CONTENTS
About This Report 01
Message from the 03
Chairman
About ABA Chemicals 05
Company profile 05
Corporate culture 05 Technological Nourishing Hearts to
Quality Lead the Future Advance Together
ESG Management 09
Adhering to innovation-driven development 17 Protecting employee rights and interests 59
ESG governance 09
Strictly controlling quality and safety 21 Growth with employee 63
Stakeholder communication 11
Creating high-quality services 27 Building a solid safety defense line 65
Materiality analysis 13
Building a resilient supply chain 31 Fulfilling social responsibility 72
Table of Key 89
Performance Indicators
Index 95
Reader Feedback Form 96
Green Development and Sound Governance for
Enduring Protection of Sustainable, Steady
Nature Growth
Environmental compliance management 37 Strengthening corporate governanc 77
Addressing climate change 41 Compliant and prudent operations 81
Improving resource efficiency 46 Adherence to business ethics 84
Strict control of pollution emissions 51 Optimizing the “Intelligent Manufacturing” system 87
Protecting biodiversity 56
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report
About This Report
About This Report Abbreviation Full Company Name
This report is the third annual Environmental, Social, and Corporate Governance (ESG) Report (hereinafter Yihui Biotechnology Huzhou Yihui Biotechnology Co., Ltd.
referred to as “this Report” ) issued by ABA Chemicals Corporation and its affiliated companies. It aims to
Electroxolve Technology Electroxolve Technology Co., Ltd.
explain the Company's ESG-related systems, practices, and performance, and to objectively disclose the
Company's sustainability management and outcomes in response to the concerns of stakeholders and the Aierwang Henan Aierwang New Energy Environmental Co., Ltd.
general public.
Malta Base The base includes Amino Chemicals Limited and A2W Pharma Ltd.
Reporting Scope
This Report covers ABA Chemicals Corporation and its subsidiaries, consistent with the scope of the Reporting Period
consolidated financial statements in the Company's annual financial report. For ease of presentation and This Report covers the period from January 1, 2025 to December 31, 2025 (hereinafter referred to as the
reading, in this report, “ABA Chemicals Corporation” is referred to as “ABA Chemicals” , the “Company” , “reporting period” or “the year” ). To enhance comparability and forward-looking value, certain information
or “we” . Subsidiaries include: Shanghai ABA Chemicals Co., Ltd., ABA Chemicals (Nantong) Limited, ABA may retrospectively reference 2024 or earlier years, or be extended to 2026 where appropriate.
(Shaoxing) Pharmaceuticals Limited , ABA Jiangsu Jiannong Agrochemicals Co., Ltd., ABA（Gansu）Lanwo
Technology Limited , ABA（Gansu）Lannong Technology Limited, ABA (Lanzhou) Fine Chemicals Limited , ABA
Basis of Preparation
(Lanzhou) Pharmaceutical Creation Technology Limited, Shanghai Puyi Chemical Technology Co., Ltd., Huzhou
This report has been prepared in accordance with the relevant requirements of the Self-Regulatory Guidelines
Yihui Biotechnology Co., Ltd., Electroxolve Technology Co., Ltd., Henan Aierwang New Energy Environmental
No. 17 for Companies Listed on Shenzhen Stock Exchange — Sustainability Report (For Trial Implementation)
Co., Ltd., Pingdingshan Aierwang Environmental Technology Co., Ltd., Hong Kong ABA Chemicals Corporation
issued by the Shenzhen Stock Exchange. This report also draws reference from the Self-Regulatory Guidelines
Limited, Amino Chemicals Limited, ABINO PHARM, INC, and A2W Pharma Ltd.
No. 3 for Companies Listed on Shenzhen Stock Exchange — Sustainability Reporting Preparation issued
by the Shenzhen Stock Exchange ChiNext Market, the GRI Standards (2021 version) issued by the Global
Abbreviations and Corresponding Full Names in this Report Sustainability Standards Board (GSSB), the United Nations Sustainable Development Goals (SDGs), the
Standards for Corporate Sustainability Disclosure – Basic Standards (Trial Implementation) issued by the
Abbreviation Full Company Name Ministry of Finance of China, as well as the relevant requirements of mainstream domestic and international
ESG ratings.
ABA Chemicals / the Company /
ABA Chemicals Corporation
we/ Taicang Base
Source of Information
Nantong ABA / Nantong Base ABA Chemicals (Nantong) Limited
The information and data disclosed in this Report are derived from official documents and statistical records
Jiannong Plant Protection / Binhai of ABA Chemicals. Financial data and indicators presented herein have been audited by the third-party
ABA Jiangsu Jiannong Agrochemicals Co., Ltd.
Base
accounting firm.
The R&D and manufacturing base invested and constructed by
the Company in Lanzhou, Gansu, including four enterprises: ABA
Lanzhou Base （Gansu）Lanwo Technology Limited , ABA（Gansu）Lannong Review and Approval
Technology Limited, ABA (Lanzhou) Fine Chemicals Limited , ABA
(Lanzhou) Pharmaceutical Creation Technology Limited. This Report has been reviewed and confirmed by the Company's management, submitted by the Strategy and
Decision-Making Committee of the Board, and approved by the Board of Directors.
Lanwo Technology ABA（Gansu）Lanwo Technology Limited
Lanzhou ABA Fine Chemicals ABA (Lanzhou) Fine Chemicals Limited Access to the Report
Lanzhou ABA Pharmaceutical To view or download this report online, please visit:
ABA (Lanzhou) Pharmaceutical Creation Technology Limited
Creation
•ABA Chemicals Corporation official website (https://www.abachem.com)
Shaoxing ABA / Shangyu Base ABA Chemicals (Shaoxing) Limited •Shenzhen Stock Exchange official website (https://www.szse.cn)
•CNINFO (http://www.cninfo.com.cn)
Puyi Chemical Shanghai Puyi Chemical Technology Co., Ltd.
Yihui Biotechnology Huzhou Yihui Biotechnology Co., Ltd.
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report Message from the Chairman
Message from the Chairman
international perspective. Meanwhile, through regular Embracing Innovation and Consolidating the Value
job skills training, the promotion of green processes, Foundation with Business Restructuring
Currently, as the global climate crisis intertwines and the communication of advanced safety concepts, Looking ahead to the first year of the 15th Five-Year Plan,
with the restructuring of industrial chains, sustainable we continuously strengthen the ESG awareness and the Company takes “restructuring” as the main theme of its
development has transformed from an “optional professional capabilities of all employees. Today, this business development strategy, systematically advancing the
talent pool, forged through specialized training and daily coordinated upgrade of products, assets, and the organization
question” for companies into a “compulsory question”
experience, is active in key positions across the Company's to build a more resilient, efficient, and sustainable business
crucial to their survival and competitiveness. As a
domestic and overseas bases and R&D centers, and has system, and create long-term, stable, and predictable value
fine chemical force deeply engaged in the innovative become the backbone driving the green transition and returns for shareholders.
pharmaceutical and agrochemical CDMO sector, ABA high-quality development of ABA Chemicals.
We adhere to the “dual-wheel drive” of our dual core
Chemicals must not only provide high-quality products, We adhere to the “people-oriented” development businesses of pharmaceuticals and agrochemicals,
but also become an engine for green transformation, philosophy, continuously improve the occupational health and through product restructuring, we accelerate the
a benchmark for safeguarding health, and a pioneer in and safety management system, and create a secure and transition toward innovative pharmaceuticals and innovative
healthy working environment with room for growth. The agrochemicals with high technical barriers, high environmental
value creation. In 2025, the Company deeply integrated
Company implements a “management + professional” standards, and high added value. The layout of new products
the ESG philosophy, using practical action as its boat
dual-channel development mechanism, supporting not only considers market potential, but also takes green
and innovation as its oars, and striving to write a employees in realizing their value across diverse career processes, carbon footprint, and customers' ESG needs as
magnificent chapter for ABA Chemicals amidst the paths. Meanwhile, we focus on stimulating organizational prerequisites, ensuring that growth is rooted in responsibility
tides of the times. vitality, promoting knowledge flow and capability reuse and sustainability. The concurrent asset restructuring, on the
through methods such as cadre rotation and cross- one hand, implements intelligent and green transformations
base exchanges. We also actively fulfill our community at mature bases such as Taicang Base and Nantong Base
responsibilities, participating in public welfare activities to enhance the efficiency of existing assets; on the other
such as emergency assistance and educational support, hand, it constructs new bases such as Lanzhou base and
Leading the Path of Development with Excellence in and ensure that every product carries our commitment of
allowing the fruits of corporate development to benefit a Shangyu Base with high standards, creating high-quality
Technology and the Principle of Quality First responsibility to customers and society.
broader community. It is precisely this respect and trust production capacity carriers that integrate low-carbon
Innovation is the inherent gene of ABA Chemicals, and for people that unites a team that highly identifies with the
Prioritizing Ecology and Protecting Clear Waters and Blue manufacturing, digital management, and flexible supply. Multi-
moreover, our core competitiveness for the future. As a Company's mission and is full of resilience and warmth.
Skies with Green Development as the Foundation base synergy and the continuity of new and old growth drivers
Company with distinct international characteristics, we
Green development is not an optional question, but a will significantly enhance risk resilience and capital return
are well aware that the expectations of leading global Reshaping Governance, Consolidating the Foundation,
mandatory one crucial to corporate survival and global efficiency.
customers for green, safe, and efficient solutions are and Facilitating Steady and Long-Term Development
profoundly reshaping the value standards of the industrial competitiveness. As early as 2019, ABA Chemicals became Looking ahead, although the direction of the green transition
Good corporate governance is the institutional safeguard
chain. To this end, the Company firmly embeds ESG one of the first private enterprises in China to introduce and technological transformation of the global industrial
for ESG practices. The Board of Directors and the Strategy
concepts into the core of our R&D strategy, continuously DuPont Sustainable Solutions (DSS), consolidating the chain is clear, the path is complex and full of challenges.
Committee attach great importance to relevant ESG issues
increases investment in cutting-edge green technologies foundation of safety and environmental management through ABA Chemicals is deeply aware that past efforts have laid an
and incorporate them into the Company's medium- and
such as synthetic biology and microchannel continuous the implementation of systematic projects. At present, the initial foundation for us, but there is still a long way to go to
long-term strategic planning.
flow, and actively promotes the commercialization of Company is comprehensively advancing the development of a truly achieve sustainable and high-quality development. The
low-carbon ecosystem covering the entire value chain, which We not only meet the minimum regulatory requirements Company will always uphold the mission of "to deliver high-
modular and atom-economic processes. To improve
is not only a response to external requirements, but also our for compliant operations and transparent disclosure, but quality products and treatment solutions to customers in
R&D efficiency, we are prudently exploring the auxiliary
strategic choice to proactively lead the green transformation also proactively benchmark against international best the life sciences sector, create value, and bring benefits to
application of digital tools such as artificial intelligence in
of the industry. During the year, after the Company joined the practices—releasing our second ESG report during the employees, shareholders and society", assessing risks with a
stages including molecular design and reaction condition
Science Based Targets initiative (SBTi), the 10-year science- reporting period and continuously advancing SBTi target prudent attitude, deepening innovation with firm investment,
optimization, with the aim of shortening the R&D cycle and
based emission reduction pathway we set was officially setting, all of which reflect our commitment as an industry advancing green transformation with solid actions, and
reducing trial-and-error costs.
approved. Meanwhile, the DSS Phase II project launched at pioneer. Currently, the Company is taking the 15th Five- fostering team synergy with sincere care. Only by maintaining
We not only focus on technological breakthroughs Year Plan as an opportunity to systematically advance the
the Lanzhou Base is precisely an important practice for us to reverence and doing our utmost can we advance steadily in an
themselves, but also place greater emphasis on their modernization of governance capabilities: strengthening
build future-oriented, high-quality, sustainable, and green new environment full of uncertainties, ultimately contributing the
transformation into sustainable value in real-world the supervisory functions of independent directors,
momentum. tangible, reliable, and responsible strength of ABA Chemicals
scenarios. For teams that successfully develop green improving anti-fraud and business ethics mechanisms, to human life and health, as well as crop safety.
technology products, the Company establishes practical Building a Prosperous Ecosystem through a Talent- and deepening digital transformation to empower lean
incentive mechanisms to encourage the dual leap of Oriented Approach and Shared Purpose operations. Crucially, we are integrating ESG requirements
innovation achievements into environmental benefits and into business processes such as procurement, production,
Talent is the primary resource for sustainable development.
commercial value. Meanwhile, we benchmark against and research and development, driving the transition from Cai Tong,
Over the years, through international programs such as
international world-class quality systems, embed the “compliance-driven” to “value-driven” . Chairman of ABA Chemicals Corporation
DuPont Sustainable Solutions (DSS), we have systematically
“zero-defect” concept throughout the entire chain,
cultivated a core sustainable development team with an
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report About ABA Chemicals
About ABA Chemicals “2+X” Development Strategy
ABA Chemicals focuses intensively on its dual core businesses of innovative agrochemicals and innovative
Company profile pharmaceutical intermediates. By leveraging its technological advantages, supply chain strengths, and
production management expertise, the Company consistently cultivates new growth opportunities to adapt
ABA Chemicals was founded in July 2003, and went public in September 2011, listing on the ChiNext market
to the evolving global landscape and market demands.
of the Shenzhen Stock Exchange. The Company specializes in CDMO for innovative pharmaceuticals and
innovative agrochemicals, alongside the development and production of biological enzyme products and
Agrochemical The Company is deeply engaged in the two core business areas of
nutritional health products, and strategically invests in fields such as environmental protection and new
sector CDMO for innovative agrochemicals and innovative pharmaceuticals,
materials. Currently, ABA Chemicals operates eight major production bases and four R&D centers. The
Pharmaceutical and consistently promotes the expansion and advancement of these
Company's initial production base was established in Taicang City, Jiangsu Province. Over time, the Company sector segments to enhance the core competitiveness of its main operations.
expanded its operations by investing in the construction of Nantong Base, acquiring the Binhai Base in
Yancheng City, and establishing the Malta Base in Europe and Shangyu Base in Zhejiang Province. Through Building on its existing diversified business portfolio, the Company
industrial fund collaborations, the Company has also set up the Xiangyang Base in Hubei Province and Fuxin Biological Enzymes, actively explores opportunities for vertical integration along the industry
X
Base in Liaoning Province. In 2022, the Company began developing the Lanzhou Base in Gansu Province, Healthcare Products, chain, while focusing on horizontal expansion into life sciences, health,
Environmental
which serves as a foundation for expansion and production transformation. In addition, the Company has and other fine chemical sub-sectors. It also proactively plans for the
Protection, New
established a core R&D structure comprising the Shanghai Zhangjiang Innovation Center, Puyi Chemical, Yihui Materials, etc. sustainable utilization of biological waste to adapt to the evolving
Biotechnology, and Lanzhou ABA Pharmaceutical Creation. international environment and market demands.
ABA Chemicals is a leading provider of high-end product customization services in China's pharmaceutical
and agrochemical intermediate industry. The Company holds strong competitive advantages in the domestic Mature and Leading R&D System
fine chemical sector, has been consistently ranked among the Top 50 Fine Chemical Enterprises in China The Company has established four R&D centers, which focus on agrochemicals, pharmaceuticals, synthetic
for eight consecutive years,and has been named among the China Top 10 Fine Chemical Innovation and biology, and fine chemical pilot testing, respectively, to provide industry customers with efficient and high-
Development Companies for four consecutive years. quality customized process improvement and product R&D services.
Production System of ABA Intelligent Manufacturing
Corporate culture The Company's production network consists of six core production bases, supplemented by two collaborative
ones. ABA Chemicals operates multiple thousand-ton-level intelligent production lines capable of handling
Enterprise vision volumes from kilogram to thousand-ton scales, offering efficient and high-quality customized R&D, small-
scale trials, pilot tests, and commercial production technologies and services to both domestic and
We are committed to becoming a global excellent supplier of health products and services. international customers.
Enterprise mission Management philosophy
•To deliver high-quality products and treatment solutions to customers in the life sciences sector •Cherish resources and protect the environment;
•Create value, and bring benefits to employees, shareholders, and society •Use high-quality resources and manpower, rely on professional processes and engineering
technologies, and provide customers with higher-quality products in a more cost-effective,
environmentally friendly, and safe manner.
Corporate culture
Core values
Win-win cooperation and
Cornerstone Loyalty and diligence Soul
efficiency
Core Unlocking creativity Concept Excellence and vision Sustainable health Stable and professionally Continuous improvement of
business motivated team the EHS (Environment, Health,
and Safety) System
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report About ABA Chemicals
Key performance
Environmental dimension
th
Ranked 30 among China's Top Selected as “a Case of
Environmental protection Environmental protection investment Renewable energy 100 Fine Chemicals in 2025 Outstanding Sustainable
investment as a percentage of operating revenue consumption Development Practices by Listed
Selected as one of the Top
Ten Innovative Development Companies in 2025” by the China
Enterprises in China's Fine Association for Public Companies
% 10000kWh
Chemical Industry for 2025
ten thousand RMB
VOCs decreased by Comprehensive utilization rate of Comprehensive utilization
non-hazardous waste rate of hazardous waste
% YoY
% %
Selected for the 2025
Wind China List of Top 100 Wind ESG
Listed Companies for ESG Best rating upgraded to
Practices AA
Social Dimension
(Small and Mid-Cap)
R&D investment R&D investment as a percentage Volume of
of operating revenue product recalls
ten thousand RMB 8.93 % 0 tons
Average training hours Occupational disease incidence Work-related fatality rate
per employee rate Awarded the title of Winner of the
th
Outstanding Responsible Care Gold Award at the 8
%
Practitioner in China (Shanghai) International
hours % China's Pesticide Industry for Invention and Innovation
Governance dimension
Meetings of the Board of proposals reviewed Percentage of Ad hoc announcements
Directors held and approved independent directors from the Company
the “Top 100 List of ESG Listed Awarded the
Companies for ESG Performance” “Golden Quality Science and
by Securities Times , and Technology Innovation Award”
its Chairman, Cai Tong, was presented by
Number of investor questions Number of litigation or arbitration Coverage rate of special simultaneously named “ESG Shanghai Securities News
answered via cninfo.com cases arising from compliance issues audits on business ethics Pioneer of the Year”
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report ESG Management
ESG Management ESG Governance Structure of ABA Chemicals
We continuously improve the ESG governance structure and management mechanism, maintaining regular •Review and approve ESG-related proposals submitted by the Strategy and
communication and cooperation with stakeholders. Through materiality analysis, we ensure the Company effectively Decision-Making Committee;
Board of
monitors and addresses its sustainable development risks and opportunities, achieving long-term sustainable •Guide and review the Company's ESG policies, strategies, and targets;
Directors
development. •Oversee the implementation of the Company's ESG strategy;
•Approve the Company's ESG report.
Decision-
making
ESG governance •Conduct research and make recommendations on the Company's ESG,
level Strategy and the Science Based Targets initiative (SBTi), and other related matters;
The Company has established a multi-level ESG governance structure consisting of the Board of Directors, the •Study and make recommendations on the Company's ESG-related
Decision-
Strategy and Decision-Making Committee, the ESG Executive Working Group, and various executive departments, medium- and long-term development plans, business objectives,
Making
systematically managing and overseeing sustainability-related risks and opportunities by integrating ESG factors into development guidelines, major strategic investments, etc.
strategic decision-making, investment reviews, and senior executive appraisals. Committee •Review the Company's ESG report and other related reports on
significant matters.
ESG Governance framework
•Formulate the Company's ESG goals, and promote the implementation of
the annual plan;
The Company attaches great importance to ESG and sustainable development, and has established a comprehensive
Management ESG Executive
•Establish a management structure and institutional processes for ESG
ESG governance structure and management system to carry out ESG management and supervision in a standardized
and efficient manner. The Board of Directors is responsible for reviewing and guiding the Company's ESG strategies level Working Group
matters to standardize the Company's ESG work;
and policies, monitoring ESG targets and progress, and closely integrating our business with sustainable development. •Provide support for the specific implementation of ESG work.
The Strategy and Decision-Making Committee under the Board of Directors, subject to compliance with the Articles
of Association and other relevant laws and regulations, is responsible for conducting feasibility studies and making
recommendations on the Company's long-term development strategic plans, major strategic investments, and
ESG matters, reporting its work to the Board of Directors and being accountable to the Board of Directors. At the Execution All subsidiaries
•Fully implement ESG-related work across all subsidiaries and departments.
management level, the Company has gathered experts in product technology, quality control, safety and environment, level anddepartments
human resources, and corporate operations to form the ESG Executive Working Group. We incorporate ESG strategies,
goals, and work requirements into relevant management systems, with each subsidiary and department optimizing its
scope of responsibilities and work content, to form an ESG governance structure consisting of the decision-making
level, management level, and execution level, gradually integrating ESG into daily work.
