Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
About This Report 03
Company Profile 07
Enhancement of Returns to
Shareholders
Disciplines through Safety
Improvement of Risk Management 25 Management and Reinforcing
Message from 05 Industrial Layout 07
Anti-Commercial Bribery and 28 Well-Being through Health
the Chairman Corporate Culture 08 Anti-Corruption Protection
Development Milestones 09 Anti-Unfair Competition 30
Fortification of Safety Defense Lines 91
Management
Afterword to the 117 Certifications and Awards 11 Coordination of Safety Strategy 91
Report Annual Performance Highlights 11
Enhancement of Risk Control 92
Advancing Craftsmanship
Key Performance Form 117 through Environmental Implementation of Protection 95
Indexes 124
Governance Production with Green Establishment of Safety Goals 98
Feedback 126
Response to SDGs 13
Intelligence Support for Occupational Health 99
Philosophy of Sustainable 14 Response to Climate Change 33
Development
Environmental Compliance 37
Governance Framework
for Sustainable Development
Recycling of Resource 51
through Employee
Development and Contributing
Identification of Sustainable 15
Development Risk Ecological and Environmental 57 Warmth to Society through
Protection
Talent Engagement
Deepening of Sustainable 15
Development Practices
Protection of Employees' Rights 103
Communication with Stakeholders 16 and Interests
through Resilient Supply Chains Practice of Social Welfare 112
Management of Material Topics 17
and Delivering Quality
Excellence through Continuous Contribution to Rural Revitalization 114
through Sound Governance
and Ensuring Sustainability
Innovations
Enhancement of Innovation Engine 61
through Compliant Operations Consolidation of Product Quality 71
Consolidation of Governance System 21 Protection of Customer' Rights and 77
Interests
Optimization of Compensation 22
Management Protection of Data Privacy 79
Advancement of Investor Relations 23 Co-Building of Responsible 83
Management Supply Chain
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
About This Report
Introduction Data Source
This is the inaugural Environmental, Social, and Governance (ESG) Report (the "Report") of Dezhou United Petroleum All information and data in this report are sourced from the Company's actual operational data, publicly available
Technology Corp. ("the Company"), aiming at providing stakeholders with a complete disclosure of the Company's ESG government data, annual financial statements, relevant internal statistical reports, and third-party survey questionnaires,
practice and performance in 2025 and responding to ESG topics of critical concern to stakeholders. The Board pledges to etc. Unless otherwise specified, all amounts in the Report are expressed in RMB. For any discrepancy between the financial
prudently oversee the contents of this report, ensuring its absence of false records or misleading representations, and data in the Report and that in the Company's Annual Report, the latter shall prevail.
assuming responsibility for its truthfulness, accuracy and completeness.For any discrepancy between the Chinese version
and the English version, the Chinese version shall prevail.
Appellation Description
Reporting Scope Company Name Short Name
The Report covers Dezhou United Petroleum Technology Corp. and its subsidiaries. Unless otherwise stated, the scope of
Dezhou United Petroleum Technology Corp. DUPT, the Company, We
the Report is consistent with that of the Company's Annual Report.
Xinjiang DUPT Machinery Co., Ltd. Xinjiang DUPT
Reporting Period Qingdao DUPT Energy Technology Co., Ltd. Qingdao DUPT
This report covers the period from January 1, 2025 to December 31, 2025 (the "Reporting Period"). To enhance the continuity Lianhe Petroleum Technology Service Ltd. Russian subsidiary
and comparability of the Report, certain disclosures have been extended appropriately to include data from preceding and
subsequent years. IAE International Inc. IAE International, U.S. Subsidiary
Preparation Basis
Access to this Report
Shenzhen Stock Exchange Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability
Report (For Trial Implementation) This report can be accessed and downloaded from the websites of the Company (http://www.dupm.cn), the Shenzhen Stock
Exchange (http://www.szse.cn), or the Cninfo platform (http://www.cninfo.com.cn).
Shenzhen Stock Exchange Self-Regulatory Guidelines No. 3 for Listed Companies on the Shenzhen Stock Exchange - Preparation
of Sustainability Reports (Revised in 2026)
Ministry of Finance of the People's Republic of China Guide to Application of China Corporate Sustainability Disclosure Standards
- Basic Standards (for Trial Implementation)
Reader Feedback
Global Reporting Initiative Sustainability Reporting Standards (GRI Standards 2021)
To further enhance the quality of our ESG information disclosure, improve our ESG management practices, and strengthen
China Enterprise Reform and Development Society Guide to Corporate Sustainability Reporting in China (CASS-ESG 6.0)
recognition of our value in the capital markets, we sincerely invite readers to share your comments and suggestions (see
China National Standardization Administration Committee (CNSA) Guidelines on Social Responsibility (GB/T 36000-2015) the "Feedback Form" for details). Please kindly send your feedback to the Company's email address (limingxia@dupt.cn).
Task Force on Climate-related Financial Disclosures (TCFD) Recommendations
United Nations Sustainable Development Goals (SDGs)
Sustainability Accounting Standards Board Standards (SASB Standards)
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Message from the Chairman
In 2025, amidst a complex external environment and Social (S): Empowering Shared Growth through the Fulfillment of Social Responsibilities
numerous industry challenges, Dezhou United Petroleum
Technology Co., Ltd. upheld the values of being "custom- We uphold a striver-oriented philosophy, and regard employees as our core strength. We strive to protect employees' rights
er-centered and striver-oriented", embraced the mission and interests, highly value the rights and dignity of every employee, and advocate an open and transparent management
to "provide first-class products and services to the oil and model that enables employees to fully realize their potentials and grow with us in a fair, harmonious, and respectful working
gas development industry", and integrated customer re- environment.
quirements throughout the value chain. In addition, we
We also practice the philosophy of "taking from society and giving back to society". In 2025, we supported regional
integrated the ESG philosophy into the core of our strategy,
development through diversified public welfare initiatives. For cultural and educational development, we donated RMB
drove green transformation through innovation, led sus-
tainable development through responsibility fulfillment,
environmental protection, we donated more than 500 native tree species to Dezhou City to improve the urban microclimate.
and achieved remarkable results.
In addition, we actively organized employees to participate in voluntary blood donation. contributing 8,900 milliliters of
As a leading manufacturer in the petroleum drilling and blood to alleviate the shortage of blood for clinical use, thereby demonstrating our commitment as a responsible corporate
production equipment industry, we stand at the forefront citizen.
of energy development and promote industry advance-
ment through technological innovation. In 2025, we
advanced with determination, deepened the integration Governance (G): Ensuring Steady Operations through Standardized and Transparent Governance?
of intelligent equipment and low-carbon technologies, and
We prioritize standardized and transparent governance to improve our institutional framework. In 2025, focusing on legal
actively participated in the optimization of the global
risk prevention and control, we issued multiple compliance management systems, established review mechanisms,
energy structure. We also supported the green, intelligent,
formulated integrity-building systems, and reorganized and standardized the Audit Committee to strengthen our audit
and efficient development of the oil and gas equipment
oversight capabilities. The Board of Directors issued five listing compliance and adaptability management systems, and
industry, and continuously enhanced our core competi-
refined regulations on financing processes, investor communication, and information disclosure standards to ensure the
tiveness within the value chain of the global petroleum
comprehensive coverage of our governance system.
drilling and production equipment industry.
Furthermore, supported by our outstanding credit performance and compliant operation capabilities, we obtained a "5A"
rating in corporate credit, to further strengthen our industry reputation and market competitiveness.
Environmental (E): Promoting Sustainable Development through Green Innovation? Looking Ahead: Embarking on an Intelligence-ignited New Development Journey with Joint Efforts?
We regard sustainable development as a core strategy and have comprehensively promoted our green and low-carbon The year 2026 will be a critical year for the development of the oil and gas equipment industry. Guided by ESG principles,
transformation. In 2025, we fully upgraded the management model of downhole motors, one of our core products, and we will continue to deepen our digital and intelligent transformation, and promote breakthroughs in R&D innovation and
adopted component lifecycle management to cover the entire process from R&D and production to recycling, significantly market expansion. We sincerely call on all employees to "embrace change and build resilience", seeking new opportunities
improving our resource utilization efficiency. In the same year, we obtained Green Enterprise Evaluation Certification and in quality improvement, cost reduction, efficiency enhancement, and capital market operations.
Carbon Footprint Certification. This marked that our overall environmental management level and product lifecycle carbon
reduction capabilities reached an industry-leading level. We completed the installation of a photovoltaic power generation Let us work together to put the philosophy of green development into practice through concrete actions to safeguard our
system, and a green electricity coverage across our plant areas, contributing to realizing regional carbon neutrality goals. shared planet. With a strong sense of responsibility, we will contribute to the development of the oil and gas equipment
We also upgraded our intelligent production lines, introduced automated spraying production lines, and implemented industry, jointly promote its transformation and upgrading, and create an even more brilliant future for DUPT!
environmental upgrades to glue injection production lines, significantly reducing energy consumption per unit product.
Our adhesive injection process received an "A" rating in the environmental impact assessment. These efforts enabled us to Thank you!
gain a win–win outcome for both economic and environmental benefits, and set an industry benchmark for green and
sustainable development.
Cheng Guihua, Chairman of DUPT
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
About DUPT Corporate Culture
DUPT regards corporate culture as the core driving force of corporate development. We advocate the core values of
"Customer-Centered and Striver-Oriented", and are committed to promoting the shared development of our company,
Company Profile our employees, and society through integrity-based operations, continuous innovation, and excellent services, thereby
creating sustainable value for all stakeholders.
Founded in 1961, Dezhou United Petroleum Technology Co., Ltd. (Stock Code: 301158.SZ) is a comprehensive petroleum
equipment manufacturing enterprise integrating R&D, production, operations, and services. The main products of the
Values
Company include drilling tools, wellhead equipment, drilling equipment, oil production equipment, and related engineering
and technical services. Our core products, i.e., downhole motors, are widely used in oilfields both domestically and
internationally and have become an industry benchmark. In the principles of being "Customer-Centered and Safety
Mission
Philosophy Customer
Striver-Oriented", we have established the HSE system, and passed API and ISO 9001 quality management certifications. -Centered To provide
Our products and services have been recognized by the three major state-owned groups—CNPC, Sinopec, and CNOOC— and first-class
Safety Always Striver- products and
and are exported to more than 20 countries and regions worldwide. The Company has been honored with titles such as Comes First Oriented services for oil
"National High-Tech Enterprise", "National 'Little Giant' Specialized and Sophisticated Enterprise that Produces Novel and and gas
development
Unique Products", and "National Intellectual Property Advantage Enterprise". Moving forward, the Company will continuously
drive innovation to create sustainable value for its customers and society. Work To become a
Instant Response reliable partner of Vision
Style
and Pursuit of the international oil
Perfection and gas development
Industrial Layout
industry
Sincere, Friendly, Unity, Truth Seeking,
Grateful, and Innovation,
Dedicated Perseverance
We manufacture a wide range of specialized drilling tools, including downhole motors,
Drilling Staff
Tools non-magnetic products, hydraulic vibrators, near-bit motors, and RSS downhole motors. Spirit
Downhole motors, one of our main products, are widely used in drilling operations for vertical, Guidelines Do better with Honesty-Based,
heart Diversified
directional, sidetrack, and horizontal wells, as well as various workover operations. They meet and Win-Win
the demands of complex drilling scenarios, and enjoy a strong reputation and market presence
in oilfields both domestically and internationally.
Service Business
With over 30 years of deep expertise in wellhead and well control equipment, we have developed
Wellhead and Philosophy Philosophy
Well Control a range of mature products, including conventional wellheads, integrated wellheads,
Equipment single-casing dual-wellheads, fracturing wellheads, and choke and kill manifolds. We possess
comprehensive support capabilities for operations ranging from onshore to offshore (and from
Manufac- conventional to unconventional) oil and gas operations.
turing of
Drilling Focusing on the systematic R&D and manufacturing of oilfield production enhancement and
Tools and Oilfield Production injection products, our products include hydraulic injection pumps, hydraulic profile control and
Drilling Enhancement and water shutoff pumps, and intelligent injection systems. These solutions enhance recovery rates
Equip- Injection Systems
ment and injection efficiency, providing reliable equipment support for stable and increased oilfield
production.
We provide key equipment such as oil drilling rigs, downhole motor testing systems, and hydraulic
Drilling Equipment assembly/disassembly stands. The downhole motor testing system includes a full set of
and Downhole
inspection and verification platforms, such as a rotary steerable system (RSS) ground simulation
Motor Testing
System water circulation test system, and a downhole motor test bench, ensuring product performance
and operational safety.
We are also engaged in the high-end hose business in the oil and gas exploration and production
High-Pressure
field, with our core product being ultra-wear-resistant high-pressure acidizing and fracturing
Hoses
hoses. These hoses offer advantages such as high-pressure resistance, corrosion resistance,
wear resistance, and long service life, making them suitable for various harsh operating
conditions.
Engineering Relying on our proprietary core products, we provide engineering and technical services and integrated solutions
and covering directional drilling, horizontal drilling, and workover operations, achieving a "products + services" dual-drive
Technical model.
Services
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Development Milestones
Listed on the National Equities Exchange oped MWD instruments
Conducted relocation and and Quotations (NEEQ) Market
capacity expansion
Initiated independent
Founded the predecessor of the Company entrepreneurship
Established the Repair Factory of the First
Survey and Exploration Team under the
Successfully completed the
Geological Department independent R&D of downhole
motors
Listed on the Growth Enterprise Market
Conducted the strategic acquisition of IAE
International
Successfully developed mud pump components Implemented restructuring and diversification
Took the lead in achieving the localization Realized self-reliance
of imported components
Established strategic cooperation with Yantai Jereh
Oilfield Services Group Co., Ltd.
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Certifications and Awards Environmental Protection Performance
Investment in Environmental Protection Total GHG Emissions GHG Emissions Intensity
Awarding Authority Name
Environmental and Sustainable Development Certification Pollutant Monitoring Compliance Rate Waste Disposal Compliance Violations of Laws and Regulations
Jinchen Standard (Tianjin) Certification Group Co., Ltd. AAAAA-Level Green Enterprise Certification 100 % 0 Case
Jin Qian Certification Co., Ltd. Organizational Carbon System Certification
Excellent Oriental (Tianjin) Inspection and Green Factory Certification Governance Performance
Certification Co., Ltd.
Green Supply Chain Certification General Meeting of Board of Directors Number of On-Site Investor
Participants of Training Sessions on
Anti-Commercial Bribery and
Shareholders
Anti-Corruption for the Management
Management System and Capacity Certification
Jinchen Standard (Tianjin) Certification Group Co., Ltd. AAA-Level Enterprise Credit Evaluation Certification
Total Participants of Training Sessions on Anti- Business Ethics Violation Incidents
AAA-Level Integration of Informatization and
China Electricity Council (CEC) Science & Industrialization Management System Certificate
commercial Bribery and Anti-Corruption
Technology Service Center AAA-Level Digital Transformation Management 807Person
System Evaluation Certificate
Awards for Technological Innovation and Recognition of Platforms
IndustryValue Performance
Second Prize of the Natural Resources Science and Technology
China Land Science Society Award (Project: Key Technologies and Applications for Efficient
Detection of High-Temperature Geothermal Resources) Investment in R&D Cumulative Number of Customer Number of Violations Incidents Related to
Second Prize of the Science and Technology Progress 2,807.75 Authorized Patents Satisfaction Information Security and Privacy Protection
Dezhou Science and Technology Bureau
Award of Dezhou City RMB 10,000 115 Case 96.73 % 0 Time
Dezhou Key Laboratory for Manufacturing and Application
Technology of Downhole motors
Environmental Protection and Product Quality Certification Human Resources Performance
Dezhou Municipal Bureau of Ecology and Environment "A" Rating of the Adhesive Injection Process in
Environmental Impact Assessment Investment in Work Safety Coverage Rate of Occupational Health Checkup Percentage of Female Employees
Department of Industry and Information Technology of "Premium Products on Shandong Chain" Certification 175.39 RMB 10,000 100 % 12.41 %
Shandong Province (Product: Downhole motors)
Number of Employee Training Sessions Investment in Employee Training Training Coverage Rate
Annual Performance Highlights
Economic Performance
Total Assets Operating Revenue Net Profit Attributable to the Parent Company
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Sustainable Development Governance SDGs Our Action Corresponding Section
•Engage in community construction •Practice of Social Welfare
•Support sustainable development •Environmental Compliance Management
Response to SDGs
•Implement responsible production •Environmental Compliance Management
SDGs Our Action Corresponding Section •Optimizing Resource Utilization •Recycling of Resources
•Provide local employment opportunities •Contribution to Rural Revitalization
•Support community services •Practice of Social Welfare •Respond to climate change
•Response to Climate Change
•Promote carbon emission reduction
•Support for Occupational Health
•Ensure the health and safety of employees
•Protection of Employees' Rights and
•Deepen employee care and benefits •Protect water environments
Interests •Environmental Compliance Management
•Prevent pollutant emission
•Offer employee training •Protection of Employees' Rights and
•Provide smooth development pathways Interests •Enhance ecological governance
•Ecological and Environmental Protection
•Protect land resources
•Protect employees' rights and interests •Protection of Employees' Rights and
•Solidifying Foundation through Sound
•Promote gender equality Interests •Improve corporate governance
Governance and Ensuring Sustainability
•Uphold compliant operations
through Compliant Operations
•Strengthen water resource management •Environmental Compliance Manage-
•Strengthen communications with
•Prevent and control water pollution ment
stakeholders •Sustainable Development Governance
•Build partnership
•Use clean energy
•Recycling of Resources
•Improve resource efficiency
Philosophy of Sustainable Development
•Establish a sound compensation system •Protection of Employees' Rights and
Focusing on long-term development and aligning with global sustainable development trends, DUPT has established and
•Promote local economic growth Interests
continuously refined the Environmental, Social and Governance (ESG) Management System. Guided by the development
philosophy of innovation, coordination, green development, openness, and shared benefits, the Company comprehensively
promotes the implementation of environmental protection, social responsibility, and governance practices in corporate
•Advance digital transformation •Enhancement of Innovation Engine
operations, injecting strong momentum into sustainable development.
•Implement technological innovation •Protection of Data Privacy
•Promote fair employment •Protection of Employees' Rights and
•Reduce internal inequality Interests
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Governance Framework for Sustainable On this basis, DUPT actively explores mechanisms for linking ESG indicators with the compensation and performance evaluation
system. Through quantitative evaluation methods, the Company establishes a two-way transmission channel for incentives and
Development constraints, strengthens the motivation of the Management to fulfill ESG responsibilities, and promotes the deep integration
and long-term implementation of sustainable development objectives into corporate operations and management.
DUPT places sustainable development at the core of corporate governance and has established a three-tier ESG
governance structure featuring "overall leadership by the Board of Directors, implementation by the Management, and Case Kick-off Meeting for the Preparation of DUPT's 2025 ESG Report
coordinated execution by functional departments and subsidiaries". Specifically, the Board of Directors is responsible for
reviewing ESG strategic directions and major issues, and exercising decision-making and oversight duties; the Management In December 2025, DUPT held a kick-off meeting for the preparation
integrates ESG targets into operational decision-making to ensure effective implementation of strategies; and business of the ESG report, bringing together heads of various business units.
units and functional departments collaborate with a clear division of responsibilities to strengthen resource support and The meeting focused on interpreting ESG policies and industry
closed-loop management. Through this system, the Company systematically identifies and manages ESG risks and trends, analyzing market risks and peer case studies, and conducting
opportunities, strengthens the Board's oversight of sustainable development performance, and promotes the creation of thematic discussions based on the Company's realities. These efforts
long-term value with stakeholders. Going forward, the Company will continue to optimize governance mechanisms, enhance comprehensively enhanced key personnel's understanding of ESG,
the transparency of information disclosure, and improve governance effectiveness. their ability to implement ESG initiatives, and their data governance
capabilities, to ensure that subsequent efforts meet high-standard
professional requirements.
Board of Directors
(Decision-making Level)
Communication with Stakeholders
ESG Working Group
DUPT regards stakeholder engagement as a critical component of ESG management and continuously builds a systematic
(Management Level) and multi-dimensional communication system. We strictly follow GRI, AA1000 and other international standards, expand
communication channels, optimize interaction methods, actively listen to stakeholder concerns, respond to reasonable
requests, and enhance the inclusiveness and effectiveness of communication, thereby supporting the Company's sustainable
ESG Work Coordination Organization development.
(Execution Level)
Stakeholders Expectations and Demands Communication and Response
Compliant Operation
Comply with laws and regulations
Environmental Compliance Management
Identification of Sustainable Development Risk Response to National Development Poli-
Implement environmental protection
Respond to relevant policies
cies
Government or Regulator Pay taxes fully and legally
Closely aligned with development strategies and operational realities, DUPT integrates ESG into the overall management Lawful Tax Payment
Create employment opportunities
system. During the Reporting Period, the Company identified and assessed risks and opportunities in areas such as Fulfillment of Social Responsibility
environmental compliance management, response to climate change, pollutant emissions, occupational health and safety,
innovation-driven development, and safety and quality of product and service. Targeted control measures were formulated Conduct pre-sales communication
and implemented effectively enhance proactive management and forward-looking response capabilities for ESG risks. Provide after-sales service and complaint
Product Quality and Safety management
Details regarding the identification of core risks and opportunities are provided in the corresponding sections below. Customer Service Management Conduct customer exchange
Customers Customer Privacy Protection Implement customer data and privacy
Deepening of Sustainable Development Practices management
DUPT continuously deepens the ESG capacity building by offering specialized training and organizing seminars and Improve business performance
Return on Investment
exchanges to enhance all employees' understanding of and ability to apply the philosophy of sustainable development. The Ensure timely and transparent information
Information Disclosure
Company is committed to integrating ESG principles into job responsibilities and key business processes, promoting the disclosure
effective transformation from conceptual understanding to practical implementation, and laying a solid foundation for Shareholders or Investors Governance
Standardize corporate governance
improving ESG management effectiveness.
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Stakeholders Expectations and Demands Communication and Response
Very
Employment and Protection of Rights high
Protect employees' rights and interests
and Interests
Improve compensation system
Employee Compensation and Benefit Pollutant Emissions
Safety and Quality of Products and
Establish smooth promotion pathways
Employees Career Development and Training Services
Enhance health and safety systems Employee Training and Development
Employee Safety and Health
Ecosystem and Biodiversity Protection
Materiality of Economic, Social and Environmental Impacts
Achiement of Mutual Benefit and Win- Realize strategic cooperation Environmental Compliance Management
Water Resource Utilization
Win Results Conduct supplier management
Response to Climate Change
Supply Chain Management Create responsible supply chain
Suppliers and Partners Occupational Health and Safety Innovation-driven
Anti-Corruption and Integrity Implement transparent procurement Development
Waste Disposal
Protection of Employees' Legal Rights and Interests
Social Contribution Actively engage in public welfare activities Social Contribution Supply Chain Security
Public Welfare Organizations Rural Revitalization Support rural revitalization Anti-Commercial Bribery and Anti-Corruption
or Community Organizations
Energy Utilization
Anti-Unfair Competition
Management of Material Topics Circular Economy
Data Security and Privacy Protection
In line with the development strategy, with reference to domestic and international ESG disclosure standards such as the
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial
Implementation), and in close alignment with the latest industry development trends, DUPT identified material topics by Due Diligence
comprehensively assessing stakeholder engagement, ESG expert opinions, and management feedback with a
dual-perspective assessment approach based on financial materiality and impact materiality.
Topic Analysis Process Assessment Method Financial Materiality Very high
The Company comprehensively reviewed business value chains and carefully analyzed
Self- the impacts, risks, and opportunities related to ESG associated with each operational
Assessment
segment. Impact Materiality Topic
Based on comprehensive consideration of stakeholder opinions, and with reference to Environmental Compliance Management, Response to Climate Change,
Topic international standards and industry practices such as GRI, SDGs and SASB, the Double Materiality Pollutant Emissions, Occupational Health and Safety, Innovation-Driven
Identification Company established a multi-dimensional and multi-level sustainability topic pool Development, Safety and Quality of Products and Services
through topic benchmarking and preliminary screening.
