10,000 0 11
Care and
Assistance Medical Examination & Health Record Coverage Rate
Finance Personnel Persons 25 22 % 100 100
Administrative Personnel Persons 579 450 Number of Employee Training Sessions Times 1,716 1,604
New Employees Persons 3,942 2,673 Employee Training Expenditure RMB 10,000 61.91 51.59
By Recruitment Channel: Total Employee Training Hours Hours 19,117.89 16,918.49
Fresh Graduates Persons 51 85 Average Training Hours per Employee Hours 3.82 3.56
Development
Number of Employees Recruited from Social Channels Persons 3,891 2,588 and Training Total Person-Times of Employee Training Participation Person-Times 149,522 130,019
Coverage Rate of Employee Social Insurance Contributions % 100 100 Employee Training Coverage % 99.9 100
Compen-
sation Employee Gender Pay Ratio % 525 / By Gender:
and Bene?ts
Average Paid Leave Days per Employee Days 5 / Male Employee Training Rate % 99.9 100
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Indicator Unit 2025 2024 Indicator Unit 2025 2024
Average Training Hours per Male Employee Hours 3.96 3.83 Number of Invention Patents Granted Items 0 5
Female Employee Training Rate % 100 100 Number of Utility Model Patents Granted Items 13 16
Average Training Hours per Female Employee Hours 3.29 2.59 Number of Design Patents Granted Items 0 0
Intellectual
By Employee Type Number of Valid Patents Items 178 174
Property
Number of Trained Senior Management Employees Persons 32 6 Protection Number of Trademarks Items 11 9
Development Training Participation Rate of Senior Management % 100 100 Number of Copyrights Items 0 0
and Training
Employ- Average Training Hours per Senior Management Employee Hours 4.11 3.77 Number of Software Copyrights Items 7 7
ees'
Number of Trained Middle Management Employees Persons 72 26 Number of Suppliers Entities 969 874
Rights and
Interests Training Participation Rate of Middle Management % 100 100 Number of Suppliers in Chinese Mainland Entities 963 868
Average Training Hours per Middle Management Employee Hours 27.64 25.13 Number of Suppliers from Hong Kong, Macao and Taiwan Entities 1 1
Number of Trained Frontline Employees Persons 4,894 4,715 Number of Overseas Suppliers Entities 5 5
Training Participation Rate of Frontline Employees % 99.9 100 Supplier Localization Ratio % 46.40 46.34
Average Training Hours per Frontline Employee Hours 4.13 3.44 Local Procurement Ratio % 27.37 26.08
Supplier
Number of Employees Participating in Employee
Persons 847 743 Management Number of Suppliers Audited Entities 91 28
Employee Satisfaction Survey
Satisfaction Employee Satisfaction Score Score Number of Suppliers Suspended for Non-Compliance Entities
Amount of Damages Involved in Major Liability Number of Potential Suppliers Rejected for Non-Compliance Entities 0 1
Product Accidents Related to Product and Service Safety and RMB 10,000
Supply
Safety and Quality During the Reporting Period Chain Number of Suppliers with ISO 9000 Certi?cation Entities 159 129
Quality Security
Number of Products to Be Withdrawn and Recalled
Cases 0 0 and Number of Suppliers with ISO 14000 Certi?cation Entities 129 100
Due to Health and Safety Reasons
Manage- Number of Suppliers with ISO 45001 Certi?cation
Number of Customer Satisfaction Surveys Conducted Times 37 41 Entities 114 100
ment
Customer Satisfaction Survey Coverage Rate % 100 100 Number of Suppliers Signing Integrity Commitment Entities 963 868
Customer Customer Satisfaction Score Score/% 92.89 91.27
Supply Chain
Number of Signi?cant Supply Chain Risks and Impact Incidents Cases 0 0
Management
Service and
Balance of Accounts Payable (including notes payable)