Access to ESG information
The Strategy and Decision-Making Committee of the Board of Directors holds at least one regular meeting every
Professional skills and development year to review the Company's annual ESG report, conduct research on relevant strategic issues, and report to the
Board of Directors after forming recommendations. Major ESG matters are, after being reviewed by the Committee,
submitted to the Board of Directors for decision-making. The ESG Executive Working Group reports on the
The members of the Company's Board of Directors possess diverse professional backgrounds in chemistry, progress of ESG-related work to the members of the Strategy and Decision-Making Committee from time to time.
pharmacy, economics, law, and accounting, enabling them to conduct in-depth reviews of ESG issues from In addition, independent directors review and supervise material ESG matters through specialized communication
multiple dimensions such as macroeconomics, compliance governance, financial internal control, and green mechanisms or at relevant meetings, and provide professional opinions to the Board of Directors. Based on the above
technology. Strategy and Decision-Making Committee: As a special committee established under the Board of arrangements, the Company has established a multi-level and regular mechanism for ESG information acquisition
Directors, its composition is conducive to effectively integrating ESG objectives into the Company's long-term and deliberation that connects the specialized committees and the Board of Directors, integrating regular reviews
strategic development. The Strategy and Decision-Making Committee regularly reviews ESG-related matters, and special deliberations.
discusses key issues on a periodic basis, and oversees the implementation progress to ensure the fulfillment of its
duties. Leveraging the collaborative operations of various specialized committees and the professional advice of
independent directors, the Company has established an ESG governance structure with capabilities for strategic Integrating ESG factors into strategic decision-making
integration, risk identification, and continuous improvement, and continuously enhances governance effectiveness by
constantly refining the top-level design.
When reviewing related-party transactions and major investment matters involving significant ESG risks, the Board of
The Company plans to integrate ESG key performance indicators into the annual performance appraisal system Directors takes ESG risks as an important consideration, and approval from a majority of the independent directors
for senior executives by setting clear ESG targets, weights, and evaluation criteria, ensuring that ESG performance is required. In terms of policy formulation, the Board of Directors institutionalizes ESG-related requirements by
becomes an important basis for senior executive compensation incentives. formulating special policies or revising internal policies, ensuring their deep integration into the Company's strategic
planning, major decision-making, and management systems. Meanwhile, within its scope of responsibilities, the
During the reporting period, the Company held a review meeting on the Science Based Targets (SBTi) and the Strategy and Decision-Making Committee incorporates ESG factors into its research and recommendations on
construction of the internal control management system. Meanwhile, we provided ESG training to key employees to the Company's medium- and long-term development plans, business objectives, and development guidelines, and
enhance their ability to understand and apply ESG policy trends. systematically considers ESG impacts when evaluating projects such as major investments and capital operations.
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report
ESG Management
Stakeholder communication Case ABA Chemicals Exhibits at the 8th China International Import Expo
The Company fully respects and safeguards the legitimate rights and interests of its stakeholders. It actively In November 2025, ABA Chemicals actively participated in the 8th China International Import Expo
collaborates with stakeholders and strengthens communication and engagement to understand and (CIIE). Its subsidiary brand, Wholly You, took the stage at the CIIE for the fourth consecutive year,
promptly respond to their concerns and expectations. These efforts provide important insights for identifying engaging in in-depth discussions with numerous partners during the expo. Concurrently, at the China-
sustainability opportunities, enhancing the Company's sustainability capabilities, and improving the quality of Mato Grosso Agricultural Cooperation Exchange Meeting, a side event of the CIIE, we have established
information disclosure. the intention to cooperate on crop protection solutions with our partners, shared insights on green
agricultural technologies, and reaffirmed its commitment to building sustainable agriculture.
Key stakeholders Expectations and concerns Communication channels
•Legal operations
•Responding to national •Accepting supervision
development strategies •Periodic disclosure
Government and regulatory
•Creating job opportunities •Non-periodic reporting
bodies
•Driving regional economic •Participation in relevant meetings
development •Instant messaging software
•Environmental protection
•Periodic/Non-periodic information
disclosure
•Stable and sound operation
•General Meeting of Shareholders
Shareholders & investors •Return on investment
•Investor engagement activities
•Transparent information disclosure
•Investor hotline and email
•Roadshow and performance briefing
•Compensation and benefits •Face-to-face engagement with
•Career development and management
promotion •Satisfaction surveys
Employees
•Safe and comfortable working •Employee representatives
environment •Collection of employee feedback
•Work-life balance •Internal work groups Case ABA Chemicals Exhibits at the “CPHI China 2025”
•Research and innovation •End-to-end services provided by
From June 24 to 26, 2025, ABA Chemicals, along with
•Product quality account managers
several subsidiaries, exhibited at the “CPHI China 2025” at
Customers •Stable supply •Customer complaint channels
the Shanghai New International Expo Center in Pudong.
•Management of environmental and •Customer communication and visits
social issues •Customer satisfaction surveys During the exhibition, the Company's team engaged
in face-to-face exchanges with numerous customers,
•Win-win and mutual development •Supplier qualification screening systematically presenting our carbon reduction progress
Suppliers/Contractors •Fairness and just •Supplier assessment and audit since joining the Science Based Targets initiative (SBTi),
•Operation with integrity •Supplier communication latest R&D achievements, sustainable operation status
of various production bases, and the green compliance
•Supporting harmonious community and registration advantages of the Malta base in overseas
development •Information disclosure markets. This communication highlighted the Company's
Public welfare and social
•Actively engaging in public welfare •Contact phone and email development philosophy of taking ESG as a lever for
organizations/the public
•Transparent communication •Company official website
differentiated competition and the full industry chain
•Positive interaction
layout as the core.
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report
ESG Management
Materiality analysis Materiality assessment results
To accurately identify and evaluate the Company's material ESG issues, we referred to sustainability information disclosure
High
standards such as the GRI Sustainability Standards, the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen
Stock Exchange — Sustainability Report (For Trial Implementation) , and the IFRS S1 General Requirements for Disclosure
of Sustainability-related Financial Information. Based on these frameworks, a systematic and science-based assessment
methodology was established. The Company conducted a materiality assessment from the perspectives of impact materiality 1
(i.e., the significance of an issue's impact on economic, environmental, and social sustainability) and financial materiality (i.e., 5 2
the extent to which an issue may affect the Company's financial performance). Based on the results, key ESG topics were 18 8 6
identified, prioritized, and disclosed in this report with corresponding responses. Meanwhile, the Company continues to 17 10
enhance its ESG management system to support long-term sustainable development. 15
Impact Materiality
Materiality assessment process 19 14
Based on an analysis of internal and external development trends, and with reference to macroeconomic
policies in the Company's areas of operation as well as industry-specific policies and standards, the
Company developed a list of ESG issues and identified 21 material issues, including both general and
industry-specific issues:
① The list was primarily developed with reference to the Self-Regulatory Guidelines No. 17 for Companies 7
Listed on Shenzhen Stock Exchange — Sustainability Report (For Trial Implementation). Additional
Issue references included other authoritative domestic and international sustainability reporting such as the ISSB
mapping Standards and GRI Standards.
and
② Mainstream ESG rating frameworks, both domestic and international (e.g., MSCI ESG Ratings, S&P
identification
Corporate Sustainability Assessment, and CDP Ratings), as well as sustainability issues of industry
Low Financial Materiality High
concern, were also taken into consideration;
③ Issues jointly prioritized by internal and external stakeholders were identified based on the Company's
sector characteristics, stage of industry development, business model, and position in the value chain,
in order to determine topics of either financial or impact materiality; Double materiality
④ Expert insights were also incorporated into the assessment process.
In line with the principle of dual materiality, the Company conducted both impact materiality and 2 Supply chain management 4 Addressing climate change 6 Adherence to business ethics
financial materiality assessments. This process resulted in the 2025 materiality matrix, which highlights
our most significant ESG issues and their prioritization for the year. The relevant stakeholders engaged
in the process include directors, senior executives, employees, customers, suppliers, investors, regulatory
Financial materiality
authorities, and the public.
Impact materiality：The assessment began with the definition of impact materiality factors and scoring 7 Compliant operations
intervals. Stakeholders evaluated the Company's material ESG issues based on two main dimensions:
Survey and severity of impact and likelihood of occurrence. Based on the survey results, the impact materiality of
assessment each issue was determined. The results were then reviewed and validated by both internal and external Impact materiality
ESG experts to ensure objectivity and accuracy.
Financial materiality: The assessment began with the identification of assessment factors and thresholds 8 Customer service 14 Emissions management 20 Corporate governance
for financial materiality. Each ESG issue was assessed based on whether it is expected to have a
significant impact in the short, medium or long term on the Company's business model, operations, 9 Innovation-driven development 15 Biodiversity conservation 21 Digital transformation
development strategy, financial position, operating results, cash flow, financing approach or financing
cost. The assessment results were reviewed and validated by the Company's directors, senior executives and interests
and internal and external ESG experts. 11 Data security and customer privacy 17 Employee training and development
protection
Based on the survey results, a materiality matrix was developed from two dimensions: impact materiality
Confirmation and financial materiality. The prioritization of ESG issues was finalized through a comprehensive review 13 Energy management 19 Social contribution
and and validation by the Company's senior executives and external experts. The prioritized issues are
response
highlighted in this report with focused disclosures.
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Technological
Excellence and
Superior Quality
Lead the Future
We firmly believe that true industry leadership
stems from the deep integration of green
technological innovation and an excellent
quality system. The Company focuses on
the field of high-end pharmaceutical and
agrochemical intermediates, continuously making
breakthroughs in key technologies such as
green catalysis, continuous-flow reaction, and
chiral synthesis. We strictly implement GMP
standards and ISO 9001 Quality Management
System, building a solid full-chain quality and
safety defense line covering R&D, production,
and delivery. Leveraging the CDMO platform,
we provide global customers with efficient,
compliant, and customized professional services,
while striving to build a safe, resilient, and
sustainable global supply chain. By systematically
integrating technology, quality, service, and the
supply chain, we continuously strengthen our
sustainable competitive edge.
Issues covered in this chapter
•Product safety and quality
•Customer service
•Innovation-driven development
•Supply chain management
•Responsible marketing
Contributing to UN SDGs
•Data security and customer privacy protection
Note: This picture shows the ABA Chemicals Shanghai Zhangjiang Innovation Center.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
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Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
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Adhering to innovation-driven Case Cutting-edge Achievements in New Energy Materials R&D
development During the reporting period, the Company's subsidiary Electroxolve Technology Co., Ltd. collaborated with
Central South University and Xi'an Jiaotong University, and achieved a breakthrough in the field of lithium-ion
The Company focuses on pharmaceutical and agrochemical CDMO, building an innovation ecosystem covering battery electrolytes. The relevant research results, titled “Synergistic Solvent Design Enables High-Performance
technological strategy, R&D systems, incentive mechanisms, and intellectual property, to continuously enhance Fluorine-Free Electrolytes for Lithium-Ion Batteries” , were published in the internationally renowned journal
technological barriers and customer value through high R&D investment and breakthroughs in green processes. Advanced Functional Materials, providing a new solution for the development of high-performance and
environmentally friendly battery materials.
Defining innovation strategy
The Company takes building systematic competitive advantages and driving the upgrade of the chemical industry
towards high-end and high-value development as our core innovation strategy, focusing on the two core businesses
Improving the R&D System
of CDMO for innovative pharmaceuticals and innovative agrochemical intermediates, and providing in-depth services
Relying on a full-chain innovation system covering “R&D–pilot–industrialization,” the Company actively integrates
to global originator pharmaceutical companies and leading agrochemical enterprises. We make forward-looking
cutting-edge technologies such as AI to continuously build efficient, collaborative, and green core competitiveness,
deployments in cutting-edge technology directions such as synthetic biology, microchannel continuous flow, and
thereby laying a solid foundation for high-quality development.
green catalysis, focusing on breaking through the bottlenecks of green synthesis processes with high selectivity, high
yield, and high efficiency. Relying on the “R&D - pilot - industrialization” full-chain innovation system, the Company
accelerates the transformation of technological achievements from the laboratory to large-scale production, and
through continuous technological iteration and platform capability building, provides customers with more reliable,
Building a full-chain innovation system
flexible, and cost-effective customized solutions.
The Company has established a full-chain innovation system covering “R&D - pilot - industrialization” , leveraging a
In terms of securing R&D investment, the Company remains committed to treating scientific and technological
technology network that synergizes four major domestic R&D centers with overseas R&D to accelerate the industrial
innovation as a strategic investment, continuously maintains a high level of R&D expenditure, and promotes the
transformation of technological achievements. Each center focuses primarily on independent R&D, supplemented
efficient transformation of technological achievements by carrying out joint R&D projects with universities and research
by external collaboration, and is deeply involved in the new product development of industry-leading customers,
institutions, ensuring deep synergy between R&D activities and our core business.
supporting the Company in providing efficient, market-demand-oriented customized services.
During the reporting period, the Company's two major projects were successively implemented. In October 2025, the
Case Key Breakthrough Achieved in Microchannel Continuous Flow Process pilot project of Workshop C93 at the Lanzhou Base was launched, focusing on the pilot scale-up of innovative drug APIs
and high-end intermediates. On November 29, Shaoxing ABA's innovative drug APIs and intermediates project officially
During the reporting period, the Company collaborated commenced, focusing on the R&D and industrialization of related products. The two major projects further improved
with Shanghai Jiao Tong University and successfully applied the Company's full-chain layout of “R&D - pilot - industrialization”, providing strong support for the development of the
microreactor technology to replace the traditional batch pharmaceutical business.
reactor process in a key step of trifloxystrobin synthesis—
the photobromination reaction. This technology resolved
bottlenecks such as poor heat and mass transfer performance
and low light utilization in the traditional process, significantly
improving process efficiency and safety. The related
achievements have been granted national invention patents
and published in the renowned international chemical
engineering journal AIChE Journal.
Shaoxing ABA's innovative drug APIs and intermediates project officially commenced construction
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Deploying AI + Automated R&D Case
Partnering with Leading Pharmaceutical Companies to Enhance Advanced Manufacturing
Capabilities in the Pharmaceutical Industry
Currently, China's pharmaceutical and fine chemical industries are moving towards a new stage of high-quality development.
The government has intensively issued multiple policies to encourage the digital and intelligent transformation of the In August 2025, the Company entered into a strategic partnership with Hengrui Pharma to jointly promote
pharmaceutical industry and the high-end upgrading of fine chemicals, support the deep application of AI in drug research advanced pharmaceutical manufacturing and technological upgrades. Hengrui Pharma possesses deep R&D
and development, and promote the development of efficient, safe, and environmentally friendly products and intermediates. expertise and a rich pipeline in major disease areas such as oncology, metabolism, cardiovascular, immunology,
As the core support for pharmaceutical manufacturing, the market demand for pharmaceutical intermediates continues to be and neuroscience. Through CDMO collaboration
unleashed, but the industry generally faces pain points such as outdated R&D models, long cycles, high costs, and low levels
with it, the Company is able to deeply participate
of digitalization, which restrict the pace of industrial upgrading. At the same time, AI-driven R&D has become the mainstream
in the process development and manufacturing
trend in the industry, and industry-academia-research collaborative innovation has become the key to industrial development.
of innovative pharmaceutical intermediates and
The Company is deeply engaged in the field of fine chemicals and pharmaceutical intermediates, possessing profound technical
active pharmaceutical ingredients (APIs), and
accumulation and a professional R&D team. To overcome industry bottlenecks, respond to policy guidance, and consolidate our
industry position, the Company is actively exploring the application of AI in the R&D field, relying on industry-academia-research gain exposure to cutting-edge drug modalities
resources to deploy an AI + automated R&D system, facilitating the green and intelligent transformation of the industry, and and complex synthesis technologies, thereby
achieving our own high-quality development. continuously optimizing our R&D system, improving
technical response capabilities, and enhancing
comprehensive innovation strength in the
Improving innovation mechanisms integration of high-end intermediates and active
pharmaceutical ingredients (APIs) .
The Company has established an innovation center as the core R&D institution, whose work is characterized by specialization,
a systematic approach, interdisciplinary collaboration, and market orientation. The related intellectual property is incorporated
into the Company's core strategic assets for systematic management. Centering around the full innovation cycle, the
Company has established a policy system covering new product development, talent development, project transfer, and Protecting Intellectual Property
transformation of achievements, including the Design and Development Plan, Innovation and Entrepreneurship Management
Measures, Management Measures for the Further Education of Researchers, and Project Transfer Management System. With the Intellectual Property Management Measures at its core, the Company clarifies the scope of intellectual
property and the ownership of work-related achievements, and establishes a collaborative and coordinated
In terms of incentives and support, the Company clarifies the benefit-sharing mechanism through the Management and
organizational mechanism led by the Technology Center/R&D Center, with part-time personnel assigned in various
Reward Measures for the Transformation of Scientific and Technological Achievements, and provides immediate bonuses to
patent inventors in accordance with the Intellectual Property Management Measures. At the same time, we set up special business departments. We have formulated supporting documents such as the Information and Knowledge Exchange
funds to support idea incubation, establish a technology matchmaking and transformation platform, and systematically build Control Procedure and the Technical Document and Data Management Control System to standardize the intellectual
an innovation ecosystem from idea to industrialization. During the reporting period, Puyi Chemical provided RMB668,100 in property assessment, application, archiving, and confidentiality processes at all stages of R&D, and comprehensively
support funds for creative projects. prevent information leakage and ownership disputes by signing confidentiality agreements with employees handling
In addition, the Company actively builds an industry-university-research cooperation network and promotes the capacity classified information, implementing classified and
building of R&D platforms. During the reporting period, the subsidiary Jiannong Plant Protection was recognized as a controlled management of technical documentation,
Provincial Enterprise Technology Center, a Specialized, Refined, Differentiated, and Innovative (SRDI) SME, and a High-tech and mandating the inclusion of intellectual property
Enterprise; Yihui Biotechnology hosted the Seventh “Applied Synthetic Biology” Special Forum; Puyi Chemical, as the lead ownership and confidentiality clauses in all external
drafting unit for the “Pharmaceuticals” sub-field of the group standard Classification of Fine Chemical Products , deeply technical cooperation contracts. Meanwhile, the
participated in the formulation of industry rules, continuously enhancing its technical influence and industry leadership. Company incorporates trade secret protection into new
employee onboarding training and regularly conducts
confidentiality training for all employees, continuously
strengthening their confidentiality awareness and rule
execution capabilities to effectively ensure the timely
confirmation of rights and effective protection of
innovation achievements. Intellectual Property Training Held by Jiannong Plant Protection
Key performance
During the Reporting Period, the Company applied As of the end of the Reporting Period, the Company
for
Group photo of the Seventh “Applied Synthetic Biology” Special Forum
ABA Chemicals
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Strictly controlling quality and safety Risk type Risk description Impact duration
Financial
impact
The Company relies on a clear governance structure to supervise and manage quality and safety risks, sets the direction During the operation of the management system, risks may
with forward-looking strategic planning, fortifies the line of defense with systematic risk control, and drives continuous occur, such as a disconnect between the documentation
improvement by setting quantitative indicators and targets, thereby building and continuously optimizing a quality and system and actual operations, and process drift caused
Systemic vulnerabilities
safety assurance system covering the entire process. by ineffective change control. Additionally, systemic Short term, medium
and gaps in personnel High
vulnerabilities may emerge due to the departure of key term, long term
competencies
personnel or inadequate training, which can subsequently
Governance dimension impair the effective operation of the quality system and lead
to regulatory compliance risks.
The Company has established a dedicated quality management department, built an all-employee quality
responsibility system from the general manager to each operational position, and all production bases continuously There may be compliance risks arising from failure to adapt
and effectively operate quality management systems that comply with industry standards. The Company has to evolving regulations, or market access barriers due to the
simultaneously formulated and implemented standardized system documents such as the Quality Risk Management Compliance failures
lack of integration of green and safety design into R&D, as
and sustainable Medium term, long
Procedure, GMP System Risk Assessment Procedure, Change Control Procedure, and Process for Controlling well as the dilution of the quality culture affecting the post- High
development term
Nonconforming Output to systematically ensure the quality, safety, and compliance of products throughout their M&A management system, thereby impacting corporate
challenges
life cycle. On this basis, the Company regularly evaluates the effectiveness of the system's operation through market access and brand reputation and resulting in the risk
annual self-inspections, management reviews, and internal audits, and cascades quality objectives level by level of regulatory penalties.
to all departments, incorporating them into monthly and annual performance appraisals to ensure that quality
responsibilities are implemented at all levels, thereby driving the continuous optimization of the quality management
system and the constant enhancement of quality awareness among all employees.
Strengthening process control and rapid response
Key performance
To ensure the continuous provision of high-quality products and services, the Company has established a systematic
In 2025, the Company's main production bases successfully passed a series of
quality assurance system. This system is centered on standardized procedures, covering the entire process from
quality system audits and official certifications, specifically including:
production task formulation, process execution, equipment usage, and process monitoring to packaging, transportation,
and delivery. The Company has established clear quality standards and analytical procedures for raw materials,
System certification
intermediate products, and finished products, and through strict monitoring and measurement control procedures,
Main production bases have passed the ISO 9001 surveillance or recertification ensures that all inspection activities are executed as planned, guaranteeing the delivery quality of final products.
audits. The scope of certification covers the R&D, production, and sales of multiple products,
including active pharmaceutical ingredients (APIs), pharmaceutical intermediates, pesticides and During the production process, the Company strengthens the management of key process parameters, key materials,
pesticide intermediates, chemical products, and biological enzyme preparations. and key processes. The Company strictly implements the Change Control Process, systematically evaluates and
tracks all changes that may affect quality, and introduces external safety evaluations and expert reviews for major
Official inspection process changes. Through an effective deviation handling mechanism and non-conforming product management
The Taicang Base successfully passed the renewal inspections for the Drug Manufacturing License procedure, we ensure that abnormalities are promptly corrected to avoid unintended use. In addition, the Company
and the Certificate for Export of Active Pharmaceutical Ingredients to the EU conducted by the Jiangsu has established the Product Recall Management System and conducts regular drills to ensure a rapid response
Medical Products Administration. when necessary, safeguarding customer and public safety. For non-conforming products, non-conformities, or
incidents that occur, the Company conducts in-depth root cause analysis and formulates corresponding corrective
Strategy and preventive measures, thereby continuously improving the product assurance system and driving the continuous
enhancement of the quality management level.