Financial Materiality Only Supply Chain Security
In the principle of double materiality, the Company systematically assessed the short-,
Topic medium-, and long-term impacts of ESG topics on the environment, society, and the
Assessment Company's finances through internal and external research and expert evaluation, and Water Resource Utilization, Waste Disposal, Ecosystem And Biodiversity
scientifically prioritized these topics to clarify management priorities. Impact Materiality Only Protection, Protection of Employees' Legitimate Rights and Interests,
Employee Training and Development
Topic Based on the topic assessment results, a materiality matrix was developed and Energy Utilization, Circular Economy, Anti-Commercial Bribery and
Response submitted to the Management for review, and the final results were transparently and General Materiality Anti-Corruption, Anti-Unfair Competition, Due Diligence, Data Security
comprehensively disclosed in this Report. and Privacy Protection, Social Contribution
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Solidifying Foundation through
Sound Governance and Ensuring
Sustainability through Compliant
Operations
DUPT continuously optimizes a modern governance structure
centered on the Board of Directors, improves a closed-loop
management system covering strategy, compliance, risk con-
trol, and integrity, strictly implements information disclosure
systems to safeguard investor communication, and integrates
business ethics and anti-corruption requirements into the
entire operational process, thereby effectively enhancing gov-
ernance transparency and effectiveness and consolidating the
foundation for sustainable development.
Responded UN Sustainable Development Goals (SDGs):
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Consolidation of Governance System
investors, the Company strictly implements separate vote counting and timely disclosure. During the Reporting Period, the
Company convened and held the General Meetings of Shareholders in accordance with applicable laws and regulations,
and ensured that procedures were compliant and resolutions were lawful and valid, thus effectively safeguarding the le-
gitimate rights and interests of all shareholders.
Governance Structure Key Performance
DUPT has established a modern corporate governance structure centered on the General Meeting of Shareholders, the General Meetings of Shareholders Convened: 2 Sessions Proposals Approved: 19 Proposals
Board of Directors, and the Management, featuring clear delineation of powers and responsibilities and effective checks
and balances. In response to regulatory requirements, and in accordance with the Company Law of the People's Republic
of China and the Transitional Arrangements for the Implementation of Supporting Institutional Rules under the New Company Board of Directors
Law, and based on operational realities, the Company, taking into account operational realities and following a resolution
The Board of Directors is the decision-making body of the Company and answers to the General Meeting of Shareholders.
at an Extraordinary General Meeting of Shareholders, has abolished the Board of Supervisors and incorporate functions
To ensure scientific decision-making and standardized operations, the Board of Directors has established four specialized
into the Audit Committee under the Board of Directors, and simultaneously strengthened independent director supervision
committees, i.e., the Strategy Committee, the Remuneration and Appraisal Committee, the Audit Committee, and the
and internal audit mechanisms, to further improve the effectiveness of internal control and risk management.
Nomination Committee, and strictly implements the Rules of Procedure for the Board of Directors.
In conjunction with adjustments to the governance structure, DUPT systematically revised and formulated 27 institutional
In terms of independence, DUPT has formulated the System of Work of Independent Directors, which clearly defines the
rules and regulations, and improved the governance institutional system centered on the Articles of Association, including
qualifications, performance requirements, and independence judgment principles of independent directors to ensure their
rules of procedure for the General Meeting of Shareholders, the Board of Directors, and specialized committees. Through
independence in fulfilling their duties. The Board of Directors consists of 9 members, of which 3 are independent directors.
standardizing meeting operations, strengthening information disclosure, and ensuring the performance of duties by
All independent directors meet the independence requirements of the Measures for the Administration of Independent
independent directors, the Company ensures the effective implementation of governance mechanisms and continuously
Directors of Listed Companies and the Articles of Association. They do not hold positions in the Company other than as
enhances the standardization of corporate governance.
directors, and have no relationships with the Company, major shareholders, or actual controllers that may affect their
independent and objective judgment, and they are able to participate in decision-making and exercise effective oversight
General Meeting of Shareholders
in a diligent and responsible manner.
Strategy Committee
In terms of diversity, members of the Board of Directors possess diverse professional backgrounds in fields such as
petroleum engineering, business administration, finance and legal compliance, and have extensive industry and
Remuneration and Appraisal Committee management experience, which enables the Board of Directors to have a scientifically structured and well-balanced board
Board of Directors composition. Through well-established nomination and election procedures, the Company has built the Board of Directors
Audit Committee Audit Department a team with complementary knowledge structures and experience backgrounds, to make the decisions of the Board of
Board Secretary
Directors more scientific and holistic.
Nomination Committee
Management Key Performance
Meetings Held by the Board of Directors: 5 Sessions Proposals Approved: 52 Proposals
Research
Institute of
General Human Financial Securities Supply HSE Quality Equipment Intelligence and
Administration Business Subsid-
Meetings Held by the Remuneration and Appraisal Committee: 1 Session Meetings Held by the Audit Committee: 5 Sessions
Manager’s Resources Management Investment Management Management Management Management Informatization
Science and Department Groups iaries
Office Department Department Department Department Department Department Department Department
Technology
Organizational Chart
Optimization of Compensation
General Meeting of Shareholders Management
The General Meeting of Shareholders serves as the highest decision-making body, and strictly operates in accordance with Through the Remuneration and Appraisal Committee, DUPT implements standardized management of the remuneration
the Articles of Association and the Rules of Procedure for the General Meeting of Shareholders. It is convened through a com- of directors and senior management. Based on job responsibilities, performance, and industry standards, remuneration
bination of on-site and online voting methods to fully safeguard the rights of all shareholders—especially minority share- policies and specific plans are formulated and implemented upon approval by the Board of Directors, ensuring that
holders—to attend and vote at the General Meeting of Shareholders. For major matters involving the interests of minority remuneration decisions are standardized, transparent, and aligned with the Company's long-term interests.
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Advancement of Investor Relations Case "Rational Investment with Me" Investor Open Day Event
Management
In September 2025, the Company successfully held the "Rational Investment with Me" Investor Open Day Event, inviting
more than ten representatives from institutions such as Guoxin Securities and individual investors to visit the digital
exhibition hall and intelligent workshops on site. During the event, the Management engaged in in-depth discussions
Information Disclosure with investors on topics such as the Company's development strategy, core technologies, and industry trends. This
effectively enhanced the market's understanding of and trust in the Company, further deepening transparent and
In strict accordance with applicable laws and regulations on information disclosure, DUPT has formulated internal systems mutually trusting investor relations.
such as the Information Disclosure Management System and the Insider Information and Insiders Registration Management
System, to effectively fulfill information disclosure obligations and ensure that information is true, accurate, complete, timely,
and fair. The Company publishes announcements in a standardized manner through designated media and platforms,
continuously improves internal reporting, review, and confidentiality mechanisms, and effectively prevents insider trading
and selective disclosure.
DUPT has clearly designated the Chairman as the primary person responsible for information disclosure, with the Board
Secretary taking the lead in managing information disclosure affairs. All departments and subsidiaries strictly fulfill their
direct responsibilities to ensure investors have equal access to information and to safeguard their legitimate rights and
interests. During the Reporting Period, no violations related to information disclosure, leakage of insider information, or
insider trading occurred in the Company.
Key Performance
Total Announcements Disclosed throughout the Year: 116 Periodic Reports And Summaries: 6 Enhancement of Returns to Shareholders
Interim Announcements: 110 Investor Relations Activity Record Forms: 7
Upholding sustainable returns to shareholders, DUPT has formulated profit distribution policies based on the current
Public Opinion Management
development stage, profitability level, and future capital planning. We have established a stable, transparent, and continuous
cash dividend mechanism to ensure that shareholders can share in the development achievements of the Company. By
To effectively manage reputation risks in the capital market, DUPT has established a public opinion management system, continuously improving return planning and clarifying dividend expectations, the Company strengthens long-term market
formulated the Public Opinion Management System, and specifically set up a Public Opinion Management Leading Group. For confidence, enhances investor trust and return levels, and achieves synergistic growth in shareholder value and corporate
major public opinion events that may cause or have caused abnormal fluctuations in the share price, the Company has established value.
standardized handling procedures covering event investigation, solution formulation, clarification of information through
Dividend Year 2022 2023 2024
compliant channels, and accountability. Through efficient handling of public opinions, the Company maintains market fairness
and stability, and effectively safeguards brand reputation and the legitimate rights and interests of shareholders.
Total Cash Dividend (Tax Inclusive) RMB 24.0593 Million RMB 45.1112 Million RMB 45.9244 Million
Investor Relations Management Annual Dividend Payout Ratio 31.45% 52.01% 46.30%
Key Performance
DUPT attaches great importance to investor relations management and
has formulated the Investor Relations Management System. Adhering to
the principles of compliance, equality, proactiveness, and integrity in
Investors' On-site Surveys: 5 Times
Investors' On-site Surveys: 20 Person-times
communication, the Company actively maintains transparent and efficient
interaction with investors through diversified channels, and ensures
information symmetry through regular earnings briefings and investor Investor Questions Replied on Cninfo
open days. This approach continuously enhances market recognition,
builds a mutually trusting and win-win investor relationship, and Platform: 151 Reply Rate: 100 %
establishes a sound image in the capital market.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Improvement of Risk Management
Case Company-wide Legal Awareness Promotion Campaign
In December 2025, DUPT launched a two-week compa-
ny-wide legal awareness promotion campaign. Through
online quizzes, offline legal information stations, and special
Compliant Operations exams and contract evaluations covering key positions such
as procurement, sales, and technologies, the campaign deep-
ened employees' awareness of compliant operations in areas
Compliance Management System such as the control of contract risks and the protection of
trade secrets, and effectively promoted the integration of risk
control into business operations.
DUPT steadily advances the construction of compliance management systems and strictly implements comprehensive
compliance management requirements. By formulating regulations such as the Litigation and Arbitration Case Management
System, the Employee Code of Conduct, and the Integrity Construction Management System, the Company has established
a regulatory framework covering core areas including legal compliance, operational management, and integrity and
self-discipline. In addition, an Integrity Development Committee and a specialized working group have been established
Case Special Training on Lawful and Compliant Employee Management
to clarify responsibilities and operational mechanisms. Consolidating the foundation of compliance through top-level
design, institutional systems, and organizational support, the Company is committed to fostering a culture of compliance
and an ecosystem of integrity, to provide reliable guarantees for the steady operation and sustainable development of the In December 2025, to enhance the management team's ability
Company. to prevent and control employment risks, the Company orga-
nized a special training session titled "Legal and Compliant
Management Pathways for Employees Deemed 'Unable to
Compliance Management Mechanism Perform Their Duties'". The session systematically explained
relevant legal concepts, scientific methods for performance
evaluation, and compliance-based termination procedures,
DUPT continuously improves the implementation mechanism for compliance management. By formulating and
aiming to shift management practices from subjective judg-
implementing special guidelines and operational standards, compliance requirements are embedded into processes such
ment to objective criteria, thereby effectively improving the
as contract management and business approvals. The Company focuses on conducting systematic identification and
compliance level of employment management.
prevention in key areas such as contract management and financial transactions, clarifies compliance standards and
responsibility boundaries in various business activities, and promotes the effective implementation of compliance
management measures through institutional promotion and routine supervision. These efforts effectively enhance the
overall level of compliant operations and provide execution support for standardized operations and risk prevention.
Case Formulation of Guidelines for Contract Risk Prevention and Control
Import and Export Compliance Management
In February 2025, DUPT organized all functional departments to systematically identify legal risks in external contracts, DUPT has formulated and implemented the Measures for Trade Compliance Management, strengthening compliance control
covering key types such as revenue and expenditure contracts. The Company then developed targeted standards for throughout the entire import and export process. Compliance screening has been embedded into business processes, and
the entire process—from drafting to signing—ultimately producing the Guidelines for the Identification and Prevention strict reviews are conducted for key aspects such as customer background, end use, material sources, supplier admission,
of Legal Risks in External Contracts, thereby establishing a standardized framework for compliance operations and risk and transactions involving sanctioned countries/regions in revenue and procurement contracts. The Company has
prevention in core business processes. established and dynamically maintained compliance control lists and transaction review ledgers to enhance traceability
across all aspects of cross-border business, thereby ensuring that international operations fully comply with applicable
laws, regulations, and trade control requirements while preventing cross-border operational risks.
Cultivation of Compliance Culture
DUPT is committed to fostering a compliance culture that involves all Key Performance
employees. Through specialized legal awareness campaigns and a series Number of Compliance Training Sessions: Case Training on the Compliance of Import and Export Trade
of training programs, the Company continuously enhances the
compliance awareness and risk prevention capabilities of employees in
key positions. Additionally, the Company strengthens behavioral Duration of Compliance Training: 321 Hours terminology explanations, an overview of U.S. international trade laws, and the Company's compliance systems and
constraints and positive guidance to ensure that compliance requirements Participants of Compliance Training: processes. The training aimed to equip key business personnel with a thorough understanding of international
are internalized and reflected in actions, making compliance a conscious regulations and the Company's latest compliance requirements, enhance their ability to identify and mitigate risks in
behavior and professional habit for all employees. cross-border operations such as procurement and sales, and ensure the stable operation of international business.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Risk Management tax management positions with clearly defined job responsibilities and approval authorities. The Company has established
rules for key processes such as contract execution, invoice management, and tax declaration to ensure the lawful fulfillment
of tax obligations and effectively prevent tax-related risks. Meanwhile, the Company continuously tracks tax incentive
Risk Management System policies, regularly conducts tax risk assessments and control activities, and promotes the iterative upgrading of the tax
management system toward compliance and efficiency, providing strong support for the Company's sound operations.
DUPT has established the risk management system commensurate with business scale and risk characteristics. With the
Internal Audit System as the core supervisory mechanism, the Company clarifies that the Board of Directors and the Audit
Committee are responsible for risk management oversight, while the Audit Department independently carries out risk
assessments and internal control evaluations and regularly audits and reports on key risks related to finance, operations,
and compliance. The Company integrates risk management into the entire business process, engages accounting firms
Anti-Commercial Bribery and
to conduct audits of internal control effectiveness, and dynamically optimizes controls in conjunction with internal audits.
This forms a closed-loop management model of self-inspection, attestation, and optimization, ensuring the effective
Anti-Corruption
operation of risk prevention and control across all stages and safeguarding the operational security of the Company.
Training on Risk Management Anti-Corruption Management System
Key Performance Attaching great importance to anti-corruption management, DUPT has formulated core policies such as the Integrity
DUPT regards the training on risk management as a critical component
Training Sessions on Risk Management: Construction Management System and strengthened their implementation effectiveness. The Company has established an
of system capacity building, aiming to enhance the management team's
capabilities in risk identification, assessment, and response. The Company
efforts across the Company and all business operations. Responsibilities, authorities, and codes of conduct are clearly defined,
regularly conducts specialized training covering all business areas. Duration of Training on Risk Management:
and specialized integrity conduct standards have been developed for key areas such as procurement and investment.
Through case studies, process reviews, and mechanism discussions, we 5 Hours
continuously strengthen risk awareness among all employees, and DUPT adheres to the fundamental principle of "zero-tolerance", establishes a reward and punishment mechanism that includes
Participants of Training on Risk Management:
provide a solid foundation of talent and organizational support for the specific exemption clauses, as well as confidential reporting channels to encourage internal oversight. Through integrity
effective implementation of the comprehensive risk management system. 216 Persons training, cultural awareness campaigns, and internal audits, the Company effectively prevents and controls risks of bribery
and corruption, ensuring honest and compliant operations. During the Reporting Period, neither the Company nor its
Case Team Collaboration Risk-Themed Exchange and Training employees were involved in any incidents of embezzlement or corruption, nor were there any violations of business ethics.
In July 2025, DUPT organized management personnel
at all levels to participate in training on barriers to team Anti-corruption Management Measures
collaboration, enhancing awareness of collabora-
tion-related risk control. Through mechanism optimi-
zation driven by case studies and follow-up verifica-
Integrity Culture Development
tion, the Company achieved a 30% improvement in Key Performance
cross-departmental communication efficiency and a DUPT prioritizes the construction of an integrity culture,
Participants of Training Sessions on Anti-Commercial Bribery
striving to create a corporate culture ecosystem character-
This effectively strengthened team execution and co- ized by integrity, transparency, and compliance among all and Anti-Corruption for the Management: 14 Persons
hesion, laying a solid foundation for advancing the employees. Through regular anti-corruption training Duration of Training on Anti-Commercial Bribery and
Company's operational objectives. programs, the Company strengthens professional ethics
Anti-Corruption for the Management: 25.50 Hours
and behavioral standards across the workforce. Targeted
Participants of Training on Anti-Commercial Bribery and
integrity education is implemented for key leadership
Tax Management positions to deepen the Management's awareness of clean Anti-Corruption for Employees: 807 Persons
and responsible performance of duties, thereby fortifying Duration of Training on Anti-Commercial Bribery and
To standardize tax management, DUPT formulated and implemented the Tax Management System, clearly designating the the defense against misconduct at the ideological and
behavioral levels.
Anti-Corruption for Employees: 1,210.50 Hours
Finance Management Department to oversee tax-related work, and requiring subsidiaries to establish full-time or part-time
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Case Themed Lecture on "Integrity Building" Anti-Corruption Audit and Supervision
In July 2025, the Chairman of the Company delivered a
DUPT integrates ongoing anti-corruption audits into routine business audits and internal control assessments, focusing
themed lecture on "Integrity Building" at the mid-year
on reviewing the design effectiveness and implementation rigor of internal control systems in high-risk areas, and evaluating
all-staff meeting. He explained the Company's integrity
their actual effectiveness in preventing fraud. During the Reporting Period, the Company completed special audits in areas
values and code of conduct to employees, aiming to
such as procurement and bidding, as well as infrastructure construction, and identified no fraudulent activities. For areas
foster an atmosphere that values integrity and
requiring improvement as identified during the audits, the Company has formulated corrective measures, which are being
practicality and convey the unwavering commitment of
steadily implemented by the Management to continuously enhance the effectiveness and deterrent impact of
the Management to integrity and compliance from the
anti-corruption efforts.
top down.
Whistleblower Protection Mechanism
Case Special Deployment for "Integrity Building-Themed Lecture and Work Arrangements"
To strengthen integrity oversight, DUPT has established a secure, independent, and multi-channel whistleblowing network
In December 2025, the Company conducted a special deployment for "Integrity Building-themed Lectures and Work for employees, partners, and the general public. In accordance with established policies, the Company clearly defines
Arrangements" for the Management. Through activities such as company-wide quizzes, self-inspection and whistleblowing channels and strictly upholds its commitment to the confidentiality of reported information. Any form of
self-correction, and supervisory feedback, the initiative promoted top-down, company-wide learning in key retaliation is strictly prohibited, and violators are held strictly accountable to ensure the effectiveness and credibility of the
departments such as the Financial Management Department and the Procurement Center, ensuring the comprehensive whistleblowing mechanism, thereby continuously fostering a clean and upright operational environment.
permeation and effective implementation of the integrity culture.
Whistleblowing 0534-2237900 0534-2237998 Integrity Construction Suggestion Boxes in the office
Channels building and workshops
qinglian@dupm.cn
Whistleblowing The Integrity Construction Working Group is responsible for receiving, registering, preliminarily reviewing,
Treatment and investigating reported matters. Based on the investigation results, cases will be handled in
accordance with regulations, and timely feedback will be provided to the whistleblower to ensure a
compliant and transparent process.
Protection of The information of whistleblowers and the content of reports will be kept strictly confidential. Retaliation
Whistleblowers is strictly prohibited, and violators will be held strictly accountable to effectively safeguard the legitimate
Training of the Surface Technology Business Division Training of Procurement Center rights and personal safety of whistleblowers.
Reward for Whistleblowers whose reports are verified as true and help recover losses for the Company will be
Anti-Corruption Risk Control Whistleblowers rewarded with cash or in-kind incentives to encourage proactive supervision.
DUPT systematically manages risks related to commercial bribery and corruption across high-risk areas including
procurement, sales, finance and taxation, investment, and human resources. These risks are assessed and prioritized based
on their likelihood of occurrence and potential impact. The Company identifies key risk positions, and adopts comprehensive Anti-Unfair Competition Management
internal control measures such as segregation of duties, authority control, transparent operations, and behavioral
constraints. Continuous monitoring is achieved through financial monitoring, IT early-warning systems, and internal audits.
In strict accordance with laws and regulations such as the Anti-Unfair Com- Key Performance
Major risks are promptly identified and corrected to ensure they remain under control and to continuously optimize the
governance environment. petition Law of the People's Republic of China and the Anti-Monopoly Law of Training on Anti-Monopoly and Fair
the People's Republic of China, DUPT clearly defines specific codes of conduct
for marketing activities in the Integrity Construction Management System,
Competition: 1 Session
Integrity Management for Business Partners regulating the behavior of sales personnel to ensure honest business Signing Rate of Integrity Agreements for Key
practices, fair competition, and the maintenance of market order. Relying on
existing integrity construction framework and training system, the Company in-
Positions: %
DUPT extends the requirements for integrity to the management of business partnerships. At the initial engagement stage,
corporates anti-unfair competition management into routine compliance education and supervision, and requires all employees
the mutual obligations for anti-bribery and anti-corruption cooperation are clarified and incorporated into the core criteria
to uphold professional ethics and firmly resist behaviors that undermine fair market competition, such as false advertising, malicious
for the selection, performance evaluation, and termination of partners. The Company promotes the signing of integrity
defamation, and commercial bribery. During the Reporting Period, no major litigation or administrative penalties due to unfair
agreements to jointly foster an open, fair, and transparent business environment and collaboratively mitigate the risks of
competition occurred in the Company.
commercial corruption.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Advancing Craftsmanship through
Environmental Protection and
Empowering Production with
Green Intelligence
DUPT deeply integrates sustainable development into corpo-
rate governance and daily operations, identifies and manages
transition and physical risks arising from climate change, ac-
tively promotes energy-saving and low-carbon production
methods, improves energy and resource utilization efficiency,
and establishes a green management system covering the
entire operational process to fulfill environmental responsibil-
ities through concrete actions.
Responded UN Sustainable Development Goals (SDGs):
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Response to Climate Change
Likelihood Impact
In active response to the national "carbon peaking and carbon neutrality" goals, and following domestic and international Risk Type Description of Risk of Financial Impact Countermeasures
Occurrence Cycle
climate policies and the industry's low-carbon plans, DUPT explores ways to integrate carbon neutrality targets into the
Closely monitor domestic
long-term development path, gradually implements emission reduction measures, promotes green operations and
and international cli-
low-carbon technological innovation, improves resource utilization efficiency, and reduces the carbon footprint across the mate-related laws and
Tighter domestic and
entire value chain. Through concrete actions, the Company addresses climate change and works together to build a green regulations, and simulta-
international policies, Increase in operating costs: neously implement corre-
and sustainable future. Policy and such as carbon taxes i n c re a s e d c o m p l i a n c e sponding environmental
and emissions stan- High Long term costs, upgraded invest-
Regulatory management systems
dards, increase compli-
Governance to Address Climate Change Risks ment in equipment, etc. Intensify R&D efforts in
ance and carbon cost
low-carbon technologies
pressures.
Conduct carbon footprint
accounting and set emis-
Under the leadership of the Board of Directors and the ESG Working Group, DUPT sion-reduction targets
steadily advances climate governance initiatives. The Company fully recognizes
the potential risks and opportunities climate change presents to corporate The acceleration of the
global energy transition
operations, incorporates climate-related topics into existing management system and fluctuations in in- Expand new energy equip-
planning, and continuously improves the identification, assessment, and Market vestment in traditional Medium Decline in revenue: Shrink-
Medium ment business lines
Demand Risk oil and gas exploration to long ing revenue from tradi-
management of climate-related risks to enhance climate adaptation capacity and to high Upgrade the energy effi-
and production affect term tional businesses.
ciency of existing products
overall governance capability. demand for drilling and
production equipment.