Product Rights and Number of Customer Complaints Cases 1,416 1,353 RMB 10,000 196,432.7 /
at the End of the Reporting Period
and Interests
Completion Rate of Customer Complaint Resolution % 100 100 Proportion of Accounts Payable (including notes payable)
Service %
Equal Balance in Total Assets at the End of the Reporting Period 14.49 /
Manage- Amount Involved in Data Security Incidents RMB 10,000 0 0
Treatment
ment Amount of Overdue Payments to SMEs at the End
RMB 10,000
Number of Customer Privacy Breach Incidents Cases of SMEs of the Reporting Period 0
Innovation- Driven Amount of Overdue Payables at the End of the RMB 10,000
Development Proportion of R&D Personnel % 6.61 6.48 Reporting Period 0 /
Number of Patent Applications Items 27 18 Amount of Investment in Public Welfare Activities RMB 10,000 103.62 /
Intellectual Number of Invention Patent Applications Items 5 6 Social Public Total Number of Public Welfare Activities Times 6 /
Property Contribu- Welfare
Protection Number of Utility Model Patent Applications Items 22 12 Activities Number of Volunteers Participating in Public Welfare Activities Persons 5,384.00 4,756
tio
Number of Patents Granted Items 13 21 Hours Invested in Community Initiatives Hours 3,923.00 3,736
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Governance
Indicator Unit 2025 2024 Indicator Unit 2025 2024
Number of Board Members Persons 9 9 Shareholders' Number of Shareholders' Meetings Held Times 3 3
Rights and
Number of Board Members with Doctoral Degree Persons 1 1 Interests Attendance Rate of Directors at Shareholders' Meetings % 100 100
Number of Board Members with Master's Degree Persons 2 1 Number of Periodic Reports Disclosed Items 4 4
Information
Number of Board Members with Bachelor's Degree or Below Persons 6 7 Disclosure Number of Interim Announcements Issued Pieces 62 80
Number of Male Board Members Persons 7 7 Number of Other Documents Issued Items 81 51
Number of Female Board Members Persons 2 2 Amount Involved in Lawsuits or Major Administrative
Compli-
Gover- Penalties Caused by the Company's Unfair Competition RMB 10,000 0 0
ant Practices During the Reporting Period
nance Number of Independent Directors Persons 3 3
Opera-
Strategy Organization Risk
Number of Law-Abiding and Compliance Training Sessions
Number of Non-Independent Directors Persons 6 6 tions and Times 2 2
and Structure Management
Risk
Organiza- and Functions Number of Directors Aged 30 (Inclusive) and Below Persons 1 0 Duration of Law-Abiding and Compliance Training Hours 1,344 940
Manage-
tional
Number of Directors Aged 30 to 50 (Inclusive) Persons 3 3 ment Number of Participants in Law-Abiding and Compliance Training Person-times 672 470
Structure
Number of Directors Aged Over 50 Persons 5 6
Number of Board Meetings Held Times 7 7
Company Names and Abbreviations Comparison Table
Number of Senior Executives Persons 6 6
Number of Senior Executives with Master's Degree Persons 2 1
Number of Senior Executives with Bachelor's Degree or Below Persons 4 5
Number of Male Senior Executives Persons 6 /
Number of Female Senior Executives Persons 0 / Abbreviation Full Company Name
Number of Anti-Commercial Bribery and Anti-Corruption
Times 2 2 Riyue Riyue Heavy Industry Co., Ltd.
Training Sessions
Number of Participants Trained in Anti-Commercial
Persons 356 227 Rixing Casting Ningbo Rixing Casting Co., Ltd.
Bribery and Anti-Corruption
Anti- Number of Directors Trained in Anti-Commercial Bribery Essence Metal Ningbo Essence Metal Machinery Co., Ltd.
Persons 9 9
Commercial and Anti-Corruption
Business Number of Management Personnel Trained in
Bribery and Persons 7 6 Yuexing Metal Ningbo Yuexing Metal Machinery Co., Ltd.
