Contents
About the Report 1
Chairman's Message 3 About Rongsheng 5 Ensuring Operational 19 Conserving Ecology 29
Petrochemical Compliance to Enhance and Unleashing Green
Future Prospects 99 Growth Strength Potential
ISO System 100
About Us 7 Enhancing Environmental 31
Certification Statistics Corporate Governance 21 Management
of the Company Market Structure 8
Information Disclosure 22 Responding to Climate Change 38
Core Competitiveness 9
Management
Independent 101
Reducing Resource Consumption 53
Recognition 10
Investor Relations Management 23
Assurance Report Remuneration Appraisal 12
Business Ethics Management 23
Controlling Pollutant Discharge 58
Seizing Clean Technology 64
Materiality Assessment 13
Index 106 ESG Governance 17
Opportunities
Main Environmental Performance 66
Readers' Feedback 107
Indicators
Questionnaire
Creating Momentum by 69 Working Together in 85
Reinforcing Quality and Harmony for Common
Safety Progress
Guarding Work Safety 71 Protecting Employees' Rights and 87
Interests
Strengthening R&D Innovation 81
Striving for High-Quality Services 93
Enhancing Quality Management 83
Practicing Responsible Sourcing 95
Building a Better Community 96
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
About the Report
ZPC refers to Zhejiang Petroleum & Rongxiang refers to Rongxiang Chemical Fiber
Chemical Co., Ltd. Chemical Fiber Co., Ltd.
Zhongjin refers to Ningbo Zhongjin Shengyuan refers to Zhejiang Shengyuan
Petrochemical Petrochemical Co., Ltd. Chemical Fiber Chemical Fiber Co., Ltd.
Yisheng refers to Yisheng Dahua Yongsheng refers to Zhejiang Yongsheng
Report Information Dahua Petrochemical Co., Ltd. Technology Technology Co., Ltd.
This report elaborates the performance and management measures of Rongsheng Petrochemical Co., Ltd. (hereinafter Yisheng New refers to Zhejiang Yisheng New Rongsheng refers to Rongsheng New Materials
Materials Materials Co., Ltd. New Materials (Zhoushan) Co., Ltd.
referred to as "Rongsheng Petrochemical", "the Company", or "we") in terms of the environment, society, and corporate
(Zhoushan)
governance in 2025, with particular focus on stakeholder concerns.
Languages
Reporting Scope The report is published in simplified Chinese and English. In the event of contradiction between the two versions, the
simplified Chinese version shall prevail.
The report covers the Company's information and data from January 1, 2025 to December 31, 2025 (hereinafter referred
to as "the reporting period"), and some of the contents can be traced back to previous years or extended to 2026. The
report covers Rongsheng Petrochemical and its subsidiaries, and a small portion of the data covers less than the scope
defined above. Contents that refer to Zhejiang Rongsheng Holding Group Co., Ltd. (hereinafter referred to as "Rongsheng
Report Assurance
Holding"), the parent company of Rongsheng Petrochemical, are specified separately. The Company engaged Klynveld Peat Marwick Goerdeler Huazhen LLP to provide limited assurance on the selected 2025
key data in the 2025 Sustainability Report. Please refer to the section "Independent Assurance Report" for more
Preparation Basis
information.
This report is prepared based on the Self-Regulatory Guidelines for Companies Listed on the Shenzhen Stock Exchange
No.17 – Sustainability Report (For Trial Implementation) and the Self-Regulatory Guidelines for Companies Listed on the
Confirmation and Approval
Shenzhen Stock Exchange No.1 - Standardized Operation of Companies Listed on the Main Board. This report also Upon confirmation by the management, the report was approved by the Board of Directors and published on April 26,
referred to the Sustainability Reporting Standards (GRI Standards) released by the Global Reporting Initiative (GRI), the 2026.
Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 5.0) and the Guidance on
Social Responsibility Reporting (GB/T 36001-2015).
This report is determined in accordance with an established set of procedures, which consists of identifying and
Report Access
prioritizing material issues about the environment, society, and corporate governance, determining the scope of the This report is available in simplified Chinese and English for readers' reference. To browse online or download this report,
report, collecting relevant information, compiling the report, and reviewing the information in the report. please visit the official website of Rongsheng Petrochemical at http://www.cnrspc.com, or cninfo at www.cninfo.com.cn.
We value the opinions of our stakeholders, and readers are encouraged to contact us through the following methods.
Data Source Your suggestions will help us further improve this report and our social responsibility management.
The financial data in this report comes from the Annual Report. Other information and data are from relevant internal
statistical reports and documents of the Company. The amount of currency associated with the Company is measured in Telephone: +86 0571-8252 0189
RMB.
Official website: http://www.cnrspc.com
Glossary
Address: No. 358 Jincheng Road, Lanjue International Office Building, Xiaoshan District, Hangzhou, Zhejiang Province
E-mail: rspc@rong-sheng.com
For the convenience of presenting and reading, "the Company", "Rongsheng Petrochemical", and "we" in this report all
refer to Rongsheng Petrochemical Co., Ltd. and its subsidiaries. Other companies are referred to as follows:
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Chairman's
capabilities. Key projects, including the ZPC Refining- the Memorandum of Under-standing, the Cooperation
Chemical Integration and the Jintang New Materials Framework Agreement, and the Joint Development
Message
initiatives, have progressed steadily. As our industrial Framework Agreement, we have maintained close
chain extends and synergies emerge, breakthroughs in collaboration with Saudi Aramco. This ongoing
green chemical engineering and intelligent refining "strength-to-strength" alliance promotes resource
technologies have further reinforced the resilience of sharing and complementary advantages, helping to
our operational framework. cultivate a mutually beneficial industrial ecosystem.
The year 2025 marks both the 30th anniversary of True to our vision of "From China to Global Excellence",
Rongsheng Petrochemical and the conclusion of We champion green development to strengthen a we will further broaden and deepen international
China's 14th Five-Year Plan. Against a backdrop of foundation for "low-carbon transition and cooperation, enhancing our global resource allocation
accelerating shifts in the global economic and industrial collaborative symbiosis". This year, we actively capacity and overall competitiveness.
landscape, Rongsheng Petrochemical has remained responded to the national "carbon peaking and carbon
steadfast to the operating philosophy of "Sincere neutrality" goals, embedding green transition across our We pursue steady progress to embark on a new
Creation, Preeminent Pursuit". Maintaining strategic strategic planning and operational processes. We journey, and take dedicated action to shape the
focus, we have deepened our commitment to the systematically advanced energy conservation, carbon future. As we look toward the "15th Five-Year Plan"
petrochemical sector while driving breakthroughs in reduction, clean production, and efficient resource period, Rongsheng Petrochemical will uphold the
technological innovation and management utilization. In 2025, we invested RMB 220 million in mission of "Serve the Country with Industry and Lead
enhancement. We navigate an uncertain landscape environmental protection. Leveraging technological Industrial Development". We will refine our modern
with steady operation and continue to explore a path upgrades, process optimization, and refined corporate governance system, emphasize green and
toward high-quality and sustainable development. management, we have made notable strides in reducing digital-intelligent transformation, and foster synergy
greenhouse gas (GHG) emissions, improving water among economic performance, environmental
We advance innovation-driven development to forge stewardship, and controlling pollutants. Our MSCI ESG stewardship, and social responsibility. Together with all
an industry consensus of "advancing through rating has risen to A, ranking us first among China's our partners, we will move forward on this new journey
innovation, and excelling through quality". Through- chemical enterprises and placing us among the top tier of high-quality development, contributing to the
out the year, we have aligned our efforts with national globally within the commodity and diversified chemicals sustainable prosperity of our industry and the creation
strategic priorities and industrial upgrading trends, sector—a testament to the robustness of our ESG of lasting value for society.
while intensifying our focus on break-throughs in core governance.
and critical technologies. Guided by an integrated
industrial chain approach, we have strategically We foster openness and co-creation to expand a
targeted key growth segments such as new energy framework of "mutual benefit and global
materials, engineering plastics, high-performance connectivity". Guided by a global outlook, we pursued
resins, and advanced new materials, thereby solidifying new models of international collaboration this year.
Li Shuirong
our technological foundations and enhancing product Building on previously established agreements such as
Chairman
About
Rongsheng
Petrochemical
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
About Us Market Structure
The Company's domestic market extends throughout China, and its international market spans multiple countries and
Rongsheng Petrochemical Co., Ltd. (A-share stock abbreviation: Rongsheng Petrochemical, stock code: 002493) was
established in 1995 and is headquartered in Hangzhou, China. It is one of the leading enterprises in the petrochemical regions worldwide.
industry with world-class comprehensive strength. The Company specializes in the R&D, production, and sales of various
refined oil products, chemicals, and advanced new materials. It operates seven major production bases strategically
located in the Yangtze River Delta Economic Zone, the Bohai Economic Rim, and the Hainan Belt and Road Economic
Circle.
As one of the world's leading chemical material manufacturers, the Company operates the world's largest single-unit
refining and chemical integration project—a 40 million tonnes/year green petrochemical base, and its production bases'
chemical production capacity reaches 60 million tonnes. The Company is a key producer of polyester, new energy
materials, engineering plastics, and high-value-added polyolefins in China and Asia. It is also the world's largest producer
of chemical products such as para-xylene (PX) and purified terephthalic acid (PTA), with the production capacities of
multiple products, including polyethylene, polypropylene, polyethylene terephthalate (PET), ethylene-vinyl acetate (EVA),
acrylonitrile butadiene styrene (ABS), and polycarbonate (PC), ranking among the top globally.
Currently, the Company ranks 5th in the Most Valuable Chemical Brands, 7th in the Chemical Producers Billion-Dollar Club,
and 9th in the Top 100 Chemical Companies. The Company's controlling shareholder is Zhejiang Rongsheng Holding
Group Co., Ltd., which ranks 118th in the Fortune Global 500, 32nd in the Top 500 Chinese Enterprises, and 7th in the Top
as "Saudi Aramco") made a strategic investment in Rongsheng Petrochemical, becoming its second-largest shareholder.
The two parties have established deep business cooperation in energy supply, technology sharing, sales networks, and
other areas, achieving resource sharing, complementary advantages, and mutual benefit, thereby laying the foundation
for Rongsheng Petrochemical's globalization process.
The Company actively builds various R&D platforms and adheres to a technology R&D model driven by "independent
innovation" and "open cooperation," continuously enhancing its scientific research capabilities. Currently, the Company
has established a substantial system of independent intellectual property rights, effectively promoting the innovative
development of the enterprise.
While pursuing industrial value, the Company also embraces social responsibility. It persists in implementing strict
integrated safety and environmental supervision, promotes advanced low-energy consumption technologies and
equipment, and produces green and eco-friendly products. Through concrete actions, the Company injects green energy
into the industry and protects the "clear waters and lush mountains."
Corporate Culture
Corporate culture is of utmost importance for the Company's sustainable development. Over more than 30 years of
development, Rongsheng Petrochemical has always been following its corporate culture construction to actively
undertake social responsibility and steadfastly pursue a path of green innovation and sustainable development.
Core Values Vision
Honest, optimistic, and grateful 01 Be a centurial enterprise that is
responsible, industry-leading, and
sustainably profitable
Management Concept 03 Mission
Sincere Creation, Preeminent Pursuit Serve the country with industry and
lead industrial development
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Report Message Petrochemical Compliance Ecology and Safety Together
Core Competitiveness Recognition
Advantage in After years of development and improvement, the Company has seized the opportunities in the industry
adjustment and realized rapid growth, with the development mode of "from a drop of oil to everything in
Comprehensive 5th of the Most
the world". Through the extension of the industrial chain, the Company has effectively reduced business 118th of the 2025 2025 Forbes China
Industrial Fortune Global
Globalization
Valuable
costs, realized the mutual support of upstream and downstream sectors, and also improved its sustainable Fortune China 500 Chemical Brands
Synergy profitability and anti-risk ability.
Along the eastern coastline of China, the Company's production bases are mainly distributed in Dalian,
Liaoning Province of the "Bohai Economic Circle", Ningbo, Zhejiang Province of the "Yangtze River Delta
Advantage in Economic Circle" and Haikou, Hainan Province of the "Belt and Road Economic Belt" and "Maritime Silk
Fortune Magazine (US) Fortune Magazine (US) Forbes China Brand Finance
Significant Road". All production sites are adjacent to high-quality ports, connected to the canal, and the terminal
Competitive facilities are fully equipped. The main raw materials and other auxiliary raw materials required for the
Location production of the Company's products can be unloaded and stored at the Company's self-built or rented
chemical material wharf, which greatly facilitates the transportation of bulk raw materials and their
inventory adjustment.
Top 100 Top 500 Chinese
Producers Billion- Top 50 Chemical
Chemical Enterprises
The Company has strong market sensitivity and flexible decision-making mechanism, keeps an eye on Dollar Club Firms
Companies in 2025
market dynamics, and makes timely and accurate adjustments to the strategy under the institutional
Advantage in advantages of its own fast pace and few links, and grasps the opportunities of the market situation.
Outstanding Management has a keen investment acumen, accurate timing of project production, and excellent
investment and financing capabilities. With the steady advancement of new projects, the Company is
Strategic Layout Independent Commodity Chemical Week (US) Chemical & Engineering News (US) China Enterprise Confederation
poised to achieve orderly capacity expansion across key sectors including new energy materials, renewable Intelligence Services (ICIS), a data & China Enterprise Directors
plastics, specialty synthetic materials, and high-end synthetic materials. This will significantly accelerate the and analysis provider in the global Association
petrochemical market
green transition of its product portfolio.
The Company adheres to a science and technology R&D model driven by the dual principles of
"independent innovation" and "open cooperation". We have built a first-class research and development 2nd of China 8th of the Top
Petroleum and
platform such as a high-tech research and development center, an academician expert workstation, an Chemical Enterprise
enterprise technology center, and a postdoctoral research workstation. We actively engage in external and Chemical 500 Private Manufacturing
Top 500
Enterprises Enterprises of
Advantage in technical exchanges and discussions, and proactively promote industry-academia-research integration and (Independent Enterprises of
Production and (General) in China in 2025 China in 2025
Strong R&D collaboration. The Company has established a scientific research achievement incubation platform that Operation) in 2025 2025
Innovation covers the entire R&D process from laboratory research to industrial demonstration production, effectively
driving the transformation of research outcomes from technological breakthroughs into industrial
applications. In recent years, the Company has continuously increased scientific research cooperation with
domestic and foreign institutions, and its R&D investment has grown year by year, maintaining an industry- China Chemical Enterprise China Petroleum and Chemical All-China Federation of Industry China Enterprise Confederation
Management Association Industry Federation & China Chemical and Commerce & China Enterprise Directors
leading position in R&D strength. Enterprise Management Association Association
The Company places high priority on corporate culture development, which has fostered a positive work
environment and strong organizational cohesion. Through initiatives such as internal training and external
Advantage in
recruitment, the Company has cultivated a stable team of core talents in management, R&D, and technical
Abundant Talent
fields. The Company values the cultivation of on-the-job employees, based on reality and comprehensive
Resource planning, constantly broadens the employee selection platform, and establishes an effective incentive The 2025 EU
mechanism, so that all kinds of talents have a "stage where they can exercise their abilities". Industrial R&D 2nd of 2025 Zhe
Company Yinghua AA-Level "Contract-
Investment Shang National
Award — A-share Abiding and Credit-
Scoreboard Global Top 500 Worthy" Publicly
ESG Exemplary
Top 2000 R&D Enterprises Listed Enterprise
The Company adheres to institutionalized construction, integrates digitalization, intelligence, Case
investors
Advantage in standardization, process establishment and normalization into the operation of the enterprise, fully
Efficient integrates procurement, production, inventory, sales and other business links, and continuously improves
Operation and the ability to respond quickly. The Company has established a set of effective management systems based European Commission Zhe Shang Magazine CHINAFUND Hangzhou Municipal Administration
Management on its own actual situation, clarified job responsibilities and work processes, and effectively reduced for Market Regulation
operating costs through refined management.
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Performance Highlights Remuneration Appraisal
The Company has adopted the Rongsheng Holding Group Overall Appraisal Program (hereinafter referred to as the
Operating income (Unit: RMB million)
Total assets (Unit: RMB million)
The Company conducts annual appraisals of Directors and senior management in accordance with the Appraisal and
determines the annual bonus allocation plan on the basis of the appraisal scores.
Remuneration for the Company's Senior Management in 2025
Name Fixed salary [monthly Variable pay [year-end Total Total actual
payment] (RMB 10,000) payment] (RMB 10,000) remuneration remuneration
payable before tax
Total salary Other Annual Actual before tax (RMB 10,000)
allowances bonus annual (RMB 10,000)
payable bonus
R&D investment (Unit: RMB million)
coverage (Unit: %)
Environmental protection training
Xiang Jiongjiong 217.71 2.36 157.00 160.28 377.07 380.35
Zhou Xianhe 125.85 1.40 47.30 40.72 174.55 167.97
Quan Weiying 84.71 1.17 27.73 25.27 113.61 111.15
Wang Yafang 85.07 0.88 39.94 39.26 125.89 125.21
Note Variable compensation is determined based on the achievement of assessment indicators set
at the beginning of the year, including resource and energy consumption data, compliant
emissions, stakeholder relationship management, brand building, and other sustainability
Safety investment (Unit: RMB million)
Total safety training coverage (Unit: %)
performance. In 2025, the Company's senior management practically completed the goals set
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Report Message Petrochemical Compliance Ecology and Safety Together
Materiality Assessment Step 1: Analysis of the background of the Company's activities and business relationships
When conducting materiality assessment, the Company profoundly analyzes the background of each management
Rongsheng Petrochemical conducted a company-wide materiality assessment following the procedures below: activity and business relationship at first, and then conducts interviews with management personnel to obtain
information on business, management, employees, products and services, and market conditions. Meanwhile, we
analyze internal and external policies, risk assessment reports and ESG standards, to sort out the status quo,
opportunities and challenges of sustainable development. We are committed to building cooperative and mutually
Step 1
beneficial relationships with both internal and external stakeholders to achieve win-win situation and maximized
value with joint endeavors. We maintain active communication with stakeholders via multiple channels to learn
Analysis of the background of the Company's
activities and business relationships about their demands and concerns and responded to stakeholders with practical actions.
• The Company's • Internal and external
activities and business objective environment Stakeholders Concerns Communication Channels
relationships • Major stakeholders
Compliance Performance growth Shareholders' meetings Investor surveys
Step 2 Risk and return Company announcement Hotline
Management Business Ethics Regular reports and Mailbox
Establishment of an IRO (impact, risk and opportunity) communication WeChat official
inventory of issues Shareholders
Press account
and investors
• Policy analysis • Peer analysis conferences/meetings
• Rules and standards • ESG rating
benchmarking requirements in the Fully paying Low-carbon operation Press release/ Regular
capital market taxes according and environmental announcements communication
to the law protection The Company's official Information
Step 3 Supporting the Energy conservation website disclosure
Government
and regulators state strategies and emission reduction
Materiality assessment and
confirmation
Product quality Customer rights and Hotline Customer visits
Both impact materiality and financial materiality interests
R&D Innovation E-mail Customer
•
are scored by internal and external ESG experts
Customer Services Satisfaction surveys complaints
based on the magnitude of the impact of the
issues and the likelihood of their occurrence. The Company's
Customers
official website
Step 4
Equal Employees development Suggestion boxes Employee events
employment Employee care Employees' meetings Service evaluation
Materiality assessment result
Remuneration Occupational health and Hotline
analysis
Employees and benefits safety
• The 2025 materiality matrix is established
based on the assessment data in Step 3,
identifying and prioritizing annual material Fairness and Cooperation and mutual Technical meetings Suppliers' meeting
issues. transparency benefits Online communication Hotline
Integrity in Responsible sourcing Regular visits
Step 5 contract Protection of intellectual
Partners performance property rights
Disclosure of materiality
information Supporting Low-carbon operation Charity events Site visits
• The Strategy and Sustainability Committee public welfare and environmental Media communication
reviews and confirms the analysis results, and and charity protection and coverage
then the Company discloses the material issues Supporting Energy conservation
in the sustainability report, based on the Communities community and emission reduction
analysis results. construction
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Step 2: Establishment of an IRO (impact, risk and opportunity) inventory of issues Step 4: Materiality assessment result analysis
By benchmarking peer enterprises, studying macro policies and laws and regulations, finding out industry We adopt the two-dimensional matrix of "financial materiality - impact materiality" to present the materiality
development trends, and grasping ESG rating requirements in the capital market, we identify potentially material assessment results. We have identified that "climate change response" and "environmental compliance
issues that can reflect the impacts of the Company's business on economy, environment and society or influence management" are material in respect of finance. Meanwhile, these two issues also are material in respect of impact.
stakeholders' decisions. By doing so, we aim to ensure that the identified issues are in line with regulatory
requirements as well as good international practices. With extensive reference to the issue identification methods and
prioritization results of peer enterprises performing excellently in respect of sustainability, we identify material issues
that draw intensive concerns and update the IRO inventory of issues.
High
Step 3: Materiality assessment and confirmation
We assess and prioritize issues based on their impact materiality and financial materiality. Impact materiality focuses
on whether the Company's performance in respective issues significantly affects economy, society and environment.
Financial materiality focuses on whether each issue is expected to significantly affect the Company's business model,
business operations, development strategy, financial position, operation results, cash flows, financing methods and
costs in the short, medium and long terms1. In line with regulatory requirements, risk assessment standards and
actual production and operations, we set the determination thresholds for and prioritize impacts, risks and
opportunities, taking into account the feedback from stakeholders and internal and external experts. Ultimately, the
assessment results are output to inform strategic decision-making and resource allocation.
When assessing the impact of sustainability issues, we consider the magnitude of the impacts on environment and
Impact materiality
society and as well as the frequency of occurrence:
Consideration Description
Magnitude of impacts on It refers to the extent of impact, and is categorized into high, medium and low
environment and society levels.
Frequency of occurrence It measures how often an issue occurs, and is categorized into high, medium and
low levels.
When assessing the risks and opportunities of sustainability issues, we consider the severity of property
damage consequences, the magnitude of impact on property gains, and the frequency of occurrence:
Consideration Description
Financial materiality
Severity of property damage It refers to the extent of property damage consequences, and is categorized into
consequences high, medium and low levels.
Low High
Magnitude of impact on It refers to the extent of influence of impacts on property gains, and is categorized
property gains into high, medium and low levels.