To promote standardized carbon management, DUPT strictly follows international
and industry standards and gradually establishes and improves internal carbon Suppliers of upstream
management systems, focusing on enhancing greenhouse gas accounting and raw materials (such as
Conduct supplier climate
specialty steel and al-
disclosure levels. During the Reporting Period, the Company successfully passed Increase in operating costs: risk assessment and diver-
Supply Chain loys) face supply insta- rising raw material costs, sified procurement
the organizational carbon management system certification following an audit by bility or price volatility Medium Short and
Risks supply delays affecting Promote collaborative emis-
a qualified third-party institution. due to environmental medium
Transition production plans. sion reduction with suppli-
production restrictions term
Organizational Carbon Management Risks ers
System Certification Certificate and energy price fluc-
tuations.
Strategies to Address Climate Change Establish green factory
Decrease in operating management systems and
Customers' Customer preferences green supply chain man-
Likelihood Impact shift toward low-car- revenue: los s of green
Low Carbon Medium agement systems
Risk Type Description of Risk of Financial Impact Countermeasures bon enterprises and re- High to long
procurement orders.
Occurrence Cycle Require- Increase in operating costs: Apply for green certifica-
quire "low-carbon" cer- term tions, such as green factory
ments tification. increased certification
Extreme weather affects costs. and green enterprise certi-
the safety and progress Increase in operating costs: Assess and enhance the fications
of production base op- Short and climate resilience of key facil-
equipment damage, pro-
Acute Risk erations, logistics, or Medium medium duction suspension, increase ities
project construction. term in maintenance costs and Construct rooftop photovol- Regularly disclose ESG
insurance expenses, and taic systems to reduce pur- progress and emission-re-
Physical
increase in energy con- chased electricity duction achievements
Risk Changes to long-term cli- Establish extreme weather Decrease in operating
sumption costs due to rising Low ESG ratings under Improve ESG governance
mate patterns affect op- warning mechanisms and Reputation revenue: increased financ-
temperatures. -mine investor confid- Medium Long term ing costs and loss of mar- structure
erational efficiency in Decrease in operating reve- formulate production and lo- Risks Strengthen publicity on
ence. ket share.
Chronic Risks high-temperature regions Medium Long term nue: delayed order delivery gistics emergency response low-carbon transformation
and increase the need for results in reduced revenue. plans to enhance the Company's
equipment cooling and green brand image
maintenance.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Opportunity Type Description of Opportunity Likelihood of
Occurrence
Impact
Duration
Financial Impact Metrics and Targets to Address Climate Change
Promote the substitution of clean en- In strict accordance with national and industry laws, regulations, and policy requirements in the field of low-carbon
Opportunities in ergy in production, utilize resources Decrease in operating costs: environmental protection, DUPT continuously improves greenhouse gas (GHG) emission control from source to end-of-pipe,
Energy Structure
such as factory rooftops to build dis-
High Long term
reduced purchased electricity actively advances the construction of solar photovoltaic projects and implements multiple measures such as emission
tributed solar projects, and optimize expenses and access to green reduction through production process optimization to effectively reduce the carbon footprint. During the Reporting Period,
Optimization the energy consumption structure in electricity subsidies.
the Company's GHG emissions were mainly derived from direct emissions from the consumption of natural gas in daily
production.
office and production operations, and indirect emissions from the use of purchased electricity.
Develop green equipment and solu-
tions—such as complete geothermal Key Performance 2023 2024 2025 Unit
Opportunities in Increase in operating revenue:
drilling and production systems and
Green Collaboration strong demand for new energy
resource-efficient processing of drill- Medium Long term Direct GHG Emissions (Scope 1) 1,685.33 1,553.29 1,526.20 tCO2e
Across the Supply ing cuttings—to drive collaborative equipment, and enhanced
Chain carbon reduction across the industry value-added of orders.
chain. Indirect GHG Emissions (Scope 2) 8,582.99 9,625.13 9,379.71 tCO2e
Leverage green factory certifications Decrease in operating costs: Total GHG Emissions 10,268.32 11,178.42 10,905.91 tCO2e
and new energy equipment business access to subsidized loans and
Opportunities in
qualifications to apply for low-cost High Medium term reduced financial expenses,
Green Financing support for R&D and capacity
funding such as green loans and sus-
GHG Emissions Intensity 0.1811 0.1675 0.1512 tCO2e/RMB 10,000 revenue
tainability-linked bonds. expansion.
GHG Emission Density 13.51 13.48 12.65 tCO2e/Person
Climate-related Risk Management
Practice for GHG Emission Reduction
To effectively manage the long-term impacts of climate change, DUPT has incorporated climate-related risks into the
Company's overall risk management framework and established a scientific management process. Following an "identifi- DUPT continuously deepens green manufacturing practices and promotes greenhouse gas emission reduction through
cation–assessment–response" climate risk management process, the Company continuously identifies physical risks and multiple measures. By optimizing the energy structure and implementing clean energy substitution and energy efficiency
transition risks, evaluates their likelihood of occurrence and financial impacts, formulates and implements targeted improvement projects, the Company consolidates the foundation for emission reduction. Meanwhile, leveraging techno-
mitigation measures, and promotes the normalization and refinement of climate risk management. logical innovation, the Company develops low-carbon products and solutions to advance carbon reduction across the full
value chain from the production to the use of products. In addition, in strict compliance with international standards in
carbon accounting and management, we continuously reduce our own carbon footprint and that of our value chain, and
Climate Risk Management Process of DUPT
fulfill our primary responsibilities in climate action.
Continuously monitor domestic and international macro policies, industry policies, and national
Risk Case Construction of a Photovoltaic Power Generation Project
regulatory requirements to identify potential risks arising from climate-related physical
Identification
changes and the low-carbon transition.
During the Reporting Period, the distributed photovoltaic project
on the roof of Workshop No. 6 was completed and put into
Risk Conduct risk assessments and prioritize identified risks based on their likelihood of occurrence operation. The project utilized approximately 12,000 square meters
Assessment and the extent of their impact on the Company's finances, operations, and strategy. of rooftop space and installed 2,649 photovoltaic modules with a
total installed capacity of 1,721.85 kWp. Operating under the
model of "the self-generation and self-consumption of green elec-
tricity and the feeding of surplus green electricity into the grid", the
Risk project generated approximately 1.9373 million kWh annually. In
Develop and implement targeted response measures for the primary climate risks identified.
Response addition to meeting the power demand for production purposes,
it reduces carbon emissions by approximately 1,931 tons per year,
effectively optimizing the energy structure.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Case CC-Grade Casing Wellhead Products Empowering National CCUS Projects
Sound Environmental Management System
The CC-grade high corrosion-resistant casing wellheads in-
DUPT continuously improves the environmental protection management system,
dependently developed by the Company have achieved key
and has established an environmental management responsibility structure with
application in the Tuha Oilfield CCUS Project. Using strong
clearly defined roles and responsibilities. As the top executive, the General Man-
corrosion-resistant materials and a high-pressure metal
ager is responsible for coordinating the Company's overall environmental policy
注 册 号 ：04424E10687R4M
sealing structure, it achieved zero leakage during the cumu- 环境管理体系认证证书
and strategy, and bears ultimate responsibility for the effective operation of the 兹 证 明
lative injection of 500,000 tons of carbon dioxide, helping in- 德州联合石油科技股份有限公司
environmental management system. The HSE Management Department has
统一社会信用代码：913714007636991982
crease crude oil recovery in the block by 15%. The annual
注册地址：山东省德州市天衢新区宋官屯街道晶华南大道 1518 号
审核地址：山东省德州市天衢新区宋官屯街道晶华南大道 1518 号
been established as the central administrative and professional oversight body 环境管理体系符合
carbon sequestration capacity of the Project is equivalent to
GB/T 24001-2016/ISO 14001:2015 标 准
for environmental management, leading the coordination of system develop-
该体系覆盖范围
the annual carbon sequestration capacity of 100,000 mu of 石油钻采设备、工具及配件（泥浆泵、注入泵、拆装架、
ment, planning, implementation, and performance evaluation. Each business
螺杆钻具、水力振荡器）、石油专用仪器配件、井口装置和采油树
（套管头和油管头，悬挂器，平板阀，节流阀，安全阀）、
forest, delivering significant emission reduction benefits and 井控节流阀、压井管线、泥浆泵组件的设计、制造及其销售服务，
department, in accordance with assigned environmental responsibilities, is re-
钻杆接头、钻柱转换接头、接箍、旋转台肩螺纹的制造
及其销售服务，定向井技术服务的相关环境管理
providing a replicable technical equipment solution for the
（未纳入认证范围的多场所不得使用认证证书和认证标志）
sponsible for the implementation and execution of specific environmental man-
颁证日期：2024 年 07 月 08 日 有效期至：2027 年 07 月 07 日 换证日期：2025 年 07 月 04 日
low-carbon transformation of the oil and gas industry. 北北京中经科环质量认证有限公司 总经理：
agement measures within its department and operational processes. 1. 本证书有效性查询可扫描左侧二维码
站 www.cnca.gov.cn 查询
此证书方继续有效
公众号 证书查询
As of the end of the Reporting Period, DUPT has passed ISO 14001:2015 envi-
ronmental management system certification, and the adhesive injection process
Case Driving Production Optimization and Emission Reduction Practices Through Carbon Footprint Accounting has received an "A" rating in the environmental impact assessment.
ISO 14001?2015 Environmental Management
The Company carried out "cradle-to-gate" carbon footprint verification for down- System Certification Certificate
hole motor products in accordance with relevant standards such as PAS 2050, the Key Performance
GHG Protocol, and ISO 14064-3:2019. Calculations show that the carbon footprint
of producing 1 ton of downhole motors is 4,434.64 kgCO2e. This provides quanti- Investment in Environmental Protection: RMB 520.2Thousand
tative evidence for the Company to identify emission reduction priorities and op-
timize production processes, thereby supporting the reduction of product carbon
Violations of Laws and Regulations Concerning Environmental Protection: 0
footprint.
Identification of Environmental Risks and
Opportunities
Categories of
Main Likelihood Impact
Risk Type Description of Risk of Financial Impact Countermeasures
Environmental Cycle
Risks Occurrence
Emissions of waste gas,
Environmental Compliance Management
wastewater, and solid Conduct regular monitoring
Pollutant waste generated during of pollutant emissions
Discharge the production process Increase in operating Upgrade environmental pro-
may exceed national and costs: this risk may tection facilities and conduct
Risks
local standards, resulting cause environmental regular inspections
in environmental pollu- p ro t e c t i o n fi n e s , Establish comprehensive re-
Regarding green ecology and sustainable development as core components of corporate strategy, DUPT effectively fulfills
tion incidents. losses from produc- cords for hazardous waste
primary responsibility for environmental protection in strict accordance with environmental protection-related laws and Environmental Short and
tion suspension for management and regularly
regulations such as the Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of Compliance If violations such as un-
Low medium audit the qualifications of
rectification, addi-
China on Prevention and Control of Soil Contamination, and the Law of the People's Republic of China on Clean Production clear labeling, incom- term contracted disposal provid-
Risks tional investment in
Promotion. Upholding the environmental policy of "people orientation and cleaner production", the Company continuously Hazardous plete ledgers, or entrust- environmental pro- ers
improves the HSE system, formulates internal regulatory documents such as the HSE Manual and the HSE Procedure Waste ing disposal to unquali- tection equipment, Improve internal environ-
fied units occur during and environmental mental management sys-
Documents, and establishes a scientific and systematic environmental management mechanism. Management
the storage, transfer, and remediation costs. tems and strengthen envi-
Risks disposal of hazardous ronmental compliance train-
During the Reporting Period, neither the Company nor any of its subsidiaries had violated any applicable environment-re-
waste, the Company will ing
lated laws and regulations; pollutant emissions were not subject to major administrative penalties, and no adverse effects face severe penalties.
were caused to employees or local community residents.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Categories of
Main Likelihood Impact Emissions to air
Risk Type Description of Risk of Financial Impact Countermeasures
Environmental Cycle
Risks Occurrence
For new construction, re- Strictly implement the "three
construction and expan- simultaneities" system for Emissions to water bodies
Environmental Increase in oper-
sion projects of drilling and environmental protection fa-
Impact ating costs: the
production equipment cilities in construction proj-
Assessment risk may cause
Environmental manufacturing plants and ects
potential expo-
Compliance Risks for New production lines, failure to Short Strengthen cooperation with Emissions to land
Low sure to substan-
Construction, complete environmental term professional environmental
Risks tial fines, rectifi-
impact assessment proce- institutions to ensure that all
Reconstruction cation costs,
dures and obtain approv- new projects commence
and Expansion and losses due Consumption of Raw Materials Environmental pollution
als in a timely manner may construction only after the Past, Present, Future
to operational
Projects result in project suspen- completion of all legal pro- and Natural Resources
interruptions.
sion, fines, or even demo- cedures
lition.
Energy Usage
Failure to meet increasing- Decrease in oper-
Normal state, Abnormal state, Ecological damage and
ly stringent environmental ating revenue:
The brand image Strengthen communications Emergency state rational resource utilization
performance requirements
and customer with stakeholders
Energy Release (e.g., heat, radiation,
from major oil and gas
Reputation and company customers in the Short o rd e r s m ay b e Participate in the formulation vibration, etc.)
Transition Risks Low affected, result- of industry green standards
Market Risks supply chain may result in term
order losses, tightened fi- ing in increased and promote the develop-
financing costs Waste and By-products
nancing conditions, and ment of green supply chains
fluctuations in market val- or fluctuations in
ue. market value.
Physical Properties (such as Size,
Shape, Color, Appearance, etc.)
Likelihood Impact
Opportunity Type Description of Financial Impact
Cycle
Occurrence Environmental Factor Identification Flowchart of DUPT
By promoting supply chain emission
reductions and product carbon foot- Increase in operating revenue:
Opportunities in print certification to meet procure-
Green Supply Chains ment requirements of oil and gas cus-
Medium Medium term
The Company may enhance the
ability to obtain customer orders, Environmental Monitoring and Management
and Low-Carbon tomers for low-carbon equipment, improve brand premium, and
Certification the Company can enhance market obtain priority in green procure-
access opportunities and brand pre- ment. In strict accordance with national pollutant discharge permit management requirements, DUPT has formulated
mium.
environmental self-monitoring plans, clarifies monitoring points and frequency, and regularly entrusts qualified third-party
testing institutions with CMA certification to conduct monitoring, ensuring that monitoring data are authentic, accurate,
and valid. The Company promptly enters monitoring data and reports into the Shandong Provincial Pollutant Discharge
Enhancement of Environmental Compliance Permit System as required, voluntarily accepts supervision from the public and regulatory authorities, and continuously
improves the environmental compliance level.
Management
Environmental Impact Assessment
Identification of Environmental Factors
DUPT has established and implemented the Procedure for the Identification, Evaluation, and Control of Environmental DUPT strictly complies with national laws and regulations on environmental protection for construction projects, and fully
Factors to create a standardized mechanism for the identification, scientific evaluation, and management of environmental implements the environmental impact assessment and the "three simultaneities" management system for environmental
factors. The Company organizes environmental factor identification and evaluation annually, and screens and determines protection. Environmental impact assessments are conducted in accordance with applicable laws and regulations at the
a list of significant environmental factors based on clear and quantitative evaluation criteria. For identified significant initiation stage for new construction, reconstruction, and expansion projects, and environmental protection facilities are
environmental factors, the Company implements effective control through multi-level measures, such as formulating planned, constructed, and put into operation simultaneously with the main project during the design, construction, and
environmental objectives and management programs, implementing operational control procedures, and improving commissioning stages. Upon project completion, the Company organizes professional institutions to conduct environmental
emergency preparedness and response systems, ensuring the foresight, adaptability, and effectiveness of the Company's protection acceptance and monitoring to ensure that all pollutant emissions continuously comply with national standards,
environmental management system. thereby promoting the harmonious integration of corporate development and environmental protection.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Identification of Potential Environmental Hazard Key Performance
To enhance the effectiveness of the environmental management system,
Key Performance Environmental Emergency Drills: 2 Number of Participants in Environmental Emergency Drills: 89
DUPT continuously organizes on-site environmental inspections and Comprehensive HSE Hazard Inspections: 125
specialized risk assessments covering the entire production process. For Potential Environmental Hazards Identified:
environmental hazards identified during inspections, the Company
establishes ledgers one by one, clarifies responsible departments, and 1,403
implements rectification within specified time limits, thereby continuously Rectification Pass Rate of Potential Project Case Emergency Response Drill for Phosphating Solution Leakage
improving proactive prevention capabilities and effectively reducing
environmental compliance risks. Hazards: 100 % In September 2025, the Company carried out a practical
emergency response drill for phosphating solution leakage
outside Workshop No. 1. The drill covered early warning and
Case Identification and Rectification of Potential Hazards alarm, personnel evacuation, emergency response, and
material deployment. The overall drill process was efficiently
coordinated, with clear personnel responsibilities and
In November 2025, during an on-site inspection of the resin
proficient operations. Emergency response procedures were
application workshop, department managers discovered
implemented smoothly, achieving the expected objectives
that dripping during adhesive application was a significant
and effectively verifying the operability of the emergency
issue, posing a pollution risk. The workshop immediately
response plan.
implemented rectification measures: plastic sheets replaced
daily were laid at locations prone to adhesive dripping, and
adhesive collection cartons were installed beneath stator
coating positions to effectively collect drips, control pollut-
ant diffusion at the source, and improve on-site environ- Training on Environmental Compliance
mental management levels.
DUPT deeply integrates environmental protection principles into daily Key Performance
Before Rectification After Rectification operations and management. By regularly organizing training on
environmental regulations, pollution control, and on-site operational Training on Environmental Protection: 4 Sessions
Environmental Emergency Response standards, the Company continuously strengthens all employees' Participants in Training on Environmental
environmental awareness and sense of responsibility. Based on
compliance cases from production scenarios, the Company promotes Protection: 102 Person-times
DUPT has established an environmental emergency management system in strict accordance with laws and regulations environmental knowledge dissemination and guides employees to Duration of Training on Environmental
such as the Emergency Response Law of the People's Republic of China. The Company has formulated and continuously translate environmental management requirements into conscious daily
improved the Emergency Response Plan for Environmental Incidents, clarifying the emergency organizational structure, practices. Protection:
response procedures, and graded response mechanisms to ensure efficient and orderly emergency response and
post-incident recovery in the event of emergencies. To enhance practical emergency response capabilities, the Company
regularly organizes special drills and emergency training, strengthens risk prevention awareness and emergency response
skills among all employees, and continuously optimizes emergency resource allocation and coordination mechanisms.
Case Hazardous Waste Knowledge and On-site Management Series –"Explaining the Law Through Cases"
General Commander
In March 2025, the Company organized hazardous waste
management training under the theme of "explaining the law
through cases". Through the analysis of typical cases, the
Deputy Chief Commander training effectively enhanced managers' awareness of risk
prevention and control related to hazardous waste leakage and
their compliance handling capabilities by explaining the
requirements for the classification, hazards, and on-site
Communication Security and Emergency
management of hazardous wastes.
Medical Aid Team Logistics Support Site Rescue Team
and Liaison Evacuation Team Team Monitoring Team
Team
Organizational Structure for Emergency Response of DUPT
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Promotion of the Control of Wastewater, Case Recycling of Wastewater from Boiler Room
Waste Gas and Solid Waste Emissions The Company implemented a water resource recycling renovation for wastewater discharged from the boiler room
purification system. By connecting pipes at the drainage outlet to divert wastewater into the washing pool of Plant No.
Control of Wastewater Emission supplemented by irrigation" was established. After the renovation, the annual water costs are reduced by approximately
RMB 583.44, effectively improving wastewater utilization efficiency and reducing tap water consumption.
DUPT standardizes wastewater discharge management in strict alignment with national and local environmental NaOH
protection laws, regulations, and discharge standards such as the Law of the People's Republic of China on the Prevention
H2S04 PAM
and Control of Water Pollution and the Emission Standard of Pollutants for Electroplating (GB 21900-2008). Wastewater
generated during the Company's production and operation mainly includes chromium-containing process wastewater
Water Reaction Adjustment Inclined Tube
and general domestic sewage. To effectively control wastewater discharge, the Company has constructed a
collecting tank Tank Tank Sedimentation Tower
chromium-containing wastewater treatment system and an integrated wastewater treatment system, and regularly
entrusts qualified third-party testing institutions to conduct monitoring to ensure that all types of wastewater meet Sludge Filtration and
discharge standards after treatment. Intermediate Water Tank
Thickening
During the Reporting Period, wastewater generated from the Company's production and operations was treated and
discharged into the municipal sewage pipeline after meeting discharge standards, with a compliant wastewater discharge Integrated Sewage Treatment Plant
Mechanical Filter Sludge Treatment by
rate of 100%. Qualified Entities
Wastewater Discharge 2023 2024 2025 Unit Desalination Tank Ultrafiltration Device Resin Protector Activated Carbon Filter
Wastewater Discharges 56,834.00 46,243.00 56,639.00 Ton Wastewater Treatment Process Flowchart
Ton/RMB 1,000,000
Wastewater Discharge Intensity 100.23 69.31 78.54
revenue Control of Waste Gas Emission
DUPT has established a sound waste gas management system in strict compliance with applicable laws, regulations, and
discharge standards such as the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution,
Types of Wastewater Pollutant 2023 2024 2025 Unit
the Integrated Emission Standard of Air Pollutants (GB 16297-1996), and the Regional and Integrated Emission Standard
Chemical Oxygen Demand (COD) 11.90 5.90 10.00 Ton of Air Pollutants (DB 37/2376-2019).
To address major emission sources generated during production—such as chromic acid mist, acid mist, particulate matter,
Five-day Biochemical Oxygen and waste gases from natural gas boilers—DUPT has installed a range of treatment facilities, including grid-type chromic
Demand (BOD?) acid waste gas purification and recovery units, chromic acid mist purification towers, water curtain spray treatment systems,
baghouse dust collectors for polishing dust, sulfuric acid mist neutralization and purification towers, and waste gas
Suspended Solids 2.55 1.68 3.12 Ton treatment equipment for steam generators. Through standardized operation and regular maintenance, the Company
ensures that all types of waste gases are effectively treated and discharged in compliance with standards.
Ammonia Nitrogen (NH?-N) 0.01 0.39 0.40 Ton
DUPT formulates self-monitoring plans in accordance with pollutant discharge permit requirements and regularly entrusts
qualified third-party institutions to conduct monitoring. During the Reporting Period, the waste gas pollutants generated
Total Phosphorus (Calculated at P) / 5.35 5.50 Ton by the Company in production and operation processes were all discharged in compliance with applicable standards,
realizing a 100% compliance rate of waste gas emissions.
pH 7.40 7.40 7.50 /
Waste Gas Emissions 2023 2024 2025 Unit
Waste Gas Emission 3.38 3.47 3.67 Ton
Waste Gas Emission Intensity 0.0060 0.0052 0.0051 Ton/RMB 1,000,000 revenue
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Types of Exhaust Pollutants 2023 2024 2025 Unit Control of Waste Emission
Nitrogen Oxide (NOx ) 0.62 0.71 0.72 Ton
Disposal of General Waste
Volatile Organic Compounds (VOC) 1.88 1.90 2.05 Ton
Thoroughly implementing applicable laws and regulations, including the Law of the People's Republic of China on Prevention
and Control of Environmental Pollution by Solid Wastes, DUPT has established the General Solid Waste Management System
Particulate Matter (PM) 0.72 0.70 0.74 Ton to standardize the classification, collection, storage, transfer, and disposal of general solid waste. During the Reporting
Period, all general industrial solid waste generated by the Company was entrusted to qualified third-party entities for
compliant transportation and disposal, achieving a 100% compliance rate for general solid waste disposal. This effectively
Sulfuric Acid Mist (H2SO4 ) 0.16 0.16 0.16 Ton
prevents environmental pollution risks associated with solid waste and upholds our commitment to resource recycling and
environmental responsibility.