During the Reporting Period, focusing on potential quality risks such as deviations and fluctuations in the
production execution process, the Company established a quality assurance and continuous improvement
mechanism throughout the entire production chain, and systematically consolidated the quality foundation and
enhanced response capabilities through measures such as standardized control, personnel empowerment, system
reinforcement, and green design.
Financial
Risk type Risk description Impact duration
impact
During the production execution process, risks such as
improper control of key process parameters, operational
Deviations and
errors, and failure to follow SOPs may occur, or batch
fluctuations in the Short term, medium
quality issues may arise due to sudden equipment failures or High
production execution term, long term
packaging and labeling errors, which in turn affect product
process
quality stability, resulting in decreased production efficiency
and quality accidents. Scenarios of Quality Control Process and Inspection Process of the Company
ABA Chemicals
ABA Chemicals
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and Corporate
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Strengthening the foundation of the system and enhancing Practicing green concepts throughout the entire process
practical abilities
The Company adheres to the green design concept of “source reduction and full-cycle control,” integrating cleaner
The Company continuously conducts systematic quality training to comprehensively enhance employees' quality production and intrinsic safety principles throughout the product R&D and production processes. By reducing the
awareness and professional competence. All production bases strictly implement the training management system, use of hazardous materials, seeking safe alternatives, and optimizing process conditions, we prevent pollution and
systematically conducting new employee onboarding quality training, regular on-the-job refresher training, and reduce energy consumption from the design stage to minimize the environmental impact throughout the product's
specialized training on the creation and updating of SOPs. The training content covers the Regulations on the full life cycle.
Administration of Pesticides , core requirements of pharmaceutical GMP, and product quality standards, and focuses
on basic quality knowledge, record management, contamination control, and practical operations such as sampling,
cleaning, and labeling. At the same time, the Company invites external experts to give lectures, introduces advanced Promoting green raw materials and process substitution
practices, and continuously enriches training resources. Building on the implementation of training, the Company
•In the production of a pesticide intermediate product, 1,1-dichloroethane in the
simultaneously establishes a training effectiveness evaluation and assessment mechanism to promote the effective
sulfonation section is replaced with the less toxic dichloromethane, reducing
conversion of knowledge into practical on-the-job skills.
environmental and health risks, while improving the solvent reuse rate and
In addition, the Company regularly conducts the promotion of quality standards and management reviews, and reducing waste generation.
identifies improvement opportunities based on data trend analysis, thereby ensuring that training content precisely •A certain pharmaceutical intermediate product adopts biological enzyme
addresses practical problems and continuously enhancing the targetedness and effectiveness of the training system.
technology to replace traditional chemical processes, achieving efficient, low-
energy, and pollution-free production.
•In the field of pesticide formulations, we replace highly toxic raw materials with
low-toxicity ones, and promote the use of green formulations such as suspension
concentrates to reduce harm to the environment.
Developing green and low-carbon products
•A pharmaceutical intermediate product adopts microchannel reactor technology
to achieve closed, continuous, and precise control of the reaction process,
Specialized Training on the 2025 Jiangsu Province Training on the Revisions to Pharmacopoeia 2025 significantly reducing safety risks and enhancing environmental benefits.
Quality Credit Rating Certification
Case Promoting Learning through Examinations and Empowering through Intelligence
Implementation of green packaging design
The Company innovated training methods by deeply integrating external authoritative assessments with
•For materials such as methanol and toluene, we change the packaging from
internal system optimization, and organized personnel in key positions at the Taicang Base to participate in
the unified examination held by the Suzhou Inspection Branch of the Jiangsu Medical Products Administration.
repeated recycling. For packaging drums for materials such as sulfuric acid, we
By “promoting learning through examinations,” we stimulated the initiative of all employees to systematically
implement inkjet coding identification management to promote recycling, reduce
study pharmaceutical laws and regulations, and all participants successfully passed. At the same time, we
packaging material consumption, and reduce material residue.
engaged a third-party professional agency to conduct a comprehensive review and iterative optimization of
over 200 system documents and promoted collaborative participation across multiple departments in the
revision process, enabling employees to deepen their understanding of GMP requirements during document
optimization and achieving “learning while revising, revising while learning.”
Implementation of source reduction and inherent safety design
•During the design stage, we use the Inherently Safer Process Checklist as a
guiding tool to systematically implement the principles of reduce use, safer
substitution, and moderate processes.
•Through ongoing cleaner production audits, we identify and implement process
optimization solutions aimed at energy saving, consumption reduction, pollution
reduction, and efficiency improvement, improving resource utilization efficiency at
the source and reducing pollutant emissions.
ABA Chemicals
ABA Chemicals
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and Corporate
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Risk management
The Company has formulated documents such as the Quality Risk Management Procedure and the GMP System Risk
Assessment Procedure. Based on specialized procedures and quantitative tools, we accurately identify and control Indicator Unit 2025 target
value
key stages throughout the entire production process and conduct comprehensive assessments relying on multi-
channel information inputs, while achieving closed-loop risk management and continuous improvement through Number of quality-related complaints Time ≤ 1 time/month 0
event-triggered and periodic review mechanisms.
Audit pass rate for product release % 100 100
Risk management framework and core methods
The Company has established a closed-loop quality management process that includes
Compliance and accuracy rate for material storage
assessment, control, communication, and review. It uses flowcharts, checklists, and trend % ≥ 98 100
and handling
analysis for preliminary risk identification, and employs Failure Mode and Effects Analysis
(FMEA) as a core quantitative tool. By analyzing the likelihood, severity, and detectability Labeling non-conformities identified during
Item ≤ 2 items/quarter 0
of failures, the Company calculates the risk priority numbers to objectively rank risks and inspections and audits
implement tiered risk management.
Instances of uncontrolled non-conforming
Time ≤ 1 time/year 0
products
Sources of input information for risk assessment
First-pass inspection accuracy for raw materials,
The input information for risk assessment is derived from various aspects of daily operations % 98 Target achieved
products, and intermediates
and quality management, including quality management system processes, various quality
events, change control, periodic review data, validation status, and personnel competency
Timely reporting and documentation rate of out-of-
assessment results. % 100 100
specification (OOS) cases to QA
Timely deviation reporting and documentation rate
Mechanisms for ongoing risk monitoring and review % ≥ 90 100
to QA
We conduct immediate follow-up and re-assessment through event triggers and measure
verification; conduct a systematic annual review of all identified risks, and record the entire
Change management compliance % ≥ 95 100
process in the risk register ledger to achieve closed-loop risk management and continuous
improvement.
Equipment fault resolution timeliness rate % ≥ 98 Target achieved
Indicators and targets Equipment maintenance timeliness and record
% ≥ 98 Target achieved
The Company has set clear and quantifiable quality indicators and targets, continuously tracks various indicators accuracy rate
through the monthly quality target assessment form, and has established a quality information management system
to ensure data integrity and traceability. As of the end of the reporting period, the completion rate of major quality Measuring instrument calibration compliance rate % ≥ 95 Target achieved
targets reached 100%.
Indicators Unit 2025 target Infrastructure fault resolution timeliness rate % ≥ 98 100
value
Timely updates of manuals for the three
Time ≥ 1 time/3 years 1
management systems Contract fulfillment rate % ≥ 98 100
Internal audit implementation status for the three
Time ≥ 1 time/year 1
management systems
Customer satisfaction rate % ≥ 95 Target achieved
Management review implementation status Time ≥ 1 time/year 2
ABA Chemicals
ABA Chemicals
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and Corporate
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Creating high-quality services Customer service management
The Company is committed to systematically building a trustworthy service system through responsible marketing The Company always starts with sincere listening and, through attentive
and communication, professional and efficient customer service management, and strict protection of data security and professional service processes, accompanies and supports customers
and customer privacy, and we are dedicated to exceeding customer expectations at every stage to achieve mutual in solving problems and creating value. To systematically enhance service
growth. quality, the Company has formulated the Customer Service Management
System as the fundamental basis for service management, clarifying
service objectives and the overall principles of key processes such as
Responsible marketing customer information management, reception and response, complaint
Key performance
The Company has established a closed-loop management system handling, follow-up tracking, and relationship maintenance. Concurrently,
for responsible marketing covering policies, implementation, and we have introduced supporting institutional documents such as the
supervision. By establishing internal policies such as the Responsible During the reporting period, Customer Service Quality Monitoring Plan, establishing a customer service
Marketing Assurance Plan and incorporating the requirements of the Company had management system that covers all processes and elements, and laying a
solid institutional foundation for a high-quality customer experience.
external regulations—such as the Advertising Law —into employee
handbooks and incentive and disciplinary systems, we clearly
define the “red lines” for marketing compliance at the strategic incidents of non-compliant Closed-loop management of customer complaints
level and systematically mitigate legal and ethical risks. Building
marketing.
on this, we regularly conduct mandatory regulatory training and The Company classifies and manages customers by establishing and continuously updating a customer information
typical case studies, establish a multi-departmental collaborative database. On this basis, the Company requires customer service personnel to warmly receive customers in a
review mechanism prior to the release of marketing materials, and standardized manner, and promptly record, classify, and handle all inquiries and complaints. In response to customer
strengthen the team's compliance awareness and professional complaints, the Company has established a clear time-bound handling mechanism to ensure responses within the
capabilities to ensure that external promotional content is truthful, specified time and continuous tracking and follow-up until the customer is satisfied. At the same time, the Company
accurate, and verifiable. At the same time, we rely on internal also proactively conducts regular follow-ups via phone, email, and other methods to systematically collect customer
audits, customer feedback, and internal reporting channels to build opinions and suggestions. In addition, we deepen customer relationships by providing value-added services such as
a three-pronged supervision network, strictly pursue accountability technical guidance to key customers and organizing various customer activities.
for violations, and promote problem rectification and process
optimization, ensuring that the responsible marketing system
remains continuously effective and achieves tangible results.
Customer Complaint Handling Process
Marketing Information Review Control Process
Acceptance and Response and Resolution and Follow-up and
Content review Collaborative verification Information filing
recording handling communication return visit
Customer service According to the We address customers' We track and conduct
personnel warmly process, complaints are reasonable requests in a return visits for resolved
receive customers, routed to designated timely manner; provide complaints to confirm
We establish a product The Company's marketing For important marketing
listen patiently, and responsible departments patient explanations whether customers
promotional content review department work closely with R&D, decisions or customer
promptly record the and personnel for for unreasonable are satisfied with the
mechanism, under which production, and other departments commitments, the Company
content of customer handling. The Company requests, and maintain handling results.
personnel with professional to ensure that marketing information requires sales personnel to complaints, classify and requires that an initial communication with
knowledge conduct is consistent with actual product submit a written application in handle complaints, and response be provided to customers throughout
comprehensive reviews of conditions. Marketing personnel are advance and execute it only ensure the information is the customer within the the handling process.
marketing materials, advertising required to accurately understand after it has been filed with the accurate and error-free. specified time.
copy, etc. product performance, and Company and approved.
exaggeration of efficacy is prohibited.
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Forms of Technical Exchange and Service Information and data security protection
The Company, taking Overall Policy and Security Strategy for Cybersecurity as the overarching guideline and Data
Security Management System as the core, has established a policy system covering the entire data lifecycle, clarifying
Technical guidance Through objective and clear presentation of outcomes, we help customers
the protection requirements for data confidentiality, integrity, and availability, and standardizing the management
and validation of more accurately assess product value, thereby providing strong support for their
processes across all stages from storage and access to destruction. To ensure the implementation of responsibilities,
results application decisions.
the Company has established an information security working group led by management, set up dedicated
positions such as system management and security management, and clearly defined the division of responsibilities.
conducts policy review and revision at least once a year. During the reporting period, the working group completed
Through training, on-site guidance, and other methods, we share relevant product routine security inspections as scheduled, and key control points such as backup records and audit logs were
Knowledge sharing
knowledge and usage skills with our customers to help them use products more verified. Regarding the areas for improvement identified during the grade protection assessment, the Company has
and skill transfer
effectively and promote joint improvement in professional capabilities for both parties. incorporated them into its continuous improvement mechanism and is promoting the dynamic optimization and long-
term operation of the information security system through policy revisions and specialized training.
We organize technical exchange meetings, product demonstrations, and other
Regular Core Data Security Protection Measures
activities to establish stable communication channels, so as to more directly
communication and
understand customers' usage and feedback and continuously improve our products
feedback on needs
and services. Access and encryption Operations and Data backup and secure
controls maintenance security audit storage
Strict user authentication and The system has enabled the Local backups of critical business
role-based least-privilege security audit function to record data are performed daily and
access controls are enforced all important user operations and retained for a specified period,
for all users. Effective protection system events, and protect logs and key data are stored in a
measures such as encryption from tampering, ensuring that controlled, secure physical
are adopted for sensitive all data access behaviors are environment.
data, including customer traceable.
authentication information,
during transmission and storage.
Jiannong Plant Protection promoted the prevention and control of wheat rust in Jiangsu, Anhui, Henan, and other regions
Key performance
Service quality monitoring The Company's core business system
The Company experienced
· successfully passed the National
The Company has set core performance indicators such as customer complaint rate, timely issue resolution rate,
customer satisfaction score, customer follow-up rate, and service response time, and has defined specific target values
Cybersecurity Classified Protection Level 2
Assessment
for each indicator. To monitor the achievement of the targets, the Company conducts real-time tracking through a data
statistical analysis system, gathers information through multiple channels such as regular customer satisfaction surveys,
feedback from complaint platforms, and regular internal audits, and directly incorporates service quality indicators into
Customer privacy protection
the performance appraisals of customer service personnel. For situations where targets are not met, the Company
initiates systematic handling procedures, including conducting an in-depth analysis of the causes, formulating targeted The Company has established and implemented the Customer Privacy Protection Plan , systematically standardizing
improvement measures, and continuously tracking and evaluating the effectiveness, and enforces corresponding the full lifecycle management of customer information. The policy specifies the principles of lawful, legitimate, and
accountability or provides incentives based on the results, ensuring that service issues are effectively resolved and necessary collection, implements technical and management measures such as encrypted storage and strict access
promoting the continuous improvement of service quality. control, and restricts data sharing, requiring that any such sharing be subject to a confidentiality agreement with the
third party. At the same time, through continuous employee training, privacy protection requirements are internalized
as a code of conduct for all employees.
Data security and customer privacy protection In addition, the Company conducts regular special internal audits to review compliance, invites independent third-party
organizations to evaluate its customer privacy protection measures and policies, and has established customer privacy
The Company establishes and continuously improves management and technical systems to provide comprehensive complaint channels to ensure timely responses. Through a combination of policies, technology, training, and oversight,
and regular protection for information security and customer privacy. the Company continues to provide robust safeguards for customer data security.
ABA Chemicals
ABA Chemicals
Corporation
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Social,Social,
and Corporate
and Corporate
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(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
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Building a resilient supply chain Risk type Risk description Impact duration Financial
impact
The Company continuously strengthens the supervision and control of supply chain risks, building a robust, reliable, Inconsistent quality of supplier product batches or failure Short term,
Quality and
and stable supply chain through a systematic management system and rigorous implementation. to meet new standards leads to a decline in the Company's medium term, High
consistency risks
product qualification rate, returns, or recalls. long term
Severe fluctuations in raw material prices and weak
Governance dimension Cost and price
volatility risks
bargaining power caused by a single-supplier monopoly
Medium term,
long term
Moderate
erode profit margins.
The Company has established a management structure that integrates the headquarters supply chain management
Excessive reliance on a single or a few suppliers, leading to Medium term,
platform with the procurement execution at various production bases. The headquarters level is responsible for Over-reliance risk Moderate
a lack of supply chain resilience. long term
strategic planning, platform development, and resource coordination, while the various production bases are
responsible for the implementation of specific procurement tasks and the day-to-day management of suppliers. At
each production base, the division of responsibilities among various departments is clearly defined. The Procurement
Supplier onboarding management
Department leads supplier sourcing, qualification collection, and directory maintenance. The Quality Assurance (QA)
Department, as the core supervisory department, is responsible for qualification review, on-site audit organization, The Company has established a multi-dimensional evaluation mechanism to ensure the source is controllable.
and the approval of qualified suppliers. Meanwhile, departments such as the Technical Department, Production Based on the impact of materials on product quality, we implement a three-level classification management for
Department, Safety Department, and Logistics Department collaboratively participate in processes such as technical suppliers: critical, important, and general. We simultaneously embed ESG risk assessment, incorporating sustainability
assessment, production verification, safety audits, and arrival inspections based on their areas of expertise, forming performance such as environmental protection, labor rights, and business ethics into the comprehensive screening
a multi-departmental coordinated audit mechanism. criteria. Meanwhile, we implement the principle of having no fewer than three qualified suppliers for the same
material, and prioritize partners with independent production capacity or regional layout advantages to strengthen
To ensure standardized and orderly management activities, the Company has formulated and implemented
supply diversity and risk resilience from the source.
a series of system documents, including the Supplier Management System , the Supplier Environmental
Behavior Management System, and the Supplier Confirmation and Audit Management Procedure . Key
Supplier Onboarding Criteria
decisions such as the onboarding, approval, and revocation of all suppliers must be formally approved by
the head of the Quality Assurance Department or the leader in charge, and records of the entire process
Basic legitimacy criteria
are systematically archived to ensure traceability. Furthermore, the Company establishes a continuous
and effective closed-loop supervision system for qualified suppliers through regular annual performance
•Possess a legal and valid business license;
evaluations, qualification document reviews, and periodic on-site audits of key suppliers.
•If hazardous chemicals are involved, a Work Safety License/Operating License, Safety Data Sheet
(SDS), and safety labels must be provided;
Strategy •Provide a valid quality inspection report (COA) for at least one batch of products.
During the reporting period, in response to potential supply chain risks such as compliance and reputational
risks, technological iteration and disconnection risks, and supply disruption risks, the Company established
Quality and capability criteria
three major goals of “strengthening resilience, deepening synergy, and fulfilling responsibilities” , and
integrated supply chain risk management throughout the entire lifecycle from supplier onboarding,
•Possess a sound quality management system (obtaining ISO and other certifications is encouraged);
cooperation, and monitoring to exit, systematically building a modern supply chain system that is safe and
•Production facilities, equipment, and testing instruments can meet product quality and capacity
reliable, mutually beneficial, green, and compliant.
requirements;
•Be able to provide small samples according to the Company's requirements and pass the Company's
Risk type Risk description Impact duration Financial
impact internal full-item testing;
•For key and important materials, it is required to cooperate in completing questionnaire surveys and
Suppliers violate environmental, safety, and labor Short term, small-scale testing/production verification.
Compliance and
regulations, causing the Company to face regulatory medium term, Moderate
reputational risks
penalties, litigation, and damage to brand reputation. long term
Suppliers' technology is outdated and unable to meet the
Risk of technology Sustainable development (ESG) and social responsibility criteria
Company's needs for product upgrades or green process Medium term,
iteration and Moderate
transformation, resulting in the Company losing market long term
disconnection
competitiveness. •Comply with national laws and regulations regarding environmental protection, safety, and
Key suppliers may experience sudden supply disruptions occupational health;
Short term,
Risk of supply due to quality incidents, poor operations, environmental •No adverse records in areas such as ethical conduct, labor rights, and human rights;
medium term, High
disruption protection shutdowns, or geopolitical factors, which may •Accept the Company's on-site quality audits and ESG performance assessments.
long term
affect the continuity of production.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
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and Corporate
and Corporate
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Governance
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ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
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Key performance Dynamic management and control mechanism
penalizing inferiority, and closed-loop management” by implementing tiered correction and exit accountability for
Tiered corrective Exit and accountability Positive incentive
suppliers have passed Occupational Health and Safety Management System certification measures traceability guidance
(such as ISO 45001)
For suppliers that fail the When suppliers provide materials that For outstanding suppliers,
evaluation or have issues, cause a major quality impact, still fail we establish strategic
we implement graded the re-evaluation after rectification, partnerships through incentive
Cooperation execution management
measures including written or fail the annual evaluation, the exit policies such as order priority
contracts, quality agreements, integrity agreements, and other documents, we explicitly require suppliers to comply rectification, order reductions, procedure is initiated. Suppliers are and favorable payment terms
with national laws and regulations and fulfill ESG obligations such as environmental protection, anti-corruption, and suspension of supply responsible for compensating for to ensure a long-term, stable,
and labor protection, making this a basic prerequisite for cooperation. For key suppliers, we conduct on-site audits, qualification. losses resulting from quality issues or and high-quality supply.
annual performance communications, and joint efforts in process optimization, and while improving delivery quality delivery delays caused by them.
and efficiency, we support their technological upgrades and green transformation. In addition, leveraging the global
network of production bases and advanced processes such as green synthesis and continuous flow, we enhance the
stability and resilience of the supply chain from the production end. Risk management
The Company's Internal Control System explicitly incorporates core supply chain segments into key business control
Continuous monitoring and management activities, establishing the policy foundation for risk management. Meanwhile, the internal audit system includes the
supply chain segment within its supervisory scope, ensuring the independence and authority of risk management.