Frequency of occurrence It measures how often an issue occurs, and is categorized into high, medium and
low levels.
longer than 5 years, in order to align with the Company's strategic development plan, industry characteristics, nature of risks and opportunities and
resource allocation plan.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
ESG Governance Rongsheng Petrochemical ESG governance structure
The Company actively integrates ESG management into The Strategy and Sustainability Committee holds a
its operational development. We steadily advance social regular meeting at least once a year to receive briefings Board of Directors
responsibility practices and work with stakeholders to from management on the progress of ESG matters.
generate value and share development outcomes, Various topics are discussed at the meeting, including Decision-making
acting as a company that sincerely pays back to society ESG policy trend, key issue management, potential risks Level
and earnestly fulfills social responsibility. and opportunities, progress towards targets and
information disclosure. Through the meeting, we can
Strategy and Sustainability Committee
The Company has set up a top-down ESG governance ensure that ESG-related impacts, risks and
structure that involves multiple stakeholders, The Board opportunities are fully considered for decision-making,
of Directors serves as the highest decision-making body work planning and resource allocation. During the
for ESG governance, overseeing the Strategy and reporting period, the Strategy and Sustainability
Sustainability Committee, which is chaired by the Committee hold one meeting in total to review the
Management Senior Management
Chairman and includes four additional directors as its Company's ESG management. Level
members. The Strategy and Sustainability Committee is
responsible for reviewing the Company's environmental The Company organizes regular training sessions
management-related matters, including environmental lectured by industry experts, covering areas such as the
strategic planning, environmental goal setting, latest ESG trends, excellent case studies and
environmental policy formulation and execution professional skills. These training sessions provide the Secretary of the Board
management, climate risk assessments, environmental Board of Directors, the management team and relevant
performance, and environmental information personnel with ESG knowledge and practical skills, Execution
disclosure. The Strategy and Sustainability Committee enabling them to support the Company's strategic Level
regularly reports to and is under the supervision of the planning, policy implementation and regulatory
Board of Directors. The Office of Board Secretary leads compliance.
Departments and Subsidiaries
other departments and the subsidiaries in
implementing and promoting ESG governance practices.
This structure clearly defines the responsibilities and
promotes cooperation within the Company, laying a
solid foundation for the Company's ESG governance
and sustainable development management.
Ensuring Operational
Compliance to Enhance
Growth Strength
A sound governance system and a fair, healthy business environment form the
bedrock for an enterprise's stable operation and long-term progress.
Rongsheng Petrochemical is committed to continuously optimizing
governance mechanisms and upholding rigorous business ethics, ensuring all
activities are carried out in full regulatory compliance. The Company deeply
integrates the development principles of "innovation, coordination,
sustainability, openness, and sharing" into its business strategy. We actively
foster constructive engagement with all stakeholders, proactively fulfill our
responsibilities as a corporate citizen, and employ systematic social
responsibility management, thereby providing solid support as we advance
into a new stage of high-quality development.
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Corporate Governance
In strict accordance with the applicable laws, regulations, and regulators' requirements of the locations where the
Company's stocks are publicly offered, including the Company Law of the People's Republic of China, the Securities Law • Inspect the Company's compliance with laws and regulations
of the People's Republic of China, the Code of Corporate Governance for Listed Companies, the Rules Governing the • Review the Company's accounting policies, financial position, and
Listing of Shares on the Shenzhen Stock Exchange, and the Self-Regulatory Guidelines for Companies Listed on the Shao Yiping, financial reporting procedures
Shenzhen Stock Exchange No.1 - Standardized Operation of Companies Listed on the Main Board, Rongsheng Yao Zheng, Yu Yi, • Communicate with the Company's external auditors
Petrochemical continues to improve the corporate governance structure. The Company establishes and enhances its Li Yongqing, Li • Appraise the internal auditors and their work
internal control system, standardizes corporate operations, constantly improves internal management requirements by Cai'e • Appraise the Company's internal controls
formulating the Internal Reporting System for Material Information and other policies. These efforts aim to achieve full
Audit • Review and supervise the existing or potential risks in the
coverage of the systems, refine the internal control system, and maximize the protection of the interests of shareholders, Company
stakeholders, and employees. Committee
The Company has established a governance structure which consists of the Shareholders' Meeting, the Board of Directors, • Focus on the overall business targets, and execute the basic
and the senior management. The Company has independent business and operational autonomy and operates process of risk management in all aspects of its management and
independently in terms of its business, assets, personnel, organization, and finance. During the reporting period, a total of Yu Yi, Shao Yiping, operation to establish a good culture of risk management
third-party law firm confirmed that the convening and corresponding procedures of the Shareholders' Meetings complied Jiongjiong, Li management strategy, risk financing measures, organizational
with the relevant laws and regulations, such as the Company Law of the People's Republic of China, the Rules on Cai'e function system for risk management, risk management
Shareholders' General Meetings of Listed Companies, the Shenzhen Stock Exchange Detailed Rules for the Risk Control information system and internal control system to provide
Implementation of Online Voting of Listed Companies at the General Meeting of Shareholders, as well as applicable Committee reasonable assurance for the overall targets of risk management
normative documents and the Company's Articles of Association. The Shareholders' Meeting of the Company adopted on-
site voting and online voting, and voting is carried out by registered voting, and all the proposals of the general meeting of
shareholders have been passed, and there is no selective information disclosure. • Analyze the composition of the Board of Directors and define the
requirements for Directors
We place emphasis on the diversity in gender, professional background and expertise of our Board of Directors. By the Shao Yiping,
• Establish criteria and procedures for the selection of Directors
end of the reporting period, the Company had 9 Directors, including 1 foreign Director and 8 domestic Directors, and 3 of Yao Zheng, Yu Yi,
• Conduct an extensive search for qualified Director candidates
the Directors were female. Among the current Directors, 3 are professors, and 4 hold master's degrees. Our Directors have Li Shuirong, Yu
Conduct a formal review of Director candidates nominated by the
professional background in a variety of disciplines including finance, law, and economics, and they all have rich Fengdi
•
Board of Directors
experience in the industry, ESG management and risk management. They are capable of reviewing the Company's Nomination
Committee Finalize the candidate list for voting on the Shareholders' Meeting
decision-making in a more inclusive, long-term, and international perspective, effectively improving the Company's
•
internal governance efficiency and laying the cornerstone for the stable and sustainable development of the Company.
The information on Directors and senior management is detailed in the 2025 Annual Report.
Yao Zheng, • Formulate criteria for the appraisal of Directors and senior
The Strategy and Sustainability Committee, the Audit Committee, the Risk Control Committee, the Nomination Shao Yiping, Yu Yi, management and conduct the appraisal
Committee, and the Remuneration and Appraisal Committee were instituted under the Board of Directors. Each Li Shuirong, Yu Formulate and review the remuneration policies and schemes for
Remuneration
•
committee assumes its responsibilities and collaborates with the others to ensure the Company's high-quality Fengdi Directors and senior management
and Appraisal
development.
Committee
Information Disclosure Management
Note: The chairpersons of the committees are shown with their names in bold.
With great importance attached to information disclosure management, we strictly comply with relevant regulatory
Review the Company's major business strategies
Li Shuirong, requirements, and actively fulfil our disclosure obligations, to ensure the compliance and transparency of information
•
Supervise and verify the Company's major investment decisions
Shao Yiping, disclosure. We have formulated internal information disclosure management systems such as the Management System
•
Review and supervise the Company's ESG matters, and regularly
Yao Zheng, Yu Yi, •
for Information Disclosure Affairs, the Information Insider Registration Management System, and the Accountability
report to and be subject to the supervision of the Board of
Strategy and Li Yongqing Directors System for Major Errors in Information Disclosure in Annual Reports, and prepared the Specification for Announcement
Sustainability Format to regulate information disclosure standards and reporting procedures and ensure that the information disclosed
Committee is true, accurate, and complete. In 2025, there were no major negative reports or doubts about corporate social
responsibility in the public media. For details of the Company's profit distribution, please refer to the 2025 Annual Report.
In the future, the Company will continue to improve the information disclosure mechanisms, and enhance the quality of
assumed by the Audit Committee of the Board of Directors.
communication, to give back to investors in gratitude for their trust and support.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Investor Relations Management Improving Audit Procedures
Guided by the idea of "respecting and rewarding investors", we continuously refine the investor relations management.
The Company constantly improves its internal supervision system, performs annual all-employee audits, and regularly
We have formulated the Investor Relations Management System and appointed dedicated management personnel. We
studies and deploys key business ethics tasks, to achieve full coverage of business ethics audits of the Directors, senior
effectively safeguard the rights and interests of investors through multi-channel and holistic communication and
interaction with investors. The Company regularly hosts performance briefings and Investor Reception Day events, management and all employees within the Company. The work plan for audit is arranged in 3 stages of "Planning and
collaborates with institutions for on-site research, convenes teleconferences, and actively participates in collective preparation - Implementation and reporting - Feedback and reevaluation" as detailed below:
Investor Reception Day events in the jurisdiction and institutional investment strategy summits. The Company has set up
an investor hotline and responds to investors' enquiries through the Shenzhen Stock Exchange's IRM platform to ensure
daily communication with investors. Through practical and sufficient communication and dialogues, the Company has
built a positive image in the capital market and deepened the capital market's understanding of the Company.
The Inspection Department formulates the annual audit work plan at the beginning of each
year and submits it to the Chairman of the Board of Directors for approval. The scope of
Business Ethics Management audit covers procurement, sales, production, technology, safety and environment, human
resources, business ethics and other aspects of Rongsheng Petrochemical and its
subsidiaries. The Inspection Department arranges the audit projects based on the annual
Business ethics is an important cornerstone for the Company's long-term stable development. The Company strictly
work plan, formulates the work proposals, assigns the auditors and defines audit period. In
complies with the Anti-Money Laundering Law of the People's Republic of China, the Anti-Unfair Competition Law of the
addition, it also determines the entities to be audited, ensuring that all operating sites and
People's Republic of China, and other laws, regulations and normative requirements. The Company has formulated Planning and business lines of Rongsheng Petrochemical and its subsidiaries receive audits including
internal policies such as the Regulations on Employees' Integrity Practice and the Business Ethics Policy, to enhance business ethics audits at least once a year. In particular, we set the standards and plan for
preparation
business ethics management. The Company strictly regulates the conduct of employees and urges them to consciously the business ethics audit based on the Business Ethics Policy of Rongsheng Petrochemical,
stage
abide by social and professional ethics. We adhere to compliant operation and fair competition, prohibiting any form of to ensure the implementation effectiveness of the policy.
commercial bribery, money laundering and monopoly. The Company expressly prohibits employees from engaging in any
activity that may constitute unfair competition, such as business defamation, false publicity, and improper acquisition or
use of business opportunities. Moreover, we strictly require all employees and suppliers to abide by business ethics.
During the year, the Company did not experience any litigation or significant administrative penalties resulting from
commercial bribery, corruption or unfair competition.
The Inspection Department carries out regular audits, including business ethics audits, in
accordance with the work plan, and organizes special business ethics audits of the
Establishing Management Framework Company's key projects or whistleblowing information. After completing the business ethics
audit, the Company will promptly issue an audit report and put forward suggestions for
The Company has incorporated business ethics risk assessment in the scope of key risk identification and risk assessment. management optimization. If any issue to be rectified is found in the business ethics audit,
Moreover, the Company regularly identifies business ethics-related risks and maps out specific response measures. To Implementation
the relevant subsidiary is required to rectify the issue in a timely manner and subject to the
address business ethics risks in key areas, the Company not only conducts internal audits and special inspections, but and reporting
progress tracking inspection of the Inspection Department.
also formulates and implements targeted preventive measures. For major business ethics issues identified, the stage
Company's Inspection Department is responsible for rectifying findings, while the Strategy and Sustainability Committee
of the Board of Directors is responsible for monitoring and managing the progress of rectification in a timely manner.
The Inspection Department re-inspect the implementation of the rectification measures
Strategy and Chaired by the Chairman of the Board of Directors, the committee is fully upon receiving feedback from the inspected entities on the rectification of their business
•
responsible for supervising business ethics and anti-corruption matters, holding
Sustainability ethics issues. It summarizes the results of annual business ethics audits at the end of each
regular meetings to formulate and implement work policies related to business
Committee under the ethics, receiving reports from management on business ethics risks and year and submits the results to the meetings of the Board of Directors and the senior
Board of Directors corresponding measures, and conducting timely reviews of overall work progress. management of Rongsheng Holding under the supervision of the Strategy and Sustainability
Feedback and Committee. Rongsheng Petrochemical and its subsidiaries are required to complete a
reevaluation special performance evaluation in respect of business ethics issues every year, with the
stage evaluation results incorporated in the annual assessment of each subsidiary.
• It takes the lead in the specific anti-corruption management and the building of a
clean enterprise.
By conducting business ethics audits, it assesses the performance of Rongsheng
Inspection
•
Petrochemical and its subsidiaries in business ethics and enforces accountability
Department accordingly.
• It regularly reports the progress of business ethics management to the Strategy and
Sustainability Committee and the Audit Committee.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Diagram of Inspection and Audit Procedures Business Ethics Training
Guided by the Company's Business Ethics Policy and other policies, we have established a robust business ethics training
system, and strictly carry out all training tasks. In addition to requiring Directors, senior management and all employees
Inspection Department Entity being inspected
to complete internal business ethics and anti-corruption training annually, the Company also completes various external
Formulate work plan and Scope of Inspection training on business ethics in accordance with regulatory requirements.
Planning and Rongsheng Holding and
submit it to the Chairman
preparation stage its subsidiaries
of the Board for approval
In 2025,
The Directors of the Company participated in 2 internal training sessions, covering business ethics,
Safety & Environment
Other relevant issues
•
Human Resources
insider trading and other related issues.
Business Ethics
Procurement
Production
Technology
• The Company conducted training on business ethics for all employees. All employees of Rongsheng
Sales
Holding and its subsidiaries (including part-time and dispatched employees) watched a training video
about integrity education through "Rongsheng Learning and Testing Platform". This move further
improved the overall business ethics of our employees and helped them form correct occupational
values.
• The Company arranged special training, "Learning from Cases", for middle and senior technical
management personnel and employees in key positions. We invited officers from the Economic Crime
Implementation and Organize specialized Key projects and Investigation Brigade of the Xiaoshan District Public Security Bureau in Hangzhou to share typical cases
reporting stage inspection reported information
of clean practices, and a total of more than
the live streaming online.
Issue inspection report
and provide suggestions Implement rectification • The Company organized on-site warning education and training, with a total of
for rectification
commercial segment visiting the Zhejiang Provincial Law and Discipline Education Base for learning.
Additionally, 40 key personnel from the Group were selected to attend court hearings on duty-related
Feedback and Verify rectification Report rectification crimes.
reevaluation stage outcomes outcomes
Recapitulate inspections Included in annual During the year,
conducted this year appraisal of subsidiaries
the Company's anti-bribery and anti-corruption training covered 19,849 employees
which included
During the reporting period, the Inspection Department completed 29 audit projects across all operating sites and
achieving a coverage rate of
business lines of Rongsheng Petrochemical and its subsidiaries. Among these, 6 audit projects were related to business
ethics and anti-corruption, resulting in 6 audit reports issued. The rectification rate for identified issues reached 100%.
The Company will continue to advance business ethics audits and closely monitor the level of business ethics management officers directors
management.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Reporting Mechanism
To regulate the performance of duties and promote ethical practice, the Company has established an integrity reporting
mechanism to receive and process reports from employees and the public. We accept reports on corruption, fraud,
neglect of duty, and behaviors that harm our regular production, operation, and management activities.
The Company's Inspection Department is in charge of the work related to reporting on integrity. The Inspection
Department assigns dedicated personnel to manage the Reporting Platform and establishes a report handling group,
which accepts reports from individuals either with real-name or anonymous disclosure. After receiving a report, the report
handling group conducts a preliminary assessment. Based on the Inspection Department's scope of responsibility, the
nature of the reported issue, the severity of the violation, and the feasibility of verification, the case is categorized and
addressed accordingly. Following an initial verification, a handling proposal is formed. For reports submitted with real-
name identification, we provide timely feedback on the handling results to the whistleblower and maintain further
communication regarding updates on the matter.
Special training on "Learning from Cases" Visit to the law and discipline education base Giving feedback on the
Report
handling result Archiving
registrar
We require all suppliers and customers who participate in the quoting and bidding activities on the e-commerce
platform3 to sign the Rongsheng Holding E-Commerce Platform Letter of Commitment in advance, which includes the
Company's integrity requirements for suppliers, their employees and customers. The Company incorporates business Report Handling according to
Report Report Responsible
Whistleblower handling internal procedures
ethics management requirements and channels for supervision and reporting into supplier contracts. Additionally, recipient registrar department(s)
group (following up if necessary)
suppliers are required to sign a Supplier Commitment Letter concurrently with the contract execution, through which the
Company clarifies its business ethics standards, thereby strengthening the ethical oversight of key business activities such Investigating and
Investigation handling the reported
as procurement and sales. task force matter and releasing the
investigation report
Discussing how to
Submitting the Receiving the Registering the
handle the reported
report report report
matter
Reporting process
The Company continuously improves reporting channels. In 2025, as applications within the "Rongsheng e-Office"
platform became widely adopted among employees, the Company integrated a Compliance Supervision Reporting
Platform into "Rongsheng e-Office". Employees can now directly access and locate the reporting platform through
"Rongsheng e-Office" to submit reports. We have established an information-based audit management system that not
only allows for supervision of the audit process, maintains the confidentiality of audit information, and enables
verification of audit outcomes, but also provides professional guidance to the Inspection Department, thereby effectively
improving work efficiency and accuracy.
Hotline Visiting E-mail WeChat Mailing
Reporting Reception
channels
The Company strictly prevents the leakage of reporting information, and implements the whistleblower protection
mechanism. The Company has formulated the Requirements for Reporting Confidentiality and Whistleblower Protection,
and the Human Resources Management Regulations, specifying the principle of handling the reported issues, and
measures for reporting confidentiality and whistleblower protection. We strictly prohibit all forms of retaliation. Once any
retaliation behavior is found, it will be strictly handled in accordance with the Implementation Measures for Rewards and
Punishments for Employees of Rongsheng Holding Group Headquarters. Access to the information about the
whistleblowers and contents of their report are limited to the Inspection Department internally. If the report involves
significant matters, its access will be limited to the investigation task force. We have implemented tiered access controls
and reinforced security measures within our audit management information system, effectively protecting the
platform. whistleblowers and their close relatives at the source of information.
Conserving Ecology
and Unleashing
Green Potential
Rongsheng Petrochemical integrates the philosophy of green
development into its corporate strategy and regards environmental
protection as a critical foundation for long-term growth. The
Company strictly adheres to environmental compliance
requirements, delves into new areas of low-carbon emission
reduction and resource management, actively responds to climate
change, and continuously fulfills its corporate environmental
responsibilities. During the reporting period, we did not experience
any major environmental protection accidents, major complaints
regarding environmental protection, major environmental
administrative penalties, or any other environmental issues.
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Report Message Petrochemical Compliance Ecology and Safety Together
Enhancing Environmental Management In accordance with the Professional Assessment Rules for HSE Management and other environmental performance
assessment policies of the Company, we have established a target responsibility system and a performance assessment
system, linking environmental performance with managers' remuneration. In addition, we inspect and assess each
We continuously improve our environmental management system and strictly abide by the Environmental Protection Law
department monthly for purpose of implementing the Company's supervision and inspection.
of the People's Republic of China, the Law of the People's Republic of China on Environmental Impact Assessment and
other laws and regulations, ensuring that all operational activities meet environmental regulatory requirements. Based on Process of environmental performance assessment
the characteristics of their operation, each subsidiary has developed internal policies including the Environmental
Performance
Protection Management Accountability, the Management Measures for Environmental Protection Facilities, and the Plan Target Setting Regular Assessments
Rewards
for Environmental Emergencies. These policies are designed to effectively manage and limit environmental impact arising
from their operational activities, thereby advancing the building of a resource-conserving and environment-friendly green Each subsidiary determines the assessment The subsidiaries' At the end of the
enterprise. indicators, including water, electricity, progress towards target year, cash rewards
steam and other resource and energy completion is collected will be granted
consumption data, as well as waste gas, and calculated on a based on the
wastewater and other emission data. monthly basis. appraisal results.
Environmental Compliance Management
Each year, the Company develops training plans on environmental management to enhance the capabilities of the
Strategy and Sustainability Committee and management in fulfilling their environmental management responsibilities.
? Governance Structure
These capabilities mainly include:
Level Role
Expertise in environmental management Environmental risk assessment and
management ability
The Strategy and Sustainability Committee is responsible for: Be possessed of the expertise in environmental Be possessed of the knowledge of methods and
• Reviewing and supervising the Company's strategic planning, policy formulation, target science, pollution control and other disciplines, and tools for assessing environment-related risks and
setting and implementation management in respect of environmental protection; knowledge of domestic and international opportunities to assess the impact of
• Reviewing and supervising the Company's environmental risk assessment, environmental protection policies and regulations. environmental factors on the Company's
Governance Level environmental performance, environmental information disclosure and other related production and operations and the external
matters; environment, and formulate risk and opportunity
management plans.
• Ensuring that the Company's management system of environmental risks and
opportunities is in line with the strategic direction, regulatory requirements and
stakeholder expectations. Ability to communicate and coordinate
Ability to plan and implement
environmental strategy environmental issues
The HSE Management Group/HSE Committee is responsible for: Formulate and implement action plans for pollutant Communicate and exchange information with all
• Building and improving the framework of environmental management policies; reduction targets, environmental protection levels within the Company and external
technology development, resource efficiency stakeholders on environmental issues, and
Setting annual targets, work plan and management evaluation plan in respect of
improvement and adaptation to environmental cooperate with external institutes to promote the
•
environmental management;
changes, and be possessed of the expertise in implementation of the Company's sustainable
• Improving the Company's supervision and inspection system for environmental environmental management. development projects, ensure the support and
Management Level management and carrying out supervision on a regularly basis; coordination for action plans, and jointly push
• Inspecting the implementation of environmental hazards identification, remediation ahead environmental targets.
and preventive measures;
Organizing the development of the Company's plan for environmental emergencies and
? Response Strategy
•
carrying out the Company's emergency drills;
Regularly reporting to the governance level on environmental management.
Rongsheng Petrochemical actively conducts the identification of risks and opportunities in environmental compliance
•
management, develops response measures for its core risks and opportunities, and incorporates such measures into the
The executive level of the Company is responsible for: environmental management system throughout its daily production and operation activities. The Company further
elevates the weighting of environmental management-related factors in corporate decision-making. In the decision-
• The daily management of environmental protection;
making process of major corporate matters including new project construction, production upgrading and retrofitting,
Routine environmental monitoring, and contingent monitoring for emergencies and
Execution Level
•
projects; the Company fully takes potential environmental protection risks and opportunities into account, to effectively mitigate
potential risks and capture development opportunities arising from environmental management. In 2025, the Company
• Investigating and analyzing abnormal data and taking corrective measures;
allocated RMB 219.90 million towards environmental management and protection. Please see Section IV, Part 15
Reporting the results of environmental protection efforts to management.