Measures for Disposal of General Industrial Solid Waste
exhaust air Waste Gas Collection System Fans Purification Tower Exhaust Pipe Identify solid waste not listed in the National Catalogue of Hazardous Wastes, or solid
waste determined to lack hazardous characteristics in accordance with the identification
Identification and criteria of GB 5085 and the identification methods of GB 5086 and GB/T 15555
Determination
Water pump Liquid Tank Sewage Transfer solid waste to designated temporary storage points after generation according
treatment
to categories and attributes
Take prevent rainwater infiltration, leakage, scattering, and loss in storage sites, and
Waste Gas Treatment Process Flowchart
place environmental protection signs
Collection and Storage Prohibit the mixing of general solid waste with hazardous waste, or arbitrary dumping,
DUPT continuously increases investment in environmental protection resources, deepens the application of emission piling, or landfilling
reduction technologies in production processes, and innovates treatment models, successfully earning the designation of
an "A-Level Enterprise for Atmospheric Environmental Performance" in the rubber products manufacturing industry. To Designate departments to conduct regular inspections and ensure accurate classifica-
further consolidate A-rated performance achievements and fulfill responsibilities for atmospheric pollution prevention and tion and orderly stacking of all types of waste
control, the Company has specially formulated and implemented the Administrative Provisions for Class A Enterprises in Establish management ledgers to record sources, types, quantities, and destinations of
Atmospheric Environmental Protection Performance, to clarify operational standards and management responsibilities, solid waste to ensure full-process traceability
promote systematic and normalized atmospheric environmental protection governance, and support the Company's green, Dispose of recyclable waste in accordance with the Waste Materials Disposal Procedure
Disposal and Recycling
low-carbon, and high-quality development. of the Company
Transport and dispose of non-recyclable waste through qualified third-party entities
Waste Gas Treatment Measures
Waste Emission 2023 2024 2025 Unit
Fully replace traditional boilers with low-nitrogen oxide
steam generators to significantly reduce the initial
generation of nitrogen oxides Volume of General Waste Generated 2,000.00 2,100.00 2,150.00 Ton
Introduce an internationally advanced "Rotary Concen-
trator + Regenerative Thermal Oxidizer (RTO) integrated
unit" waste gas treatment system to achieve efficient
Disposal Volume of General Waste 2,000.00 2,100.00 2,150.00 Ton
adsorption and complete oxidation of volatile organic
compounds (VOCs), with emission concentrations far
lower than national standards
Implement fully enclosed retrofits for internal mixers and Total Volume of Recycled General Waste 1,800.00 1,850.00 1,900.00 Ton
automated upgrades to the coating process to further
improve VOCs collection efficiency and reduce fugitive "Rotary Concentrator + Regenerative Thermal
emissions Oxidizer" Integrated Unit Percentage of Recycled General Waste 90.00 88.10 88.37 %
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Disposal of Hazardous Waste Waste Emission 2023 2024 2025 Unit
In accordance with regulatory requirements such as the Standard for Pollution Control on Hazardous Waste Storage (GB
Quantity of Hazardous Wastes Generated 92.85 105.56 122.56 Ton
Accountability System for Hazardous Waste and the Hazardous Waste Management System to standardize the identification,
classification, collection, storage, transfer, and disposal management of hazardous waste. Under the coordination of the
Volume of Hazardous Waste Disposed 100.77 107.96 119.20 Ton
HSE Management Department, a Hazardous Waste Pollution Prevention Leading Group has been established to take overall
responsibility for hazardous waste management. By clarifying job responsibilities, strengthening process control, and
establishing traceable ledgers, the Company ensures lawful and compliant operations and prevents pollution risks. Note: The difference between the disposal volume and generation volume of hazardous waste in 2025 is due to cross-year transfer of some waste. All
hazardous waste has been disposed of in compliance with relevant regulatory requirements
During the Reporting Period, all hazardous waste generated by DUPT was entrusted to qualified third-party entities for
compliant transportation and disposal, achieving a 100% compliance rate for hazardous waste disposal.
Advancement of Green Development Practices
Team Leader: General Manager
Promotion of Green Office
Deputy Team Leader: Deputy General Manager in charge of Environmental Protection
Adhering to the philosophy of green develop-
ment, DUPT continuously deepens green Measures for Green Office
Head of HSE Head of the Supply Head of the Production HSE Specialist, office practices and actively implements re-
Management Management Administration Managers of Each etc. source conservation measures such as energy,
Department Department Department Department water, and paper conservation, effectively re-
ducing energy and material consumption in
Hazardous Waste Management Leading Group
daily operations. In addition, the Company
standardizes the setup of recycling points for
hazardous waste such as used batteries.
Hazardous Waste Disposal Measures
Through publicity and practice, the Company
strengthens employees' environmental re-
sponsibility awareness, and fosters a green
Accurately identify and determine hazardous waste in accordance with the National Catalogue
corporate culture that prioritizes resource
of Hazardous Wastes and the identification criteria stated in GB 5085 series standards
Identification and conservation and environmental friendliness.
Determination
Used Battery Recycling Bin Slogan for Electricity and Paper Conservation
Store in designated locations and affix hazardous waste labels containing information such
as name, code number, and hazard characteristics
Provide storage facilities with rainproof, seepage-proof, and loss-prevention functions, equip
firefighting facilities, and place prominent signs
Implementation of Green Transportation
Prohibit the mixing with general solid waste, and store incompatible hazardous waste
Collection and Storage separately DUPT is committed to building a green transportation system. Through measures such as implementing strict access
Designate special personnel for management, and assign trained and qualified operators to standards for transport vehicles, promoting clean energy vehicles, and optimizing transportation models, the Company
take posts with personal protective equipment reduces carbon emissions and environmental impacts in the logistics process. Furthermore, the Company promotes
innovative transportation models such as intensive loading, regional centralized distribution, and information-based
Establish fully traceable ledgers to record information such as sources, quantities, and integration of route resources to improve vehicle utilization efficiency, reduce empty runs and ineffective transportation,
destinations and promote low-carbon and clean transportation processes at the structural level.
Entrust disposal to qualified entities and sign contracts, and implement the transfer manifest
system in accordance with applicable laws and regulations Green Transportation Initiatives
Formulate the Hazardous Waste Emergency Response Plan, and conduct regular drills,
Transfer and Disposal evaluations, and revisions
Access Control: implement access control management for freight vehicles and prohibit vehicles that fail
Promote source reduction and develop management plans to reduce the volume and harm
to meet emission standards from entering the plant premises
of waste generated
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Green Transportation Initiatives Building of a Green Enterprise
Cleaner Vehicles: prioritize the admission of new energy and clean energy vehicles and reduce the
DUPT closely aligns with the "carbon peaking and carbon neutrality"
proportion of high-emission vehicles in use
strategic goals and integrates a full-chain green industrial layout
across green design, manufacturing, and supply chain processes.
Transport Intensification: implement weekly shipment planning and consolidate cargo on the same During the Reporting Period, the Company achieved significant results
routes to reduce the use of dedicated vehicles and improve load factors in energy conservation, consumption reduction, and low-carbon
operations, successfully obtained both the Green Factory and the
Regional Diversion Optimization: rely on regional service stations and adopt a "centralized dispatch + Green Supply Chain Management System Certifications, and was rated
terminal distribution" model to replace scattered direct transportation as an AAAAA-level Green Enterprise, with green development
capabilities receiving authoritative recognition. Moving forward, the
Company will continue to deepen the integration and implementation
IT Integration: integrate carrier route resources through an IT platform to facilitate cargo source sharing of management systems, drive coordinated carbon reduction across
and improve transportation efficiency the entire value chain, and provide a practical model for the green
Green Factory of Shandong Province
transformation of the industry.
Promotion of Clean Production
DUPT has vigorously advanced clean production. Through Environmental Benefits of Clean Production
measures such as process optimization, clean energy sub-
Reduction in Volatile Organic Compound (VOC) Emissions:
stitution, and comprehensive resource utilization, the Com-
pany has reduced pollutant emissions at the source, im- 1.4122 tons/year
proved resource utilization efficiency, and continuously
Reduction in General Solid Waste (Steel Scrap) Generation:
lowered the environmental loads during production pro-
cesses. As of the end of the Reporting Period, the Company 3 tons/year
has completed a clean production audit acceptance,
Reduction in Hazardous Waste (Waste Cleaning Liquid) Green Factory Management System Green Supply Chain Management Green Design Product Management
achieving phased reductions in major pollutant emissions
and improvements in both environmental and operational Generation: 0.08 tons/year Certification System Certification System Certification
benefits.
Achievement of Environmental Performance
Targets
Case Full-Process Emission Reduction Practices in the Adhesive Injection Workshop
DUPT regularly conducts quantitative assessments of environmental impacts arising from business operations and sets
quantifiable environmental targets and indicators based on assessment results. Simultaneously, the Company has
DUPT implemented a full-process green trans- formulated the Performance Measurement and Monitoring Control Procedure to monitor and measure the achievement of
formation in the adhesive injection workshop, environmental targets and indicators, thereby driving the continuous optimization and improvement of environmental
establishing a cleaner production model cover- performance.
ing source substitution, process control, and
end-of-pipe treatment. Equipped with online Environmental Metrics and Targets in 2025 Achievement
monitoring devices and an intelligent access
control system, the workshop implements smart Zero Recordable Environmental Incidents Achieved
closed-loop monitoring of pollutant emissions
and logistics transportation, enhancing the vi- Zero Environmental Administrative Penalties Achieved
sualization of environmental data and promoting
the dual objectives of environmental protection Compliant Disposal of Hazardous Wastes Achieved
and refined management across production
processes.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Recycling of Resource Material Management Measures
Establish a graded raw material storage system, and clarify inbound and outbound
Storage of procedures, storage principles, and job responsibilities
Material Utilization Raw Materials Conduct six warehouse safety inspections each month in terms of storage conditions,
labeling, and safety protection, with a 100% rectification rate for identified hazards
Based on institutional development, DUPT systematically optimizes material and packaging management processes and
promotes efficient resource utilization. The Company has formulated systems such as the Specifications for Material Adopt a "self-pickup for bulk materials + annual bidding for qualified carriers" model for
Warehousing Management, the Specifications for On-site and Inbound/Outbound Management of Raw Material Yard off-site transportation to ensure the transportation safety of core raw materials and the
(Warehouse), and the Measures for the Handling of Recyclable Waste Materials, to standardize the entire material Transportation
stability of the supply chain
management process from receipt to recycling and implement the standardized and proceduralized handling of recyclable of Raw
Materials Promote green transportation for in-plant transfer: use low-energy rail-guided vehicles for
waste materials. steel distribution and electric forklifts for other materials to reduce carbon emissions and
In the material management process, DUPT implements warehouse optimization and the first-in, first-out principle, energy consumption
strengthens dynamic inventory monitoring and regular stocktaking, and establishes prevention and handling mechanisms
for slow-moving materials, to optimize inventory structure, improve material turnover efficiency, and reduce resource
occupation and waste. Requisition Establish a product BOM information database to achieve precise matching between raw
and Use of material requirements and production plans
In packaging management, DUPT has issued the Green Packaging, Warehousing and Transportation (Planned Raw Rely on the ERP system to digitally manage material requisition and strictly implement BOM
Implementation) Scheme and the Specifications for the On-site Management of Packaging Box Storage Areas, and Materials
benchmarks to ensure demand-based requisition and precise proportioning
established a dedicated implementation department for green packaging, and coordinated standardized control across
the entire process of packaging—including procurement, operations, transportation, recycling and reuse—thereby
continuously reducing the carbon footprint and environmental impacts of packaging processes and steadily improving the Packaging
level of green packaging management. Reduction Implement a "differentiated packaging by transport mode" strategy for export business and
and Recycling
promote packaging reduction and cost savings while ensuring transportation safety
of Waste
Packaging
Usage of Packaging Materials Materials
Indicator Name 2023 2024 2025 Unit
Total Use of Packaging Materials 5,931.00 5,936.40 4,785.00 Ton
Consumption Intensity of Case Project to Streamline Packaging for Export Products via Land Transport
Packaging Materials
To put the philosophy of green operations into practice, DUPT optimized the previously standardized packaging model
for export products. By analyzing the differences in protective requirements between land transport and sea transport,
the Company eliminated the plastic sheeting wrapping step in land transport packaging while retaining core protective
structures (fixing frames + protective barriers) and optimizing assembly processes. Following the optimization, the
labor time required to package a single product was reduced to 15 minutes, and plastic sheeting consumption for each
batch of land-transported products was reduced to zero, significantly lowering resource consumption and improving
packaging efficiency.
Case Recycling and Reuse of Used Wooden Cases and Pallets
DUPT has established a sustainable resource management model centered on "recycling, sorting, and repurposing",
and set up a dedicated area for collecting used wooden products. To meet internal shipping needs for components,
repairable used wooden boxes and pallets were preferred and reprocessed through damage repair, size adjustment,
and protection reinforcement to meet transportation protection requirements, thereby reducing new timber
procurement, effectively promoting resource recycling and reducing waste generation.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Case Green Packaging Practices Rated as "Excellent" Measures for Energy Conservation and Consumption Reduction
In accordance with national standards such as GB/T 37422-2019 Methods and Construct rooftop photovoltaic power generation projects to increase the self-sufficiency rate of clean energy
Criteria for Green Packaging Assessment, DUPT prioritized the procurement of
recyclable and biodegradable packaging materials and established a comprehen- Upgrade energy-saving technologies for key equipment such as steam generators and industrial furnaces to
sive packaging recycling mechanism. According to the third-party assessment achieve thermal energy recycling
results, the comprehensive score for green packaging reached 94 points, earning
the Company an "Excellent" rating as a green packaging implementation entity, Deploy the MES system to realize real-time monitoring and dynamic optimization of energy efficiency and material
with a significant reduction in environmental impact and operational costs in the consumption
packaging process.
Promote digital traceability across the entire product lifecycle in conjunction with ERP, PLM, and other systems to
support closed-loop resource utilization
Carry out multi-dimensional energy performance diagnostics, and formulate and implement the Prioritized List of
Energy Performance Improvement Opportunities
Prioritize the procurement and use of energy-efficient and environmentally friendly raw materials, products, and
Energy Utilization services
Energy Management System
Case Steam Generator Technology Upgrade Supporting Improvements in Energy Efficiency and Waste Emissions
In strict accordance with laws and regulations such as the Energy Law of the
People's Republic of China and the Renewable Energy Law of the People's Republic The Company adopted high-performance steam generators
of China, DUPT has formulated supporting documents such as the Energy capable of linear steam output adjustment ranging from 20%
Management Work System and the Energy Measuring Instrument Management to 100%,with the minimum continuous steam output as low
System to improve the energy management system framework. The HSE as 200 kg/h. Equipped with the FPTS flow-through chamber
Management Department serves as the primary energy control department, with technology, this equipment effectively suppresses the
the Deputy General Manager acting as the Energy Management Representative. generation of nitrogen oxides during combustion, with NOx
An Energy Management Leading Group has also been established to oversee emission concentrations below 30 mg/m3. Additionally, with
energy strategic planning and decision-making on major matters. The primary the condensate heat recovery technology, the latent heat of
production supervisors of each workshop and work team have been designated flue gas is fully absorbed, achieving a thermal efficiency of
as energy management responsible persons within a tiered management 100.27%, with waste gas temperature lower than 60°C,
mechanism, with duties such as monitoring energy consumption, implementing realizing efficient energy utilization and clean emissions.
measures, and evaluating outcomes. Through the combination of institutional
regulation and organizational support, the Company continuously improves the
standardization and execution effectiveness of energy management. As of the
end of the Reporting Period, the Company has passed the ISO 50001:2018
Energy Management System certification. ISO 50001?2018 Energy Management
System Certification Certificate
Practices of Energy Conservation and Consumption Reduction
Focusing on energy structure optimization and process energy efficiency improvement, DUPT promotes energy conservation
and consumption reduction practices across the entire production chain. By integrating clean energy applications,
energy-saving retrofits of key equipment, and digital management systems, the Company achieves precise control over
energy consumption and carbon emissions.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Energy Consumption Metrics and Targets Measures for Water Resource Management
DUPT places high importance on energy consumption management and efficiency improvement during operations. The DUPT actively responds to the national call to build a water-saving society. Through measures such as technical
Company has established an intelligent data monitoring system to continuously track energy consumption across all stages transformation, process optimization, and cultivation of employees' water-saving awareness, the Company continuously
and strictly controls energy consumption through technical upgrades and management optimization. improves water resource utilization efficiency and achieves scientific management of water usage structure.
Energy Consumption 2023 2024 2025 Unit Water Conservation Measures
Total Energy Consumption 2,934.48 3,090.19 3,018.71 tce Promote reclaimed water reuse systems to realize cascade utilization and recycling of water resources.
Energy Consumption Intensity 0.0518 0.0463 0.0419 tce/RMB 10,000 revenue Enhance daily maintenance and management of water-using equipment, and strictly check for any leakage,
emission, dripping, or wastage.
Renewable Energy Consumption - - 16.87 tce
Prioritize the procurement and use of water-saving and environmentally friendly raw materials, products,
and services.
Note: The total energy consumption is calculated based on the conversion factors specified in GB/T 2589-2020 General Rules for Comprehensive Energy
Consumption Calculation, a national standard of the People's Republic of China.
Post water-saving slogans to enhance employees' awareness of water conservation.
Energy Usage
Energy Types 2023 2024 2025 Unit
Natural Gas 48.00 40.00 34.00 10,000 m3
Water Resource Metrics and Targets
Gasoline 34.99 50.31 50.27 Ton
In the principle of "prioritizing water conservation and realizing water recycling", DUPT continuously improves water use
Diesel 176.08 174.83 208.02 Ton
management through measures such as process optimization and facility upgrades. In the future, we will steadily advance
water-saving technical transformation and efficiency improvement work in combination with advanced industry practices
Total Purchased Electricity 16,176,015 18,140,080 17,677,545 kWh and our own operational needs, thereby contributing to the achievement of sustainable water resource utilization targets.
Photovoltaic Power Generation - - 137,278 kWh
Indicator 2023 2024 2025 Unit
Note: The Company's photovoltaic project was officially put into operation on November 15, 2025. The statistical period for photovoltaic power generation
data in 2025 is from November 15, 2025 to December 31, 2025 Total Water Consumption 60,745 76,513 85,483 Ton
Tons/RMB 10,000
Water Resource Utilization Water Consumption Intensity 1.0713 1.1467 1.1854
revenue
Water Resource Management System Consumption of Fresh Water 60,745 66,913 70,983 Ton
In strict accordance with national laws and regulations such as the Water Law of the People's Republic of China and relevant Total Water Circulation and Reuse - 9,600 14,500 Ton
standards, DUPT standardizes water resource management, and focuses on strengthening the conservation, protection,
and rational utilization of water resources. Water used in the Company's production and operations mainly comes from
municipal water supply and internal recycled water, covering production manufacturing, cooling circulation, daily office
Water Recycling and Reuse Rate - 12.55 16.96 %
operations, and living services. During the Reporting Period, no direct or indirect significant water resource impact incidents
occurred in the Company during the water withdrawal, use, drainage, and storage processes, and the Company effectively
fulfilled responsibilities for water conservation and protection. Note: The company's water reuse system was officially put into use in May 2024, and the total water circulation and reuse is an estimated figure.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Ecological and Environmental Protection Integrated Solid Waste Crushing and Backfilling Supporting Ecological Protection and Biodiversity
Case Restoration in Mining Areas
DUPT attaches great importance to the impacts of operational activities on biodiversity, and actively responds to the call
The "Integrated Solid Waste Crushing and Backfilling Solution" of the Company realized resource utilization of mine solid
of the Kunming–Montreal Global Biodiversity Framework. In strict accordance with laws and regulations such as the Opinions
waste through a full-chain treatment system. It eliminated land occupation, dust generation, and leachate pollution
on Further Strengthening Biodiversity Conservation and the Law of the People's Republic of China on the Prevention and
caused by traditional stacking from the source, reduced damage to surrounding soil, water bodies, and vegetation, and
Control of Soil Contamination, the Company systematically advances biodiversity protection efforts. The Company also
lowered human disturbance to natural habitats, thus creating conditions for ecological reconstruction in mining areas
conducts biodiversity risk assessments and hazard investigations, strengthens full-process control from project
and effectively promoting local biodiversity protection and restoration.
environmental impact assessments to operational emissions, ensures that pollutants are discharged in compliance with
standards, and effectively prevents adverse impacts on surrounding ecosystems.
During the Reporting Period, the Company continued to improve the ecological monitoring and assessment system and Integrated Blending and Backfilling Solution Supporting Hydrological Stability and Ecological
Case Restoration in Mining Areas
the ecological monitoring network, and monitored environmental elements such as air, surface water, soil, and groundwater
in the surrounding areas of production and operation sites. In 2025, there were 40 ecological monitoring points, and 893
sets of monitoring data were obtained. Monitoring results showed that the Company's production and operations did not The "Integrated Blending and Backfilling Solution" of the Company provided reliable technical support for coal mine
affect local ecological functions. Moreover, the Company actively promoted eco-friendly operations through technological water control, goaf management, and surface subsidence mitigation through automated precision control and remote
innovation, reduced land occupation, soil disturbance, and environmental pollution, and supported ecological restoration pumping. It reduced mining-induced disturbances to groundwater and surface ecosystems at the source, minimized
and biodiversity protection at mines, thereby promoting coordinated development between industrial production and the the risks of subsidence and pollution, maintained regional soil stability and hydrological balance, and created stable
natural ecosystem. habitats for vegetation restoration and biodiversity conservation.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Reshaping Industrial Ecosystem through
Resilient Supply Chains and Delivering
Quality Excellence through Continuous
Innovations
Adhering to the values of " customer-centered and striver-ori-
ented", DUPT drives the technological advancement in drilling
and directional drilling through innovation, strictly controls
product quality and service standards, and leverages an effi-
cient and collaborative supply chain system to provide stable
and reliable equipment and engineering solutions for global
energy exploration and development, continuously creating
greater value for customers.
Responded UN Sustainable Development Goals (SDGs):
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
With strong innovation capabilities, DUPT has successively been recognized as the "National High-Tech Enterprise", the
Enhancement of Innovation Engine "National 'Little Giant' Specialized and Sophisticated Enterprise that Produces Novel and Unique Products", the
"Single-Champion Manufacturing Enterprise of Shandong Province", etc. In terms of innovation platforms, the Company
owns provincial R&D platforms such as the Recognized Enterprise Technology Center of Shandong Province, as well as
municipal innovation carriers such as the Dezhou Wellhead Equipment Engineering Research Center. Relying on the
R&D Innovation Management System Provincial Postdoctoral Innovation Practice Base, the Company gathers high-end talent to comprehensively support core
technology breakthroughs and the commercialization of innovation achievements.