The Company conducts on-site reassessments of tier-1 suppliers at least once every three years, primarily relies on
document reviews for tier-2 and tier-3 suppliers, and conducts timely re-evaluations when major changes or quality
Risk identification Assessment and prioritization Monitoring and improvement
issues occur. At the same time, key indicators such as quality, delivery, and ESG performance are incorporated into
monthly and annual performance assessments, and the assessment results are directly linked to order allocation and Mainly, the business We analyze the identified risks Ongoing monitoring is conducted
cooperation priority, driving continuous improvement among suppliers. departments conduct in terms of their likelihood of through regular internal audits,
preliminary screening through occurrence and potential impact,
management reviews, and tracking of
Differentiated Supplier Assessment Strategy daily operational activities assess and determine their
such as supplier management risk levels, and prioritize them key indicators. Risks identified through
Annual comprehensive Ad hoc evaluation and and contract review, and the accordingly. audits and rectification requirements
Periodic on-site audits
assessment reassessment Audit Department conducts are incorporated into the Company's
All suppliers listed in the Tier-1 suppliers: Conduct an Triggered reassessment: When a systematic identification
unified reporting and tracking system to
Approved Supplier List undergo on-site quality audit at least supplier undergoes major changes through special audits.
ensure a management closed loop of
a comprehensive annual once every three years. For the or experiences quality issues, has
performance evaluation at first audit, conduct it before multiple non-conformities within “Identification-Rectification-Review” .
least once a year to review onboarding whenever possible, one year, or shows abnormal quality
their quality, delivery, service, and complete it no later than one trends during the annual review,
price, and the validity of their year after onboarding. a special reassessment is initiated
qualifications.
Tier-2 and Tier-3 suppliers:
immediately. Indicators and targets
Focus primarily on document Continuous qualification review:
By setting and exceeding supply chain key performance indicators, the Company effectively ensures the
reviews and annual assessments. The Company's Procurement
comprehensive implementation of material supply efficiency and environmental compliance management.
If major quality issues or changes Department and Quality Assurance
occur, an on-site audit may be Department continuously monitor
initiated at any time. the validity of supplier qualifications, Indicators Unit 2025 target
value
and request updates before
documents expire to ensure their Rate of notification regarding environmental
validity. requirements when signing various business % 100 100
contracts with suppliers/contractors
Supplier/Contractor qualification approval rate % 100 100
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Green Development
and Enduring
Protection of
Nature
We firmly believe that corporate sustainable
development is rooted in harmonious coexistence
with nature. The Company strictly adheres to the
bottom line of compliance, addresses climate
change with a forward-looking perspective,
practices resource conservation throughout
the entire production process, and controls
emissions with the strictest standards. Meanwhile,
we extend the responsibility of environmental
protection to the safeguarding of biodiversity,
have established a systematic and multi-level
environmental action system, and are committed
to protecting clear water and green mountains in
the course of its development.
Issues covered in this chapter
•Environmental management
•Addressing climate change
•Water resources management
•Energy management
•Emissions management
•Biodiversity conservation
Contributing to UN SDGs
Note: The picture shows the ABA Chemicals Binhai Base.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Environmental compliance management Strategy
The Company integrates environmental compliance requirements into operational systems and relies on In response to potential environmental risks such as environmental compliance risks and risks of
the ISO 14001 system to improve systems, prevent and control risks, ensure investment, promote cleaner environmental emergencies, the Company has fully integrated environmental protection into our
production and green manufacturing, and strengthen emergency response and training, comprehensively development strategy and daily operations, systematically advanced environmental management,
enhancing our environmental compliance level and sustainable development capabilities. focused on building a green manufacturing system, and continuously optimized processes and reduced
consumption through cleaner production audits. Each production base has established emergency
response mechanisms and conducts regular drills, strengthens environmental protection training for
Governance dimension Key performance employees and information disclosure, so as to comprehensively improve environmental performance and
risk prevention and control capabilities.
The Company has established an environmental governance Total environmental
structure featuring unified guidance, tiered responsibility, and full protection investment
participation, ensuring that environmental protection efforts follow Financial
Risk category Risk description Impact duration impact
established rules and responsibilities are assigned to individuals.
ten thousand RMB
Organizational and leadership responsibility Increasingly stringent environmental regulations
pose risks of administrative penalties and orders to
Our top management bears ultimate responsibility for environmental performance. Short term,
suspend production for rectification due to excessive
medium term, High
Each production base has established a dedicated environment, health and safety emissions, environmental emergencies, or non-compliant
long term
(EHS) management department, with a professionally qualified team responsible for environmental management, directly affecting the continuity
Compliance risk and stability of production and operations.
day-to-day supervision and management. In addition, we have established a company-
wide environmental protection responsibility system spanning from subsidiary heads
and the EHS Director to all departments, workshops, and teams, ensuring that
environmental protection responsibilities are embedded in every operational process.
There are inherent risks in chemical production, hazardous
Short term,
Systems and framework assurance chemicals storage, and other processes, where safety
medium term, High
incidents such as leaks, fires, and explosions may trigger
long term
The Company has established a clearly tiered and comprehensive environmental secondary environmental pollution.
Risk of environmental
management policy system. Main production bases have obtained and continuously emergencies
maintained the international certification for ISO 14001 Environmental Management
System, achieving standardization and internationalization of management.
Meanwhile, based on their own characteristics, all production bases have formulated
and implemented a series of documents covering the Environmental Protection
Frontline employees may have weak environmental
Responsibility System, Environmental Risk Hazard Investigation and Handling System,
awareness or be unfamiliar with equipment operating
Emergency Management System for Environmental Emergencies, and Environmental Short term,
procedures, which may lead to fugitive emissions,
medium term, High
Protection Training and Assessment System , thereby forming an institutionalized malfunctions caused by improper operations, or improper
long term
Risk of employee handling at the initial stage of an incident, causing minor
management network.
operational errors and issues to escalate into major events.
inadequate skills
Supervision, appraisal and investment
We incorporate environmental performance into the routine performance appraisal
system for each base and employees, conduct supervision through monthly inspections
The public, customers, and investors are paying increasing
and special audits, and link appraisal results to incentives, thereby strengthening all attention to the environmental performance of enterprises.
employees' awareness of environmental responsibility and promoting the effective Poor environmental management or a lack of transparency Medium term,
High
may damage the Company's reputation, affect the market long term
implementation of environmental management measures. Meanwhile, we earmark
competitiveness of its products, and even impact financing
special funds for environmental protection in the annual budget and ensure they Corporate reputation
activities.
and market access risk
are used exclusively for their intended purposes, meeting funding needs for the
construction, operation and maintenance, and technological upgrading of pollution
control facilities.
ABA Chemicals
ABA Chemicals
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Social,Social,
and Corporate
and Corporate
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Governance
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ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
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Systematic Environmental Management Practices
We systematically identify potential risk points by combining process analysis, on-site
observation, and departmental discussions. The identification process covers the full life
Green manufacturing system development cycle of production activities, products, and services, and specifically examines environmental
impacts across the past, present, and future, as well as under normal, abnormal, and
The Company is committed to the development of a green manufacturing system and regards it as an
emergency operating conditions. The scope of identification includes discharges of water and
important driver for promoting green and low-carbon industrial development. During the reporting period, our Risk
subsidiary Nantong ABA successfully obtained the “2025 Jiangsu Province Green Factory” certification; the air pollutants, noise, solid waste management, energy and resource use, soil and groundwater
identification
Lanzhou base was recognized as a municipal-level green factory and has initiated the application process for pollution, and other local environmental issues.
provincial-level green factory status.
We use appropriate evaluation methods for different types of risks to determine key
Cleaner production audit control priorities. For routine environmental factors, we adopt a multi-factor evaluation
method, scoring five aspects: scope of impact, severity, frequency of occurrence, regulatory
We regard cleaner production audits as a strategic tool to systematically enhance environmental performance.
compliance, and public concern, and based on these results, determining significant
Multiple bases have completed the cleaner production audits required by the government. By implementing
a series of measures, including process optimization, equipment upgrades, and the development of energy environmental factors. For safety risks that may trigger environmental incidents, we use the
management systems, we effectively reduce the material consumption, water consumption, and energy LEC Assessment to conduct graded evaluations. For environmental emergencies, we strictly
Risk assessment follow the Risk Classification Method for Enterprise Environmental Emergencies, quantitatively
consumption per unit of product, and reduce pollutant generation at the source.
and prioritization calculating inventories of risk substances, assessing process and control levels, and analyzing
surrounding environmental sensitivity, ultimately determining the risk level.
Emergency preparedness and response
All of our production bases have prepared emergency plans in accordance with applicable laws and filed
We monitor risks continuously through multiple approaches. At the operational level, we
them with the competent local authorities, specifying the emergency organization, response procedures, and
implement online monitoring at wastewater and exhaust gas discharge outlets, with data
disposal measures. We regularly conduct emergency drills for environmental emergencies under different
scenarios, such as chemical leaks and accidental wastewater discharges, and evaluate and improve drill networked to regulatory authorities, and commission third parties to conduct regular manual
effectiveness to continuously enhance emergency response capabilities. In addition, we regularly maintain monitoring. Meanwhile, we carry out daily inspections of environmental protection treatment
emergency supplies and equipment to ensure emergency response capabilities. facilities. At the compliance and management system level, we track compliance status
Risk by preparing environmental information disclosure reports and pollutant discharge permit
monitoring implementation reports, and use internal audits, management reviews, and hidden hazard
investigations to check the effectiveness of system operation.
Enhancing environmental awareness and skills
All of our production bases have formulated specialized
environmental education and training management systems,
specifying that the EHS Department or other responsible
departments at each production base shall formulate Indicators and targets
and implement annual plans. The training content covers
environmental laws and regulations, our internal management The Company sets quantitative environmental management targets and tracks performance through a rigorous monitoring
systems, and operating procedures for pollution prevention and reporting system, and is committed to achieving transparent management and continuous improvement.
and control facilities, with differentiated training conducted
for different positions. Through regular and comprehensive
environmental training, we continuously enhance the Air Pollution Prevention knowledge training in 2025 achieved
Indicators Unit 2025 target
environmental awareness and skills of all employees. Shangyu Base value
Timeliness rate for identification and update
of environmental factors and significant / ≥ 1 time/year 1
environmental factors inventory
Transparent communication
The Company regularly discloses environmental management Environmental pollution incidents cases 0 0
information, self-monitoring data, and annual execution
reports in accordance with the law through multiple Fire hazards cases 0 0
channels, such as the official website, the government's “One
Enterprise, One File” platform, and the National Pollutant Compliant discharge of exhaust gas and
% 100 100
Discharge Permit Management Information Platform, to wastewater
Nantong Base publicly discloses environmental
accept public oversight. impact assessment (EIA) information through
government platforms Compliance rate of hazardous waste disposal % 100 100
On-time completion rate of emergency drills % 100 100
Risk management
Compliance rate of emergency response supplies
% 100 100
The Company has established and implemented a systematic environmental risk management process, including systems configuration
such as the Environmental Factor Identification and Evaluation Procedure and the Hazard Identification, Evaluation and
Control Procedure, forming a management system that covers risk identification, hierarchical assessment, and multi-level
monitoring to achieve systematic control of environmental risks. 40
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Addressing climate change
The Company fully recognizes the critical role of climate issues in long-term corporate competitiveness, actively
adopts the recommended framework of the Task Force on Climate-related Financial Disclosures (TCFD), and "Dual Carbon"
systematically advances climate action across the four dimensions of governance, strategy, risk management, and Management Structure and Functions
indicators and targets, promoting climate resilience within our own operations and value chain.
Governance dimension Approve annual plans and confirm year-end
assessment results.Approve annual plans and
The Company has established a climate governance system covering the entire chain of governance, implementation,
Head confirm year-end assessment results.
and supervision. At the governance level, we have integrated “Dual Carbon” initiatives into our strategic core,
established a cross-departmental special working group led by the Chairman, and built a collaborative mechanism
covering policy research, technical implementation, government engagement, and ESG disclosure. We drive the •Participate in formulating the Company's science-based
implementation of decisions through annual plans, regular monthly meetings, and a closed-loop supervision carbon targets, track and organize dual carbon policies,
Human Resources Department
mechanism, while allocating emission reduction responsibilities to each production base to achieve integrated and promote the implementation of annual plans.
management from the headquarters to the frontline. At the execution level, we set science-based emission reduction
Finance Department
•Establish carbon emission management frameworks
EHS DEPARTMENT
targets and officially obtained SBTi approval in June 2025, becoming one of the first enterprises in the domestic fine
and institutional processes to standardize the
Board Office
R&D Center
chemical industry to pass this international certification. By incorporating “Dual Carbon” targets into the performance Company's carbon emission reduction actions, improve
appraisals of subsidiaries and employees, formulating the Dual Carbon Construction Implementation Plan, and management efficiency, and enhance information
establishing a traceable and auditable carbon data management system, we ensure the efficient implementation
•Responsible for introducing, developing, and promoting
of actions. In terms of supervision and improvement, the Company strengthens closed-loop management through
advanced energy-saving and low-carbon technologies
third-party certification. For example, the Nantong base has obtained the ISO 50001 Energy Management System
to provide technical support and drive innovation for the
certification and has been recognized as a Jiangsu Province Green Factory, and undergoes continuous external Company's emission reduction efforts.disclosure.
audits. Meanwhile, the Company regularly publishes ESG reports, proactively discloses climate progress, and
responds to the compliance and transparency requirements of investors and core customers regarding supply chain
carbon reduction, forming a closed loop of climate governance featuring internal and external coordination and Dual Carbon Management Responsible Fully implement dual carbon-related initiatives at
Persons at Production/R&D Bases each production base.
continuous optimization.
Strategy
The Company actively responds to the national “Dual Carbon” targets, identifies the urgent needs of downstream
customers for low-carbon products and supply chain transparency, benchmarks against the best practices of
international chemical companies, refers to international standards such as IFRS S2, systematically identifies physical
risks and transition risks/opportunities, evaluates their financial impacts and time horizons, and proactively integrates
climate change deeply into our core strategy and business model.
Risk/ Impact Risk/Opportunity
Type Risk/Opportunity description Effect on the value chain Response measures
Opportunity duration concentration region
•Upstream: Extreme weather at supplier •Systematically incorporate physical resilience assessments into the site selection, design,
Extreme climate events, such locations leads to raw material supply and operational decision-making of production bases, and invest in facility upgrades for
as floods, storms, droughts, disruptions; flood prevention, wind resistance, and high-temperature tolerance, to enhance the capacity
•Coastal and riverside
or extreme heat, may damage •Internal operations: Production bases to cope with extreme climate from the source.
Physical Acute Physical factories
production facilities or cause Short term need to undergo disaster-resistance •Develop extreme weather early warning and emergency plans, and establish a cross-
risks risks •Locations of single-
production interruptions, affecting reinforcement and develop business departmental emergency response mechanism to ensure the organization's rapid response
source key suppliers
supply chain security and supply continuity plans; and business continuity during climate events through regular drills.
capacity. •Downstream: Unstable supply damages •For the response to supplier-related risks, please refer to the Building a Strong Supply Chain
customer trust. section.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Risk/ Impact Risk/Opportunity
Type Risk/Opportunity description Effect on the value chain Response measures
Opportunity duration concentration region
Long-term climate change leads
•Agrochemical and
to changes in water resource
climate-sensitive
distribution, changes in pest •Internal operations: It is required •Dynamically adjust R&D directions and market forecasts by analyzing long-term climate
pharmaceutical
and disease patterns, sea level to assess the long-term climate trends and tracking regional climate and pest and disease data;
Physical Chronic physical product lines
rise, and frequent extreme Long term adaptability of production bases; •Focus investment on the R&D of adaptive agrochemicals such as drought-resistant and pest-
risks risks •Key agricultural raw
temperatures, thereby affecting •Downstream: The impact of climate and disease-resistant products, and actively conduct related business research and industry
material sourcing
the market demand for products change on end industries is tracked. exchanges.
areas
such as agrochemicals and
•R&D departments
pharmaceuticals.
•Upstream: It is required to screen
and manage suppliers' environmental
Governments and regulatory
compliance;
authorities strengthen •Each production •Prioritize environmental compliance and carbon costs in project decision-making,
•Internal operations: Investment
environmental and carbon Medium base. systematically formulate and advance the SBTi emission reduction pathway;
Policy and legal continues in environmental protection
emissions regulation in response to and long •Suppliers of raw •Introduce a digital carbon management system to achieve process monitoring and data-
risks facility upgrades and emissions
climate change, resulting in higher term materials with high driven management, while continuously advancing process optimization and equipment
monitoring;
corporate compliance costs and environmental impact upgrades to ensure the implementation of emission reduction targets.
•Downstream: Exported products may
increased exposure to penalty risks.
face “carbon barriers” in international
trade.
Transition
risks
•Incorporate customers' low-carbon demands as a key input for product R&D and market
•Upstream: Pressure transmission
strategy, and systematically introduce product carbon footprint analysis into decision-
requires priority cooperation with low-
Downstream customers have raised making;
carbon suppliers; •Multinational
higher requirements for the carbon •Regularly disclose carbon inventory results and ESG reports annually to enhance
Short and •Internal operations: R&D resources are enterprise customers
emissions performance of our transparency and market trust;
Market risks medium driven towards low-carbon products •R&D and product
products. If we cannot meet them, •Direct R&D resources towards green products, with Life Cycle Assessment (LCA)
term and technologies; management
this may lead to order losses and a optimization emphasized for CDMO services;
•Downstream: Customer requirements departments
decline in market share. •Conduct full life cycle assessments for key products, promote collaborative emission
for product carbon footprint disclosure
reduction in the supply chain, and consolidate and expand market share through low-carbon
are responded.
solutions.
By adopting renewable energy
•Clearly define energy efficiency improvements and clean energy use as a core strategy
and improving energy efficiency, •Internal operations: It becomes the •High-energy-
Renewable for cost reduction and efficiency enhancement, and prioritize consideration of the energy-
we can reduce operating costs, Short and core of emissions reduction and cost consuming
energy and saving payback period of projects in investment decisions;
support the achievement of medium reduction; production units
energy •Coordinate the construction of photovoltaic power plants, implement fan upgrades, steam
emissions reduction targets, and term •Downstream: The “green attributes” of •Plant photovoltaic and
efficiency system optimization, and smart energy management, and build an efficient, low-carbon
produce products with a lower products enhance attractiveness. energy infrastructure
energy supply and use system.
environmental footprint.
Transition
•Upstream: Cooperation with R&D
opportunities Policies such as “Carbon Neutrality” •Biomass energy and
institutions and green technology
guide green consumption and resource recovery •Clearly define green and low-carbon industries as the future growth engine, and
companies;
production, creating new business project systematically assess the green attributes and market potential of projects in major
Medium •Internal operations: The construction
Market growth opportunities for the •CDMO business units investment decisions;
and long of new green industry production lines
opportunities Company to develop and provide •Strategic cooperation •Actively develop and expand into emerging industries such as resource recycling and
term is driven to promote the integration of
climate-friendly products, such as and business biomass energy, and expand the low-carbon value chain by providing green CDMO services
LCA assessment into CDMO services;
low-carbon CDMO services and development and conducting industry collaborations.
•Downstream: Customers are provided
biomass energy. department
with one-stop green solutions.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Risk and opportunity management
The Company has established a systematic climate risk and opportunity management process covering
identification, assessment, prioritization, and monitoring, which is deeply integrated into comprehensive risk Target content
management, strategic planning, and daily operations to ensure the effective implementation of climate actions.
Absolute emission reduction targets: With 2022 as the base year, achieve a 54.9% reduction in
Identification Assessment total Scope 1 and Scope 2 GHG emissions by 2033, reducing emissions by 4,610 tCO ₂ e annually.
Intensity emission reduction targets: With 2022 as the base year, reduce Scope 3 GHG emissions
With reference to authoritative frameworks Based on policy trends, market dynamics, and
from purchased goods and services, fuel- and energy-related activities, upstream transportation
such as IFRS S2 Climate-Related Disclosures historical data, we analyze the likelihood of
and distribution, and waste generated in operations by 61.1% per ton of product produced by
and the Self-Regulatory Guidelines No. 3 for various risk events occurring and determine
Companies Listed on Shenzhen Stock Exchange their degree of impact from both financial
— Sustainability Reporting Preparation , we have and non-financial dimensions; financially, we
identified and assessed all stages of the value mainly examine the potential direction of impact
chain through multidimensional inputs, including on indicators such as operating revenue and Progress
policy research, peer benchmarking, and expert operating costs, while non-financially, we focus
consultation, to ensure comprehensive and on factors such as brand reputation and supply Base year (2022) 2025
targeted analysis. chain security, thereby forming a qualitative
impact assessment of the identified items. Total GHG emissions (Scopes 1 & 2) (tCO ₂ e) 85,021.70 69,477.00
Prioritisation Monitoring
Based on the assessment results, we conduct Coordinated by the “Dual Carbon” Management
a comprehensive prioritization based on the Task Force, the Energy Management Leadership
likelihood of risks and opportunities occurring
and the severity of their potential impacts,
Groups at each production base are responsible
for local data collection, communicating
Improving resource efficiency
thereby guiding the effective allocation of relevant work progress and risk changes
The Company adheres to the resource management concept of “compliance, efficiency, circularity, and
resources. through monthly meetings.
sustainability” , systematically builds a full-chain management system covering energy and water resources,
promotes energy conservation, consumption reduction, and water resource recycling through institutional
safeguards, technological upgrades, and the application of clean energy, strengthens source control and
refined management, effectively reduces resource consumption intensity, and comprehensively improves
Indicators and targets utilization efficiency.