"Disclosure of Environmental Information" in the Company's 2025 Annual Report.
•
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Description of major Time frame of Impact description Response measures Description of major Time frame of Impact description Response measures
environmental impact environmental impact
management risks and management risks and
opportunities opportunities
Risks Opportunities
Strengthen environmental monitoring:
Rongsheng Petrochemical has built an The Company continuously
integrated environmental monitoring system Rongsheng Technical innovation: Invest in R&D
deepens environmental
to conduct real-time monitoring of the Petrochemical can and introduce advanced
compliance management and
The Company's discharge of various pollutants, ensure that actively manage the environmental protection
actively implements
production and emission indicators comply with all generation and disposal technologies to improve the efficiency
Rongsheng environmental management
operational processes environmental protection standards, and of various pollutants and of pollutant treatment and reduce
Petrochemical may initiatives, to reduce the
may generate various promptly activate disposal measures in the waste by improving waste generation.
generate solid waste and negative environmental
pollutants that are event of emission exceedance, so as to technologies and
pollutants such as waste Long term impacts of operational Policy utilization: Keep abreast of
harmful to the effectively control environmental impacts. production processes,
gas and wastewater activities. The Company may government incentives in
environment and which may reduce the
during its production Strengthen compliance management: play an exemplary role in the environmental protection, such as tax
human health. If these Company's exposure to
and operation. Failure to Establish a robust environmental compliance sustainable development of incentives and subsidies, dynamically
pollutants are not policies on
properly dispose of such management system to ensure that the chemical industry and optimize the Company's strategies,
properly treated, or if environmental
issues may result in production and operation comply with the provide a valuable reference and fully leverage the empowering
emergencies such as protection and lower
increased compliance latest environmental regulations, and regularly model for the industry's effects of relevant policies.
Long term fires, explosions, or compliance costs.
and pollutant disposal conduct internal compliance reviews to overall green transition.
leaks occur, they may
costs due to violations of reduce costs and legal risks associated with
contaminate the soil,
relevant environmental violations.
air, or water in the
protection laws and
vicinity of the facility, Carry out emergency management: In light
regulations, or give rise
resulting in the death of actual operation, the Company conducts The development of a circular Collaboration projects: Work with
to legal expenses from Develop circular
of wildlife and environmental risk identification and economy can curb Rongsheng research institutes, universities and
relevant litigation, and economy that gives full
adversely affecting the assessment, and strengthens risk prevention Petrochemical's demand for partners in the industry to carry out
may also exert adverse play to resources, to
daily lives and health and control measures for key areas. The resources, minimize environmental protection projects,
impacts on the reduce Rongsheng
of residents in the Company continuously improves internal environmental exploitation explore approaches for the resource
Company's reputation. Petrochemical's Long term
surrounding policies such as the Plan for Environmental from its operations, lower utilization of waste, and accelerate the
communities. Emergencies, clarifies the emergency production and
environmental impacts, and innovative R&D and application of
organization structure and response operation costs, or
play an exemplary role in the environmental protection
procedures, and regularly organizes generate additional
sustainable development of technologies through the sharing of
emergency drills to enhance the capability to benefits.
the chemical industry. resources and technologies.
handle environmental emergencies.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
? Impact, Risk and Opportunity Management Case: ZPC conducted integrated management system audit
Rongsheng Petrochemical has established a standardized environmental risk and opportunity management system, and
all subsidiaries regularly carry out the identification and assessment of environmental risks and opportunities. According ZPC takes the environmental management system as a key pillar for its sustainable operation, and regularly
conducts system audits. In June 2025, under the supervision of external professionals from Beijing Sanxing
to the Environmental Management Systems (GB/T 24001-2016), the Company has developed the Management Procedure 9000 Certification Body Co., Ltd., ZPC set up a special audit team together with its internal auditors. The team
for Environmental Factor Identification and Risk Evaluation. A cross-functional team consisting of professionals with rich conducted a systematic audit of all business departments and operation units focusing on key links including
experience in environmental factor evaluation and production management carries out relevant work. The Company the fulfillment of compliance obligations, environmental control of processes, emergency management,
adopts methods including environmental factor questionnaires, process flow analysis and material balance analysis to environmental performance monitoring, and rectification of non-conformities. For the identified issues, ZPC
identify environmental factors and relevant environmental impacts in operational activities, products and services, promptly advanced rectification, tracked implementation results, and took audit outcomes as the basis for
ongoing management improvement and optimization.
quantify the volume of risk substances, and assess production processes, emission points of various pollution sources,
environmental risk control levels and prevention and control measures. Taking into account the receptors affected by
environmental risks and opportunities, the Company determines the levels of relevant risks and opportunities, develops
corresponding response measures, and prepares the Assessment Report on Environmental Risks and Opportunities to Case: Yisheng Dahua conducted environmental management training
guide the Company's environmental risk and opportunity management.
This year, Yisheng Dahua, a subsidiary of the Company, carried out specialized training on environmental
The cross-functional team of each subsidiary establishes a risk and opportunity matrix based on the likelihood of management, which covered national laws and regulations including the Environmental Protection Law of the
occurrence and impact magnitude of risks and opportunities and determines the risk coefficients, to qualitatively classify People's Republic of China, as well as the Company's internal environmental management policies such as the
the identified risks and opportunities. In determining the risk coefficient, the cross-functional team assesses the Management Regulations on Environmental Protection and the Management Regulations on Environmental
Operation. The training reached a total of over 3,600 participants including employees and contractors, and
probability of impacts, risks and opportunities occurring within a certain period based on historical data, industry
strengthened the environmental management capacity and awareness of relevant personnel.
experience and other factors, and measures the magnitude and scope of environment-related risks and opportunities
from financial, operational, reputational and other dimensions.
? Metrics and Targets
For the identified environmental compliance management risks and opportunities, the Company clearly defines the
primary responsible departments, and formulates corresponding management measures or action plans, including
establishing management systems, optimizing the indicator system, setting environmental objectives, standardizing
production operation procedures, planning technical upgrading or facility retrofitting projects, and evaluating the
effectiveness of response measures or plans. The HSE management team or HSE committee at the management level of
each subsidiary defines the timeline for the implementation of management measures or action plans, and regularly
evaluates the results of the work to ensure the full implementation of such measures and plans. For detailed metrics and
targets, please refer to "Controlling Pollutant Discharge" and "Main Environmental Performance Indicators" in this
Chapter.
Environmental Management System
The Company attaches great importance to the proper operation of the environmental management system. In
accordance with the requirements of the ISO 14001 Environmental Management System, the Company has established its
environmental management policy, defined departmental responsibilities, promoted environmental management
measures, and improved the environmental emergency response plan. The Company has clearly defined the
performance appraisal requirements for environmental management, conducts annual full-process environmental audits
at all operational sites, cooperating with internal audit expert teams to inspect production site environments, waste
disposal, and the operation status of environmental protection facilities. Identified issues are rectified through closed-
loop corrective actions. Meanwhile, the Company continues to advance the certification of its environmental
management system. 100% of our subsidiaries in operation have obtained ISO 14001 Environmental Management System
certificate. Companies that have obtained ISO 14001 certification undergo one or two professional third-party compliance
Environmental management system certificates obtained by the Company and some of its subsidiaries
audits annually to ensure the sound operation of the environmental management system.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
In 2025 Responding to Climate Change
Environmental Number of major Proportion of Proportion of noise Environmental As a leading enterprise in the petrochemical industry, the Company is deeply aware that it bears great obligation to
protection environmental pollutant discharge controlled up to protection respond to climate change and the national strategic deployment of "carbon peaking and carbon neutrality" goals. The
investment pollution accident up to the standard the standard training coverage Company actively adopts effective carbon management measures, carries out energy conservation and emissions
reduction practices across production and operations, and explores pathways for carbon resource utilization. Through
RMB concrete actions, the Company contributes to the achievement of the national "carbon peaking and carbon neutrality"
million goals and fulfills the corporate responsibility for green development.
Governance Structure
Environmental Impact Assessment and Audit
The Strategy and Sustainability Committee under the Board of Directors of the Company coordinates and oversees the
Rongsheng Petrochemical focuses on the environmental impact management of its production and operational activities, Company's ESG governance practices and performance, including climate change issues. In addition, the committee
and controls the impact of its projects on the surrounding ecological environment through systematic environmental
reviews the Company's climate-related objectives and strategies, evaluates the management of impacts, risks and
impact assessment (EIA) work. We incorporate environmental factor identification and environmental monitoring
opportunities related to climate change, and monitors the progress toward climate-related targets and the
throughout the project design, construction, and operation processes. We have also submitted our environmental
implementation of related efforts. The committee convenes meeting at least once a year to hear management's report on
monitoring data and environmental impact assessment results to relevant government agencies promptly to urge
ourselves to continuously advance our environmental management and data system construction. All our new management of impacts, risks, and opportunities related to climate change, and makes suggestions. The committee
construction, renovation, and expansion projects have passed environmental impact assessments, which cover takes the above responsibilities to ensure that the Company's climate change response strategy is aligned with the
environmental hazards, ecological impact assessments, water and air quality analysis, and noise monitoring. Company's strategic orientation, regulatory requirements and stakeholder expectations.
The Company actively cooperates with the national, provincial and municipal bureaus of ecology and environment on
external environment audit, rectifies identified issues promptly and investigates similar ones. The HSE Department Climate governance structure
verifies the outcome of rectification and then reports to the administrative authority on ecology and environment.
The Company formulates internal inspection plans and conducts internal environment audit which focus on aspects such
as the operation of environmental protection facilities, the compliance of the discharge of "three wastes4", and the
operation of the environment-emergency-related facilities. Each subsidiary actively arranges environmental inspections
of different frequencies and a comprehensive environmental emergency drill annually in light of the importance of Board of Directors
equipment, facilities, and production processes to improve environment management by combining internal and
external checks. Governance Level
In addition, in accordance with the requirements of the Emission Permit, the Company develops an environmental
monitoring plan. Moreover, for key pollution sources, the Company installs automatic online monitoring systems, to
realize online monitoring and interconnection with government platforms. We regularly submit pollution source Strategy and Sustainability Committee
monitoring data, prepare the report on the implementation of the emission permit, and disclose environmental
information to the public, accepting the supervision of the government, the public and stakeholders.
Reporting path
Ecological Environment Protection
Management Level Climate-related leading group
Attaching great importance to ecological environment protection, Rongsheng Petrochemical spares no efforts to realize a
harmonious coexistence of industrial development and ecological environment protection, contributing to the
construction of a green and sustainable industrial park. The Company is located in an industrial park. The environmental
assessment demonstrates that our operations do not have significant impact on the surrounding ecosystem and
biodiversity. When taking water from/discharging wastewater to the sea, the Company strictly follows the requirements of
the environmental assessment. We survey the density of the fish population in the seawater intake and discharge area, Execution Level Relevant departments
calculate the possible biological losses caused by the project implementation, and take corresponding biological
compensation measures accordingly. Every year, the Company organizes and implements stock enhancement and
release initiatives, with a view to actively replenishing and restoring marine biological resources, and safeguarding the
stability and sustainability of the marine ecological environment in the surrounding waters of its projects.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Each subsidiary of the Company has set up a climate-related leading group at management level. Based on the carbon Major climate-related impacts and management measures
reduction requirements of the chemical industry, the "carbon peaking and carbon neutrality" action plans of the
provinces and municipalities where the Company operates, the layout of the Company's industrial portfolio, and the
current state of carbon management technologies, the leading group coordinates the planning, implementation, Type of impact and description Management measures
evaluation and supervision of climate-related tasks, and reports to the Strategy and Sustainability Committee on a regular
basis.
• Energy audit and efficiency improvement:
At the execution level, the Company defines responsibilities and tasks in response to climate change for relevant Reduce energy consumption and GHG
subsidiaries and departments, requiring them to break down the Company's carbon emission management goals into emissions by conducting energy audits,
their own work objectives and task lists to carry out key initiatives. They are required to report regularly to the leading refining production processes, phasing out
group the information on achievements and progress of climate-related initiatives, trends of GHG emissions data, high energy consumption equipment, and
innovations and applications in low-carbon technologies, monitoring and early warning information for climate-related Chemical production introducing energy-saving technologies and
disasters, and other relevant matters. generally leads to high equipment.
energy consumption Energy recovery: Promote thermal recovery
Besides, the Company engages external professional consultants with climate expertise to provide specialized advisory
•
and may accelerate system to save energy.
services on managing climate-related risks and opportunities. These consultants also conduct relevant training to assist global warming, while
the Strategy and Sustainability Committee and management in enhancing their oversight and management capabilities Negative GHG Clean energy substitution: Promote the use
certain production •
regarding climate-related affairs. These capabilities mainly include: impact emissions of clean energy sources such as wind and
processes featuring
high energy solar power to accelerate the replacement of
consumption will also fossil fuels in our operations, thereby
Be possessed of the expertise in environmental science, energy management, etc.,
Expertise in climate-related pose adverse impact reducing carbon dioxide emissions at the
and knowledge of domestic and international policies and regulations on climate
disciplines source.
change. on the environment.
• Carbon emission monitoring and
Apply risk and opportunity assessment tools to perform in-depth analysis on reporting: Strengthen monitoring and
Risk assessment and management of GHG emissions to ensure
impacts of climate change on the operations and external environment of the
management capability
Company, and formulate targeted risk and opportunity management strategies. compliance with environmental protection
standards.
Set emission reduction targets based on the Company's existing business and
Strategy planning and future plan, actively promote the development and application of low-carbon
execution capability technologies, strive to improve energy efficiency, and create action plans for
Setting emission reduction targets: Set
adaptation to climate change.
•
clear carbon emission targets, and reduce
GHG emissions by developing and
Effectively communicate and share information with all levels of employees within implementing actionable plans.
the Company and external stakeholders on climate-related issues, to win the
Communication and support and collaboration of all parties involved for the action plans. Actively Promote the low- • Exploring low-carbon technologies:
coordination capability cooperate with external organizations to advance the implementation of low- carbon transition of the Continuously invest in R&D, promote low-
carbon emission reduction initiatives, and work together with them to achieve industry by setting carbon production process, actively deploy
climate targets. Application
Positive carbon emission carbon capture, utilization, and storage
of clean
impact targets, investing in (CCUS) technologies, and explore carbon
technologies
renewable energy and dioxide removal (CDR) solutions.
Response Strategy exploring low-carbon
• Cross-field cooperation: Carry out cross-
technologies.
field cooperation with universities and
As a pillar industry of the national economy, the petrochemical industry faces a number of challenges in response to research institutes on innovation of
climate change, such as pressure on carbon emissions, market volatility and the complexity of resource management technology and production models in
arising from energy transition. However, technological innovation and clean energy development bring new opportunities relation to low carbon and clean energy, to
to the petrochemical industry. Under this macro situation, we integrate climate considerations into our strategic planning, accelerate low-carbon business transition.
comprehensively assess the impact of our business on climate change and identify the risks and opportunities to achieve
sustainable development and contribute to the green and low-carbon transition of the industry.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
With reference to the Shared Socioeconomic Pathways (SSPs) and the climate scenarios published by the Network for the Company's product portfolio and technology development capabilities. To address these risks, the Company will
Greening the Financial System (NGFS), as outlined in the Sixth Assessment Report of the Intergovernmental Panel on closely monitor policy developments, enhance carbon management practices, advance energy conservation and
Climate Change (IPCC AR6), the Company integrates a range of critical uncertainties—including evolving policy emissions reduction across production and operations, proactively engage in clean energy deployment and the carbon
landscapes, market dynamics, technological developments, economic conditions, and environmental factors—into the trading market, and make thorough preparations for the sector's upcoming inclusion in the national carbon emissions
assessment framework. Grounded in the actual production and operational context, the Company establishes reasonable, trading scheme. The Company will also continue to optimize R&D resource allocation and product portfolio, enhance
scenario-based assumptions to evaluate the resilience of its corporate strategy, business model, and other key aspects to communication with stakeholders, and actively respond to market expectations.
climate change over the short, medium, and long term. Based on this analysis, the Company formulates phased
adaptation and mitigation strategies accordingly. The Company updates the climate-related scenario analysis every five years in principle, aligned with the strategic
planning horizon. Should significant changes occur—such as business model transformation, major acquisitions, material
Based on the assessment, under reasonable and scenario-consistent assumptions, physical climate risks are expected to divergence between prior assessments and actual conditions, or invalidation of previous assumptions—the Company will
have a limited impact on the Company, whereas transition risks may present a moderate level of impact. As China's initiate ad hoc analyses as needed to continuously monitor our climate resilience.
national emissions trading scheme (ETS) continues to expand sectoral coverage, the government has initiated
preparatory work to include the chemical and petrochemical industries. Consequently, the Company anticipates The major climate-related risks and opportunities identified by the Company and our response strategies are set out in
increasingly stringent regulatory requirements related to carbon emissions. Furthermore, amid the broader societal shift the following table.
toward a green, low-carbon economy, market participants are placing greater emphasis on corporate environmental and
climate strategies, driving rising demand for low-carbon and clean products. This trend places heightened demands on
Major climate-related risks, response strategies, and financial impacts
Risk exposure under different scenario assumptions
Time
frame
Type of risk and description High emission scenarios Low emission scenarios Response strategy Financial impact5
of
impact
The government has initiated
preparatory work to include the In 2025, including expenditures on the purchase of green
chemical and petrochemical sectors in Continuously pay attention to the update of policies and
electricity and green electricity certificates (GECs), the Company's
•
the ETS and continues to introduce regulations to ensure that the Company's operation is in line
operating cost was RMB 270,923.59 million. For details, please see
increasingly stringent environmental with the latest requirements.
Section VIII, Part 7 "Consolidated Financial Statement Items" –
regulations and emissions reduction Enhance carbon emissions data accounting and strengthen Note 40. Operating Income and Operating Costs in the
targets. The Company must adapt to
•
carbon asset management capabilities. Company's 2025 Annual Report.
these evolving policy requirements by
investing in equipment retrofits, Vigorously advance energy-saving and consumption- As the chemical and petrochemical sectors are incorporated into
Transition Long
•
Policy risk technological upgrades, and capability Low Low Medium Medium High High reduction technology retrofits and project implementation, the national carbon market, continued reductions in carbon
risks term allowances and rising carbon prices could lead to steadily
enhancement. The Company also accelerate the deployment of clean energy, and control
needs to strengthen the carbon carbon emissions. increasing costs for carbon allowance procurement. At the same
accounting capacity and explore time, the Company may need to increase investments in low-
carbon asset management and • Plan for our business in the carbon trading market in advance carbon technologies and equipment upgrades to meet emissions
market-based trading mechanisms to to ensure our compliance during contract performance. compliance requirements, resulting in additional capital
meet ever-tightening compliance expenditures. Furthermore, the government may introduce
Explore key low-carbon and negative carbon emission
stricter environmental restrictions or prohibitions, potentially
•
obligations. Failure to do so may technologies to further unlock emissions reduction potential.
expose the Company to risks such as triggering asset impairments or disposal-related costs.
fines or production restrictions.
still in the early stages of development and subject to significant uncertainty. Moreover, the relevant financial impacts cannot be separated from existing
financial statement line items. Therefore, at this stage, the Company primarily adopts a qualitative disclosure strategy.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Risk exposure under different scenario assumptions
Time
frame
Type of risk and description High emission scenarios Low emission scenarios Response strategy Financial impact4
of
impact
In 2025, including clean technology, the Company's R&D
expenditure was RMB 4,989.25 million. For details, please
refer to Section VIII, Part 7 "Consolidated Financial
The R&D and Statement Items" – Note 44. Research and Development
commercialization of low- Expenses in the Company's 2025 Annual Report.
carbon and clean technologies Climate-related technology R&D is characterized by high
Collaborate with external partners to jointly advance R&D in low-
Technical are subject to risks such as Long
•
Low Medium Medium Medium High High carbon and clean technologies and optimize the allocation of R&D investment, long development cycles, and significant
risk regulatory constraints and term uncertainty. Future technological advancements could
resources to control R&D costs.
technological limitations, render existing assets stranded or impaired, while
which may increase the unsuccessful R&D efforts may result in the expensing of
Company's R&D costs. R&D costs incurred. Additionally, project delays may lead
to cost overruns and compliance risks, which may give
rise to increased operating costs, heightened financing
challenges, and potential opportunity costs.
Transition
In 2025, including low-carbon product projects such as
risks Market attention to corporate EVA, the current-year increases in construction in
environmental reputation and progress for high-end new materials projects and the
product sustainability is ever- Jintang New Materials Project were RMB 5,147.67 million
increasing. Failure to meet and RMB 8,380.84 million respectively. For details, please
market demand for low-carbon, • Optimize the business portfolio of high-end new chemical materials see Section VIII, Part 7 "Consolidated Financial Statement
sustainable products or and new energy, promote industrial upgrading, and vigorously Items" – Note 12. Construction in Progress – (2) Changes
services may result in expand presence in high value-added products such as photovoltaic in Major Construction in Progress Projects During the
Long
Market risk diminished competitiveness. In Low Medium High Medium High High materials, engineering plastics, and degradable plastics to meet the Period" in the Company's 2025 Annual Report.
term
addition, the Company's failure market demands for clean energy products and services.
to meet the expectations of The ongoing low-carbon transition in markets may lead
capital market and other major • Strengthen communication with stakeholders. to declining revenues and loss of market share for
stakeholders in terms of products with higher carbon footprints, while intensifying
response to climate change low-carbon competition could exert downward pricing
may pose negative impact on pressure, adversely affecting revenue. In addition, future
our brand and reputation. carbon-related trade policies may increase the cost of
selling the Company's products in certain markets.
Formulate policies such as the Management Policy on Prevention of
In 2025, no extreme weather events were deemed to have
•
Flood, Typhoon and Drought and the Emergency Response Plan for
a material financial impact on the Company.