DUPT is committed to establishing a systematic and standardized R&D innovation management system. The Company has
formulated and implemented documents such as the R&D Project Management System and strictly enforces the Project
Leader Accountability System to achieve closed-loop management throughout the entire project lifecycle—from proposal
and feasibility studies to project initiation, review, and acceptance. In terms of organizational structure, the Company has
established an innovation platform centered on the Technology Center, with multiple specialized R&D departments. Through
a flat management model of "Technical Director in Charge, Technical Managers for Assistance", the Technical Director is
granted authority over R&D decision-making and resource allocation. Concurrently, the Company has established a
normalized cross-departmental collaboration mechanism to integrate technical expertise, shorten management chains,
efficiently promote knowledge sharing and collective innovation, and stimulate the creativity of R&D teams. High-tech Enterprise National "Little Giant" Specialized and Sophisticated
Enterprise that Produces Novel and Unique Products
Technology Center
Technology Committee Expert Committee
Technological Innovation Demonstration "One Enterprise, One Technology" R&D Center
Research Drilling Tools Equipment Surface Precision Process Rubber Product Enterprise of Shandong Province of Shandong Province
Institute of Technology Technology Technology R&D Technology Laboratory Testing
Identification of Innovation Risks and
Science and Center Center Center Laboratory Laboratory Center
Technology
Opportunities
Likelihood Impact
Risk Type Description of Risk of Financial Impact Countermeasures
Cycle
Occurrence
Organizational Chart of the Technology Center
Deepen industry–university–re-
The R&D of oil and gas Decline in operating profit: search cooperation and jointly
equipment for extreme en- Failure to launch new prod- build laboratories to overcome key
vironments—such as ul- ucts on schedule may result technical challenges
tra-high temperatures, high in missed market opportuni-
Technology Establish phased technical review
pressures, and high corro- Medium ties and hinder the Compa-
Key Performance and industrialization evaluation
R&D Risk sion—is highly challenging Medium to long ny's revenue growth. mechanisms to adjust R&D direc-
and time-consuming. Failure term Increase in operating costs: tion and resource allocation in a
R&D Investment: RMB 28.0775 million Proportion in Operating Revenue: 3.89% to achieve breakthroughs in
key technologies or industri-
Prolonged high R&D invest-
ment without expected re-
timely manner
Conduct small-scale pilot tests to
alization may lead to project sults in R&D expenses ex- verify technical feasibility and in-
New R&D Projects Initiated: 28 failure. ceeding the budget. dustrialization pathways
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Risk Type Description of Risk
Likelihood Impact
of
Occurrence
Cycle
Financial Impact Countermeasures Management of Innovation Risks Opportunities
The industry is rapidly evolv- Focusing on four categories of risks—technology, market, resource, and intellectual property risks, DUPT has established
ing toward intelligence, elec- Establish a technology trend a full-process R&D risk management system covering "identification – evaluation – monitoring – response". This system is
trification, and low-carbon Decline in operating profit: monitoring team to regular-
ly analyze industry develop-
deeply integrated into the Company's overall management and quality systems and supported by the PLM system to achieve
transformation. Failure to Technological lag weakens
Technology timely deploy cutting-edge the ability to command pre- ments traceable management of R&D documents, records, and changes.
Medium Short term
Iteration Risks technologies such as electric mium prices, reduces market Increase R&D investment in
drive and digitalization may share, and impacts operating emerging technologies such
result in outdated products profit. as electric drive and digita-
and declining competitive- lization Management Processes Core Contents
ness.
Decline in operating profit: Establish competitive com- Risk Identify risks through brainstorming, expert interviews, historical data review, and
pensation and medium- to Identification patent intelligence analysis
Loss of core R&D personnel Disruptions in key technolo-
due to insufficient incentives gies lead to delays in R&D long-term incentive mech-
or limited development op- projects and product launch- anisms
Talent Medium es, affecting sales revenue Improve career develop-
portunities will directly affect Low
Turnover Risk R&D progress and the confi- term and market share. ment pathways and training Risk Use a risk matrix to evaluate risks from two dimensions: the likelihood of
dentiality of core technolo- Increase in operating costs: systems for R&D personnel Assessment occurrence, and the impact on project schedule, cost, and quality
gies. Additional investment re- Strengthen technical infor-
quired for recruitment and mation management and
training increases labor costs. confidentiality systems
Track R&D projects throughout the process with PLM, ERP, and other systems
Risk Establish a regular review mechanism through weekly meetings and milestone
Monitoring reviews
Closely monitor high-risk items and regularly report them to the Management
Likelihood Impact
Opportunity Type Description of Opportunity of Financial Impact Avoidance: Conduct rigorous patent searches and implement design-around
Occurrence Cycle Risk strategies to circumvent infringing technical pathways
Response Mitigation: For unavoidable technical risks, reduce the probability of failure by
With the advancement of the na- increasing pilot testing and strengthening validation
tional deep-earth and deep-sea Acceptance: Accept low-level risks or risks for which no other strategies can be
Opportunities in energy strategy, market demand Increase in operating profit: High-end implemented
for high-end downhole motors drilling tools feature significant techni-
Deep-Earth and capable of withstanding extreme cal barriers and strong pricing power,
High Long term
Deep-Sea environments is surging. The enabling the Company to optimize
Company can leverage existing product mix and improve overall gross
Development technical expertise in drilling tools margin.
to enter high-value-added niche
markets.
With a clear trend toward inte-
Increase in operating revenue: The
grating technologies such as
Opportunities in development of "intelligent drilling
logging-while-drilling (LWD)
tools" enhances single-product value
the Convergence of and digital drilling with tradi-
Medium to and opens new business models
tional tools, drilling tools are Medium
long term such as data services and predictive
Intelligent provided with "sensing, trans-
maintenance based on data connec-
mission, and control" capabili-
Technologies tivity, achieving dual revenue growth
ties to improve operational ef-
through "products + services".
ficiency and safety.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Establishment of Innovation Metrics and Targets Indicator
Composition of R&D Team
DUPT places technological innovation at the core of strategic priorities, maintaining long-term R&D investments at over
innovation targets, strengthens intellectual property planning and management, and promotes the industrial application By Age
of core achievements. In addition, the Company actively participates in major provincial science and technology projects. 30 (inclusive) to 40 (exclusive) Years Old 56
Among these, the project titled "R&D and Industrialization of High-Temperature, Corrosion-Resistant Deep-Sea/Deep-Earth
Downhole Motors with Intelligent Communication Capabilities" has been approved as a major science and technology
innovation project of Shandong Province, demonstrating the Company's R&D capabilities and industrialization potential Bachelor's Degree 110
in the field of cutting-edge technologies. During the Reporting Period, all annual innovation targets were achieved as By Educational Background
scheduled. Master's Degree 35
Innovation Metrics and Targets in 2025 Achievement
New R&D Projects Initiated: ≥5 Items 28 Items
Scientific and Technological Achievements Commercialized ≥ 5 Items 30 Items
Incentives for R&D Innovation
DUPT has established an innovation incentive system in accordance with systems such as the Measures for the Management
Patent Applications ≥ 15 Cases 32 Cases of R&D Innovation Incentives and the Measures for the Management of Patents, Professional Title, and Vocational
Qualifications. This system comprehensively covers three key dimensions: projects, patents, and talent. Project incentives
promote technology transformation, patent incentives strengthen technical barriers, and professional title and honor
Patent Implementation and Commercialization Rate ≥ 90% 93%
incentives stimulate talent potential, systematically driving R&D innovation.
As of the end of the Reporting Period, regarding project incentives, several key products and technologies—including
high-pressure flexible hoses, zero-pressure hydraulic vibrators, and a series of flat valves—successfully passed acceptance
inspections and received grade evaluations. Regarding patent incentives, multiple patents—such as "A Drive Shaft Assembly
Optimization of Innovation Support Mechanisms and RSS Downhole Motor" and "A Micro High-Pressure Flat-Plate Valve"—were granted, and the corresponding rewards
were disbursed, effectively unleashing innovation potential and enhancing the efficiency of R&D commercialization.
R&D Team Building
Protection of Intellectual Property Rights
DUPT attaches great importance to the development of the R&D team. Relying on independent R&D institutions, the
Company has built a professional R&D team that is well-structured, youthful, efficient, and highly innovative. Led by
intermediate and senior engineers, the team brings together more than 100 professionals holding master's and bachelor's In strict accordance with laws and regulations such as the
degrees. With solid technical R&D foundations and rich experience in project management and technical services, the team Trademark Law of the People's Republic of China, the Patent Law
lays a strong foundation for technological breakthroughs and product iterations. of the People's Republic of China, the Copyright Law of the Peo-
ple's Republic of China, and the requirements of GB
Key Performance
policy of "strengthening intellectual property protection and
safeguarding trademark rights", DUPT has established a sys-
Number of R&D Personnel: 153 Persons Percentage of R&D Personnel: 18.64 % tematic intellectual property management system. The Com-
pany has designated the top executive as the primary respon-
sible person for intellectual property management. The Tech-
Training on Intellectual Property Management System
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
For special structures in instruments, DUPT comprehensively applies advanced processes such as precision multi-axis
nology Center serves as the lead department, coordinating all related efforts, while each functional department supports machining, special electro-processing, and laser cladding. While ensuring micron-level dimensional accuracy, these
implementation within its respective scope. techniques enhance product assembly sealing performance and wear resistance, doubling the service life of key
DUPT has established full-process management systems covering the acquisition, maintenance, utilization, and protection components, and extending the working cycle of the entire machine in harsh downhole environments.
of intellectual property, and continuously improves employees' awareness of intellectual property protection through
regular internal training. In addition, based on the PDCA cycle framework, compliance reviews are embedded into key busi-
Case Process Technology for Non-Magnetic Components
ness process nodes—including project initiation, R&D, procurement, production, sales, and after-sales—to enable proactive
risk identification and continuous improvement, thereby effectively safeguarding the realization of value from innovative
To address the unique machining challenges of
achievements.
non-magnetic components, the Company has per-
Key Performance sistently tackled these issues to achieve breakthroughs
in key technologies. Taking the azimuthal acoustic LWD
Annual Cumulative Patent Applications: 32 Number of Utility Model Patents: 62 Items drill collar as an example, the Company innovatively de-
veloped a dedicated machining process to precisely
Valid Authorized Patents as of the End of the 6 Items
Design Patents: machine a series of precision "expanded hole" structures
Reporting Period:115 Software Copyrights:11 Items
along the same axis, with depths gradually decreasing
from 84 mm to 18 mm and wall thickness differences of
Invention Patents: 47Items Trademarks:14 Published Papers:14
up to 29 mm. This breakthrough overcomes the
high-precision machining bottleneck for complex irreg-
ular holes, providing critical process support for the in-
dustrialization of high-end non-magnetic drilling tools.
Case Downhole Motor Recognized as a Patent-Intensive Product
In March 2025, the China Patent Protection Associa- Case Process Technology for Complex Irregular-shaped Components
tion released the 2024 List of Patent-Intensive Prod-
ucts. The downhole motor products of the Company For complex and irregular-shaped components such as
were successfully included in the list for Shandong engineering parameter housings, the Company utilizes
Province due to outstanding patent value and eco- four-axis gantry machining centers to achieve the
nomic benefits. Winning this high-value national cer- high-precision intersection of multiple spatial inclined
tification in the national intellectual property sector holes. This ensures that the positional tolerance of pin
not only serves as authoritative recognition of our holes is consistently controlled within <0.05 mm—
technical strength, but also demonstrates the remark- equivalent to completing "micro-threading engraving"
able achievements of our long-term commitment to within the spatial scale of a hair's diameter—intuitively
scientific research and innovation. demonstrating the Company's strong technical
capabilities in precision machining.
Presentation of R&D and Innovation
Achievements Case Electric-Drive Hydraulic Skid-Mounted Pressurization Unit
DUPT focuses on promoting the innovation and application of
Technical Breakthroughs electric-drive hydraulic skid-mounted pressurization devices in
oilfield pressure-drive processes. During pressure-drive oper-
Leveraging robust technical problem-solving capabilities and breakthroughs in manufacturing processes, DUPT efficiently ations at oilfields, the Company innovatively applies elec-
transforms highly complex design concepts into precision components with stable performance and reliable quality. The tric-drive hydraulic pressurization technology. A single-cylinder
Company has mastered more than 40 key and difficult machining processes, forming a system of specialized process double-acting reciprocating injection pump driven by hydraulic
solutions that are both feasible and reusable. power achieves high-pressure, large-displacement injection and
is combined with coordinated operation of vehicle-mounted
In the field of precision machining, DUPT possesses industry-leading key technologies such as precision deep-hole skid pump units, significantly reducing construction costs and
machining, deep-hole gun drilling, slender shaft machining, deep-hole EDM, and spatial inclined hole machining. energy consumption and solving the problem of inefficient de-
Additionally, the Company has mastered more than ten special surface treatment and strengthening processes including velopment in mature oilfields.
laser cladding, supersonic flame spraying, anodizing, nitriding, and Teflon coating.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Achievement Application Industry Leadership
DUPT continuously promotes product and technology iteration, focusing on key scenarios such as deep-earth engineering, As a leading enterprise in China's oil and gas drilling and production equipment sector, DUPT is deeply engaged in industrial
efficient drilling, safe gas production, and intelligent pressure-drive operations. The Company has successfully developed technology collaboration and standardization initiatives. Relying on long-term accumulated engineering practice and
and applied multiple innovative products. Through university-industry collaboration, material structure optimization, and technical systems, the Company leads or participates in the formulation and revision of multiple national, industry, and
the integration of intelligent control systems, the Company has significantly enhanced product performance in terms of association standards, guiding quality upgrades in segmented fields through technical standard output. In addition,
high-temperature resistance, efficiency, sealing integrity, and construction cost-effectiveness. These achievements have leveraging its strengths in adapting to local operating conditions and handling extreme operating environments, the
been validated in national major engineering projects and multiple oilfield blocks, effectively solving industry pain points Company has built a technical collaboration ecosystem with upstream and downstream partners in the industry chain to
and reducing operating costs and risks. advance the localization of key equipment.
Innovative Products Core Technical Advantages Applications and Outcomes Participation in Standards Development Over the Past Five Years
Applied in the Xin'an-1 Well (with the maximum
bottom-hole temperature of 206°C) under the Standard No. Name of Standard Standard Type
High-temperature-resistant "Deep-Earth Engineering" Initiative, supporting
stator rubber formulation, trans- breakthroughs in vertical depth exceeding 10,000
High-Temperature GB/T 46051-2025 Choke and Kill Hoses and Hose Assemblies National Standard
mission shaft material and struc- meters
Downhole Motors
tural optimization Provided operational services for specific well
sections of the Take-1 and Chuankou-1 wells Specifications for Flexible Hoses and Hose Assemblies
GB/T 46167-2025 National Standard
Used For Fracturing
Included in Shandong Province's List of First-of-
a-Kind Technical Equipment Technical and Application Specifications for Hydraulic
T/CPI 11037—2024 Group Standards
Increased mechanical drilling speed of sliding Vibrators in Oil and Gas Drilling and Production Equipment
Hydraulic Vibrators Ball-drop Activation Technology drilling (by over 40%) and the proportion of com-
posite drilling, and reduced drilling cycles and Rules for Quality Grading Evaluation of Industrial
costs, during pilot applications in Daqing, Sichuan T/CAS ES200912001-2022 Products —Wellhead Equipment and Christmas Trees for Group Standards
and other blocks Petroleum-Specific Equipment
Bolts for Steel Pipe Flanges in the Petrochemical
Top-loaded Composite Metal Reduced seal leakage rate by over 70% and T/ZZB 2582-2021 Group Standards
Industry
Seal, and a Sand-Ejecting Struc- extended equipment lifespan by over 60%
Sand-control Gas Promoted and applied in Sinopec Northeast
ture in the Flat Valve Elastic As-
Production Wellhead Bureau, Yanchang Oilfield and other blocks,
sembly, Compliant with PSL 3G
significantly reducing oil and gas leakage risks
Standards Participation in Association
S/N Association Name Position in Association
Supported multiple processes including small-s-
Low-Shear and Low-Damage cale fracturing, sand and chemical injection, and
Complex Medium enhanced oil recovery 01 China Petroleum & Petrochemical Equipment Industry Association Executive Director
Design with the Intelligent Con-
Injection Device Solved the challenges of high-pressure, high-fl-
trol Technology
ow injection and displacement, and reduced co-
nstruction costs and operational intensity 02 China Petroleum and Chemical Industry Federation Member
Withstand pressures up to 140 MPa and feature
"conformable" flexibility 03 Shandong Industrial Design Association Director
Calculated on a 4-well chain operation: reduced
UPE+HNBR Lining, Wear Warn- the number of high-pressure pipe and valve
components for flexible fracturing hoses to only
Fracturing Hoses ing Layer, Corrosion Resistance, 04 Shandong Enterprise Innovation Promotion Association Member
one third of that for conventional steel pipe
and Ultra-High Wear Resistance
connections, decreased connection points by
approximately 70%, shortened manifold
connection time by approximately 50%, and 05 Dezhou Equipment Manufacturing Association Vice Chairman
saved equipment costs by approximately 41.2%
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
R&D, Innovation, and Digital-Intelligent
ISO 9001:2015, and guided by the Quality Manual as the guiding framework, and led by the Quality Management Department
as the leading department of the system, the Company implements quality management covering the entire product realization
Development
process. By clearly defining organizational responsibilities and processes, quality control is deeply integrated into every stage
of R&D, manufacturing, and service. Supported by systematic monitoring, analysis, and improvement mechanisms, the
Company continuously promotes the achievement of quality objectives and ensures product reliability and consistency.
DUPT steadily advances digital and intelligent development, focusing on core businesses such as drilling tools, equipment
manufacturing, and oil and gas engineering technical services. The Company deepens the integration and application of Since passing ISO 9001 certification in 1996, DUPT has deeply cultivated systematic quality management and obtained API
digital and intelligent technologies around key strategic directions such as unconventional oil and gas development and Spec Q1 certification in 2013, becoming a pioneer in quality management within the industry. At present, a three-dimensional
integrated downhole motor services. The Company has been recognized as a "Morning Star Factory" in Shandong Province's certification framework has been established with API Spec Q1 and ISO 9001:2015 as the core, supported by product
digital Economy Initiative, established a digital platform integrating multiple system integrating multiple systems such as ERP, specifications such as API 6A and 7-1 and supplemented by specialized systems including measurement and welding, providing
MES, and PLM, and simultaneously advanced the digital transformation of production processes and the intelligent upgrading systematic support for full-process quality control.
of downhole equipment products. By leveraging digital and intelligent capabilities to empower core business strategies, the
General Manager
Company continuously enhances operational efficiency across the entire chain of the oil and gas equipment industry.
Management Representative
Case R&D Big Data Platform—Establishing a Closed-Loop Management System for the Instrument Lifecycle
Management
To comprehensively empower the precise management of high-end downhole instruments such as high-temperature
MWD, the Company has independently developed a supporting big data management platform which establishes a Drilling Tools Division Equipment Division
Surface Technology International Marketing Supply Management
Department Department
Equipment Management Department
Human Resources Department
Intelligence and Informatization Department
Research Institute
Quality Management Department
General Manager’s Office
Division
closed-loop data system covering the entire lifecycle of instruments—from factory release, through downhole operations
and maintenance, to decommissioning—enabling real-time instrument status monitoring, controllable operational
processes, and data-driven management decisions. This ensures the Company can consistently provide customers with
Marketing Center
Operations Management Center
Technology Center
Production Center
Marketing Center
Operations Management Center
Technology Center
Production Center
Operations Management Center
Division 1
Division 2
Marketing Center
Operations Management Center
Procurement Management Center
Warehousing and Logistics Center
highly reliable and high-value-added comprehensive downhole motor solutions.
Based on an IoT framework, the system integrates Based on multi-dimensional data integration, the
four-dimensional core data streams: platform provides four core functions:
· Real-time operation data: dynamically monitor more than 30 · Visualized monitoring and real-time warning to prevent
key downhole parameters unplanned shutdowns
· Equipment health data: enable fault warning and condition · Data traceability and intelligent analysis to support condition
assessment review and parameter optimization
· Historical operation data: form a traceable and analyzable · Lifecycle management to achieve a closed-loop asset data
operating-condition database system from acquisition to decommissioning
· Maintenance data: optimize maintenance strategies · Collaborative customer service to enhance cooperation
Machining Workshop 1
Machining Workshop 2
Adhesive Injection Workshop
Assembly Workshop
Machining Workshop
Thermal Processing Workshop
Assembly Workshop
transparency and configuration accuracy
Organization Structure for Quality Management
Big Data Management Platform
Consolidation of Product Quality
Establishment of Quality Management System
In strict accordance with the Product Quality Law of the People's Republic of China and standards such as API Spec Q1 and API Spec Q1 Certification Certificate ISO 9001?2015 Certification Certificate API 6A Certification Certificate
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Likelihood Impact
Opportunity Type Description of Opportunity of Financial Impact
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ance of quality issues through data warn-
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Build a digital quality platform cov-
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Quality High Long term
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through to operational monitoring, Increase in operating profit: The lifecycle
Digitalization driving a shift from reactive control quality data reports are provided to oilfield
to proactive prevention. customers to strengthen their trust in
API 7-1 Certification Certificate Measurement Management Welding Management System product reliability and support the acqui-
System Certification Certificate Certification Certificate sition of high-value long-term orders.
Identification of Quality Risks and Opportunities
Likelihood Impact
Risk Type Description of Risk of Financial Impact Countermeasures
Cycle
Occurrence
Quality Risk and Opportunity Management
Increased operating costs:
Products are applied in A lower product pass rate
Implement tiered audits and Based on regulatory requirements and dynamic management principles, DUPT has formulated and implemented the Risk
high-temperature, hig- affects delivery, while de-
sampling inspections, with Assessment Management and Emergency Response Plan Control Procedure. Each year, the Quality Management Department
h-pressure, and high-a- creased customer satisfac-
focused monitoring of criti-
brasion downhole envir- tion impacts future cooper- organizes all departments to identify risks with professional methods and conducts a comprehensive evaluation and
cal processes
onments. If sealing perf- ation and orders.
Conduct design verification classification based on three dimensions—probability, severity, and detectability—according to a risk matrix, dividing risks
Product Quality ormance, strength, and Medium Increase in non-operating
Low and type testing to identify into major, moderate and low risks. The Company implements differentiated control measures for risks of different levels,
Risk other parameters conti- term expenses: Costs for af-
design defects in advance strengthens response measures and conducts regular drills for medium- and high-level risks. Through a systematic risk
nuously fail to meet API ter-sales maintenance, on-
Strengthen assembly train- management mechanism, the Company proactively seizes opportunities for improvement, thereby ensuring the effective
standards and opera- site technical support, and
ing and standardized oper-
tin-g condition require- parts replacement rise sig- operation of the quality management system and the steady development of business operations.
ations and implement qual-
ments,reliability and ser- nificantly, and the Company
ity traceability
vice life may be affected. may face liability for com-
pensation and fines.
Improvement of Product and Service Quality
Increase in operating costs:
In the event of equip- Establish tiered response
Compensation for down-
ment failure at a cus-
tomer site, delayed ser-
time, free services, and
protocols and service com-
mitments, and clarify han-
Quality System Audit
emergency logistics expens-
vice response, insuffi- dling procedures
es may be caused by service
After-sales cient spare parts sup- Establish a knowledge base
errors. DUPT regularly conducts internal audits of the quality management system, covering core processes such as nonconformity
port, or inadequate Low Short term for common faults to sup-
Service Risk Decline in operating profit:
on-site technical capa- port rapid on-site reference and complaint handling, risk and opportunity assessment, objective management, and compliance evaluation, and
Poor after-sales service
bilities may impact the Implement a service case coordinates these efforts with management reviews. By identifying and correcting operational deviations, preventing potential
leads to customer dissatis-
customer's operational review mechanism to con-
faction, resulting in churn risks, and driving continuous improvement of the system, the Company ensures that all quality activities comply with standard
progress and satisfac- tinuously optimize service
and reduced orders, which in requirements and maintains the suitability, adequacy, and effectiveness of the management system. During the Reporting
tion. processes
turn impacts revenue. Period, the Company successfully passed the annual audits of API Spec Q1 and DNV quality management systems, and the
systems continuously operate effectively.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Product Quality Inspection Key Performance
DUPT implements full-process inspection of raw materials, production processes, Training on Quality: 30 Sessions Training Duration: 425.85 Hours Participants of Training: 470 Person-times
and finished products in strict accordance with industry specifications and quality
management standards. The Company routinely conducts multi-dimensional
inspections such as chemical composition analysis, mechanical property testing,
ultrasonic testing, and magnetic particle testing. It systematically implements
third-party inspections and special equipment type tests and achieves full-process
traceability based on various quality records. Through continuous optimization of
inspection processes and strengthening quality control, the Company ensures
product conformity and consistency, and provides customers with oil and gas
equipment products that meet high-standard requirements. During the Reporting
Period, the Company conducted 1 internal quality audit and hired third-party
institutions for 19 inspections.