As one of the first fine chemical enterprises in China to commit to joining the Science Based Targets initiative
(SBTi), ABA Chemicals passed the official rigorous target validation in June 2025. This marks a solid and Energy management
critical step forward for ABA Chemicals in addressing
The Company has established a hierarchical and institutionalized energy management system, and
c l i m a t e c h a n g e a n d p ro m o t i n g s u s t a i n a b l e
all production bases have formulated the Energy Use Management Policy , clarifying the management
development, demonstrating our firm commitment to
objectives, scope of application, and responsibilities of each department. In terms of organizational
participating in global climate action. The Company
structure, a three-tier management system comprising the Company, department (workshop), and team
strictly follows the scientific methodology required
is implemented. For example, the Taicang base has established the Energy Management Leadership
by SBTi to set greenhouse gas emission reduction
Group and its office, while the Lanzhou and Nantong bases have designated the Equipment Engineering
targets, in order to proactively adapt to the national
Department as the core coordinating department, responsible for energy operation and maintenance,
strategy of carbon peaking and carbon neutrality
data statistics, and measuring instrument management. In daily operations, the Company has established
and increasingly stringent environmental regulations,
regular processes for energy data statistics, monitoring, and reporting, and has set up mechanisms for
as well as downstream customers' requirements
anomaly handling and rectification. During the reporting period, the Nantong base passed the ISO 50001
for supply chain carbon emission transparency and
Energy Management System certification, effectively helping the Company improve the systematicness and
emission reduction performance.
traceability of energy management.
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Clean energy application Type of measure Type of measure Type of measure
In terms of clean energy utilization, the Company mainly focuses on solar photovoltaic power generation, Binhai Base has installed integrated solar- and wind-powered
and explores green power procurement at some bases. Multiple production bases have built rooftop and lighting fixtures in non-explosion-proof areas; the workshops
Annual electricity savings of
carport photovoltaic projects, among which the “Solar Power Generation Project” at the Lanzhou base has an use energy-saving lighting fixtures and Grade 1 and Grade
Energy-efficient approximately 300,000 kWh
estimated installed capacity of 600 kW; the Nantong base currently has a photovoltaic installed capacity of 2 energy-efficiency equipment, phasing out low-energy-
production efficiency equipment.
with an installed capacity of 1,090 kW. At the same time, the Company also actively promotes the application In the workshops of the Taicang base, lights are replaced with Annual electricity savings of
of photovoltaic power in the field of street lighting. explosion-proof energy-saving LED ones. approximately 1,800 kWh
Binhai Base leverages the high temperature and
pressure characteristics of superheated steam from the
combined heat and power plant by installing a new steam Annual steam savings of 300
desuperheating device. The collected steam condensate tons
Waste heat and
is reused in steam desuperheating, converting
pressure recovery
superheated steam into saturated steam.
Binhai Base recovers and utilizes the latent heat of steam Annual steam savings of 120
condensate in the workshop melting room and for drying. tons
Process Binhai Base promptly adjusts process parameters based
Annual electricity savings of
and system on the performance of the nitrogen generator equipment
optimization and production load.
Solar power generation Solar street lights
Indicators Unit 2025 Standard coal equivalent
Energy conservation targets and measures
Direct energy
)/ tce 441.97 (tce)/
The Company and all production bases have set quantitative energy conservation and consumption reduction consumption
targets, and integrated them with long-term development plans. For example, with 2022 as the base year, the Natural gas m3 261,440 287.58
Taicang base aims to reduce comprehensive energy consumption by 5% by 2025; the Nantong base has set
an annual target to save about 5% of energy in 2025. Each production base advances the implementation Diesel kg 19,693 28.69
of targets through specific annual key tasks and engineering projects, and focuses on systematically tapping
Gasoline kg 85,423 125.69
into energy-saving potential from various aspects such as process optimization, equipment upgrades, building
energy efficiency, and system management in its planning, to support the realization of the Company's overall Indirect energy
)/ tce 19,412.81 /
energy conservation and carbon reduction targets. consumption
Purchased
MWh 46,283 5,688.18
electricity
Type of measure Type of measure Type of measure
Outsourced steam tons 126,411.60 13,724.63
Nantong Base replaces Roots blowers with air suspension
Projected 30% energy savings Total energy
centrifugal blowers. / tce 19,854.78 /
consumption
Energy-efficient Energy efficiency Comprehensive
In the Nantong Base Phase III project, Grade 1 energy energy
production improvement rate greater than tce/RMB 1 million
efficiency motors are exclusively selected. consumption / 14.88 /
equipment 3.7% revenue
intensity per unit of
revenue
In the workshops of the Taicang base, Grade 2 energy
efficiency motors are replaced.
and self-
/ kWh 479,424.8 58.92
consumed green
electricity
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Water resources management Base Recycling and reuse measures Results
The Company has established a systematic and institutionalized water resources management system, built First-stage RO membrane reclaimed water Save approximately 20% of water, with a
Taicang Base
a three-tier management network comprising the Company, departments, and teams, and formulated special reuse and rainwater treatment system rainwater treatment capacity of 5 tons/hour.
systems such as the Water Supply and Usage Management System, Wastewater Management System, and
Annual cost savings of approximately
Environmental Protection Management System . We have clearly defined the responsibilities of engineering, Steam condensate recovery, rainwater
Lanzhou Base RMB999,600, reducing tap water
production, environmental protection, and administrative departments. Separate metering and digital collection, circulating water optimization
consumption.
monitoring are implemented, and strict compliance is maintained with clean-wastewater separation and rain-
wastewater diversion. In addition, emergency ponds and accidental water collection systems are in place, Steam condensate reuse and RO Average daily water savings of
Nantong Base
forming a complete management mechanism with clear rights and responsibilities, standardized procedures, product water reuse approximately 174 tons.
prevention as the priority, and integrated control. Annual recovery of approximately 18,000 tons,
Binhai Base Steam condensate recovery saving fresh water and reducing wastewater
treatment volume.
Water-saving measures
The Company takes “compliance, efficiency, circularity, and sustainability” as the core philosophy of water
resources management, incorporates water conservation into our overall consumption reduction strategy,
sets clear water conservation targets, and continuously promotes the reduction of water consumption per unit
of product and the improvement of the water recycling rate through cleaner production audits.
•Implement water metering and quota assessments, and incorporate water
consumption into production costs and performance evaluations.
Water •Conduct water conservation publicity and education for all employees, enhance
conservation their water conservation awareness, and eliminate the phenomenon of
management “constantly running water” .
•Establish a water consumption data monitoring platform to achieve real-time Nantong Base recycles condensate water for use as cooling tower make-up water
monitoring, anomaly analysis, and dynamic optimization.
Water source protection
•Steam condensate recovery system: Recover all steam condensate as circulating
make-up water to achieve dual savings of thermal energy and water. The Company consistently adheres to the principles of “lawful utilization, internal conservation, process
•Circulating water system optimization: Increase the cycles of concentration of prevention and control, and ecological synergy” . All water used is sourced from compliant municipal water
circulating water, and reduce wastewater discharge and makeup water. supplies and permitted surface water sources, and by implementing strict clean-wastewater separation,
Process and •Process water-saving upgrades: Adopt high-efficiency water-saving technologies,
equipment water full-process compliant wastewater treatment, and recycling and reuse systems, we minimize fresh water
such as the reuse of RO product water, closed-loop circulation of process water,
conservation withdrawal and the risk of pollutant discharge to the greatest extent possible. Meanwhile, the Company has
and the replacement of high water-consuming products with water-based
established emergency accident pools and environmental risk emergency plans, and actively carries out
formulations.
greening and ecological maintenance in the plant area to reduce the potential impact of operations on water
•Equipment upgrades: Use energy-saving equipment such as mixers, pumps and
sources through systematic and preventive management practices.
valves, and steam traps to reduce system water consumption.
•Adopt rainwater collection systems in new projects for landscaping, dust
Water
suppression, washing, etc.
conservation in
•During construction, install water meters for measurement, and collect and utilize
buildings and
rainwater and construction wastewater to reduce freshwater withdrawal.
construction
•Promote the use of water-saving faucets, showerheads, and flushing equipment.
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Strict control of pollution emissions Source control
The Company actively promotes cleaner production, and has effectively reduced the generation of pollutants
The Company adheres to ecological priority and combines prevention and control, establishing a full life-cycle
by improving process flows, substituting with environmentally friendly raw materials, and increasing material
pollution prevention and control system covering wastewater, exhaust gas, and waste. Guided by senior management
recovery rates.
responsibility, anchored by institutional standards, supported by advanced technology, and safeguarded by intelligent
monitoring, the Company systematically promotes source reduction, process control, and end-of-pipe treatment to
ensure 100% compliant disposal of the “three wastes” and continuously reduce our environmental footprint.
Operational management
All production bases strictly implement the clean-wastewater separation and rainwater and sewage separation
system, install metering instruments to implement refined management and control, and introduce third-
Management structure and systems party professional services for the operation of some facilities to enhance the standardization and efficiency
of management.
The Company has established a unified environmental management structure across all production bases,
comprehensively covering the management of wastewater, exhaust gas, and waste, and forming a multi-level
responsibility network with senior management as the core responsible party, the EHS/Environmental Protection
Department as the coordination and supervision center, production departments responsible for source control, Exhaust gas
and professional teams executing facility operation and maintenance. The Company has established a supporting
The Company adheres to a systematic management strategy of “source reduction, process control, and end-of-pipe
policy system, in which the Environmental Protection Responsibility System and the Response Plan for Environmental
treatment,” combining process optimization, closed collection, and highly efficient treatment technologies, and relies
Emergencies serve as common guidelines, ensuring that management in all areas has rules to follow; at the
on online monitoring and third-party testing to ensure that emissions are controlled in real time. During the reporting
same time, we have formulated special operating procedures for different environmental elements, including the
period, exhaust gas emissions at all bases consistently and stably met the standards, and the actual emissions of
Wastewater Treatment Operating Procedures, Exhaust Gas Treatment Operating Procedures, Solid Waste Treatment
major pollutants were below the permitted limits.
Operating Procedures , and Hazardous Waste Management System , supplemented by dynamic documents such as
the annual Hazardous Waste Management Plan , realizing standardized and integrated control over the entire process
Aspect Specific measures
of the “three wastes” from generation and treatment to discharge or disposal.
•Process improvement: Adopt methods such as hydrogenation processes, solvent
substitution, and material recovery to reduce pollutant generation from the source.
Governance measures and effectiveness
•Enclosure and collection: Enclose equipment, storage tanks, wastewater ponds,
Focusing on wastewater, exhaust gas, and solid waste, the Company implements treatment measures covering etc., and use gas collection hoods and pipeline negative-pressure collection to
Source control and
source control, process management, and end-of-pipe treatment to achieve the stable and compliant discharge of process management control fugitive emissions; the Lanzhou Base implements a leak detection and repair
pollutants and the compliant disposal of waste. program.
•Cleaner production: Actively promote cleaner production audits, and reduce energy
Wastewater and material consumption and pollutant generation through process optimization.
The Company has established a systematic technical and management system for wastewater treatment, covering
three levels: treatment processes, source control, and operational management. •VOCs treatment: Widely apply regenerative thermal oxidation (RTO), activated
carbon adsorption, resin adsorption, condensation recovery, and various combined
absorption processes.
Treatment processes
•Acidic/alkaline exhaust gas treatment: Mainly adopt multi-stage alkali absorption,
The Company has established a technical route of “segregated collection, classified pretreatment, and
acid absorption, or water absorption processes.
combined biochemical treatment” . For high-salinity wastewater, refractory organics, and characteristic End-of-pipe
treatment process
pollutants, we adopt differentiated pretreatment processes such as evaporative crystallization, advanced
oxidation, resin adsorption, and micro-electrolysis. In the core treatment stage, we widely apply combined •Particulate matter treatment: Adopt equipment such as bag filters.
processes of high-efficiency biochemical and advanced treatment technologies such as Fenton oxidation.
Each base configures its designed treatment capacity based on actual needs to ensure that the effluent
consistently meets standards. •Technology upgrade: Continuously carry out facility modifications and upgrades to
improve treatment efficiency.
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Aspect Specific measures Waste Reduction and Resource Utilization Measures
Implement the “clean-wastewater separation” and equipment inspection and
Process improvement Technology upgrade Management optimization
maintenance systems, and introduce third-party professional operations at some
bases.
Operation and
monitoring
Establish a monitoring system based on online monitoring, supplemented by regular
manual monitoring by third parties, with data connected to the regulatory platform.
Solvent recovery and reuse, Filter press system upgrade, Paperless office, recycling of
Key performance by-product purification and reducing sludge yield through packaging materials, timely
reuse, and raw material the oxidation method. transfer of hazardous waste,
The pollutant concentration at the exhaust The actual emissions of some major substitution. and comprehensive utilization of
gas emission outlets of all subsidiaries pollutants are all waste drums.
meets the limits of national and below the permitted annual emission
local emission standards. limits stipulated in the pollutant
discharge permit.
Waste
The Company has established a full life-cycle waste management system featuring “classified compliance, source
reduction, and circular efficiency.” On the basis of ensuring 100% compliant disposal, we systematically promote the
coordinated implementation of resource utilization and green operations. During the reporting period, the Lanzhou
base reduced costs by over RMB800,000 annually through packaging recycling.
Waste Sorting and Disposal
Hazardous waste warehouse of Nantong Base
Hazardous waste General industrial solid waste Domestic Waste
party entities for compliant disposal for comprehensive utilization or transported by the
through incineration, physico- disposal, with a portion strictly sanitation department.
chemical treatment, secure landfill, or managed according to hazardous
solvent recovery; strictly implement waste standards.
qualification review, contractual
constraints, and the electronic waste
transfer manifest system.
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Management targets and progress Protecting biodiversity
The Company strictly complies with national and local environmental laws and regulations as well as pollutant
Through systematic risk assessment, identification of significant environmental factors, and preset emergency
discharge permit requirements, implements full-process control over wastewater, exhaust gas, and solid
plans, the Company has built a full-chain management system covering “risk identification - source prevention
waste, and fully achieves compliant discharge, waste reduction, and efficiency enhancement.
and control - process supervision - emergency remediation” , and continuously advances seepage control
projects, ecological greening, and green product research and development to effectively prevent pollution
risks and safeguard the ecological and environmental health of the plant area and its surroundings.
With the core goal of achieving a 100% wastewater compliant discharge
Source prevention Emergency
rate, we implement total quantity control over key pollutants such as COD and control remediation
Wastewater and ammonia nitrogen. During the reporting period, none of our bases
management exceeded the standards; the actual discharge volumes of Nantong Base,
Process
Shangyu Base, Binhai Base and were significantly below their permitted Risk supervision
limits, achieving stable compliance and effective total quantity control. identification
Assessment and risk identification
The Company systematically assesses the potential impact of operations on land ecology, conducts
Upholding stable compliance with emissions standards and promoting specialized soil and groundwater risk assessments, and comprehensively identifies pollution risks that may be
deep emissions reductions, Nantong Base clarifies its emissions reduction caused by pathways such as leaks and spills throughout the entire process from raw material storage to the
Exhaust gas pathway through a cleaner production audit; the Lanzhou base focuses on treatment of the three wastes. Relying on the environmental factor identification and evaluation procedure,
management reducing total non-methane hydrocarbons; and the Taicang base adopts the Company systematically identifies and screens significant environmental factors, including land pollution,
RTO technology for efficient treatment (with a VOCs removal rate of 97% for focused control. Meanwhile, in the response plan for environmental emergencies, we proactively envision
or higher). soil and groundwater pollution scenarios and formulate specialized response procedures, establishing a
closed-loop assessment system from risk anticipation and factor control to emergency preparedness.
We fully implement the Solid Waste Law and establish multi-tier quantified
targets, including a 100% compliance rate for hazardous waste disposal, Risk anticipation Factor control
Waste
hazardous waste inventory kept below 500 tons with a storage period not
management
exceeding 90 days, etc. During the reporting period, all production bases
achieved 100% compliant disposal of waste.
Emergency preparedness
Protection and restoration measures
The Company has established a multi-level land ecological protection system integrating prevention,
control, and remediation, preventing the spread of pollution at the source and throughout the process by
implementing zoned seepage prevention projects, standardizing waste management, and carrying out spill
emergency responses. The Company continuously advances ecological greening of the plant area and
develops more soil-friendly green products, integrating ecological protection into the entire project lifecycle.
Meanwhile, we establish a self-monitoring mechanism for soil and groundwater, formulate supporting
special emergency response plans, and conduct regular hazard inspections to ensure the capability for rapid
remediation and response in the event of pollution.
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Nourishing Hearts
to Forge Dreams
and Advance
Together
We always place “people” at the center of
development, build internal synergy with sincerity,
and connect the external ecosystem with “Forge
Dreams and Advance Together” . To this end,
we continuously improve the system for the
protection of employee rights and interests,
systematically establish growth and development
channels, comprehensively build a solid defense
line for health and safety, and actively assume
social responsibilities, thereby building a
community of shared development where the
Company, employees, and society grow together
and achieve mutual success.
Issues covered in this chapter
•Protection of employee rights and interests
•Employee training and development
•Employee benefits and welfare
•Occupational health and safety
•Social contribution
Contributing to UN SDGs
Note: The picture shows ABA Chemicals conducting “Project Management Best
Practices Training” at its Shanghai office
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Protecting employee rights and interests Company employee composition
Number of employees Number of employees by Number of employees
by employment type gender by age
ABA Chemicals strictly adheres to the Labor Law of the People's Republic of China, the Labor Contract Law
of the People's Republic of China , and other laws and regulations, and is committed to exceeding compliance 784
baselines to build a work environment characterized by sound systems, smooth communication, and care. 423
Equal employment Full-time Part-time Female Male
employees employees employees employees Employees Employees Employees Employees
aged 29 aged 30- aged 40- aged 50
The Company has established a systematic equal employment and diversity policy system, and through and under 39 49 and above
institutional safeguards and specific practices, fully implements our commitments to anti-discrimination, anti-
Number of employees Number of employees by Number of employees by
forced labor, and diversity and inclusion. by region hierarchical level education degree
Policies and regulations 513
The Company has formulated the Human Resources Management System and the Employee Handbook , and 173
encourages all subsidiaries to formulate specific policies, establishing a clear policy framework. These policy
documents formally state that the Company adheres to the principle of meritocracy and equal opportunity Employees Employees Senior Middle General Employees Employees Employees
working working management management employees Employees
with master's with with with high
throughout all stages of employment, strictly prohibits discrimination based on gender, age, ethnicity, in China overseas (Vice (Assistant degrees and bachelor's associate school
President Manager to above degrees degrees education and
religious belief, or any other factors prohibited by law, and explicitly declares a zero-tolerance policy against and above) Director)
below
the use of child labor and any form of forced labor, strictly complying with national regulations on the
minimum employment age and safeguarding employees' rights to freely choose their employment and control
their labor remuneration.
On this basis, the Company has established systematic and specific policies and systems for anti- Rights protection
discrimination and diversity, anti-child labor, and anti-forced labor, detailing fair employment measures,
The Company effectively safeguards the legitimate rights and interests of every employee by establishing a
prohibited acts, supervisory responsibilities, reporting and grievance channels, and measures for handling competitive compensation and benefits system, a sound democratic participation mechanism, and effective dispute
violations. For example, the policies require strict verification of applicants' ages to prevent the employment resolution channels.
of child labor, prohibit any form of forced labor, and ensure that overtime is voluntary and remuneration is
Compensation and benefits system
paid in accordance with the law, ensuring that the statements are translated into executable and monitorable
management practices. The Company provides a diversified compensation structure comprising base salary, performance
bonuses, year-end rewards, and long-term equity incentives, enabling employees to share in our
Diversity and inclusion practices development achievements. At the same time, we strictly implement national regulations on social
insurance, the housing provident fund, and paid annual leave, and provide employees with supplementary
The Company is committed to creating an inclusive and equal workplace environment, and on the basis of benefits such as supplementary commercial medical insurance, annual health check-ups, holiday
safeguarding the legitimate rights and interests of female employees, such as maternity leave and lactation benefits, and birthday care, to build an attractive compensation and benefits package.
leave, in accordance with the law, we comprehensively build a female-friendly workplace through measures
such as establishing special training programs, ensuring fair promotion opportunities, and implementing Democratic management and communication
special care policies for the “three periods” (pregnancy, maternity, and lactation). At the same time, we The Company supports and promotes the establishment and effective operation of organizations such
actively embrace diversity in recruitment and employment, and our workforce exhibits rich and diverse as trade unions and employee representative congresses, enabling them to play an effective role in
characteristics in aspects such as nationality and region, employment type, and educational background. collective bargaining, benefit distribution, hardship assistance, and democratic supervision. Through
various channels such as regularly holding department and company-level meetings, setting up internal
anonymous suggestion boxes, conducting management “walk-around” communication, and utilizing
instant messaging groups, we build an institutionalized, multidimensional communication system to
ensure that employee opinions can be conveyed in a timely manner; all requests and suggestions are
incorporated into the standardized closed-loop process of “receipt - assessment - handling - feedback” ,
ensuring that every matter is responded to and every item is implemented. At the same time, the
Company regards employee satisfaction surveys as an important management tool, collecting feedback
through routine surveys conducted at least once a year to identify areas for improvement, thereby driving
the continuous optimization of management decisions and the work environment.