Extreme weather event risk Prevention of Flood, Typhoon and Drought, carry out comprehensive
risk surveys for extreme weather such as floods and typhoons, If the frequency of extreme weather events increases in
Extreme weather events such
formulate emergency response plans, and organize regular the future, direct damage to fixed assets and inventories
as floods and typhoons may
emergency drills to enhance the risk response capability of could result in higher capital expenditures for repairs and
damage plants, production
employees. replacements, as well as greater inventory write-off
lines, critical infrastructure,
Physical Short losses. Production disruptions caused by damage to
Acute risk and inventory. Such damage Low Low Low Low Low Low Optimize the layout of facilities, enhance flood and typhoon
facilities may adversely affect operating income. In the
•
risks can disrupt operations and term prevention designs, and reinforce critical equipment to reduce the
aftermath of such events, the Company could also face
lead to significant adverse impact of extreme weather on factories and production lines.
long-term asset impairments, employee relocation or
impacts, including direct
Develop distributed energy storage system and use uninterruptible compensation costs, and potential legal liabilities.
economic losses, facility repair
•
power supply (UPS), emergency power supply, and backup diesel Furthermore, more frequent disasters may lead to
costs, and expenses associated
generators to ensure continuous power supply for critical facilities. significantly higher insurance premiums and increased
with business recovery.
deductibles, adding to the Company's long-term
Entrust insurance company to conduct insurance due diligence, issue
operational burden.
•
risk survey report and purchase necessary commercial insurance.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Risk exposure under different scenario assumptions
Time
frame
Type of risk and description High emission scenarios Low emission scenarios Response strategy Financial impact4
of
impact
Risk of supply chain and
sales disruption
Extreme weather events
may damage
transportation • Strengthen long-term cooperation with suppliers,
infrastructure, disrupt establish a diversified supplier system and In 2025, no supply chain or sales disruptions were
logistics and freight reduce dependence on a single supplier. deemed to have a material financial impact on the
operations, and thereby • Apply digital technology to enhance supply chain Company.
adversely affect the supply visualization, and monitor logistics and If the frequency of extreme weather events
of raw materials and the inventory status in real time to cope with the
Short increases in the future, disrupting logistics across
Acute risk distribution of products. As Low Medium Medium Low Low Low impact of extreme weather events and other
term the Company's upstream and downstream supply
the Company primarily emergencies on logistics and raw material chains, it could lead to a decline in operating
relies on maritime supply. income, while ongoing fixed costs would further
transport for logistics,
Develop inventory management mechanism and pressure net profit. Supply chain disruptions may
typhoon-related •
establish backup stock to ensure that production also drive up procurement and alternative logistics
disruptions may impede
can be maintained in the event of supply chain expenses, further eroding profit margins.
the inbound supply of
upstream raw materials disruptions.
and hinder outbound
Physical product shipments, thereby
risks affecting normal
production and operations.
• Optimize the site selection strategy, give full In 2025, no risks related to changing climate
consideration to climatic factors, and avoid patterns were deemed to have a material financial
laying out new projects in high-risk areas. impact on the Company.
Risk of changes in climate
patterns • Upgrade heating, cooling, and temperature Long-term gradual changes in rising temperatures,
control systems to ensure stable operating higher sea levels, and shifting precipitation
Fluctuations in mean
temperatures for equipment and facilities. patterns may accelerate the aging of equipment
temperatures and rising sea
and infrastructure, potentially requiring the
levels may damage Enhance infrastructure design standards by
Company to shorten depreciation periods and
•
Chronic equipment and facilities Long implementing protective measures, such as
Low Low Low Low Low Low increase maintenance expenditures. Higher
risk and increase operating term coastal and riverside embankments or seawalls,
demand for temperature control and water
costs, while prolonged to strengthen the resilience of factories and
resources will also raise operating costs. To adapt
droughts may result in equipment against disasters and mitigate the
to these climate-driven environmental changes,
insufficient water supplies operational impacts of sea level rise.
the Company may need to incur defensive capital
and affect business
• Improve water resource management planning expenditures for facility reinforcement or
operations.
and enhance resilience to climate risks such as relocation. In addition, insurance premiums may
prolonged drought, so as to ensure the stability rise over the long term as insurers reassess
of business operations. climate-related risks.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Major climate-related opportunities, response strategies, and financial impacts
Opportunity exposure under different scenario
Time assumptions
frame
Type of opportunity and description Response strategy Financial impact
of High emission scenarios Low emission scenarios
impact
Adopting more efficient • Continuously refine the production
equipment and low-carbon, process to enhance the efficiency of
Resource environmentally friendly green Long resource utilization. In 2025, including photovoltaic EVA products, the Company's operating
Low Low Medium Medium High High income was RMB 308,622.32 million. For details, please see Section VIII,
efficiency technologies may enhance term
Increase R&D investments, and establish Part 7 "Consolidated Financial Statement Items" – Note 40. Operating
resource efficiency and reduce
•
partnerships with other enterprises and Income and Operating Costs in the Company's 2025 Annual Report.
operating costs.
research institutes to jointly carry out
climate change-related technology R&D, To enhance resource efficiency, the Company may continue to invest in
project promotion, etc. Develop new low- equipment and technology upgrades, which entails upfront capital
carbon and energy-saving products that expenditure but significantly reduces consumption of energy, water, and
meet environmental protection raw materials, thereby lowering operating costs. Such initiatives typically
Increasing R&D efforts in low- feature short payback periods. Moreover, improved energy efficiency
requirements, so as to improve the
carbon and environmentally helps reduce carbon emissions, mitigating exposure to carbon taxes,
competitiveness of products, e.g. the
friendly technologies and carbon trading costs, and potential compliance-related penalties.
Long release of rare-earth rubber products.
Market launching green, low-carbon Low Low Medium Medium High High Additionally, enhancing resource efficiency to lower operating costs may
term
products may enable the • Seize market opportunities by making strengthen the pricing power and overall competitiveness. The
Company to gain a competitive strategic investments in green industries Company's increased R&D and investment in green, low-carbon products
edge in the market. and low-carbon technologies with and technologies may create new revenue streams, generate a green
potential, such as investing in the premium, or enhance market share.
construction of solar power stations and
electric vehicle charging facilities.
In 2025, including photovoltaic construction projects, the Company's
current-year increase in construction in progress for utilities and
supporting facilities was RMB 17,204.37 million. For details, please see
With the growing demand for Section VIII, Part 7 "Consolidated Financial Statement Items" – Note 12.
clean energy, investing in and • Actively expand our presence in the new Construction in Progress – (2) Changes in Major Construction in Progress
developing new energy projects energy field, increase investment in the Projects During the Period in the Company's 2025 Annual Report.
(e.g. solar energy and wind Long R&D of clean energy technologies, and
Energy source Low Medium High Medium High High In the short term, the Company's clean energy projects require significant
energy) may reduce the term explore the development and application
Company's environmental of renewable energy sources such as solar capital expenditures and may lead to stranding and impairment of
compliance costs and enhance energy and wind energy. existing fossil fuel-related assets. Over the long term, clean energy entails
corporate reputation. virtually zero fuel costs, which could reduce the Company's operating
costs. Furthermore, large-scale adoption of clean energy can lower carbon
emissions from the Company's production and operations, thereby
reducing compliance costs.
Aligned with government policies In 2025, including policy subsidies related to energy-saving and low-
that incentivize green innovation, carbon projects, the current-year amount of the Company's other
the Company may qualify for • Optimize operational practices toward income was RMB 1,256.73 million. For details, please see Section VIII,
supportive measures, such as greater environmental sustainability and Part 7 "Consolidated Financial Statement Items" – Note 46. Other
subsidies, tax incentives, and efficiency, explore opportunities to align Income in the Company's 2025 Annual Report.
Incentive preferential financing, by Long energy-saving and low-carbon projects
Low Medium Medium Medium High High The Company will continue to advance energy-saving and low-carbon
policies adopting environmentally sound term with supportive policies, and actively
and efficient operational pursue government subsidies, tax projects, aiming to secure greater government policy support and
practices and developing energy- incentives, and other low-carbon policy thereby reduce operating costs. Meanwhile, as green and low-carbon
saving, low-carbon projects, benefits. transformation advances across society, financial institutions may
thereby reducing operating costs introduce more favorable policies for environmentally sustainable
and enhancing profitability. initiatives, which could further lower the Company's financing costs.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
In response to climate-related risks and opportunities, the Company has developed short-, medium-, and long-term Qualitative Assessment - Creating Risk Matrix
transition and response plans, and will continue to refine the strategic positioning, business direction, and resource
allocation in light of evolving regulatory requirements and industry trends. For details on the progress of the Company's
related plans, please refer to the "Metrics and Targets" subsection of this section, as well as sections "Reducing Resource The Company's cross-functional team collects and collates climate-related data such as energy consumption and
Consumption" and "Seizing Clean Technology Opportunities" of this chapter. GHG emissions, and communicates with suppliers, customers, investors, communities and other stakeholders, to
identify potential climate-related risks and opportunities from different perspectives. Based on the likelihood of
occurrence and the magnitude of impact of risks and opportunities, the Company creates a risk and opportunity
The Company is focused on improving energy efficiency and optimizing production matrix. The identified risks and opportunities will be qualitatively categorized after the cross-functional team
In the short processes, advancing energy-saving technology retrofits and equipment upgrades to reduce determines the risk coefficients through discussion. The Company assesses the probability of impacts, risks and
term operating costs and lower carbon footprint. Relevant energy-efficiency projects are being opportunities occurring within a certain period based on historical data, climate model projections, industry
implemented according to annual plans. experience, etc. On this basis, the Company assesses the likelihood of occurrence of climate-related risks and
opportunities. Besides, the Company measures the impacts of climate-related risks and opportunities from various
aspects, such as finance, operation and reputation.
The Company will expand renewable energy initiatives, increase investment in clean energy,
In the medium and drive technological innovation to progressively optimize the energy mix and reduce
term
reliance on fossil fuels. Quantitative Assessment - Model Data Simulation
We use statistical model, financial model and other models to conduct data simulations and stress tests with
The Company will concentrate on transitioning toward a low-carbon economy and historical data and assumptions, and conduct quantitative analysis on climate change-related impacts, to assess
expanding into low-carbon and clean technology business areas. We will define our the Company's financial position and operational performance under different climate scenarios. Examples include
Over the long transition pathway by integrating the national "carbon peaking and carbon neutrality" goals, modeling the relationship between energy consumption and carbon emission to predict changes in a Company's
term industry decarbonization trajectories, and energy structure transformation trends, while carbon costs under different climate policies; modeling production disruption losses to assess economic losses
strategically aligning capital expenditures and R&D resource allocation with flexible due to extreme weather; and assessing the extent to which the Company's profits are affected by rising water costs
adaptations to the long-term challenges posed by climate change. in the event of successive droughts.
Some of the foregoing are forward-looking statements and do not represent guarantees or predictions of future
performance. When developing these plans, the Company has considered a variety of uncertainties, including but not
limited to economic conditions, laws and regulations, market dynamics, geopolitics, and climate patterns. These factors Metrics and Targets
may be affected by limitations in data sources and assessment methods, as well as other unforeseen uncertainties and
subjective judgments. Upon assessment, the Company has not identified any sustainability-related risks and To monitor the Company's progress of climate change response actions, in 2025, the Company established GHG
opportunities that would have a material impact on its financial position, operating results, or cash flows in the following emissions management target with 2030 as the target year. These targets are primarily aimed at mitigating climate
year. change and supporting the national "carbon peaking and carbon neutrality" goals. They are centered on intensity-based
controls while also addressing absolute emissions reductions and structural optimization.
Impact, Risk and Opportunity Management
GHG emissions management target
Rongsheng Petrochemical has integrated climate-related risks into the comprehensive risk management system.
Taking 2025 as the base year, the Company aims to reduce GHG emissions (Scope 1 and Scope 2) per tonne of
Following a structured management process, including identification and assessment of sustainability impacts, risks, and
production by 3% by 2030, covering all main production and operation units.
opportunities, prioritization, response planning, and ongoing monitoring, the Company has developed a list of climate
change risks. Based on the list, the Company formulates targeted response strategies and management plans and
continues to monitor and evaluate the effectiveness of climate risk management efforts.
The Company has set up a cross-functional team consisting of environmental experts, risk analysts, financial staff, and
business unit representatives, to draw on knowledge and experience from various disciplines to comprehensively identify
climate change-related impacts, risks and opportunities through an integrated qualitative and quantitative approach.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
This year, we reviewed progress towards previously established targets with 2022 as the base year, specifically including:
Key Measures Achievements
Type of goal GHG management goals Progress
Optimization of In 2025, ZPC completed 11 energy-saving and carbon-reduction technology retrofits,
The target has been achieved. As of the end of the production reducing Scope 1 and Scope 2 GHG emissions by 215.9 thousand tonnes of carbon dioxide
By 2025, reduce at least 3 million tonnes of processes equivalent (tCO2e).
Carbon dioxide emission reporting period, the Company has reduced over
carbon dioxide emission through energy-saving
reduction 3.4 million tonnes of carbon dioxide emissions
programs. ZPC has built a 200 thousand tonnes/year dimethyl carbonate (DMC) plant, a 200
through energy-saving programs.
thousand tonnes/year ethylene carbonate (EC) plant, and a 240 thousand tonnes/year
The target has been achieved, and we have Recycling of food-grade liquid carbon dioxide plant, to reuse carbon dioxide in the emission gas to
Carbon emission intensity By 2025, reduce the Company's carbon emission carbon dioxide generate products such as DMC, EC, food-grade liquid carbon dioxide, and high-
established a new GHG emissions management
reduction intensity per unit value of output by 5%. performance engineering plastic PC. In 2025, ZPC reduced Scope 1 GHG emissions by
target.
This target has been practically achieved. Due to
By 2025, recycle and reuse an additional 500 some projects coming on stream later than The Company primarily utilizes distributed photovoltaic power generation projects and
Carbon dioxide recycling thousand tonnes of carbon dioxide. expected, the amount of cumulative additional market-based procurement of green power as its main sources of clean energy.
and reuse From 2026 to 2030, recycle and reuse an carbon dioxide recycled and reused reached 430 Meanwhile, the Company utilizes biomass energy, such as biogas, as a supplement in
additional 3.65 million tonnes of carbon dioxide. thousand tonnes as of the end of the reporting certain production processes. In 2025, the proportion of the Company's clean energy
period. usage was about 10%.
Photovoltaic construction:
This target has been achieved ahead of schedule.
Green electricity trading By 2028, complete the transaction of an As of the end of the reporting period, the • Shengyuan Chemical Fiber has continued to expand its photovoltaic power generation
scale additional 1,615 million kWh of green electricity. cumulative additional green power trading
capacity. In 2025, it generated approximately 20 million kWh of electricity from
photovoltaic power, reducing Scope 2 GHG emissions by approximately 11 thousand
volume reached 2,247 million kWh.
tCO2e.
This target has been practically achieved. • Yongsheng Technology has completed a 19.5 MWp rooftop distributed photovoltaic
Although the construction of some photovoltaic Utilization of clean power generation system, which reduced Scope 2 GHG emissions by over 10 thousand
By 2025, achieve full coverage of new energy at
projects were behind schedule, new energy has
energy tCO2e in 2025.
Green electricity coverage the Company's main production and operation
units.
covered the majority of main production and • Zhongjin Petrochemical has commissioned a 1.2 MWp photovoltaic power generation
operation units as of the end of the reporting facility. In 2025, it helped reduce Scope 2 GHG emissions by 680 tCO2e.
period. Green electricity and GECs:
In 2025,
The Company sets and implements emissions management targets by taking into account the current business structure,
• Yongsheng Technology purchased 21.75 million kWh of green electricity, reducing
production and operational realities, future development plans, national GHG accounting standards, the evolving Scope 2 GHG emissions by 12 thousand tCO2e.
landscape of green and low-carbon policies, ongoing developments in international climate agreements such as the Paris • ZPC consumed 2,127.38 million MWh of offshore wind power and reduced Scope 2
Agreement and industry-specific pathways for energy efficiency improvement. The Company has established an annual GHG emissions by 1.13 million tCO2e.
review mechanism, under which the Strategy and Sustainability Committee oversees the setting of GHG emissions • Zhongjin Petrochemical purchased 100 thousand GECs (each representing 1,000 kWh).
management targets and reviews progress toward their achievement. The committee regularly reports to the Board of
Directors for oversight and keeps the feasibility of engaging independent third-party institutions for external verification • During the reporting period, the Company completed carbon emission verification.
of target setting and progress reporting under ongoing review. Carbon emission • In 2025, the Company completed the clearance of carbon emission fulfillment for 2024
allowance and sold its surplus carbon allowance at the Shanghai Environment and Energy
Furthermore, the Company has implemented a robust emissions data accounting and management system to closely
fulfillment Exchange. The Company is not currently involved in any emission reduction
monitor the carbon emissions performance. Each subsidiary develops GHG accounting plan accordingly and forms an mechanism projects.
internal reporting mechanism. The emission data is reported to the superior government authority after being reviewed
internally, marking the completion of annual GHG emissions reporting and related statistics and accounting process. In
Case: Product carbon footprint assessment at ZPC
addition, the Company cooperates with third-party institutions engaged by ecological and environmental authorities to
conduct on-site verifications. Following review and approval by municipal and provincial ecological and environmental
authorities, the external emissions accounting process is considered finalized. In 2025, ZPC engaged an external, specialized third-party institution to carry out a "cradle-to-gate" carbon
footprint assessment of its butadiene rubber product in accordance with ISO 14067. The results showed that
approximately 55% of the product's carbon footprint stems from raw material production and acquisition,
? Carbon Reduction Measures while the remaining 45% is attributable to the manufacturing phase. This product carbon footprint assessment
has enabled ZPC to gain deeper insight into the climate-related impacts of its products, providing a critical
To accelerate the achievement of carbon reduction related targets, the Company actively participates in the carbon
foundation for identifying key emission reduction priorities, advancing low-carbon product R&D, and
market, invests in clean energy, implements the strategic action path of carbon reduction, and continues to carry out formulating targeted carbon management strategies.
carbon reduction measures.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Reducing Resource Consumption The major types of energy consumed during the Company's production processes are electricity, steam, oil, gasoline,
diesel, coal, natural gas and biogas. Through measures such as optimizing energy structure, implementing energy-saving
The Company actively supports the national low-carbon development strategy and is committed to building a new technological upgrades, and strengthening energy consumption management, the Company is committed to reducing
paradigm of resource-efficient utilization. The Company strictly abides by relevant laws and regulations such as the the environmental impact of our energy use and accelerating our transition toward a green, low-carbon operational
Energy Conservation Law of the People's Republic of China and the Water Law of the People's Republic of China. We model.
Energy management measures
improve our resource management and production technology, and promote the implementation of and innovation in
resource conservation and consumption reduction from aspects such as energy conservation technological
transformation and alternative water resources. • Expand photovoltaic power generation projects and actively procure green electricity
Energy Structure such as wind power to reduce reliance on traditional fossil fuels like coal.
Adjustment
Energy Management • Introduce electric construction vehicles to replace conventional fuel-powered vehicles,
thereby optimizing the energy structure in logistics operations.
The Company continues to enhance energy management
capabilities and has established a robust energy management Energy- • Apply energy-saving measures including optimization of process operating parameters,
system and organizational structure in accordance with the ISO conservation retrofitting of production units, and waste heat recovery.
formulated policies such as the Energy Management
•
Transformation promptly replace outdated, high-energy-consuming equipment.
Procedures, the Energy Conservation Management Measures,
the Special High-Energy Consumption Equipment Management
Measures and the Interim Measures for Assessment of the Enhancement of • Optimize the construction of the energy module of the Manufacturing Execution System
Reward and Punishment on Energy Conservation Target. These Energy (MES) to realize the information management of energy data.
documents clarify energy management responsibilities and Consumption • Conduct regular energy management training to raise employees' awareness of energy
performance evaluation criteria across all organizational levels, Management
conservation.
as well as specify requirements for the management and
monitoring of equipment energy use. The subsidiaries of the
Company have established an energy management team with
Case: Various energy-saving projects implemented at ZPC
the head of each subsidiary as the leader and the Technology
Department as the leading department. Each department shall
execute coordinated control according to its specialties and • ZPC implemented an automatic control system for flare pilot lights, enabling dynamic on/off operation
responsibilities, and perform relevant work in accordance with while ensuring complete combustion of process off-gases. Under safe operating conditions, the pilot lights
the requirements of the energy management system. By the ISO 50001 energy management system can be turned off, reducing fuel gas consumption and saving approximately 27,700 tonnes of standard coal
end of reporting period, 57% of the Company's operating certificate of Yisheng New Materials annually.
subsidiaries obtained the ISO 50001 certification.
• In collaboration with an external specialized third-party institution, ZPC developed a plant-wide steam
The Company has established a routine energy consumption tracking and management mechanism. The energy optimization system to diagnose the existing steam network and propose improvement measures. The
management group calculates and analyzes the energy consumption of each production unit regularly. The group carries system is scheduled for commissioning in the first half of 2026 and is expected to generate annual economic
out comprehensive inspection of energy conservation and energy review across the factory, and produces energy balance benefits of approximately RMB 30 million.
sheets and energy metering network diagrams. Based on these analyses, the group monitors abnormal and excessive
energy consumption, oversees the identification, rectification, and prevention of abnormal or high energy consumption
in equipment, and guides the technological innovation and rationalized retrofitting of outdated processes and
equipment. At the beginning of each year, the Company's subsidiary sets management targets for electricity, steam, coal Case: Various energy-saving projects implemented at Yisheng Dahua
and other types of energy, as well as major improvement measures and plans. Meanwhile, the effectiveness of energy
conservation and consumption reduction is included in the performance appraisals of the related departments and
employees. Each subsidiary follows up the target completion progress on a monthly basis and analyzes and rectifies Yisheng Dahua has carried out a series of energy-saving retrofits to reduce energy consumption across its
unmet goals, so as to ensure successful attainment of the Company's energy management objectives. production processes:
• By shortening the process flow in the refining unit, the facility reduces annual electricity consumption by
The subsidiaries set up their energy conservation targets tailored to their specific operational context as follows:
• High-temperature, high-pressure condensate from the refining unit is recovered and reused in thermal
Name of the Energy conservation targets Target progress and updates medium furnaces, achieving annual energy savings of approximately 25,600 tonnes of standard coal.
subsidiary
• Leveraging domestically developed technology benchmarking world-class standards, Yisheng Dahua is
Zhongjin Petrochemical takes various energy The target has been achieved. In 2026, Zhongjin upgrading its PTA production unit to enhance energy efficiency and reduce emissions. Construction is
Zhongjin conservation technology improvement Petrochemical plans to take various energy expected to be completed by the end of 2026, with projected annual energy savings of approximately 38
Petrochemical measures to save 7,000 tonnes of standard coal conservation technology improvement measures thousand tonnes of standard coal.
by 2025. to save 8,000 tonnes of standard coal.