Site of Quality Training
Type Test Certificate for Special Equipment
Key Performance
Quality Building Trust
First Pass Yield: 99.96% With high-quality management, DUPT has earned widespread recognition and numerous honors within the industry. This not
only significantly enhances our brand awareness and reputation, but also solidifies our industry-leading position and
continuously motivates technological innovation and brand development.
Quality Assessment and Incentives Case Honorary Title of the First Batch of "Lulian Premium Products Manufactured in Shandong Province"
In December 2025, the downhole motor products independently developed by the
DUPT has formulated the Measures for Product Quality Assessment to implement strict quality assessments and positive
Company were awarded the title of the First Batch of "Lulian Premium Products
incentives. For quality issues, the Company clarifies responsibilities and initiates assessments, and informs and takes disciplinary
Manufactured in Shandong Province" by the Department of Industry and Information
actions against behaviors such as delayed reporting or concealment. By establishing the "General Manager Quality Award",
Technology of Shandong Province. This honor is an authoritative recognition of the
the Company recognizes outstanding performance and encourages all employees to proactively report potential quality
product's technological advancement, quality reliability, and market influence. It fully
hazards and participate in improvement activities, thereby forming a closed-loop quality management system that combines
demonstrates our technical strength and brand value in the petroleum equipment
rewards and penalties with full employee participation, effectively driving product quality improvement.
field and further enhances our industry reputation and customer trust.
Quality Culture Development
DUPT deeply promotes the development of a quality culture, and has established a structured training mechanism that covers
all employees and is implemented at different levels. The Quality Management Department organizes company-wide training
on the quality management system to strengthen overall quality awareness; technical departments provide new employees
with training on basic product knowledge to help them quickly adapt to their roles; and production personnel focus on on-site
quality issue analysis methods to improve practical problem-solving capabilities. Through targeted training, the Company
ensures that employees in all positions possess the necessary quality literacy and skills, thereby continuously strengthening
product quality.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Quality Management Metrics and Targets Marketing/After-Sales Personnel fill in the External Nonconforming Product Management Process
To ensure the comprehensive achievement of annual quality management objectives, DUPT continuously optimizes production
processes for core products such as drilling equipment and wellhead equipment, strengthens quality skills training for
The Quality Management Department and the Technical Department receive the process
employees in key positions such as R&D, production, and quality inspection, and introduces advanced quality management
tools and technologies. During the Reporting Period, all quality targets were successfully achieved, and overall quality
management continued to meet high industry standards and core customer requirements.
The Technical Department selects responsible department
Quality Targets for 2025 Achievement
Number of New Products Developed Annually ≥ 12 Items 24 Items
The responsible department issues corrective recommendations
Customer Satisfaction ≥ 90% 96.73%
Contract Fulfillment Rate ≥ 97% 98.11% The Quality Management Department selects department to conduct nonconformance analysis and take corrective measures
First Pass Yield of Purchased Products: ≥92% 95.34%
The responsible department provides root cause analysis and takes corrective measures
Scrap Rate of Drilling Tools ≤ 0.1% 0.04%
Scrap Rate of Equipment Products ≤ 0.1% 0.02%
The Quality Management Department is responsible for verifying corrective measures
Scrap Rate of Heat Treatment Products ≤ 0.015% 0.015%
Ex-factory Pass Rate of Downhole Motors: 100% 100% The Information Feedback Department communicates processing results to customers via phone, email, etc.
Quality Complaint Process
Ex-factory Pass Rate of Flat Valves: 100% 100%
Protection of Customer' Rights and
Interests
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DUPT adheres to a customer-centered approach. By establishing the After-sales Service Management System, the Company
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systematically standardizes service processes and uses quality control procedures such as the Nonconforming Product Control
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Procedure to provide proactive quality assurance. The After-Sales Service Center has been established to integrate service
networks and engineering resources nationwide. The Company defines six core responsibilities covering the entire process
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from service planning and on-site support to feedback, and has implemented an efficient complaint handling mechanism to
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ensure rapid response and closed-loop resolution of customer issues. As of the end of the Reporting Period, the Company
has passed the after-sales service certification, the enterprise integrity management system certification, and the AAA-level
After-sales Service Certification Enterprise Integrity Management Enterprise Credit Evaluation Certification
enterprise credit certification, jointly demonstrating the maturity of the service system. System Certification Certificate Certificate
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Improvement of Customer Experience Key Performance
DUPT has formulated and implemented the Operational Guidelines on Cus- Key Performance
Investment in Information Security and Privacy Protection: RMB 84,000
tomer Satisfaction Measurement. Through the Customer Satisfaction Survey
Form and diversified feedback channels, the Company systematically col-
Number of Information Security and Privacy Protection Violations: 0
lects customer evaluations and requirements, conducts annual satisfaction
analyses, assesses the alignment of products and services from the cus-
tomer's perspective, and drives continuous quality improvement. Simulta-
Customer Satisfaction: 96.73%
neously, the Company provides training for customers' technical teams and Intelligence and Informatization Department
operators on product technology, knowledge, and operational standards.
By offering proactive guidance and optimizing product application, the
Company enhances the customer experience from the source.
Hardware Network System Operations and Software Development
Manager
Engineer Maintenance Engineer Engineer
Information Governance Framework
Product and Service Training Session
Protection of Data Privacy Certificate for Integration of Informatization
and Industrialization Management System
Certification
Digital Transformation Management
System Certification Certificate
Information Security Management System
DUPT improves the full lifecycle data security management in strict accordance with the Data Security Law of the People's
Republic of China, the Personal Information Protection Law of the People's Republic of China, the Cybersecurity Law of the
People's Republic of China, and other laws and regulations. The Company has established a three-dimensional protection
system with the Intelligence and Information Department as the execution center and engineers in various technical positions
performing coordinated duties. This ensures the integrity, confidentiality, and availability of internal data, customer information,
and operational systems, empowering business innovation and compliant operations through compliant data management.
During the Reporting Period, the Company successively obtained AAA-level certification for the Integration of Informatization
and Industrialization Management System and the AAA-level certification for the Digital Transformation Management System,
thereby solidifying the foundation of digital security.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Information Security Protection Measures Emergency Response for Information Security
Adhering to an approach that combines preventive measures with post-incident response, DUPT standardizes emergency
Information Security Mechanism management procedures for failures from the core server room to office areas. based on the Emergency Response Plan for
Data/Network Failure. In response to system or network failures, the Company strictly enforces standardized response
requirements and continuously optimizes its emergency response mechanisms through regular drills and contingency plan
DUPT has formulated and strictly implemented the Computer Room Management System of the Information Department. reviews, thereby effectively enhancing emergency response capabilities and the practicality of contingency plans to ensure
Focusing on key aspects such as data confidentiality and backup, virus prevention, and equipment operation and maintenance, the stable operation of information systems. During the Reporting Period, the Company conducted a total of 4 fault disaster
the Company implements full-process secure and confidential control of system data. This effectively prevents risks of data recovery emergency drills.
alteration, leakage, loss, and damage, and comprehensively ensures the safe, stable, and efficient operation of equipment
and software systems in the server room.
Case Emergency Replacement Drill for Network Switches
In addition, in accordance with the Measures for Data Security Management, DUPT strengthens data security risk management
through systematic identification, evaluation, monitoring, and control mechanisms to safeguard core data assets. During the
In September 2025, to strengthen the emergency support capabilities of the network system,
Reporting Period, the Company completed 12 monthly cybersecurity and data center screening audits, and invited external
the Company organized a switch emergency replacement drill. The drill effectively improved
security vendors to conduct 1 network penetration attack-defense drill, to comprehensively evaluate and enhance the practical
the practical operational skills of technical personnel, identified areas for improvement in the
effectiveness of its cybersecurity defense system.
emergency response process, and provided important insights for refining emergency plans
and enhancing overall emergency response effectiveness.
Information Security Management Measures
Set access permissions and approval procedures according to data usage
Strictly prohibit unauthorized disclosure, lending, or transfer of data
Data Confidentiality and Regularly back up and securely store data to ensure immutability and rapid
Backup Management recovery in case of system failure
Back up the central servers on a scheduled basis Case PLM Database Server Disaster Recovery Drill
In December 2025, the Company simulated a scenario in-
volving an interruption of the PLM business system and a
Conduct regular virus scans, and address and report any findings immediately database server crash. By rapidly switching to a backup
Use genuine antivirus software and update it promptly server to restore operations, the drill validated the availabil-
Ensure programs or data transmitted remotely pass virus detection ity of the disaster recovery system and data security. The
Monitor device status in real time, and report and log any abnormalities drill effectively improved the emergency response and
Virus Prevention and fault-handling capabilities of the operation and mainte-
Security Management immediately
Strictly safeguard server accounts and change passwords regularly nance team and accumulated practical experience for han-
Never disclose the center's information or data without authorization dling real failures.
Ensure software and hardware changes must be approved and registered for
filing
Strictly implement the systems of data backup and the custody by designated Training on Information Security
personnel
Equipment Operation, Conduct weekly inspections of the power supply and operational status of
To strengthen the protection of information security, DUPT enhances information security awareness among all employees
Maintenance, and servers, networks, and peripheral equipment
by expanding training coverage, increasing drill frequency, and strictly adopting the "training–verification–interview–retraining"
Management Ensure servers must not be debugged or have software installed without
model. In addition, through a designated liaison training mechanism, the Company strengthened the team's network
authorization, and require approval before configuration
authentication capabilities, promoted the deep integration of authentication functions with information security management,
Report server failures immediately upon discovery, and prohibit unauthorized
and further enhanced the entire workforce's ability to protect against network threats and prevent data security risks. During
restart or configuration
the Reporting Period, the Company organized 1 phishing attack-defense drill for all employees.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Key Performance onboarding, performance evaluation, and potential elimination. Led by the procurement department and in collaboration
with R&D, quality, and other departments, we have established a joint review mechanism to comprehensively evaluate
Training on Information Security and Privacy Protection: 2 Sessions Total Training Duration: 853 hours suppliers' technical capabilities, quality control, and overall support capacity. This approach drives the optimization and
upgrading of the supplier structure, facilitating the transformation of the supply chain toward high-quality and sustainable
development.
Number of Trainees: 831 Persons Coverage Rate of Employee Training: 100% Key Performance
Number of key cooperative suppliers: 20
Case Training on Network Access Authentication Operations Supplier Management Mechanism
In June 2025, the Company offered a training on network The Company has established systematic supplier onboarding criteria, covering
business qualifications, credit status, supporting capabilities, supply channels,
access authentication operation covering two major access compliance, and other requirements. The onboarding process includes information
scenarios: internal employees (DingTalk authentication on Approval for submission, qualification review, and multi-dimensional evaluation conducted
computer/mobile terminals) and external visitors (SMS au- Supplier Admission jointly by procurement, R&D, quality, and other departments, with a focus on
thentication). The training aimed to guide participants to qualification validity, risk status, demand alignment, and cooperation feasibility.
quickly select the corresponding process according to their Qualified suppliers are added to our dynamically managed List of Qualified
Suppliers.
identity and complete network access securely and conve-
niently, ensuring effective implementation of access permis-
sions and security policies. The Company conducts regular performance evaluations of suppliers on the List
of Qualified Suppliers every 1 to 2 years, primarily assessing quality, delivery
timeliness, pricing, and service cooperation. Based on the evaluation results,
Performance Evaluation
classified management is implemented and procurement strategies are adjusted
of Suppliers
accordingly. Immediate evaluation is triggered in cases of major quality fluctuations,
delivery delays, service deterioration, unauthorized changes, or breaches of
integrity obligations.
Case Training on Information Security Awareness
In October 2025, the Company organized a special training Suppliers with substandard performance, serious quality issues, delivery delays,
session on information security awareness. The course Elimination and Exit of poor cooperation, or prolonged inactivity are promptly eliminated. The supplier
focused on real cases and drills, systematically analyzing Suppliers suspension and blacklisting process is initiated through the OA system.
actual information security threats and new attack methods,
and interpreting drill results to strengthen employees'
awareness of security risks and effectively improve protection
awareness and practical response capabilities.
Identification of Supply Chain Risks and
Opportunities
Likelihood Impact
Risk Type Description of Risk of Financial Impact Countermeasures
Occurrence Cycle
Co-Building of Responsible Supply Chain Special raw materials, such as
high-pressure alloy steel and
Flexibly adjust procurement
wear-resistant rubber used in Increased oper- strategies and negotiate fa-
the production of screw drill ating costs: The vorable prices and payment
Supply Chain Management System
tools and wellhead devices, are surge in raw ma- terms.
Price Risk exposed to sharp price fluctu- Low Long term terial prices di- Sign long-term price-lock
ations due to commodity rectly drives up agreements with core sup-
market cycles, investment vol- the procurement pliers and establish price
DUPT continuously improves its supply chain management system by formulating and implementing a series of policies, atility in the oil and gas sector, cost. adjustment mechanisms.
including the Supplier Management Standards and the Material Procurement Bidding System. The Company enforces and environmental production
closed-loop management throughout the entire lifecycle of supplier management, covering supplier development, restriction policies.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Risk Type Description of Risk
Likelihood Impact
of
Occurrence Cycle
Financial Impact Countermeasures Management of Supply Chain Risks and
Opportunities
Import of core precision com- Increased operating Maintain safety stocks for
ponents, such as high-perfor- costs: Supply short- key components. Strengthening Exchanges and Cooperation
mance bearings, seals, and ages result in pro- Promote R&D and certifica-
control system chips, faces risks duction shutdown tion of domestic alterna-
Supply Risks of supply disruptions or ex- Medium Long term losses, higher expe- tives.
DUPT has consistently prioritized strategic collaboration with suppliers. By organizing supplier conferences, the Company
tended delivery lead times due dited shipping ex- Sign agreements with over-
to geopolitical tensions, export penses, and potential seas suppliers that include fosters an efficient and in-depth communication platform that encourages value co-creation and resource complementarity.
controls, or insufficient supplier delivery delays and minimum supply guarantees The Company continuously expands its strategic cooperation ecosystem, optimizing collaboration processes, deepening
capacity. contractual claims. and priority supply rights. partnership details, and enhancing both domestic collaboration capabilities and overall market competitiveness. We are
committed to establishing a long-term, stable, and mutually beneficial supply chain ecosystem.
Case Strategic Cooperation between DUPT and China Petrochemical International (Chongqing) Co., Ltd.
Increased operating Establish long-term agree-
Over-dimensional transporta- costs: Overdue liqui- In April 2025, as a representative of strategic suppliers,
tion of large-scale equipment, ments with leading over-di-
dated damages, repair mensional transport logis- DUPT signed a strategic cooperation agreement with
such as fracturing equipment or replacement costs
and wellhead devices, may ex- tics companies to secure China Petrochemical International (Chongqing) Co., Ltd. at
for damaged goods, shipping capacity and prior-
Logistics Risks perience delays, cargo damage, Medium Short term the Qilu Petrochemical Hydrogenated Nitrile Rubber Co-
order losses and capi- ity scheduling.
or disruptions due to road ad- tal tied up in in-transit operation Signing Ceremony. This partnership encompass-
ministration approvals, geopo- Purchase transportation in-
inventory caused by es raw material supply and market collaboration, with the
litical conflicts, or extreme surance for high-value
transportation inter- equipment. goal of establishing a full-chain collaborative ecosystem
weather conditions. ruptions. covering "R&D – Production – Sales – Application". It rep-
resents a new phase of cooperation in the special rubber
materials sector and marks a significant milestone in in-
dustrial chain collaborative innovation.
Likelihood Impact Case DUPT Holds Its First Strategic Supplier Conference
Opportunity Type Description of Opportunity of Financial Impact
Occurrence Cycle
In September 2025, under the theme "Unite as One,
Leverage industrial Internet, Shape the Future with Smart Chains", DUPT successfully
IoT, and other advanced tech- hosted its first strategic supplier conference. Chairman
nologies to enhance procure- Decreased operating costs: Opti-
Digital Collaboration Cheng Guihua and other executives joined supplier rep-
ment and logistics tracking mize inventory turnover, and reduce
High Long term resentatives to discuss industry trends and establish a
Opportunity platforms, improving supply capital tied up and losses from plan-
chain transparency and re- ning errors. quality symbiosis system. During the event, four catego-
sponse efficiency. ries of awards were presented to recognize outstanding
partners. The conference aimed to deepen collaboration
and foster the development of a resilient, efficient, and
mutually beneficial supply chain ecosystem.
Expand overseas operations
by deploying localized supply
Supply Chain chain nodes (e.g., cooperative
distributors, warehouses) in
Increased operating profit: Enhance
overseas revenue and net profit by
Strengthening Procurement Capabilities
Deployment High Long term lowering logistics costs and short-
target regions to align with
demand and mitigate risks ening delivery cycles.
Opportunity DUPT emphasizes the professional development of its procurement system and enhances the capabilities of its supply chain
from cross-border logistics
and trade barriers. team through multi-dimensional initiatives. The Company regularly organizes specialized training programs on core
procurement modules to effectively improve both the professional skills and overall competency of procurement personnel,
thereby supporting the high-quality operation of the supply chain.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Through clear responsibility and supervision mechanisms, the Company fully integrates integrity requirements across the
Case Training on Procurement Negotiation Skills and Supplier Management Improvement
entire supplier lifecycle—including supplier onboarding, performance evaluation, and exit—ensuring full traceability and
transparent management. By signing the Partner's Commitment to Integrity with suppliers, DUPT reinforces mutual
In November 2025, DUPT launched a training program aimed at enhancing supplier management and procurement
accountability, fosters a fair and healthy procurement ecosystem, and builds a clean line of defense to support the sustainable
negotiation capabilities. The program covered key modules, including supplier quotation analysis, digital performance
development of its supply chain.
evaluation, and cross-departmental collaborative cost reduction. Through practical case studies, participants explored
negotiation strategies, shared effective experiences, identified areas for improvement, and comprehensively
strengthened their professional negotiation skills and supply chain management capabilities. Key Performance
Signing Rate of Integrity Agreement by Supplier: 100%
Digital Empowerment
DUPT integrates ERP, OA, and the supply chain management
platform (SRM), supported by a document management system, to
achieve full digital connectivity across the entire procurement
process. This digital integration covers procurement requests,
Sustainable Development of Supply Chain inquiries and comparisons, contract approvals, and order execution.
The system enables unified online control over supplier onboarding,
performance tracking, bidding management, and contract filing,
comprehensively improving digital operational efficiency and supply
ESG Management chain collaboration.
DUPT integrates Environmental, Social, and Governance (ESG) Standards into the
full lifecycle supplier management, actively building a resilient and sustainable SRM system
supply chain system. Guided by responsible procurement principles, the Company
prioritizes product environmental performance as a key decision-making factor.
During the procurement process, we focus on selecting materials and technolo- Supply Chain Metrics and Targets
gies that have a low environmental impact, high resource utilization efficiency,
and compliance with green standards. In addition, we are working to incorporate
The Company establishes supply chain KPIs focused on procurement quality, delivery timeliness, and cost control, which
social responsibility performance, work safety management, and environmental
are monitored and analyzed collaboratively by quality control, operations, finance, and other departments. During the
protection practices into our supplier onboarding review and dynamic evaluation
Reporting Period, DUPT successfully met all preset performance targets, achieving precise control over overall supply chain
systems, thereby driving the value chain toward greater responsibility, lower
performance.
carbon emissions, and enhanced resilience. During the Reporting Period, DUPT
successfully passed the GB/T 33635-2017 Green Supply Chain Management
System Certification, further enhancing our brand competitiveness in the sus- Procurement and Management Targets for 2025 Achievement
tainable supply chain sector.
First Pass Yield of Purchased Products: ≥92% 95.48%
Qualified rate of drilling tool procurement: ≥96% 97.20%
Green Supply Chain Management
System Certification Qualified rate of equipment procurement: ≥91% 94.57%
Transparent Procurement Timeliness rate of procured products: ≥91% 95.78%
DUPT regards procurement integrity as the cornerstone of supply chain management. We have established a transparent Timeliness rate of drilling tool procurement: ≥82% 87.89%
supply chain system guided by the Integrity Management System, regulated by the Agreement on Procurement Behaviors,
supported by embedded process controls, with the aim of jointly building a robust supply chain ecosystem. Timeliness rate of equipment procurement: ≥90% 94.75%
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Establishing Rigorous Disciplines through
Safety Management and Reinforcing
Well-Being through Health
Protection
DUPT has established and continuously improved its occupa-
tional health and safety management system, implemented
comprehensive risk control measures and full-staff training.
These efforts prevent workplace safety incidents and occupa-
tional hazards, protect employees' physical and mental health,
ensure safe operations, and provide a solid foundation for the
Company's sustainable and long-term development.
Responded UN Sustainable Development Goals (SDGs):
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Fortification of Safety Defense Lines Opportunity Type
Description of
Opportunity
Likelihood Impact
of
Occurrence Cycle
Financial Impact
A robust HSE system
Adhering to the policy of "Safety First, Prevention First, Comprehensive Manage- Key Performance helps prevent accidents Decrease in operating costs: Reduced work injury compensa-
ment" and the principle that safety must be managed in every industry, every busi- Efficiency and occupational dis- tion claims, equipment damage, fines, and insurance premi-
eases, enhances em- High Long term ums.
ness operation, and every production and business activity, DUPT has established Opportunities ployee well-being, and Increase in operating revenue: Reduced downtime and staff
a comprehensive safety production responsibility network that spans the entire Investment in Work Safety: boosts operational effi- turnover, ensuring stable and efficient production.
workforce. The Company has formulated and strictly implemented 52 safety man- ciency.
agement systems, including the Work Safety Responsibility Management System,
the Work Safety Inspection Management System, and the "Three Simultaneities"
RMB 1.7539Million
Driven by policies for
Management System for Occupational Health and Safety Facilities in Construction work safety and green
Projects. These regulations clarify that the Chairman is the ultimate person re- manufacturing, the C-
ompany continuously Increase in operating revenue: Win contracts and enhance cus-
sponsible for work safety. The Company has established an HSE Management De- strengthens its HSE
Market tomer loyalty through a strong HSE reputation.
partment as the dedicated body responsible for safety management, ensuring management capabili- High Long term Decrease in operating costs: Lower spending on market access
Opportunities ties to secure high-end
that safety responsibilities are implemented at all levels and by every individual. and bidding due to non-compliance issues.
market orders and sus-
We have in place a dual prevention mechanism that focuses on safety risk classi- tainable cooperation
fication and control and the identification and management of potential hazards. opportunities both at
home and abroad.
Assessment results under the work safety responsibility system are directly linked
to employees' job adjustments and remuneration, further strengthening the full
implementation of safety responsibilities across the organization.
Coordination of Safety Strategy
Enhancement of Risk Control
Likelihood Impact
Risk Type Description of Risk of Financial Impact Countermeasures
Cycle
Occurrence
Non-compliant opera-
tions, equipment failures
Increased operating costs: Ad-
ditional expenses on medical
Implement risk classification and
control and hazard investigations.
Risk Management Mechanism
or inadequate protection compensation, equipment re- Strengthen special operation
Work Safety in production workshops pairs, and maintenance. training and work permits. DUPT identifies, assesses, and hierarchically controls occupational health and safety risks associated with equipment,
may cause accidents Low Short term
Decreased operating revenue: Conduct regular inspection and facilities, and work activities, following the Risk and Opportunity Control Procedure and the Hazard Identification and Risk
Risk such as mechanical inju- Delayed order deliveries and maintenance of key equipment.
ries and fires, resulting in potential contractual penalties Visualize operating procedures Classification and Control Procedure. The Company has developed special risk control lists covering core operations,
casualties or production due to production shutdown. and enforce on-site supervision. equipment and facilities, and implements dynamic monitoring and regular reviews to ensure effective control over all types
shutdowns.
of risks.