Ethics Anti-Commercial Bribery and Anti-Corruption
Anti- Number of Employees Trained in Anti-Commercial
Persons 340 218 Riyue Nuclear Equipment Ningbo Riyue Nuclear Equipment Manufacturing Co., Ltd.
Corruption Bribery and Anti-Corruption
Proportion of Total Participants Trained in Anti-Commercial Precision Manufacturing Ningbo Riyue Essence Precision Manufacturing Co., Ltd.
% 100 100
Bribery and Anti-Corruption
Number of Corruption Lawsuits Cases 0 0 Mingling Technology Ningbo Mingling Technology Co., Ltd.
Investor Earnings Presentation Times 3 3 Riyi Intelligent Ningbo Riyi Intelligent Equipment Co., Ltd.
Relations Number of Investor Exchange Meetings Gansu Riyue Riyue Heavy Industry (Gansu) Co., Ltd.
Times 26 19
and Investor
Sharehold- Relations Number of Investors Received Person-Times 254 439 Zhixin Testing Xiangshan Riyue Zhixin Testing Technology Co., Ltd.
ers' Rights Management
Number of Platform Replies Times 29 27 Riyue New Energy Ningbo Riyue Rixing New Energy Technology Co., Ltd.
Manage-
ment Number of Investor Calls Answereda Times 263 399 Subei Zhexinneng Subei Zhexinneng Wind Power Co., Ltd.
Riyue Heavy Industry Co., Ltd. Stock Code: 603218 2025 Environmental, Social, and Governance (ESG) Report
Indicator Index Feedback Form
Dear Readers,
Shanghai Stock Exchange Self-Regulatory Guidelines
Report Sections To better provide you and other stakeholders with e?ective information, continuously improve the quality of the report, and
for Listed Companies No.14—Sustainability Report (Trial) enhance our sustainable development capabilities, we sincerely invite you to evaluate this report and o?er your valuable
comments and suggestions.
ESG Management Stakeholder Engagement
Environmental Compliance Management Environmental Compliance Management
You may provide your feedback through the following channels:
Green as the Prevention and Control of Pollution Pollutant Emissions, Waste Disposal Address: 20F, Riyue Constellation Building, No. 7 Tianzhi Alley, Shounan Subdistrict, Yinzhou District, Ningbo City, Zhejiang
Foundation:
Re?ned Resource Utilization Energy Utilization, Water Resource Utilization, Circular Economy Province Board O?ce, Riyue Heavy Industry Co., Ltd.
Charting the
Ecological Chapter
Climate Change Response Climate Change Response Postal Code: 315100 Tel.: 0574-55007043 Email: stock@riyuehi.com
Biodiversity Conservation Ecosystem and Biodiversity Conservation
Feedback Questionnaire
Gathering Talent Strength Employees
Driving Development Through Innovation Innovation-Driven Development, Technology Ethics
Craftsmanship as 1.Your identity in relation to Riyue
the Soul, Forging Product and Service Safety & Quality, Data Security and
Strengthening Product Quality
Outstanding Quality Customer Privacy Protection □ Government □ Investor □ Employee □ Customer □ Supplier/Contractor □ Partner
Deepening Supply Chain Management Supply chain security
□ Peer □ Community & Public □ Media □ Non-Governmental Organization
Contributing to Social Development Social Contribution, Rural Revitalization
□ Others (Please specify)____________________________
Optimizing Governance Structure /
Governance as the
Guarantee, Reinforcing Investor Relations Management Stakeholder Engagement 2.Your overall evaluation of this report
the Foundation
for Steady and Strengthening Risk Management and Internal Control / □ Excellent □ Good □ Average □ Below Average □ Poor
Sustainable Development
Observing Business Ethics Anti-Commercial Bribery, Anti-Corruption, and Anti-Unfair Competition
□ Very Reasonable □ Reasonable □ Average □ Somewhat Unreasonable □ Unreasonable
□ Highly Comprehensive □ Comprehensive □ Partially Covered □ Seldom Covered □ Not Covered
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