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Water management measures
Case: Process waste heat recovery for power generation at Shengyuan Chemical Fiber
Establish a water conservation management procedure that specifies the relevant
Water
•
In 2025, Shengyuan Chemical Fiber commissioned a high-pressure condensate waste heat power generation management structure, objectives, performance indicators, as well as water-saving
unit that captures high-temperature, high-pressure condensate generated during production, flashes it into Consumption measurement and statistics, and conduct regular inspection and assessment of goal
Management and achievement.
low-pressure steam, and uses it to drive a steam turbine for electricity generation. This system fully utilizes
Assessment Use MES to monitor the Company's water consumption during production, extract data
process waste heat, delivering an hourly energy-saving benefit of 2,500 kWh and generating annual economic
•
from the MES regularly to calculate water balance, investigate and analyze any identified
benefits of approximately RMB 13.8 million. imbalances. The departments responsible shall address the problems identified.
• For the first time in the industry, a closed-circuit circulating cooling water process is
In 2025, adopted, which is basically drain-free compared to traditional open-circuit circulating
cooling water systems, saving about 20 million tonnes of water per year.
Process and
We repair malfunctioning equipment, upgrade equipment with high consumption,
China Petroleum and Chemical Industry Federation (CPCIF) released the 2024 "Top Runner" Benchmarking Equipment
•
promptly retire outdated equipment, and conduct inspections to identify and rectify
Enterprise List for High Energy-consuming Products in the Petroleum and Chemical Industry, and ZPC's Upgrading
leaks. We renovate and upgrade water equipment to reduce water consumption.
• Adjust circulating water systems according to demand to reduce circulating water
ethylene and para-xylene units ranked volume.
• Each subsidiary uses alternative water sources such as desalinated seawater, rainwater,
and reclaimed water, to reduce the consumption of freshwater from the municipal
Water Management pipeline network based on its own circumstances. ZPC uses 100% desalinated seawater
for production. In 2025, it produced nearly 140 million tonnes of freshwater out of 342
Alternative million tonnes of seawater, of which 46.23 million tonnes were produced by membrane
The Company takes active measures for water conservation in production and operation to improve water consumption desalination and 93.59 million tonnes were produced by thermal desalination. The
Water freshwater produced was mainly used for circulating water replenishment, desalination
efficiency. All subsidiaries have established strict water resource management systems and goals. The relevant operating Sources station replenishment, factory-wide production, refinery air-cooling, etc. Yisheng Dahua
departments conduct refined monitoring and statistics on water consumption data, and report to the Board of Directors. utilized seawater, reclaimed water and other non-fresh-water sources to replace 70% to
We are committed to reducing water waste and increasing the rate of water reutilization by using water-saving equipment, 80% of the total water consumption in the plant.
water reutilization technologies and effective control over key water consumption points. We also pay attention to the • We research the feasibility of replacing high-grade water with low-grade water to further
reduce the water consumption at source.
water stress in all of the locations of our operation and have conducted water stress risk assessment and monitoring. For
more details, please visit Rongsheng Petrochemical Conducted Water Pressure Risk Assessment for All Operations.
• We comprehensively assess the water consumption of our products in downstream
Our water sources for production vary based on the project location and are mainly from the municipal pipeline network, applications during product development to explore technical pathways to reduce
Reducing Water downstream water use.
seawater desalination, and rainwater collection. During project environmental impact assessment, we examine the water Use Across the We carry out supplier capacity-building initiatives and provide training on water resource
supply risk at the project location and effectively reduce water risks by adopting methods such as establishing
•
Value Chain management and water efficiency improvements to encourage supply chain partners to
corresponding emergency mechanisms and installing backup water tanks. During the operation stage, we continue to jointly implement water conservation measures.
implement the water conservation measure of "water saving at the front and water reuse at the end", and form a water-
resources-saving management system with daily monitoring, weekly inspection and monthly summary. Through these
efforts, we aim to achieve comprehensive and in-depth water stewardship. The Company's water resource management The Company, in alignment with national water conservation policies, water management standards, and the broader
and water conservation initiatives cover all production and operational sites as well as major water-use processes, with trend toward green and low-carbon development, has integrated current business structure, production and operational
particular focus on facilities located in high-water-stress regions and high-water-consumption equipment and realities, and future strategic plans—alongside industry-specific water-saving technology roadmaps—to holistically
infrastructure. In addition, we extend our water stewardship efforts to include suppliers, encouraging and guiding them to formulate and implement water conservation management targets. These efforts aim to ensure that water-saving
adopt more water-efficient processes and technologies to reduce the overall water footprint of our products. The objectives effectively cover all the Company's water use. General managers of each subsidiary are accountable for setting
Company's water management focuses on water consumption management and assessment, process and equipment water conservation targets and tracking progress toward their achievement, and they regularly report achievements to
upgrade, and alternative water sources, while also paying attention to water usage reduction across the value chain. the Board of Directors for oversight. The subsidiaries set up water-saving targets tailored to their specific operational
context. In 2024, Rongxiang Chemical Fiber set a target that by 2025, it will consume no more than 1.5 tonnes of water per
During the year, tonne of polyester product. As water consumption during production in the summer of 2025 exceeded expectations, the
actual water usage per tonne of polyester product stood at 1.87 tonnes.
the alternative water sources accounted for 74% of total water consumption
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The Company has also established water-saving target that applies across all production and operational sites:
Encouraging waste sorting to make the best use of it and reduce unnecessary waste.
Target
Taking 2025 as the base year, the Company aims to reduce freshwater intake per tonne of production by 3% by 2030,
covering all main production and operation units. Controlling Pollutant Discharge
Case: Broad implementation of water resource management initiatives The Company reinforces the standardized management of wastewater, exhaust gas, and solid waste, and pays special
attention to the prevention and control of toxic and hazardous substances. We strictly abide by the Law of the People's
Republic of China on the Prevention and Control of Atmospheric Pollution, the Law of the People's Republic of China on
Subsidiaries across the Company have actively explored diverse water stewardship approaches and the Prevention and Control of Water Pollution, and the Law of the People's Republic of China on the Prevention and
implemented a range of water-saving measures: Control of Environmental Pollution by Solid Waste, and other related laws and regulations. We prioritize air pollution
control, water pollution control, and solid waste management in our environmental protection work. We implement the
• ZPC constructed a rainwater harvesting system and recycled 4.77 million cubic meters of rainwater in 2025.
control requirements of the EIA pollutant discharge targets in accordance with the Emission Permit, strictly monitor the
• Yisheng New Materials treats its wastewater for reuse as makeup water in circulating water systems, discharge volume and control the total amount of pollutants. We perform environmental monitoring and emergency
reducing freshwater consumption. In 2025, it reused 3,115 thousand cubic meters of reclaimed water. monitoring and management at key locations such as pollution sources, discharge outlets and plant boundaries, evaluate
• Yongsheng Technology expanded the application of reclaimed water through pipeline retrofits, reducing the effectiveness of environmental control and status of pollutant discharge, and closely monitor the impact of various
municipal water use by 5,000 tonnes per month. types of emission on the environment. The pollutant discharge of subsidiaries listed as key pollutant dischargers by the
environmental protection department is detailed in the 2025 Annual Report.
• Yisheng Dahua built a mountain-surface runoff reuse system that collects surface runoff from elevated
terrain. The water is then treated and used as raw water. The system can produce 40 cubic meters of raw During the reporting period, there were no instances of excessive emissions by the Company. The Company did not incur
water per hour, lowering reliance on municipal water supply. any material administrative penalties or criminal liabilities related to pollutant emissions. The Company's emissions did
not have a significant impact on employees, local communities, or other affected groups, and our environmental
monitoring plan and risk management measures were free of material deficiencies.
Green Office
Air Pollution Control
The Company advocates the green and low-carbon philosophy in daily work and life, and promotes green office plan in
the workplace for our employees. The Company continues to raise the awareness of our employees and suppliers The Company strictly manages the impact of production plants on the atmosphere and practices "ultra-low emissions".
regarding environmental protection and organizes various special training courses to actively promote knowledge on this Each subsidiary has formulated management policies including the Management Regulations for Exhaust Gas Pollution
topic. We encourage every employee to conserve resources and minimize waste. We integrate paperless working in our Prevention and Control and the Measures for Management of Exhaust Gas and Noise, which define the responsible
daily work to reduce carbon footprint. departments and their responsibilities, and set requirements for the prevention and control of exhaust gas pollution from
aspects such as pollution prevention and emission management. Through various engineering management and
Measures to build green workplaces technical means, we have strengthened the control of key production processes and installed an online monitoring
system for real-time oversight. As a result, the indicators of major pollutants such as VOCs, sulfides, and nitrogen oxides
Applying digital means to optimize the offline approval process for logistics, vehicle entry and exit, etc., and reduce have been continuously improved.
the communication based on the use of paper documents. The Company has established air pollutant emission reduction target that applies across all production and operational
sites:
Optimizing energy consumption in workplace, such as reducing the countdown before computer monitors
entering sleep mode, regulating air-conditioning and lighting settings in office areas, etc.
Target
Leveraging the Enterprise Resource Planning (ERP) system to enable paperless operations and encouraging the
Taking 2025 as the base year, the Company aims to reduce nitrogen oxides and sulfur dioxide emissions per tonne of
use of cloud storage and cloud-based conferencing solutions.
production by 3% by 2030, covering all main production and operation units.
Promoting green travel by arranging shuttle buses for employees to commute, thereby reducing the use of The subsidiaries set up their air pollution reduction targets tailored to their specific operational context. As of the end of
personal transportation. the reporting period, all their previous targets have been achieved.
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Taking into account the different types of discharge of air pollutants, we have taken corresponding control measures for
organized emission, unorganized discharge and abnormal discharge. Unorganized Discharge
Organized Discharge
• Deodorization devices: install deodorization devices for acidic water storage tanks and sewage storage tanks that
are prone to giving off odor; and seal up the air flotation and A/O tanks at the wastewater treatment plant to collect
exhaust gas, so as to reduce the impact of odor on surrounding environment.
• Equipment management: strengthen the operation management of environmental protection facilities for pollution • Regular maintenance: conduct regular Leak Detection and Repair (LDAR) activities on the valves, pipelines, pumps,
sources such as power stations and heating furnaces, and use low-nitrogen burners and clean fuels to ensure that the and other utilities as required, improve daily operation and management level, and prevent leakage.
online monitoring of exhaust gas emissions meets the standards.
• Monitoring and treatment: establish an information management system to monitor the real-time data of each
• Sulfide compounds treatment: adopt methods such as acid stripping tail gas washing, sodium desulfurization and device online, identify abnormal emissions and leaks in a timely manner, and control gas leakage at the source. Set up
solvent absorption, and install acid gas and acid water gas lifting device and sulfur recovery device to recover acid gas atmosphere monitoring superstation and monitor the air quality of the surrounding environment to identify air quality
and convert it into sulfur; use deep desulfurization solvent to reduce the H2S concentration in the exhaust gas, and anomaly and act promptly.
install an alkali washing tower before the exhaust gas incinerator to prevent abnormal working conditions; and use
desulfurized dry gas in heating furnaces to ensure that the emissions meet the petroleum refining standards. • VOCs: take effective sealing and collection measures for the major processes that dissipate VOCs and give off odor to
ensure that the exhaust gas is discharged up to the standard after treatment. Discharge after dilution is prohibited.
• Nitrogen oxides treatment: adopt advanced denitration technologies such as selective catalytic reduction (SCR)
and UOP ultra-low nitrogen burners, and equip the thermal medium furnace with a SNCR denitrification device, to
effectively control nitrogen oxide emissions.
VOCs treatment: VOCs generated by the production units are collected in an enclosed chamber and then incinerated 64
Abnormal Discharge
•
and disposed of in the heating furnace, cracking furnace waste gas incinerator, waste water incinerator, RTO, etc. to
minimize VOCs emissions; use hydrogen-added gas from low pressure separator as fuel of incinerators to prevent
VOCs from being carried in exhaust gas due to incomplete combustion of fuel; boiler flue gas with VOCs will be
collected and treated before being discharged through the exhaust pipe. • Ground torch: burn the waste gas discharged under abnormal working conditions.
• Soot treatment: adopt wet electric dust removal, cloth bag dust removal, tube beam dust removal and other • Acid gas torch: alkaline wash the abnormally discharged hydrogen sulfide gas before burning it.
technologies, and install micron-level dry mist dust suppression and other devices, to effectively reduce soot • Mobile monitoring vehicles: carry out pollution investigation and monitoring, emergency monitoring and dynamic
emissions and ensure air quality. monitoring of abnormal emissions to guarantee the timely detection and effective handling of abnormal situations.
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Case: Waste gas management enhanced at Zhongjin Petrochemical
Waste Management
Zhongjin Petrochemical has continuously enhanced its waste gas management and implemented multiple The Company continuously optimizes the comprehensive management process for solid waste and has established
initiatives in 2025: relevant regulations such as the Administrative Measures for Solid Waste. The Company has also established a hazardous
• Replaced the exhaust fan at the wastewater treatment plant to improve waste gas conveyance capacity and waste management ledger and environmental management platform. Each of our plants has set up a dedicated waste
centralized treatment of emissions from the facility; management department, which is responsible for coordinating the daily management and data collection of all sorts of
• Collected tank breathing emissions, pre-treated them through tank farm pretreatment units, and then waste. Meanwhile, each subsidiary, based on its specific business characteristics, has incorporated waste management
centrally processed them via catalytic oxidation; targets into its annual performance and management evaluation system to ensure effective implementation of waste
• Sealed tank vent openings, installed full-contact floating roofs, and retrofitted storage tanks with nitrogen management measures and to drive source reduction of waste generation.
sealing systems to minimize volatile emissions from stored materials.
The Company has established hazardous waste reduction targets that apply across all production and operational sites:
Water Pollution Control
Target Target progress and updates
The Company attaches importance to sewage treatment and strives to minimize the impact of wastewater from its
operations on the surrounding environment. Each subsidiary has formulated the Measures for Sewage Management that
defines the various indicators for wastewater discharge according to national standards. It also clarifies the As of the end of the reporting period, the Company's
Taking 2023 as the base year, the Company's hazardous
responsibilities of relevant departments in the management of wastewater pollution prevention, recycling, classification, hazardous waste intensity per RMB 100 million of output
waste intensity per RMB 100 million of output will decline
treatment and discharge. has decreased by approximately 9%, steadily advancing
by 20% by 2030.
the achievement of the hazardous waste reduction target.
The wastewater from the Company mainly includes desulfurized wastewater of power station, salt-containing wastewater,
sulfur-containing wastewater, ammonia-containing wastewater, oily wastewater, clean drainage, and domestic sewage.
Each of our subsidiaries has set up supporting sewage treatment facilities and operates them in line with the principle of
"shunting clean water from sewage, shunting rainwater from sewage, shunting different types of sewage from each other,
and treating based on their properties" to control wastewater discharge. The special process liquid or wastewater with The subsidiaries set up their air pollution reduction targets tailored to their specific operational context. As of the end of
high pollutant concentration from the production unit is pretreated in the unit to reach the control standard, before being the reporting period, all their previous targets have been achieved.
transported to the sewage treatment plant for further treatment. In addition, the Company closely monitors the pH value,
Chemical Oxygen Demand (COD), total nitrogen, total phosphorus, and other indicators of the incoming and outgoing
water of each stage of wastewater treatment in strict accordance with the relevant state requirements to ensure that the
discharge meets the standards.
The Company has established water pollution control target that applies across all production and operational sites:
Target
Ensure 100% compliance of wastewater discharge at all operating sites, covering all main production and operation
units.
The subsidiaries set up their water pollution control targets tailored to their specific operational context. As of the end of
the reporting period, all their previous targets have been achieved.
Case: Ammonia recovery project for process wastewater at ZPC
Wastewater containing ammonia generated during ZPC's coal chemical production is difficult to treat using
conventional methods and causes severe corrosion to certain facilities. To address this challenge, ZPC
developed and commissioned an ammonia recovery unit that combines chemical and physical separation
techniques to extract ammonia from wastewater, producing high-purity liquid anhydrous ammonia for use as a
feedstock in its acrylonitrile production unit. The implementation of this system has reduced the annual
corrosion rate of affected facilities by more than 80%. Additionally, the recovered anhydrous ammonia has
lowered raw material procurement costs by approximately RMB 45 million per year, achieving resource
recovery and circular utilization of wastewater.
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The Company treats waste in strict accordance with the principles of "reduction, utilization, and harmless disposal" to
Case: Hazardous waste generation reduction achieved by Zhongjin Petrochemical
promote circular economy. We prioritize waste recycling and reuse, and non-recyclable waste is classified and disposed
of based on its level of hazard. Hazardous waste is treated in accordance with national regulations through closed-loop
processes, and we arranged specialized training for employees responsible for managing the storage and transportation Zhongjin Petrochemical's original production process generated certain impurities that required removal using
of hazardous waste. General solid waste is first sorted, then disposed accordingly. activated clay, resulting in spent clay classified as hazardous waste. Through process optimization, Zhongjin
Petrochemical has effectively controlled impurity formation at the source, significantly reducing the volume of
Waste management approaches spent clay generated, with a reduction of approximately 1,000 tonnes annually.
Hazardous waste General solid waste
Seizing Clean Technology Opportunities
Hazardous waste mainly comes from raw materials General solid waste is mainly divided into domestic
and by-products in the production process. waste, industrial waste without residual value, and
The Company regards the development of clean technology-related businesses as a core pillar of its green growth
Reduction at the source: reduce the generation of industrial waste with residual value.
strategy. We focus on the innovative application of alternative energy sources and technologies, explore sustainable
•
hazardous waste from the source as much as Domestic waste: regularly transferred to the
water use models and technical pathways, drive technological innovation of circular economy, and facilitate the
•
possible through the application of advanced domestic waste landfill by special vehicles
industry's green and low-carbon transition. The Company plans to invest at least RMB 15 billion in the construction of
process and the optimization of production arranged by the engineering departments.
processes. clean technology product projects by 2030, while ensuring that 100% of new development projects deliver sustainability
Industrial waste with no residual value: handed
benefits.
•
• Outsourced for disposal: entrust the hazardous over to the qualified industrial waste handling
waste that cannot be further utilized to the entity for disposal.
qualified third party for disposal. Industrial waste with residual value: sold to the
• In 2025
external by the sourcing department for
comprehensive utilization (for example, gypsum
the operating income from the Company's clean technology- accounting for approximately
and scrap metal).
related products reached RMB
Case: Resource utilization of waste at ZPC
Alternative energy sources and technologies
ZPC has constructed an oil residue-to-hydrogen metal recovery unit to treat filter cakes generated during oil
residue gasification. The unit recovers high-value heavy metals such as nickel, vanadium, and molybdenum,
producing finished heavy metal ash as a marketable product. Additionally, the heat generated during filter cake Photovoltaic project deployment
processing is recovered for steam production, which is fed into the plant's steam network. With a designed
The Company's subsidiaries have actively deployed photovoltaic power generation facilities, with multiple
capacity of 100 thousand tonnes per year, the facility produced over 2,000 tonnes of finished heavy metal ash in
projects completed and put in operation:
• Shengyuan Chemical Fiber has completed two phases of photovoltaic projects with a combined installed
capacity of 20 MWp.
• Yongsheng Technology has completed two phases of photovoltaic projects with a combined installed
capacity of 19.5 MWp.
• Zhongjin Petrochemical has completed a photovoltaic project with an installed capacity of 1.2 MWp.
The Company will continue to expand its photovoltaic applications and has commenced the construction of
several new projects which are scheduled to be completed in 2026:
• ZPC plans to develop a photovoltaic project with an installed capacity of 57 MWp.
• Rongsheng New Materials (Zhoushan) plans to develop a photovoltaic project with an installed capacity of
• Rongxiang Chemical Fiber plans to develop a photovoltaic project with an installed capacity of 2.7 MWp.
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EVA capacity expansion
Main Environmental Performance Indicators1
ZPC has commissioned a 300,000-tonne-per-year EVA facility for photovoltaic encapsulant materials, generating
During the reporting period, the main environmental performance indicators of Rongsheng Petrochemical are as follows:
about RMB 1 billion in economic benefits each year. To seize opportunities in the growing photovoltaic market,
ZPC plans to invest RMB 30 million in R&D for related materials while further expanding its EVA capacity.
Construction of the production facility is progressing as scheduled. Upon completion, the project is expected to Issue Category Indicator Unit 2024 2025
contribute an additional RMB 2.25 billion in annual economic benefits.
Sulfur dioxide (SO2) emissions tonne 559 439
ZPC 10 MW/20 MWh energy storage system Nitrogen oxide (NOx) emissions tonne 5,609 5,572
ZPC has deployed two energy storage systems (5MW/10MWh each), totaling 10MW/20MWh. The battery energy Particulate matter emissions tonne 190 209
storage system charges during off-peak hours using surplus transformer capacity and discharges during peak
hours. This not only avoids the use of fossil fuel energy when there is a shortage of electricity during peak hours Volatile organic compounds (VOCs)
tonne 7,643 7,214
emissions
but also saves a portion of the electricity costs during those hours. The system is also equipped with Exhaust gas
independent fire protection, temperature control, lighting, video surveillance, and other systems to ensure safe Approved SO2 emissions3 tonne / 3,487
and reliable operation. In 2025, this energy storage system generated an economic benefit of RMB 825,000 for
ZPC. Approved NOx emissions3 tonne / 11,213
Approved particulate matter
tonne / 2,049
emissions3
Sustainable use of water resources
Approved VOCs emissions3 tonne / 10,838
ZPC's promotion of seawater desalination project Chemical oxygen demand (COD)
tonne 1,516 1,120
Emissions2 discharge
ZPC has constructed three phases of seawater desalination projects utilizing membrane and thermal
technologies, with a total production capacity of 515 thousand tonnes per day, which addresses the issue of Ammonia nitrogen discharge tonne 16 10
limited freshwater resources in its island location. The team developing the seawater desalination project Wastewater
tailored their approach to the local conditions, utilizing an overhead design to fully utilize vertical space and Approved COD discharge3 tonne / 3,188
maximize freshwater production within the limited production area. In 2025, ZPC's seawater desalination Approved ammonia nitrogen
project reduced water bill expenditures by RMB 940 million. tonne / 353
discharge3
Hazardous waste tonne 336,989 387,458
Circular economy
tonne per tonne
Hazardous waste intensity15 0.01 0.01
of production
Recycling waste oil to produce hydrogen Waste Non-hazardous waste4 tonne 1,081,789 759,124
ZPC generates nearly 200 thousand tonnes of tar every year, which was previously incinerated as waste liquid.
tonne per tonne
ZPC has recycled 160 thousand tonnes of tar for hydrogen production based on its properties and suitability as Non-hazardous waste intensity15 0.02 0.01
of production
a feedstock for producing hydrogen from oil residue. This approach not only reduces carbon dioxide emissions
from waste liquid incineration but also brings an annual economic benefit of over RMB 100 million. Recycled and disposed waste tonne 446,663 461,191
Utilization of self-produced biogas
• Shengyuan Chemical Fiber collects biogas produced during the anaerobic treatment of wastewater and
utilizes it as fuel. The hourly heat output is equivalent to that of 0.445 tonnes of saturated steam, delivering
an annual economic benefit of approximately RMB 400,000.