Safety requirements and Conduct thorough due diligence
local community permit Increase in operating costs:
Additional expenditures due on HSE regulations and social
conditions at both do- risks at the early stages of project Work Activity Risk Identification and Evaluation Process
mestic and overseas job to fines, necessary rectifica-
tion, and compliance consult- development.
On-site sites are frequently up- Appoint local compliance man-
Low Short term ing.
Safety Risk dated. Failure to adapt to agers to dynamically track evolv-
these changes in a timely Decrease in operating reve- Work Activity Break down each work step to identify Assess the likelihood of occurrence
ing regulations and ensure ongo- Work Activity
manner can result in nue: Losses incurred from pro- Risk Identifi- hazards and potential events at every and the severity of consequences
ing compliance. Risk Analysis
fines, production shut- duction shutdown and re- cation stage. for each identified hazard.
stricted market access. Develop emergency response
down, or legal action. plans.
Hazards such as noise, Provide occupational health train-
ing and hazard notifications.
Develop and implement measures
dust, and welding fumes Decrease in operating reve- covering engineering, technical, man-
are present in the pro- Supply and enforce the use of
Occupational
duction process. Pro- Low Short term
nue: Reduced project effi- personal protective equipment Work Activity Determine the risk level of each work Work Activity agement, training, personal protec-
ciency due to staff absentee- (PPE). activity based on the analysis results tion, and emergency response, tai-
Health Risk longed exposure can Risk Rating
and complete risk classification.
Risk Control
lored to the possible accident types
lead to occupational dis- ism. Implement regular job rotation
and conduct occupational health
and consequences, ensuring full-pro-
eases. cess risk control.
check-ups.
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Safety Emergency Management Case On-site Emergency Drill – Lifting Accidents
In March 2025, the Company carried out an on-site emergency drill simulating lifting accidents, including lifting belt
In accordance with the Management Measures for Work Safety Accident Emergency Response Plan and relevant laws and
failure and heavy object falling scenarios. The drill encompassed the entire emergency response process, including
regulations, DUPT has developed a Comprehensive Emergency Response Plan for Work Safety Accidents. This plan outlines
casualty treatment and accident investigation, testing and improving the practicality of the emergency plan and
the emergency rescue organization system, response procedures, and rescue measures. The Company regularly conducts
employees' emergency handling capabilities.
emergency drills, covering scenarios such as fire, confined space entry, and mechanical injuries, ensuring the availability of
complete emergency facilities and materials. Post-drill reviews and corrective actions are immediately implemented to con-
tinuously enhance employees' emergency response and self-rescue skills, minimizing accident losses, and ensuring
personnel safety and operational stability.
Key Performance
Organized Safety Emergency Drills: 33 Times
General Commander
Hazard Investigation and Rectification
(General Manager / Principal Person-in-Charge) DUPT strengthens the investigation and management of hazards to proactively prevent potential safety hazards at source.
The Company has developed the Equipment and Facility Risk Hierarchical Control List and the Potential Hazard Atlas to
comprehensively identify production risks through routine inspections, special inspections, and seasonal checks. These
Deputy General Commander / Chief Engineer risks, along with their control measures, are integrated into required knowledge and assessed alongside safety education
and responsibility implementation, ensuring that all employees have a full awareness of safety risks. The process for
managing identified hazards follows four key steps: registration, assessment, rectification, and acceptance, with regular
re-inspections to verify the effectiveness of corrective actions. Additionally, the HIC system (Hazard Investigation and
Control System) supports digital and process-based management, enhancing the timeliness and traceability of the hazard
Communication Logistics Security and investigation and rectification processes.
Emergency Medical Aid and Liaison Support Team Evacuation
Rescue Team Team Team Team
Key Performance
Emergency Rescue Organization Chart Total safety hazards investigated: 13,606 Potential Hazard Inspection and Rectification Rate: 99.29%
Case Special Team-Based Hazard Investigation Activity
Case Confined Space Emergency Drill – Glue Injection Workshop
In June 2025, the Company organized a team-based hazard investigation activity under the theme "Find Hazards Around
In March 2025, the Company conducted a confined space emergency drill in the glue injection workshop, simulating You". The initiative actively engaged front-line employees, encouraging full participation. Through on-site identification,
personnel accidents during vulcanizing tank maintenance. The drill effectively enhanced employees' abilities in risk recording, and evaluation, specific risk points in daily operations were accurately detected. At the same time, the activity
identification, emergency response, and coordinated rescue operations within confined spaces, thereby strengthening enhanced front-line employees' ability to recognize and respond to potential safety hazards, strengthening overall
overall safety production. workplace safety awareness.
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Implementation of Protection Measures "Work Safety Month" Event in June 2025
Case "Managers Talk About Safety" Awareness Campaign
Safety Accident Management The Company launched a special initiative, "Managers Talk About Safety". The chairman and department heads
personally shared safety concepts and discussed typical cases with employees, drawing on their own management ex-
periences. Through this high-level engagement and in-depth communication, employees' awareness of safety respon-
DUPT has established the Rules of HSE Accident Management, which standardizes the process of accident classification, sibilities was strengthened, effectively fostering a proactive safety culture.
reporting, investigation, handling, rectification, and knowledge sharing, following the Four-No-Let-Go principle. In the
event of an accident, the Company mandates the immediate activation of emergency response procedures and reporting.
Simultaneously, a root cause analysis is conducted, operational procedures are revised as needed, and targeted employee
training is reinforced. Accountability is enforced based on the investigation outcomes, with relevant personnel assessed
and disciplined according to the Rules of HSE Assessment and Incentive Management. Typical cases are incorporated into
warning education programs to reduce the likelihood of recurrence and to support the continuous improvement of the
HSE management system. During the Reporting Period, no work-related fatalities or major safety liability accidents occurred
in the Company.
Training and Culture Development Case Emergency Rescue Competition
Focusing on the construction of the HSE training system and the cultivation Key Performance The Company organized an emergency rescue skills competition, evaluating employees' proficiency and teamwork in
of safety culture, DUPT has formulated the Management System for Occu-
three key areas: fire extinguisher and hydrant operation, air respirator use, and CPR first aid, conducted in a team relay
pational Health and Safety Training and Education and developed the 2025 Total Investment in Safety Training:
format. The competition reinforced training and helped improve employees' emergency response speed and on-site
HSE Plan, establishing a diversified training system that integrates both
online and offline approaches, as well as theory and practice. Online, the
RMB 0.158 Million handling capabilities.
Company utilizes DingTalk Cloud Classroom to disseminate legal knowl- Number of Safety Training Sessions:
edge and conduct online assessments, ensuring that theoretical content
is broad, up-to-date, and accessible. Offline, the Company organizes prac-
tical training sessions such as emergency rescue drills and special proce- Participants of Safety Training Sessions:
dure operations to strengthen employees' operational skills and emergency
response capabilities. Additionally, starting with 2025 Safety Production
Month, we plan a series of themed promotional activities, produce and Average Duration of Safety Training Per Person:
broadcast safety education videos, and implement quarterly special action
plans. This strategy combines targeted educational priorities with ongoing
campaigns under the slogan "Safety is Always First", creating a culture of Coverage Rate of Safety Training:
safety production where full attention and active participation are priori-
tized.
In addition, the Company conducted double-blind emergency drills with no prior notice, simulating real fire scenarios.
These drills provided a comprehensive test of the office building's emergency plan, the readiness of emergency
equipment, and employees' immediate response, procedural execution, and internal coordination skills.
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Case Safety Slogan Promotion
Management of Hazardous Chemicals
In strict compliance with the Regulations on the Management of Hazardous Chemicals, the Regulations on the Management
of Precursor Chemicals, and other relevant laws and regulations, DUPT manages the entire lifecycle of hazardous chemicals
systematically. The Company has established a Hazardous Chemical Management System, specifying requirements for
procurement, transportation, storage, use, and disposal of hazardous chemicals, while maintaining a dynamic List of
Hazardous Chemicals to keep risk characteristics up to date. Quarterly special inspections are conducted to ensure timely
rectification of issues, strengthen weak links, and enforce accountability for major hazards. These measures effectively
prevent risks such as fire, poisoning, and environmental pollution, ensuring the safe and compliant management of
hazardous chemicals.
Establishment of Safety Goals
DUPT adopts "Zero Accidents, Zero Injuries, and Zero Occupational Diseases" as its safety management goal. The Company
establishes annual quantitative safety indicators, which are then broken down into department-level performance assess-
ments to drive continuous improvement in the operation and effectiveness of the safety management system.
Occupational Health and Safety
Specific Indicators Annual Objectives Achievements in 2025
Safety Management for Related Parties
Number of first-class minor injuries, serious injuries, and above 0 0
DUPT has established the Stakeholder Safety Management System and the Management Rules of HSE Thirty Clauses, clearly
defining the safety obligations and compliance standards for external partners and integrating their management into op-
erational processes. We enforce unified safety supervision, on-site inspections, and end-to-end control over contractors Number of vehicle accidents, fire accidents and other recordable incidents 0 0
and suppliers. Through mandatory safety training and the creation of a Thirty Clauses Red-Line Action Statistics Ledger,
high-risk behaviors are systematically tracked and managed. Additionally, any violations by external parties are incorporated
into the safety assessments of the corresponding departments, reinforcing each department's management responsibility
and ensuring comprehensive control over external safety risks.
Case Labor Safety Training
In January 2025, the Company conducted special safety training for contractors, covering operation guidelines and
safety operating procedures. The training aimed to strengthen the contractors' understanding and adherence to unified
safety management standards, while also improving collaborative risk control starting from the point of access.
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Support for Occupational Health Protection Type Specific Actions
Regular monitoring of
Implementation Method
Detection of Hazard Entrust qualified third-party institutions to perform testing and
occupational disease hazard
Factors assessments according to internally formulated procedures.
factors in the workplace
Occupational Health Management System Engineering Protection Source control and
Equip welding, laboratory, and other relevant posts with specialized
facilities such as welding fume purifiers and fume hoods; perform
Control engineering protection
regular maintenance to ensure effective operation.
In strict compliance with the Law of the People's Republic of China on the Prevention
and Control of Occupational Diseases and other relevant regulations, DUPT has Standardized management of Develop the Operating Procedures for Occupational Health of Key Posts,
Management Standard-
established dedicated systems, including the Occupational Disease Prevention and operational behaviors and install warning signs for occupational disease hazards, and implement
ization Measures
working environment fixed on-site placement and cleaning management systems.
Control Management System and the Management Measures for the Warning and
Notification of Occupational Disease Hazards, to continuously enhance occupa- Distribute PPE (e.g., protective clothing, goggles, gas masks, earplugs,
Personal Protective Provision and supervision the
tional health management. The HSE Management Department coordinates the safety helmets) according to post-specific risks, and supervise proper
Equipment (PPE) use of PPE
identification, risk assessment, and prevention and control of occupational disease wearing and usage.
hazards in the workplace, and organizes standardized training and awareness
Conduct occupational health check-ups before employment, during
programs to ensure full-staff occupational health protection. As of the end of the Occupational Health Dynamic monitoring of
employment, and upon departure; establish and maintain individual
Reporting Period, the Company has passed ISO 45001 Occupational Health and Monitoring employees' health status
occupational health files.
Safety Management System Certification.
Implement post adjustment, medical observation, diagnosis, and
Response mechanism for treatment measures according to law for employees with occupational
Health Follow-up
abnormal health conditions contraindications or suspected occupational diseases, safeguarding
employees' health rights and interests.
Occupational Health and Safety
Management System Certification Case Employer Work Injury Prevention Training
Key Performance
In November 2025, the Company held a two-day occupational injury prevention training for workers exposed to hazards
Working Hours Lost due to Work-related Injury: Investment in Work-Related Injury Insurance:
in key positions. After the training, an occupational injury prevention examination for employers was held to promote
occupational health risks.
Coverage Rate of Work-Related Injury Insurance: Investment in Work Safety Liability Insurance:
Coverage Rate of Work Safety Liability Insurance: 100%
Occupational Hazard Protection Measures
DUPT systematically addresses various occupational hazards throughout the production process. Following systems such
as the Management Measures for the Monitoring and Evaluation of Occupational Disease Hazards, the Management Case Detection of Occupational Hazard Factors
Measures for the Maintenance and Repair of Occupational Disease Protection Facilities, the Management Measures for the
Monitoring and Filing of Workers' Occupational Health, and the Operating Procedures for Occupational Health of Key Posts, In July 2025, the Company engaged a professional third-party institution to conduct annual
the Company has built a multi-level occupational health protection framework covering engineering controls, management occupational health monitoring. This included assessing all production workshops and support
protocols, and personal protection. facilities. On-site sampling and lab analysis were carried out to measure various physical and
chemical hazards such as dust, noise, acid-base levels, and organic solvents. This ensured the
Key Performance results were accurate and objective, providing a solid scientific foundation for the Company's
occupational health protection efforts.
Number of New Occupational Diseases: 0Case Coverage Rate of Occupational Health Checkup: 100%
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Dezhou United Petroleum Technology Corp 2025 Environmental, Social, and Governance (ESG) Report
Fostering Shared Growth through
Employee Development and
Contributing Warmth to
Society through Talent
Engagement
DUPT is committed to fostering a diverse and inclusive work-
place. The Company safeguards employees' rights and interests,
continuously improves career development opportunities, and
enhances its compensation and benefits system. Through em-
ployee care initiatives and open, transparent communication
channels, DUPT actively promotes employee well-being and
engagement, encouraging both employees and the Company
to grow and succeed together.
Responded UN Sustainable Development Goals (SDGs):
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Protection of Employees' Rights and
Case Two-Wheel Drive to Strengthen the Talent Foundation
Interests
Targeted Talent Recruitment
DUPT has established the Recruitment Management System, adhering to Key Performance
the principle of diverse hiring practices. The Company actively broadens
Campus Presentation Sessions Campus Recruitment Site
its talent acquisition channels, including social recruitment and campus
recruitment. We continually strengthen university-enterprise partnerships
New Employees:92 Persons
by co-developing internship programs and creating talent development
platforms, which enhance both talent pipeline and training mechanisms. Campus Recruitment: 27 new employees
Additionally, the Company introduces specialized recruitment channels
New Employees from Social Recruitment:
Talent Structure
targeting specific groups and organizes unique brand events, such as
Talent Experience Day, to boost its employer brand visibility. These efforts
foster a mutual understanding and precise alignment between the
Company and prospective talents. By diversifying its recruitment and DUPT continuously optimizes its employee structure by building a scientific talent echelon, opening clear development
training initiatives, DUPT builds a sustainable talent supply and develop- pathways, and enhancing the salary and welfare system. These measures create a harmonious and stable employment en-
ment system to meet the Company's long-term growth needs. vironment and strengthen the Company's ability to attract and retain talent.
Social On-campus Special Special
recruiment recruitment Recruitment Recruitment Key Performance
Social talent recruitment is
conducted through online
Fresh graduates are re-
cruited through a diversi-
The Company provides
employment opportunities
Talent Experience Day events
are held to invite candidates
Total Number of Employees: 862 Persons 3 Persons Veteran Employees: 23 Persons
Employees with Disabilities:
Employees of Ethnic Minority: 22 Persons Total Employee Turnover Rate:11.83%
platforms, on-site recruit- fied campus recruitment for veterans, individuals to explore the corporate en-
ment events, and head- system that includes du- with disabilities, and other vironment and culture, en-
hunting services. al-selection meetings and groups, fulfilling its social hancing job alignment and
university-enterprise co- responsibility and promot- compatibility.
operation. ing employment equality.
Case Two-Wheel Drive to Strengthen the Talent Foundation
Employee Composition
The Company actively partners with universities such as Dezhou University to deepen the integration of industry and
education. This is achieved through initiatives like co-building internship bases, offering special lectures, and conducting 107 Person 17 Person
joint research. These efforts help introduce and train skilled professionals. Additionally, campus recruitment is further 8 Person 113 Person 35 Person
expanded through presentations and recruitment fairs, broadening the pool of young talent and strengthening the
Company's talent reserves. 55 Person
Person
Number of Number of
Number of Employees
Employees (by
Employees (by
Employee
by Gender Profession)
Level)
Female Male Senior Middle Other Manufacturing Sales Technology
Management Management Employees Finance Administration Management
Company Visit & Tour Special Symposium on University-Enterprise Cooperation
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Protecting Women's Rights and Interests
Person
DUPT strictly implements the Special Provisions on the Labor Protection of Female Employees, ensuring full compliance with
Number of statutory leave rights, including maternity leave, breastfeeding leave, and miscarriage leave. The Company also continually
Number of
Employees Employees improves its internal care and support mechanisms for female employees. In addition, DUPT regularly organizes themed
Employees
by Education by Ethnicity
by Age activities for International Women's Day, promoting gender equality in the workplace and fostering a corporate culture that
Background
is gender-friendly, mutually supportive, and inclusive.
Under 30 (exclusive)Years Old
Master's Degree and Above
Bachelor's Degree
Ethnic Minorities
Percentage of Female Employees: 12.41% Proportion of women in management: 17.46 %
Non-Ethnic Minorities
Associate Degree
Below Associate Degree
Number of Employees On Maternity Leave: 2 Persons Return-to-work Rate of Employees on Maternity Leave: 100 %
Case "Women's Day" Event
Employee Turnover
In March 2025, the Company hosted a themed activity for International
demonstrating respect and attention toward female employees.
Female Male
Employee Turnover Rate by Gender
Under 30 (exclusive)Years Old
Training and Development
Employee Turnover Rate by Age
Talent Cultivation
Protection of Rights and Interests Guided by strategic development and centered on employees' core growth needs, DUPT has established a comprehensive
training system supported by an internal trainer development mechanism and the extensive application of a digital learning
platform. The Company has built a full-coverage, multi-level, and three-dimensional training framework, forming a collab-
Labor Security orative and integrated training matrix that spans new employee onboarding, professional skill enhancement, and leadership
development. This system emphasizes practical capability building and compliance awareness training, promoting both
operational effectiveness and organizational knowledge retention, while supporting the continuous development of a
DUPT strictly complies with the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic structured talent pipeline.
of China, and other relevant laws and regulations. The Company adheres to the principle of fair employment, improves its
anti-discrimination system, and explicitly prohibits differential treatment based on gender, age, ethnicity, or other factors Key Performance
in recruitment and employment. The Company regularly conducts anti-discrimination training and assessments to
Training investment: Total Training Sessions: Total Training Attendance:
strengthen the awareness and standards of its recruitment team. We have established interview supervision and anonymous
feedback mechanisms and rigorously review recruitment information to ensure a fair and transparent process. DUPT strictly RMB 0.5374 million 225 Sessions 4,524 Person-times
prohibits illegal practices such as child labor and forced labor. Committed to fostering a respectful, equal, and inclusive Total Training Duration: Training Coverage Rate:
workplace, we resolutely prevent violence, defamation, and harassment. Through diversified initiatives, we continuously
build a workplace culture that is respectful, equitable, inclusive, and integrated. 292.65 hours 100%
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Case Special Training for Team Leader Capability Improvement growth opportunities for employees. The evaluation results are directly linked to salary incentives, personalized training
plans, and the development of a talent reserve. This creates a virtuous cycle where capability development and value return
In September 2025, the Company held a specialized training are continuously reinforced. By offering ongoing coaching and feedback, the Company supports employees in achieving
program aimed at improving team leader capabilities, focus- long-term career goals, fostering mutual growth for both individuals and the organization.
ing on three key role scenarios. The immersive theory + prac-
tice approach enabled participants to systematically develop Special Grade Technician
role awareness and collaboration skills, thereby laying the
SeniorTechnician
ground for enhanced team management efficiency and
stronger collaboration. Technician
Six-Level Skill Grade System
Senior Skilled Worker
Intermediate Skilled Worker
Junior Skilled Worker
Case Middle Manager Exchange Training
In November 2025, the Company organized a special training
session for middle managers. Using four typical cases as dis-
cussion starting points, the training encouraged group dis-
cussions, helping managers establish core principles, im-
prove employee empowerment, unify management thought, Production Sequence
Professional Sequence Technical Sequence
and enhance team building and operational efficiency. Marketing Sequence
Management Sequence
Management Non-Management
Case Training on Project Management Practice
Performance and Welfare
During the Reporting Period, the Company conducted a
Salary and Welfare
training on project management best practices. Focused on
critical areas such as project planning, execution control, and DUPT has established the Salary Management System, constructing a matrix-based salary framework centered on job
risk management, the training significantly improved the sequences, with job value and performance contribution as core considerations. The salary structure includes a post-per-
team's professional capabilities, promoted standardized formance salary system, a structural salary system, and a daily wage system. Performance-based pay is closely linked to
project management practices, and supported efficient both organizational and individual achievements and is particularly emphasized for key business areas and core positions,
business progression. achieving a balanced combination of internal fairness, effective incentives, and sustainable enterprise development.
In parallel, the Company provides a multi-level welfare and security system, combining statutory benefits with distinctive
company-specific offerings. Beyond full coverage of the five social insurances and one housing fund, employees receive
supplementary commercial insurance and comprehensive support, including meals, accommodation, health check-ups,
and participation in cultural and sports activities. During the Reporting Period, DUPT implemented an employee stock
ownership plan, closely aligning the interests of core talent with the Company's long-term growth and establishing a sus-
tainable long-term incentive mechanism.
Career Development The Company also strictly complies with national working hours and leave regulations, employing standard, comprehensive
calculation methods as well as flexible working arrangements. Employees' leave rights are fully protected, ensuring adequate
DUPT has established a dual-channel career development system, offering distinct paths for both management and rest. Additional subsidies are provided to employees on business trips and overseas assignments, while working conditions
non-management roles, supported by a robust production skill level evaluation mechanism. Through standardized qual- and the operational environment are continuously optimized to enhance employee well-being and strengthen organiza-
ification certification and comprehensive performance assessments, the Company provides clear promotion criteria and tional belonging.
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
onvened to deliberate on and vote for major matters affecting employees' vital interests, with follow-up mechanisms to
Performance Drive ensure decisions are effectively implemented. The Trade Union, serving as the permanent working body of the Employee
Congress, is responsible for daily organization and coordination. It safeguards employees' orderly participation in corporate
DUPT has established the Performance Management System. Using a combined quarterly and annual review cycle, the democratic decision-making, management, and supervision, while systematically promoting the harmonious and stable
company applies end-to-end performance management focused on KPIs, covering goal setting, ongoing coaching, per- development of labor relations.
formance evaluation, and feedback-based improvement. The evaluation process strictly follows the SMART principles, in-
corporates a forced distribution rating mechanism, and closely integrates assessment outcomes with compensation Key Performance
incentives and career development pathways. To ensure the fairness, impartiality, and transparency of performance eval-
uations, the Company has established diversified appeal channels. Employees who disagree with their assessment results Projects Reviewed and Approved at the Employee Congress: 2 Projects
may submit appeals through written applications, email, or in-person interviews within the specified timeframe. The Human
Resources Department, in coordination with relevant departments, verifies each case and provides timely feedback. Projects Reviewed and Approved by the Trade Union: 3 Projects Number of Trade Union Members: 828 Persons
Employee Relations Case Co-building Systems to Forge Employee Consensus
In 2025, the Company further strengthened democratic management, centering on the Employee Congress to effec-
Labor Relations tively implement employee participation. In March, a special seminar was held on the Performance Management System
(Revised Draft, March 2025). During the seminar, the Human Resources Department addressed employees' questions
on site, and employee representatives provided extensive feedback and suggestions. This collaborative process helped
Based on the Labor Relations Management System, DUPT has developed a standardized labor contract management advance the development of a fairer and more transparent performance evaluation system. In December, a dedicated
framework covering the entire employment lifecycle, including onboarding, employment, and resignation, thereby safe- review was conducted for the DUPT Employee Code of Conduct. Feedback from employee representatives was
guarding the legitimate rights and interests of both the Company and its employees. In terms of labor dispute management, integrated to refine specific provisions, strengthen overall compliance awareness among employees, and foster a
internal negotiation and communication are prioritized, with the Human Resources Department and the Trade Union in- stronger sense of cultural identity within the organization.
tervening in accordance with applicable laws and regulations to ensure fair and transparent procedures. Resignation
management strictly follows legal procedures, standardizing resignation applications, work handovers, salary settlements,
and related processes. Exit interviews and root-cause analyses are conducted to continuously optimize employee relations Employee Assistance
and maintain a harmonious and stable employment environment.