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The Election for the Second Committee of the Joint Trade Union of Lanzhou Base
Case Health promotion and education
Successfully Completes
The Company regularly holds health knowledge lectures, as well as occupational health and mental
ABA Chemicals actively promotes the construction of
health training, and continuously organizes diversified programs such as sports competitions and
trade unions and democratic management practices,
cultural activities to help employees improve their health literacy and relieve stress.
and supports employees in exercising their democratic
rights in accordance with the law. During the reporting
period, the Lanzhou Base Joint Trade Union formally Work-life balance
convened a member representative assembly, at
Through Family Day activities, holiday greetings, and caring initiatives, we enhance employees' sense of
which 68 representatives democratically elected the
belonging, support them in balancing career development and family responsibilities, and improve their
new trade union committee by secret ballot. The new
happiness and life satisfaction.
trade union clearly defined its core responsibilities
as safeguarding the legitimate rights and interests of
employees and serving their needs, and established Team cohesion and culture building
the “Employee Suggestion Direct Channel” mechanism
We regularly organize diverse team-building activities and sports events to enrich employees' spare time
to facilitate the translation of frontline wisdom into
and enhance team cohesion.
practical management outcomes.
Case Uniting the Team through Culture, Empowering Development through Activities
Performance appeal mechanism The Company regularly organizes themed team-building activities at various bases every year, such as the
“Summer Vibe” BBQ gathering for the R&D team at the Zhangjiang Innovation Center, providing employees with
The Company implements an open and fair performance management system and has established formal employee
a relaxed and pleasant platform for communication. During the activity, the Company's management engaged
grievance channels. If employees have any objections regarding performance appraisals, labor rights, or any other
warmly with everyone, affirming their hard work and looking ahead to the future together, which further bridged
matters, they may appeal in writing or through designated channels. The Company commits to investigating and
the distance between them. Meanwhile, a variety of enjoyable activities enhanced communication and trust
handling all grievances in a fair and timely manner, and strictly protecting complainants from any form of retaliation.
among colleagues, fostering a warm and inclusive organizational atmosphere.
Employee care
Through regular health promotion mechanisms, the Company effectively
reduces employee health risks and enhances organizational belonging and
team cohesion, and builds a solid backing for employees with a targeted and
in-depth support network.
Physical and mental health promotion
The Company regularly organizes health check-ups for all employees,
hosts health education lectures, and carries out a variety of cultural, sports, Hardship assistance and care
Awarded the title of Outstanding
and team-building activities, actively advocating work-life balance to Responsible Care Practitioner in The Company has established a care mechanism for employees facing
Key performance
comprehensively promote the physical and mental health of our employees. China's Pesticide Industry for 2025 difficulties and special circumstances, aiming to build a timely and robust
support network to serve as a solid backing for employees to cope with
Number of employees in
life's challenges. For employees facing unexpected hardships such as critical
difficulty assisted
illnesses or family emergencies, the Company and the trade union proactively
Health protection step in to promptly provide care and financial assistance, and actively assist
We provide regular health checkups for all employees and continue to optimize the working them in connecting with and applying for external charitable resources and
environment, strictly implement occupational health protection requirements, and grant position social security benefits, forming a “Company-Labor Union-Society” tripartite
allowances for special positions; the Lanzhou Base arranges special inspections for personnel exposed coordinated support system. In addition, the Company also holds retirement
to occupational hazard factors to ensure a 100% examination rate for occupational health surveillance. ceremonies for retiring employees to honor their long-term contributions;
for employees injured at work, we provide accompanying support and
humanistic care throughout the entire process from work-related injury
certification to rehabilitation.
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Growth with employees “Set Sail” Program for new employees
We implement systematic onboarding training, covering mandatory three-level safety, environmental, and health
The Company always regards talent as core capital and is committed to building a systematic and professional education, quality awareness, corporate culture, and rules and regulations, and adopt a mentorship model for
employee training and development system that is deeply aligned with our business strategy. With policies as the on-the-job guidance to ensure new employees quickly integrate and start work safely.
cornerstone, hierarchical and categorized management as the principle, and practical results as the orientation, it is
continuously enriched and implemented through the distinctive practices of each business unit.
Skills strengthening for frontline employees
We provide training around job operating procedures, equipment use, and safety specifications and implement
annual refresher training. For key positions such as chemical-related roles, we strictly implement national
requirements for working with certifications, ensuring employees possess the professional qualifications and
Employee Training capabilities for compliant operations.
The Company has established a training management system covering the entire career lifecycle of employees, aiming
to continuously inject momentum into organizational and personal development through knowledge transfer, skill Management capability development
enhancement, and behavior shaping.
The training content covers team building, execution capability, performance evaluation, hazard identification,
team management, compliance, and risk management, and we also select senior management members to
participate in external high-end training programs to broaden strategic horizons.
Training Management System
The Company has formulated a comprehensive Employee Training Management System , and supports our subsidiaries In-depth development for professional tracks
in formulating more detailed operating procedures based on their own characteristics, such as the Personnel Training
Operating Procedures and Training Management Procedures . The system specifies the full process of training needs For professional tracks such as technology, quality, equipment, and R&D, we continuously provide professional
analysis, plan formulation, organization and implementation, effectiveness evaluation, and record archiving, forming a knowledge updates and in-depth skills training on advanced instrument operation, DCS systems, and the latest
standardized management closed loop from the Company's coordination to subsidiary execution, ensuring systematic Pharmacopoeia regulations.
and sustainable training activities.
Targeted Training Diverse Training Methods
The Company has established a multi-level, targeted training system for new employees, entry-level employees, The Company comprehensively utilizes various training methods such as internal training, external certification,
management, and professional-track employees, which covers all employees and spans the entire career development mentorship, and emergency drills to build a diversified and multi-level talent training system. Among them, mentorship
lifecycle, systematically enhancing employees' job competency, managerial leadership, and core professional on-the-job training and systematic compliance training for certified posts have become a distinctive cornerstone for
competitiveness. frontline skill transfer and safe operations. Each subsidiary has also adapted to local conditions, creating a number of
highly effective distinctive programs.
Empowering through Systematic Training, Consolidating the Professional Foundation of
Case
Project Management
Shangyu Base Taicang base Binhai Base
In September 2025, the Company organized a two-day closed-door training on Project Management Best
Practices. This training covered the Company's leadership and nearly 40 employees from key departments such Shangyu Base implements Taicang base implements Binhai Base has established
as R&D, production, and quality, and reached all bases through live streaming, aiming to systematically enhance the “DSS Project Training” the Quality System Special a strong linkage mechanism
organizational project management capabilities. and emergency drill system, Improvement Project, introduces between training and
significantly enhancing team a third-party professional performance, directly
The training is designed around six major
collaboration efficiency organization to restructure incorporated training
modules around the entire project lifecycle,
and emergency response system documents and conduct attendance and assessment
and introduces real project cases for
capabilities through cross- company-wide standards results into personal
practical group discussions, strengthening
departmental project-based training, and systematically performance evaluations and
participants' mastery and application of tools
learning and regular practical strengthens the level of quality eligibility for excellence awards,
and methods.
drills. management and employees' and effectively enhanced the
quality awareness. binding force and incentives for
learning.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
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Training Effectiveness Assessment Governance structure
The Company attaches great importance to the application and evaluation of training effectiveness, and systematically The Company has established an occupational health and safety governance structure featuring overall responsibility by
conducts multi-dimensional effectiveness tracking. We conduct learning-level evaluations through post-training the key personnel, decision-making and leadership by the Work Safety Committee, specific execution by professional
assessments, and collect trainees' satisfaction and feedback using the Training Effectiveness Assessment Form . departments, and joint participation by all employees, forming a safety management system with clear rights and
Some subsidiaries further incorporate training plan completion rates, safety performance indicators, etc., into the responsibilities and efficient coordination. Each subsidiary has established a Work Safety Committee directly led by the key
departmental performance appraisal system, driving the effective extension of evaluations to changes in work behavior personnel of the Company, serving as the highest decision-making and leadership body for occupational health and safety
and impacts on business results. All training records are properly archived and linked to employees' personal files, work. Committee members include the heads of key functional departments to ensure cross-departmental collaboration
providing data support for talent development, capability inventory, and continuous improvement. and resource integration. The core responsibilities include approving occupational health and safety policies and objectives,
overseeing major risk management, deciding on resource investment, and reviewing performance reports.
Employee Development Daily management responsibilities are undertaken by a dedicated EHS department. As a specialized hub, the department is
responsible for the specific operation of the management system, including organizing risk identification and assessment,
The Company not only focuses on enhancing employees' current capabilities but also emphasizes their long-term
implementing hazard identification and remediation, coordinating safety training and emergency drills, and managing
career development, driving the deep integration of the realization of employees' personal value and organizational
occupational health surveillance records, among others.
strategic goals through systematic institutional design and continuous resource investment to build a win-win
development pattern. The heads of each production workshop and functional department are the primary persons responsible for safety in their
respective departments, team leaders are responsible for on-site safety management, and every employee is required to fulfill
Dual-Channel Career Continuous Learning and the safety responsibilities of their position. The Company solidifies responsibilities to individuals by signing the Work Safety
Responsibility Letter , forming a work safety responsibility network spanning all departments and levels of employees.
Development System Resource Support
The Company has established The Company encourages employees to participate
a “dual-channel” career in external technical training and authoritative Policy systems
development system with q u a l i f i c a t i o n c e r t i f i c a t i o n s re l a te d to t h e i r j o b The Company uses systematic policy documents and authoritative standardized certifications as dual drivers to consolidate
parallel management and responsibilities, and reimburses training expenses the solid foundation for occupational health and safety management. In terms of system construction, we have established
professional tracks, providing for those who pass the assessments, reducing the a comprehensive and clearly tiered management document system, including the All-Coverage Work Safety Responsibility
employees with diversified cost of personal development. We focus on building Policy, Risk Classification and Control Policy, Hazard Identification and Rectification Policy, Occupational Health and Hygiene
growth paths based on an internal knowledge management system, such Management Policy, Emergency Drill Policy, and various job safety operating procedures, ensuring that safety management
personal expertise, interests, as the Knowledge Management Procedure and is well-documented and responsibilities are clearly assigned. In terms of standardization certification, the Company actively
and career aspirations. Both supporting knowledge base formulated by Shangyu benchmarks against advanced international and domestic standards to continuously improve our management capabilities.
channels have clear job Base, to systematically accumulate organizational
Main production bases have obtained the ISO 45001 Occupational Health and Safety Management System certification, and
level standards, competency experience and technical expertise. At the
the Lanzhou Base was recognized as a “Level 3 Standardized Safety Production Enterprise (Chemical Industry)” in China.
requirements, and promotion same time, through cross-departmental project
review processes to ensure collaboration, internal trainer mechanisms, case
the fairness, transparency, sharing sessions, and other forms, we foster an Supervision, execution and assessment
and scientific nature of the open and shared learning culture, creating abundant Routine information reporting and risk assessment are the foundation of supervisory work. The safety departments at each of
promotion mechanism. opportunities for cross-disciplinary communication the Company's production bases regularly prepare performance reports, summarizing key data such as the occupational injury
and capability development for employees. rate, hazard rectification rate, and training completion rate, and submit them to the Work Safety Committee and management.
At the same time, the Company incorporates EHS indicators into assessments at all levels, deeply linking safety performance
with individual and departmental interests. At the departmental level, safety performance directly affects the overall score; at
the individual level, all employees are required to sign the Work Safety Responsibility Letter , and their safety performance is
Building a solid safety defense line directly linked to their monthly performance-based salary, annual bonuses, and awards and promotions.
The Company takes the ISO 45001 system as its core,, integrating institutional regulations, hierarchical risk control,
hazard identification and governance, emergency capability building, and regular safety training to build a three- Capability building and integration into decision-making
in-one prevention and control system comprising engineering safeguarding, management control, and personal
The Company strictly implements regulatory requirements to ensure that its key personnel, safety management personnel,
protection, systematically enhancing the level of intrinsic safety and fully solidifying the safety cornerstone for our
and special operation personnel complete training in accordance with the law, and 100% of them hold certificates for their
high-quality development.
posts. For major risk control and complex technological upgrades, we actively introduce external professional expertise. For
example, Shangyu Base explicitly stipulates that senior chemical experts must be engaged to provide on-the-side guidance
Governance dimension when addressing hidden dangers related to the “two key and one major” issues, thus enhancing the professional depth and
Guided by the responsibilities of the Board of Directors and management, the Company, through an organizational reliability of internal risk management. In terms of management mechanisms, the Company fully implements the “Three
structure with clearly defined rights and responsibilities, an institutional system certified by international standards, a Simultaneities” policy for construction projects, and re-conducts hazard identification and risk assessment after process
strictly binding assessment mechanism, and risk management and control processes deeply integrated into strategic changes, equipment introductions, major operational adjustments, or accidents. The work safety committees of all subsidiaries
decision-making, ensures that safety requirements run through the entire production and operation chain and cover regularly review safety strategies, targets, and resource investment to ensure that occupational health and safety issues are
all employees and the entire process. effectively integrated into high-level decision-making and resource allocation processes.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Strategy Risk control and emergency preparedness
The Company has established a “three-in-one” systematic occupational health and safety prevention and control
During the Reporting Period, the Company systematically managed potential safety risks, such as work safety risks, system covering engineering, management, and individuals. At the engineering level, project design prioritizes
operational and governance risks, legal and policy risks, and market and reputational risks, ensured the effective the adoption of intrinsically safe technologies. For example, Nantong Base has replaced traditional batch reactor
implementation of work safety targets through target breakdown and dual-dimensional qualitative and quantitative processes with microchannel continuous-flow technology, and has equipped workplaces involving toxic and
assessments, established a three-in-one prevention and control system integrating engineering, management, and hazardous operations with protective facilities such as ventilation and exhaust systems, leak detection alarms,
individuals, and continuously enhanced the safety capabilities of all employees through comprehensive training, and emergency washing stations. At the management level, we strictly implement special regulations such as
effectively responding to safety risks. the Special Operation Safety Management Policy, Occupational Health Surveillance Policy, Hazardous Chemicals
Safety Management Policy, and Precursor/Explosive Chemicals Management Policy. At the individual level, based
Risk type Risk description Impact duration Financial on job risk assessments, we provide employees with labor protection equipment such as protective clothing,
impact
protective glasses, and gas masks, and mandate their standardized wearing. On this basis, the Company has
formulated the Comprehensive Response Plan for Environmental Emergencies and special emergency plans for
Fire, explosions, toxic and hazardous chemical leaks,
Short term, fires, leaks, and poisoning, specifying an emergency organizational structure with the key personnel acting as the
mechanical injuries, etc., may cause production interruptions
Work safety risks medium term, High general commander, early warning reporting processes, and a tiered response mechanism. We conduct at least
and casualties in the short term, and may lead to major
long term two emergency drills annually, and through post-drill evaluations, summaries, and plan revisions, we continuously
accidents in the long term.
enhance our emergency response capabilities.
Operational and
Insufficient employee training, inadequate implementation Short term, Safety training and technical empowerment
of systems, poor contractor management, etc., may cause medium term, High
governance risks The Company regards safety training as a routine practice and has established an occupational health and safety
human errors and systemic failures. long term
training system that is comprehensive, diverse in format, strictly assessed, and strongly linked to performance,
ensuring the continuous improvement of all employees' safety awareness and emergency response capabilities.
The continuous upgrading of national and local work safety
Short term,
and occupational health regulations and standards may
Legal and policy risks medium term, Moderate
lead to rising compliance costs and increased pressure for Training content Training formats
long term
technological transformation.
Covering laws and regulations, the Company's safety Including classroom lectures, practical drills, online
policies, job operating procedures, risk identification learning, and team activities. New employees are
Safety accidents or occupational disease incidents may Short term, and control, knowledge on occupational disease required to complete the “three-level safety education”
Market and
damage the Company's reputation, customer relations, medium term, Moderate prevention and control, emergency escape and rescue and pass the assessment before taking up their
reputational risks
supply chain, and financing. long term skills, and accident cases. positions, and existing employees are retrained regularly.
Target setting and progress assessment Assessment mechanism Contractor coverage
The Company effectively translates strategic visions such as “zero incidents” into actionable annual plans and Post-training assessments are conducted, and those Contractors' employees are included in the unified
special programs. For example, Nantong Base formulated 28 specific safety goals across six major dimensions, who fail may not take up their posts. The training plan safety management system and are required to receive
the Lanzhou base issued the Implementation Scheme for the Occupational Disease Prevention and Control Plan, completion rate and assessment pass rate are included specialized safety training before entering the site.
and Shangyu Base introduced the Quality and EHS Objective Assessment Form to break down goals to various in departmental and individual performance appraisals During the reporting period, Nantong Base conducted
departments on a monthly basis. In terms of progress tracking, the Company adopts a dual-dimensional evaluation to ensure that safety training is strictly implemented. 43 training sessions for 24 contractors.
mechanism combining qualitative and quantitative methods. The qualitative aspect focuses on policy implementation
inspections, quarterly reviews by the Work Safety Committee, emergency drill evaluations, ISO 45001 internal audits,
and the achievement of milestones such as major safety technological upgrades. The quantitative aspect uses
Key performance
key performance indicators to continuously drive safety performance improvement through monthly reporting and
assessment mechanisms, forming closed-loop management from strategy to execution and from process to results. The company systematically introduced the safety management improvement project
of dss+, a global operations management consultancy, with a cumulative investment of
over ten million RMB.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Case
Continuous Investment in Systematic Safety Training to Build a Solid Foundation for Long- Cultural activities and awareness enhancement
Term Development
The Company combines warning education with skill honing through formats such as themed promotion days
The Company always puts production safety first and is committed to building a regular safety training system
and practical competition months, driving the transformation of safety responsibility from concept promotion into
covering all employees and running throughout operations. Since 2020, the Company has cumulatively
conscious action.
invested over RMB10 million, established a long-term partnership with dss+, a global operations management
consultancy, and systematically introduced its safety management improvement project. In 2025, the Company
initiated Phase II of its Lanzhou base project, implementing tiered training under the theme of “capacity
Case Building a Solid Foundation for Safety Culture and Fulfilling the Commitment to Employee Care
building” . The program aims to develop visible leadership among senior managers, enhance professional
management competencies for mid-level managers, and reinforce operational risk control skills among frontline
employees. Through systematic and customized training practices, we seek to deeply integrate advanced safety During the reporting period, the Nantong
concepts and methods into the daily work at all levels and continuously consolidate the Company's safety Base successfully held the sixth “Work Safety
culture. Promotion Day” event with the theme of
“United for Safety, Practicing Together” . The
event included management clarifying the
“zero incident” goal and taking the lead in
making a pledge, deepening warning education
through accident case analysis and safety short
films, organizing all employees to sign safety
commitments, promoting the implementation of
responsibilities, and customizing and distributing
practical protective equipment such as smoke
masks, to deepen all employees' awareness of
safety responsibilities.
Scene of the DSS Phase II Project Kick-off Meeting at Lanzhou Base
Reinforcing Safety Through Training-by-Competition and Strengthening Emergency
Case
Response Capabilities
Building a Solid Safety Defense Line through Systematic Return-to-Work Training for All In June 2025, the Lanzhou Base carried out a series of “Safety Month” activities, establishing an integrated
Case
Employees
training system of “learning, practice, competition, and application” . The activities covered five major practical
After the 2025 Spring Festival, the Company exercises, including a safety knowledge competition, the donning of positive-pressure air respirators, special
systematically organized the “First Lesson on work permit management simulations, two-person rescue collaboration, fire extinguishing equipment use,
Resuming Work” safety training for all employees comprehensively honing employees' theoretical knowledge and emergency response skills. The Company
across our global production bases, including sparked enthusiasm for participation through the competition, commended outstanding performers, and
Lanzhou, Nantong, Binhai, Shangyu, and Malta. promoted the translation of experience into practice, while planning subsequent tiered training, system
Across all production bases, the Company reinforcement, and collaborative hazard governance mechanisms, committing to transforming the mindset from
strengthened employees' safety awareness and “I am required to be safe” to “I want to be safe” .
adherence to operational standards through a
variety of methods, such as all-staff meetings,
screening of safety incident warning videos,
and detailed guidance on safety operating
procedures. The heads of each base emphasized
that safety is an uncrossable bottom line,
Start-of-work Training at Lanzhou Base
and encouraged employees to engage in the
new year's work with safety as a prerequisite.