• At Yisheng Dahua, biogas generated from the wastewater treatment process of its integrated utilization
facility is partly used as feedstock in production processes, and partly as combustion gas for the facility. The
surplus biogas is utilized as fuel for thermal medium furnaces. This practice reduces raw-coal consumption
by about 4,000 tonnes and cuts carbon dioxide emissions by roughly 8,000 tonnes annually.
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Issue Category Indicator Unit 2024 2025 Issue Category Indicator Unit 2024 2025
Coal6 tonne 5,544,020 4,170,053 Environmental protection investment RMB 10,000 27,273 21,990
Gasoline tonne 6 12 Hours of environmental protection
Direct energy hour 80,137 75,592
training
consumption5 Diesel fuel7 tonne 9,003 11,665 Environmental
Sessions of environmental
protection time 457 476
Natural gas m3 / 3,960 protection training
training
Environmental Participation in environmental
Biogas m3 / 20,695,500 management participation 22,278 39,676
protection training
Photovoltaic power Proportion of pollutant discharge up to the standard % 100 100
kWh / 48,122,341
generation8
Proportion of noise controlled up to the standard % 100 100
Indirect energy
Purchased electricity MWh 9,881,046 10,668,011 Proportion of environmental facilities in operation % 100 100
consumption
Purchased green Number of major environmental pollution accident case 0 0
MWh 2,147,427 2,282,006
electricity9
Purchased steam6 GJ 468,589 6,117,002
Comprehensive energy tonne of standard
consumption coal
Comprehensiv Ltd., Zhejiang Petroleum & Chemical Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Zhejiang Yisheng New Materials Co., Ltd., Zhejiang Shengyuan
e energy Chemical Fiber Co., Ltd., Rongxiang Chemical Fiber Co., Ltd., Zhejiang Yongsheng Technology Co., Ltd. and Rongsheng New Materials (Zhoushan) Co., Ltd.
tonne of standard Rongsheng International Trading Co., Ltd and Rongsheng Petrochemical (Singapore) Pte. Ltd. do not involve in industrial production activities, thus they will
consumption Comprehensive energy
coal per tonne of 0.15 0.17 no longer be within the scope of main production and operation units.
consumption intensity15
Resource production 2. The emission data are all derived from environmental monitoring and management conducted in accordance with laws, regulations, standards, and norms.
use 3. Approved emissions of pollutants are consolidated based on the total annual permitted emission limits for the respective pollutant as specified in the
Total water consumption tonne 189,875,843 189,374,844 emission permits.
Water consumption tonne per tonne
intensity15 of production
tonne per tonne 6. During the reporting period, Zhejiang Shengyuan Chemical Fiber Co., Ltd. and Rongxiang Chemical Fiber Co., Ltd. decommissioned their self-owned boilers,
Freshwater intensity / 0.67 resulting in a decrease in coal and an increase in purchased steam consumption compared to the previous year.
of production
Freshwater intake10 tonne / 41,221,224 retrospectively adjusted its 2024 diesel fuel consumption.
Water 8. Photovoltaic power generation refers to the total amount of electricity generated by the Company's on-site photovoltaic power generation facilities,
consumption - Municipal water system tonne 42,393,981 40,874,893 including both electricity for self-use and electricity fed to the grid.
- Groundwater tonne 0 0 third parties, excluding green energy certificates. To ensure data comparability, the Company has retrospectively adjusted the 2024 data for purchased green
power.
- Surface water tonne 601,080 346,331
Seawater desalination tonne 139,866,896 139,818,030 11. During the reporting period, Zhejiang Shengyuan Chemical Fiber Co., Ltd. and Rongxiang Chemical Fiber Co., Ltd. reached full production, resulting in an
increase in packaging material consumption to the previous year. The Company also further refined the scope of its consumption of packaging materials
Other sources tonne 7,013,886 8,335,590 calculation. To ensure data comparability, the Company has retrospectively adjusted its 2024 consumption of packaging materials.
Reused water tonne 43,771,996 46,732,445 No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation), referencing international mainstream standards
and industry practices, and combining expert opinions, the Company further clarified the accounting boundary for GHG emissions as the major production
Packaging and operation units within the scope of consolidated financial statements. GHG emissions generated by these units are included in the Company's total
Consumption of emissions at 100%. To ensure data comparability, the Company has retrospectively adjusted its 2024 GHG emissions data.
material tonne 81,377 126,380
packaging materials11
consumption 13. Scope 1 GHG emissions refer to the sum of direct GHG emissions generated by Rongsheng Petrochemical Co., Ltd.'s main operation and production units
through fuel combustion emissions, process emissions, torch combustion emissions in 2025, minus the amount of GHG recycling collected and utilized in the
production process, with reference to the Guide to Accounting Methods and Reporting of Greenhouse Gas Emissions by China's Petrochemical Companies
Scope 1 GHG emissions13 tCO2e 47,531,819 46,314,014
(Trial).
Greenhouse Scope 2 GHG emissions14 tCO2e 5,338,281 6,333,070 14. Scope 2 GHG emissions refer to the sum of indirect GHG emissions generated by Rongsheng Petrochemical Co., Ltd.'s main operation and production
units through net purchases of electricity and net purchases of heat in 2025, with reference to the Guide to Accounting Methods and Reporting of Greenhouse
gas (GHG) Total amount of GHG emissions tCO2e 52,870,100 52,647,084 Gas Emissions by China's Petrochemical Companies (Trial) and the Announcement on the Release of 2023 Electricity Carbon Dioxide Emission Factors.
emissions12
tCO2e per tonne
GHG emissions intensity15 0.88 0.86 No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation), referencing industry peer practices, and
of production considering the Company's actual situation, production volume was incorporated into the density calculation. To ensure data comparability, the Company
has retrospectively adjusted the 2024 data for hazardous waste intensity, non-hazardous waste intensity, comprehensive energy consumption intensity,
water consumption intensity, and GHG emission intensity.
Creating Momentum
by Reinforcing Quality
and Safety
Rongsheng Petrochemical regards work safety as its foundation, continuously refining
chemical safety management measures and fostering a culture of safety and quality
across the entire organization. The Company adheres to the baseline standards in
product and service quality, and leverages its end-to-end quality management system
to accurately identify and respond to customer needs and market changes. Through
sustained investment in R&D and innovation, Rongsheng Petrochemical is committed
to achieving excellence through craftsmanship and enhancing efficiency through
continuous breakthroughs. This focus strengthens the Company's core competitiveness
and contributes lasting value to its sustainable development and the progress of the
industry as a whole.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Guarding Work Safety ? Safety Inspection and Appraisal
During the reporting period, each subsidiary formulated work safety objectives and achieved them through the effective
Rongsheng Petrochemical upholds the development principle of "safety first, people-oriented, and environmental
operation of the work safety system and the implementation of relevant management measures. The achievements
protection first". We enhance our capabilities in risk prevention and proactive forecasting, continuously strengthen the
include the following:
"red line awareness" regarding work safety, advance the establishment of a long-term safety management mechanism,
strictly fulfill the primary responsibility for safety in production, focus on identifying and addressing all types of potential
hazards, and comprehensively improve the level of work safety management. No major fires, explosions, significant work safety accidents, major equipment accidents, major occupational
disease hazards, major environmental pollution incidents, leaks of hazardous chemicals or major health and
During the reporting period safety violations.
Work safety investment was RMB 572.43 million Special equipment annual inspection and regular inspection pass rates reached 100%.
Hazard rectification rate reached 100%.
Risk Management of Work Safety
The Company has established a dedicated safety supervision team to conduct continuous safety inspections across all
Abiding by relevant national and local laws and regulations, including the Work Safety Law of the People's Republic of production areas, including daily inspections, special inspections, and random spot checks, covering all production
China and the Work Safety Regulations of Zhejiang Province, the Company has developed a number of internal policies, processes. Identified issues are addressed through closed-loop rectification. Additionally, third-party consulting service
such as the Management Regulations on Work Safety and Environmental Protection, the Work Safety Responsibility providers are engaged to perform on-site monitoring and verify the implementation of safety measures.
System and the Hazard Identification and Risk Grading Control Procedures. Besides, an effective work safety
management system has also been established to standardize work safety practices across all subsidiaries. During the The Company organizes employees to sign the Work Safety Responsibility Statement to strictly assure their primary
reporting period, no work-related fatality occurred at the Company or its subsidiaries. responsibility in their position to ensure work safety. In case of safety accidents, disciplinary action or economic penalties
are imposed on the responsible department heads in accordance with internal policies, including the Accident (Incident)
Adhering to the work safety management principles of "full participation, prevention first, safety and health as the Management Procedures, and the Management Procedures for Reward and Punishment for Work Safety, based on the
foundation, and continuous improvement" along with the principle that "the person in charge takes the responsibility", severity of the incident. The accident details are also reflected in the appraisal results of relevant departments. We will
the Company establishes a comprehensive work safety responsibility system. We sign the Annual Safety and follow up on the outcomes of incident handling and the rectification of related issues to prevent recurrence. The
Environmental Protection Target Responsibility Statement with each subsidiary and the Work Safety Responsibility Company conducts monthly safety performance evaluations, penalizing personnel who fail to fulfill their duties while
Statement with all employees to strengthen the work safety awareness among all staff. granting awards to departments and individuals who demonstrate excellence in safety practices. Indicators such as safety
management, occupational health management, incident management, fire safety management, and contractor
management are incorporated into the annual comprehensive assessment to incentivize all departments to fulfill their
The HSE management group or the Work Safety Committee is The HSE management group safety management responsibilities.
responsible for or department is responsible
for
• Building and improving the framework of work safety system;
• Setting annual safety objectives and managing assessment plans; • Implementing tasks Case: Digitalization of the dual prevention mechanism for chemical management at ZPC
arranged by the leading
Improving the supervision and inspection systems for safety and
group;
•
environmental protection;
ZPC has digitalized its dual prevention mechanism, establishing an intelligent safety management system
Inspecting safety hazards and the implementation of Appointing safety staff by
featuring "all-staff QR code scanning and full-process traceability". The Company has established a network of
• •
precautionary measures; team for the safety
system administrators and integrated the risk registers for all facilities together with nearly 20,000 control
management at grassroots
Formulating the Company's contingency plans for safety and measures into an online platform. This enables a four-tier prevention and control system for major risks and
level.
•
environmental incidents, and ensuring the implementation of allows all employees, regardless of position, to conduct inspections via a dedicated mobile application. During
emergency drills; the year, the Company systematically closed the loop on 59,151 identified hazards through its management
• Conducting regular safety and environmental meetings to review system, achieving a task inspection rate of 99.95% in the dual prevention system and a 100% hazard
and analyze the production safety status, and drawing lessons rectification rate. These efforts have fostered a long-term governance framework for risks and hazards
from recent safety incidents. characterized by "collective prevention and control, shared responsibility and management".
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
? Emergency Management During the reporting period
The Company establishes an emergency management system and develops emergency response plans for key Total hours of safety training7 Participation in safety training
procedures. Upon the occurrence of an incident, Rongsheng Petrochemical and its subsidiaries will strictly adhere to
national laws and regulations, including the Regulations on Reporting, Investigation and Handling of Production Safety hours
Accidents (State Council Decree No. 493) and the Provisions on Penalties for Production Safety Accidents (Ministry of
Emergency Management Order No. 14), as well as internal policies such as the Incident Management Regulations (Q/RK
G08 005-2022) of Rongsheng Holding Group. At the same time, we will promptly report the incident to local government
authorities and relevant departments of the Company, immediately activate emergency response procedures, and swiftly
implement effective measures to control and eliminate the impact of the incident, thereby ensuring personnel safety and Emphasizing Occupational Health
minimizing property losses. Upon completion of the emergency response, we will establish an investigation team based
on the accident category and direct economic losses. Within the specified time frame, we will comprehensively Attaching great importance to employees' physical and mental health, the Company strictly abides by laws and
implement the "four Non-Closures" principle, which includes analyzing the accident cause, formulating preventive regulations such as the Work Safety Law of the People's Republic of China, the Law of the People's Republic of China on
measures, conducting safety education and training, and taking disciplinary actions against responsible personnel. We the Prevention and Control of Occupational Diseases, the Regulations on Labor Protection in Workplaces Where Toxic
perform emergency drills together with relevant departments every year, and rectify the problems found, so as to Substances Are Used, and the Regulations on Occupational Health in the Workplace. Additionally, the Company has
continuously improve the comprehensive emergency response of the Company. developed internal policies, such as the Occupational Health Examination Management Measures, the Occupational
Hazard Warning and Notification Management Measures, the Occupational Health Management Procedures, the
During the reporting period Occupational Health Risk Identification and Assessment Management Procedures, and the Employee Physical
Examination Implementation Rules. These policies clearly define the key tasks for occupational health management,
Safety emergency drills Participation in safety Coverage of employee work- including employee occupational health examinations, detection of workplace hazard factors, and protective measures.
emergency drills related injury insurance By continuously refining internal occupational health and safety policies and measures, the Company is committed to
safeguarding employees' health and safety through a multi-faceted approach.
In 2025, ZPC, Yisheng Dahua, Yisheng New Materials and Yongsheng Technology underwent and successfully passed the
Employee work-related Employee work safety liability Coverage of employee work surveillance audit for their ISO 45001 Occupational Health and Safety Management System certificate. Meanwhile, ZPC
injury insurance investment insurance investment safety liability insurance6 and Zhongjin Petrochemical obtained an expanded-scope occupational health and safety management system certificate
RMB 11.63 million RMB 990 thousand 100% from Beijing Sanxing 9000 Certification Body Co., Ltd. All our subsidiaries in operation have obtained ISO 45001
Occupational Health and Safety Management System certificate.
Case: Zhongjin Petrochemical conducts emergency drill for leakage and fire incident
In June 2025, Zhongjin Petrochemical conducted an emergency drill at the tank farm of its Storage and
Transportation Department, simulating a chemical leak and fire incident. The drill simulated the entire
emergency response process, including accident alarm, personnel rescue, self-rescue using fixed firefighting
facilities, process isolation, mobilization of in-house dedicated fire brigade, support from external firefighting
forces, and coordinated joint firefighting operations. This exercise tested the Company's emergency response
capabilities in the event of a major leak or fire incident and the feasibility of its contingency plan. It also
strengthened coordination among the Process Isolation Team, the Emergency Repair Team, and the Fire &
Rescue Team, ensuring they are ready to respond under the principle of "thorough preparedness, prompt
action, and professional collaboration".
? Safety Culture Development
Occupational health and safety management system certificates granted to the Company and some subsidiaries
The Company has developed the Management Rules for the Implementation of Safety Training and Education and
training plans and launched safety training activities covering all employees. This year, we developed special training
The Company regularly evaluates occupational disease hazards, organizes occupational health examinations for
courses on topics including occupational hazard factors and protective measures, safety and environment knowledge for
employees, and establishes occupational health files for them. All subsidiaries have established an Occupational Health
freshman, and first aid. We also invited professional firefighting authorities to provide fire safety training for our
Management Leading Group and appointed full-time occupational health management personnel. They engage third-
employees, which enriched our safety and health training contents. In addition, we conducted assessments of safety
party agencies to perform annual monitoring and assessment of occupational hazard factors, and conduct occupational
knowledge and skills, increased the number of certified employees, and regulated the safety behaviors of all employees,
hazard status evaluation once every three years. For positions exposed to occupational disease hazards, the Company
creating a safety culture and value system that integrates knowledge with practice across all levels of the organization.
strictly implements pre-job, on-the-job, and off-the-job occupational health examinations for relevant employees to
effectively safeguard their health.
subsidiaries.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
During the reporting period To enhance employees' awareness of occupational health and safety as well as their emergency response capabilities, the
Company has established a standardized training system covering all personnel and processes. Through a combination
of online platforms and hands-on practical operations, we organize regular safety training for new employees, on-duty
Proportion of employees who received Proportion of employees with occupational
employees, managers, and contractors. The training program encompasses modules on occupational health, operating
procedures, risk identification, and first aid skills. In 2025, the cumulative number of safety training participations at the
occupational physical examination health files
Company and its subsidiaries reached 111 thousand, effectively enhancing participants' abilities in risk prevention, self-
rescue, and mutual aid. This has helped create a safety culture characterized by "enhancing knowledge through training
and sharpening skills through competitions", providing a solid guarantee for the Company's work safety and employee
well-being.
Measures for occupational health management
Chemical Safety Management
Our subsidiaries have developed management plans concerning occupational disease
Policy Support prevention and control based on their business practices and potential risks, including the ? Chemical Management Policies
Planning Procedures for Hazard Source and Risk Assessment and Control and the Summary
The Company is committed to promoting responsible and sustainable chemical management throughout the product life
for Hazard Source Identification, Risk Assessment, and Control Planning.
cycle. The Company strictly complies with the Regulations on the Safety Administration of Hazardous Chemicals, the
Regulation on the Administration of Precursor Chemicals, the Safety Code for Special Operations in Hazardous Chemical
We conduct annual hazard factor detection and monthly routine monitoring in the workplace, Enterprise, and other relevant national laws and regulations and has developed internal policies such as the Chemical
Hazard Management Policy, the Management Regulations for the Safety Technology Instructions and Safety Labels of Chemicals,
and promptly inform the operation positions of the test results to create a favorable workplace
Identification and the Management Regulations for Hazardous Chemicals Storage, clearly regulating the safety management of
for employees.
research, production, distribution, storage, use, transportation, disposal and other handling processes of chemicals. We
also apply for or renew our registration certificates and safe production licenses for hazardous chemical products
We distribute personal protective equipment as required and supervise and inspect whether according to the procedures prescribed by the state. For specific policies on chemical management, please refer to
Labor Protective Rongsheng Petrochemical Strengthens Chemical Management by Following the Established Rules.
they are used properly. Moreover, we have emergency protective equipment on demand and
Equipment
regularly check their effectiveness.
? Chemical Registration and Use
We have optimized the Company's medical assistance system, prepared emergency first aid The Company conducts a comprehensive survey of all hazardous chemicals in accordance with laws and regulations such
Medical Assurance as the Measures for the Registration and Management of Hazardous Chemicals and the Regulations on the Safety
supplies and contracted with hospitals for medical services for work-related injury, to ensure
Management of Hazardous Chemicals, establishes hazardous chemical management records, and registers with the local
the medical assistance to employees.
work safety supervision and management departments in the regions where it operates. The Company continuously
develops and improves safety operating procedures for the production, use, storage, distribution, and transportation of
We carry out pre-job, on-the-job, off-the-job, and emergency physical examinations for hazardous chemicals, and accepts supervision and inspections conducted by work safety supervision and management
Occupational departments in accordance with the law. For other chemicals, the Company also carries out identification and
employees exposed to occupational hazards, and establish relevant files to monitor their
Health Files
health status in real time. assessment work in compliance with laws and regulations, establishes management records, implements compliance
management, and ensures the safety of personnel, property, and the environment.
We organize publicity week campaigns on occupational disease prevention and control law, The Company conducts a "Chemical Safety Status Assessment" every three years for all chemicals used. In 2025, all
Occupational subsidiaries conducted chemical registrations and hazardous chemical identifications for intermediate products, raw
and carry out occupational health training for all employees and contractors to enhance their
Health Training materials, and final products involved in production operations, identifying 79 classified as hazardous chemicals. We
protection awareness and skills.
perform chemical identification of their types and hazards, and develop corresponding management ledgers. In
accordance with the Administrative Measures for Chemical Safety Data Sheets and Safety Labels, we engage qualified
third-party institute to prepare the Material Safety Data Sheets (SDS) for all of our products and intermediates, and
publish the SDS on the national "Comprehensive Registration Service System for Hazardous Chemicals" and the big data
platforms for the prevention and control of hazardous chemical risks in the regions where our subsidiaries are located.
These SDS cover the uses, physical and chemical properties, impacts on health and the environment, usage procedures,
risk management measures, regulatory information, and classification and labelling information of the chemicals. When
developing the SDS, the Company fully takes into account the requirements of international laws, regulations, and
systems, such as the United Nations Globally Harmonized System of Classification and Labelling of Chemicals, the
International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk, the International
Maritime Solid Bulk Cargoes Code, and the International Maritime Dangerous Goods Code to ensure that customers are
provided with comprehensive and effective information. We request SDS from suppliers for all raw materials and 3
chemical agents (catalysts, solvents and additives) used by the Company. The SDS of all our subsidiaries are available on
our website, please refer to Rongsheng Petrochemical Chemical Products Use and Regulatory Requirements.
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
reviewed the list of restricted substances and substances of very high concern under RoHS, and sent products that could
contain such substances for professional RoHS and SVHC testing. All sampled batches met regulatory standards.
Furthermore, ZPC actively pushed forward the registration of raw materials under REACH based on the needs of
international business.
The Company conducts life cycle assessments (LCA) for each stage of the product life cycle to identify substances that
may pose risks to the environment or human health. It comprehensively evaluates the feasibility of alternatives,
formulates phase-out plans, gradually implements substitution work, and monitors and assesses the effects after
substitution. This year, the Company carried out the following work:
The polymerization inhibitor in a facility of ZPC was originally designed to use 25% TBC
toluene solution. Following process improvements, the facility now uses 85% TBC aqueous
Replacing toluene
solution with solution instead of 25% TBC toluene solution. This upgrade eliminates the use of high-risk
aqueous solution toluene substances, thereby reducing the safety and occupational health risks.
ZPC's rubber facility adopts more environmentally friendly TDAE as rubber process oil,
reducing the total content limit of the eight priority-controlled polycyclic aromatic
hydrocarbons (PAHs) to below 10 mg/kg, and the content of Benzo[a]pyrene below 1 mg/kg.
Replacing DAE
with TDAE Compared to DAE process oil, TDAE ensures better compliance with EU REACH regulations
and increasingly strict domestic environmental requirements.