DUPT has established a standardized and institutionalized assistance mechanism to support employees facing difficulties.
Case Special Symposium on Employee Labor Relations Management Through detailed investigations, file management, and dynamic tracking, the Company ensures that assistance is targeted
and effective. During the Reporting Period, under the leadership of the Trade Union, the Company visited and expressed
In November 2025, the Company organized a special sym- consolation to employees in need. Targeted subsidies were granted according to individual circumstances to provide
posium on labor relations for the management, with a focus financial assistance. Additionally, timely care and support were provided to the families of employees facing major life ad-
on analyzing high-frequency risk areas such as contract versities, reflecting the Company's sincere humanistic care. The assistance process is open and transparent, effectively
management, salary structures, rewards, and disciplinary ac- resolving employees' difficulties and fostering a supportive atmosphere where employees feel valued and cared for by the
tions. The primary objective of this symposium was to en- Company, inspiring them to contribute to its development and success.
hance compliance with management regulations, proactively
address potential labor disputes at source, safeguard the le-
Key Performance
gitimate rights and interests of both the Company and its
employees, and foster a harmonious and stable work envi- Number of Employees Receiving Assistance: Amount of Assistance for Employees in Difficulty:
ronment. 27Persons RMB 44 thousand
Democratic Governance Employee Activities
DUPT places strong emphasis on employee care, organizing a variety of themed activities around key annual milestones.
DUPT has established the Employee Congress Management System, implementing democratic management through this
These include annual celebrations, holiday care initiatives, cultural and sports events, team-building exercises, and cross-unit
fundamental framework. Employee representatives are democratically elected, with a significant proportion drawn from
fellowship activities. Such immersive experiences strengthen team cohesion, deepen employees' sense of belonging, and
front-line employees and technicians to ensure broad representativeness. These representatives exercise functions and
cultivate a positive, healthy, collaborative, and progressive corporate culture. These initiatives not only promote work-life
powers—including deliberation, supervision, and election—in accordance with applicable laws. Regular meetings are c-
balance but also infuse vitality into the organization's sustainable development.
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Case "Across Mountains and Seas, Toward the Distant Horizon" Themed Annual Meeting Case Football Invitational Tournament
In January 2025, the Company held the themed annual meeting, attracting over 800 employees and family members. In November 2025, the Company's Trade Union hosted the
The event featured summaries, commendations, and lottery activities, effectively enhancing team cohesion and rein- DUPT Football Invitational Tournament, involving four units.
forcing corporate cultural identity. The event promoted inter-unit communication, deepened the
"Strive for Victory" culture, promoted employee health and
wellness, and celebrated a strong spirit of collaboration.
Case Diversified Team-Building Activities
During the Reporting Period, all departments regularly orga-
Case "Vitality · Passion · Toward the Future" Sports Event nized team-building activities including outdoor development
programs, group outings, and team dinners. These activities
In September 2025, the Company held the "Vitality · Passion · Toward the Future" sports event, featuring a variety of strengthened teamwork, improved communication, and con-
special competitions. The event enriched employees' cultural and sports life, ignited enthusiasm for physical activity, tinuously boosted organizational cohesion and employee sat-
improved staff fitness, showcased the Company's dynamic spirit, and strengthened collective teamwork. isfaction.
Practice of Social Welfare
DUPT actively fulfills its corporate social responsibility, serving as a bridge for coordinated development between enterprises
Case Teacher's Day Special Event and local communities through social welfare initiatives. The Company consistently invests in key areas, including people's
livelihood, ecological co-construction, cultural empowerment, and talent employment. By supporting the growth of local
In September 2025, to celebrate Teacher's Day, the Company public undertakings through sustained and structured public welfare practices, DUPT not only enhances social well-being
presented customized gift boxes and gratitude cards to over but also promotes the deep integration of corporate social value with local development. These efforts contribute to building
held to enhance the mentor training mechanism and support
the long-term development of the Company's talent pool. Key Performance
Charitable Donations for Public Welfare: About RMB 0.8 Million
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Case Ecological Co-construction – Landscaping Tree Donation Case Spring Bud Program – Talent Employment Empowerment
In April 2025, the Company actively participated in ecological construction by donating During the Reporting Period, the Company continued its
over 600 landscaping trees to the Natural Resources Bureau of Dezhou City for urban Spring Bud Program, focusing on talent employment support.
public green space development. This initiative supports the construction of livable The initiative created 92 local jobs, including the recruitment
rural areas through ecological empowerment, improves the regional living environment, of 21 college graduates and 3 veterans. By offering a stable
and highlights the Company's commitment to fulfilling its corporate ecological respon- career development platform and opportunities for skill en-
sibilities. hancement, the Company helps optimize the local talent pool
and solidifies the foundation for regional development.
Case Cultural Investment – Public Service Donation Case Industrial Collaboration – Industrial Chain Upgrade Empowerment
In November 2025, responding to local needs for cultural de- During the Reporting Period, in line with regional industrial development needs, the
velopment, the Company made a donation of RMB 500,000 Company focused on collaborating with local small and medium-sized enterprises
to the Dezhou City Library. The donation was specifically ear- (SMEs) in mechanical and accessory processing industries. Through establishing close
marked for the development of an electronic reading plat- cooperation, offering stable orders, and providing technical guidance, the Company's
form and the expansion of youth literature collections. This annual outsourcing cost surpassed RMB 50 million. This collaboration has played a vital
support enriches public reading resources, encourages the role in upgrading the local industrial chain and stimulating regional economic growth.
cultivation of reading habits, improves the local cultural ser-
vice system, and advances the development of a spiritually
civilized society through cultural empowerment.
Contribution to Rural Revitalization
Case Public Welfare – Normalized Blood Donation
The Company regularly organizes employees to participate
in voluntary blood donation drives. During the reporting
period, the total blood donation volume reached 8,900 ml.
DUPT has consistently supported the national rural revitalization strategy, regarding support for rural development as a
Over the past five years, 163 employees have participated in
core part of its corporate social responsibility. In alignment with its own growth trajectory, the Company actively aligns with
the program, collectively donating 59,600 ml of blood. This
national priorities. With a strong sense of responsibility and concrete actions, DUPT remains focused on the modernization
initiative not only bolsters local medical blood supplies and
of agriculture and rural areas. By exploring ways to integrate corporate values with key national strategies, the Company
supports clinical treatment but also strengthens team cohe-
contributes to the comprehensive progress of rural revitalization and the promotion of common prosperity.
sion, reflecting the Company's strong commitment to corpo-
rate social responsibility.
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Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Afterword to the Report Indicator Name Unit 2023 2024 2025
Number of On-Site Investor Surveys Received Person-times 1 18 20
Key Performance Form Replies to Investor Questions on Cninfo Platform Time 51 43 151
Reply Rate of Investor Questions on Cninfo Platform % 100 100 100
Overall Notes to Key Performance Indicators:
In the key performance form, "–" indicates that the indicator is not applicable, and "/" indicates that the relevant indicator Business Ethics
for the year was not disclosed or not statistically recorded. Participants of Training Sessions on Anti-Commercial
Bribery and Anti-Corruption for the Management Person / 14 14
Duration of Training on Anti-Commercial Bribery and
Hour / 8.50 25.50
Indicator Name Unit 2023 2024 2025 Anti-Corruption for the Management
Total Participants of Training Sessions on Anti-commercial
Person / 796 807
Governance Dimension Performance Bribery and Anti-Corruption
Total Duration of Anti-Bribery and Anti-Corruption Training Hour / 393.00 1,210.50
Governance
Number of Training Sessions on Anti-Monopoly and Fair
Time / / 1
General Meeting of Shareholders Convened Time 2 4 2 Competition
Duration of Training on Anti-Monopoly and Fair Competition Hour / / 0.50
Proposals Reviewed at the General Meeting of Shareholders Item 12 15 19
Meetings of the Board of Directors Convened Time 5 7 5 Environmental Dimension
Proposals Reviewed at the Meetings of the Board of Directors Item 28 39 52 GHG Emission
Meetings Held by the Strategy Committee under the Board of Direct GHG Emissions (Scope 1) tCO2e 1,685.33 1,553.29 1,526.20
Time 1 0 0
Directors
Meetings Held by the Remuneration and Appraisal
Time 2 2 1 Indirect GHG Emissions (Scope 2) tCO2e 8,582.99 9,625.13 9,379.71
Committee under the Board of Directors
Meetings Held by the Audit Committee under the Board of Time 5 6 5 Total GHG Emissions tCO2e 10,268.32 11,178.42 10,905.91
Directors
Meetings Held by the Nomination Committee under the tCO2e/RMB
Time 2 0 0 GHG Emissions Intensity 0.1811 0.1675 0.1512
Board of Directors 10,000 revenue
Information Disclosure GHG Emission Density tCO2e/Person 13.51 13.48 12.65
Number of Announcements Disclosed Copy 86 115 116 Environmental Indicators
Number of Periodic Reports and Summaries Disclosed Copy 6 6 6 Investment in Environmental Protection RMB 10,000 85.45 22.64 52.02
Number of Interim Announcements Disclosed Copy 80 109 110 Training on Environmental Protection Session 4 4 4
Number of Investor Relations Activity Records Disclosed Copy 2 5 7 Number of Participants in Training on Environmental Protection Person-times 95 102 102
Investor Relations Management Duration of Training on Environmental Protection Hour 760 816 816
Number of Investor Receptions Time 2 5 7 Pollutant Emissions
Number of On-Site Investor Surveys Received Time 1 4 5 Waste Gas Emission Ton 3.38 3.47 3.67
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Indicator Name Unit 2023 2024 2025 Indicator Name Unit 2023 2024 2025
Pollutant Emissions ——Validly Authorized Invention Patents Item 22 33 47
Tons/RMB
Waste Gas Emission Intensity 0.0060 0.0052 0.0051 ——Validly Authorized Utility Model Patents Item 62 61 62
Compliance Rate of Exhaust Gas Emissions % 100 100 100 ——Validly Authorized Design Patents Item 6 6 6
Wastewater Discharges Ton 56,834.00 46,243.00 56,639.00 Number of Valid Patents per RMB 1 Million of Operating Revenue Item 0.1587 0.1499 0.1595
Tons/RMB Cumulative Number of Software Copyrights as of the end of
Wastewater Discharge Intensity 100.23 69.31 78.54 Item 9 10 11
Compliance Rate of Wastewater Discharge % 100 100 100 Cumulative Number of Trademarks as of the end of the
Reporting Period Item 14 14 14
Volume of General Waste Generated Ton 2,000.00 2,100.00 2,150.00 Number of Software Copyrights per RMB 1 Million of Operating
Revenue Item 0.0159 0.0150 0.0153
Quantity of Hazardous Wastes Generated Ton 92.85 105.56 122.56 Product Quality
Waste Disposal Compliance Rate % 100 100 100
First Pass Yield % 99.95 99.99 99.96
Energy and Water Resources Sessions of Quality Training Session 28 26 30
Total Energy Consumption tce 2,934.48 3,090.19 3,018.71 Quality Training Duration Hour 528.00 613.00 425.85
tce/RMB 10,000
Energy Consumption Intensity 0.0518 0.0463 0.0419 Number of Participants in Quality Training Person-times 575 673 470
revenue
Renewable Energy Consumption tce - - 16.87
Customer Service
Total Water Consumption Ton 60,745 76,513 85,483
Customer Satisfaction % 93.48 94.97 96.73
Tons/RMB
Water Consumption Intensity 1.0713 1.1467 1.1854
Total Use of Packaging Materials
Investment in Information Security RMB 10,000 11.50 7.70 8.40
Total Use of Packaging Materials Ton 5,931.00 5,936.40 4,785.00 Number of Violations Incidents Related to Information Security
and Privacy Protection Time 0 0 0
Tons/RMB
Consumption Intensity of Packaging Materials 0.1046 0.0890 0.0664
Industry Value Dimension Duration of Training on Information Security and Privacy
Hour / 796 853
Protection
R&D and innovation Participants in Training on Information Security and Privacy
Person / 796 831
Protection
Investment in R&D RMB 10,000 1,798.00 2,091.80 2,807.75 Coverage Rate of Training on Information Security and Privacy % / 100 100
Protection
Number of R&D Personnel Person 117 136 153
Supply Chain Management
Percentage of R&D Personnel % 15.66 17.09 18.64
Procurement Training Sessions Session / / 2
Number of Valid Authorized Patents as of the End of the
Item 90 100 115 Procurement Training Participants Person / / 21
Reporting Period
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Indicator Name Unit 2023 2024 2025 Indicator Name Unit 2023 2024 2025
Human Resources Dimension Male Person 665 719 755
Employee Numbers
by Gender
Employee Occupational Health and Safety Female Person 95 110 107
Senior Management Personnel Person 8 8 8
Investment in Work Safety RMB 10,000 249.25 306.52 175.39
Employee Numbers Middle Management Personnel Person 43 43 55
Investment in Safety Training RMB 10,000 19.60 22.23 15.80 by Job Level
Grassroots employees Person 709 778 799
Total Training Duration Hour 12,000 12,000 12,000
Manufacturing Person 416 440 493
Average Duration of Safety Training Hour 15.79 14.48 13.92
Sales Person 56 62 67
Number of Safety Training Sessions Session 15 15 15 Number of
Employees by Technology Person 93 112 113
Participants in Safety Training Person-times 12,000 12,000 12,000 Profession
Finance Person 12 16 17
Number of Security Emergency Drills Time 28 26 33
Administration Person 35 34 35
Safety Hazard Inspection and Rectification Rate % 100 99.46 99.29 Person
Management 148 165 137
Number of Occupational Safety Accidents Case 0 0 0 Under 30 (exclusive) Years Old Person 133 180 199
Total Number of Work-related Injuries Person 6 10 5 30 (inclusive) to 40 (exclusive) Years Old Person 341 350 359
Number of
Employees by Age
Work Hours Lost due to Work-related Injury Hour 1,200.00 3,312.00 560.00 40 (inclusive) to 50 (exclusive) Years Old Person 193 201 205
Work Injury Insurance Investment RMB 10,000 36.61 41.14 35.76 50 years old or above Person 93 98 99
Master's Degree and Above Person 15 39 51
Safety Production Liability Insurance Investment RMB 10,000 1.40 1.40 1.40
Number of Bachelor's Degree Person 179 211 228
Coverage Rate of Safety Production Liability Insurance % 100 100 100 Employees by
Education Level Associate Degree Person 165 186 193
Incidence Rate of Occupational Diseases % 0 0 0
Below Associate Degree Person 388 393 390
Injury Rate per Million Working Hours % 2.4 4 2
Number of Ethnic Minorities Person 15 19 22
Occupational Health Checkup Participants Person 342 342 342 Employees by
Ethnicity Non-Ethnic Minorities Person 745 810 840
Coverage Rate of Occupational Health Checkup % 100 100 100
Employee Turnover
Employment
Number of Employees Resigned Person 102 124 100
Total Number of Employees Person 760 829 862 % 14.10 15.16 11.83
Employee Turnover Rate
Percentage of Female Employees % 12.50 13.27 12.41 Employee Male % / 16.47 11.80
Turnover Rate by
Percentage of Employees of Minority Nationalities % 1.97 2.29 2.55 Gender Female % / 9.76 11.98
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Indicator Name Unit 2023 2024 2025 Indexes
Under 30 (exclusive) Years Old % / 37.70 26.91
Guidelines on Corporate Self-Regulatory Guideline N0. 17
Employee Global Reporting Initiative Social Responsibility for Companies Listed on
Turnover Reporting for Chinese Shenzhen Stock Exchange -
Standards（GRI Standards） Enterprises (CASS-CSR 6.0) Sustainability Report (Trial)
Rate by Age 40 (inclusive) to 50 (exclusive) Years Old % / 7.61 7.39
About This Report 2-2/2-3 P1.1/P1.2 Articles 4/6
Employees' Rights and Interests Message from the Chairman / P2.1 /
Number of Employees Receiving Assistance Person 22 27 27 About DUPT 2-1 P3.1/P3.2/P3.3 /
Amount of Assistance for employees in Difficulty RMB 10,000 3.10 5.40 4.40 Response to SDGs / / /
Employee Recruitment Philosophy of
Sustainable 2-22 G1.1.2/G1.1.6 Articles 11/12
Development
New employees in the Year Person 55 118 92
Governance Frame-
——Social Recruitment Person 45 84 65 work for Sustainable 2-14 G1.1.1 Articles 11/12
Sustainable Development
——On-campus Recruitment Person 10 34 27 Develop-
ment Identification of
Governance Sustainable / G1.1.8 Articles 11/18
Women's Rights and Interests Development Risk
Number of Female Employees in the Management Person 7 10 11 Deepening of
Sustainable
/ G1.1.3/G1.1.5 Article 12
Development
Proportion of Female Employees in the Management % 13.73 19.61 17.46 Practices
Number of Employees on Maternity Leave Person 3 6 2 Communications with
Stakeholders 2-16/2-29 G1.3.2 Articles 9/53
Return-to-work Rate for Employees on Maternity Leave % 100 100 100 Analysis of Material
Topics
Employee training Consolidation of 2-9/2-10/2-12/
/ /
Governance System 2-13/2-17/2-18
Training Investment RMB 10,000 42.67 66.06 53.74
Optimization of
Total Number of Training Sessions Session 138 172 225 Compensation 2-18/2-19/2-20 / /
Management
Solidifying
Total Number of Training Sessions Person-times 2,713 3,364 4,524 Foundation
Advancement of
Investor Relations 2-16/2-27 / /
through Management
Total Training Duration Hour 173.85 249.75 292.65 Sound
Governance Enhancement of
and Ensuring Returns to 201-1 / /
Training Coverage Rate % 100 100 100 Shareholders
Sustainability
through
Employee Development Compliant Improvement of Risk
Operations Management
Number of Internal Transfers or Internal Job Applications
Person 34 71 80 Anti-Commercial
by Employees Bribery and 205-1/205-2/205-3
G2.1.1/G2.1.2/G2.1.3/
Article 55
G2.1.4/G2.1.6/G2.1.7
Anti-Corruption
Percentage of Internal Transfers or Internal Job Applications
by Employees % 4.47 8.56 9.28 Anti-Unfair Competi-
tion Management
PAGE PAGE
Dezhou United Petroleum Technology Corp. 2025 Environmental, Social, and Governance (ESG) Report
Chapters and Sections
Global Reporting Initiative
Sustainability Reporting
Guidelines on Corporate
Social Responsibility
Self-Regulatory Guideline N0. 17
for Companies Listed on Feedback
Reporting for Chinese Shenzhen Stock Exchange -
Standards（GRI Standards） Enterprises (CASS-CSR 6.0) Sustainability Report (Trial)
Dear Readers,
E1.1.1/E1.1.2/E1.1.3/E1.1.4/E1.1.
Response to Climate 201-2/305-1/ Articles Thank you for taking time to read this report. We highly value your valuable feedback on our ESG reporting and sustain-
Advancing Change 305-2/305-4 21/22/23/24/25/26/27/28
Craftsman-
ship through Environmental 2-27/303-2/303-4/
E2.1.1/E2.1.2/E2.1.5/E2.1.6/E2.1.7 sustainability management. We sincerely invite you to complete the feedback form and submit it to us via the following
Environ- /E2.1.8/E2.2.1/E2.2.3/E2.2.5/E2.
Compliance 305-7/306-1/306-3/
Articles 29/30/31/33/37 methods. Thank you once again for your support of our ESG efforts!
mental Management 306-4/306-5
E2.4.4/E3.3.2/E3.3.4/E3.3.5
Protection
and
Email: limingxia@dupt.cn
Empowering Recycling of
Production
Resources
with Green
Ecological and
Intelligence Environmental 304-2/304-3 E2.3.2/E2.3.3 Article 32
Address: No. 1518 Jinghua South Avenue, Songguantun Subdistrict, Tianqu New District, Dezhou City, Shandong
Protection Province
S2.1.1/S2.1.2/S2.1.3/S2.1.4
Reshaping Enhancement of
/ /S2.1.5/S2.1.6/S2.1.7/S2.1.9/ Article 42
Industrial Innovation Engine
S2.1.10/S2.1.11/S2.1.13
Ecosystem 1、Which of the following stakeholder categories do you belong to:
through Improvement of
Resilient Product Quality
Supply
□Shareholders or Investors □Government or Regulator □Employees □Customers or Partners □Suppliers
Protection of
Chains and Customers' Rights and 417-1 S3.3.4/S3.3.6 Article 47
Delivering Interests □Communities or the Public □Others
Quality
Protection of Data
Excellence / S3.4.1/S3.4.2/S3.4.3/S3.4.4 Article 48
Privacy 2、Your overall assessment of this ESG report:
through
Continuous Con-building of
Innovations Responsible Supply 308-1/308-2/414-1/414-2 S3.1.1/S3.1.2/S3.1.3/S3.1.4 Article 45 □Excellent □Good □Average □Below Average □Poor
Chain
Fortification of 3、How do you rate this report:
Establishing Safety Defense Lines
Rigorous Coordination of Information Disclosure: □ Excellent □Good □Average □Below Average □Poor
Disciplines Safety Strategy
/ S4.2.1 Article 50
through
Safety Enhancement of Layout Design: □ Excellent □Good □Average □Below Average □Poor
Management Risk Control
and Implementation of Readability: □ Excellent □Good □Average □Below Average □Poor
Reinforcing Protection Measures 403-5/403-7 S4.2.4/S4.2.6 Article 50
Well-Being
through Establishment of 4、Which topics are of most concern to you? (You may select 3 items)
/ / /
Health Safety Goals
Protection Support for Occupa- 403-1/403-3/403-5/403-6/ Governance Topics: □Anti-commercial Bribery and Anti-corruption □Anti-unfair Competition □Due Diligence
S4.2.3/S4.2.4/S4.2.5 Article 50
tional Health 403-7/403-9/403-10
Social Topics: □Protection of Employees' Legitimate Rights and Interests □Employee Training and Development
Fostering
Shared 2-7/2-8/201-3/401-1/ S4.1.1/S4.1.3/S4.1.5/S4.1.6/ □Occupational Health and Safety □ Innovation-Driven Development □ Safety and Quality of Products and Services
Protection of
S4.1.8/S4.1.9/S4.1.11/
Growth Employees' Rights 401-2/401-3/405-1/ Articles 49/50
through and Interests
S4.1.12/S4.3.1/S4.3.2/S4.3.3/ □Data Security and Privacy Protection □Supply Chain Security □Social Contribution
Employee
Development Environmental Topics: □Environmental Compliance Management □Energy Utilization □Response to Climate Change
and
Contributing
Practice of Social
Welfare
Warmth to sity Protection
Society
through
Talent
Contribution to Rural
/ S1.1.1 Article 40 5、Is the information you are interested in reflected in this ESG report:
Revitalization
Engagement
□Yes □No（What additional information would you like to see _____________________）
Key Performance Form / A2 Article 6
Afterword to
Indexes / A3 Article 57 6、Do you have any other comments or suggestions regarding our ESG efforts and sustainable development manage-
the Report
ment?
Feedback 2-16 A6 Article 9
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