This regular training mechanism, covering all
employees and featuring engaging formats, laid
a solid foundation for robust operations and
sustainable development throughout the year.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Fulfilling social responsibility
Risk management The Company has always regarded fulfilling social responsibility as an important part of our corporate mission. We
integrate into the local economy by empowering regional development, promote industry progress by empowering
In accordance with the Risk Classification and Control Policy, each subsidiary of the Company established a industry-academia innovation, and give back to the community through dedicated volunteer services, committing to
dedicated assessment team led by the Safety Department, in collaboration with functional departments such as becoming a trusted social citizen.
production, technology, and equipment, to systematically conduct risk identification and assessment. During the risk
identification stage, methods such as Job Hazard Analysis (JHA), Safety Checklist (SCL), and Hazard and Operability
Analysis (HAZOP) are comprehensively applied. During the risk rating stage, the Job Condition Risk Assessment
Empowering regional development
(LEC) method or the Risk Matrix Analysis (LS) method is adopted to scientifically evaluate the likelihood of accidents, While deepening the layout of core businesses, the Company actively integrates our development into the national
the frequency of personnel exposure, and the severity of consequences through semi-quantitative or quantitative coordinated regional development strategy, empowering local industrial upgrading and high-quality development
approaches, calculate risk values, and accurately determine risk levels. The Company requires organizing a through systematic practices.
comprehensive risk assessment at least once a year, and immediately initiating a dynamic reassessment in the event
Industrial investment and results transformation
of changes in laws and regulations, major adjustments to processes or equipment, and safety accidents, to ensure
the continuous effectiveness of risk control measures. Through substantial investment and project implementation, we have brought momentum for regional industrial
development. The pilot-scale and production base built in Lanzhou New Area successfully promoted the
Strictly based on the risk assessment results, the Company classifies risks into four levels— red, orange, yellow,
implementation of multiple projects, including antiviral drugs, enabling the first local industrial application of
and blue, and implements priority ranking and differentiated resource allocation according to the principle of “the
original scientific and technological achievements and injecting fixed-asset investment and high-value industrial
higher the risk, the higher the control level.” Meanwhile, we have established a multi-level supervision and inspection
opportunities into the region.
network covering “Company-level monthly comprehensive inspections, department-level weekly special inspections,
and team- and post-level daily patrols” to monitor risks in real time. We have also promoted the construction of
Introduction of green technologies and industrial upgrading
information-based management and control platforms at Nantong Base, Taicang Base, etc., to further enhance real-
time risk monitoring and early warning capabilities. We introduce advanced green chemistry processes into our production bases. Technologies such as
continuous-flow reactions and biocatalysis, which have been successfully applied at the Lanzhou base, provide
practical technical pathways and demonstrative models for the green and low-carbon transformation of the
Indicators and Targets local chemical industry.
Based on national laws and regulations, management system standards such as ISO 45001, and our operational
needs, the Company has set clear and measurable targets, and tracks progress through rigorous monitoring and Benchmark Demonstration and industry chain enablement
assessment mechanisms. During the reporting period, the Company largely achieved its key targets.
Our projects, characterized by “precise equipment matching, high transformation efficiency, and a steady pace
of industrialization” , have been recognized by local governments as benchmarks for effective investment
Indicators Unit 2025 target 2025 achieved value attraction. This successful model provides a replicable example for local investment promotion and industrial
chain development, serving as a catalyst for broader industrial agglomeration.
Serious injury Cases 0 0
Minor injury Cases 1 0 Government-enterprise collaboration and ecosystem co-construction
Work-related illness and injury Case 0 0 We focus on building a deep collaborative relationship with local governments by proactively aligning with
local industrial policies and actively obtaining government support in approvals, services, and other areas,
Major process safety incidents such as fire, working together to optimize the regional industrial ecosystem. On this basis, both parties explore innovative
Cases 0 0
explosion, and leakage mechanisms such as jointly establishing technology-sharing platforms, aiming to integrate our technological
capabilities and innovation resources more deeply into the regional development system and jointly enhance
Identification of hazards and the list of major overall industrial competitiveness.
Time Once/year 1
hazards, and timely update rate
Cross-regional experience sharing and cooperation
On-time completion rate of emergency drills % 100 100
By systematically hosting government delegations from various regions and facilitating two-way exchanges,
Employee safety training coverage % ≥ 95% 100
the Company exports its mature models and experiences in technology transfer, green production, and
Pass rate of new employees in the three-level park operations across regions. This approach not only provides different regions with replicable pathways
% 100 100
safety induction training for industrial upgrading but also promotes resource and information alignment between regions, helping
local authorities identify development opportunities and optimize industrial layouts. In doing so, we foster a
Employee health checkup implementation rate Time Once/year 1 collaborative industrial ecosystem on a broader scale, enhancing regional competitiveness.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Supporting industry-academia innovation High-level academic empowerment
The Company has long supported the cultivation of scientific and technological talent, and by establishing special Since 2016, the Company has annually sponsored
awards and building industry-academia platforms, we continuously support cutting-edge scientific research and Fudan University's Jin Si Lecture Series, consistently
the transformation of research achievements, injecting a core talent driving force into industry innovation and empowering high-end chemical research by
sustainable development. establishing a global top-tier academic exchange
platform. Each year, the Jin Si Lecture Series
Cultivating young scholars committee invites 3-6 internationally renowned
scientists in the field of chemistry to engage in in-
The Company has consecutively sponsored the “China Homogeneous Catalysis Prize for Young Scholars” for depth discussions on core topics such as “Latest
multiple sessions, systematically supporting the development of young scholars and creating an innovation Advances in Chemistry,” “Strategic Thinking on
platform for industry-academia collaboration. By continuously promoting cutting-edge research in catalytic Disciplinary Development,” and “Major Frontier
science, the Company is committed to driving the green and efficient transformation of relevant results into Issues in the Discipline.” These discussions not only
fields such as pharmaceuticals and new materials, empowering sustainable innovation in the industry through focus on breakthroughs in fundamental theories
practical investment, and fulfilling our long-term responsibility for technological development and talent but also emphasize interdisciplinary integration and
cultivation. the potential for result transformation. Additionally,
guest lecturers are awarded the Wu Zhengkai
Chemistry Prize, supported by donations from the
Company's Chairman Cai Tong, further incentivizing The 32nd Jin Si Lecture: Professor Fan Chunhai, Academician
scientific innovation. of the Chinese Academy of Sciences, Delivers a Repor
Volunteer services
The Company actively organizes and participates in various volunteer activities, continuously deepens community
engagement, and demonstrates social value and humanistic care. During the reporting period, after Yuzhong
County in Lanzhou suffered severe flash floods, the Company immediately dispatched urgently needed supplies
In June 2025, the Company's Director Dr. Xu Jun presented awards to the winners of the seventh such as raincoats, disinfectants, and protective clothing to assist the disaster area, ensuring the basic livelihood
“Young Scholar Award” at the 18th National Conference on Homogeneous Catalysis. of the affected people and demonstrating corporate responsibility in times of crisis. Meanwhile, the Company
responded to the call of Lanzhou New Area and organized employees to participate in voluntary tree planting
activities, supporting regional ecological civilization through practical actions.
Co-developing teaching bases
The Company opens its corporate laboratories and advanced equipment to students, with technical experts
delivering specialized lectures based on real-world industry cases. These sessions incorporate interactive
elements such as group discussions and hands-on experiences, offering students immersive learning scenarios
that bridge theory and practice, thus contributing significantly to talent development.
Jieyang No. 1 High School's “Huang Xuhua Class” Visits ABA Chemicals Supporting Disaster Relief in Yuzhong Participating in Voluntary Tree-
County, Lanzhou Planting Activities
ABA Chemicals
ABA Chemicals
Corporation 2025 Environmental,
Corporation 2025 Environmental,
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Sound Governance
for Sustainable,
Steady Growth
We firmly believe that only by taking the right
path can we achieve long-term success. To this
end, we have systematically built a modern
corporate governance structure, strictly adhered
to compliance baselines and high standards
of business ethics, and actively embraced the
intelligent manufacturing transformation centered
on digitalization, thereby forging a core synergy
that drives the steady progress of the Company.
Issues covered in this chapter
•Corporate governance
•Compliant operations
•Adherence to business ethics
•Digital transformation
Contributing to UN SDGs
Note: The picture shows ABA Chemicals Taicang Base
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Strengthening corporate governance Board independence
The Company has always regarded improving governance as the foundation of high-quality development. By strictly The Company attaches great importance to strengthening the independence of the Board of Directors.
complying with laws and regulations, continuously optimizing the governance structure, improving the policy system, Through a balanced Board composition, well-defined institutional arrangements, and effective performance
and strengthening standardized operations and effective checks and balances, we comprehensively enhance governance
mechanisms, it ensures that independent directors can effectively exercise their supervisory and
effectiveness and provide a solid guarantee for shareholder value creation.
counterbalancing roles in corporate governance.
Governance structure
The Company strictly complies with laws, regulations, and normative documents such as the Company Law of the People's
Balanced Board composition
Republic of China, the Securities Law of the People's Republic of China, and the Code of Corporate Governance for Listed
Companies , and continuously improves the modern corporate governance structure centered on the General Meeting of Our sixth Board of Directors comprises nine directors, of whom three (33.3%) are
Shareholders, the Board of Directors, and the operational management. By establishing and improving the policy system, independent directors, and one is an external director. The independent directors serve
optimizing decision-making mechanisms, and strengthening supervisory functions, we ensure that all governance bodies have as chairpersons of the Nomination Committee, Audit Committee, and Remuneration and
clear rights and responsibilities, operate in a standardized manner, and maintain effective checks and balances. Appraisal Committee, respectively, do not hold any positions in the Company other than
director, or any positions in the controlling shareholder, de facto controller, or their related
To enhance the scientific and professional nature of decision-making, the Board of Directors of the Company has established
four specialized committees, namely the Strategy and Decision-Making Committee, the Audit Committee, the Nomination parties, and possess the independence required to perform their duties.
Committee, and the Remuneration and Appraisal Committee. All committees perform their duties in accordance with the
Articles of Association of the Company and their respective working rules, providing professional advice and decision-making
support to the Board of Directors. In June 2025, the Company systematically revised, reviewed, and approved the Rules of
Well-defined institutional arrangements
Procedure for the Board of Directors and the working rules for the specialized committees under the Board of Directors,
further detailing procedural rules, clarifying the boundaries of responsibilities, and optimizing the decision-making process,
We have formulated and implemented the Independent Director Working System , which
making our corporate governance operations more standardized, operable, and forward-looking.
stipulate the functions and powers, qualifications, duty performance methods, and
safeguard measures for independent directors. The Board's Nomination Committee is
Board development responsible for the selection and review of independent director candidates during the
director appointment process.
The Company's Board of Directors continuously strengthens its own capacity building, promotes diversity, improves the
operation of specialized committees, fully leverages the role of independent directors, and effectively fulfills its functions of
strategic guidance, scientific decision-making, and supervision.
Effective performance mechanisms
Board effectiveness Our independent directors attend meetings of the Board and its specialized committees
In 2025, the Board of Directors of the Company adhered to the core principles of diligence and responsibility, standardized in accordance with the law, and participate in the deliberation of major matters such as
operation, and scientific decision-making, and efficiently fulfilled the core functions of corporate governance. The Board periodic reports, use of proceeds, external investments, related-party transactions, and
successfully completed the election for its sixth session, elected the Chairman in accordance with the law, and reviewed appointment of senior executives.
and approved the proposal on the appointment of the General Manager and other senior executives, effectively ensuring
the smooth transition of the management and the continuity of strategy execution. To adapt to the new Company Law
and changes in the regulatory environment, the Board of Directors systematically revised more than 20 core governance
documents, including the Articles of Association, the Rules of
Procedure for the Board of Directors, the Independent Director
Working System, the Information Disclosure Management System,
and the Internal Control Policy , continuously improving the internal
control system. During the reporting period, the Company held a
total of nine Board of Directors meetings, reviewed and approved 44
proposals, with a director attendance rate of 99%, fully reflecting the
Board's strong sense of responsibility and high efficiency in decision-
making. In addition, the directors strictly exercised their powers in
accordance with the Company Law, the Articles of Association, and the
rules of procedure, carefully reviewed major matters such as periodic
reports, the use of proceeds, external investments, and related-party
transactions, and actively utilized their professional backgrounds to
participate in discussions and provide constructive opinions.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Board diversity
Investor relations
In the nomination and appointment of directors, the Company adheres to the core principle of enhancing
The Company attaches great importance to investor communication, adhering to the principles of
the overall decision-making efficiency of the Board, taking into account the complementarity of members in
compliance, transparency, equality, and proactiveness. Leveraging a robust policy system and diversified
terms of professional experience, knowledge structure, industry background, and performance capabilities. In
communication channels, it continuously enhances the quality of information disclosure and interaction
the Working Rules for the Nomination Committee of the Board of Directors , the Company explicitly requires
effectiveness, and actively fosters long-term, stable, and mutually trusting investor relations.
that when selecting director candidates, emphasis shall be placed on the integration of diverse dimensions
to promote a Board composition that is well-structured, collaboratively capable, and diverse in perspectives.
Meanwhile, the Company arranges director terms reasonably, ensuring governance stability and continuity
while creating conditions for the introduction of new ideas and perspectives. Information disclosure
The new Board members' backgrounds span pharmaceutical R&D, fine chemicals, financial management, information disclosure, and has established a comprehensive internal control system with the Information
corporate strategy, and compliance governance. Several directors have years of experience in the governance Disclosure Management Policy at its core, supported by the Insider Registration Management Policy and
of listed companies or professional technical expertise, effectively supporting the Company's professional the Internal Reporting Policy for Material Information. By designating the Board Secretary as the person
judgment and efficient decision-making on key issues such as CDMO business expansion, the advancement directly responsible and the Board Office as the executing department, and mandating all departments and
of the “2+X” strategy, internal control optimization, and ESG system development. subsidiaries to internally report material information “at the first opportunity” , the Company ensures the
timeliness and accuracy of information disclosure at the source. During the reporting period, the Company
published 4 periodic reports and 144 interim announcements, which truthfully, accurately, and completely
material events, emergencies, etc. None of the announcements required any corrections.
Board diversity by
Board diversity by gender Board diversity by age educational background
Investor communication
Management Policy , with the Board Secretary as the person in charge and the Board Office as the executive
department, to ensure the compliance, equality, and proactiveness of communication. The Company maintains
frequent interaction with investors on issues such as development strategy, operating performance, and ESG
progress through multiple channels such as the Shenzhen Stock Exchange's e-interaction platform, the investor
the Company proactively responded to various investor requests, attentively answered 172 investor questions
Female 40-49 Bachelor's degree or below on the e-interaction platform, and actively answer investors' calls. We successfully held 1 performance briefing,
Male Above 50 Master's degree organized six investor research activities, which received a total of 87 investor visits, further solidifying the bridge
for in-depth communication between the Company and investors.
Doctoral degree
Date Method Number of Participants
Investors participating in the online results
Remuneration policy for Directors and May 2025 Online platform
presentation
Senior Executives June 2025 Site visit 2 institutions
The Board has established a Remuneration and Appraisal Committee, responsible for formulating
June 2025 Site visit 3 institutions
and reviewing remuneration policies and schemes for directors and senior executives. The committee
establishes clear appraisal standards, conducts performance evaluations for senior executives, and closely July 2025 Site visit 12 institutions and individual investors
links remuneration to the Company's performance and individual fulfillment of duties. To strengthen the
binding force and compliance of remuneration management, the Company has established a remuneration August 2025 Site visit 10 institutions
withholding and reclaim mechanism. When a senior executive commits gross negligence or intentional
misconduct and thus causes significant losses to the Company, results in substantial regulatory penalties August 2025 Telephone conference 27 institutions
for the Company due to his/her personal responsibility, or is involved in serious misconduct such as
misstatements in financial reporting or performance falsification, the Company has the right to reclaim the November 2025 Site visit 21 institutions
relevant remuneration already paid.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Compliant and prudent operations Strategy
The Company integrates the philosophy of compliant and prudent operations into corporate governance and As the cornerstone of robust corporate operations and sustainable development, compliance management
daily management, and by improving the internal control system, perfecting the risk management mechanism, is directly related to a company's risk prevention and control capabilities and long-term value creation. The
and strengthening policy execution and audit supervision, we systematically build a closed-loop compliance Company deeply recognizes that a sound compliance system is not only the fundamental guarantee for
management system covering all businesses and processes to effectively ensure our compliant and prudent lawful corporate operations, but also a key support for enhancing internal governance effectiveness and
operations. strengthening market trust. Facing an increasingly complex internal and external regulatory environment,
the Company integrates compliance management into the strategic level of corporate governance and is
committed to building a systematic, standardized, and efficient compliant operation mechanism. In response
Governance dimension to potential compliance risks, the Company strictly complies with the Basic Norms for the Internal Control
of Enterprises and relevant laws and regulations, and has established a compliance system centered on
The Company has established a three-tier compliance governance comprising the “supervisory level, the
the Internal Control Policy and the Internal Audit Management Policy. We have clarified the compliance
management level, and the execution level.” With clear roles and responsibilities at each level, it forms an
requirements and control responsibilities for various business processes, ensuring the effective connection
effective closed loop of supervision, management, and execution.
and coordinated operation of internal control and internal audit, and providing a solid guarantee for the
To ensure the effective operation of this framework, the Company has established a systematic safeguard sustainable and healthy development of the Company.
mechanism. In terms of the deliberation and supervision mechanism, the Audit Committee supervises the
Audit Department in conducting special inspections on major matters such as the use of proceeds, related
party transactions, and external guarantees at least every six months, and listens to the Audit Department's Financial
Risk type Risk description Impact duration impact
work report at least once a quarter. In terms of continuous monitoring and governance, the Company
requires the establishment of internal control processes spanning all major business processes, and conducts
continuous supervision and regular evaluation through internal audits. Upon identifying deficiencies, we urge Inadequate Failure to effectively identify existing or potential compliance Short term,
the responsible departments to formulate and implement rectification measures. In terms of the reporting compliance risk risks in business operations may result in the Company medium term, High
and review mechanism, while reviewing the annual report, the Board of Directors is required to review and assessment being exposed to compliance risks. long term
disclose the Internal Control Evaluation Report formulated based on internal audit results, thereby forming
closed-loop management from daily supervision to annual summary to ensure continuous optimization.
Inadequate Inadequate compliance policies or insufficient enforcement Short term,
compliance review may result in the Company breaching applicable laws and medium term, High
Compliance Governance Structure and supervision regulations. long term
•Board of Directors: It bears ultimate responsibility for the establishment,
improvement, and effective implementation of our internal control
Board of system.
Supervisory Directors •Audit Committee: As authorized by the Board, it is responsible for
level and its Audit supervising and evaluating the effectiveness of internal and external
Committee audit work and internal controls, leading and supervising the work and
reviewing the reports of the Audit Department, and issuing evaluation
opinions on the effectiveness of internal controls.
•They are responsible for organizing and implementing, at the Company
Management Senior level, the risk management and internal control policies formulated by
level Executives the Board, and ensuring their integration into day-to-day operations and
management.
•Functional departments and controlled subsidiaries: They are
Functional responsible for specifically implementing control activities in their
departments, operations and conducting daily risk identification and response.
Execution controlled •Audit Department: It is independent of operating departments and
level subsidiaries, reports directly to the Board's Audit Committee. It is responsible for
Audit conducting independent and objective supervision, inspection, and
Department evaluation of our internal control, risk management, and financial
information, among others.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Risk management Adherence to business ethics
The Company establishes a systematic risk management mechanism and, through the dual drivers of standardized
The Company adheres to operating with integrity and ethical conduct, and takes business ethics as
processes and culture cultivation, comprehensively enhances the capabilities in compliance risk identification,
the cornerstone of corporate development. By refining policies, clarifying responsibilities, strengthening
response, and continuous improvement.
supervision, conducting all-staff training, and implementing effective whistleblowing mechanisms, we
systematically build an anti-corruption and compliance defense line covering all businesses and processes,
Compliance risk management resolutely eliminate commercial bribery and unfair competition, and continuously consolidate the ethical
The Company has established a closed-loop risk management procedure spanning “identification-assessment- foundation for our high-quality development.
response-monitoring” to achieve dynamic management and effective response to all major risks, systematically
enhancing our overall risk resilience.
Risk identification Risk assessment
Governance dimension
Identify risk factors that may hinder the achievement Classify risks into “negligible” , “general” , and
of the Company's objectives, impede value creation, “significant” based on their likelihood of occurrence The Company has established a systematic business ethics governance structure featuring “supervision by
or erode existing value, from the perspectives of the and potential impact on the Company's objectives. the governance level, execution by the executive level, and participation by all employees” , comprehensively
macro environment, management processes, strategic covering key areas such as anti-corruption, anti-commercial bribery, anti-unfair competition, and anti-
decision-making information, internal and external monopoly, ensuring that compliance requirements are integrated throughout the entire process of decision-
operating conditions, and sustainable development. making, execution, and daily operations.
Business Ethics Governance Structure
Risk monitoring Risk response
Prepare risk assessment management documents, Determine risk response strategies based on the
track and control relevant risks, and design internal risk analysis results and underlying causes to Level Composition Responsibilities
control policies and measures based on the Company's avoid, accept, mitigate, or share risks.
business objectives and the needs of its business Board of Directors
Governance and Approve policies, supervise system effectiveness, and make
characteristics. and Audit
supervisory level decisions on major matters.
Committee
Cultivating a compliance culture Lead annual anti-corruption/anti-unfair competition audits,
Audit Department
examine policies, and promote rectification.
The Company conducts specialized training using the continuously updated Internal Control Manual as the core
training material, deeply embedding compliance requirements into business processes and strengthening the Review legal and compliance-related issues, resolve disputes,
Legal Department
compliance awareness of all employees. At the same time, the Company incorporates the implementation of and archive cases.
internal controls into the performance appraisals of all departments and subsidiaries, and leverages regular internal Functional and
execution level Organize compliance training for all employees, and incorporate
control audit projects to verify the implementation effectiveness on-site. In addition, the Company clarifies the risk Human Resources
compliance performance into performance appraisals,
management responsibilities of each position and, through the internal audit mechanism of “identifying issues - Department
promotions, and rewards and penalties.
promoting rectification - closed-loop tracking” , encourages employees to understand risks in practice and actively
fulfill their responsibilities, effectively building a solid compliance culture involving all employees. Business Implement business ethics requirements, and prevent
departments commercial bribery and unfair competition.