ZPC continues to advance the replacement of coke Inhibitor in the ethylene cracking furnaces,
replacing the original dimethyl disulfide (DMDS) inhibitor with a safer and more
Replacing
traditional environmentally friendly one. The new inhibitor is not classified as a hazardous chemical,
Rongsheng Petrochemical Chemical Products Use and Regulatory Requirements
dimethyl disulfide making it easier to transport and store. While maintaining the same coke inhibition
? Hazard Assessment and Hierarchical Management and Control of Chemicals inhibitor with a performance, it reduces chemical safety risks, on-site occupational health impacts, and
safer, greener environmental pollution risks.
The Company strictly adheres to state and local chemical catalogues, such as the Catalogue of the Work Safety alternative
Technology and Equipment of Outdated Hazardous Chemicals to be Eliminated (First Batch), and the List of Strictly
Restricted Toxic Chemicals in China. We have strengthened our chemical controls to ensure that our production and In the future, we will continue to screen and assess all chemicals for restricted substances to reduce our reliance on
business activities do not involve the use of any chemicals that are explicitly prohibited, required to be eliminated, or materials that pose environmental or health hazards. If any use of nationally restricted chemicals is found, we will
replaced by the state. Currently, none of the chemicals used by the Company involve substances on the national immediately stop using them and seek alternative low-impact chemicals.
restricted list. ? Chemical Leakage Accident Handling and Prevention
In light of the Globally Harmonized System of Classification and Labelling of Chemicals (GHS), the UN Manual of Tests and
Criteria, the Catalogue of Hazardous Chemicals, and other relevant regulations, the Company regularly identifies risks and The Company has developed the Special Emergency Plan for Leakage of Hazardous Chemicals. To address potential
assesses hazardous chemicals in its products, as well as for chemical raw materials and reagents used in laboratories. The leakage of hazardous chemicals that are highly toxic, flammable, or explosive, we have established corresponding
Company implements risk grading control and hidden danger investigation and management, sets up storage facilities emergency plans. These plans clearly specify our emergency organization network and the responsibilities and response
that meet the required conditions, provides safety education for relevant employees, and engages qualified third parties procedures of all departments under emergency response at all levels. We regularly organize chemical reagent leakage
to issue appraisal reports. It actively identifies and addresses risks associated with the storage, production, use, disposal, response training and chemical emergency drills, so as to strengthen employees' awareness of hazardous chemical risk.
and transportation of chemicals. Additionally, the Company regularly reports information on hazardous chemicals to For personnel handling chemicals, the Company has posted "Reminders for Hazardous Chemicals", and requires them to
government regulatory platforms for supervision. wear personal protective equipment properly and master emergency response skills for potential accidents. We also
provide safety management training and drills to enhance employees' knowledge of chemical safety and reduce the risk
In addition, the Company is committed to bringing safer materials, products, and technologies to the market and closely
of chemical spills.
monitors the use of Substances of Very High Concern (SVHC). Yongsheng Technology, a subsidiary of the Company,
completed RoHS, REACH, and FDA compliance testing for its membrane products. ZPC, a subsidiary of the Company, During the reporting period, no major chemical leakage incident or other safety incidents occurred in the Company.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Source control In-process control Routine control
Prior to commencing work, The Company places inspection QR codes In accordance with internal
contractor project managers at all worksites. Project managers from protocols, the Company
are required to make formal contractors and project management units, conducts regular safety
safety commitments. These as well as other professional management training, technical safety
signed commitment personnel at various levels, must conduct briefings, periodic safety
statements are publicly safety inspections at varying frequencies inspections, and safety
displayed on-site to ensure and scan the QR codes to digitally log meetings for contractors to
the implementation of all compliance records. This system ensure ongoing compliance
prescribed safety measures. effectively enforces safety responsibilities and awareness.
across all management levels.
Contractor safety management process
We review the safety qualifications of contractors and verify their business licenses, qualification certificates,
Shengyuan Chemical Fiber's safety information card for hazardous chemical
and work safety licenses and other qualifications. Furthermore, we conduct systematic evaluation on our
contractor's HSE management system.
Case: ZPC conducted chemical knowledge training
We sign the relevant HSE agreements with our contractors before construction, including the Contractor's
In 2025, to enhance the safety management of chemicals across the entire process, ZPC conducted systematic Safety Commitment, the Incoming Construction Safety Accountability Letter, and the Project HSE Assurance
knowledge training in five dimensions of laws, regulations, policies and standards; the identification,
Contract.
classification and registration of chemicals; specification for preparing "one document and one label"; the
identification of hazardous chemicals and dangerous goods; and operational procedures for the transport,
handling and loading of hazardous materials. This effectively enhanced employees' practical abilities in
chemical compliance management, ensuring safety control throughout the entire process, from production to Before construction, we conduct safety review for personnel, tools and equipment, ensure that contractors sign
transportation. the Safety Education Record, and provide safety education and training for contractor's management
personnel and operators. Contractor's personnel are allowed to enter the site only after obtaining the training
certificate.
Safety Management of Contractors
We assign dedicated safety engineers to conduct on-site inspections and evaluations, and issue rectification
Adhering to the principle of "safety first, prevention prevails", the Company requires contractors to comply with relevant notices for problems identified. We terminate relationships with contractors who have serious violations a
national laws and regulations on work safety and corporate regulations such as the Safety Management Measures for refuse to rectify them.
Outsourcing Construction, the HSE Management Protocol for Contractors, the Management Policy for Contractors, and
the Safety and Environmental Protection Assessment Rules for Contractors. Meanwhile, the Company conducts
We evaluate the contractor's performance online through ERP system. We hold regular HSE meetings for
qualification reviews on contractors and incorporates them into our safety management throughout the lifecycle from
contractors. We will inquire, educate, or punish contractors who are accountable for accidents or commit
contract signing to project acceptance. The Company requires contractors to promptly rectify construction safety issues
serious violations or repeated violations.
raised by the Company, accept the Company's assessment or punishment, and strive to prevent and reduce safety
accidents.
On this basis, the Company further strengthens the safety management of contractors by adopting the following We regularly organize contractors to carry out emergency drills for high-risk operations.
measures:
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Strengthening R&D Innovation ZPC's seven provincial-level new products and technologies, including "Long-cycle Clean Production Technology for
Para-xylene and Petroleum Benzene" and "Complete Technology Development of Metallocene Polyethylene
Upholding the innovation-driven development strategy, the Company systematically advances the improvement and
Catalyst", have passed expert appraisal of scientific and technological achievement. One provincial-level industrial
implementation of the innovation system and mechanism. By adopting a forward-looking strategic perspective, we stay
new product, "Low-residue Polycarbonate New Product", has obtained a certificate. The "Dedicated Materials for
attuned to industry trends, strengthen our independent R&D capabilities and technological innovation proficiency, and
High-density Polyethylene IBC Tank" won the third prize of the 2025 Zhejiang Chemical Industry Science and
achieve high-level self-reliance. We focus on fostering an innovative atmosphere, fully unleashing employees' creative
Technology Awards. The municipal major project "Research and Development and Exemplary Industrialization of
potential, rapidly building up R&D momentum, and developing new quality productive forces.
Polycarbonate Depolymerization" has been completed and accepted.
Innovation Mechanism and Application of Innovation Achievements
Zhongjin Petrochemical carried out the project of "Research and Development of Key Technologies and Equipment
Under the oversight of the Board of Directors, the R&D center is responsible for work planning, establishment of policies for Energy Saving and Consumption Reduction in High Carbon Industry" in line with the national energy-saving and
and evaluation systems, application of patents and awards and others. The subsidiaries are responsible for the consumption reduction policies. By optimizing the process of the aromatic facility, the project has achieved the
implementation of R&D projects. We have established the Dongjiang Innovation Center, a research platform, to recovery of low-temperature waste heat, and lowered the consumption of circulating water, electricity, steam, fuel
coordinate and manage our research work. gas and coal, promoting improvements in energy efficiency and low-carbon transition of the facility. This project has
completed the mid-term acceptance review this year and has been included in the list of provincial-level key
In terms of management policies, we have formulated the High-quality Innovation Management Regulations (for trial research and development projects.
implementation). Our subsidiaries also launched supporting innovation management mechanisms and measures,
standardizing the application and reward of scientific and technological achievements. The subsidiary sets special funds
for innovation each year, categorizes innovation projects according to their difficulty and yields, and provides financial
support of different amounts to them. Employees' contributions to innovation will be used as one of the criteria for Case: Partnering with Zhejiang University to build a paradigm of new green petrochemicals
appraisal, promotion, and position transfer.
In August 2025, the Company entered into a strategic cooperation agreement with Zhejiang University, starting a new chapter
of strategic and reserve technology research and development projects to help build a "new engine" for regional
development. Leveraging the high-level cooperation platform, Zhejiang University-Rongsheng China Green Petrochemical
Innovation Research Institute, both parties will promote deep integration of science, technology, and industry, to build up the
R&D investment RMB R&D professionals "new momentum" for innovation.
In the future, leveraging Zhejiang Province's policy for building the "415X" advanced manufacturing cluster, we will integrate
the Company's industrial advantages with Zhejiang University's innovation resources. Together, we will build a hub for
pioneering technologies and high-caliber talents in green petrochemicals, underpinning a solid foundation for a globally
The Company adheres to the two-wheel driven scientific and technological research and development model of advanced manufacturing base and contributing to the national "carbon peaking and carbon neutrality" goals.
"independent innovation" and "open cooperation". We have built a first-class research and development platform such
as a high-tech research and development center, an academician expert workstation, an enterprise technology center,
and a postdoctoral research workstation. At the same time, we actively carry out foreign technical exchanges and
discussions, promote the integration of industry, academia and research cooperation, integrate the resources of Protection of Intellectual Property Rights
universities, society, enterprises and other parties, work together to improve the level of scientific research, promote
technological progress, and jointly create an open, healthy, win-win innovation ecology. The Company strictly abides by the Patent Law of the People's Republic of China, the Trademark Law of the People's
Republic of China, the Copyright Law of the People's Republic of China and other laws and regulations. We have
developed a string of internal policies, including the Intellectual Property Management Regulations, the Intellectual
Property Management Measures, the Polyester R&D Project Management Measures and the Patents Management
Measures. By conscientiously managing the application, confidentiality and protection of intellectual property rights, we
ensure the effectiveness of our policies on intellectual property rights.
The Company places emphasis on the independent protection and compliant use of intellectual property. In terms of
internal management, we have established a classified management system for confidential information. New employees
are required to sign a Confidentiality Agreement upon onboarding, while leavers are subject to a confidentiality clearance
process. Additionally, core management and technical staff are subject to non-compete agreements where appropriate.
First-class R&D platforms established by Rongsheng Petrochemical
In terms of intellectual property operations, we continuously promote registration, filing, and application for confirmation
of rights. In addition, we ensure the legal use of external intellectual property by signing technology licensing or transfer
As a member of the National Chemical Fiber Industry Standardization Committee, we have led and participated in the agreements and paying licensing fees on time. The Company prudently regulates the use of patents, emphasizes the
formulation of a number of product industry standards. To facilitate the application of innovation achievements, we have management of employees' confidentiality obligations, and strictly controls the risk of disclosing others' trade secrets to
strengthened our achievement application mechanism, the feasibility study and selection and evaluation of scientific third parties. In addition, we regularly conduct targeted training on intellectual property protection to continuously
research projects to identify promising research projects, actively supporting the industrialized project productions with enhance awareness of all employees. We earnestly respect the intellectual property rights of third parties while resolutely
promising futures. Some of the research and innovation achievements of the subsidiaries for 2025: safeguarding our own intellectual property rights.
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Material intellectual property rights infringement 0 case Valid patents 323 pieces
Patent applications Invention patent applications Utility model patent applications
Authorized patents Authorized invention patents Authorized utility model patents
Enhancing Quality Management
The Company strictly abides by laws and regulations such as the Law of the People's Republic of China on Product Quality,
the Interim Measures for the Administration of Supervisory Spot Checks on Product Quality, and the Provisions on the
Supervision and Administration of the Fulfillment of Primary Quality and Safety Responsibilities by Manufacturers of Quality management system certificates granted to the Company and some subsidiaries
Industrial Products. At the group level, we have developed several quality management policies, including the Product
Quality Risk Management Measures, the Quality Management Measures for Ex-factory Products and the Quality
Management Regulations on Production Processes. Our all-round quality control with high standards and strict Case: Shengyuan Chemical Fiber's "Lights-out Factory"
requirements covers the entire production process from raw and auxiliary materials entering the factory, through
intermediate production process management, to product delivery, packaging, and transportation.
Shengyuan Chemical Fiber is committed to developing new quality productive forces. Based on the goals of
The Company strictly implements our product standards, continuously strengthens our quality control standards against
"green, high-end and intelligent operation", and empowered by core technologies, such as robot clusters,
industry benchmarks and carries out production according to superior product indicators. We have set critical quality
industrial internet and artificial intelligence algorithms, it has achieved full-process intelligent operation from
control nodes at the product design, raw material procurement and production stages. We develop new products and
raw material inbound, production procedures, quality inspection, to finished product storage, logistics
new processes according to market demands and set strict quality evaluation standards for raw material procurement,
handling, and loading for shipment, establishing a modern factory capable of continuous operation even in a
follow the principle of "Five Non-Closures8" in production and improve internal quality monitoring and testing
lights-out environment. The production line of this factory can run uninterrupted throughout the year. By
mechanisms for more effective quality control in the process. We ensure our product quality by adopting quantitative
utilizing automatic inspection and anomaly detector, it ensures stable equipment operation and product
assessment methods and setting up key indicators including the rate of qualified incoming raw materials, the rate of
quality. Moreover, it accurately performs product quality inspection with the help of machine vision and
qualified semi-finished exports, the rate of qualified outgoing products, and the rate of quality complaints. We actively
artificial intelligence, with a product excellence rate above 99.5%. At the same time, fewer manual operations
collect suggestions and feedback from our customers. 100% of our subsidiaries in operation have obtained ISO 9001
enable a reduction in lighting electricity demand by about 70%, and lowered personnel safety risks.
Quality Management System certificate. During the reporting period, the Company did not experience any major quality
liability accidents related to products and services.
implemented, all relevant employees are trained and the claim is settled.
Working Together
in Harmony for
Common
Progress
Rongsheng Petrochemical adheres to the development philosophy
of people-oriented and win-win cooperation. We proactively listen to
and address the concerns and expectations of internal and external
stakeholders, working hand in hand with all parties to create value
together. The Company values employees' contributions, provides
comprehensive support for their professional development, and
strives to build a responsible supply chain. These efforts enhance
operational efficiency and sustainability, enabling the provision of
higher-quality products and services to customers. Meanwhile, the
Company actively fulfills its social responsibilities, conveying warmth
and demonstrating corporate commitment and accountability
through a series of community and public welfare initiatives.
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SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Protecting Employees' Rights and Interests Remuneration and Benefits
Recruitment and Employment The Company has developed the Rules for Implementation of Employee Remuneration Accounting and Payment and the
Management Measures of Employees Insurance and other remuneration and benefit regulations. The Company duly pays
employee wages, makes mandatory social insurance contributions, and distributes annual performance-based bonuses
We strictly abide by the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of
in accordance with the Company's performance evaluation framework. The Company conducts annual peer
China, the Regulations on Work-related Injury Insurances, the Provisions on the Prohibition of Using Child Labor, and the
compensation assessments and research, making every effort to provide employees with competitive remuneration and
Regulation on the Employment of Persons with Disabilities and other related laws and regulations. We have developed
benefits, so as to enhance the Company's attractiveness and retain talents. In addition to statutory benefits such as "five
internal rules and regulations in this regard, including the Recruitment Management Measures, the Human Resources
Management Regulations, and the Recruitment Handbook, which are subject to continuous improvement and updating. insurances and one housing fund" and holidays, we provide a diversified combination of benefits and subsidies to
They standardize the management of recruitment requirements, recruitment channels, recruitment processes, talent enhance employees' sense of happiness and satisfaction based on the Employee Welfare Measures and other policies.
evaluation, and others to safeguard the equal employment and the legitimate interests of employees.
In the talent recruitment process, the Company strictly implements standardized hiring procedures and employment
criteria, ensuring the published information is authentic, accurate and complete. A strict confidentiality system is applied 2025
to job applicants' personal information, effectively safeguarding their legitimate rights and interests. The Company strictly
prohibits the employment of child labor and forced labor. We clearly state that no one under the age of 16 shall be Expenditure on company-funded Expenditure on holiday gifts for
recruited, and firmly forbid and reject all types of forced labor. We advocate for a diverse and inclusive workplace culture, physical examination employees
treating employees equally regardless of their nationality, ethnicity, race, gender, religious beliefs, or cultural background.
We also establish adapted jobs for the disabled to help them realize their professional potential and social contribution. RMB million RMB million
The Company is committed to fostering a healthy and equitable workplace environment, resolutely rejecting any sort of
employment discrimination and harassment and safeguarding the legitimate rights and interests of every employee from
infringement. In 2025, the Company had no violations in terms of employee hiring.
Types of benefits for Rongsheng Petrochemical employees
During the reporting period
Total number of Social insurance Proportion of employees
employees coverage signing labor contracts Health
Number of male employees Number of female employees
Number of employees We subsidize employees' communication costs.
Number of employees Number of employees aged
•
aged 30 and below
aged 31 to 50 51 and above
persons persons persons Leaves
• We provide adequate parental leaves for female employees during pregnancy, maternity, and
Case: Deepening school-enterprise collaboration to jointly cultivate industry talent breastfeeding, as well as paternity leave for male employees;
• We provide employees with holiday allowances and gifts.
The Company continues to expand its school-enterprise collaboration network, jointly establishing internship
bases with higher education institutions to promote systematic talent cultivation. The Company has accepted
interns from Zhejiang University and East China University of Science and Technology and also the faculty and Transportation
student visitors from institutions such as Harbin Institute of Technology and Zhejiang Sci-Tech University. This
allows us to identify university talent in advance, ensuring precise alignment between talent reserves and
employment requirements. • We provide shuttle bus and other services for employees.
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Employee Communication
Education
• We set up a reading room; The Company strives to build equal, diverse, and smooth communication channels for employees. The Company has
established a labor union and holds the employee representative meeting annually to discuss employees' concerns and
We invest in schools for the children of non-local employees.
collect their opinions and demands. This enables the participation of employees, and therefore ensures democratic
•
decision-making. We have built a bridge between employees and management through the 900123 employee hotline,
online employee communication group, satisfaction survey and other communication channels, which enable us to
Canteen and dormitory
address employees' issues and help them solve problems in a timely manner.
We provide free work meals and meal subsidies for employees;
Talent Development
•
• We construct employee apartments and staff buildings, and provide rental subsidy and interest-free
loan for house purchase.
The Company values the personal development of its employees, and has established a robust career development
system to evaluate the work performance of employees in a scientific and fair manner. The Company has formulated
Caring several career development and appraisal documents, including the Appraisal Measurements for Management and
Technical Personnel and the Job Appraisal Instructions for Front-line Employees. The direct leaders of each department
• We provide high-temperature allowances to employees and visit families in difficulties. conduct the regular appraisal and annual appraisal to evaluate the performance of employees comprehensively and
reasonably. The high-performing employees are rewarded shortly after the appraisal.
The Company categorizes employees as professional and management and provides them with appropriate career paths
Case: On-site free medical consultation for employees based on their capabilities, to maximize their strengths. The professional career path is divided into the categories of
engineering technology and functional support. Meanwhile, corresponding management positions are arranged on the
management career path to support professional positions and enable collaboration across different career paths. Within
the two career paths (management + professional), the Company adjusts employees' promotion every year based on
In May 2025, the Company invited a professional medical team from Xiaoshan District Hospital of Traditional business operation and employee appraisal to establish diversified career development pathways. The Company selects
Chinese Medicine to conduct an on-site free medical consultation event themed "Bringing Health to the employees for some positions through internal recruitment process, including internal job posting, resume screening,
Workplace, Spreading Care with Warmth". The team offered seven types of services, including traditional professional ability test, comprehensive quality interview, background check, and public announcement of the
Chinese medicine (TCM) internal medicine, orthopedics, acupuncture, cupping, and rehabilitation and physical employment results. These steps ensure the suitability of employees for the positions and the fairness and transparency
therapy, alongside health consultations and complimentary herbal tea. Experts conducted pulse diagnosis and of the selection process, thereby further expanding opportunities for employee growth and development.
medical inquiries to provide personalized health guidance tailored to each employee's condition, thereby In order to improve the professional competitiveness of employees, promote their career development and enhance the
conveying the Company's care through professional services and receiving widespread acclaim from employees. core competitiveness of the Company, the Company and its subsidiaries have applied for and obtained the qualification
for independent certification of vocational skills. The certificates of vocational qualifications issued by the Company are
widely recognized by all positions of the petrochemical and chemical fiber industries in China. Therefore, employees'
skills are obviously improved, which lays a solid foundation for the sustainable development of the Company. We provide
training to employees according to the business development needs of each sector of the Company. In 2025, the
Company steadily advanced the establishment of a points-based training system for pre-job qualification certification,
continuously improved the "Rongsheng Learning and Testing Platform", an online training platform. Moreover, the
Company implemented routine training initiatives such as qualification certification training programs, employee
development initiatives, and internal training sessions.
Job The system has been preliminarily established, with a total of 2,859 basic-level courses and 2,858
qualification supporting question banks developed. These materials are available now on the "Rongsheng
training Learning and Testing Platform" for employees to access and use for learning purposes.
The Company conducted qualification certification training programs, with a total of 4,602
attendances for the year, ensuring that key positions are staffed by certified personnel. The
Routine
Company also implemented employee development training initiatives to enhance employees'
training
initiatives professional and comprehensive skills, with 1,996 attendances. Additionally, the Company
organized 3,528 internal training sessions to systematically strengthen the overall capabilities of
On-site free medical consultation the workforce.
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Care for Employees
The Company organized a series of activities including high-potential talent forums, artificial
Professional
intelligence (AI) office efficiency enhancement training, and a corporate legal compliance promotion
team The Company has set up assistance funds to provide employees with timely assistance when they are affected by
month. These initiatives aim to foster talent exchange, improve AI application capabilities, and
development
strengthen compliance awareness. disasters, serious illnesses, and financial difficulties. In this way, we alleviate difficulties caused by special reasons when
our employees are in need. Also, the Company pays close attention to the needs of female employees and actively
provides them with care, support and assistance, aiding them in achieving their career aspirations. For retired long-
During the reporting period serving employees, we award them with customized silver coins as a token of appreciation and souvenir, in addition to
the statutory employee benefits and entitlements. To create a heartwarming and harmonious enterprise, we put
ourselves in the shoes of employees and strive to provide what they truly need.
Total investment in employee Attendances in employee Total number of employee
training9 training9 training hours9
We also provide a rich variety of cultural activities for all employees. This enhances cohesion among employees, helps
them relieve stress, and guides them to face their daily life and work with a positive and relaxed attitude. The Company
RMB
organized various activities for employees in 2025:
On Women's Day, the Company sent gifts to all For the Mid-Autumn Festival, the Company
Case: Rongsheng Petrochemical won multiple vocational skills awards female employees to thank them for their thoughtfully prepared festive mooncakes for all
contributions to the development of the Company. employees to express sincere appreciation for their
dedication and extend warm wishes.
In 2025, the subsidiaries of Rongsheng Petrochemical endeavored to improve the skills of their employees, and
received several honors: 01 02
Sun Jianjiang's Electrical Maintenance Master Studio of Rongxiang Chemical Fiber was recognized as a
Hangzhou Skill Master Studio.
ZPC's employees participated in the Zhejiang Provincial Work Safety Vocational Skills Competition and won the 03 04
second group prize.
When the heat in summer got intense, the Company The Company organized cultural and sports events
ZPC's employees participated in the Yangtze River Delta Region Chemical Industry Special Competition and organized a series of consolation activities to send such as chess competitions, tug-of-war and group
won the third group prize in the Central Control Operators for Chemical Production category. cooling beverages and fruits to employees who film screenings, as well as festival activities, including
ZPC's employees participated in the Zhoushan City Skills Competition of the Central Control Operators for worked in the high temperature. making osmanthus cakes for the Mid-Autumn
Chemical Production, and won the first and second individual prize.
Festival and crafting mugwort sachets for the Dragon
Zhongjin Petrochemical's employees participated in the Yangtze River Delta Chemical Industry Special Boat Festival. Mugwort sachets are aromatic pouches
Vocational Skills Competition, and won the first group prize in the Central Control Operators for Chemical filled with mugwort to ward off evil spirits.
Production category, as well as the first and second individual prize in the same category. They also won the
excellence award in the Chemical Inspector category.
Case: Dragon Boat Festival handicraft activity at Rongsheng Petrochemical
As the Dragon Boat Festival approached in 2025, the
Company organized a handicraft activity titled "Deep
Affection for the Festival, Enduring Fragrance of
Mugwort", engaging employees in crafting traditional
mugwort sachets and five-colored silk cords (symbolic
threads worn for health and safety during the festival).
Through this immersive experience of authentic folk
Zhongjin Petrochemical's employees engagement in the Yangtze River Delta Chemical Industry Special Vocational Skills Competition customs, the activity promoted Chinese traditional
cultural heritage and enhanced employees' sense of
belonging and team cohesion.
Dragon Boat Festival handicraft activity at Rongsheng Petrochemical
statistics of Rongsheng Holding.
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Striving for High-Quality Services IT Construction
The Company always centers on customers, continues to improve the service management system, and actively responds
The Company actively promotes IT construction and enhances the awareness of information security and confidentiality.
to their various demands. We improve customer service quality and efficiency in multiple dimensions, strictly protect
In compliance with laws and regulations such as the Cybersecurity Law of the People's Republic of China, the Personal
customer privacy and information security, to improve customer satisfaction.
Information Protection Law of the People's Republic of China, and the Data Security Law of the People's Republic of China,
as well as internal systems and policies including the Information Security Management System, the IT Management
Customer Services Regulations, the Management Measures for Office IT Systems, and the IT Emergency Response Plan. We carry out the
security management of computer equipment, data, system operation and IT system access authority, customer privacy
We are dedicated to carrying out customer management in a standardized and effective manner, and have developed protection, and other work, and standardize IT emergency responses, with an attempt to continuously improve our ability
customer management measures according to our business attributes and customer characteristics, maintaining regular
to protect information security. To protect customer privacy data, we have strengthened data security safeguards through
and close contact with customers. Rongsheng Petrochemical has formulated the Detailed Rules for the Implementation of
measures such as deploying network security devices, encrypting data transmission channels, and implementing real-
Price Management of Polyester Products and the Detailed Rules for the Implementation of Rebate Management of
time data backups. We have also taken complementary actions, such as creating data security emergency response plans,
Polyester Products to standardize product pricing methods. The Company has formulated the After-Sales Service
Management Measures to standardize the after-sales service management process and improve customer satisfaction. conducting regular data recovery drills, and performing vulnerability scanning and patching.
We have established multi-level and diverse customer service communication channels such as communication with The Company offers mandatory courses on Network Security Training for employees, arranges tests for employees in
business representatives, field visits, face-to-face talks, online questionnaires, telephone, WeChat and email. In this way, positions related to information security management, and requires relevant employees and software service providers
the Company may communicate more frequently with its customers in detail in the event of changes in plant operations,
to sign the Confidentiality Agreement. We also enter into cybersecurity service contracts with external cybersecurity
market conditions, and other circumstances.
service providers to reinforce our information security defenses..
Attaching great importance to customer complaints and feedback, the Company strives to keep effective complaint
In 2025, the Company did not experience any information security incidents, or any incidents of customer privacy leakage.
channels, optimize the complaint mechanism, strengthen complaint analysis to handle customers' requests in a timely
manner, and actively investigate for the cause and conduct rectification. For the problems reported by the customers, the
front-line business personnel and professional technicians cooperate to ensure that the complaints are 100% handled.
Meanwhile, the Company regularly conducts customer satisfaction surveys. For different customer groups who purchase
various products, we design differentiated questionnaires that cover aspects such as product quality, product delivery, Entity of the Reporting the
service quality, and complaint handling, in an effort to obtain customers' opinions and suggestions. The Company closely incident incident
monitors and tracks the complaints and suggestions received, and formulates measures to address them, thereby
continuously improving the quality of its products and services.
Emergency Not initiating the Lifting the
NO
Emergency
leading group initiation emergency plan Emergency
Sales Management YES (at Level Ⅲ and above ）
The Company has developed sales management systems and measures such as the Marketing Management System, the
Sales Management System, the Detailed Rules for the Implementation of Price Management, the Detailed Rules for the Emergency reception
Implementation of Control of the Sales Operation Process and the After-Sales Service Management Measures. By of the report
YES
implementing these systems and measures, we guide and constrain the entire sales process. Emergency
leading group Emergency
NO (not at Level Ⅲ or above）
The Company has established an e-commerce platform for material procurement and sales, along with an order office initiation
management center. Customers can place sales orders, check relevant announcements and keep up with market Not initiating the
information through the platform, WeChat official account, and WeChat mini-program. The platform operates on the emergency plan
principle of competitive bidding for materials transactions and automatically matches deals through electronic bidding,
which can run in multi channels 7/24 and allow real-time monitoring. It breaks the limitations of transaction time,
location, and operating methods, making customer procurement more convenient, doubling the manual efficiency,
Emergency
achieving a 700% increase in auction sales, and thus reducing the centralized procurement cost. In 2025, the turnover of handling
products through the platform was about 4.83 million tonnes, and the procurement of logistics services was about RMB
Resumption
The Company pays close attention to product price information, strengthens market research, and promptly adjusts the Emergency Controlling the Emergency
YES
working group situation concluded
sales strategy according to market changes to continuously meet market demands. The Company has also established
well-organized files of customer credit. We pay attention to changes in customer credit and take effective measures to NO
manage and control customer credit risks. To improve the overall ability of our sales personnel, we organize workshops
where they can learn about the performance of product equipment, usage scenarios, production processes and other Expanding
Emergency
details. This allows them to provide more professional product introductions to customers. In addition, the Company
conducts various forms of training for sales personnel to enhance their professional ability and business ethics, such as
orientation training, and integrity and self-discipline training.
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Practicing Responsible Sourcing Communication and Assistance
Through telephone calls, video conferences, on-site inspections and other methods, the Company maintains good
The Company is committed to establishing a responsible supply chain, enhancing the compliance management of
communication with its suppliers in order to understand the price trend of their upstream raw materials, as well as their
suppliers, and optimizing the supplier management process. We maintain an equal, mutually beneficial, close, and stable
shutdown and overhaul plan, sales direction and changes in sales volume. By doing so, we can forecast the subsequent
cooperative relationship with excellent suppliers, and work with suppliers to create a positive, clean, transparent, and
trend of procurement prices and update the procurement plan. Meanwhile, we make targeted improvement suggestions
responsible supply chain ecosystem.
for suppliers based on our use of their products. When necessary, we actively provide relevant technical guidance or
The Company strictly abides by the Bidding Law of the People's Republic of China and the Regulation on the training to suppliers.
Implementation of the Bidding Law of the People's Republic of China and other laws and regulations. We have
The Company actively supports the development of local suppliers by prioritizing the procurement of local tea, pottery,
established and improved internal systems and measures for tendering, sourcing, and supplier management, including
and silk products, and promotes agricultural products from local and poverty-stricken areas. We provide local suppliers
the Detailed Rules for the Implementation of Tendering and Bidding Management and the Regulations on the
with product trial opportunities. Suppliers whose products successfully pass qualification testing are then invited to
Management of Suppliers. We continue to standardize suppliers' risk control mechanism and optimize the supplier
participate in the Company's tender process.
bidding mechanism, supplier access system and suppliers performance evaluation mechanism, and ensure compliance
in the whole process of bidding, sourcing, acceptance and payment, to realize the fairness, openness, and transparency The Company treats small and medium-sized enterprises (SMEs) fairly, fostering a favorable environment for cooperation
of bidding and procurement, and prevent illegal sourcing. The Company places great emphasis on managing supply and development, and ensuring that all payables are settled on time. As of the end of the reporting period, the balance of
chain risks. We strictly adhere to the Group's procurement management system and procures materials according to the the Company's accounts payable (including notes payable) was RMB 60.8 billion, accounting for 15.72% of the Company's
production and maintenance plan based on technical requirements. The Company, based on the procurement cycle of total asset. For details, see the Company's 2025 Annual Report. The Company does not have any overdue payments, nor
materials, clarifies the arrival time and requisition time of the required materials for planned requisition, so as to prevent does it have any overdue payments to SMEs .
supply disruption caused by materials shortages during production. In addition, the Company actively seeks out high-
quality domestic suppliers to conduct trials and usage of domestic materials, thereby reducing the risk of monopoly by Building a Better Community
foreign materials suppliers.
Guided by the principle of "Loyalty to the Party and a Thriving Enterprise for the People", the Company advocates for
Review and Access public welfare, actively organizes charity donations and shares development achievements with the society. The
Company mainly focuses on school-enterprise cooperation, education assistance, medical assistance, support-oriented
The Company has formulated a strict supplier access process, based on which the information of suppliers, including procurement, poverty relief and care for disadvantaged groups and encourages employees to participate in various
supplier performance, quality management, work safety, environmental protection and contract performance, is volunteering activities, including blood donation and on-site visits. The employees carry forward the volunteering spirit
reviewed thoroughly to ensure the product and service quality of suppliers. The Company takes environmental protection and continue to promote the healthy development of public welfare undertakings and the community, and actively
as an essential consideration for the selection of suppliers and learns about the suppliers' performance on fulfilling their spread civilized and harmonious social trends. In 2025, the Company received honors such as the Institutional Donation
responsibility in environmental protection. The Company strictly prohibits cooperation with suppliers with a history of Award under the 8th "Zhejiang Charity Award", "Outstanding Contributor for Charitable Donations in Xiaoshan District",
major environmental pollution penalty and prioritizes the suppliers with better environmental performance. and "Advanced Unit for Voluntary Blood Donation in Xiaoshan District".
The Regulations on the Management of Suppliers of the Company specifies the supplier access and management process:
the Company has categorized the supplier access criteria as general and special criteria according to the applicability of
related business, and performs qualification checking and verification for new suppliers requesting for joining the During the reporting period
supplier database. All suppliers will be categorized into the blacklist, greylist and whitelist according to the results of
qualification review and transaction evaluation. Public welfare donation Rural Revitalization Investment Amount Duration of volunteer activities
To address the corruption related to suppliers, the Company signs the Letter of Integrity Responsibility and Commitment
with suppliers and adds a clause on the prohibition of commercial bribery, which clearly requires both parties to strictly
RMB 15.66 million RMB 3.16 million 500 hours
abide by the anti-commercial bribery laws. The Letter prohibits commercial bribery in contract discussion, negotiation,
signing, fulfilment and other processes, and clearly lists the reporting channels and handling departments.
Assessment and Evaluation
The Company conducts a supplier evaluation at least once a year, which covers topics such as delivery quality, delivery
time or progress, after-sales service, and HSE. The evaluation results are classified into four levels from high to low: A, B, C,
and D, based on which three types of supplier lists, namely the blacklist, the greylist, and the whitelist, are formed. For
blacklisted suppliers, the Company will terminate business with them. For greylisted suppliers, the Company will put
forward rectification requirements or set cooperation restrictions. The Company's contracts with suppliers include
requirements on business ethics, environmental protection, and safety. We urge suppliers to comply with and implement
such requirements, and incorporate related requirements into the follow-up evaluations of suppliers. The Company Inauguration Ceremony of the "Rongsheng Eaglet Employees actively participated in the blood Rongsheng Education Award Fund motivates
regularly publishes a list of untrustworthy suppliers and refuses to cooperate with them. Venture Capital Fund" donation drive outstanding teachers and students
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Education Assistance Community Care
• Rongsheng Education Reward Fund has been in operation for 23 consecutive years. In 2025, the • We donated RMB 500,000 to provide care and support to police officers and auxiliary police personnels
Company issued an education reward fund of RMB 1 million, which meant that the accumulative amount in Xiaoshan District who are experiencing financial hardship.
of the fund reached RMB 19.15 million, and a total of 5,440 outstanding teachers and students were • We donated RMB 300,000 to support the critical illness medical assistance program for economically
rewarded. disadvantaged veterans.
• The Xingzhi Educational Support Initiative organizes the Xingzhi Class for Xingzhi Students (those
covered by the Xingzhi Program). The initiative has a motto of "Practicing with Diligence and Studying
Hard to Realize Dreams". Through this initiative, we supported 100 underprivileged high school students
and invested RMB 1.2 million.
• We donated RMB 800,000 to the "Supporting Students in Chasing Dreams" scholarship program for 100 Case: Grant distribution event for the "Double Hundred Students" initiative
underprivileged university students, helping economically disadvantaged students realize their campus
dreams.
In August 2025, the Company, in collaboration with the Xiaoshan District Government, organized a grant
distribution event for the "Double Hundred Students", providing need-based students grants to 100 high school
students in the Xingzhi Class and 100 university freshmen from economically disadvantaged families. The
Rural Revitalization
Company donated to Xingzhi Class to support 100 financially disadvantaged high school students, with a total
investment of RMB 1.2 million. It also supported 100 financially disadvantaged university students, with a total
• We donated RMB 200 million as a named endowment fund to the Charity Federation of Xiaoshan District. investment of RMB 600,000.
This year, over RMB 200,000 of the donation was allocated to support poverty alleviation in villages, as
well as ongoing regular public welfare assistance activities. The Company has been deeply committed to educational public welfare for over two decades, with cumulative
educational donations exceeding RMB 80 million, continuously leveraging corporate strength to empower
We collaborated with Qunying Village to co-create a Party-building brand, sharing cultural and "elderly
students' growth and promote educational equity and social development.
•
and youth" services and deepening village-enterprise cooperative development.
• We prioritized hiring local residents and individuals with disabilities. Together, we advanced
infrastructure projects such as the "Four-Good Rural Roads" initiative to optimize commuting and
employment services.
• We collaborated with a town government to upgrade the Common Prosperity Workshop in Jiulian
Village, and established the "Rongsheng Young Eagle Entrepreneurship Fund", along with a mentor
team, to support youth entrepreneurship.
• We donated RMB 600,000 to the Yinong Town College Student Entrepreneurship Fund to support
university students in starting their own businesses.
Medical Assistance
• We have established the "Health Care Fund for Yinong". We use the fund to hire provincial, municipal and
district medical specialists from various disciplines to provide year-round medical care in the town at
various periods, and support local health centers to increase the number of ambulances to serve local
residents and assist families or individuals hit by serious illnesses in Yinong. In 2025, we donated RMB 1.5
million to the Health Care Fund for Yinong.
• We participated in the public health initiative, "Caring for Teeth, Nurturing Oral Health – A Future Full of
Smiles in Xiaoshan", with a special donation of RMB 200,000. This donation is earmarked for a targeted
oral healthcare assistance program to help disadvantaged groups improve their oral health.
• We donated RMB 100,000 to the Xiaoshan Red Cross Society to support the enhancement of regional
public health services. The grant distribution event for the "Double Hundred Students"
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Future Prospects ISO System Certification Statistics
of the Company
With resolve and momentum, we are moving forward into a new chapter of growth. As we look ahead to the new chapter
of the "15th Five-Year Plan" period, we will closely align with national strategic priorities, remain committed to the real
economy, and resolutely advance the development of new quality productive forces. We will reinforce the refining and ISO 45001
ISO 14001
ISO 50001 Occupational Health ISO 9001
chemical integration and optimize the layout of industrial and supply chains. We will also improve quality and increase Environmental
Company name Energy Management & Safety Quality Management
Management System
efficiency by leveraging digital and intelligent technologies, advancing sustainable development through green and low- System Certification
Certification
Management System System Certification
Certification
carbon transformation. Additionally, we will increase investment in core technology research and development, striving
for breakthroughs in critical refining and chemical technologies. These efforts are expected to deepen the integration of Rongsheng
technological innovation with industrial upgrading, and accelerate the development of a modern industrial system. As a Petrochemical Co., Ltd
key participant in the petrochemical industry, a pillar industry of the national economy, we will maintain a strong sense of
Zhejiang Petroleum &
responsibility and commitment. Upholding integrity as our core value, we will continuously improve product and service
Chemical Co., Ltd
quality and diligently fulfill our social responsibilities. Through sound operations, we will deliver sustainable value to
shareholders and investors, and contribute to the sustainable development of the economy and society. We will Ningbo Zhongjin
Petrochemical Co., Ltd
collaborate with all stakeholders to harness collective strength, deepen partnerships and foster emerging industrial
clusters. Together, we will contribute meaningfully to industry prosperity and the realization of national development Yisheng Dahua
goals under the "15th Five-Year Plan". Petrochemical Co., Ltd.
Zhejiang Yisheng New
Materials Co., Ltd.
Zhejiang Shengyuan
Chemical Fiber Co., Ltd.
Zhejiang Yongsheng
Technology Co., Ltd.
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Independent Assurance Report
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Index
Self-Regulatory Guidelines No. 17 for
Companies Listed on Shenzhen
Contents GRI Standard
Stock Exchange—Sustainability Report (For
Trial Implementation)
About the Report Article 58 GRI2/GRI3
Chairman's Message / GRI2
About Us /
Market Structure /
Core Competitiveness /
About
Rongsheng Recognition / GRI2/GRI3/GRI201
Petrochemical
Remuneration Appraisal /
Materiality Assessment Article 14, Article 15, Article 18, Article 52
ESG Governance Article 12
Corporate Governance Article 12 GRI2
Ensuring
Operational Information Disclosure Management Article 53 GRI2
Compliance to
Enhance Growth Investor Relations Management Article 53 GRI2
Strength
Business Ethics Management Article 55, Article 56 GRI2/GRI3/GRI205
Article 12 to Article 19, Article 32, Article 33,
Enhancing Environmental Management GRI2/GRI3/GRI304
Article 52
Article 12 to Article 19, Article 20, Article 21,
Responding to Climate Change Article 22, Article 23, Article 24, Article 26, Article GRI305
Conserving Ecology
and Unleashing Green Reducing Resource Consumption Article 19, Article 35, Article 36, Article 37 GRI2/GRI3/GRI302/GRI303/GRI305
Potential
Controlling Pollutant Discharge Article 19, Article 30, Article 31, Article 37 GRI2/GRI3/GRI303/GRI305/GRI306
Seizing Clean Technology Opportunities Article 35, Article 36, Article 37 GRI103/GRI304/GRI307
Main Environmental Performance Article 24, Article 26, Article 30, Article 31, Article GRI2/GRI301/GRI302/GRI303/GRI305
Indicators 35, Article 36 /GRI306
Article 16, Article 18, Article 19, Article 45, Article
Guarding Work Safety GRI3/GRI403
Creating Momentum 49
by Reinforcing Quality
Strengthening R&D Innovation Article 42 /
and Safety
Enhancing Quality Management Article 47 GRI416
Protecting Employees' Rights and GRI2/GRI401/GRI404/GRI405/GRI408
Article 49, Article 50
Interests /GRI409
Working Together in Striving for High-Quality Services Article 47, Article 48 GRI418
Harmony for Common
Progress GRI2/GRI3/GRI204/GRI205/GRI308/G
Practicing Responsible Sourcing Article 45, Article 46, Article 52
RI409/GRI414
Building a Better Community Article 39, Article 40 GRI201/GRI203/GRI413
Future Prospects / /
ISO System Certification Statistics of the Company / GRI2
Independent Assurance Report Article 26, Article 58 GRI2
Index / GRI2
Reader's Feedback Questionnaire / /
Note: According to our assessment, the issue “Ethics of science and technology” is not material in respect of both finance and impact.
RONGSHENG PETROCHEMICAL CO., LTD. About the Chairman's About Rongsheng Operational Conserving Quality Working
SUSTAINABILITY REPORT 2025 Appendix
Report Message Petrochemical Compliance Ecology and Safety Together
Readers' Feedback Questionnaire
Thank you very much for spending time in reading Rongsheng Petrochemical Sustainability Report 2025. Your opinions
and suggestions are welcome since they can help us provide more valuable information to you and other stakeholders
and promote Rongsheng Petrochemical to improve its social responsibility management capabilities and performance.
You may contact us by sending E-mail to the following mailbox:
Email: rspc@rong-sheng.com
Which category of stakeholders do you belong to?
〇Government and regulator 〇Shareholder and investor
〇Customer 〇Employee〇Supplier/partner
〇Community 〇Media and NGO 〇Other ( )
In your opinion, does the report completely present Rongsheng Petrochemical's ESG performance?
〇Yes 〇Average 〇No
In your opinion, has the report answered the expectations and demands of Rongsheng Petrochemical's
stakeholders in all aspects?
〇Yes 〇Average 〇No
Do you find the quantitative information disclosure in the report objective, true, and valid?
〇Yes 〇Average 〇No
Do you find the writing of the report clear and easy to understand?
〇Yes 〇Average 〇No
Is the graphic design of the report helpful to you in understanding the information in the report?
〇Yes 〇Average 〇No
Do you have more opinions and suggestions for Rongsheng Petrochemical's social responsibility
management and sustainability report?
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