Indicators and targets All-staff
Comply with policies, participate in training, avoid conflicts
All employees of interest, and fulfill reporting obligations to jointly build a
responsibility level
According to the annual compliance management objectives, the Company sets compliance management compliance defense line.
metrics such as the number of escalated general deficiencies, the amount of administrative penalties, and the
number of compliance-related litigation cases to quantitatively evaluate the implementation effectiveness of
compliance management. During the reporting period, all metrics met the annual targets.
Strategy
Indicators Unit 2025 target Annual Actual
Number of general deficiencies escalated to major During the Reporting Period, in response to potential risks such as commercial bribery, kickbacks
items 0 0
or material deficiencies and commissions, expense fraud, misappropriation of Company assets, and conflicts of interest and
Amount of administrative penalties imposed due to related-party transactions, the Company improved institutional mechanisms, organized training for all
RMB 0 0
compliance-related issues employees, strengthened external supervision, and established a whistleblower protection mechanism
Number of litigation or arbitration cases arising to comprehensively enhance compliance governance capabilities and build a solid defense line for anti-
cases 0 0
from compliance-related issues corruption, anti-commercial bribery, and fair competition.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Financial
Risk type Risk description Impact duration impact Strengthening partner compliance supervision
Employees provide customers, suppliers, or other third The Company effectively extends the compliance supervision chain to business partners (including suppliers
Short term,
parties with gifts, cash gifts, securities, and other benefits, and partners) to jointly build a clean business ecosystem. In contract management, the Company explicitly
Commercial bribery medium term, Moderate
or solicit or accept improper benefits provided by the other requires business partners to comply with anti-corruption laws and regulations in relevant agreements,
long term
party, in order to influence their business decisions. prohibits any form of commercial bribery, and makes it a legally binding obligation. In terms of onboarding
and ongoing management, the Company makes ethics and integrity reviews a prerequisite for cooperation,
Employees solicit or accept unrecorded economic benefits
Short term, and incorporates them into regular assessments. In addition, the Company indirectly evaluates the compliance
Kickbacks and such as personal kickbacks or commissions in the course
medium term, Moderate performance of business partners through annual business ethics audits and other means.
commissions of business, thereby harming the Company's interests or
long term
undermining the principles of fair trade.
By forging or falsely reporting expense reimbursement Establishing a whistleblowing protection mechanism
documents for travel, entertainment, procurement, Short term,
Expense fraud etc., employees fraudulently obtain Company funds, medium term, Moderate The Company has established a clear and reliable whistleblowing and protection mechanism, aimed at
which constitutes embezzlement or occupational long term encouraging internal and external stakeholders to courageously expose acts such as offering bribes, accepting
misappropriation. bribes, and illicitly receiving benefits. This mechanism clearly specifies dedicated whistleblowing channels,
including hotlines and email addresses, and solemnly commits to keeping strictly confidential whistleblowers'
Employees, without authorization, take, misuse, or dispose
Short term, identities, the reported content, and the investigation process. Upon receiving a report, the Company, led by
Misappropriation of of Company assets, including funds, equipment, materials,
medium term, High our Audit Department , will conduct a prudent investigation into the reported content under the premise of
company assets and intellectual property, or use Company resources for
long term strict confidentiality, maintain communication with whistleblowers, and provide them with timely feedback
personal purposes.
on the investigation progress or results to the extent permitted by law and as necessary. The Company
Employees use their position to seek improper benefits for strictly prohibits any form of retaliation, and stipulates that those responsible for such behavior will be held
Conflicts of interest themselves, their relatives, or related parties, or participate Short term, accountable, thereby providing solid institutional protection for whistleblowers. All reports received will be
and related party in business activities that may affect the objective medium term, High investigated promptly, impartially, and thoroughly, and the investigation results will serve as the basis for
transactions performance of their duties, and fail to declare or recuse long term subsequent actions, ensuring that no violations go undetected.
themselves as required.
Improving policy control mechanisms
[Reporting channels]
The Company systematically integrates anti-corruption, anti-commercial bribery, and anti-unfair competition Business Ethics Reporting Hotline: +86 (021)-51159199-309
requirements into our existing governance and internal control systems, forming a policy system centered
Business Ethics Reporting Email: compliance@abachem.com
on the Business Ethics Policy and the Code of Business Conduct and Ethics, and others. Specifically, the
Business Ethics Policy and the Code of Business Conduct and Ethics explicitly prohibit corrupt practices such
as commercial bribery, soliciting or accepting improper benefits, and transferring benefits to third parties to
influence decision-making, while also prohibiting unfair competition and monopolistic behaviors such as price
manipulation, market division, exchange of sensitive commercial information, and abuse of market dominance,
and require employees to proactively declare and recuse themselves from conflicts of interest. The Internal Risk management
Control Policy, Internal Audit Management Policy , and Trade Secret Protection Policy jointly support the
The Company fully incorporates compliance risks such as commercial bribery, corruption, and unfair competition
effective implementation of the Business Ethics Policy.
into the overall internal control and risk management framework. As the core supervisory body, the Audit
Department conducts at least one special business ethics audit covering the headquarters and all subsidiaries
Implementing holistic training programs
annually. Meanwhile, during routine and ongoing internal control supervision, the Audit Department explicitly
The Company attaches great importance to the foundational role of training in risk prevention, and conducts lists compliance risks such as corruption, commercial bribery, and unfair competition as the core content for the
business ethics training for all directors, all employees, and all suppliers, covering core issues such as anti- inspection and assessment of key business processes such as procurement, sales, investment, and information
corruption, anti-commercial bribery, anti-unfair competition, and anti-monopoly. Strictly benchmarking disclosure. By systematically identifying and assessing potential risk points in business processes, optimizing
against anti-corruption policies, business ethics policies, and laws and regulations such as the Anti-Unfair policies and refining processes in a targeted manner, and combining this with retrospective tracking of the
Competition Law , the training programs aim to ensure that all individuals involved in our operations clearly rectification status, we achieve dynamic risk management and closed-loop control.
understand our compliance policies, legal and regulatory requirements, and behavioral boundaries. Training
During the Reporting Period, the Company included business ethics compliance as a key focus of the
formats include classroom sessions, onboarding and key position qualification training, targeted compliance
annual internal control audit and conducted special audits across all levels, covering high-risk areas such as
briefings, and online self-learning, with differentiated content designed for governance-level personnel and
procurement, sales, and R&D, with a focus on anti-corruption, anti-commercial bribery, and conflict of interest
high-risk positions. At the same time, the Company incorporates compliance performance into performance
management.
appraisals, promoting the deep integration of training and management.
ABA Chemicals
ABA Chemicals
Corporation
Corporation
Social,Social,
and Corporate
and Corporate
Governance
Governance
(ESG) (ESG)
ReportReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for
Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable, Steady Growth
Indicators and targets Digitalization development plan
The Company has set key quantitative metrics focusing on the effectiveness of the business ethics management
The Company carries out targeted practices at the two major production bases in Lanzhou and Nantong.
system, aiming to comprehensively evaluate the implementation effectiveness of business ethics-related risk
Leveraging system integration and intelligent upgrades, we deeply embed digital capabilities into production
controls through special audit coverage, defect rectification tracking, and the monitoring of illegal and non-
operations and management and control processes, and are committed to building a new data-driven,
compliant incidents. During the reporting period, all metrics met the annual targets.
transparent, and efficient governance paradigm, providing solid support for strategic decision-making and risk
management and control.
Indicators Unit 2025 target Annual Actual
Coverage rate of dedicated business ethics
% 100 100
audits
Digital Integration of production systems
Rectification completion rate of business ethics-
% 100 100
related deficiencies At the Lanzhou base, with the supOS industrial internet platform as the core, the Company has integrated
systems such as DCS, batch control, production execution, warehouse, and quality and equipment
Number of unfair competition or antitrust cases
cases 0 management to build an integrated digital production system. This practice adopts a phased implementation
involving litigation
approach, being first implemented in production units
such as Lanwo Technology and Lanzhou ABA Fine
Chemicals, achieving data integration and business
Optimizing the “Intelligent Manufacturing” synergy from the equipment level to the management
level. In the future, the Company plans to deploy
system the supOS MES system on some production lines of
Lanzhou ABA Pharmaceutical Creation, focusing on
connecting the data link between the ERP and the
The Company firmly seizes the strategic opportunities of digital transformation, takes intelligent, data-driven,
production site to achieve closed-loop management
and green development as the core, promotes the intelligent manufacturing upgrade of production bases, and
of the entire process from the issuance of production
builds an efficient, transparent, and safe digital manufacturing system.
orders to completion reporting and feedback.
Digital transformation strategy
The Company's digital transformation strategy is closely aligned with national policy guidance and our own Intelligent manufacturing capability upgrade
development needs. Actively responding to policy documents such as the Urban Pilot Program for SME Digital
Transformation, we view digital transformation as an important engine for enhancing core competitiveness and At the Nantong base, the Company focuses on promoting the comprehensive upgrade of intelligent
achieving sustainable development. manufacturing capabilities. By comprehensively deploying the Distributed Control System (DCS) and Safety
Instrumented System (SIS) on the production lines, and extensively applying intelligent equipment such as fully
Core Objectives of Digital Transformation
automatic centrifuges and packaging machines, a
solid foundation for full-process automation has been Key performance
laid. Meanwhile, the Company has built a “five-in-one”
intelligent factory platform integrating functions such
as personnel positioning, hazard identification, major
hazard monitoring, and a dual prevention mechanism,
Intelligent operations Data-driven value creation Safe and green development In 2025, Nantong Base successfully obtained the
achieving intelligent safety and production management.
Achieve visibility, controllability, Break down information silos, Through process improvement In 2025, Nantong Base successfully obtained the AA-
AA-level
a n d t ra c e a b i l i t y t h ro u g h o u t achieve data integration and and refined management and level Integration of Informatization and Industrialization Integration of Informatization and
the entire production process, analysis, and drive production control, reduce energy and Management System Assessment Certificate and the Industrialization Management System
AA-level Digital Transformation Management System Assessment Certificate
reduce reliance on manual labor, optimization and precise material consumption, and
and improve decision-making management. enhance intrinsic safety and Assessment Certificate , marking the Company's and the
attainment of a national advanced standard in building
efficiency. environmental protection levels. AA-level
“multi-process safety production control capabilities
Digital Transformation Management
based on information system integration.” System Assessment Certificate.
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report
Table of Key Performance Indicators
Table of Key Performance Indicators
Performance indicators Unit 2025
Environmental dimension
Hazardous waste volume – reused/recycled tons 5,297.29
Performance indicators Unit 2025
Percentage of hazardous waste reused/recycled % 27.69
Investment in environmental protection ten thousand RMB 3,485.08
Exhaust Gas
Greenhouse gas emissions
PM tons 0.92
Total Scope 1 emissions tCO2e 523.89
Nitrogen oxides (NOX) tons 1.34
Total Scope 2 emissions tCO2e 68,953.10
Sulfur oxides (SOx) tons 0.12
Total Scope 3 emissions tCO2e 184,113.80
Non-methane total hydrocarbons tons 2.14
Category 1: Purchased goods and services tCO2e 105,161.99
Volatile organic compounds tons 0.42
Category 3: Fuel- and energy-related activities tCO2e 23,436.72
Category 4: Upstream transportation and distribution tCO2e 17,792.17
Category 5: Waste generated in operations tCO2e 12,704.13 Note: The data on this page currently does not include the Company's overseas operations.
Category 6: Business travel tCO2e 16,197.51
Category 7: Employee commuting tCO2e 408.33
Category 9: Downstream transportation and distribution tCO2e 8,412.95
Energy
Social dimension
Direct energy consumption tce 441.97 Performance indicators Unit 2025
Natural gas m 261,440.00 Research and innovation
Diesel kg 19,693.00 330
Number of R&D staff persons
Gasoline kg 85,423.00
Proportion of R&D personnel % 27.62
Indirect energy consumption tce 19,412.81
R&D investment ten thousand RMB 11,673.85
Purchased electricity MWh 46,283.00
R&D investment as a percentage of operating revenue % 8.93
Outsourced steam tons 126,412.00
Invention patent applications in 2025 Item 4
Renewable energy consumption MWh 479.42
Water Invention patents granted in 2025 Item 3
Total water withdrawal m3 221,568.00 Utility model patents granted in 2025 Item 24
A. Withdrawal: direct abstraction from groundwater m 0 129
Total invention patents held Item
B. Withdrawal: direct abstraction from groundwater m 1,840.00
Total utility model patents held Item 136
C. Withdrawal: municipal water supply (or from other companies) m 219,728.00
Total design patents held cases 2
Volume of recycled water used m3 34,128.00
Quality and service
Wastewater discharge m3 188,482.70
Product pass rate % 98.4
Waste
Products recalled tons 0
Non-hazardous waste tons 49.00
Hazardous waste tons 13,819.22 Customer complaints received cases 4
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report
Table of Key Performance Indicators
Performance indicators Unit 2025 Performance indicators Unit 2025
Customer complaint resolution rate % 100 Work-related injury rate % 0.18
Violations related to product/service health, safety, and labeling cases 0 Lost workdays due to work-related injuries days 397
Confirmed complaints regarding customer privacy breaches or data loss cases 0 days per RMB 1
Lost workdays per million revenue due to work-related injuries 0.30
million revenue
Violations in marketing and promotional activities cases 0
Work-related fatalities persons 0
Supplier management
Work-related fatality rate per million revenue % 0
Total number of suppliers companies 383
Severe work-related injuries (excluding fatalities) cases 0
Total core suppliers companies 125
Rate of severe work-related injuries (excluding fatalities) % 0
Strategic suppliers companies 77
Recordable work-related injuries cases 4
Key suppliers companies 64
Incidents per 1.81
Domestic suppliers in China companies 365 Total recordable injury rate (TRIR) per million hours worked million hours
worked
Overseas suppliers outside China companies 18
Safety training sessions Time 186
Proportion of local suppliers % 33
Safety training attendances personsTime 4,477
Supplier business ethics compliance rate % 100
Employee coverage rate for production safety training % 100
Suppliers certified to quality management systems companies 163
Average safety training hours per employee hours 13.08
Suppliers certified to occupational health and safety management systems companies 140
Coverage rate of employee work injury insurance % 100
Suppliers certified to environmental management systems companies 140
Coverage rate of employee safety liability insurance % 100
Suppliers signing integrity cooperation agreements (or commitments) companies 106
Composition of employees
Suppliers audited companies 72
Full-time employees persons 1,192
Suppliers suspended due to non-compliance companies 0
Part-time employees persons 3
Potential suppliers disqualified due to non-compliance companies 0
Female employees persons 411
Information security and privacy protection
Male employees persons 784
Losses caused by violations of laws and regulations related to data or 0
ten thousand RMB Employees aged 29 and under persons 182
customer information breaches
Confirmed complaints involving customer privacy breaches or data loss cases 0 Employees aged 30-39 persons 423
Business coverage rate of data security–related certifications % 100 Employees aged 40-49 persons 329
Number of data security / customer privacy protection training times Time 8 Employees aged 50 and above persons 261
Training coverage rate on data security and customer privacy protection % 100 Employees working in China persons 1,104
Average training hours per person on data security and customer privacy 2 Employees working overseas persons 91
hours
protection
Senior management (vice president and above) persons 47
Encryption coverage rate for sensitive data % 100
Middle management (assistant manager to director) persons 173
Access control coverage rate % 99
General employees persons 975
Occupational health and safety
Employees with master’ s degrees and above persons 71
ten thousand
Investment in production safety 1,003.35 Employees with bachelor's degrees persons 306
RMB
Investment in employee work injury insurance ten thousand RMB 51.71 Employees with associate degrees persons 305
Investment in employee safety liability insurance ten thousand RMB 20.87 Employees with high school education and below persons 513
Occupational disease incidence rate % 0 Diversity, equality, and inclusion
Foreign employees persons 66
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report
Table of Key Performance Indicators
Corporate governance
Performance indicators Unit 2025 Performance indicators Unit 2025
Employees from ethnic minority groups persons 10 Board diversity and effectiveness
Female employees at assistant manager level and above persons 43 Total number of Board members persons 9
Percentage of women in management positions % 19.55 Independent directors persons 3
Employee discrimination or harassment incidents cases 0 Female Board members persons 2
Incidents involving child labor, forced labor, or trafficking cases 0 Percentage of female Board members % 22
Labor contract signing rate % 100 Board meetings held during the year Time 9
Average paid leave days per employee days 8.38 Resolutions reviewed and approved by the Board items 44
Return-to-work rate of female employees after parental leave % 100 Average attendance rate of Board members % 99
Retention rate of female employees after parental leave % 100 General meetings of shareholders held Time 5
Social insurance coverage rate % 100 Board special committee meetings held Time 11
Employee turnover Resolutions approved by the General meetings of shareholders items 29
Total number of employee departures persons 214 Percentage of Independent Directors on the Strategy and Decision-Making
% 66
Committee
Number of male employee departures persons 186
Percentage of Independent Directors on the Audit Committee % 66
Number of female employee departures persons 28
Percentage of Independent Directors on the Remuneration and Appraisal
Number of senior and middle management departures persons Committee
Number of employee departures aged 29 and below persons 56 Percentage of Independent Directors on the Nomination Committee % 66
Number of employee departures aged 30–39 persons 82 Information disclosure and investor communication
Number of employee departures aged 40–49 persons 45 Performance briefings held Time 1
Number of employee departures aged 50 and above persons 31 Investor research activities times 6
Employee training Response rate to investor Q&A on interactive platforms % 97
Employee training coverage % 100 Number of investor questions answered via cninfo.com items 172
Average training hours per employee hours 45.63 Total number of disclosures via designated channels pieces 148
Average training hours per male employee hours 37.13 - Periodic disclosures pieces 4
Average training hours per female employee hours 52.23 - Ad hoc disclosures pieces 144
Average training hours per senior employee hours 50.82 Compliance management
Average training hours per mid-level employee hours 40.41 Number of unfair competition or antitrust cases involving litigation cases 0
Average training hours per frontline employee hours 62.08 Coverage rate of dedicated business ethics audits % 100
Social contribution Rectification completion rate of business ethics-related deficiencies % 100
External donation RMB 84,000
Note: Supplier management and occupational health and safety indicators under social performance currently do not include the
Company's overseas operations.
ABA Chemicals Corporation 2025 Environmental, Social, and Corporate Governance (ESG) Report
Index Reader Feedback Form
Index
Index Against the Self-Regulatory Guidelines Index Against the Self-Regulatory Guidelines
No. 17 for Companies Listed on Shenzhen No. 17 for Companies Listed on Shenzhen
Reporting chapter GRI Standards Reporting chapter GRI Standards
Stock Exchange — Sustainability Report (For Stock Exchange — Sustainability Report (For
Trial Implementation) Trial Implementation)
About This Report GRI 2-1, GRI 2-2, GRI 2-3, GRI 2-4, GRI 2-5 —— GRI 403-1, GRI 403-2, GRI 403-3, GRI 403-4,
Building a solid safety
GRI 403-5, GRI 403-6, GRI 403-7, GRI 403-8, Article 50
defense line
Message from the GRI 403-9, GRI 403-10
GRI 2-22 ——
Chairman
Fulfilling social
GRI 203-1, GRI 203-2, GRI 413-1, GRI 413-2 Article 39, Article 40, Article 42
About ABA Chemicals GRI 2-6, GRI 2-7 —— responsibility
GRI 2-9, GRI 2-12, GRI 2-13, GRI 2-14, GRI Sound Governance for Sustainable, Steady Growth
ESG Management ——
GRI 2-9, GRI 2-10, GRI 2-11, GRI 2-12, GRI
Strengthening corporate
Technological Excellence and Superior Quality Lead the Future 2-13, GRI 2-14, GRI 2-15, GRI 2-17, GRI 2-18, ——
governanc
GRI 2-19, GRI 2-20, GRI 2-21, GRI 405-1
Adhering to innovation-
GRI 203-1, GRI 203-2 Article 42
driven development Compliant and prudent
GRI 2-27, GRI 206-1 ——
operations
Strictly controlling quality
GRI 416-1, GRI 416-2 Article 47
and safety GRI 2-23, GRI 2-24, GRI 2-25, GRI 2-26, GRI
Adherence to business
ethics
Creating high-quality 411-1, GRI 415-1
GRI 417-1, GRI 417-2, GRI 418-1 Article 47, Article 48
services
Optimizing the “Intelligent
GRI 203-1 Article 42
Building a resilient supply GRI 204-1, GRI 308-1, GRI 308-2, GRI 414-1, Manufacturing” system
Article 45, Article 46
chain GRI 414-2
Table of Key Performance
Green Development and Enduring Protection of Nature —— ——
Indicators
Environmental compliance Index GRI 1, GRI 2, GRI 3 Article 57
GRI 2-27, GRI 303-1, GRI 303-2 Article 33
management
Reader Feedback Form GRI 2-3 Article 53
Addressing climate change GRI 201-1, GRI 201-2 Articles 21 to 28
GRI 302-1, GRI 302-2, GRI 302-3, GRI 302-4,
Improving resource
GRI 303-1, GRI 303-2, GRI 303-3, GRI 303-4, Article 35, Article 36
efficiency
GRI 303-5
GRI 305-1, GRI 305-2, GRI 305-3, GRI 305-4,
Strict control of pollution
GRI 305-5, GRI 305-6, GRI 305-7, GRI 306-1, Article 30, Article 31
emissions
GRI 306-2, GRI 306-3, GRI 306-4, GRI 306-5
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